trends shaping digital experience | retail's digital summit 2016 | the future of retail 2017
TRANSCRIPT
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The Future of Retail 2017
Trends Shaping the Digital Experience
AndreaPuerari #shoporg16
A selec?on of main issues and trends from Retail's Digital Summit
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Retailisimmersedinaneweraofengaging,relevantandvibrant commerce and the most astute players arecomingupwithuniquesocial strategies to influence the
shoppers.
Retailersneedtochoosetherightchannelbasedontheircustomers.
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Virtual and augmented reality promise to take theimmersive customer journey to a higher level ofexperience
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Mobile is the starAngp o i n t f o r d i g i t a lengagement and thecreaAon of a mobile-firstcultureiskey”
“IftherewasonepervasivethemethatseemedtoweavethroughtheDigitalSummit,itwasthis:
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Know the mobile KPI’S
“Whatisimportanttoyou?”“Isitsales?Downloads?NewcustomeracquisiAon?Orareyougoingforprofitabilityandcostsavings?”
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Know the customer
Toys“R”Us:‘Wherearethemicro-momentsthataregoingtohavethebiggestimpact?’”“Wecan’tchangeeveryaspectofthejourney,butifwefocusour
aRenAon on the right spot, thenwe’ll know thatwe’ll have thebest returns.Making surewe’re constantly thinking aboutwhatthey’redoingandwherethey’recomingfromwouldhelpusout.”
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Know the right balance of human and machine learning
Toys “R” Us has incorporated machine learning to helppersonalizethesearchprocessforitsmobile
“But then there are also aspects of the business that weknowbest,wherewewillknowmorethanamachinewill.”
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Know how to design and test for the mobile user
ColumbiaSportswearlifestylebrandprAna:the mobile strategy includes leWng users influence designthroughA/BtesAng.“NotourCEO,notthemarkeAngteam,notthedesigners,”Pennsaid.“WelettheusersdictateourdesignthroughA/BtesAng.”
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Trends 2017
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“Machine learning, ArAficial intelligence, broadly, has plenty of potenAalbut it’s machine learning that will advance personalizaAon and chatcommerce,anddeeplearningthatwillmakechat/conversaAonalcommerceanincreasinglypracAcalsoluAonformanyretailers”.
Banter.ai is an example of a simplevalue-add for customers and retailersalike.
ConversaAonalCommercePla[orm
hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8
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hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8
BanterisaPersonalShopper
Banter i s an In S toreAssistant
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CustomerserviceChatcommerce“Customer service Chat commerce, especially via SMS (vs. retailer orotherapps),wasjustonetopicrelatedtoservice.
Butcustomerservicecamethroughinotherways,too.Retailers are using technology to empower store associates, which isdrivingonlinesalesandfulfillment”.
hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8
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Augmentedreality“ARseemstobeapproachingtheAppingpointtowardmainstreamapplicaAon:-emphasisoncustomerexperience,- Strata 3D allows retailers to “see” new stores and different merchandisingdisplaysbeforedoingbuildoutormakingchanges,whichcouldsaveAmeandallowexperimentaAon.
- in home furnishings (the sector where AR could fastest become a customerexpectaAon),Houzzmeets Lowe’s andHomeDepot in providingAR visualizaAontoolsfordecorconsideraAons.-Sephorahaswidespreaduseofitsmobilemakeuptry-ontools,butusersarethen
heading to stores (yes, physical ones) to test the final lipsAck contenders inperson”.
hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8
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Digitalsupportforphysicalretail“Further evidence of retail’s demand for online-to-offline came from Facebook,which already sells dynamic ads showing local inventory and acknowledgedthere’smuchmoretheycanbuildintothisproduct.Similarly, Facebook’s currentOffers tab noAfies users of promoAons saved in itbuttomorrowcouldincludegeo-targeAng.
RichRelevance allowscustomers insidearetailstoretoopenupthatretailer’swebsite(notjustmobileapp)andautomaAcallyseelocallyavailableinventory — andwhereinthestoreit’slocated — asthefirstsearchresults.Dependingonhowyoulookatit,maybethat’soffline-to-onlineandnottheother
wayaround”.
hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8
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Channelconvergence
“In store andonline shopping experiences are converging and ablendedandseamless“digital”shoppingexperiencethatcombinesthebestofbothworldsis one of the leading reasons for the brick-and-mortar store’s digitaltransformaAon.Facebook’s cross-device ROAS (return on adverAsing spending *) report now
includes store visits and store purchases, and it’s person-based rather thancookie-based”.
hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8
*hRps://www.facebook.com/business/news/cross-device-measurement
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10 Pillars of the New Digital Shopping Experience
PSFK,FutureofRetailhRp://www.pso.com/report/future-of-retail-2016
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CREATE CONFIDENCE “Providing shoppers with the tools and advice to help them discover
new products and choose the best op?ons for their lifestyles and
needs.
Key trends to inspire confidence in shoppers:
• Product Immersion: create opportuni?es for customers to get hands-on with products to decide which op?on is the best fit for
them. • Guided Recommenda?ons: use one-to-one exper?se or automated
services to help people narrow down available choices, models and styles”.
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Virtual Remodels Help Home Owners Decide @IKEA
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Virtual Remodels Help Home Owners Decide @IKEA
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EmployeesBestMatchingCustomerBodyTypeModelDressesOnSnapchatToEnsureProperFit@RenRheRunway
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ELIMINATE OBSTACLES
“Saving customers Ame and effort along thepurchasepaththroughstreamlinedtechnologyandservices”.
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“Modiface, an augmented reality (AR) company serving the beautyindustry with custom try-on apps, has integrated its simulaAontechnology into a conversaAonal beauty advisor on FacebookMessenger”.
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Taco Bell Slack-Bot Orders F o o d T h r o u g h Instant Message
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“Keytrendstoeliminateobstaclesinthepurchasepath• AnywherePurchasePla9orms:leverageemergingtoolsto
allowshopperstoquicklydiscoverandbuyproductsanywheretheyencounterthem.
• ShopAhead:providedigitalservicesthatallowcustomerstoplanoutandopAmizeeverystorevisitbeforetheygo.
• One-ClickTransacBons:streamlinethecheckoutprocesswithservicesthatautomaAcallyrecognizeshoppersandtheirpreferredpaymentmethod”.
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DEMOCRATIZE ACCESS “Openingthedoor forconsumerstotakeadvantageofservicesandexperiencesthatwerepreviouslytooexclusiveorexpensive.Keytrendstodriveshopperaccess:• Customer Concierges: enable one-to-one relaAonships betweencustomers and members of staff to deliver more personalizedserviceandexperiences.
• AspiraAonal Experiences: experimentwith immersive360-degreeandreal-AmevideotechnologiestoopennewpossibiliAesforhowaudiencesexperienceabrandanditsproducts.”
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Connect with an associate 24/7
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RECOGNIZE & PERSONALIZE “PuWng systems in place for remembering and acAng on the purchasehistoryandpreferencesofcustomers,andtailoringthoseexperiencesoverAme.Keytrendstobuildapersonalizedshoppingexperience:360-DegreeService:providemembersofstaffwithtoolsthatenablethemto build and act on the preferences of shoppers to deliver more
personalizedserviceandexperiences.PredicBve Assistance: develop sophisAcated pla[orms that leverage
known preferences and behaviors alongside key contexts to deliverrelevantinformaAonandservicesthatanAcipateshopperneeds”.
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Macy’s x IBM Watson AI Assistant Offers Loca?on-Specific Guidance And Advice
@Macys@IBMWatson
The departmentstorehasenlisteda n e w A I -p o w e r e dassistant.
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PROMOTE TRANSPARENCY
KeytrendstogiveshopperstransparencyReciprocal RelaBonships: develop opt-in experiences that give consumersinsight and control over their personal informaAon, and deliver greater
valuearounditsuse.StoriedProducts:givecustomersabehindthescenes lookatthesourcing
ofproductsandtheirimpacts.”.
“Being upfront with consumers about the policies and processes thatunderlietheproductsandservicesthatthey’rebuyinginto.
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Sage Project
“Anewonlinepla[ormthatreimaginesfooddata.Sage deconstructs more than 20,000fresh and packaged foods (mostlyorganic brands fromWhole Foods, fornow) into interacAve, personalizedblurbs of informaAon that makethebasicsof food labels—calories, topnutrients, ingredients, and allergens—easiertodigest”.
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PERFECT PARTNERSHIPS
Keytrendstobuildbrandpartnerships:Cross-Channel Rewards: build an ecosystem of partners and perks thatrewardengagementinbroadervarietyofways.
AddiBve Experiences: enhance the experience of shopping and/orownership by connecAng with partners to deliver premium services,
contentandperks.”.
“CreaAngaddiAonalvalueforcustomersbycollaboraAngwithlike-mindedcompaniestodeliverexpandedofferings.
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OPTIMIZE OWNERSHIP
KeytrendstoopAmizeownership:CulBvatedExperBse:createeducaAonaliniAaAvesthat
teachconsumersnewskills,whileextendingtheusefulnessofproductofferings.
Always-On Support: leverage a mix of text, video and AI services toprovide real-Ame access a network of experts to troubleshoot problemsandprovideadvice”.
“Building a responsive support network that provides expert service andeducatesconsumersarerapurchaseismade.
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@oBo?cario Live Streamed Professional Make Up Classes For All
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CULTIVATE COMMUNITY
Keytrendsdrivingcommunityengagement:Cultural Hubs: set aside space within stores to push complementaryservicesandexperiences that gobeyondcoreproductofferings, creaAngmarketplacesforrelaAonships,notjustproducts.CollaboraBveMarketplaces:experimentwithnewwaystomakeproductsa catalyst for shared connecAons – whether through knowledge,experiencesorownership”.
“CreaAngopportuniAes forconsumersand fans tocometogetheraroundthehaloofabrandtobuildvalueontopofexisAngproductsandservices.
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ENCOURAGE ADVOCACY
Keytrendstoencouragecommunity-ledadvocacy:Shopper-LedExchange:createopportuniAes for shoppers to share theiradviceandexperienceswithacommunityofothershoppers.CrowdBuy-In:uAlizethepowerofcommunity-basedpla[ormstolaunchnewideasandsolicitfeedbackfromanengagedaudienceoffans.”.
“Tapping consumers for their knowledge and feedback to createopportuniAesforthemtoadvocateonyourbehalf.
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CoverFX Social Media Fans Become Makeup Models @CoverFX
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DELIVER DELIGHT
Keytrendtodeliverdelight:InsiderExclusives:offerone-of-a-kind
rewards and experiences to a top-Aer group of customers andinfluencerstogenerateexcitementandgrowbroaderappeal”.
“ProvidingunexpectedperksandpromoAonsthatreenergizeexisAngrelaAonshipsandbuildonthebroaderbrandpromise.
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Taco BellRewards for Social Behavior Embodying Brand Lifestyle @TacoBell
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5PlacesToInvest
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Automate An Intelligent Front Line
Empower A Connected Salesforce
Build A Comprehensive Customer View
Drive Commerce With Compelling Content
Equip The Modern Shopper To Act
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“boundarylessretail”
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Drop the ‘e’ and capitalize the ‘c’ — it’s all about Commerce
“We’ve entered the age of boundaryless retail – a
world devoid of ar?ficial barriers, driven by innova?on
and collabora?on, where we leverage the power of
technology to create a seamless experience for
consumers.”
HSNiCEOMindyGrossmandescribeshervisionasboundarylessretail.
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Drop the ‘e’ and capitalize the ‘c’ — it’s all about Commerce
“Successful retailers will focus less on akrac?ng
customers to their own points of sale, and more on
mee?ng them wherever, whenever and however they
want to engage”.
hkps://youtu.be/M_weWs29eYY
HSNiCEOMindyGrossmandescribeshervisionasboundarylessretail.
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Main Source:
hkp://retailsdigitalsummit.nrf.com/recap#ar?cles
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Thank You,
Andrea Puerari www.andreapuerari.com