case study "a deep dive into the user experience"
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BUILDING A SEAMLESS USER EXPERIENCE FOR SHOPPERS
October 20, 2013
PRESENTED BYMATT THOMPSON – KROGER | MICHELLE BERRYMAN – THINK INTERACTIVE
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ABOUT KROGER
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ABOUT THINK INTERACTIVE
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Since 1994, we’ve focused on helping brands create business value through digital channels.
We create digital experiences for a connected world.
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Today, will discuss how we are using insights and trends in mobile adoption and emerging consumer behaviors, as well as, contextual consumer research to build a seamless user experience for shoppers, whether in-store or online.
We will describe techniques for understanding consumer habits, needs and challenges across a full customer journey and the ways in which we are delivering meaningful content to consumers on the right device, in the right moment, with the right services.
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OUR TALK
INSIGHTS & TRENDS
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CUSTOMER & INDUSTRY INSIGHTS
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The most photographed foods are desserts,
vegetables and poultry dishes
25% of socially shared food
photography is simply to show off “what I ate
today”
22% of socially shared food photography documents something the user has
cooked and/or the cooking process they went through
Food is the #1 content category
on Pinterest
47% of women and 33% of men say they use social media as their primary source
for coupons 57% of Pinterest users interact with
food-related content
20% of kids in Australia think pasta comes from animals
49% of surveyed consumers learn about
food from social networks
Influence of social
channels and social sharing
12% of Wal-Mart’s online sales are made through their
smart phone app while customers are in the store
In 1900, 2% of meals were eaten outside the home. In
2010, it was 50%
305B coupons were distributed in the US in 2012 giving consumers access to
$405B in savings
Digital coupon savings rose 41% from 2009 to 2010
67M digital coupons are likely to be redeemed in the US in 2013
28% of coupons are used for food products
85% of families skip healthy purchases at the grocery store
because of price
28% of Americans don’t know how to cook
53% of Americans say they know less about cooking than
their parents
7% of Americans don’t cook
1 in 2 low income families are interested in learning
about cooking healthy meals
2 in 3 low income families are interested in
learning how to better budget their money for
meals
81% of Americans “cook what they
know”
30% of Americans say they love to cook
81% of low income respondents rate fresh produce as “extremely healthy.” That number
drops to 32% for frozen produce and 12% for
canned produce.
85% of low income parents say eating healthy meals is
important to their families
Digital coupon users spend 49% more per year than the average
shopper
25% of the US population is now using
digital coupons
Food and cooking
Budgets, coupons and
deals
67% of people start shopping on one device and continue to
another device (61% laptop, 4% tablet)
71% of shoppers want access to digital content in the store 53% of shoppers
expect greater price visibility via digital
channels
65% of shoppers research online and purchase in-store
Geo-targeted offers and push-notifications will
expand in 2013
Location based services will expand
to 1.4B users by 2014
Context-aware services are on the
rise
Tablets are now driving all growth in
the PC market
Going forward, most smart phone buyers will be older
and poorer
Trends in mobile and
apps
41% of Americans attempt to diet in a
given year
More than half of women say the high cost of healthy
food is a major driver of obesity, compared with just
37 percent of men.
Trends in retail and e-commerce
37% of smart phone owners used a mobile price search app while in a store (a quarter have left to buy the cheaper option).
The most popular recipe on Pinterest (Easy Garlic Chicken) has been pinned more than 1.6M times. The top 25 recipes on Pinterest have been pinned
more than 6.6M times
Health and diet
concerns
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The most photographed foods are desserts,
vegetables and poultry dishes
25% of socially shared food
photography is simply to show off “what I ate
today”
22% of socially shared food photography documents something the user has
cooked and/or the cooking process they went through
Food is the #1 content category
on Pinterest
47% of women and 33% of men say they use social media as their primary source
for coupons 57% of Pinterest users interact with
food-related content
20% of kids in Australia think pasta comes from animals
49% of surveyed consumers learn about
food from social networks
Influence of social
channels and social sharing
12% of Wal-Mart’s online sales are made through their
smart phone app while customers are in the store
In 1900, 2% of meals were eaten outside the home. In
2010, it was 50%
305B coupons were distributed in the US in 2012 giving consumers access to
$405B in savings
Digital coupon savings rose 41% from 2009 to 2010
67M digital coupons are likely to be redeemed in the US in 2013
28% of coupons are used for food products
85% of families skip healthy purchases at the grocery store
because of price
28% of Americans don’t know how to cook
53% of Americans say they know less about cooking than
their parents
7% of Americans don’t cook
1 in 2 low income families are interested in learning
about cooking healthy meals
2 in 3 low income families are interested in
learning how to better budget their money for
meals
81% of Americans “cook what they
know”
30% of Americans say they love to cook
81% of low income respondents rate fresh produce as “extremely healthy.” That number
drops to 32% for frozen produce and 12% for
canned produce.
85% of low income parents say eating healthy meals is
important to their families
Digital coupon users spend 49% more per year than the average
shopper
25% of the US population is now using
digital coupons
Food and cooking
Budgets, coupons and
deals
67% of people start shopping on one device and continue to
another device (61% laptop, 4% tablet)
71% of shoppers want access to digital content in the store 53% of shoppers
expect greater price visibility via digital
channels
65% of shoppers research online and purchase in-store
Geo-targeted offers and push-notifications will
expand in 2013
Location based services will expand
to 1.4B users by 2014
Context-aware services are on the
rise
Tablets are now driving all growth in
the PC market
Going forward, most smart phone buyers will be older
and poorer
Trends in mobile and
apps
41% of Americans attempt to diet in a
given year
More than half of women say the high cost of healthy
food is a major driver of obesity, compared with just
37 percent of men.
Trends in retail and e-commerce
37% of smart phone owners used a mobile price search app while in a store (a quarter have left to buy the cheaper option).
The most popular recipe on Pinterest (Easy Garlic Chicken) has been pinned more than 1.6M times. The top 25 recipes on Pinterest have been pinned
more than 6.6M times
Health and diet
concerns
CUSTOMER & INDUSTRY INSIGHTS
7
28% of Americans say they don’t know how to cook.
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The most photographed foods are desserts,
vegetables and poultry dishes
25% of socially shared food
photography is simply to show off “what I ate
today”
22% of socially shared food photography documents something the user has
cooked and/or the cooking process they went through
Food is the #1 content category
on Pinterest
47% of women and 33% of men say they use social media as their primary source
for coupons 57% of Pinterest users interact with
food-related content
20% of kids in Australia think pasta comes from animals
49% of surveyed consumers learn about
food from social networks
Influence of social
channels and social sharing
12% of Wal-Mart’s online sales are made through their
smart phone app while customers are in the store
In 1900, 2% of meals were eaten outside the home. In
2010, it was 50%
305B coupons were distributed in the US in 2012 giving consumers access to
$405B in savings
Digital coupon savings rose 41% from 2009 to 2010
67M digital coupons are likely to be redeemed in the US in 2013
28% of coupons are used for food products
85% of families skip healthy purchases at the grocery store
because of price
28% of Americans don’t know how to cook
53% of Americans say they know less about cooking than
their parents
7% of Americans don’t cook
1 in 2 low income families are interested in learning
about cooking healthy meals
2 in 3 low income families are interested in
learning how to better budget their money for
meals
81% of Americans “cook what they
know”
30% of Americans say they love to cook
81% of low income respondents rate fresh produce as “extremely healthy.” That number
drops to 32% for frozen produce and 12% for
canned produce.
85% of low income parents say eating healthy meals is
important to their families
Digital coupon users spend 49% more per year than the average
shopper
25% of the US population is now using
digital coupons
Food and cooking
Budgets, coupons and
deals
67% of people start shopping on one device and continue to
another device (61% laptop, 4% tablet)
71% of shoppers want access to digital content in the store 53% of shoppers
expect greater price visibility via digital
channels
65% of shoppers research online and purchase in-store
Geo-targeted offers and push-notifications will
expand in 2013
Location based services will expand
to 1.4B users by 2014
Context-aware services are on the
rise
Tablets are now driving all growth in
the PC market
Going forward, most smart phone buyers will be older
and poorer
Trends in mobile and
apps
41% of Americans attempt to diet in a
given year
More than half of women say the high cost of healthy
food is a major driver of obesity, compared with just
37 percent of men.
Trends in retail and e-commerce
37% of smart phone owners used a mobile price search app while in a store (a quarter have left to buy the cheaper option).
The most popular recipe on Pinterest (Easy Garlic Chicken) has been pinned more than 1.6M times. The top 25 recipes on Pinterest have been pinned
more than 6.6M times
Health and diet
concerns
CUSTOMER & INDUSTRY INSIGHTS
8
50% of meals are now eaten out of the home (2010). In 1900 it was 2%.
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The most photographed foods are desserts,
vegetables and poultry dishes
25% of socially shared food
photography is simply to show off “what I ate
today”
22% of socially shared food photography documents something the user has
cooked and/or the cooking process they went through
Food is the #1 content category
on Pinterest
47% of women and 33% of men say they use social media as their primary source
for coupons 57% of Pinterest users interact with
food-related content
20% of kids in Australia think pasta comes from animals
49% of surveyed consumers learn about
food from social networks
Influence of social
channels and social sharing
12% of Wal-Mart’s online sales are made through their
smart phone app while customers are in the store
In 1900, 2% of meals were eaten outside the home. In
2010, it was 50%
305B coupons were distributed in the US in 2012 giving consumers access to
$405B in savings
Digital coupon savings rose 41% from 2009 to 2010
67M digital coupons are likely to be redeemed in the US in 2013
28% of coupons are used for food products
85% of families skip healthy purchases at the grocery store
because of price
28% of Americans don’t know how to cook
53% of Americans say they know less about cooking than
their parents
7% of Americans don’t cook
1 in 2 low income families are interested in learning
about cooking healthy meals
2 in 3 low income families are interested in
learning how to better budget their money for
meals
81% of Americans “cook what they
know”
30% of Americans say they love to cook
81% of low income respondents rate fresh produce as “extremely healthy.” That number
drops to 32% for frozen produce and 12% for
canned produce.
85% of low income parents say eating healthy meals is
important to their families
Digital coupon users spend 49% more per year than the average
shopper
25% of the US population is now using
digital coupons
Food and cooking
Budgets, coupons and
deals
67% of people start shopping on one device and continue to
another device (61% laptop, 4% tablet)
71% of shoppers want access to digital content in the store 53% of shoppers
expect greater price visibility via digital
channels
65% of shoppers research online and purchase in-store
Geo-targeted offers and push-notifications will
expand in 2013
Location based services will expand
to 1.4B users by 2014
Context-aware services are on the
rise
Tablets are now driving all growth in
the PC market
Going forward, most smart phone buyers will be older
and poorer
Trends in mobile and
apps
41% of Americans attempt to diet in a
given year
More than half of women say the high cost of healthy
food is a major driver of obesity, compared with just
37 percent of men.
Trends in retail and e-commerce
37% of smart phone owners used a mobile price search app while in a store (a quarter have left to buy the cheaper option).
The most popular recipe on Pinterest (Easy Garlic Chicken) has been pinned more than 1.6M times. The top 25 recipes on Pinterest have been pinned
more than 6.6M times
Health and diet
concerns
CUSTOMER & INDUSTRY INSIGHTS
9
20% of kids in Australia think pasta comes from animals.
INFLUENCING TRENDSThe web is disappearing. “As the web is increasingly integrated into our devices, we’re less aware of “going onto the internet” to access sites like Facebook. We’re just using Facebook.”
The physical and digital worlds are fusing.Increasingly with the proliferation of NFC and RFID technologies, embedded sensors, smart devices, geofencing and location-based services, the physical world is becoming a digital information system ripe for interaction with people, devices and other systems.
Every moment is a shopping moment. “In 2013 we’ll see significant growth in moments to shop fueled by technology — from the rise of ‘television commerce’ to ‘social media commerce’ and the maturation of ‘mobile commerce.’”
Enhanced transparency is critical.“[Brands need] to pick the right ways to interact with online consumers, manage these conversations appropriately, and make the best use of digital consumer data. Moreover, successful companies will need to enhance transparency and become more collaborative in their interactions with shoppers.”
Mobile payment technology is evolving.In 2013, 15% of all e-commerce purchases are projected to be made via mobile platforms.Social commerce is just emerging as the newest e-commerce vector.According to Gartner, the mobile payments market has the potential to reach $617 billion by 2016.
1010
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Authenticity and imperfection matter.Consumers seek authentic products and services, complete with natural patina. Heirloom tomatoes, purple potatoes, lumpy carrots and other natural looking foods have increasing appeal.
Real food, farm-to-fork and urban gardening are on the rise.
• Consumption of ancient grains like quinoa, amaranth, teff and chia continues to increase.• Hooftymatch, FoodHub, Market Mobile, Farmigo, Farm Fresh to You and other online marketplaces are emerging to connect consumers with
locally grown, locally sourced fresh foods and vegetable box delivery. These marketplaces are connected to the growing “locavore movement.”• Cities like Chicago, Portland and New York are embracing community gardens.
Wellness is increasingly important.
• 57% of people want support in their healthy living goals. • Baby Boomers will control just over half the dollars spent on grocery by 2015. Research shows this group deliberately thinks about how they eat
with 70% of Boomers seeking more fiber in their diet, 60% trying to consume less fat and cholesterol and 40% trying to eat less fried food.
Mindful living transforms the way people navigate eating, shopping and wellness.
• Consumers are becoming more concerned about the humane treatment (care, feeding, end-of-life practices) of the animals they eat.• “MovNat” is an exodus from gyms and a return to natural forms of exercise outdoor such as running, walking, climbing trees, balancing on rocks,
etc. It’s a direct affront to the sedentary lifestyle of many urbanites.• People are seeking coaching in all aspects of life: general wellness, life, finance, meditation, fitness — even breathing, sitting, communicating and
colon health.• Purposeful pleasure is deemed as more meaningful than instant gratification.
INFLUENCING TRENDS
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THE CUSTOMER CONTEXT
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CENTER OF THE CUSTOMER RELATIONSHIP
Today, one touch point lies at the heart of Kroger’s customer trust and loyalty — the store.
Digital offers an increasing number of touch points — each of which is an opportunity to amplify relationships and reach customers where they live, work and play.
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Today TomorrowTomorrow
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THE STORE EXPERIENCE IS COMPLICATED
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For many, grocery shopping is an exercise in logistics and scheduling.
Today, it requires a trip to the store — along with planning ahead, thinking about what’s needed and juggling time and money. And it’s not always pleasant or enjoyable.
When shopping looks like this, who wouldn‘t want a little help?
Sleeping baby taking up most of the shopping cart
Groceries piled high
List & pen in hand
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THE CUSTOMER JOURNEY IS...
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THE CUSTOMER JOURNEY IS...
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of Americans rank grocery shopping as their most time-consuming chore...
66%
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THE CUSTOMER JOURNEY IS PHYSICAL
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BEHAVIORAL INFLUENCES
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Digital Engagement
Digital Shopping Behaviors
Blur between shopping specific behaviors & other
digital behaviors
Brick & Mortar ShoppingBehaviors
Conflict between online & offline spending patterns
Interaction differences between physical and
digital
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THE CUSTOMER JOURNEY IS AN OPPORTUNITY
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Every phase of the journey is a chance for Kroger to amplify customer relationships.
Breadth of journey
Dep
th o
f jo
urne
y
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CUSTOMERS NOW EXPECT OMNI-CHANNEL EXPERIENCES
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Shoppers are no longer loyal to an individual channel but rather to experience across channels . . . they expect the seamless integration of the online, physical and mobile shopping experience by 2014.
Digital Shopper Relevancy Report — Capgemini
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IN-STORE
DELIVER SHIP
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For customers, this results in saving time, saving money and achieving success with personal goals.
THE ROLES OF KROGER’S DIGITAL CHANNELS
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For Kroger, this results in increased spend, share of wallet and loyalty.
An omni-channel approach to digital throughout the customer journey will...
DriveAwareness
CreateEngagement
AmplifyRelationship
DeepenLoyalty
ImproveCustomer
Understanding
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THE DIGITAL RELATIONSHIP LOOP
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Deepening digital relationships with customers is first about the exchange of value, ultimately leading to greater market share and the exchangeof money.
Insights“What”
RELATIONSHIP LOOP
Location Dialogue“Where”“How”
“Why”
Deepening digital relationships with Kroger
is more about the exchange of value,
leading to the savings of time and money.
Momentsof Truth
VALUE
“When”
THANK YOU