The New Retail

LESSON 3

the new retail

Introduction

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This lesson is devoted do explain how the buying experience is changing thanks to digital.

CONSUMERS’ EVOLUTION

CONSUMERS’ POWER

RETAILERS’ POWER

NEW TOOLS FOR RETAILS

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consumers’ evolution - from consumer to prosumer -

A definition

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Consumer Prosumer

The digital era is changing the society and its habits and even the consumer experience and the consumer itself are changing: we are now becoming prosumers.

Evolution and integration of

web and social network

who is a prosumer?

FROM THE OXFORD DICTIONARY: A prosumer is person who buys electronic goods that are of a standard between those aimed at consumers and professionals or a consumer who becomes involved with designing or customizing products for their own needs.

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PROFESSIONAL CONSUMER PROSUMER = +

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This means that consumers have become more and more skilled and knowledgeable, requiring higher standards for products and more

information from manufacturers.

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consumers’ power - data and behavioural -

what consumers say

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One of the main features of a prosumer is to always be connected to the internet thanks to mobile devices.

This lets him gather information about products, brands and services, share opinions about an experience or personal information to gain something interesting.

70% of consumers say it

is their responsibility to share feedback with companies

after a good or bad experience

90% of consumers say

their purchase decision are

influenced by online reviews

74% of consumers rely on social networks to guide purchase

decision

68% of consumers agree that shopping today

is less about brands or products

and more about what they are

feeling and needing

Source: Gyga: the connected consumer

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nowadays consumers are not afraid to say what they think about: they want to express their opinion on

everything and strongly believe in their right to do it.

the omnichannel retail Consumers want to connect with retailers on multiple channels and touchpoints simultaneously or even interchangeably.

They appreciate more retails that let them interact and complete transactions on their own terms.

As we have seen in 2013 “Lesson 8: Change in Purchase Behaviour”, the path to purchase is no longer linear because there are so many new touchpoints.

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view an item online compare the prices and purchase it using the phone

comment the experience on social network

return the item by dropping by the

store

AN EXAMPLE OF THE NEW PATH TO PURCHASE:

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retailers’ power - data and behavioural -

a data exchange

This users’ tendency to share personal information and experiences, makes easier for brands to understand their consumers, what they what and what their behaviours are.

At the same time,because of the many touchpoints, it may be a dispersive process.

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IT’S ALL ABOUT TRUST:

77%

of online shoppers would trust businesses more if they explained how they use their personal information

29%

of US consumers abandoned logging in or buying on a website because they are worried about their information being compromised

73%

of consumers say they prefer to do business with retailers who use personal information to make their shopping experience more relevant

Source: Gyga: the connected consumer

so, how will the future be?

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The technology trends that will impact the retail industry most significantly in the near future are six.

Big Data / Analytics

Customer Experience

Mobile & Social

Next-Gen Technology Omnichannel Personalization

RETAIL INDUSTRY

Source: Retail touchpoints - 2014 technology preview

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“A great digital experience is no longer a nice-to-have, it’s a make-or-break point for your business as we more

fully enter the digital age.”

forrester research

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new tools for retails - consumer engagement place

and best practice -

the web asks, retailers answer

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So, we understand that retail space is not what it used to be and it is developing new ways to interface with customers.

There are six “places” where retailers can engage with consumers.

at payment

in the store

in front of the product

at the shop window

in the vicinity

customer service

Source: Social Media today - How to Use Digital in Retail

in the vicinity

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The contact area of retailers expands being able to identify nearby consumers thanks to geolocation and social coordinates: this is proximity marketing.

MAIN TOOLS: •  gps •  geolocation •  personalized signal •  wireless internet connection •  targeted sms


© garryknight

chargeitspot

ChargeItSpot unveiled cellphone charging stations in 20 Urban Outfitters stores.

Retailers pay a monthly fee for the ChargeItSpot stations, which are free for shoppers to use.

Via ChargeItSpot’s free mobile app, customers can receive an alert when their cellphone is running out of battery, and locate their nearest station.

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Source: Trendwatching

mini cooper

Roadside billboards to serve tailored messages just to Mini owners as they drive by, as part of 'Not Normal' campaign.

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https://www.youtube.com/watch?v=e5bEB0tmMQI

at the shop window

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Even windows can be more interactive, sometimes by becoming interactive screens.

MAIN TOOLS: •  rich media (QR code) •  interactive window display •  social shopping •  personalized signage •  geofencing •  facial recognition


© Lars Plougmann

adidas Part of storefront window is a fully functioning virtual store with life-size products.

By touching hotspots on the window the shopper can browse life sized products, make the mannequin show product details, interact with the product and make playful actions and movements.

The customer can move products to their personal shopping bag on mobile phone by tapping an NFC tag or zapping a QR code.

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https://www.youtube.com/watch?v=MYBURgFgP7w

in the store

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In store interactivity can be used to create a specific ambiance or stimulate curiosity.

MAIN TOOLS: •  internet access •  personalized light and sound ambiance •  facial recognition •  interactive dressing room •  interactive mirrors •  crowdsourced hotspots •  personalized feed •  apps (games, in-store maps) •  mannequins hologram


© Mark Sebastian

wiman wiMAN, by installing a wi-fi router, makes a free connection available for all users who get in contact, indoors or outdoors, with the point of sale.

The access is via a customizable landing page through social login with Facebook or G+.

This way retailers can get users’ likes immediately at the registration and gaining important insights on their behavior.

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shelfbucks Shelfbucks began a pilot of its mobile shopping services at the Health Mart drugstore in Austin, Texas.

The brand’s iBeacon-based technology uses Bluetooth Low Energy to send messages to customers when they enter a store.

Sales clerks can also view details of shoppers, including their photo and how long they have been customers.

Shoppers can view product information, personalized deals and reviews by placing their smartphone near a Shelfbucks device, while retailers can access detailed analytics.

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in front of the product

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Digital tools can be used to provide a more entertaining or educational trial and information overlapping.

MAIN TOOLS: •  augmented reality •  dynamic signage •  social connection •  3D printing •  interactive fixtures


© laverrue

•  rating & reviews •  real time data •  mobile check out •  rich media panel •  show rooming

topshop

The integration of digital elements, like augmented reality inside the shop, creates an engaging shopping experience in Topshop.

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https://www.youtube.com/watch?v=L_cYKFdP1_0

Payment

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The payment experience in store has evolved, integrating digital native tools.

MAIN TOOLS: •  e-commerce •  iTunes •  Square •  Paypal •  NFC •  Google glass •  virtual currency

Source: Social Media today - How to Use Digital in Retail © stevendepolo

square

Square is an electronic payments service which enables users to accept credit card payments by using a card-reading portable device connected to their iPhone, iPad or Android device.

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© Shardayyy

customer service

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The in store experience does not end when the consumer leaves the shop. It continues with alle the digital channels that allow the brands to offer a complete service.

MAIN TOOLS: •  google glass chat •  web chat •  forum •  social media •  personalized sms •  Q&A apps


© ZERGE_VIOLATOR

boots

February 2014 saw personal care retailer Boots host a 90-minute beauty program on its Facebook page.

The Feel Like New Live event included style & beauty tips and tutorials. It was live-streamed from one of the brand’s UK flagship stores.

During the interactive event, viewers could post questions to the Boots Facebook page, which were answered during a live discussion.

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The New Retail