‘Offering transparent customer experience to create value and increase sales’ Amy Sznicer General Manager Retail WitcheryOnline Retail ConferenceThursday 24 May 2012 Online Retail Conference @ CeBIT Australia 2012 <Insert Speaker Name> 1 of x
Snapshot • The retail landscape has changed • Know your customer intimately • The perception of Value • Change the language • Interaction vs Interference • The importance of InnovationOnline Retail Conference @ CeBIT Australia 2012 <Insert Speaker Name> 2 of x
The Retail LandscapeA few facts• Australians now spend on average 22 hours per week browsing the internet• Australia leads the world in the average time spent on Social Media sites• 83% of Australians are comfortable shopping online (Nielson Australian Online Consumer Report)• Online retail sales are up 90% in value this year• Last year Australians spent $9.5B online• 70% of those sales go to businesses that have a physical presence• Multi-channelling is the driving force behind traditional bricks and mortar retailing staying in front and remaining profitable.
The Retail Landscape• Changed during the GFC and won’t return to what it used to be• Retailers need to move with the change or be left behind – Integrate multichannel retailing with traditional bricks stores• Brand Integrity needs to be maintained, but in a new savvy manner• Customer expectations have changed in the past 5 years – More demanding – Expect value, quality, speed to market and service concurrently!• Online retailing becoming the driving force behind changing the industry expectations. – Social Media – 2 way communication• Now more than ever – Embrace talent and look after your people – Growing nervousness over stability of retail as a career – Talent reluctant to move unless they are sure it will benefit them and provide a career path
Know Your Customer Intimately • Invest in market research – Knowledge is power • Ask and Listen – Open the communication channels between your customers and your brand • Create a personal experience • What does it mean for the customer – Put your customers hat on and see it through their eyes • Understanding the customer journey across all touch points – Shop from your own site from start to finish… does it impress you? • Invest in service, in-store and online – You don’t train customer service, you cultivate it. – Invest in Mystery shopping in both bricks and clicks environmentsOnline Retail Conference @ CeBIT Australia 2012 <Insert Speaker Name> 5 of x
The Perception of ValuePeople perceive value in different ways. Monetary value Quality of product Shopping experienceDiscount vs reward Constant promotional activity can de-value quality brands Same result / fresh approach Reward the behavior you want repeatedThe discount drug Most retailers are hooked! Time for rehab? Probably!Delivering a brand and product effectively Retailing in essence is a simple game Keep simplicity at front end and chaos out of view of the customer
2 Way Conversations
Change the Language• Customer ‘communication’ needs to be replaced with Customer ‘conversations’.• Ask questions but be prepared to listen to the answers and adjust the conversation accordingly.• The conversation needs to be behavior based. Customers want to feel you know them. – The customer is in the drivers seat – Customers are making better and more informed purchasing decisions – Tell ‘the story’ of the brand, customers want to relate to brands that connect with them
Change the Language Consumers are willing to engage with and buy from brands that interact and engage with them. Sportsgirl have charged ahead with innovative QR Code shopping Net-A-Porter launched their ‘Virtual Shopping Window” , an augmented walls and their pop up shop concept which allows Interactive Mirror customers to use a Net-A-Porter App to concept. scan product and bring it to life and purchase on the spot.Online Retail Conference @ CeBIT Australia 2012 <Insert Speaker Name> 9 of x
Interaction vs Interference Stop shouting at customers Many retailers are looking desperate Overkill on messages and offers needs to calm down Customers are getting smarter and making informed choices Marketing has changed. Behaviors have changed. We need to listen. Offer relevance, not mass Find your vehicle - SMS, mobile, email, social media, mobile apps etc What works for your brand?Online Retail Conference @ CeBIT Australia 2012 <Insert Speaker Name> 10 of x
The Importance Of Innovation PUMA – London, Carnaby St (Where bricks meets clicks) The 240 sq m space has a new, fun and Overhead screens feature hypnotic, slow sustainable design that enhances the display of moving visuals of random scenarios, from fluffy the brands performance and lifestyle clouds to underwater scenes, drawing the collections and conveys the joyful and witty customer deeper into the store. spirit of the brand. Here, PUMA extends the The changing rooms, towards the rear of fun of the the store, use white metro tiles, reflecting shopping a typical London underground station. environment with the PUMA Peepshow – aUnSmart Phones are dotted around the red box thatstore, offering customers all sorts of tidbits, opens up tofrom trivia about PUMA to random animal show varioussounds video clips. Elsewhere, the PUMA Joypad, featuring 32 synchronised digital iPads, enables customers to interact with the brand.
A parting quote…“Customers today want the very most and the very best for thevery least amount of money and on the best terms.Only the individuals and companies that provide absolutelyexcellent products and services at absolutely excellent prices willsurvive” Brian Tracy