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Rise to your challenges in a digital world.
Future-Proof Your Business
Ruth Harrison: 30 year career in the retail industry Specialities: Sales/ Marketing/ Operations/ Strategy/ Investment Territories: UK/ Europe/ Middle East/ working knowledge USA & Asia Experience: DVP & GM/ MD/ CEO/ CMO. Companies: John Lewis/ HoF/ Estee Lauder Co/ Coach/ Selfridges
ABOUT THE PRESENTER
Premium Apparel Customer Experience Cycle Social Mediated Selling Grocery Big Data
PRESENTATION IN 5 PARTS
Premium Apparel all smoke and augmented mirrors Customer Experience Cycle not the complete circle Social Mediated Selling AKA ‘what the hell do we do now’? Grocery who stole my market share? Big Data the elephant in the room
PRESENTATION IN 5 PARTS
We examine the blue sky thinking that led to one of the biggest retail success stories of the last 5 years and what innovative trends in technology were identified and how these were executed that led to a doubling in sales revenues and trebling of net income between 2010 – 2014 at Burberry.
PREMIUM APPAREL
Technology enhancing the customer experience
and adding value to the bottom line
Retail of the future seemed an unobtainable dream? Interactive advertising
was the fiction of movie makers.
Live catwalk shows filmed and beamed instantly to store
Bringing the catwalk directly into stores and simultaneously
on customers mobile devices
Making the runway a reality
Large screens magically turn into mirrors
A digital app engages with customers by recognising
pre-programmed information
Within beauty areas, multi- functional screens show moving
content or changing imagery
Digitally-enhanced interactive windows welcome shoppers with style tips based on their
current outfit
3M+ Facebook fans are selected and invited to fashion shows
and special events in store
Constant customer engagement via social channels
RFID continues to be a trend, used to track
and release information
Your customised Trench – ultimate personalisation
CASE STUDY CONCLUSION
22
Sales increase steadily over 5 year period
Net income shows slight dip 2012/2013 due to rising production costs softening sales in Asia
Net income soars 27% in 2014 after investment in Burberry World LIVE
Not since the Industrial Revolution have
we seen such dramatic change in the social landscape
We examine the steps to a seamless customer journey, what should and could retailer be offering online and in retail stores. How to identify the problems and the how to leverage existing capabilities with enhanced technologies.
CUSTOMER JOURNEY CYCLE
Premium marketing directs customer to company website to make a purchase -
becomes part of World of LOVELY BRAND via registration mechanism through social media platform such as Instagram #MYLB
Data mining social media data ‘likes’
and preferences enabled the brand to connect with customers at point of
emotional engagement.
RIGHT PRODUCT ASSORTMENT AND PREMIUM PRESENTATION
At this point the customer is disappointed that the chosen item is out of stock - there is a risk the customer will become disengaged and has to hunt elsewhere for the item. Customers have expectations of flexible fulfilment – the traditional model does not cater to this need or experience. Adding option to Find Now offers choice and continues to satisfy demand and maintain engagement – enhancing the customer experience.
SURFACING SHARED INVENTORY
FLEXIBLE FULFILMENT OPTIONS
Adding geolocation enables items to be offered in nearest location. Adding purchase options: Buy and deliver anywhere Buy and collect at store Try before you buy
Adding virtual wardrobe increases customer engagement and builds advocacy
CONNECTING WITH CUSTOMERS AND BUILDING LIFETIME RELATIONSHIPS
ONE-STORE = RIGHT PRODUCT ASSORTMENT AND PREMIUM PRESENTATION
Adapting assisted selling using same website functionality and flexible fulfilment supports a One-Store operation and offers customers options to purchase items not available in store or are not ranged in their local retail outlet.
LOVELY BRAND
OFFERING CHOICE - FLEXIBLE FULFILMENT MODEL
This single view of inventory allows the customer to shop between bricks and mortar stores and online seamlessly: creating a One-Store customer experience, the option to purchase in store or online regardless of where the browsing originated is completely convenient for the customer and is becoming an expected norm.
LOVELY BRAND
By implementing shared inventory (single view) the business becomes more efficient and the customer experience is enhanced unlocking capital and improving B&M processes. Right Product Right Place Right Price
LOVELY BRAND
SURFACING SHARED INVENTORY
BUILDING LIFETIME RELATIONSHIPS
Creating wardrobes of purchased items is an additional service, adds to CRM and helps facilitate loyalty. E.G: client A: single man registers to World of Lovely Brand by including functionality to add other family members such as partner, kids and home options, this anticipates and directs customer to curate a record of purchases (lifestyle) and builds loyalty.
LOVELY BRAND
ASSISTED SELLING MODEL
Data mining social media data ‘likes’ and preferences enabled the brand to connect with customers at point of emotional engagement. E.G partner browsing for new baby clothes, brand sends targeted marketing and the cycle repeats
LOVELY BRAND
CUSTOMER EXPERIENCE VIA TRADITIONAL SILO MODEL
Marketing & PR used to increase
brand profile and drive traffic to sales channel
Owned CRM database and
inventory management
systems and Mgt
Owned CRM database and
duplicated inventory stock holding and Mgt
Additional sales channel, often with 3rd inventory stock holding and Mgt
MARKETING RETAIL STORES ONLINE OUTLET
CUSTOMER EXPERIENCE SINGLE VIEW MANAGEMENT FRAMEWORK
MARKETING Print/ Social Marketing
Facebook & Twitter build relationships and aspiration
Instagram #MYLB directs ‘likes’ to sales channels
Instant purchase option Engagement apps
INVENTORY MGT Reduced stock holding Single view of inventory
B&M support: Right product/place/price
Reduced costs (markdown) Improved margin
Single View Mgt
Marketing Sales
Data Mgt Inventory Mgt
SALES Cross functional teams
Improved customer service Buy deliver anywhere Buy collect in-store Try before you buy
Added service options/apps In-store journey
DATA MGT Single view of CRM
Instant trend analysis Real-time analytics Improved BI and decision making
Reaffirm your customer profiles and preferences Realign your model to fit and reflect these attributes
SOCIAL MEDIATED SELLING
PROFILE: WAR BABIES
37
• Digitally Unaware
• Health Issues
• Isolation
• Politically exiled
• Security Fears
• Regional Citizens
• Entrusting
• Digitally Illiterate
• Financially Prudent
• Isolated/ Decreasing Social Circles
• Politically Disillusioned
• Micro Economy
• Retired/ Reliant/ Proud
• Home Birds/ Local Citizens
Barclays Bank used Digital Eagles campaign as perfect way to bring tech capabilities and knowledge
and service to their older customers.
PROFILE: BABY BOOMERS
39
• Digitally Aware
• Health Focused
• Retirement/Financial Security
• Politically Motivated
• Security Concerns
• National Citizens
• Trusting
• Protective
• Providers
• Loyal
• Networked
• Macro Economy
• Corporate Employed
• Travelled
Aldi using humour and price sensitivity to connect with customers
on every day item purchases.
PROFILE: GEN X
41
• Digitally Capable
• Financial Anxious
• Politically Inactive
• Security Concerns
• Geo-Regional Citizens
• Serial Employees
• Cynical & Cautious
• Providers
• Resourceful
• Networked
• Politically Disconnected
• Self Absorbed
• Corporate Employed
• Travelled
L’Oreal Campaign aimed at Gen X uses celebrity to drive home
the message and I’m Worth It in decadent 1980’s becomes
You’re Worth It.
PROFILE: MILLENNIALS
43
• Digitalised
• Community
• Socially Savvy
• Shared Success
• Political Activists
• Global Citizens
• Transparency
• Connected
• Advocates and Story Tellers
• Peer to Peer Endorsement
• Recreational Employees
• Micro Economy
• Transient
• Experience Seekers
ThoughtWorks worked with Domino’s to create a device agnostic HTML5 online system that reduces the footprint of the multiple digital channels, while bringing customers closer to the ultimate pizza ordering
experience.
WAR BABY
BABY BOOMER
MILLENNIAL GEN X
CONCLUSION
MIND THE GAP
TECH
Gen Z This generation can write their own programmes!
Who stole my market share?
GROCERY
UK GROCERY MARKET
• The big 4 have dominated the sector for almost 2 decades.
• Food standard scandals, price wars, fraud, aggressive supplier agreements and write downs and losses have dogged the sector for the past 5 years.
• Competition by way of new market entrants has eroded market share.
• Continued price wars has dented profits.
• Large scale store formats are no longer viable or sustainable.
• Lack of investment in customer experience.
THE SECTOR HAS BECOME CROWDED
• Strategy by big 4 has to date been catch up mode.
• Customers have opted for smaller store formats, these are local, convenient and suit the time poor customer.
• Population has grown older and local format has become more popular.
• Clear everyday low prices has won over frequent offers and deals with all demographics.
• Sales of small format/ product sizes and loose fruit & veg and single ready meals have grown with singles young and old.
EMERGING TRENDS
• Conventional Loyalty Programmes are dead, what next?
• Mobile as business diversification
• Mobile Scan & Go
• Subscription models
MORRISONS LOYALTY
TESCO LOYALTY
SAINSBURY’S LOYALTY
ASDA LOYALTY
SELLING MOBILE TECHNOLOGY
SAINSBURY’S MOBILE SCAN & GO
APPLE WATCH INTEGRATION
Ocado offers an Apple Watch app that will allow customers to shop from their wrists in just 15 seconds with a predicted list based on their previous orders and delivery times.
Big Data Analysis
• Uncovering the money pots
• Breaking down silos
• Continuous Delivery
UNCOVERING THE MONEY POTS
UNCOVERING THE MONEY POTS
BREAKING DOWN SILOS – IMPLEMENTING AGILE PRACTICES
Marketing & PR used to increase
brand profile and drive traffic to sales channel
Owned CRM database and
inventory management
systems and Mgt
Owned CRM database and
duplicated inventory stock holding and Mgt
Additional sales channel, often with 3rd inventory stock holding and Mgt
MARKETING RETAIL STORES ONLINE OUTLET
THE CONSUMER JOURNEY
AWARENESS EVALUATION PURCHASE USAGE REPURCHASE ADVOCACY
• DIRECT MAIL • PR
• PRINT/TV
• SOCIAL
• E-MAIL • E-BOOK • WEBSITE • WEBINAR
• BLOG • SOCIAL • SEO • E-COMMERCE
• IN-STORE
• CATALOG
• APP
• SALES
• SMS • E-MAIL • COMMUNITY
• SOCIAL • FAQ • E-MAIL
• DIRECT MAIL
• WEBSITE
• SALES
• COUPON • E-MAIL • REVIEWS • COMMUNITY
• SOCIAL • EVENT
Connecting the dots of his journey. You need to look at your customer & the touchpoints & look at retail holistically.
FUTURE-PROOF YOUR BUSINESS TODAY
• Technology products are customer engagement tools or services consider these solutions
• Individual product solutions will realise potential when they are part of a strategic plan.
• Technology is your ENABLER
• Focus your customer at the heart of your business
• Identify and solve your business problems
Why Now & Where to Start?
DIGITAL TRANSFORMATION
HOW NOT TO DO IT.
© 2012 Google Analytics
why does it matter NOW? What makes digital transformation so important NOW?
* DCX - Digital Consumer Experience
Social business connections alone are
not enough. Social business helps flatten traditional
hierarchies by empowering employees to connect, communicate, and collaborate
across traditional boundaries. But without a vision for how to compete in connected markets and how to create value for a digital customer, social is not the answer. When leadership recognizes that existing business models, systems
and processes are ill-equipped to respond without big changes, digital
transformation is inevitable.
Brands are out of touch with digital consumer
behaviours. Brands are out of touch with their digital
customers. Companies are boosting technology budgets, but all is based on
assumptions and not from research into the new customer journey. Brands lack
the infrastructure to support next generation marketing efforts. Brands have to start using insights stemming from the new DCX* as the catalyst for
internal digital transformation.
Digital transformation puts people at the centre. Every business says it’s customer-centric. Really? Leading companies put people at
the center of change. They start with studying the data (digital footprints and
preferences) plus behavior to learn where to prioritize technology, resources,
and investments. The case for urgency is made in updating an antiquated
customer journey to a more accurate, adaptive, optimized DCX.
1 VISION &
LEADERSHIP Digital transformation an emergent
movement, is not yet recognized as a formal priority by most businesses.
This requires those leading to get a digital transformation program in motion to
make the business case. But, the business case needs more than evidence or anecdotes; it needs a story and a vision for what it looks like and what it delivers.
THE 3 KEY ELEMENTS What makes digital transformation so important NOW?
2 THE DCX
Digital customer experience begins with research, studies behaviors and
expectations throughout every stage of the customer lifecycle. With information,
digital transformation takes shape by specifically aligning people, processes,
and technologies against goals to map an effective journey for digital customers.
3 TRANSFORMATION
TEAM Organizations form special teams to bring people together to start talking and put change into motion. These teams go by many names: digital
circles, Centers of Excellence (CoE), rapid innovation teams, digital acceleration teams, and more.
KEy elements 3 Key Elements for Digital Transformation
Vision & Leadership
Digital Customer
Experience
Digital Trans-formation
Team
KEy elements 3 Key Elements for Digital Transformation Where are you?
Vision & Leadership
Digital Customer
Experience
Digital Trans-formation
Team
DIGITAL TRANSFORMATION KEY QUESTIONS
Digital Customer
Experience
Vision & Leadership
Digital Transformation
Team
WHO DRIVES YOUR
CHANGE PROGRAM?
WHERE DO YOU WANT
TO TAKE THE COMPANY?
WHAT DOES YOUR DCX LOOK
LIKE?
LEAN ENTERPRISE
Barry O’Reilly
