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Page 1: Connected Retail

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CONNECTED RetailTHE FUTURE OF THE IN-STORE EXPERIENCECharles SayersExperience [email protected]

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There’s a blurring of the lines happening between

The physical and the virtual

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IN-STORE RETAIL USED TO BE

SIMPLE

BuyBuyAwareness Familiarity Consideration Preference Loyalty

BUYING WAS A LINEAR EXPERIENCE

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IT USED TO BE

CLEAR

THE ROLE OF A STORE WAS TO PUT PRODUCT INTO THE HANDS OF THE CUSTOMER

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IT USED TO BE

EASY

DRIVE STORE TRAFFIC. STOCK THE SHELVES. ACCEPT PAYMENT.

! + +

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E-COMMERCE IS GROWING AT 20% PER YEARTRADITIONAL RETAIL IS GROWING AT ABOUT 3%

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$16 Billion $210 Billion $29 Billion $298 Billion

SOURCE: Forrester Research Online Retail Forecast, 2012 to 2016 (US)

FOUR YEARS FROM NOW, IN-STORE WILL STILL COMPRISE MORE THAN

90% OF ALL RETAIL SALES

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TO MEET THE EVOLVING EXPECTATIONS OF THE OMNICHANNELING CUSTOMER

RETAILERS HAVE BEGUN FIGHTING TO RETAIN RELEVANCE

Replacing print signage with digital displays

Installing self-service check-out

Adding price and coupon scanners

Offering touch-screen way-finding and registry

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RETAILERS ARE IMPLEMENTING

INNOVATIVE TECHNOLOGY IN TRADITIONAL WAYS

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THEY’RE FOCUSING THEIR APPROACHES ON THE WRONG

CONSUMER DRIVER

acquisitionONLINE

interactionIN-STORE

VS.

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IN-STORE

IS NOTAN ONLINE EXPERIENCE

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CONNECTED RETAILOFFERS RETAILERS THE OPPORTUNITY TO DIGITALLY – ENHANCE

THE STORE’S FOUNDATIONAL STRENGTHS

► Immediacy

► Convenience

► Control

► Collaboration

► Sensory Interaction

► Guidance

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CONNECTED RETAIL

IN-STORE EXPERIENCEVIRTUAL PHYSICAL

Fully integrated, digitally enhanced, in-store experiences that engage customers at the intersection of the virtual and physical world.

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IN-STORE EXPERIENCE

ENVIRONMENT

CUSTOMER

PRODUCT ASSOCIATE

BREAKTHROUGH INNOVATIONSWILL EXPLOIT THE UNIQUE ADVANTAGES OF THE PHYSICAL STORE

ENVIRONMENTSthat inspire, adapt, curate and evolve in real time

PRODUCTSthat do more than simply sit on a shelf, but feature augmented packaging and digitally enhanced merchandising that can be activated and viewed through consumer-controlled devices

ASSOCIATESwho are brand experts, equipped with mobile-based, collaborative tools and access to consumer and inventory information

CUSTOMERSwho are given free reign to connect to virtual and in-store data that can be mashed, customized and socially shared while still shopping in-store

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TRENDING EXAMPLES

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APPLE HAS A FULLY INTEGRATED

CONNECTED ECOSYSTEMApple orchestrates every aspect of the end-to-end ‘Apple experience’across every touch point to become the world’s leading retailer (driving sales per square foot over $6,000)

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LENS CRAFTERS LEVERAGES

CONNECTED PRODUCTSLensCrafters has deployed a “Magic Mirror” that allows customers to scan physical products and see what they might look like on their reflection in the mirror – perfect for customers who can’t see without their original glasses on.

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NORDSTROMS WAS SURPRISED BY

CONNECTED SHOWROOMINGNordstrom introduced an app in the fall that executives expected people would mostly use remotely to order items while they were watching TV or waiting for a train. But in addition, customers use the app while shopping at Nordstrom rather than approach the sales staff.

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ADIDAS HAS CREATED A

CONNECTED ENVIRONMENTAdidas recently launched digital product displays that are tightly integrated with physical product displays. This allows on-line only inventory to have a visible place within the store environment.

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WAL-MART HAS INTRODUCED A DYNAMICALLY CONTROLLED

CONNECTED AISLESWal-mart has embedded CMS-driven messaging through its in-aisle experiences, which is generating a viewership of 120 to 130 million per month. That’s the fifth highest video viewership behind NBC, ABC, CBS and Fox.

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LEGOS LET’S CUSTOMERS SEE THE FINISHED FUN WITH

CONNECTED PACKAGINGLegos shows kids and parents what the final Lego product in the box they are holding will look like when built. No code required, the system uses image recognition to create a 3D animation around the top of the box that, with gesture recognition, let’s customers carry the model in their hands.

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MARKS & SPENCER HAS CREATED

CONNECTED EXPERIENCESMarks & Spencer has recently launched a magic mirror fitting room that comes to life when RFID-enabled products are tried on. The fitting room blends digital content and sales associate tools with the physical product and fitting room environment to create a fully-enabled connected experience.

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A CONNECTED EXPERIENCE FULFILLS TWO

ORGANIZING OBJECTIVESAT THE POINT OF ENGAGEMENT

BUSINESS OBJECTIVE

What is the business problem we’re trying to solve or the opportunity we’re trying to take advantage of?

SHOPPER DESIRE

What will motivate shoppers to engage the experience in-store?

ENVIRONMENT

ASSOCIATE PRODUCT

SHOPPER

IN-STORE EXPERIENCE

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A CONNECTED EXPERIENCE

CREATES A REASONTO ENGAGE IN-STORE

ENVIRONMENTWhat will draw the shopper’s attention to the experience within 3 seconds of crossing the threshold?

How should it relate to the rest of the in-store environment?

How will it remain dynamic and fresh to avoid desensitization?

ASSOCIATEWhat will the role of the Associate be in the experience?

What is the experience for the Associate ?

PRODUCTHow will we enable product interaction?

How will shoppers interact with products in-context?

How will in-experience products relate to in-store inventory?

Where/when will transactions take place?

SHOPPERWhat is the singular action we want shoppers to take at the end of their experience?

What elements of the experience can they retain and share using their personal technology?

What will make the experience relevant and memorable after they leave the store?

ENVIRONMENT

ASSOCIATE PRODUCT

SHOPPER

IN-STORE EXPERIENCE

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IN-STORE EXPERIENCE

A CONNECTED EXPERIENCE IS

LOCALLY CONNECTEDWITHIN THE STORE

local

ENVIRONMENTHow will local messaging be introduced and maintained?

ASSOCIATEHow will Associates access information about extended SKUs?

How will the experience adapt to localized inventory?

PRODUCTHow will products reflect in-store exclusivity, pricing or shipping options?

SHOPPERHow will the experience adapt to preferences expressed within other channels?

How will shoppers be enabled to share their experience at the point of impulse?

How will shoppers be rewarded within the experience?

ENVIRONMENT

ASSOCIATE PRODUCT

SHOPPER

IN-STORE EXPERIENCE

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A CONNECTED EXPERIENCE CAN BE

ACCESSED AND SHAREDBEYOND THE STORE

ENVIRONMENTWhat elements of the experience will be standardized across locations?

ASSOCIATEHow will Associates be supported with a “single view” of the shopper?

PRODUCTHow will consistency of product information be maintained?

SHOPPERHow will loyalty be rewarded across all Beyond experiences?

How will shoppers be alerted to enhancement and/or changes to the experience?

ENVIRONMENT

ASSOCIATE PRODUCT

SHOPPER

IN-STORE EXPERIENCE

localglobal

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THERE MUST BE A

CONNECTING POINTAT THE CENTER OF EVERY IN-STORE EXPERIENCE

localglobal

account information

product information

service information

promotional messaging

social sharing

account history

local community

localized messaging

market segmentation

registries

personal preferences

local inventory

extended aisles

universal SKUs

local promotions

behavioral targeting

loyalty rewards

mobile apps ENVIRONMENT

ASSOCIATE PRODUCT

SHOPPER

IN-STORE EXPERIENCE

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► Fundamental consumer behavior hasn’t changed;its just become more enabled

► Expectations are being defined and reshaped by every moment of interaction

► In-store engagement must connect customers to richer, omni directional experiences – that leverage the store’s unique strengths

► Connected Retail is the opportunity to connect consumers to more at the point of virtual and physical engagement

CONNECTED RETAILSOME FINAL THOUGHTS

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THANK YOU!


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