ACHIEVING RETAILING EXCELLENCE

"How to manage innovation in order to close today’s customer experience gap ? ”

=> Innovation empowered !

Stockholm, December 15th 2015

the next five years will bring more change to retailing than the

past 50 years combined

(1) National Retail Forum,New York 01/2014 – Keynote introduction

Technological disruption paired with fast-changing customer habits are driving consumer expectations into the stratosphere, while barriers to entry

into the retail fray have been effectively eradicated – with no end in sight.

retail finds itself in a rare ‘reset moment’

(2) National Retail Forum,New York 01/2014 – Keynote introduction

As retail CEOs push their organizations to move faster, work smarter and think differently to meet the consumer demands, it’s no longer enough to

react to change. Visionary CEOs must re-evaluate their retail enterprises –people, processes, partners and the technologies that support them – and

evolve to anticipate and proactively adapt to relentless disruptions.

In 2015 who is the rising star of future retailing?not Millennials, they are already shining..

Marketing to This

Powerful and

Surprisingly

Different Generation

of Parents

Hardcover – August

19, 2015

July 2013

the customer experience

=+

From ‘start to end’

seamless service

personally perceived emotion

Daniel Gilbert,Harvard Psychologist

Harvard Psychologist explains why“Buying Experiences Makes People Happier Than Buying Things”.

It has to do with the way we relate to objects versus events. We adapt to

things quickly, but we get to anticipate and remember events more than purchasing a product or service:

a lifestyle experience

Innovation has

historically

visualized as a

staircase like

approach.

1.0

2.0

3.0

4.0

5.0

Today, success

requires a

capacity to

cope with a

permanent

state of

innovation.

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

Next (soon): the merge of online and physical worlds…

AR + VR, what does it mean to your business ?

innovation

empowered

Digital leaders’

dominanceGoogle, Facebook,

Apple, Amazon,

Outsider Uber

customerexperience

Start-ups target

the “experience gap” !

The retailers’ customer relationship 2016 context…

Power of Start-ups’

digital innovation

ecosystem

$?online access toand knowledge

of customer

start-ups digital innovation ecosystem

02.

How do Start-ups target

the “experience gap” ?

The billion $ start ups’ questions leading to retailers existing experience obsolescence

1 What do customers explicitly or implicitly say about existing experience?

Which new proposition would immediately win customers’ buy-in?

Which customer experiences have matured with a mediocre satisfaction level?Within today’s standards?

And enable to leverage from the start, communities of consumersand/or professional agents?

2

3

4

.

ubertook 4 years

2009Uber foundation

2010Launch in San Francisco

2014Uber deployed in 45 countries, 100 cities worldwide

NB :

30 Bn$ to

40 Bn$

valuation,doubled potentially since June 2014 (18Bn$) Global taxi service disruption !

Retailers Customer relationship ?

customerexperience

Power of Start-ups’

innovation ecosystem

100 Bn$ “R&D” 4 years to WW

deployment

Digital leaders Google, Facebook,

Apple, Amazon,

Outsider Uber

before uber

« driver centric »after uber

« customer centric »

find a carIn the street, looking for a car, eventually under the rain or the snow

I call and wait for the car to arrive

I book the car, and drink coffee, read newspaper while waiting for the car,

I can monitor any minute the taxi expected arrival time

cancelExpected arrival time is too long

I decided otherwise

Cancelation without fees

once on board

A very limited relationship:

Welcome?

Clean car? Noisy music? AC tuning?

Driving behavior?

Knowledge of city and best route?

Other services?

The driver knows the customer will grade him:

Courtesy, kindness, proactive proposals

The customer can ask for anything

Asking for a portable electric charger is normal, increased AC....etc

paymentWaiting to pay and to get the receipt

Cash or credit card accepted?

No payment in the car

Receipt automatically sent via email

Service

improvement &

feedback loop

A 10 to 60 mn relationship max,

No feedback loop

The driver is graded (one to 5 stars)

Immediate feedback

The passenger is graded as well

satisfaction ++++

uber’s inspiring success…Thanks to mobile, the taxi industry went through an amazing change in customer service from 2009 to 2014 in 100 major cities in the world.

before uber

« driver centric »after uber

« customer centric »

find a carIn the street, looking for a car, eventually under the rain or the snow

I call and wait for the car to arrive

I book the car, and drink coffee, read newspaper while waiting for the car,

I can monitor any minute the taxi expected arrival time

cancelExpected arrival time is too long

I decided otherwise

Cancelation without fees

once on board

A very limited relationship:

Welcome?

Clean car? Noisy music? AC tuning?

Driving behavior?

Knowledge of city and best route?

Other services?

The driver knows the customer will grade him:

Courtesy, kindness, proactive proposals

The customer can ask for anything

Asking for a portable electric charger is normal, increased AC....etc

paymentWaiting to pay and to get the receipt

Cash or credit card accepted?

No payment in the car

Receipt automatically sent via email

Service

improvement &

feedback loop

A 10 to 60 mn relationship max,

No feedback loop

The driver is graded (one to 5 stars)

Immediate feedback

The passenger is graded as well

satisfaction ++++

uber’s inspiring success…Thanks to mobile, the taxi industry went through an amazing change in customer service from 2009 to 2014 in 100 major cities in the world.

At the start:

no industry

or

tech expertise !!

start-ups’ ecosystemexcel

at customer experience disruption !

=> Innovation scan is inspiring and productive

A, B, Cs of future retailing experience

excellence ?

03.

2000…………………………………2006/2007……………………….……...today..……………………….2020

Desktop e-Commerce

Social+ 3G Mobile & Tablet

Ramp-up

Smartphone maturity…

maximize classicstore experience

develop a strong multi-channel experience

key success factors

engage 100% online

including in store+

Resist

Retail Operations

Adopt

eCommerce & Supply Chain

Store must become

an efficient

“Physical Website”

Multi-device real time CRM

+ data + 2-12 hour last mile delivery

+

“4 out of 5 smartphone user check their phones within 15mn or less…

after waking up”

IDC Research

- A -Embrace the customer’s full smartphone lifestyle…

- B -Address the millennials super omnichannel journey (1)

Super omnichannel is about offering total flexible shopping journey, telecom example

Multi-channel was about a consistent coordinated experience between

store and eCommerce*

*most advanced: Apple, Nordstrom, Best Buy, Argos, Sephora

- B -Address the millennials super omnichannel journey (2)

home office outsidetransportation

commutingnear store in store

searchdiscovery

orderbuy

customer service

delivery

→ Selects phone on his Telco website

→ Checks loyalty benefits if re-engages

→ Downloads and logins on App

→ Automatic push on personalized data

plan option for selected phone in

wishlist

→ App alert from store nearby with

preferred phone in stock

→ Chat engagement proposed in App

→ Heads for the store with app directions

→ In store, identifies phone on shelf

→ App alert (iBeacon-based ) proposition to watch video on selected

phone features

→ special data plan offer if purchase of high end phone,

→ Store staff not available, chat engagement proposed in App (time

based trigger), dialogue on how to subscribe,

→ Staff is available and Phone+ data plan offer appears on staff

tablet

→ White color phone not in stock, staff takes order for home delivery→ Customer logins on tablet to track

delivery

→ He tracks in real time driver &

package

1

2

4

5

3

- C –Anticipate the inevitable connected store experience (1)

1North America Apple

Store mobile app

Real time genius bar appointment

100% product info & reviews (scan)

Beacon localized messaging

In app payment & receipt

- C –Anticipate the inevitable connected store experience (2)

1

Dimensions to master, to reach future experience excellenceThe 7 globally relevant dimensions

1 Partner with power of digital start-up ecosystem

100% real time customer/community centric

Manage dominance of 5 digital leaders

Smartphone centric omnichannel

2

3

4

Local mastering: local relationship (incl. local communities) and last mile

Omnichannel extended to store Xperience

Image & Video engagement

5

6

7

Omnichannel extended to store experienceStore customer digital touch points (Customized experience based on retailer DNA)

0 Store analyics

Large screens & personalized content

Empowered amazing staff

Fitting rooms, testing, product info & content

1

2

3

Assistance in self service

Smartphone experiences

Check out

4

5

6

Introduce lean in your organizarion & process ?

Jean-Christophe HermannExecutive VP Global retailing

New York

Start up lean go to market and to success

1. MVP minimum viable product (UX/UI Version 1 to get feedbacks asap)

2. User attractiveness and satisfaction (UX/UI simple and efficient/life changer)

3. User traction ( User KPIs)

4. Business model tuning: customer acquisition & retention revenue/costs

5. Clarify roadmap to profitability

6. Scale, grow

7. Reach cash flow neutral

8. Reach profitability

Series

A,B,CSeed

roundFamilies

& FriendsFounders

Ready for sprints in the innovation marathon ?

Next: immersive 3D

The future of retailing:

immersive 3D

New York Nov. 12 2015

Thank you

Let’s chat !Jean-Christophe Hermann

Executive VP Global retailing