This document discusses innovations that can be used to increase customer loyalty and engagement on a budget for Indian retailers. It describes several mobile, in-store, crowd-sourcing, traffic building, and virtual store innovations. Examples include QR codes that allow customers to try products, interactive digital displays, crowd-sourcing new product ideas, mobile apps for discounts and rewards, and virtual stores accessed via smartphones. The goal is to blend physical and digital experiences to better connect with customers.

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“CREATING CUSTOMER ADHESIVITY ON AN INDIAN
BUDGET”
18th June 2014

2. WESTERN VS INDIAN APPROACH
2

3. TODAY’S DISCUSSION
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• Plethora of ideas
• Which are the ones that work for
you?
• Fear of breaking the bank !!!

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EXECUTIVE SUMMARY
INNOVATIONS IN RETAIL
 MOBILE
 IN-STORE
 CROWD SOURCING
 TRAFFIC BUILDING
 VIRTUAL STORES

5. MOBILE CUSTOMER EXPERIENCE
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6. IN-STORE CUSTOMER EXPERIENCE
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7. CROWD – SOURCING INNOVATION
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8. TRAFFIC BUILDING INNOVATION
8

9. VIRTUAL STORE EXPERIENCE
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10. PRACTITIONERS
VIEW TO LEAN
INNOVATION

11. CONNECTING WITH CUSTOMERS
THROUGH OUTCOMES
Enterprise Loop
Lean Enterprise Loop

12. LASTMINUTE.COM EXAMPLE
12
4 days
80 ideas
3 actionable prototyped solutions
400+ customers per day

13. LASTMINUTE.COM EXAMPLE
13

14. THANK YOU
Sathiyanarayanan Vijayaraghavan
thoughtworks.com

15. CUSTOMER CO-CREATION
15
Evidence-based
decisions on
outcomes
Create an
experiment
to test it

16. MOBILE CUSTOMER EXPERIENCE
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Hointer added
QR code to their
jeans so that
customers could
just scan the
item and it will be
delivered to trial
room

17. MOBILE CUSTOMER EXPERIENCE
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Sainsbury scan and go

18. IN-STORE CUSTOMER EXPERIENCE
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• > 50 LCD screens
• 23 foot video wall
• Virtual hostess, Mrs.
Green, a hologram
• Touch screen kiosks
• High-tech kids area -
interactive video wall
and projections
• Market Pass app for
mobile payment and
rewards

19. IN STORE CUSTOMER EXPERIENCE
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United Arrows Marionettebots combines a traditional mannequin with
the movement capabilities of a robot; used to drive traffic to stores
and has used motion chemistry of consumers to offer promotions

20. CROWD – SOURCING INNOVATION
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SuperBrugsen in
Denmark allows
customers to indicate
local products that they
would like their stores to
stock; crowd sourcing at
its best
Frito-Lay’s “Do Us A
Flavor” campaign on
Facebook, Twitter and
local media generated
600,000 submissions
over 3 ½ months

21. CROWD – SOURCING INNOVATION
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Loblaws, a supermarket chain in
Cadana, allowed consumers to
submit their recipe ideas for a new
President’s Choice branded
product, and integrated it with a
Food Network Canada (later CBC)
television show to showcase the
finalists’ recipes
Budweiser asked its 12
brewmasters to envision their own
unique version of beers. After six
beers brewed for sampling and
25,000 opinions, the experiment
resulted in a new golden amber
lager : Budweiser Black Crown

22. IN STORE CUSTOMER EXPERIENCE
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Fragrance Bar
deployed at
Sephora’s
megastore in China
Perfume dispensers
with iPad stations.
The stations allow
customers to set the
occasion
and try out different
perfumes increasing
chances of
conversion

23. TRAFFIC BUILDING INNOVATION
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The Body Shop
used a
technologically
advanced marketing
campaign that
involved the
iButterfly app.
The Body Shop
campaign included
merchandise
discounts and
several grand prizes
that were worth
hundreds of dollars

24. VIRTUAL STORE EXPERIENCE
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Creation of urban retail spaces in vacant areas;
users with a smartphone will have a fully
stocked supermarket. Consumers scan, add
products, pay and have the items delivered

25. VIRTUAL STORE EXPERIENCE
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P&G launched 5D experience concept store in
Sao Paolo. Enables users to experience the
brand’s products from a new perspective

26. VIRTUAL STORE EXPERIENCE
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Virtual shopping wall at Delhi Airport by HomeShop18;
customers can shop by scanning the QR code shown
with each product

27. VIRTUAL STORES
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Magazine Luiza’s innovative virtual model covers 52 of its 350 chain stores.
Megastore in small, hard to reach cities. Virtual store started with video
sales and customer service and moved online. Provided one hour of
internet for customers and an additional hour for bringing an additional
customer. Space for education, healthcare, child care etc

28. TRAFFIC BUILDING INNOVATION
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eMart in South Korea
launched campaign with QR
codes called Sunny Sales;
25% increase in sales and new
membership by more than
50% month over month
The Body Shop campaign that
involved a technologically
advanced iButterfly app
The Body Shop campaign
included merchandise
discounts and several grand
prizes that were worth
hundreds of dollars

29. DIGITAL MARKETING
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Clear example of the
power that convergence
of physical and virtual
worlds can create. By
displaying Facebook
“likes” on small screens
embedded in articles’
hangers, C&A allows
online community to drive
behavior of brick and
mortar shoppers

30. SUPPLY CHAIN INNOVATION
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RFID tracks
merchandize from
manufacturer to
consumer; stitched
as part of the cloth
Keeps track of
stock throughout
the supply chain
with ability to meet
“promises to
customer”