iMedia 2014 - Digital Divas, Store & Global Commerce - Australia eCommerce Market Updates & Michael Hill Case Study

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A case study presentation by Michael Hill on their recent global commerce rollout and a market update by Amblique. …

A case study presentation by Michael Hill on their recent global commerce rollout and a market update by Amblique.

Today’s shopper assumes you know who they are, what they want, how they like to shop and that you will be able to follow, service and support them whenever and however they like. Overseas retailers, the media and even movies and TV have combined to change the expectations of today’s shoppers who are now after newness, experiences, meaningful interaction, on the spot advice and support.

James Johnson will discuss the challenges that come with launching on an international scale as well as tactics to maintain a customer centric approach to online using key integrations and interactive features. Justus Wilde will explore what retailers around the globe are seeing and what is available to help retailers redefine the shopping experience wherever their customer chooses to shop.

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  • Good morning everyone. I’m Justus, strategy director @ Amblique and I’m excited to be speaking here again. I’ll be giving you a brief market update on 2013/2014, explore the traits of the digital diva or power shopper and take you through some example of how global brands are delivering on the convergence of digital and the store.And I’m James, Group Digital Manager at Michael Hill. We are an Amblique client and I will taking you through a case study of our recent Demandware project.
  • Now it’s rare to have so many key industry people in the same room so I thought it would be an opportune moment to start this session with a little poll.I’m sure all of you have a smartphone or tablet on. Simple go to the address on the screen. Pollev.com/ors14
  • Now firstly I want to look at the revenue growth in ecommerce and to set the scene lets start with US stats. Based on the IR500 we saw growth of 16%.In start contrast Amazon is growing at 27% which is nearly 70% fasterWe also have access to another dataset which is US DWRE customers which is a subset of the IR500 representing a few dozen retailers and branded manufacturers which are growing at an average of 33%. This goes to show that aggressive innovative retailers can still keep up.
  • On the home front again lets look at 3 data sources. According to the NAB online retail index revenue growth was 13% last year. This is a long strech away from 20-30% growth in previous years and a strong indication that ecommerce growth as a total market has started slowing. This doesn’t mean that individual retailers/brands are not seeing high double digit or even tripple digit growth but that as a whole the industry growth has slowed last year. It had to.A second datasource is Hitwise traffic data. We have benchmarked the top 100 shopping sites across 10 categories so 1000 sites in total which show a traffic increase of 15%. This of course in not revenue but traffic is an indication of growht.And lastely we at Amblique have been running our own index which is based on anonymised data of our enterprise retail clients and this showed revenue growth of 38%. We are lucky to work with many aggressive and innovative brands so that number is an indication of that.
  • The top 1000 shopping sites grew traffic by 15% in aggregate.Mass merchant categories inc.dept stores, grocery and home & garden performed best taking market share from some specialty retail.While most of our well know retailers experience strong double digit growth and some even triple digit growth it is hard to compete with the absolute number growth of Amazon which is already coming of a very strong base. I have another slider later that shows this in more detail.Apparel is a case of the big guys getting bigger. Star performers this year Country Road, CottonOn, Rebel. ASOS coming of a big base had less growth and the private sales clubs seem to have declined.Computers – Harvey Norman & Bing Lee. Apple going strong with HP & Dell seeing weaker traffic growth.Dept Stores – both DJs & MYER have had very strong traffic growth ~90% - Amazon is growing at the same rate of a base that is 15x higher. Kmart, Target, BigW 10-20%. Electronics – JB Hifi, Harveyrs & Good Guys growing strong at much higher rates than pureplay competitors Kogan/Appliances Online.Homesware – most players growing strong. In this category pureplays temple &webster and milan direct did very well.
  • Domestic retailers have gained strength in terms of traffic share this year. Looking at the top 20 sites in the top 10 shopping categories we can see that as off Jan 2014 66% of traffic is now going to domestic retailers.This is a gain of 3 basis points over last year demonstrates a maturing domestic market and has no doubt been impacted by recent currency movements
  • Omni-channel retailing is winning market share. In 2012/2013 we witnessed the omni-channel retailer segment beginning to grow at a faster rate than pure plays and this trend is continuing in 2014.Interestingly enough multi-channel retailers grew their traffic 29% compared to 8% pureplays
  • and now account for 60% of traffic in the top 20. a gain of 4 points.We did this same study about 12 months ago and interestingly there was an identical shift of 4 basis points.
  • Despite strong omni-channel growth some pureplay continue to grow at astronomical rate. None greater than Amazon whose traffic grew by nearly 50% the first 4 months this year despite its enormous base. This means that for 2014 so far Amazon’s monthly traffic has accounted for 60% (more than half of all major Aussie dept stores combined). This despite Amazon still fulfilling form Germany.I showed a similar slide last year but decided to include catch and deals direct this year.
  • Dec first month in our data set of 30 major aust retailers mobile in aggregate represented >50% of visits Revenue not as strong – mobile is still mostly research – tablets higher check out rate
  • If we look more closely at the makeup of this mobile pie you can see that true mobile as in smartphone traffic is contribution the most to this growth. Despite Apple loosing market share globally it’s interesting to note that non apple devices still only make up 1/5th of this traffic. As a percentage of mobile traffic this remains unchanged from last year despite the overall traffic growth.
  • Does anyone recognise this number?This is the estimate value of online exports from Australia by 2018. As we have seen overall online retail growth has started slowing considerably and as our local market size is very limited this is going to be come increasingly important.
  • PayPal published a great paper titled the modern spice routes on borderless trade last year. This chart shows the demand of Australian products into 5 key markets worth approx. $5bn. It is important that nearly half of this is going into emerging markets such as China and Brazil.
  • If we look at the global picture we can see that APAC is now the dominant region as predicted and perhaps more importantly will account for 61% of global ecommerce sales growth over the next 3 years.
  • So we know APAC
  • In 2013 Demandware and the University Of Arizona conducted a research study into ecommerce power shoppers across the US and Europe to identify and understand the digital divas.
  • Their purchasing power amounts to 69% of all fashion spend in the US & Europe.They are 5x more likely to influence friends, family and colleagues compared to non-divas.
  • These highly engaged shoppers are comprised almost evenly between 53% women and 47% men. Yes, Digital Divas are men too! They have significantly higher household incomes than non-diva populations. 64% of Digital Divas are 25-44 years old, 68% have children, and 71% are the primary wage earners within their households
  • Digital Divas leverage an average of 3.7 technologies while shoppingFragmented – Digital Divas visit an average of 3.4 destinations during their journey, primarily shopping at physical retail stores (70%) and retailer websites (51%). Bricks are not dead for Digital Divas as they value the tactile nature of the in-store experience. And because they shop across multiple channels – using multiple technologies and visiting multiple destinations – Digital Divas expect fluid and highly relevant interactions, where their context with the brand is never lost.
  • Informed – Digital Divas are information omnivores, seeking out and devouring a myriad of content to make smarter decisions. They are diligent, gathering product information from an average of 3.5 sources before purchase. 52% state that they always or almost always read online customer reviews and 50% read product ratings on retailer websites. Conversely, only 36% consult information provided by fashion designers. Social – Digital Divas are extremely active with social media, enhancing their position as opinion leaders by utilizing an average of 1.7 different networks to inform, educate, advise, and influence others. Facebook is the most popular medium with 40% of Digital Divas using it to share positive and negative experiences, surpassing Twitter and Pinterest at 31% each. Untethered – Although Digital Divas are one-third more loyal to retailers than non-divas – with 39% claiming to have a favourite fashion retailer – there is 61% of market share to be gained by those who focus and deliver on what is important to these influential spenders Digital Divas are two times more likely to use mobile devices while shopping in stores than non-divas. Their high adoption of mobile technology means that Digital Divas have both the access and inclination to not only but also shop on the move. Mobile devices provide them with a powerful tool for instant connection and influence. They are most likely to use their mobile device to review special promotions and discounts (46%), or to order out-of-stock products if these are shipped to their homes for free (45%). In the UK, Divas are most likely to use their mobile device to identify themselves as loyal customers to receive personalized offers, which could be a reflection of the successful loyalty programs of Tesco and Sainsbury which reward members with unique discounts.
  • Price & quality are top priorities among Digital Divas and non-diva’s alikeHowever… SERVICE and MULTI-CHANNEL experience rank significantly higher for Digital Divas.Digitaldivasvalue service & omni-channel experiencesThe shopping experience across multiple channels is an important consideration for 45% of Digital Divas compared to only 17% of their non-diva counterparts. Digital Divas intuitively blend both the physical and virtual worlds and expect retailers to provide a digital backbone that supports individual, fragmented moments across multiple channels. They often conduct research before they enter brick and mortar locations, highlighting just how critical it is for retailers to digitize their stores and empower their associates with the same knowledge as these influential shoppers.
  • With the power to influence and money to spend, Digital Divas are worthy of red-carpet treatment. What does that mean?Digital engagement starts with knowing your customer by tracking their footprint across channels, devices and applicationsTracking their footprint across channels, devices, and applicationsFulfill their shopping expectations enable a seamless and consistent experiences that is device agnosticCreate a way for them to communicate their needs and wants, as well as a way to listen and respond. Their voices are loud and influential, so it’s important to embrace them. Remember that they demand information – so treat all content as gold and empower store associates to be brand ambassadors.Retailers have an opportunity to invest in capabilities that enhance digital engagement and increase fashion engagement…Digital engagement starts with knowing your customer by tracking their footprint across channels, devices, and applications. This insight will help you identify your Digital Divas so you can fulfill their shopping expectations. To do this effectively, retailers must establish a digital backbone that enables seamless and consistent experiences that are device agnostic but context aware.To increase fashion engagement you must identify advocates and create a way for the Digital Divas to communicate their needs and wants, as well as a way to listen and respond. Their voices are loud and influential, so it’s important to embrace them. Remember that they demand information – so treat all content as gold and empower store associates to be brand ambassadors.
  • Omni-channel is not a trend..But it also hasn’t delivered on it’s promise.. Until now.A lot of store technology has been disconnected and in-humanThere is a transformational collapse between the barriers of physical and digital. Blended experience require new way of evaluating success. It’s about experiental marketing.Digital Store Concepts:VISIBILITY of digital elements in-store and sensorsRELEVANCY of digital content for store form factorsFUNCTIONALITY tailored for guided, single AND multi-customerBRANDING elements driving foot traffic as a destinationSOCIAL integration in both directionsMOBILE features complimenting and connecting store and webINVENTORY availability and connected experiences
  • Bloomingdale’s Me-Ality…bodyscanner custom jeans
  • Interactiveexperince let’s you open drawers in fridges etc.http://cargocollective.com/philipspradley/The-Home-Depot-Appliance-Finderhttp://chriswburke.dunked.com/home-depot-kiosk
  • Sephora foundation skin tone finder
  • Warby Parker’s Soho flagshipstore is truly the physical embodiment of a digital business. This store is a showroom of products that are driving by commerce. Experiences to profile: guided selling by associate, Point of Purchase that is entirely Web based (there is no register or POP system – it's the Web site in use), Photo Booth (similar to our magic mirror for LC, but solely focused as a photo booth), wiring of the environment (sensors). 
  • SportChek West Edmonton…470 digital screens…shoppable
  • Motorola Solutions, “NRF 2013:Rise of the Connected Consumer and Enabling Store Associates,” January 14, 2013.Clienteling capabilities allow store associates to have extensiveand consistent product information that better equips them toprovide relevant cross-selling suggestions. With guided selling, they have access to a 360-degree view of theconsumer across all retail touchpoints, including past purchases,consumer style and brand preferences, to make personalizedrecommendations and avoid missed sales. Clienteling also givesstore associates access to all online elements, including:• Customer preferences• Recommended items• Order history• Enterprise-wide access to loyalty promotionsAllowing store associates to become more knowledgeable aboutproducts, consumer reviews and preferences can result in a morepersonalized and engaging shopping experience for the consumer,and a greater chance to convert the opportunity into a sale.
  • NRF_researchreport_web FINALNational retail federation in the US found that retailers rated guided selling and clientelling as some of the most important digital functionality required in store for both customers and retail staff
  • SINGLE CONSUMER TRANSACTION PLATFORM IS EMERGING AS A SOLUTIONThe new retail reality will be better served by a single platform at the center of the consumershopping experience. According to nfr survey, nearly 40% of retailers are considering a singleconsumer platform to manage interactions and transactions across channels“NRF 2013:Rise of the Connected Consumer and Enabling Store Associates,” January 14, 2013.
  • Manufacturing in house for quality – tell a storyPlenty of engaging and emotive content – see example Helios video reflecting craftsmanship. $1.6M Helios diamonds 6.84 carat flawless D colour diamonds.1979Michael Hill opened its doors for trading for the first time in Whangarei, New Zealand. Sir Michael's aim was to make jewellery buying less intimidating and more accessible to buyers.1987The company listed on the New Zealand Stock exchange as well as expanding into Australia, opening 4 stores in Brisbane, Queensland. 2002 In 2002, Michael Hill expanded into Canada, opening its first stores in Vancouver. Now close to 50 stores in Canada2009 Purchased stores in Chicago – 8 stores in Illonois and just opened Easton in Columbus Ohio.2011Sir Michael is knightedOver 280 stores in Australia, New Zealand, Canada and the United StatesBegan eCommerce trading in 2005 using SilverlightWe remain one of the few jewellery retailers that have an in-house team of master craftsmen – dedicated to creating future heirlooms and keepsakes
  • Best of breed technology used – Launched on Demandware in November 20134 responsive sitesAlmost 4,000 products online188 pages of new content created4 responsive blogs featuring trends, style content and social integrationAbility for customers to share their love storiesPersonalised charm builderShoppable videoCreating an online experience that rivals the in-store experience
  • Best of breed technology used – Launched on Demandware in November 2013Slide to be updated from Kate – takes about 3rd party integrations used.
  • Creating an experience for the customer to shop when and where they want and have their path followed throughout each device.Allowing customers to shop on the go, with mobile traffic now accounting for 38.4% of revenue and 48.6% of visits (.com.au, Feb 2014)
  • Play screencast of shoppable video in action….First true shoppable video in AU/ NZFocused on ease of content loading for future campaignsDevice Agnostic - Non flash based to cater for our market – over 50% of traffic from mobile and tablet devices. Mobile is difficult due to size, but works on tablet devices.Time taken for us to link content is only 2 mins per video after assets are created. We’re getting better about what type of content works in the medium.
  • Play screencast of shoppable video in action….First true shoppable video in AU/ NZFocused on ease of content loading for future campaignsDevice Agnostic - Non flash based to cater for our market – over 50% of traffic from mobile and tablet devices. Mobile is difficult due to size, but works on tablet devices.Time taken for us to link content is only 2 mins per video after assets are created. We’re getting better about what type of content works in the medium.
  • Screencast of bracelet being designed to play while build process is discussedEmphasis on giving the online shopper a similar experience as in-store, being able to custom design a piece at their own pace and priceCustom CSS build - circa 380 hrs – Javascript – complex coding to make feature device agnostic Add 18 charms to each piece, unlimited number of SKUs listed
  • Screencast of bracelet being designed to play while build process is discussedEmphasis on giving the online shopper a similar experience as in-store, being able to custom design a piece at their own pace and priceCustom CSS build - circa 380 hrs – Javascript – complex coding to make feature device agnostic Add 18 charms to each piece, unlimited number of SKUs listed
  • Given the story behind and emotions behind our product and the extended consideration process; our product details page is much more than simply providing a product image and price.We provide contextually relevant content – product and category dependent including articles, additional images, product video etc.Customer reviews including imagesAdditional video that is relevant to the category in this case highlighting the craftsmanship of the itemAnd finally related products including cross sell and upsell.
  • Share your Shine – this is one of our most popular social tools. People love sharing their bling and love stories.Customers have the ability to share their stories surrounding MHJ piecesAlso show how the Share Your Shine integrates products to allow people to buy based on stories. Built in sharing capabilities.
  • Share your Shine – this is one of our most popular social tools. People love sharing their bling and love stories.Customers have the ability to share their stories surrounding MHJ piecesAlso show how the Share Your Shine integrates products to allow people to buy based on stories. Built in sharing capabilities.
  • Screencast usingzmags interactive catalogue for April Lookbook
  • Screencast usingzmags interactive catalogue for April Lookbook
  • Screencast usingzmags interactive catalogue for April Lookbook
  • Screencast usingzmags interactive catalogue for April Lookbook
  • September 2013 : December 2013 by visitsApparel and Accessories #172 to #45Shopping and Classifieds #687 to #224All industries #6181 to #1446Hitwise ranks over 617,337 sites internationally, in every industry and function.
  • Page views – up 4.9% (1559124 v 1635620)Time on site – 4:24Visits – up 86.4% (169019 v 315115)Mobile traffic – up 97.5% - Mobile is now the most pupular device used to access, overtaking desktop (97218 v 192011)
  • All stats from October 2013 v December 2013 – Launch in November 2013After Launch, the following stats;Conversion rate from 0.10% to 0.32% (220% increase)6x the transactions (or 512.7% increase – 165 to 1011)Sales – up 291.4% (42552 v 166560)Mobile revenue – up 90.4% (22347 v 42552)
  • Emma and Roe – upcoming new brand and site.Images in devices
  • Promo code for delegates to shop online and experience MH.

Transcript

  • 1. © 2014. All rights reserved. Justus Wilde & James Johnson Digital Divas, Store & Global Commerce Market Update & Case Study
  • 2. © 2014. All rights reserved.© 2013. All rights reserved. Results from LIVE audience poll
  • 3. © 2014. All rights reserved.© 2013. All rights reserved.
  • 4. © 2014. All rights reserved.© 2013. All rights reserved.
  • 5. © 2014. All rights reserved.© 2013. All rights reserved.
  • 6. © 2014. All rights reserved.© 2013. All rights reserved.
  • 7. © 2014. All rights reserved.© 2013. All rights reserved.
  • 8. © 2014. All rights reserved.© 2013. All rights reserved. Market Update
  • 9. © 2014. All rights reserved.© 2013. All rights reserved. Global eCommerce Growth 16% 27%16% 27% 33% Soures: Internet Retailer and content presented at Demandware Xchange 2014 keynote in Miami
  • 10. © 2014. All rights reserved.© 2013. All rights reserved. Australian eCommerce Growth 16% 27%13% 15% Top 1000 Shopping SitesNAB Online Sales Index A30 Index 38% Soures: http://business.nab.com.au/online-retail-sales-index-indepth-special-report-january-2014-5869/ Hitwise Jan 2014 vs. Jan 2013 top1000 retail shopping sites visits. Amblique 30 retail client revenue growth index.
  • 11. © 2014. All rights reserved.© 2013. All rights reserved. Source: Hitwise top 20 sites across 10 categories. Comparing Jan 2014 with Jan 2013
  • 12. © 2014. All rights reserved.© 2013. All rights reserved. International vs. Domestic Traffic 36% (-3) 66% (+3) Source: Hitwise top 20 sites across 10 categories. Comparing Jan 2014 with Jan 2013
  • 13. © 2014. All rights reserved.© 2013. All rights reserved. Traffic Growth 2013 V. 2014 Pure Play Omni-channel 29%8% Source: Hitwise top 20 sites across 10 categories. Comparing Jan 2014 with Jan 2013
  • 14. © 2014. All rights reserved.© 2013. All rights reserved. 40% 60% (+4) Pure play Omni-channel Source: Hitwise top 20 sites across 10 categories. Comparing Jan 2014 with Jan 2013
  • 15. © 2014. All rights reserved.© 2013. All rights reserved. 60% 8% 7% 5% 6% 7% 3% 4% Source: Hitwise traffic visit data Jan 2014
  • 16. © 2014. All rights reserved.© 2013. All rights reserved. Mobile Growth 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Traffic % Revenue % Dec 50%+ Source: Amblique A30 retail index.
  • 17. © 2014. All rights reserved.© 2013. All rights reserved. Mobile Traffic Distribution Feb 2014 Desktop 50% iPhone 23% iPad 16% Mobile Other 11% Feb 2013 Desktop 65% iPhone 16% iPad 12% Mobile Other 7% Source: Amblique A30 retail index.
  • 18. © 2014. All rights reserved.© 2013. All rights reserved. $16bSource: PayPal Modern Spice Routes Report
  • 19. © 2014. All rights reserved.© 2013. All rights reserved. Source: PayPal Modern Spice Routes Report
  • 20. © 2014. All rights reserved.© 2013. All rights reserved. The Global Picture ($bn) 2013 2014 2015 2016 2017 Asia Pacific $384 $525 37% $681 30% $856 26% $1,053 23% North America $431 $483 12% $538 12% $598 8% $660 10% West Europe $312 $347 11% $383 10% $414 8% $445 7% Central & East Europe $50 $58 17% $64 11% $69 7% $73 6% Latin America $48 $58 20% $65 12% $71 9% $75 6% Middle East & Africa $27 $34 25% $40 17% $46 15% $51 13% Worldwide $1,251 $1,504 20% $1,771 18% $2,053 16% $2,357 15% Source: eMarketer.com
  • 21. © 2014. All rights reserved.© 2013. All rights reserved. Our Neighborhood Source: eMarketer, Accenture Research Country Internet Users Internet penetration Size of online retail market (in$ '13) China 570m 42% 219 billion Japan 101m 79% 72 billion South Korea 42m 84% 42 billion India 152m 13% 28 billion Australia 19m 83% 22 billion Taiwan 17m 76% 9 billion New Zealand 3.8m 89% 2.5 billion Hong Kong 5.2m 73% ~2 billion Singapore 3.9m 76% ~2 billion Malaysia 19m 66% ~2 billion Thailan 18m 28% ~2 billion Indonesia 39m 29% ~2 billion
  • 22. © 2014. All rights reserved.© 2013. All rights reserved. POWER CONSUMERS
  • 23. © 2014. All rights reserved.© 2013. All rights reserved. Digital Divas 22% fashion shoppers 69% purchasing power 29% Spending Power 40% Influencing Power 69%Purchasing Power 22% Source: Demandware Digital Divas Report
  • 24. © 2014. All rights reserved.© 2013. All rights reserved. What do Divas look like? 22% fashion shoppers 69% purchasing power 68% HAVE KIDS 71%ARE PRIMARY WAGE EARNERS 64% ARE 25-44 YEARS OLD ALMOST EQUAL SPLIT Source: Demandware Digital Divas Report
  • 25. © 2014. All rights reserved.© 2013. All rights reserved. How they shop - Fragmented 51%at retailer website 70%at physical store 3.7 TECHNOLOGIES 3.4 DESTINATIONS Source: Demandware Digital Divas Report
  • 26. © 2014. All rights reserved.© 2013. All rights reserved. How they shop 3.5 INFO SOURCES 1.7 NETWORKS 39% HAVE FAVOURITE Source: Demandware Digital Divas Report
  • 27. © 2014. All rights reserved.© 2013. All rights reserved. What they Value 22% fashion shoppers 69% purchasing power PRICE and VALUE are top priorities 49% 23% 45% 17% Services Multi-Channel DIVA DIVA Source: Demandware Digital Divas Report
  • 28. © 2014. All rights reserved.© 2013. All rights reserved. Courting Digital Divas Track footprint Two way comms Content is gold Fulfill expectations Source: Demandware Digital Divas Report
  • 29. © 2014. All rights reserved.© 2013. All rights reserved.
  • 30. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 31. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 32. © 2014. All rights reserved.© 2013. All rights reserved. Disconnected & Poor Customer Experience
  • 33. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 34. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 35. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 36. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 37. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 38. © 2014. All rights reserved.© 2013. All rights reserved.Source: Sapient Corporation.
  • 39. © 2014. All rights reserved.Image Source: Sapient Corporation. Clienteling •  Customer preferences •  Recommended items •  Order history •  Access loyalty promos
  • 40. © 2014. All rights reserved.© 2013. All rights reserved. Clienteling – What do retailers want? 73% 63% 60% Inventory search Clienteling Guided selling Store fulfillment Source: Demandware/NRF digitising the store report
  • 41. © 2014. All rights reserved.© 2013. All rights reserved. Single Transaction Platform Source: Demandware/NRF digitising the store report
  • 42. © 2014. All rights reserved.© 2013. All rights reserved. Market Summary 1.  Overall ANZ growth slowing 2. Domestic & Omni-channel gaining strength 3. Mobile tipping point has been reached 4. Amazon not slowing 5. Global opportunity is huge with 60% in APAC
  • 43. © 2014. All rights reserved.© 2013. All rights reserved. Proposition Summary 1.  Digital Diva controls 69% spent 2. They fragmented, informed, social & untethered 3. Service & multi-channel is key 4. Store/Digital convergence driven by humanised CX and connected systems & data 5. Clienteling likely to drive most ROI
  • 44. O V E R V I E W §  About Michael Hill §  The Michael Hill Online Journey §  Key Features §  Key Results §  The Future
  • 45. A B O U T M I C H A E L H I L L  
  • 46. P R O J E C T G O A L S   Add new sites for growth opportunities Build digital capabilities and grow revenue Create an online experience that rivals the in-store experience  
  • 47. M I C H A E L H I L L O N L I N E   §  4 responsive sites & blogs §  4,000 products §  200 pages of new content created §  Ability for customers to share their love stories §  Personalised charm builder §  Shoppable video §  An online experience to rival the in-store experience  
  • 48. B E S T O F B R E E D S O L U T I O N S   Catalogues Payment Ratings/Reviews Video BI & Analytics OMS J A S P E R   ERP
  • 49. K E Y F E A T U R E S
  • 50. D E V I C E A G N O S T I C  
  • 51. S H O P P A B L E V I D E O S  
  • 52. S H O P P A B L E V I D E O S  
  • 53. C H A R M B U I L D E R  
  • 54. C H A R M B U I L D E R  
  • 55. R I C H C O N T E N T A N D M E R C H A N D I S I N G  
  • 56. R I C H C O N T E N T A N D M E R C H A N D I S I N G  
  • 57. R I C H C O N T E N T A N D M E R C H A N D I S I N G  
  • 58. I N T E R A C T I V E C A T A L O G U E S  
  • 59. I N T E R A C T I V E C A T A L O G U E S  
  • 60. I N T O T H E S T O R E   §  Focus was to lay foundation §  Mobile is driving in-store sales §  Campaigns & catalogues now integrated §  Existing Clientelling App §  CRM §  Custom Quotes §  Interest Free / Finance  
  • 61. D I G I T A L D I V A S   §  Significant content §  Video engagement 8min vs. 4min §  Charm builder conversion 88% uplift §  Increase in mobile research / store buy  
  • 62. K E Y R E S U L T S  
  • 63. B E N C H M A R K R A N K I N G S   Ranking sites based on visits against over 600,000 sites intl. All Industries up 4,735 places from #6,181 to #1446 Shopping and Classifieds up 463 places from #687 to #224 Apparel and Accessories up 127 places from #172 to #45
  • 64. S I T E U S E S T A T I S T I C S   Average time on site 4mins+ 85% increase in visits 97% increase in mobile traffic
  • 65. E C O M M E R C E R E S U L T S   500% increase in transactions 220% increase in conversion rate 90% increase in mobile revenue
  • 66. T H E F U T U R E
  • 67. E M M A & R O E  
  • 68. I M E D I A E X P E R I E N C E M I C H A E L H I L L Y O U R S E L F R E C E I V E 2 0 % O F F F U L L P R I C E D I T E M S E X C L U D I N G C O L L E C T I O N S
  • 69. © 2014. All rights reserved.© 2013. All rights reserved. Justus Wilde @JustusWilde jw@amblique.com James Johnson @jimbojohnson James.Johnson@michaelhill.com.au