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From Clicks to BricksDriving footfall in-store through digital innovation
In-StoreisStillthePrimaryRevenueEarnerConsumersgloballyhaverapidlyadopteddigitalretailchannels.OnlineretailsalesintheUSareexpectedtoreach$370billionin2017,upfrom$231billionin2012.However,thisdoesnotringadeathknellforbrick-and-mortarretailstores.Despitetherapiddouble-digitgrowthrateofe-business,onlinechannelsareexpectedtocontributetoonlyaround10%ofallUSretailsalesby20171.Thephysicalstorestillremainstheprimarypointofsaleforalargeproportionofconsumers.
Figure 1: Percentage of Consumers Preferring In-store vs. Online Experience
Source: Wanderful Media Research, December 2012
2
During 2011, US store sales conversion rates were 14 times higher than their e-business counterparts.
Online channels are expected to contribute to only around 10% ofall US retail sales by 2017.
In-store Online
16%40%
13%50%
12%51%
Bettercustomer service
Getting answersfor questions
Establishing relationshipwith merchant
Majority of Consumers Prefer to Shop In-StoreAUSsurveyshowsthatconsumerspreferthein-storeexperienceforavarietyofreasons(seeFigure1)2.Physicalstoreshelpconsumersestablisharelationshipwiththemerchant,getimmediateanswerstoquestionsandgetaccesstobetterservice.Fromaretailerperspective,thishighlightstheareaswheretheyneedtocontinueinnovatinginordertostayrelevanttothedigitalconsumer.
In-Store Sales Conversions are Higher Compared to OnlineAnotherkeyfactorthatmakesphysicalstoresindispensabletoretailersisthehighersalesconversionratesthattheyachieve.Astudyindicatesthatduring2011,USstoresalesconversionrateswere14timeshigherthantheire-businesscounterparts3.Drivingmoretrafficin-storehasanimmediateimpactonacceleratingsales.
Digitaltechnologiescanhelpretailersmatchconsumerinterestinonlinechannelswiththehigher
salesconversionbenefitsofphysicalstores.
Inthenextsection,wediscusswhichdigitalserviceshavethepotentialtodrivein-storetrafficandincreaserevenues.
DigitalToolsDriveAdditionalIn-StoreRevenuesDigitaltechnologieshavepervadedallsegmentsoftheconsumerpurchasecycle.Theyallowcustomerstomakepurchasedecisions,locateretailstoresoravaildiscounts.Weidentifiedasetof13suchdigitalservicesthatconsumerscanuseacrossthepurchasecycle.Alloftheseservicesarerelevantatdifferentpointsofthepurchasecycle–fromcustomercommunicationtoafter-salescustomerrelationships(seeFigure2).
Interestingly,retailersarealreadyusingsomeofthesedigitalservicesandseeingpositiveresults.Forinstance,inmid-2011,Seattle-basedfashionandbeautyretailerNordstromrolledout6,000mobilepaymentdevicesacross117ofitsstores.
Thesedevicesenableemployeestocheck-outconsumersfromanywhereinthestorewhiletheapponthedevicealsoallowsassociatesaccessintothecompany’sinventory.Thisresultedinanincreaseintheaveragesellingpriceandthenumberofitemssoldin2011ascomparedto2010.TheuseofmobiledeviceshadanimpactonthetotalretailsalesforNordstorm,whichjumpedby15.3%inthefirstquarterof2012ascomparedtothesameperiodinthepreviousyear4.
These13servicesindependentlyhavetheabilitytodrivebothtrafficandrevenuesforaretailer.However,ourexperienceintheretailsectorindicateshighestinterestlevelsforAppointment
3
Figure 2: Digital Shopper Services and the Consumer Purchase Cycle
Source: Capgemini Consulti ng Analysis
Communication Sales promotion Sales Customerrelationship
Dig
ital
shop
per s
ervi
ces
mee
ting
thes
e ex
pect
ation
sCu
stom
erex
pect
ation
s
To find information
about a retailer easily
To be advised and
reassured in their choices
To benefit from
discounts
Virtual product trials
Service comparison tool
e-/m-coupons
Online personal shopping / “coaching”
Store Locator Appointmentbooking
Shopping list apps M-payment Multichannel loyalty
programmes
Retargeting
Click & ReserveStore
happenings
Product Locator
To prepare the purchase
To facilitate the
transaction
To be supported after their purchase
In a survey conducted with more than 1,000 North American shoppers, 48% indicated that helpful store associates motivated them to spend more in-store.
BookingandOnlineShoppingListservices.Boththeseserviceshavehighup-sellingpotentialandprovidestrongdifferentiationintermsofcustomerexperienceagainstcompetitors.Inaddition,
Appointment Booking Service: Home Depot In-Store Appointment Maker
HomeDepot,inanefforttoprovideaconsultativedimensiontoitsself-service/DIYproducts,hasimplementedanin-storeappointmentmakerapplication.Theappisverydetailed,allowingcustomerstoidentifytheirnicherequirementsbasedonspecifictypesofproducts,viaanonlineform.Userscanalsoselectstoresanywherebetween5-100milesfromwheretheylive.Theappalsoprovidesanoptiontomakethatstorethe‘default’choicesothatthenexttimethecustomerhastoaccesstheapp,itavoidsduplicationofeffortsinfillingoutallthedetailsonceagain.Theusersubsequentlyschedulestheappointmentbyselectingaconvenientdateandtime.
Source: Home Depot website
4
theavailabilityofmaturetechnologiesforboththeseservicesfacilitatetechnicaldeploymentandeasierserviceadoptionwithseveralmonths’leadtime.Webelievethesetwoservicesshouldformtheinitialfocusforanyretailerthatislookingtowardsdigitaltechnologiesasameansofdrivingphysicalin-storetraffic.
Appointment Booking Service Drives Up-sellTheAppointmentBookingservicerevolvesaroundtheconcept
ofin-storesalesadvisorswhoassistshoppersandrecommendrelevantproductsinlinewiththeirrequirements.This,inturn,canencouragecustomerstoincreasetheirspend.Infact,inasurveyconductedwithmorethan1,000NorthAmericanshoppers,48%indicatedthathelpfulstoreassociatesmotivatedthemtospendmorein-store5.
TheAppointmentBookingserviceprovidesadifferentiatedofferingcomparedtopureonlineplayersduetothepresenceofdedicatedsalesadvisors.Theservicealso
increasestheconsumer’saverageshoppingbasketsizeduetoup-sellingofcomplementaryproducts.Italsorecordsconsumerdatapriortoscheduling,whichcanbeusedforfollow-upsinthecaseofnoshowsornopurchase.SeveralretailershavestartedimplementingAppointmentBookingservices.HomeDepotisonesuchretailerthathasalreadyimplementedanin-storeappointmentmaker;theserviceallowscustomerstoscheduleappointmentsthroughthewebsite(seeinsert)6.
Schedule your initial in-store appointment with a Home Depot specialist.To schedule an appointment with a particular associate or to schedule a follow-up appointment, please contact the store directly.
1. Select Product & Store
Product:
Store: Select a Store
2. Select Date & Time
3. Enter Contact Information
Select a Product
In-StoreAppointmentMaker
Online Shopping List Service Catches the Customer Early in the Purchase CycleTheOnlineShoppingListserviceallowsconsumerstocreatelists,plantheirpurchasesinadvanceandgetrelevantinformationonselectedproducts,suchasavailabilityandoffers.Once
thecustomerisin-store,theapplicationalsoinformsaboutusefulrelevantproductspreviouslynotconsidered,therebyincreasingthestore’sup-sellpotential.Onlineshoppinglistserviceshelpsecurebrandloyaltybynarrowingdownthecustomerinteractiontooneparticularchannel.Itincreasestheaverageshoppingbasketbyrecommendingrelevant
productsaccordingtoconsumers’shoppingrequirements.TescoisonesuchretailerthathasalreadyimplementedanonlineshoppinglistservicecalledTescoFinderthatenablescustomerstocreateandsharelistsonline,andaddproductstothelistinreal-timewhileatthestore(seeinsert)7.
Online Shopping List: Tesco Finder
Tesco,initseffortforprovidingcustomerswithadifferentiatedexperience,hasintroducedseveraldigitalservices.OneoftheseservicesisaDigitalShoppingList;thisserviceisloadedwithmanyfeaturesallowinguserstoeasilyidentifytheirneedsandgoaboutfulfillingthemwithease.
TheDigitalShoppingListservice,namedTescoFinder,inadditiontofindingthenearestTescostore,alsoallowsconsumerstobuildashoppinglistbybrowsingthroughvariousproductcategoriesanddepartments,sharethelistwithfriendsandaddproductstothelistwhiletheyareinthestore.Theservicedisplaysspecialoffersonproducts,storetimings,productavailabilityintheselectedstoreandproductdetails.Consumerscanusethemobileversionoftheservicetolocateproductswithinthestoreandaddthemtothelistbysimplyscanningthebarcode.
Afewoftheotherfeatures,suchasvoice-enabledproductsearchandin-storenavigation,letconsumerssavetimeinfillingupthelistorpickingupproductsfromthestore.Thein-storenavigationfeaturecreatestheshortestroutewithinthestorebasedonproductsintheconsumer’sshoppinglist.
Tescorealizestheimportanceofusingdigitaltechnologyinbringingconsumerstothestore.ThisisconcurredbyitsCIOMikeMcNamara,whenhesays,“Idon’tthinkwehaveanonlinestrategy,wehavearetailingstrategythatisincreasinglydigital.Onlineisbecomingpartofthecorebusiness”.
Source: Tesco website
5
Groceries
Book details
Add itemShopping list
Milk
Rice �akes
+
<
Favourites
Basket
Orders
2 pending orders
Book details
Favourites Orders
Groceries Home
Book a slot
Favourites
Shop
Basket £ 26.17
Orders
Checkout
Tesco direct
FREE Click & Collect from over 750 scores
Technology & Gaming
Home Electrical
Home Furniture
DIY & Car
Garden
Toys +
+
+
+
+
+
<
Great o�er on International tour
6
ServicessuchasAppointmentBookingandOnlineShoppingListgiveretailerstheabilitytodriveadditionalrevenuesfromtheincrementaltrafficthattheycandriveinsidestores.Wecallsuchenablerservices“Click2Stores”.
The Benefi ts Case for “Click2Stores” ServicesAppointmentBookingandOnlineShoppingListservicesgeneratesubstantialfinancialbenefitsforretailers.However,thesebenefitswouldalsolargelydependon
theproductcategoriessoldbyretailers.
OuranalysisrevealsthatanAppointmentBookingservicehasthepotentialtogenerateupto2.2%ofadditionalrevenuesperyear(seeFigure3).Ifaretailersellingconsumerelectronics,suchasBestBuy,weretoimplementanAppointmentBookingserviceitwouldhavethepotentialtogenerateadditionalannualrevenuesupto$800millionbasedonitscurrentoperatingmetrics.
Figure 3: Additional Revenue Generating Potential of Appointment Booking Service
Source: Capgemini Consulti ng Analysis
For each family of high value products, one customer per week intended to buy the product but didn’t
because of the absence of a shop assistant.
Results
Benefits
Reduced loss of earning due to in-store
assistance
Upselling due to anappointment
Cut in acquisitioncosts of qualified
contacts
Model
60% of the sales on an appointment generate 20% of upselling
The number of customers completing the online questionnaire is twice the number
of appointments made
Sportswear
$ 60 Average Basket Value
Hypotheses
3350Number of stores
6Number of families of high value products
30Number of appointments per week per store
50%Percentage of customers on appointment, buying with flexible budget
50%Part of overbooking on appointment
$ 3 Value of a qualified contact
$ 65 M
$ 30 M
$ 30 M
$ 125 M
2.2% of sales
DIY
$ 80
2248
$ 80
2248
14
$ 3
$ 130 M
$ 28 M
$ 21 M
$ 180 M
0.25% of sales
ConsumerElectronics
$ 200
4379
13
$ 4 $ 4
$ 590 M
$ 135 M
$ 55 M
$ 780 M
1.6% of sales
Online Shopping List service can generate between $1 billion and $1.5 billion additional revenues for largegrocery retailers.
7
ForDIYandgroceryretailers,theAppointmentBookingservicecouldgeneratebetween0.25%and0.1%ofadditionalannualrevenue,respectively.
Similarly,ouranalysisrevealsthattheOnlineShoppingListservicehasthepotentialtogenerateupto0.3%ofadditionalrevenueseachyear(seeFigure4).Forinstance,groceryretailerssuchasWal-Martcouldexpectpotentialadditionalrevenuesofaround$1billionto$1.5billioneachyearbyimplementinganOnlineShoppingListservice.DIYretailers
Figure 4: Revenue Generating Potential of Online Shopping List Service
Source: Capgemini Consulti ng Analysis
Results
Benefits
*Data estimated based on calculation
Increase of the average basket(1 to 2 additional products in the basket per transaction)
Increase of the purchase frequency(2 additional transactions per year per household)
Food superstore
leader
Non-foodsuperstore
Average basket
Hypotheses
Number of products in an average basket
$ 50 B
850 M*
1%
Average number of products forgotten per transaction
Revenue per year
Number of transactions per year
Percentage of customers adopting the service
Average number of transactions per year per household
Additional number of transactions per year per household
$ 870 M
$ 430 M
$ 1300 M
0.3% of sales
$ 59
4*
1
$ 447 B
13000 M *
2.5%
50
2
$ 33.4
25*
2
$ 125 M
$ 125 M
0.3% of sales
couldgenerateadditionalannualrevenuesofaround0.05%.
Thesuccessofboththeseservicesdependsontheproductcategoryforwhichtheyarebeingutilized.Forinstance,AppointmentBookingserviceismostbeneficialinthecaseofretailerssellingproductswithhighaveragebasketvalue,asisthecasewithcategoriessuchasconsumerelectronics.Ontheotherhand,anOnlineShoppingListservicegeneratesmaximumbenefitforretailerswithhighernumberofproductsperbasketandhigher
frequencyofpurchases,asisthecasewithgroceryretailers,forexample.
Tofindouttheadoptionandmaturitylevelsoftheseservicesweconductedananalysisofthetop30globalretailers.Theobjectivewastoidentifymaturitylevelsoftheseservicesacrossregionsandchannels.
8
Benefits Case MethodologyWeassessedtheadditionalrevenuegeneratingpotentialofboththeAppointmentBookingandOnlineShoppingListservices.Weconsideredgloballeadersforeachofthecategoriesconsideredaspartofourbenefitscaseanalysis.
Appointment BookingWeassessedtheAppointmentBookingserviceacrossthreeproductcategories:ConsumerElectronics,SportswearandDo-It-Yourself.Thebenefitscasewasbasedonthefollowingcriteria:
Averagebasketvalue
Numberofstores
Numberoffamiliesofhighvalueproducts
Numberofappointmentsperweekperstore(1appointmentevery20minutesonSaturdayfor1FTEsalesperson)
Segmentofcustomersonappointment,purchasingwithaflexiblebudgetof20%
Partofover-bookingsonAppointments
Valueofaqualifiedcontact
Wecalculatedtheadditionalrevenuegeneratedperyearbasedonthefollowingbenefitmodels:
Decreasedlossofearningduetoavailabilityofin-storeassistance:NumberofhighvalueproductfamiliesXAverageshoppingbasketcomprisingtheseproducts XNumberofstoresXNumberofweeksperyear.
Up-sellingduetoanappointment:Numberofappointmentsperweek XNumberofstores XNumberofweeksperyear X Averageshoppingbasketcomprisingtheseproducts X Proportionofthecustomers(50%purchasingwithaflexiblebudgetof20%).
Reducedacquisitioncostofqualifiedcontacts:NumberofappointmentsperweekXNumberofstoresX Numberofweeksperyear X{(1/Overbookingpercentage(50%)}XValueoftheenrichedcontact.
Online Shopping ListWeassessedtheOnlineShoppingListserviceacrosstwocategories:non-foodsuperstoreandfoodsuperstore.Thebenefitscasewasbasedonthefollowingcriteria:
AverageBasket
Numberofproductsinanaveragebasket
Numberofproductsforgottenonanaverageduringcashing(1forahypermarketand2foraspecializedhypermarket)
Revenuesperyear
Numberofcheckoutsperyear
Percentageofcustomersadoptingtheservice(between1%inaspecializedhypermarketand2.5%inahypermarket)
Averagenumberoftransactionsperyearperhousehold
AdditionalnumberoftransactionsperyearperhouseholdduetotheuseofOnlineShoppingListservice(2additionaltransactionsperyear)
Wecalculatedtheadditionalrevenuegeneratingpotentialbasedonthefollowingbenefitmodels:
IncreaseintheAverageBasket:NumberofproductsforgottenonanaverageforeachtransactionX(Valueofanaveragebasket/Numberofproductsinanaveragebasket)XNumberoftransactionsperyearXPercentageofcustomersadoptingthefunctionality(1%to2.5%).
IncreaseinPurchaseFrequency:(Numberoftransactionsperyear/Averagenumberoftransactionsperyearperhousehold)X PercentageofcustomersadoptingtheserviceXAdditionalnumberoftransactionsperyearperhouseholdXAveragebasket.
RetailersCurrentlyLackaCohesiveApproachto“Click2Stores” OurresearchfoundthatmostretailersarealreadyusingbothAppointmentBookingandOnlineShoppingListservices.However,wefoundastarkcontrastintheadoptionlevelsofboththeservices.Outofthetop30retailersintheworld73%useOnlineShoppingListtodrivein-storetraffic,comparedtoonly20%whousetheAppointmentBookingservice.Thedifferencebetweenadoptionlevelsoftheseservicesismuchmoreapparentwhencomparedacrossgeographies.Over80%ofretailersinbothNorthAmericaandEUprovideOnlineShoppingListservicestotheircustomers,whileonly7%ofretailersinEUand42%inNorthAmericaofferAppointmentBookingservices.
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Only 13% of retailers allow the shopping lists to be shared across social media.
73% of retailers use Online Shopping List while only 20% use an Appointment Booking service.
66% of retailers record consumer requirements while only 25% share personalized offers.
Very Few Retailers Off er Appointment Booking Over MobileAppointmentBookingservicesarestilllargelyofferedovertheWebandretailersareyettorealizetheimportanceofofferingthisserviceovermobileaswell.AgoodexampleofaretailereffectivelyusingbothchannelsisUS-basedretailerWalgreens,whichoffersthisserviceovertheWebandmobilealongwiththeoptionofreschedulingappointmentsremotely.Thepossibilityofthecustomerbeingabletoaccesstheserviceanytime,anywherealongwiththeabilitytoremotelyrescheduleappointmentsreducesdropoutsandnoshows.Also,acoherentapproachiscriticalinextractingthemaximumpotentialfromtheAppointmentBookingservice.Asperouranalysis,while66%ofretailersofferingthisservicerecordconsumerrequirements,only25%share
personalizedofferswiththem,indicatingalostopportunityforincreasingin-storesales.
Retailers Sti ll Do Not Off er Criti cal Online Shopping List FeaturesForOnlineShoppingList,ouranalysisindicatedthatmostretailersarestilllackingacohesivemulti-channelstrategy.Outofalltheretailerswhoareofferingthisserviceoverbothmediums,Webandmobile,only26%allowtheWebservicetosyncwiththeconsumer’smobileandamere13%allowtheshoppingliststobesharedacrosssocialmedia.Forinstance,onlytworetailers,MetroandBestBuy,allowconsumerstosharetheirshoppinglistsonsocialmedia.WebelievethatofferingaseamlessconsumerexperiencefortheOnlineShoppingListservicewouldincreasebothitsusageandin-storesalespotential.
Figure 5: Service Maturity Levels Provided by Retailers for Online Shopping List
Source: Capgemini Consulti ng Analysis
10
EU Retailers Off er Less Advanced Online Shopping List FeaturesFurthermore,onanalyzingthematurityleveloffeaturesofferedforOnlineShoppingListwefoundaninterestingcontrastbetweenNorthAmericaandEU-basedretailers.Thefigurebelowshowstheservicematuritylevelachieved,acrosseachcategoryofservice,forOnlineShoppingListinNorthAmericaandEurope(seeFigure5).
WefoundthatEU-basedretailersaredoingbetterthanNorthAmericaintermsofproviding‘Basic’featuressuchasstorelocatoranduseofcoupons.Outof12retailersfromEU,11offeramajorityofthe‘Basic’featuresforOnlineShoppingList.Incomparison,only4outof10retailersfromNorthAmericaofferthesamefeatures.Ontheotherhand,NorthAmericanretailersofferadvancedfeaturescomparedtotheirEUcounterparts–an
15%
Basic Services:Use of coupons, Store Locator,
Barcode Scanning and Sharing via email/SMS
Differentiators: Synced with Mobile, Sharable on
Social media, Inventory check and Product comparison tools
Premium Services: In-store aisle location/navigation, Voice-enabled search and Offers
based on in-store location
63%
73%
24%20%
11%
North America EU
indicatorofservicematurity.Asmanyas40%ofNorthAmericanretailersofferawidearrayofinnovativeservicessuchasin-storenavigationandvoice-enabledsearch.Incomparison,TescoistheonlyretailerintheEUthathasaportfolioofsimilarofferings.
Inthenextsection,welookathowretailersshouldgoaboutdesigningandimplementingsuchservices.
11
Methodology:Theobjectiveofouranalysiswastofirstestablishthepresenceofa“Click2Stores”implementation,i.e.AppointmentBookingandOnlineShoppingList,acrossthetop30globalretailers.Thiswasfollowedbyanalyzingchannelmaturity,feature-richnessandgeographicalspreadoftheseapplications.
Companies Analyzed:Weconsideredthetop30retailersintheworld,basedontheir2011annualretailrevenues:
Wal-MartStoresInc.,CarrefourS.A.,TescoPLC,MetroAG,TheKrogerCo.,SchwarzUnternehmensTreuhandKG,CostcoWholesaleCorporation,TheHomeDepot,Inc.,WalgreenCo.,AldiEinkaufGmbH&Co.oHG,TargetCorp.,ReweGroup,CVSCaremarkCorp.,Seven&iHoldingsCo.,Ltd.,GroupeAuchanSA,EdekaZentraleAG&Co.KG,AeonCo.,Ltd.,WoolworthsLimited,BestBuyCo.,Inc.,Lowe’sCompanies,Inc.,WesfarmersLimited,SearsHoldingsCorp.,CentresDistributeursE.Leclerc,SafewayInc.,KoninklijkeAholdN.V,CasinoGuichard-PerrachonS.A.,ITMD,JSainsburyPlc,TheIKEAGroupandLoblawCompaniesLimited.
Key Parameters: AdoptionlevelsWedefineadoptionlevelasthenumberofretailersthatoffereachoftheseservicesacrossgeographies.
ChannelMaturityWedefinechannelmaturityasthenumberofchannelsoverwhichaparticularservicewasoffered(Web,onlymobileorboth).
Feature-Richness Featuresofbothservicesweresegmentedintothreedistinctareas,namely,‘Basic’,‘Differentiator’and‘Premium’.FortheAppointmentBookingservice,‘Basic’featuresincludedabilitytorecordconsumerdetailsandshoppingneeds,offeringmultiplestoreselectionandprovidingmultipleappointmentbookingslots.‘Differentiator’featuresincludedabilitytosyncwiththeconsumer’sprimarydevice,optionofreschedulingappointmentsremotely,providingpromotionalandpersonalizedoffers.‘Premium’featuresincludedusingGPStoprovidetheneareststorelocation.Similarly,fortheOnlineShoppingList,‘Basic’featuresincludeduseofcoupons,StoreLocator,BarcodeScanningandsharingviaemail/SMS.‘Differentiator’featuresincludedsyncingwithmobile,sharingonsocialmedia,inventorycheckandproductcomparisontools.‘Premium’featuresincludedin-storeaislelocation/navigation,voice-enabledsearchandoffersbasedonin-storelocation.
Research Findings:Theanalysisfindingsarestrictlybasedonthenumberofcompaniesusingthe“Click2Stores”Servicestodrivein-storetraffic.
OverallFindingsMostretailersareyettotapintothefullpotentialofthesetwoservices.Europeanretailerscontinuetofocuson‘Basic’featureswhileNorthAmericanretailersoffermoreadvancedfeatures.However,retailershavenotofferedadvancedoptionsthatcontributetoadirectimpactonin-storesales,suchaspushingpersonalizedoffersbasedonconsumerdataorshareabilityonsocialmediasites.NoneoftheretailersintheAPACregionhaveadopted“Click2Stores”services.
Category-wiseFindings
Region-wiseFindings-AdoptionlevelsforOnlineShoppingListaresimilaracrossNorthAmericaandEU.Forinstance,83%ofNorthAmericanretailershaveadoptedanOnlineShoppingListservicewhile86%ofEU-basedretailersprovidethesameservice.-Only1outofevery14retailersintheEUoffersAppointmentBookingserviceascomparedto5outof10inNorthAmerica.
Our “Click2Stores” Implementation Research for the Top 30 Global Retailers:
1. AppointmentBookingService:-ItstillremainsaservicewhichislargelyofferedovertheWeb,withonlyoneretailer(Walgreens)offeringitovermobile.-While66%oftheretailersrecordconsumers’needs,only25%usethisdatatosharepromotionalpersonalizedofferstoconsumers.
2. OnlineShoppingList:-Outof15retailersofferingthisserviceonboththemediums,webandmobile,only6providetheabilitytosyncshoppinglistwiththeconsumer’smobiledevice.-Only3retailersenableshoppinglistshareabilityacrosssocialmedia.
KeySuccessFactorstoConsiderWhenImplementing“Click2Stores” Ouranalysisofleadingretailersandtheirimplementationofthesetwoserviceshaveenabledustoarriveatasetofkeysuccessfactorsthatshouldbeconsideredwhendesigning“Click2Stores”typeservices.
Create a compelling multi -channel experience with “Click2Stores” ServicesThesuccessofbothappointmentbookingandonlineshoppinglisthingesonbeingabletoprovideaconsistentservicedeliveryacrossmultiplechannels.Manyretailersareyettotapintocriticalfeaturesthatwebelievehavethepotentialtodrivemorefootfallandrevenues.Forinstance,activitysynchronizationisacriticalfeatureofbothservices.Inthecaseofappointmentbooking,customerswanttosyncappointmentswiththeirmobiledevice.Theyalsowanttobeabletoinstantlyconfirmreservationsonthemobileplatform.Similarly,inthecaseofonlineshoppinglistservices,customerswanttheabilitytosynclistsfromtheWebtotheirsmartphonesaswellaspre-populatelistsbasedonpastpurchases.
Customize “Click2Stores” Services to Customer NeedsItisimportanttobearinmindthattheappointmentbookingservicetakesaconsultativeapproachtoselling.Assuch,itisimportanttosegmentconsumersanddesignthepurchasejourney,oncein-store,accordingtotheirrequirements.Unlikethe
appointmentbookingservicethatislargelydrivenbyin-storesalesassociates,inthecaseofonlineshoppinglistservices,customerswantuserinteractionstobekepttoabareminimum,onceinsidethestore.Thesesubtledifferencesshouldbecapturedindesigningeffective“Click2Stores”services.
Synchronize “Click2Stores” Services with your Store Soft ware and CRM DatabaseInbothservices,geo-localizationandcustomerprofilesshoulddeterminethechoiceofstorelocationofferedaswellasproductpromotionspushedtotheconsumer.Customersalsoappreciatewhenretailersprovidethemwithreal-timeupdatesandinformationaboutinventoryandpricing.Thismeanssyncingtheapplicationdatawiththestore’sownsoftware,sothatinventoryandpricingupdatesareaccurate.Retailersshouldfocusonprovidingpersonalizedpromotionaloffersbasedonconsumerdataandtheprovisiontoshareshoppinglistsacrosssocialmediaforappointmentbookingandonlineshoppinglistservices,respectively.
Adopt a Dynamic Approach while Implementi ng “Click2Stores” ServicesImplementingtheappointmentbookingservicehasastrongorganizationalimpactonphysicalretailstores.Beforethecustomer’sarrivalatthepointofsale,itiscriticaltodefinetheappointment
12
scheduleandprocesstooptimizesalesadvisors’schedules(managementofdelays,noshowsandpeaktime).Thesalesadvisors’teamhastobestructured(generalistorproductspecialist)andtrained/coachedforthisnewactivity.Moreover,retailersneedtofocusonareaswhichprovidethemaximumbenefitsandensureanevenuptakeofappointmentsslotsbyproactivelyofferingserviceduringoff-peakhours.Adynamicapproachalongwithpropercommunicationwithsalesadvisorsiscriticaltomakethetransactionandup-sellsuccessful.
Whileretailershaveadoptedboththeseservicesatvaryingdegreesofmaturity,theireffortscomeacrossasfragmented.Inanagewhereconsumersexpectaseamless,connectedomni-channelexperience,retailersneedtohaveacomprehensiveandcohesiveapproachtowardsimplementingtheseservices.Doingsowouldenableretailerstotapintothefullrangeofbenefitsofferedbydigitalserviceswhilealsomaximizingchannelpotential.
1 Forrester,“USOnlineRetailForecast,2012To2017”,March2013
2 WanderfulMediaResearch,“TechnologyBlurstheLineofOnlinevs.In-StoreShopping”,December2012
3 CapgeminiConsultinganalysis
4 Forbes,“NordstromSeesSalesBoostfromMobilePOSDevices”,June2012
5 Motorola,“HolidayShoppingStudy”,December2012
6 HomeDepotIn-StoreAppointmentMakerwebsite
7 Tescowebsite
References
Authors
Eric Sindou [email protected]
Olivier Guilhot-gaudeffroy [email protected]
Sarah Driay [email protected]
Digital Transformation Research Institute [email protected]
Jerome Buvat, Amrita Radhakrishnan and Ashish Bisht from the Digital Transformation Research Institute worked on this paper.
The authors would also like to acknowledge the contributions of Olivier Pacaud.
Rightshore® is a trademark belonging to Capgemini
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About Capgemini
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2013 Capgemini. All rights reserved.
FranceLaurence [email protected]
FinlandSami [email protected]
GermanyRalph [email protected]
NetherlandsArmijn [email protected]
USDan [email protected]
UKMike Petevinos [email protected]
SwedenPeter Lindellpeter. [email protected]
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