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The New Era Digital Store: !Expectations, Insights and Consumer Individuality
featuring
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Jason WallisChief Technology Officer, Mozu
Adam serves eBusiness & Channel Strategy Professionals. His research focuses on eBusiness strategy, technologies, solutions and operations, including eCommerce platforms, mobile commerce and in-store commerce technologies.
Adam SilvermanPrincipal Analyst, Forrester Research
Jason Wallis, CTO, brings almost 20 years of experience to Mozu and is responsible for driving the next generation of the commerce platform.
The New Era Digital Store: Expectations, Insights and Customer Individuality Adam Silverman, Principal Analyst
July 28th, 2015
@AdamKSilverman
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
“The pace of change is accelerating faster than anticipated a year ago.”
Blake Nordstrom, President of Nordstrom
April 2014
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Mobile connects us wherever we go
Base: 38,146 US online adults (18+) who personally use a smartphone to go online *Base: 23,511 US online adults (18+) who personally use a tablet to go online Source: Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2014
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Mobile connects us wherever we go
Base: 38,146 US online adults (18+) who personally use a smartphone to go online *Base: 23,511 US online adults (18+) who personally use a tablet to go online Source: Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2014
© 2015 Forrester Research, Inc. Reproduction Prohibited 8
Agenda
› The Emergence Of The Connected Customer › How Digital Technology Creates
Opportunities In Retail › Recommendations
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Where the transaction occurs is irrelevant
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of store sales are influenced online
52%
Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, The State of Retailing Online 2015. Base: 41 retailers. media.pathfinder.gr/cman_img_f/9549445219531437587.jpg
98% of guests shop digitally
Source: http://www.mytotalretail.com/article/inside-targets-digital-revolution/
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73% - expect to click and collect 86% - expect to return online orders in the store 89% - expect to view the in-store inventory of products online
Customers have high expectations when it comes to channel integration
A commissioned Forrester study with Purolator, May 2014
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won’t buy in-store 1/4
Source: North American Technographics Retail Survey 2013
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In the PAST 3 MONTHS, have you used your cell phone for any of the following while shopping in a physical store
Source: North American Consumer Technographics Retail Survey, 2015 Base : N=4,328 US Online Adults 18+ (Weekly or more) who are cell phone users
Customers research product in-aisle
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Digitally enabled associates add value
Forrester’s North American Consumer Technographics Retail Survey, 2014
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In-store data capture has skyrocketed
Sources: RetailNext
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of enterprise data in used for analytics
12% Only
Sources: Forrester’s “The Forrester Wave: Big Data hadoop Solutions, Q1 2014” report
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45% of consumers have chosen, recommended, or paid more for a
brand that provides a personalized service or experience
Sources: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2014
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Personalization is coming to the retail store
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
Agenda
› The Emergence Of The Connected Customer › How Digital Creates Opportunities
In Retail › Recommendations
Digital Technologies Create Opportunities In Retail By:
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1. Enabling new insights
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2. Optimizing profitability
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3. Empowering employees
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4. Improving service levels
Promises delivery two full
days quicker than before
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Source: POPAI
82% make purchase
decisions in-aisle 5. Influencing sales
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6. Bridging the physical with the digital
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7. Personalizing the shopping experience
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Four Key Barriers Hold Back Innovation
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Poor store connectivity prevents modern retail apps from being effective
#1
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Retail store systems are focused on record keeping and not engagement
#2
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Existing systems can’t provide real-time data insights across all channels
#3
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Retail teams are still siloed
#4
The Digital Store Platform Emerges
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Agenda
› The Emergence Of The Connected Customer › How Digital Creates Opportunities
In Retail › Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 37
Your Roadmap To Building Your Future Retail Store:
1. Expose inventory visibility 2. Focus on the customer – align teams and create a single view 3. Optimize customer and staff mobile experiences 4. Prepare for real time data driven business – online & stores 5. Find ecosystem partners & build new business models 6. Build your digital store platform – centralize commerce and DX
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You can drown in the !Wave of Accelerating Change!
• Mobile Adoption • Inventory Visibility • Blended Channels • Mobile and In-store POS • Social Trends • Empowered Associates • Multiple Platforms
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Or you can ride it!!
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Consumer Behavior Forever Changed with the Launch of the iPhone
1990s ECOMMERCE "IS BORN Early vendors "supplied the basics "of ecommerce: "listing products and accepting payments
2000s MOBILE RISES Mobile devices forced retailers to maintain both traditional and mobile-friendly sites
2010s MULTI-CHANNEL EXPLODES Proliferating sales channels require retailers to create a seamless experience both on- and offline
TODAY LIMITLESS COMMERCE Today’s business is truly omni-channel, requiring a modern platform that provides limitless extensions
2007 IPHONE ARRIVES The invention of the iPhone and rapid adoption of mobile devices transforms the world of online shopping
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Mozu | The Cloud Commerce Platform
Connected Digital Experiences
• Natively responsive and adaptive design • Unmatched Site Speeds • Personalization with customer segments • Smart searching using SOLR • Lookbooks and product clustering • Streamlined checkout
Empowered Marketing Teams
• Fully integrated CMS • Drag and drop widgets • Extensive promotions • Site builder • Order management • Master catalog across sites • Robust transaction and customer
reporting • SEO optimized
Innovative Technology
• Open API • Unlimited dev sandboxes • Open source SDKs • True multi-tenant SaaS • Hypr theme engine • Custom widget development • Application development • Unmatched multi-layer security • 99.9% uptime guarantee • App marketplace
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Consistency Across Devicesü Consistent shopping across all devices is key
ü Shoppers want the ability to begin shopping on one device and end on another or in-store
ü Building, managing and maintaining separate sites for different devices is a thing of the past
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Providing Convenience for Customers
ü 51% of customers used mobile to check in-store availability and 24% reserved a product for in-store pick-up
ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store
ü Empower sales associates in stores to aid in product discovery and decision making
ü 51% of customers use mobile to check in-store availability and 24% reserve a product for in-store pick-up
ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store
ü Retailers should empower sales associates in stores to aid in product discovery and decision making
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Streamlined Content Management
MASTER CATALOG
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Embrace Ecosystems of Change
In-store
Online
Optimize Profitability Unified digital experience Improve Service Faster time-to-market
Modern Technology Stack
Native Mobile
Responsive Theme
REST API
SaaS
Business Critical Applications
Commerce
Fulfillment
ERP
POS
Commerce solutions built on a flexible SaaS platform are setting a new standard for performance and innovation
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CUSTOMER EXPERIENCE
Stores, Kiosks Call Centers
Mobile, Tablet, PC’s
COMMERCE MANAGEMENT
REST APIMulti-Tenant SaaS
MOZU DEV CENTER
Theme Development
Widget Development
APP DEVELOPMENT Native App
Integrations
Catalog
Reports
Customers Orders
Publish
Locations
Marketing Site Builder
SDKs Hyp
r The
me
Engin
e
Applications
Mozu Platform
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Jelly Belly Experiences Sweet Growth
48
Challenges!• Replace homegrown system • Focus on expanding online sales • One platform for B2C, B2B and consolidated
content sites WW
Solutions!• Cost efficient SaaS platform • Consistent experience across mobile • Scale operations with master catalog • Empower eBusiness team to quickly update
products, promotions and content
Results!• Mobile revenue increased from 2% to 32% • Record sales the week after launch • Happy eBusiness team
“Migrating from our homegrown platform to Mozu has given Jelly Belly the power and agility to innovate.”
Brandon Finch—Director of eBusiness, Jelly Belly
+
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Sigma Beauty. Beautiful eCommerce.
“We knew we needed an enterprise level platform that would accommodate our growing needs. That was the most important strategic decision. Going
into the project, we felt nervous but were confident in our partners”Annie Westman—Director of Strategy
+
Challenges!• Engage a younger demographic • Limited mobile experience • Wanted to develop custom features
Solutions!• Face Chart: Visual showcase of cosmetics on
virtual face • Free gift with purchase: personalized and
segmented gifts with different purchases • Dynamic pricing: unique catalogs and price lists
across customer segments • Responsive mobile sites
Results!• Unique experiences that disrupt the market • Marketing is now empowered to create custom
digital experiences • Consistent, engaging experiences across
devices including mobile
36% 42% 22% LIFT IN CONVERSION RATE INCREASE IN MOBILE SALES BOOST IN TIME ON SITE
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