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Attention Retail innovations Q2 Report

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  • 1. RETAIL  INNOVATIONS2012  Q2 1
  • 2. OverviewRetail  and  the  new  Customer  Journey 2 2
  • 3. Tradi7onally,  companies  never  place  anything  between  the  customer  and  the  transac7on.Today,  consumers  transact  anywhere  they  have  Internet  accessToday,  consumers  expect  a  social  experience  when  shopping 3 3
  • 4. Consumers  spend  more  :me  online  than   ever  before In  the  past  two  years,  consumers  have  Consumer  retail  behavior  has   migrated  from  retail  loca:ons  to  online  changed. stores Now  consumers  are  now  shi>ing  their   desktop  ac:vity  to  mobile  ac:vity 4 4
  • 5. In  response  to  the  shi>  in  consumer  behavior,   retailers  have  to  use  technology  as  a  conduit  to   forge  more  meaningful  rela:onships  with  their   customers  and  service  them  at  mul:ple   touchpoints.  Today  we’ll  focus  on  five  key  Retailers  must  be  equipped  to   areas:compete. -­‐  Omni-­‐Channel  Marke:ng -­‐  “Try-­‐Before-­‐You-­‐Buy”  Augmented  Reality -­‐  Product+ -­‐  Crea:ve  Loyalty  Programs -­‐  “Hyper-­‐Localized”  Shopping 5 5
  • 6. Omni-­‐Channel  Marke7ngMobile,  Tablet  and  Pinterest  Commerce 6 6
  • 7. Customers  benefit  from  interac:ng  with  brands   where  they  want,  when  they  want  in  a   distributed  non-­‐linear  customer  journeyThe  walls  between  channels  are  fading. Customers  engage  in  10+  different  brand   touches  prior  to  purchase  (e.g.  mobile,  catalog,   in-­‐store,  iPad,  Pinterest,  e-­‐commerce,  direct,   email) 7 7
  • 8. Mobile  gives  consumers  the  online  advantage  in   an  in-­‐store  environment  (e.g.  price  comparison) Many  retailers  are  unfortunately  losing   customers  in  their  own  stores:Mobile  in-­‐store  commerce  is   -­‐  73%  of  consumers  use  mobile  in-­‐store  +  53%  both  a  threat  and  an   of  those  consumers  stopped  an  in-­‐store  opportunity  for  retailers. purchase  as  a  result  of  using  their  mobile   phone* Mass  adop:on  of  a  next-­‐genera:on  POS   program  appears  to  be  imminent,  awai:ng   results  from  pilot  programs *  Interac<ve  Adver<sing  Bureau’s  Mobile  Phone  Shopping  Diaries,  May  2012 8 8
  • 9. PayPal  powers  in-­‐store  mobile   •eBay’s  PayPal  has  signed  on  19  more  retailers  (e.g.   JCP,  Toys  “R”  Us,  Foot  Locker,  Nine  West)  who  will  purchases. start  to  accept  the  online  payment  system  in  U.S.   stores •PayPal  will  allow  payments  through  mobile  phones •Retailers  with  younger  target  consumers  will  benefit,   since  some  of  these  consumers  are  not  old  enough  to   qualify  for  credit  cards 9 9
  • 10. Peapod  launched  the  U.S.’s  first   •The  virtual  grocery  store  has  emerged  in  Chicago  in  a   pilot  program  launched  by  Internet  grocer  Peapodvirtual  grocery  store. •Peapod  wrapped  the  tunnel  walls  of  a  subway  sta<on   with  larger-­‐than-­‐life  grocery  shelves  with  popular   products  from  brands  like  Coca-­‐Cola,  P&G  and   Kimberly  Clark  -­‐-­‐  all  ac<vated  via  QR  codes •During  a  previous  12-­‐week  pilot  program  in  15   commuter  rail  pla^orms  in  Philadelphia,  Peapod   found  that  90%  of  those  consumers  who  scan   returned  to  Peapod  to  shop 10 10
  • 11. Tablets  drive  sales  comparable  to  those  made   in-­‐store* -­‐  Tablet  AOV:  $159.28  (on-­‐par  with  in-­‐store)Sales  data  from  tablet   -­‐  Smartphone  AOV:  $134.37commerce  have  pushed  retailers  to  invest  in  tablet-­‐only   137  million  US  consumers  own  smartphones  shopping  applica7ons. that  collec:vely  accounted  for  just  1.5%  of   online  sales  last  year;  less  than  half  the   consumers,  61  million,  own  tablets  but  they   generated  more  than  twice  the  percentage  of   sales,  3.2%   *  Na<onal  Retail  Federa<on’s  Shop.org  &  Forrester  Research’s  2012  Mobile  Commerce  Survey 11 11
  • 12. Shopmox  aims  to  bring  the  mall   •The  Shopmox  iPad  app  incorporates  26  stores  from   retailers  such  as  Anthropologie,  Gap,  Gap  Kids,  to  the  iPad  through  an  app  that   Banana  Republic,  Urban  Ou^icers  and  Old  Navy.  incorporates  26  retailer  stores. Features  include:   -­‐Follow  preferred  retailers  to  create  a  customized   bou<que  experience -­‐No<fica<ons  when  a  “liked”  product  goes  on  sale -­‐Product  recommenda<ons  +  curated  content 12 12
  • 13. eBay  launched  a  new  version  of   •  Following  two  years  of  insight  into  consumer  tablet   shopping  habits,  eBay  re-­‐launched  a  new  version  of  its  iPad  app,  centered  around  a   their  free  iPad  applica<onvisual  window-­‐shopping  experience. •  The  release  follows  eBay’s  report  of  a  spike  in  mobile   ac<vity  on  eBay  between  2.5-­‐3X  the  normal  rate  at   which  consumer  conduct  transac<ons  on  their  mobile   devices  during  Cyber  Monday  2011* •  The  app  focuses  on  a  window  shopping  experience   with  big  pictures,  flickable  photos,  quick  access  to   info,  and  purchase  via  PayPal  within  the  app   environment *  WWD’s  “Mobile,  Tablets  Lead  Holiday  Charge”,  December  7,  2011 13 13
  • 14. •  Pinterest  has  12MM+  users,  growing  146%  since   January  2012Pinterest  is  now  the  third  most   •  Pinterest  pins  with  prices  receive  36%  more  likes  than   those  without*popular  social  network  in  the  world,  based  on  referral  traffic   •  On  average,  orders  from  Pinterest  are  double  those  and  daily  ac7ve  users. from  Facebook  ($80  AOV  vs.  $40  AOV)* •  Pinterest’s  API  will  soon  be  made  available  for   developers  to  build  apps  using  Pinterest  data** *  Shopify’s  Pinterest  ecommerce  study,  May  2012 **  Fast  Company,  “Pinterest  CEO  Ben  Silbermann  Talks  New  Profile,  New  Social  Tools,  Addresses  Controversy”,  March  13,  2012 14 14
  • 15. Calypso  St.  Barth  engaged  a   •Fashion  blogger  Chris<ne  Mar<nez  (1MM  followers),   travelled  to  St.  Barth  to  “live  pin”  a  photo  shoot  for  fashion  blogger  to  “live  pin”  a   Calypso’s  2012  summer  look  bookphoto  shoot  on  behalf  of  the  brand. •Calypso  saw  increased  traffic  and  revenue  referrals   from  Pinterest  in  the  six  months  leading  up  to  the   launch  of  the  lookbook 15 15
  • 16. Women’s  Health  is  launching  a   •Women’s  Health  invites  readers  to  create  “Sparkling   Summer”  Pinterest  boards  incorpora<ng  images  from  first-­‐ever  adver7ser  campaign   the  adver<ser,  Forevermark  Diamondson  Pinterest. •While  Pinterest  doesn’t  allow  first-­‐party  adver<sing   on  its  pla^orm,  third-­‐party  publishers  are  finding   crea<ve  ways  to  work  with  adver<sers 16 16
  • 17. “Try-­‐Before-­‐You-­‐Buy”  Augmented  RealityTest  Products  Before  Purchase 17 17
  • 18. The  key  to  a  successful  AR  campaign  is  to   deliver  meaningful  content  for  the  customer*Augmented  Reality  has  evolved   Current  AR  applica:ons  include:beyond  stunt  marke7ng  to  a   -­‐  Size  figng  for  online  shoppersvaluable  mechanism  for  brand   -­‐  Displaying  product  details  alongside  productsto  consumer  communica7on. -­‐  Rendering  products  in  print  catalogs  in  3D Global  revenues  for  AR  apps  are  expected  to   reach  $1.5  billion  by  2015** *  Bazaarvoice  blog,  January  30,  2012 **  Juniper  Research’s  Mobile  Augmented  Reality  report,  January  2,  2011 18 18
  • 19. Bloomingdale’s  launched   •Bloomingdale’s  transformed  six  window  displays  with   interac<ve  LCD  screens,  which  allowed  passersby  to  interac7ve  window  displays  to   virtually  “try  on”  sunglassesallow  users  to  try  on  sunglasses  from  the  street. •Shoppers  could  turn  their  heads  to  view  the  arms  of   the  sunglasses •Selected  favorites  were  virtually  submiced  to  the   Sunglass  Style  Bar  where  a  salesperson  could  close   the  purchase  loop 19 19
  • 20. One  Nordic  allowed  consumers   •One  Nordic  created  an  applica<on  +  “tracking   marker”  (available  online,  catalogue  and  in-­‐store),  to  preview  furniture  op7ons  in   where  users  could  take  an  image  of  their  home  and  their  homes  through  an  AR   the  app  would  display  the  furniture  on  top  of  the  app. marker •Users  benefit  from  being  able  to  see  the  items  in  real   size,  within  the  space  in  their  homes •3D  modeling  enables  a  360-­‐degree  view  of  the   products   20 20
  • 21. Product+Extending  the  Brand  Experience  beyond  Purchase 21 21
  • 22. Brands  have  created  digital  layers  of  content,   value  and  experience  onto  physical  products,  Brands  are  developing  rich   notably  in  the  CPG,  apparel  and  retail  sectors,  to  digital  experiences  onto  their   increase  and  customize  communica:on  with  products  to  con7nue  the   their  customersengagement  with  purchasers. Digital  experiences  can  entertain  and/or  provide   further  u:litarian  value  to  foster  brand  loyalty 22 22
  • 23. Nike+  launched  an  applica7on   •As  part  of  Nike’s  global  “Make  It  Count”  campaign,   Nike  Mexico  launched  a  Nike+  auc<on  Facebook  app,  that  converted  sweat  into   where  users  could  bid  on  Nike  products  with  credits  currency. earned  as  a  result  of  their  Nike+  data   •Users  earned  more  credits  by  running  longer   distances  using  Nike+,  which  tracks  users’  runs   through  sports  watches,  iPods  and  smartphones 23 23
  • 24. Johnson  &  Johnson  launched   •Johnson  &  Johnson  launched  an  augmented  reality   app  that  overlays  anima<ons  of  the  Muppet  an  app  that  projects  anima7ons   characters  onto  its  Band-­‐Aid  productsof  the  Muppets  onto  Band-­‐Aids. •The  app  is  only  ac<vated  once  the  camera  detects   the  Muppet-­‐branded  app,  tying  product  purchase   into  this  digital  delight 24 24
  • 25. Crea7ve  Loyalty  ProgramsReward  Advocates  through  Social  Media 25 25
  • 26. Forrester  cites  loyalty  programs  as  one  of  the   reasons  online  spending  will  reach  $327  billion   in  2016,  up  45%  from  $226  billion  in  2012*Retailers  are  experimen7ng   -­‐  12%  of  online  shoppers  belonged  to  loyalty  with  loyalty  programs  that   programs,  such  as  Amazon  Prime  in  2011,  up  reward  consumers  in   9%  from  2010unconven7onal  ways. 61%  of  consumers  enrolled  in  loyalty  programs   consistently  patron  the  retailer *  Forrester  Research’s  “U.S.  Online  Retail  Forecast,  2011  to  2016”  report,  February  27,  2012 26 26
  • 27. Plink  reported  increased  AOVs   •  Plink  reported  that  consumers  using  the  pla^orm   are  spending  65%  more  than  before  at  par<cipa<ng  &  in-­‐store  visits  at  par7cipa7ng   brands  while  visi<ng  twice  a  month  instead  of  oncebrands. •  Par<cipa<ng  brands  include  Taco  Bell,  Burger  King,   7-­‐Eleven,  Dunkin’  Donuts,  Regal  Cinemas,  Arby’s,   Quiznos,  Red  Robin  and  Outback  Steakhouse •  Arer  an  ini<al  online  registra<on  process  with  their   credit  or  debit  cards,  users  receive  Facebook  Credits   following  qualifying  retail  purchases •  Facebook  Credits  can  be  used  to  purchase  virtual   goods  in  Facebook  games 27 27
  • 28. Target  is  now  Shopkick’s  largest   •Target  has  rolled  out  its  Shopkick  partnership  to  all  of   its  1,764  loca<ons  in  the  U.S.retailer  partner,  rewarding  in-­‐store  consumers  with  a  variety   •Customers  earn  “kicks”  by  entering  stores  and  of  prizes. scanning  products  (e.g.  electronics,  toys) •Kicks  can  be  redeemed  for  Target  gir  cards,   Facebook  credits  +  dining  gir  cer<ficates 28 28
  • 29. Zynga  teamed  up  with   •The  reward  program  links  offline  spending  on   American  Express’s  Serve  pre-­‐paid  cards  to  in-­‐game  American  Express  to  provide   rewards  in  Zynga’s  Farmvillevirtual  rewards  for  purchases. •Purchases  of  specific  offers  will  unlock  more  virtual   currency  in  Zynga  games 29 29
  • 30. “Hyper-­‐Localized”  ShoppingPersonalized  Content  for  Local  Consumers 30 30
  • 31. Consumers  benefit  from  a  more  tailored   shopping  experience  that  highlights   geographically-­‐relevant  data,  including  local  Retailers  are  delivering  targeted   store  deals  and  product  availabilityinforma7on  to  consumers,  based  on  geographic  loca7on. Retailers  benefit  from  localized  metrics  and   learnings,  which  can  be  leveraged  for  further   personaliza:on 31 31
  • 32. Sears  launched   •Sears  is  tes<ng  local,  personalized  e-­‐commerce  in  key   markets  through  the  launch  of  an  online  shopping  SearsLocalAd.com,  providing   portal,  allowing  customers  to  preview  local  deals  customers  with  access  to  local   beyond  those  found  in  the  print  circulars  and  on  deals. Sears.com •Shoppers  can  search  their  nearest  Sears  store  and   browse  deals  by  department,  brand  or  price •Shoppers  can  access  stores’  real<me  inventory  to   check  product  availability 32 32
  • 33. American  Express  launched   •American  Express  pushes  daily  deals  offers  through   its  exis<ng  iPhone  app  to  consumers  based  on  their  “My  Offers,”  which  delivers   purchase  history  and  loca<on,  differen<a<ng  itself  local  recommended  offers  to   from  exis<ng  deal  providers  like  Groupon  and  consumers’  mobile  devices. LivingSocial •Offers  are  ranked  by  relevancy  (as  determined  by   purchase  history  &  loca<on) •The  program,  which  incorporates  offers  with  large   merchants  like  Dunkin’  Donuts  and  Baskin-­‐Robbins,   and  small  businesses,  launched  first  in  New  York  and   Los  Angeles 33 33
  • 34. ImpactLeveraging  2012  Q2  Retail  Innova<ons 34 34
  • 35. Brands  have  successfully  deployed  tac:cs  in  a   few  select  markets  and  started  na:onwide   implementa:on,  strengthening  confidence  for  Retail  innova7ons  experiments   marketersare  flooding  the  global  market,  providing  a  wealth  of  learnings. For  brands  without  brick-­‐and-­‐mortars,  there  lie   many  opportuni:es  to  partner  with  retailers     who  are  pursuing  these  tac:cs 35 35
  • 36. AppendixAddi<onal  Case  Studies 36 36
  • 37. Tesco  employed  virtual  window   Tesco  displayed  clothing  from  its  exclusive  F&F   collec<on  through  specially-­‐decorated  windows  of  its  shopping  to  maximize  the   smaller  London  shops,  where  inventory  and  space  are  experience  in  its  smaller  retail   challengedloca7ons.   Users  point  their  mobile  devices  at  the  store  windows   and  view  a  virtual  showcase  of  the  F&F  range  on  the   catwalk Users  purchase  items  on  display  via  their  smartphone 37 37
  • 38. Retailers  are  taking  a  page  from   Gucci  sales  associates  at  select  U.S.,  Europe  and  Asia   loca<ons  are  equipped  with  iPhones  so  employees  can  Apple  stores’  POS  process  and   process  sales  from  anywhere  in  the  storeimplemen7ng  mobile  payments  from  anywhere  in  the  store. Home  Depot’s  “First  Phone”  devices  were  rolled  out  in   2011  to  nearly  2,000  of  its  stores.  While  the   implementa<on  was  cri<cized  by  much  of  the  staff,   Home  Depot  intended  the  devices  to  provide  real-­‐<me   data  on  sales,  gross  margin  and  inventory,  and  also  to   serve  as  a  mobile  POS,  allowing  purchases  away  from   the  checkout  registers 38 38
  • 39. Hellman’s  delivered  custom   Hellman’s  installed  sorware  in  cash  registers  at  100   Brazilian  supermarkets  that  recognized  Hellman’s  recipes  to  customers  on  their   scanned  productssupermarket  receipts. The  sorware  matched  the  scanned  items  against  a   database  of  recipe  and  delivered  a  custom  recipe  and   cooking  direc<ons  on  the  receipt 39 39