Why Remarkable

Experiences Matter

in Retail

A Table19 thinkpiece

June 2015

Contents

• Our observations so far in 2015

• Why does it matter?

• How to deliver remarkable customer experiences

• Brands we think that are doing it well

OBSERVATIONS

SO FAR IN 2015

Internet use is growing faster than world population

The average UK adult now spends more time using media or

communications (8 hours 41 minutes) than they do sleeping

(8 hours 21 minutes).

Ofcom 2014

Technology is delivering personalised services

Xxxxxxxxxxxxx

And bringing content to life

Xxxxxxxxxxxxx

And make processes easier or

more streamlined

Delivery is more tech-powered Home delivery has become

tech powered

Beacons are gaining traction

Consumers are getting used to the ubiquity of

Click & Collect

Transport for London processed 10,000

orders at its click-and-collect stations within

first 10 months of offering the service

Amazon Prime customers generate twice as much

income as non-Prime and are eight times more profitable.

In the face of constricting margins, this model allows

Amazon to monetise its phenomenal growth.

Faster delivery is worth paying for

Xxxxxxxxxxxxx Why does it matter?

REMARKABLE

EXPERIENCES

MATTER IN

RETAIL

It matters for organisations

Customer-centric companies gained 43% in

their performance metrics in 2014 compared

to a 33.9% decrease for companies who have

neglected customer experience. Forrester’s Customer Index

Searches for the phrase ”customer experience jobs”

increased 40% from July 2013 to July 2014. Google Trends

Gartner has predicted that by 2017, 89% of

marketing leaders expect customer

experience to be their primary basis for

competitive differentiation

Customer experience is seen as the standout

imperative for 2015 and beyond, with 22%

saying it is the single most exciting opportunity

this year. Digital Trends Survey – Econsultancy

It matters to us

56% of consumers say they would be more inclined to use a

retailer if it offered a good personalised experience. O2 The Rise of Me-tail

40% of people will abandon a web page if it takes more than

three seconds to load. Econsultancy

42% of consumers expect a response on social media within

one hour, and 32% think it should be within 30 minutes. Edison

From a customers’ perspective, service should appear

seamless, and seem effortless, across channels. Business2Community

UNDERSTANDING

CUSTOMER NEEDS

The key to delivering remarkable experiences?

10 CUSTOMER

NEEDS

BRANDS

DELIVERING

REMARKABLE

CUSTOMER

EXPERIENCES

Sephora

Never giving your customers a

reason not to purchase

“It’s not just about selling more makeup, it’s

about selling the right makeup” - Bridget Dolan, VP of Innovation, Sephora

“We don’t like to think in silos. We think of the customer

experience and then decide on the best technology that

supports that experience”

- Johanna Marcus, Director of Digital Business Development, Sephora

The Sephora experience

One-on-one Color IQ

consultations and AR

experiences Expertise, product knowledge and

technology give customers a personalised

service like no other.

COLOR IQ / ecommerce Use your unique identification to find

products effortlessly in store and online

Loyalty programme / email Sign up for Beauty Insider for tier-based

rewards.

Mobile apps The Pocket Contour app

gives personalised

makeup advice. Sephora

to Go is the brand’s

mobile commerce and

loyalty app

WOW ME

HYPER-

PERSONALISATION

MAKE IT

SEAMLESS

EMPOWERMENT

80% of

transactions go

through the

Beauty Insider

programme

ADDED VALUE

Why Sephora’s approach works

• Sephora delivers a complete and connected experience, which the business

prioritises over using just one platform or execution.

• The driving force behind their actions/decisions is based on existing consumer

behaviour – it’s more important to satisfy this behaviour, rather than forcing new

habits.

• Sephora sticks to its ABCs - ‘Always Be Closing’ (the loop) – the experience should

give people no excuse not to purchase.

• Sephora drives loyalty through the creation of value-add services such as its

Beauty Insider loyalty programme and various mobile apps.

Starbucks

Rewarding and recognising

customers

The Starbucks experience

Gamification makes the

loyalty programme more

engaging Stars, alerts and levels enrich the

experience

Email drives in

store footfall Triggered comms and

exclusive offers keep

customers engaged

Mobile-driven

experience gives you

more control Customers can pay quickly with

the tap of their phone, review

their account balance and their

rewards easily

Turning the feedback

model on its head Inviting customers to submit ideas

to improve Starbucks changes the

traditional feedback model

Mobile app

generates 6m

transactions

and 15% sales

in the US

LIFE ON DEMAND

ADDED VALUE INTEGRITY

HYPER-

PERSONALISATION

Immersive

experiences Starbucks have also

created The Roastery –

a place for the real

coffee enthusiast to

experience reserve

quality beans roasted on

site. WOW ME

Starbucks rewards loyalty

• The app is easy and seamless – pay with your phone, earn rewards that go straight

to your phone – no plastic loyalty cards to carry.

• Email and mobile work together – emails keep you informed of what’s going on and

tell you about upcoming events, exclusive treats, info on your rewards.

• Surprise and delight factor: Downloadable goodies (songs etc.) as well as free

drinks, food, refills add extra magic to the programme.

IKEA

Joining up the online and

offline brand experience

IKEA has placed research at the heart

of its expansion plans. The Life at

Home report was a survey conducted

with 8292 people in eight global cities

to give the company insight into the

morning habits of its customers – the

data helps inform future product

designs.

The IKEA experience

Enriching product categories with

content gives items more purpose Products are shown alongside lifestyle features,

e.g. an interactive guide to better sleep.

A customer-centric

approach to product

innovation allows IKEA to

shift vast quantities of

product across the world IKEA wants to better its

customers’ lives – through

research it develops new product

lines such as wireless charging

furniture.

PROVE YOUR

WORTH

WOW ME

Showrooms let customers experience

the product first hand …and get a sense of how it will fit in with their

lives

Apps empower shoppers to make

better purchasing decisions The AR app lets customers see what catalogue

products would look like in their own home

ADDED VALUE

ADDED VALUE

Quirky digital tools

show off the brand’s

irreverent and non-

serious side The IKEA Wedding Service

combines traditional

matrimonial celebrations

with video calling

I WANT TO FEEL

CONNECTED

Brand activations and partnerships deliver

unique offline experiences for customers –

IKEA events retain the brand’s quirky and

playful image.

• In an age where ecommerce dominates consumers’ shopping habits, footfall in IKEA’s stores

remains high. Branches are seen as shopping ‘destinations’ that appeal to all age

demographics.

• Added-value in store services such as car washes, express checkout, children’s play areas,

restaurants/cafeterias give customers a reason to extend their shopping time.

• The AR app for the 2014 catalogue let customers scan products from pages and virtually

place them in their homes.

Maintaining a strong brand on and offline

• Own research gives them closer connections to their customers and their needs, and allows

them to design their products in response to these needs (rather than the other way round)

Argos

Shifting perceptions with a

seamless experience

Argos is leading the digital retail revolution

with its new format stores

The Argos experience

Different store formats cater to

various customer needs Small format and concession stores

make browsing and purchasing through

Argos easier and more accessible.

MAKE IT

SEAMLESS

Services are designed

to keep customers’

moving through

stores effortlessly From browsing on tablets to

Fast Track collection, you

can be in out and out of an

Argos store in minutes.

Digital content and product displays Bringing customers closer to the products than

ever before – not just limiting experience to tablet

or catalogue browsing.

WOW ME

ADDED VALUE

IMMEDIACY

Emails deliver highly

personalised product

recommendations and

offers The Birthday Club suggests

gifts for your child and sends

you a 20% discount six

weeks in advance of their

birthday.

• Argos is leading the digital retail revolution with its new format stores that bring the

convenience of online shopping into the physical realm, and embracing Click and

Collect.

• Customers can use these stores to browse over 20,000 products via tablets, pre-

pay and collect items via a Fast Track service, view product displays and receive

advice and support from staff.

Why seamless means success

• They’re monitoring in-store and social data to inform the customer experience:

social data has already told them that men and women had different reactions to

the new stores (women liked the new customer service whereas men talked more

about the tech)

Using data to support a

remarkable experience

Disney

Disney World Florida is the most visited

vacation resort in the world, with an

attendance of 25 million annually

Why the MagicBand project?

"On the surface, we had super happy guests, but in

reality, we were making them go through so much

hassle at the park that down the road, they would

simply say, 'No más!' "

Disney World isn’t an amusement park: It’s

a metropolis. Sprawled across 25,000

acres of central Florida, it contains four

theme parks, nearly 140 attractions, 300

dining locations, and 36 resort hotels.

The Magic Band takes the hassle out of

navigating, carrying and queuing

The Magic Band removes the need

to carry cash, keys, passes and ID Use the Magic Band to store photos, make

purchases, access your hotel , fast pass rides

and restaurant reservations.

Organise every

aspect of your trip

in advance online Plan your trip down to the

last detail with the

MyDisney Experience

Disney characters and theme

park attendants know you by

name With the Magic Band, Disney characters

can greet you by name and restaurant

staff know you’re arriving.

HYPER-

PERSONALISATION

WOW ME

MAKE IT

SEAMLESS

EMPOWERMENT

Families can customise

their bands The band moves from being a

functional wearable to a prized

keepsake

The App Once you’re there you can

use the app to navigate

the parks, view your

itinerary, get alerts for

your reservations, [in

theory] change your fast

passes, get real-time info

on ride queues

• Not just a park ticket – the magic band and app allow you to control and tailor your

trip starting from as soon as you’ve booked it.

• It makes navigating the 45 miles of theme park more feasible and less of an

overwhelming experience.

• When you’re there, the tech works together to create a seamless experience across

all parks, rides, (most) hotels, shops and restaurants.

• In theory you don’t need to carry anything – the band acts as park ticket, room key,

reservation holder, camera and wallet in one.

• Allows Disney to not only control and monitor traffic flow within the park, but gives

them valuable data on guests’ preferences, purchases and movements.

Creating magic with data

eBay

Creating a more personal,

curated experience

eBay Collections makes it easy to

navigate a world full of things you may

like to buy depending on what’s trending

or what you’re after

“…merchandise isn't alone what people want

most, in fact it's the memory that matters more

than the material these days and we have to be

able to cultivate experiences that really resonate

with people.”

- Michael Moskowitz, Chief Curator and Editorial

Director at eBay

The eBay shopping experience

eBay’s business model has

evolved: 75%+ listings for ‘Buy it

now’ - effectively an additional

sales channel for retailers.

Data analytics based on

customers’ activity and tastes

drive communications - and a

personalised shopping

experience on the app

It’s getting the ‘expected’ right: simple

ordering, payment and delivery methods. WOW ME

LIFE ON

DEMAND

(HYPER)

PERSONALISATI

ON

IMMEDIACY MAKE IT

SEAMLESS

MAKE IT

SEAMLESS

Inspiring shoppers via

collaborated collections

Keeps people on the site

for longer and empowers

retailers

• Ebay is responding to the omnichannel challenge by evolving its business model from a pure

auction site to selling new goods at fixed price.

The ebay experience

• It’s getting the simple and expected right: good UX, choice in delivery and payment options.

• Ebay Collections are designed to inspire, connect consumers and retailers, and give shoppers

a more holistic shopping experience than just purchasing one-offs

Peak Performance

Virtual pop-ups bridging the

digital and physical divide

The Magic Hour experience

Capturing consumer moments on social

makes for attractive and highly

shareable content #catchMagicHour asks customers to take their best

photos just before sunrise or sunset to be in with a

chance of winning Peak Performance gear.

Time and location-precise pop-ups

turn experience into a treasure hunt Be in the right place at the right time to gain

access to virtual pop-up shops.

WOW ME

I WANT TO FEEL

CONNECTED

The “magic hour” is the period

just before sunrise and sunset.

Peak Performance challenged

its customers to find its virtual

pop-up stores with their mobiles

at these critical times.

All the products in these stores

were free – customers simply

needed to be in the right place

at the right time to claim them.

A competition to win €500-1000

worth of products asked

customers to capture their

magic hour moment and share it

on Instagram with

#catchMagicHour

• Caters to the “always-on” consumer and shows how m-commerce can be

stretched beyond traditional approaches to loyalty.

Why is it remarkable?

• Brand’s core audience is actually being challenged in a meaningful way –

the appeal of the campaign is that it resonates with what they’re already

passionate about.

• Mobile has been leveraged in a clever and simple way to make the core

thought come to life. Technology hasn’t been used for the sake of it.

Selfridges

Turning retail into theatre

Selfridges is as much an event space as it is a

store, hosting everything from pop-up cinemas

and restaurants to crazy golf.

Selfridges continues to be a hub of creative

events, brand campaigns and product experiences

Drawing attention on the street Selfridges’ highly creative window

displays are difficult to ignore

Delivering unique seasonal experiences

that keep shoppers engaged Lectures, film screenings, culinary lessons, make-up

classes and book signings are just some of the events

keeping Selfridges relevant and exciting – and

connected to the world around them

In store activations are as bold and inventive

as their standout branding Selfridges is known for its bold attitude, quirkiness and

expertise in all things luxury

WOW ME

I WANT TO FEEL

CONNECTED

Selfridges turning retail into theatre

• Selfridges today is more than a shop - it's a shopping experience that continues

to surprise, amaze and amuse its customers by delivering extraordinary

customer experiences.

• Selfridges remains a pioneer in innovation and creativity, and is one of the

reasons why it’s still considered to be the ‘best department store in the world’

Made.com

Making showrooming a

pleasurable experience

The Made.com showroom experience

Showrooms are designed to inspire

and ‘try before you buy’ The spacious and relaxing environment makes a

better browsing and ‘imagined living’ experience

Tablets are provided to customers

– to buy now or do it later Tablets encourage you to add products to a

wishlist, or do it seamlessly via scanning

product tags.

Receive your wishlist by email Triggered email keeps items front of mind and

easy to purchase even after you’ve left the store.

MAKE IT

SEAMLESS

WOW ME

IMMEDIACY

EMPOWERMENT ADDED VALUE

Made.com getting showrooming right

• The online and offline experience complement each other. Whilst the online site

has videos and back stories about the products, the in-store experience give you

the actual experience of sitting on a chair or sofa in person.

• Embracing showrooming is a smart and brave move for a furniture retailer. It

encourages and empowers people to feel comfortable browsing in-store and

buying later

THANK YOU