Using Digital in Retail
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The document discusses the importance of integrating digital strategies within the retail experience, highlighting challenges faced by retailers and the necessity for adapting to changing consumer behaviors. It emphasizes the growth of e-commerce and mobile technology while advocating for a balanced approach between online and in-store experiences. A 10-point action plan is provided to guide retailers in enhancing their customer engagement and overall retail strategy.
Using Digital in Retail
- 1. Digital in Retail: The Exeter Experience James Moffat, Organic Development
- 2. Page 2 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
- 3. Page 3 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
- 4. Page 4 Time we spend shopping…. 8.9 Billion hours per year in UK 182.5 Hours/person/ year 49 million 16 plus adults in UK Stats from the ONS
- 5. Page 5 The state of retail in the UK… (08 to 09) Source: ONS UK Retail employment Down 145,000 UK Retail Outlets Down 100,900
- 6. Page 6 Retail Sales Index Sept 2010 0.5% Growth year on year for September British Retail Consortium ‘The market scraped margin growth in 2009 and I see a low growth envoronment here to stay. The combination of a weak economic outlook and a changing consumer means the industry is at a key inflection point as it re-aligns itself to a new reality . What growth there will be will be absorbed by online. Like for like sales will thus dip in and out of negative territory on a monthly basis’ KPMG Retail Think Tank, Feb 2010 Low growth here to stay….
- 7. Page 7 Shoppers are tuning out. Worse, they are exhausted by their shopping experience when they should be energised. That’s what happens when you force shoppers to think about getting low prices when what they want it to feel good about what they are buying. Al Wittemen – MD Retail Strategy, Advantage Retail Shoppers are turning away from retail
- 8. Page 8 B2C Ecommerce Sales growth in Europe, 2006 to 2011, Billions, USD $ 132.90 $ 196.90 $ 255.70 $ 307.10 $ 357.40 $ 406.80 $
- 9. Page 9 Estimated growth in the next 5 years 10% Per Year Predicted US retail growth 2010 2.5% 11% Predicted E-Retail growth in 2010 E-Retail – the key to growth
- 10. Page 10 Good News: The bulk of retail shopping still takes place in store… but now is the time to act! Infogrpahic by milo.com
- 11. Page 11 Solution: Integrate digital into your retail experience Benefits of E-Commerce • Research and Learning • Better Choice • Time Saving / Convenience • Empowerment, Customer feedback Benefits of High Street • Immediacy of purchase • Tactile experience • In-store experience • Sales Assistance
- 12. Page 12 Solution: Integrate digital into your retail experience Benefits of E-Commerce • Research and Learning • Better Choice • Time Saving / Convenience • Empowerment, Customer feedback Benefits of High Street • Immediacy of purchase • Tactile experience • In-store experience • Sales Assistance
- 13. Page 13 Take Away: Integrate Digital Tactics Into your Retail Experience
- 14. Page 14 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
- 15. Page 15 Reach: Important channels Features of Mobile Smart mobile market exploding Rich media in your pocket Powerful software = Apps Geolocation technology Real time communication Still a tool for SMS, phone and MMS Further development of bluetooth style direct messaging The importance of mobile
- 16. Page 16 The importance of mobile Mobile is a fast emerging set of channels Reflects traditional channels but raises some issues Small screen Touch screen Use of SMS and MMS for CRM and servicing customers Further Development of bluetooth style direct messaging
- 17. Page 17 Reach: Important channels The importance of mobile Mobile is a fast emerging set of channels Reflects traditional channels but raises some issues Small screen Touch screen Use of SMS and MMS for CRM and servicing customers Further Development of bluetooth style direct messaging The importance of mobile
- 18. Take Away: Page 18 The Future of the internet is…. MOBILE
- 19. Page 19 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
- 21. Page 21
- 22. Page 22 1. Listen WHERE ONLINE AGE MOST INFLUENTIAL SENTIMENT
- 24. Page 24 Reputation PREDICTION… In the future you will not be able to sell product, run a business or provide a service if your reputation is poor and you do not listen to customers!
- 25. Page 25 engage
- 26. Reward customers for checkin... Page 26 1. Claim you venue…Claim you venue….
- 27. Page 27 How do you reward your customers? 1. Mayor Specials: • Unlocked only by the Mayor of your venue. ("Foursquare has deemed you the Mayor? Enjoy a free order of french fries!") 2. Check-in Specials: • Unlocked when a user checks in to your venue a certain number of times. ("Foursquare says you've been here 10 times? That's a free drink for you!") 3. Frequency-based Specials: • Are unlocked every X check-ins. ("Foursquare users get 20% off any entree every 5th check-in!") 4. Wildcard Specials: • Always unlocked, but your staff has to verify some extra conditions before awarding the Special. ("Show us your foursquare Swarm badge and get a free drink!”) How do you reward your customers?
- 28. Page 28 Statistics Interface • Most recent visitors • Most frequent visitors • The time of day people check in • Total number of unique visitors • Histogram of check-ins per day • Gender breakdown of customers • Portion of foursquare check-ins broadcast to Twitter and Facebook • Always adding more
- 29. Page 29
- 30. Page 30 Foursquare is not the only way to engage online…
- 31. Page 31 WARNING… This kind of media can be addictive. Social media can be time consuming. Limit your time to a maximum of two hours per week. Engage with people directly • Build you reputation • Build advocacy • Reward your best customers Listen • Understand who is talking, where and what about • People will tell other people what they think before they tell you • Make sure you know what people think of you Watch your Reputation Take Away:
- 32. Page 32 Digital in Retail: The Exeter Experience Retail: whats the deal? So what should you do about it? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
- 33. Page 33 Shoppers are tuning out. Worse, they are exhausted by their shopping experience when they should be energised. That’s what happens when you force shoppers to think about getting low prices when what they want it to feel good about what they are buying. Al Wittemen – MD Retail Strategy, Advantage Retail Shoppers are turning away from retail
- 34. Page 34 Estimated growth in the next 5 years 10% Per Year Predicted US retail growth 2010 2.5% 11% Predicted E-Retail growth in 2010 Integrate Digital into your retail experience
- 35. Page 35 Solution: Integrate digital into your retail experience Benefits of E-Commerce • Research and Learning • Better Choice • Time Saving / Convenience • Empowerment, Customer feedback Benefits of High Street • Immediacy of purchase • Tactile experience • In-store experience • Sales Assistance OKAY SO WE CAN DO THIS ONLINE, BUT HOW DO YOU DO THIS IN STORE?
- 36. Page 36 What is experiential shopping? Apple: • A place for knowledge and service • A 50/50 split between these • Come to shop, return to learn • Ave US earnings per sq ft per year? $4032 Saks 5th Avenue: $362 Source: Douglas Smith, Holy Tornado Ltd
- 37. Page 37 What is experiential shopping? the ultimate retail experience
- 38. Page 38 ‘Layering information, tools and resources over the real world we inhabit to make it easier to understand or to enrich our experience.’ EG Sat Nav, Google Maps, Layar What is Augmented reality?
- 39. Page 39 What does AR look like? It allows you to overlay information onto the real world
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- 41. Page 41 Bringing AR and Experiental marketing together • Finding your location • Google maps • Layar • Finding a way around a large store • Finding an In-stock product and ordering it • Argos App • Identifying where to buy a product you see • Amazon photo recognition • Assisted selling • Mobile assistants • Integrated video • Smart Mirrors • Smart checkout and payment • Trying out products not in stock • Relationship management • Recognising customers
- 42. Page 42 Digital in Retail: The Exeter Experience Retail: whats the deal? So what should you do about it? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
- 43. Page 43 A Strategy for Success: Your 10 point action plan ACTION THREE Work out who your customers are and where they are online Work out how they use technology at the moment and in the future ACTION ONE Start with your business goals: What it is you are trying to do Work out what it is you need to do in order to meet these goals Work out how you can use digital to improve your retail experience This goes for the instore experience as well as the out of store experience ACTION TWO
- 44. Page 44 A Strategy for Success: Your 10 point action plan ACTION SIX Start engaging directly with people online and through apps ACTION FOUR Start getting familiar with mobile apps Try out FourSquare Listen to what you customers are saying abut you Start to monitor and manage your reputation ACTION FIVE
- 45. Page 45 A Strategy for Success: Your 10 point action plan ACTION NINE Start to think about innovative ways of using technology to make the retail experience more fulfilling and enjoyable …Not to mention more profitable for you ACTION SEVEN Make sure you offer a genuine experience in your store Think about why people might come to you rather than another place? Think about how people might be looking for your shop or services and what you can do to make that easier for them ACTION EIGHT
- 46. Page 46 Thank you for listening Do You Have Any Questions? ACTION TEN Speak to an Expert, someone who can help you come up with an effective plan for your new retail strategy