selling like a retailer: what airports need to know · hospitality, logistics and governmental...
TRANSCRIPT
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Adam Barringer Airport Business Development Manager, NCR Travel
Michael J. Boyd, CITP Partner, Professional Services, NCR Travel
Selling Like a Retailer:
What Airports
Need to Know
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April 24, 2014
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Today’s Presenter
Michael J. Boyd, CITP is the Professional Services Partner at NCR Travel, where he
is responsible for the NCR Travel Marketplace, Omni-channel Retailing and
Consumer Experience Consulting solutions.
During his career at NCR, Mr. Boyd has been focused on making travel easier for
passengers - from mobile boarding passes and self-bag tagging initiatives to
proactive service recovery and IRROP solutions. Prior to joining NCR, Mr. Boyd
directed the operations and analytics at a mobile media company in New York City
and led the Global Professional Services team at Progress Software serving travel,
hospitality, logistics and governmental clients.
He holds multiple advanced degrees and industry certifications and has spoken
extensively on travel operational efficiency, business transformation, project
management and service-oriented architecture technology.
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“A main issue for airports is the limited shopping time travelers have, but if retailers offer a pre-flight shopping service online, shoppers can take their time browsing, which helps to boost spend.”
- Verdict, Global Airport Retailing 2014
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The Consumer
Gap
Exceptional experiences
CONSUMER DEMANDS
5
00 Profitable
growth
BUSINESS IMPERATIVES
CONSUMER TRANSACTION
TECHNOLOGIES
. . . delivered through integrated software,
hardware and services
The Four
Retail
Megatrends
The Consumer Experience Gap
NCR Confidential – © 2014 - All Rights Reserved
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6
4. Seamless user
experience
1. Self Service
2. Mobility
3. Merchandizing
The Retail Megatrends
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Trend 1. Self Sevice
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8
...70% of consumers say they
don’t have enough time1
61% willing to shop in a
completely automated
store2
52% prefer self check-out
stations in order to avoid
waiting in line3
they want easy payment options and shorter lines
Trend 1. Self Service ‘THE STORY’
Sources: 1. www.worldwidebrands.com
2. Cisco Customer Experience Report for Retail, 2013
3. Forrester Top 15 trends in Customer service, 2013
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9
Walmart: saving 1 second at checkout
leads to $12M in annual savings1
Trend 1. Self Service ‘RETAIL OPPORTUNITY’
Self service checkouts provide2...
Source: 1. NCR
2. NCR 2012 SelfServ Checkout TechValidate Retailer Survey
Up to
150 labor hours
reduced/redeployed
per week
Up to
40% line reduction
20% throughput increase
7% revenue increase per
labor hour due to labor
redeployment back into
the store
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10
Customers don't want to talk to anyone
until they board the plane
Trend 1. Self Service ‘WHAT IT MEANS TO YOU’
Touch screen
shopping at airport
Make it easier
to buy
Self service
at all touchpoints
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Trend 2. Mobility
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Trend 2. Mobility
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86% Will pay more for a better experience …and yet
Trend 2. Mobility ‘THE CONSUMER STORY’
$1.3T anticipated mobile
payments by 2017 1
32% of shoppers feel it's easy or very
easy to shop on a mobile device
compared to 70% online and 91%
in store.
82% of people describe their
customer experiences as taking
too much effort
Sources: 1. Juniper Research
2. RightNow, Annual Customer Experience Impact Report
3. Accenture Seamless Retail Research, 2013
4. Oracle 2012 CX Index Report
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Trend 2. Mobility ‘RETAIL PERSPECTIVE’
1
3
Mobile adoption trends include...
Top IT Retail Challenges:
47% Application
integration 4
129% year-over-year smartphone sales increase… and 178% from tablets…2
156% Increase in mobile “showrooming”. 3
45% Develop mobile apps
that empower customers 4
2014 Retail Industry Top Priorities #1:
Advanced CRM/Loyalty1
Sources:
1. RIS Store Systems Study 2014, Jan. 2014
2. Forrester ‘State of Online Retailing Marketing & Merchandising, 2013
3. Vibes Mobile Consumer Report, Oct. 2013; 4. RIS / Gartner – 2013 IT Retail Top Challenges
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Trend 2. Mobility ‘WHAT IT MEANS FOR YOU’
Mobile Strategy needs to include:
• Increased engagement to know your customer
• Platform for interaction to make it easy to buy
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Trend 3. Merchandizing
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Trend 3. Merchandizing
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...Customers want a more
personalized experience
53% want unique pricing,
deals and discounts
based on loyalty and
purchase history
45% want their account to be
completely connected
online and in-store
Trend 3. Merchandizing ‘THE STORY’
Source: Accenture Seamless Retail Research 2013
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Trend 3. Merchandizing ‘THE STORY’
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Trend 3. Merchandizing ‘RETAIL PERSPECTIVE’
Shopping cart abandonment rates average 68% in 2013 1
But a 10% improvement in abandonment, can give you a 30% improvement in revenue 1
Which is why retailers are investing heavily in the following ways2:
72% Product detail enhancement:
62% Recommendations and
personalization:
47% A/B Testing:
43% Omnichannel integration:
28% Site search and site navigation
enhancement:
Sources: 1. Baymard Institute, Dec 2013
2. Forrester ‘State of Retailing Online 2013’
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Trend 3. Merchandizing ‘WHAT IT MEANS TO YOU’
Focus investment
on your digital
presence
Unique and exclusive
content
Personalized
pricing and
discounts
Right place,
right time
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Trend 4. Seamless Experience
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Trend 4. Seamless Experience ‘THE STORY’
73% want the flexibitliy
to pay
anytime/anywhere
48% Think integrated
stores/online/
mobile is where
retailers need to
improve most
85% would like to
gather loyalty
points or savings
as they shop
based on current
promotions
78% would like to be
offered out of
stock items for
home delivery.
Source: Accenture Seamless Retail Research 2013
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Trend 4. Seamless Experience ‘RETAIL OPPORTUNITY’
“I think we can attribute all the market-
share gains in the U.S. to “Just for U” Steve Burd, Chairman & CEO, SAFEWAY
6 elements of the
seamless experience: 1.
Consistent
experience
2.
Connected
shopping
3.
Integrated
merchandizing
4.
Flexible
fulfillment &
returns
5.
Personalized
interaction
6.
Better, faster
& memorable
Source: Accenture Seamless Retail Research 2013
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Trend 4. Seamless Experience ‘WHAT IT MEANS TO YOU’
Align the experience
over the entire
passenger journey
Loyalty points for all
purchases and
personal offers at the
right time
Invest in bringing
disparate systems
together
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Self Service Customers not only welcome automation, they demand it!
Mobility Look at new technology and steal the initiative.
Merchandizing Personalize travel offers
for the individual and their location in the trip lifecycle.
Seamless User Experience Travel is stressful enough.
Work with your partners to build consistent experiences
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WHAT IF WE COULD…
Interact with them
before, during and
after their journey
Monitor the revenue
flow at every point
in the traveller
journey
Add the ability
to target and reach
those passengers
Incent the
passenger to
spend more during
their trip?
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60% of travellers are likely to redeem coupons for a meal, coffee, spa treatment or other airport services if they are delivered to their mobile while at the airport
Pax Retail Behavior While Travelling Why would you NOT take advantage of
entertainment options at the airport?
Source: NCR Travel Consumer Research Surveys, 2011-2014
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Across The Whole Passenger Journey
But today we
only market here!
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Consolidated
inventory
management
Managed transaction
/ payment processing
Multi-channel
distribution Integrated analytics
Unified Passenger /
Consumer View
Travel Supplier
MARKETPLACE
Reve
nu
e S
trea
ms:
Pro
du
cts
& S
erv
ice
s to
Se
ll
Om
ni-C
han
ne
l: Mu
ltiple
Wa
ys
to S
ell
NCR Travel Marketplace
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INTERACTIVE
ADVERTISING CHANNEL
MARKETPLACE
SHOPPING CART
OMNI-CHANNEL OPTIONS
NCR Travel Marketplace
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Transferring Digital Currency, Offers, and Rewards from Digital Signage to a Mobile Device
Measuring each offer’s
Effectiveness
SAVE
The traveler opts-
in to offers by
saving the
received offer to
their digital wallet.
WALLET
The traveler can
view all of their
offers within the
digital wallet to
share or redeem.
REDEEM
The traveler can
immediately
redeem offers at
retail locations
within the airports
and throughout
their journey.
CATCH!
The traveler views
the digital signage
advertisement and
uses the mobile
application to
CATCH the
promoted offer.
Interactive Ad Technology
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How to connect
digital content to
a passenger’s
mobile to make
the transaction?
Interactive Ads
and mobile app
wallet to Catch
the offer !
Interactive Ad Technology
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Marketplace
Shopping Cart
NCR Endless Aisle Technology
Multiple categories of content
Traditional eCommerce model
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Circle Line: 2-Hour
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Category Items
Catalog Shopping On-line catalog items
Concierge Services Specialty custom travel
services
Destination Services Hotel, car, taxi, rail at
destination
Entertainment Services Things to do at the destination
Food & Beverage Food & Beverage on-board or
at the terminal
Box Office & Events Shows, theater and sporting
events
Travelling Today Options Flight upgrades, baggage
packages and lounge passes
Duty Free Shopping Duty free catalog items
Media Services Mobile and data plans for at
the destination
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NCR Travel Marketplace – The Catalog
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Non-Aero Revenue
Interactive Advertising
Passenger Engagement
HARDWARE
Digital Signage screens
Touchscreen large-format info kiosks
SOFTWARE
Digital Signage Platform
Travel Marketplace Platform
Mobile app modules for pax
SERVICES
Implementation & on-site support services
Secure marketplace payment processing & fulfilment
NCR Travel Marketplace
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For more information
Adam Barringer
Michael J. Boyd
Stay connected at blogs.ncr.com/travel/
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Thank You