in store digital - what's out there?
TRANSCRIPT
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C O N T E N T S• ABOUT ME• THE DIGITAL & MORTAR LANDSCAPE• THE USE CASES• SHOWCASING
• BROWSING
• LOCATION
• PAYING
• STAFF ENABLEMENT
• KEY TAKEAWAYS
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ABOUT ME• I run retail-innovation.com.
with 450 visitors per day.
• I’m REPL’s Digital Director. I joined in October.
• I’m famous for putting digital in store at M&S
• I’ve worked for /with a number of larger retailers.
• I’ve worked with the web since it all began.
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DIGITAL STORES INTERNATIONAL
DIGITAL STORES UK
CATEGORY SPECIFIC INNOVATIONS
M&S.COM REPLATFORM (UK)
MY WORK AT MARKS & SPENCER
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ABOUT REPL DIGITAL• We’re a specialist in bringing digital into
store
• UK based; 160 employees
• We have a mobile platform which enables store staff to be more productive.
• We’ve been innovating in the mobile in store space since 2011 and work with over 30 retailers worldwide including: -
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THE WAY PEOPLE BUY IS RAPDILY CHANGING
• There is an adjustment taking place in the market between bricks & digital.
• UK store footfall has been declining.
• Digital influence on purchase continuing to rise and mobile/tablet main drivers. Usage continuing steep trajectory.
• Delivery costs rising and online pure-play retailers going out of business.
Source: BI Intelligence
Device usage growth
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CUSTOMER SERVICE IS KEY
• Customer expects online and offline assistants to be knowledgeable.
• There are significant up-sell & cross-sell opportunities.
• Store staff should use mobile digital tools to keep them on the pulse.
• Customers use devices for self-service in store; comparing products/prices, getting advice from friends & taking photos.
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Attractingthe customer
into store
Create great customer
experience
Convert the opportunity
Staff enablement & productivity
Reduce staff turnover
FOOTFALL
Increase Net Promoter Score
Increase customer satisfaction Improve product availability
Increase staff on shop floor
Increase conversion
Increase time spent in store
Increase averagebasket size
Improve staff productivity
DRIVING THESE KPI’S FIT INTO 4 INITIATIVES
Increase visitorsinto store
HOW SHOULD YOU PRIORITISE YOUR INVESTMENT?
AVERAGE SPEND COSTS PROFIT
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SHOWCASING
CONNECTED STORE
VIRTUAL FOOTWEAR WALL
DIGITAL CAR SHOWROOM
VIRTUAL CLOTHING RAIL
• In the following video, Audi demonstrate how the digital showroom works.
USE CASE
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/audi-city-in-londons-picadilly-circus/
• In the following video, Rebecca Minkoff demonstrate how the digital boutique works.
USE CASE
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/digital-changing-room-and-interactive-mirrors-at-rebbecca-minkoff/
SHOWCASING – SUMMARY
Must be solving a genuine problem: Adidas – showcase 4,000 shoes in
small store Audi – showcase cars in city space M&S – showcase clothes in a food
store Rebecca Minkoff - ??
Expensive to build because nearly always bespoke. Projects shown would have cost
around £1m High ongoing content costs
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GETTING PRODUCT INFORMATION WITH KIOSK
Customers using self service devices in store to identify availability of a colour/size not in store or explore wider catalogue
DIGITAL CATALOGUE
BROWSE & ORDER HUBS
BROWSE & ORDER BANKS
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GETTING PRODUCT INFORMATION WITH MOBILE
Customers using mobile to identify product and find out more, like, add to wish list or order.
BEACONS ON PRODUCTS
IMAGE RECOGNITION
NFC ON SHELF EDGE
• In the following video, Hointer display one of each product and you order your size to the changing room.
USE CASE
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/us-retailer-hointer-uses-robots-to-deliver-your-selections-to-the-fitting-room/
• In the following video, Argos introduce their new digital store concept.
USE CASE
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/new-argos-digital-concept-stores/
BROWSING – SUMMARY
Interactions must be quick & seamless. Shopper wants immediacy when in store.
Consider the store staff as users.
Test the target users appetite first with a minimum viable product.
22PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/audi-city-in-londons-picadilly-circus/
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WAY-FINDING
MOBILE OUTDOORS
IN-STORE KIOSK
SHOPPING MALL KIOSK
IN-STORE WITH MOBILE
MOBILE NAVIGATION IN-STORE
• Technology pilots appeared in 2011 at Macys. Very few other examples.
• Cost prohibitive – requires indoor receptor and non food retailer not likely to hold digital planograms.
• However, new WI-FI points soon to be replacing end-of-life kit. These can triangulate customer location. Additionally as more retailers dispatch from store, digital planograms may start to be created.
LOCATION BASED TARGETING
• Who knows where you are?– Google location history has been
charting where you are going.– Handset Manufacturers, mobile
operators can also track you– Apps using geo-location services
• Use Case– Customers can search for
product/service nearby. – Real-time bidding retailers
promote products/services if nearby.
• In the following video, Meat Pack disrupt your shopping journey with a live offer
Use Case
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/mobile-app-that-hijacks-you-from-a-rival-store/
LOCATION – SUMMARY
Still too many barriers to do in-store navigation.
Consider what you could do with footfall data.
Be ready to work with Google.
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PAY ANYWHERE
• Through use of mobile, customers can be given more convenient places to order & pay.
• Hospitality has had many successful trials whilst retailers still experiment.
PAY IN CAR SHOP & GO
PAY AT TABLE PAY IN STADIUM
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PAYING WITH A DEVICE
Mobile is enabling customers to pay with their devices at the Point-of-Sale
PAY BY WATCH PAY BY PHONE
CHECK-IN & PAY
THE OMNICHANNEL THE POINT-OF-SALE
More than 70% of specialty stores saying their next POS will be a unified commerce platform
Traditional siloed systems are not meeting the needs of the consumer.
Retailers need to have a ‘single version of the truth’
PAYING– SUMMARY
Mobile payment will become mainstream.
Use to reduce customer wait time.
Hospitality leading the way.
New generation POS will give the retailer a single version of the truth.
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Assisted Selling in store
• Drives significant incremental sales often rescuing sales that would have been lost.
• Allows colleagues equipped with product information on device to take orders / answer enquiries on shop floor.
• Opportunities to cross-sell /up-sell through existing online relevance tools
• Most large retailers are trialing or about to. Macys and M&S were early adopters.
The following video demonstrates how assisted selling could work with colleagues wearing wearable technology.
USE CASE
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/sales-assistant-using-google-glass/
Workforce Management in store
Mobile is also being used to manage and report status on operational tasks like managing staff rotas & carrying out head-office instructions etc...
Social Collaboration / Communication
• Mobile makes colleagues more productive on shop floor.
• Tools can open dialogue between colleague in store, peers in other stores and head office.
• Opens feedback loop that • Successful trials in M&S,
Arcadia
The following video demonstrates how Tesco use social platforms to connect their staff.
USE CASE
PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT https://youtu.be/cdUNlQHgoak
STAFF ENABLEMENT – SUMMARY
Store social networks are proving hugely successful.
Assisted selling drives incremental sales and enables store staff to up-sell / cross-sell.
Mobile tools get staff on the shop floor.
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KEY TAKEAWAYS
• Most retailers now have a digital presence in store.
• Few mature technology platforms out there and a lot of expensive bespoke applications.
• If investing, hypothesize which KPIs you are trying to drive and measure KPIs you are planning to effect.