how digital transformation is changing retail payments · sucharita kodali discussion: how digital...
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AN EXCLUSIVE RETAILWIRE WEBINAR, SPONSORED BY:
How Digital Transformation is Changing Retail Payments
George AndersonEditor-in-Chief, RetailWire
George Anderson has extensive executive-level experience in editorial, marketing and sales in the advertising, retail/wholesale and print, video and digital media industries.
Mr. Anderson has served as the editorial voice of RetailWiresince the site's founding in 2002 and has been interviewed by a wide variety of media outlets including the Charlotte Observer, Providence Journal, MarketWatch, NPR, Wall Street Journal Radio and others.
Previously, Mr. Anderson served as president and creative director of the IdeaBeat Creative division of IdeaBeat.com. His experience includes eight years with Progressive Grocer Associates/Maclean Hunter Media, where he held a variety of marketing services and sales management roles.
Moderating
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Presentation:
The Changing Customer and Technology Landscape• Sucharita Kodali, Principal Analyst, Forrester
Presentation:How Digital Transformation is Changing Retail Payments• Frank Maduri, VP, Global Sales and Business Development, Rambus
Panel Discussion:• Sucharita Kodali, Forrester• Frank Maduri, Rambus• George Anderson, RetailWire
Audience Q&A
Today’s agenda
Sucharita KodaliPrincipal Analyst, Forrester
Sucharita serves digital business strategy professionals. She is an expert on eCommerce, omnichannel retail, consumer behavior, and trends in the online shopping space. In her research, Sucharita covers such consumer-oriented topics as eCommerce forecasting and trends, merchandising best practices and conversion optimization.
Prior to Forrester, Sucharita was the director of marketing at Saks Fifth Avenue, where she managed the customer acquisition, retention, and market research efforts for the $2 billion luxury retailer's online channel. Prior to Saks, she held management positions at Toys R Us and the Walt Disney Company. Sucharita holds a B.A. in economics from Harvard University and an MBA from the Stanford Graduate School of Business.
Featured presenter
© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
The Changing Customer and Technology Landscape
Sucharita Kodali, VP & Principal Analyst
3© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Mobile matters more than ever
4© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Mobile metrics
Mobile traffic Mobile sales Mobile growth
46%49%
5%
Desktop Mobilebrowser
Mobile app
64%
32%
4%
Desktop Mobilebrowser
Mobile app
8%
36%
16%
Desktop Mobilebrowser
Mobile app
What percent of total online SALES
come from desktop, mobile browsers and your mobile app?
What percent of total online TRAFFIC
come from desktop, mobile browsers and your mobile app?
Please enter the percentage of YOY
sales growth from desktop, mobile
browsers and your mobile app?
5© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Shoppers shop across screens and devices
6© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Mobile commerce as a % of total eCommerce
21%
28%
31%
28%
43%
37% 36%
33%
2013 2014 2015 Q4 2015 2016 Q4 2016 2017 Q4 2017
Source: Forrester/Shop.org State of Retailing Online Studies; Adobe Holiday Digital Index
Percent of total online retail sales revenue that were purchased on mobile devices
7© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Most shoppers shop on mobile devices
How often do you purchase physical goods on a mobile phone?
10% 10%
15%
21%
39%
5%5%9%
14%
19%
41%
11%
Daily Weekly Monthly At least monthly Never Do not use amobile phone
2016 2017
Source: Consumer Technographics North American Online Benchmark Survey (Part1), 2016-2017
8© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
This will drive more multiscreening than ever
Where do you use [your smartphone] to access the Internet?
60%
64%
64%
63%
66%
66%
67%
68%
48%
50%
51%
52%
52%
52%
53%
57%
While traveling
Restaurant/coffee shop
Friend or relative's house
Bedroom
In the car
In stores (while shopping)
Outdoors
Living room
2017 2014
25%
29%
35%
43%
45%
50%
52%
55%
21%
25%
32%
34%
35%
41%
42%
46%
School
Library
Home office
On public transportation…
On my daily commute
Bathroom
Work
Kitchen
Source: Forrester Consumer Technographics
9© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Security is a challenge for shoppers
10© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Security still matters for many shoppers
Base: 1,311 online consumers who do not purchase on mobile phones
Source: Forrester Consumer Technographics Q3 2017 (Retail and Travel Recontact) and 2018
Why don't you use your mobile phone to purchase products/services (using app or browser)?
22%
30%
30%
51%
21%
31%
35%
51%
I don't want to use up my data for shopping
I don't feel safe using mobile payment services
The screen on my mobile phone is too small
It's easier to make a purchase on a computer than on amobile phone
2018
2017
11© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Universal checkout is coming
12© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Consumers value selection…
Source: Forrester Consumer Technographics, 2015, Q3 2017 and 2018*In 2015, statement was phrased “I save time by shopping online”
67%
65%
63%
72%
69%
61%
72%
59%
59%
I find products online that I cannot findanywhere else
Shopping online is more convenient thatshopping offline*
I find better values and deals online
2015
2017
2018
% of online consumers agreeing with statement (5 point scale)
13© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
…and often prefer a single checkout online
Example: Google Shopping Actions45% of online consumers (and
61% of consumers 25-34) agree
with the statement: “I would like to
be able to shop online from
multiple retailers on a single
website or app”
Example: Lyst
14© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Micropayments are an opportunity
15© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
16© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
eCommerce is growing around the world
17© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
eCommerce is growing around the world
$862
$459
$272
$1,426
$713
$464
Asia Pacific US Europe2017 2022
Source: Forrester eCommerce forecasts
eCommerce Sales (US$B)
% of
Total
16% 22% 13% 17% 10% 14%
18© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Summary
› Mobile matters more than ever
› Shoppers shop across screens and devices
› Security is a concern for shoppers
› Universal checkout is promising
› Micropayments are an opportunity
› eCommerce is growing around the world
FORRESTER.COM
Thank you© 2018 FOR R ESTER . R EPR OD U C TION PR OH IBITED .
Sucharita Kodali
Twitter: @smulpuru
Frank MaduriVP, Global Sales and Business Development, Rambus
In his role with Rambus, Frank Maduri works with key stakeholders including retailers, banks, card schemes and Fintech companies to create innovative experiences that will transform retail and e-commerce.
Frank's wealth of experience includes 20 years in the mobile, payments, e-commerce, media and social messaging industries. He has held senior roles in companies such as Rogers Wireless, Bell Mobility and BlackBerry. He has also led two start-ups: Fastvibe (streaming media) and Mint Technology (mobile payments), and has pioneered and successfully introduced a number of innovations, such as mobile point-of-sale, mobile wallets, peer-to-peer payments and contactless payments.
Featured presenter
Webinar:How Digital Commerce is Changing Retail Payments
Presenter:
Frank MaduriVP of Business Development
Rambus
June 27, 2018
2
40% of retailers see a personalized customer
experience as their top priority (Source: Accenture)
Shoppers Expectations are Changing Quite Dramatically
Long queues cause UK businesses to lose 21 million
customers a year (Source: YouGov)
I like the ease of earning, c o llectingand redeemingpoints, and the variety of
rewards offered. The value o f the points is very good.
I can redeem w h enever I like.
Consumer desire for real-time redemption of loyalty driving
experience(Source: An Eagle Eye Industry Report, Dec 2017)
3
Consumers Demanding More Convenient Ways to Shop
Home Delivery Mobile Order Ahead
Scan & GoMobile Pay @ Pump
Click & Collect
Mobile Pay @ Table
Mobile Pay, Loyalty & Voucher
Amazon Go
4
Scan & Go Being Considered by Many Global Merchants
5
Scan & Go Redefines Self-Checkout to Let you Jump the Queue
Home Screen Scanner Cart Mix & Pay Digital Receipt
Existing user enters store and opens app
User opens scanner and begins scanning items
User given option
to mix card payment with loyalty points for real time redemption experience
User checks out, receives digital receipt and payment notification
User taps Pay button
6
Increase Capacity:Customer mobile devices >>“Bring your own POS”
Build Relationships:Better data and personalization >>Increased loyalty
Captivate Customers:Engagement vs. Showrooming >>
Upsell & cross sell
Driving Retailer Benefits
7
New Shopping Experiences are Driving “Remote Payments”
Key Considerations:
• Security – transition to cloud increases vulnerability of transactions
• Cost – card not present fees drive need for alternatives
• Conversion – app fatigue & checkout abandonment need to be addressed
MobileEMV Card Cloud
8
Security
Tokenization Secure Remote CommerceAuthentication
9
Cost
Card-not-present fees drive demand for low-cost alternatives API
e.g. PSD2 (Europe)Bank 1
API
Bank 2
API
Bank 3
API
PISP
Other:- ”Real-time” ACH- Account to Account- RTP
10
Conversion
?
Retailers need to consider other options
• Aggregator Apps• Marketplace• Universal Checkout
11
Digital commerce is changing the retail experience
• High consumer expectations
• Better in-store experiences
• Considerations to optimize conversion, security and cost
12
Thank You
Sucharita KodaliPrincipal Analyst
Forrester
Frank MaduriVP, Global Sales and
Business Development Rambus
Discussion: How Digital Transformation is Changing Retail Payments
Audience Poll Question #1
Which of the following is important to consumers for accelerating mobile payments within retail?
Sucharita Kodali
Discussion: How Digital Transformation is Changing Retail Payments
Question #1:Dollar General is the latest big chain to roll out scan & go capability for its shoppers. Walmart, on the other hand, discontinued its second scan & go test due to low adoption rates.
Is scan & go more viable for certain types of retailers? What are the keys to getting enthusiastic consumer adoption?
Frank Maduri
Sucharita Kodali
Discussion: How Digital Transformation is Changing Retail Payments
Question #2:The autonomous checkout technology being used at Amazon Go stores and in development by Microsoft saves consumers the trouble of scanning products as they shop.
Compare the pros and cons of this solution vs. scan & go.Will autonomous checkout have broad appeal among retailers?
Frank Maduri
Sucharita Kodali
Discussion: How Digital Transformation is Changing Retail Payments
Question #3:
How real is the promise of universal checkout? With all of the parties vying to establish the dominant platform, how do you see the competition resolving?
Frank Maduri
For more information
For RetailWire:
Al McClainCEO, [email protected](561) 627-4974www.retailwire.com
For Rambus:
Frank MaduriVP, Business [email protected](416) 721-4555www.rambus.com
For Forrester:
Sucharita KodaliTwitter: @[email protected]