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HOW TO DIGEST THE
OMNICHANNEL ELEPHANT
Final Report Expert Group Selection
January 2014
Selection as part of the customer
journey towards 2020

Introduction
Selection in 2020
Requirements & Capabilities
Call to...
“The most important thing is, we have
extraordinary respect for customers. We think
people live busy lives and the world’s...
Selection: Second step in customer journeys
An introduction
Selection is the second step in the Customer journey,
one of t...
Why prepare for Selection in 2020
Customer experience leaders outperform the market

© Shopping 2020

5
Customer journeys will be digital and physicial
Report focus: Combining digital experiences and physical stores for Select...
Key questions for customer journeys
From a Selection perspective

© Shopping 2020

7
Selection as part of the customer
journey towards 2020

Introduction
Selection in 2020
Requirements & Capabilities
Call to...
"We see our customers as invited guests to a
party, and we are the hosts. It's our job every
day to make every important a...
Key questions for 2020 customer journeys
From a Selection & Customer perspective

© Shopping 2020

10
Used the four Shopping 2020 shopper types
Shopper stereotypes from expert team Shopper Behavior

Calculating shopper

Deli...
Investigated technologies and enablers

Offerings

Content

Experience

Knowledge

Technologies and enablers that will be ...
Linked shopper types and customer journeys
Stereotypes force thinking , journeys link the support required

The blue build...
How GameStop uses customer journeys
Example of the use of customer journeys
GameStop uses Customer Journey Mapping to have...
Calculating shopper
Calculating shopper

Shopping is work

Source: Dé shopper bestaat niet - almere, 26 september 2013 - e...
Calculating shopper
Calculating shopper

Shopping is work
Make it personal
Personal
discounts

Special price on
limited st...
bol.com
Integrating external suppliers in the site

Calculating shopper

• External suppliers are integrated
into the bol....
Booking.com
Calculating shopper

Easy to find hotelrooms
• Booking.com is one of the largest
hotel intermediaries and has ...
Wehkamp
Customizable search results page

Calculating shopper

• Wehkamp enables the customer to
change the number of item...
Deliberate shopper
Deliberate shopper

Shopping is sports

Source: Dé shopper bestaat niet - almere, 26 september 2013 - e...
Deliberate shopper
Deliberate shopper

Shopping is sports
Make it personal

Make it relevant

Seduce me

Convenient select...
Delaagsterekening.nl
Deliberate shopper

Relevant and to-the-point
• Delaagsterekening.nl analyzes mobile
phone usage of c...
Dell.com
Deliberate shopper

Limiting options to help selection
• Dell has a wide range of laptop
PC’s based on a number o...
ASOS
Complete Product Data: Suitable and fitting

Deliberate shopper

- Almost all of ASOS’ items have a
catwalk view, tha...
Passive shopper
Shopping is like visiting the dentist

Passive shopper

Source: Dé shopper bestaat niet - almere, 26 septe...
Passive shopper
Passive shopper

Shopping is like visiting the dentist
Make it personal
Personal
profile
Limited
assortmen...
Wegmans (and others)
Passive shopper

Purchase history
Question:
• How do I access my Shoppers Club
past purchases to buil...
Amazon Prime
Subscription model lowers barriers

Passive shopper

• Amazon offers a (shipping)
membership model
• The cust...
Thuisbezorgd.nl
Four pages only for a complete order

Passive shopper

• Four pages are enough to buy from the
largest ass...
Passionate shopper
Passionate shopper

My hobby is shopping

Source: Dé shopper bestaat niet - almere, 26 september 2013 -...
Passionate shopper
Passionate shopper

My hobby is shopping
Make it personal

Make it relevant

Surprise me

Convenient se...
Zara
Passionate shopper

Every time, a new collection
• Feels like a new store with every visit
• Many different collectio...
BMW
Passionate shopper

Product page
• Custom layout and content for the
introduction of a new product, adapted
to its pro...
Burberry
Coherent choices re. integration online - offline

Passionate shopper

• Comprehensive approach that is
consisten...
Selection as part of the customer
journey towards 2020

Introduction
Selection in 2020
Requirements & Capabilities
Call to...
"We need to use data to start treating people like
individuals, not market segments"
Jill Puleri, VP Global Industry Leade...
Key retailer requirements
From a Selection perspective

© Shopping 2020

37
Provide a differentiated experience
Customer knowledge

Use all the customer information available
Questions re. personali...
Adaptive, interactive & unified experience
Customer knowledge

Risnews: Transforming E-Commerce

• “53% of online merchant...
Adaptive, interactive & unified experience
Let content match customer characteristics
Recommendations to implement:
• Anal...
Accurate & timely information
Content

Invest in accurate (near) real-time data
Information related questions:
• Is there ...
Comprehensive & dynamically managed
Content to match customer characteristics

Content

• Google and/or Microsoft
and/or A...
Comprehensive & dynamically managed
Content

Content match customer characteristics
Recommendations to implement:
Content ...
Customer value management
Customer offering

Big Data is key to profitable business
Customer interaction value questions:
...
Value based offerings
Customer offering

Competing with Amazon is doable
"What is interesting is that when you factor in d...
Value based offerings
Price only is not a viable option for most retailers
Recommendations to implement:
Understand your c...
Setup consistently across touch points
First focus on the context of customer experiences
Customer interaction questions:
...
Recognition & Precision marketing
Forrester: The Rise of (Marketing) Orchestration

Customer experience

Marketing orchest...
Recognition & Precision marketing
Customer experience

Enable fast customer recognition
Recommendations to implement:
• En...
Selection as part of the customer
journey towards 2020

Introduction
Selection in 2020
Requirements & Capabilities
Call to...
As a management team, we began by asking ourselves a
fundamental question: ‘What is our vision?’ And, from very early
on, ...
For BV Nederland
Time to act is now!
General observations:
• Omnichannel knows no boundaries
• New competitors can emerge ...
Selection recommendations
For retailers to get ready for Selection in 2020

© Shopping 2020

53
How to digest the omnichannel elephant
Change is required in many different areas
•
•
•
•

Make your organization flexible...
Knowledge creates kings
Customer knowledge

Understand as much as you can
•
•
•
•
•
•
•
•
•
•
•
•

What do we already know...
Content enables customer journeys
Content is more than information from your ERP
•
•

•
•
•
•
•
•
•
•

Content

Use rich a...
Customer offerings are for shopper types
Align the customer offering with the shopper type
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Cu...
Customer experiences are envisioned
Determine who you want to be in omnichannel
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Customer expe...
Selection shopping list for retailers ...

© Shopping 2020

59
Selection as part of the customer
journey towards 2020

Introduction
Selection in 2020
Requirements & Capabilities
Call to...
Selection – Key step in customer journey
An introduction
The Selection expert team is part of the Customer journey program...
The steps within the Selection path
Element

Description

Shop entrance

Assessment of the shopping navigation structure a...
Selection
Overview of the Bonsing|Mann Customer Journey Model

Selection starts with the Intention to
Purchase a product o...
Four customer stereotypes
GfK shopper stereotyping for Shopping 2020 – Key traits
Working

Sports

A visit to the dentist
...
Over het Shopping2020 programma:
Hoe winkelt de consument in 2020?
•

Shopping 2020 is een onderzoeksprogramma met als doe...
19 Thema’s naar een visie & actieplan voor NL
In elke Expert Team zitten experts uit wetenschap, politiek en bedrijfsleven...
Shopping 2020 wordt mogelijk gemaakt door
Founding Partners, Gastheren, Kennis-, Wetenschappelijke-, Netwerk- & Media-part...
Meer dan 460 experts werken meer dan een ½ jaar aan Shopping2020 mee:

© Shopping 2020

68
The experts of Selection

Toine Bax
eCom Pro
Managing Partner

Bas Minkes
Luxaflex Nederland
Marketing Manager

Kris Boon
...
Jerry J. Stam MBA MsC LLM
IBM - Senior Managing Consultant
Jerry.Stam@nl.ibm.com
+31651285639

© Shopping 2020

www.shoppi...
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2020: How consumers will select and what retailers need to do

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Final presentation as part of the Shopping 2020 research initiative for the Expert team Selection.

Published in: Business, Technology

Transcript of "2020: How consumers will select and what retailers need to do"

  1. 1. HOW TO DIGEST THE OMNICHANNEL ELEPHANT Final Report Expert Group Selection January 2014
  2. 2. Selection as part of the customer journey towards 2020 Introduction Selection in 2020 Requirements & Capabilities Call to action Appendix © Shopping 2020 2
  3. 3. “The most important thing is, we have extraordinary respect for customers. We think people live busy lives and the world’s pretty complicated. So we wanna simplify things”. Ron Johnson, Former Apple Retail head © Shopping 2020 3
  4. 4. Selection: Second step in customer journeys An introduction Selection is the second step in the Customer journey, one of the micro research programs of Shopping 2020 Future Trends Shopper Behaviour Cross Border (e)Commerce Technologisch Future Touchpoints Ecologisch Politiek / Juridisch Key Themes Online ondernemen Business models Veiligheid / Fraude Omnichannel Organisatie De Nieuwe Winkelstraat Supply Chain Customer Journey Orientation Selection Transaction Delivery Customer Care Customer data value management © Shopping 2020 Smarter Shopping 4
  5. 5. Why prepare for Selection in 2020 Customer experience leaders outperform the market © Shopping 2020 5
  6. 6. Customer journeys will be digital and physicial Report focus: Combining digital experiences and physical stores for Selection • The expert team focussed on customer journeys / customer experiences that include offline and online elements for Selection activities of customers • Such combined journeys are more complex to orchestrate and more difficult to realize © Shopping 2020 Picture: http://blumenthals.com/blog/2013/06/17/the-debranding-of-google-local/ 6
  7. 7. Key questions for customer journeys From a Selection perspective © Shopping 2020 7
  8. 8. Selection as part of the customer journey towards 2020 Introduction Selection in 2020 Requirements & Capabilities Call to action Appendix © Shopping 2020 8
  9. 9. "We see our customers as invited guests to a party, and we are the hosts. It's our job every day to make every important aspect of the customer experience a little bit better.” Jeff Bezos, Amazon © Shopping 2020 9
  10. 10. Key questions for 2020 customer journeys From a Selection & Customer perspective © Shopping 2020 10
  11. 11. Used the four Shopping 2020 shopper types Shopper stereotypes from expert team Shopper Behavior Calculating shopper Deliberate shopper Passive shopper Passionate shopper Shopping is work Shopping is sports Shopping is like visiting the dentist My hobby is shopping © Shopping 2020 11
  12. 12. Investigated technologies and enablers Offerings Content Experience Knowledge Technologies and enablers that will be more widespread in 2020 © Shopping 2020 12
  13. 13. Linked shopper types and customer journeys Stereotypes force thinking , journeys link the support required The blue building blocks depict shopper type requirements All four GfK shopper types will likely show up at your stores In the execution phase further segmentation will be needed for your specific formula What will be the potential effect / impact on other shopping types when encountering this customer experience? Colored “clouds” show Selection customer journey steps More detailed customer journeys provide excellent talking points with major stakeholders in your organization The red building blocks depict relevant retailer offerings & capabilities Every customer will choose a shopper type depending on the occasion © Shopping 2020 13
  14. 14. How GameStop uses customer journeys Example of the use of customer journeys GameStop uses Customer Journey Mapping to have clarity on where the customer falls in their purchase path and message them within this context. GameStop then layers in loyalty program data to predict the most relevant products to offer, when, where and how. Selection scope Source: CMO Club: The CMO Guide to Omnichannel Personalization © Shopping 2020 14
  15. 15. Calculating shopper Calculating shopper Shopping is work Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior © Shopping 2020 15
  16. 16. Calculating shopper Calculating shopper Shopping is work Make it personal Personal discounts Special price on limited stock Purchase history Shopping lists Make it relevant Reviews Personal profile Mix ´n match coupons Click & Collect Adaptive website Guides & wizards Customizable search Expert on call Good return policy The top-3 items, he also checks at a price comparison site to validate the promotional offer He checks product information and reviews to validate the item and any recent alternatives Price / product watch Personalized brochures Multi- variant testing Actionable knowledge Convenient selection Price comparisons Simon is triggered by a notification that the cellphone on his wish list, is on promotion SEO / SEA Trigger me Ranked reviews Targetted information Routing / navigation A bundle of the phone with a great designer cover is also in promotion He makes a reservation to pick up both items at the store, as he passes the store anyway. Checking their inventory online The retailer provides all information in a format he likes based on his search preferences Price comparison Coupons Search optimization Package deals Extensive product info Conversational search Quick funnel Free delivery / return Provide content Reser-vations Experience © Shopping 2020 Choice of delivery options In-store navigation Proposition 16
  17. 17. bol.com Integrating external suppliers in the site Calculating shopper • External suppliers are integrated into the bol.com site • Like Amazon, bol.com makes it possible to order directly at other webshops from within the bol.com website • Within a year from the start of this integration, suppliers had added over half a million items to bol.com Source: http://www.emerce.nl/nieuws/zakelijke-verkoop-via-bolcom-beter-verwacht © Shopping 2020 17
  18. 18. Booking.com Calculating shopper Easy to find hotelrooms • Booking.com is one of the largest hotel intermediaries and has a very user friendly website with many filters to optimize the selection for a quick and easy decision making process • The product information is very detailed and includes info on the hotel and the rooms available. • Extensive info also on items such as location info, reviews, product photos, availability and price © Shopping 2020 18
  19. 19. Wehkamp Customizable search results page Calculating shopper • Wehkamp enables the customer to change the number of items shown in the search results pane, as well as the way they are displayed (table, list, collage) • The number of options depends on the amount and detail level of the product information available • Depending on the purpose of the customer (searching for specific item, searching for suitable item within the result set), the favorite display modus is selected © Shopping 2020 19
  20. 20. Deliberate shopper Deliberate shopper Shopping is sports Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior © Shopping 2020 20
  21. 21. Deliberate shopper Deliberate shopper Shopping is sports Make it personal Make it relevant Seduce me Convenient selection Pro-active personal shopper Multi-channel recognition Clear site structure Personalized reviews One-on-one advice Buy one Give one Configurators Location based information Personalized information Personal profile Purchase history Targetted information Personal product page Buy one Give one Subscription delivery Reservations Mary goes to her favourite store downtown to find a new printer. With a store expert she consults a kiosk The kiosk screen shows reviews for printers that she discussed with the expert The in-store expert is able to answer all her queries about printers With a wizard Mary selects the best printer for her. It is only not available in this store However it is in stock in a store nearby They make a reservation, as they only have one in stock The system knows that she has a Windows laptop and an iPad Reviews (shop) In-store experts Extensive product info Excellent search Personal product pages Wizards Best Buy Location based information Triggers & remarketing Customer recognition Reviews on site Ranked reviews Online validation of product Usage videos and narrative Product configurators Quick & Fast to target Actionable knowledge Provide content Experience © Shopping 2020 Proposition 21
  22. 22. Delaagsterekening.nl Deliberate shopper Relevant and to-the-point • Delaagsterekening.nl analyzes mobile phone usage of customers based on the invoices of their operator of the last year • Using that data, the cheapest subscriptions are analyzed • Delaagsterekening.nl “translates” the product specifications of the operators to the most attractive option, from a customer perspective © Shopping 2020 22
  23. 23. Dell.com Deliberate shopper Limiting options to help selection • Dell has a wide range of laptop PC’s based on a number of models, each available with various specifications and configuration • Dell presents three standard configurations for each model: Good, better, best • For key product attributes, it not only shows the technical values, but also visually indicates how the different configurations compare • This reduces the complexity of the selection process, increasing the conversion © Shopping 2020 23
  24. 24. ASOS Complete Product Data: Suitable and fitting Deliberate shopper - Almost all of ASOS’ items have a catwalk view, that shows what the item looks like on a real person - The looks are also described in detail , incl. exact specifications of the materials used, washing etc - A complete size guide helps pick the right size - Asos makes it possible to activate filters from the item view of search results, by eliminating a subset of the search results (‘Hide this brand’). © Shopping 2020 24
  25. 25. Passive shopper Shopping is like visiting the dentist Passive shopper Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior © Shopping 2020 25
  26. 26. Passive shopper Passive shopper Shopping is like visiting the dentist Make it personal Personal profile Limited assortment Reminder service Purchase history Mark’s ran out or razors, so he desperately needs to buy new ones Make it relevant See physical location immediately Recommendations Price confirmation Actionable knowledge Convenient selection Reviews Wizards Very clear navigation Ranked reviews Return policy Subscriptions Less choice Video usage instruction Simple Usage stories Return policy Complete Looks A presentation of the three top selling shaving foams grabs his interest He checks the website of his favourite drugstore for recommendations Direct Q: what are you looking for? Help me The straightforward navigation make it easy for Mark to select razors and foam Reviews from people with the same skin type help in the decision making process In addition to a regular purchase, the store offers him a subscription model, with new razors every month Home delivery and fre returns saves him from a trip into town Relevant summary Search in filtered assortment Reputation Reliable Simple Pick-up / home delivery Subscription Quickly to detail to show results Stock information in physical store Easy reordering Confirmation Allow for free returns Lowest price guarantee Provide content Experience © Shopping 2020 Proposition 26
  27. 27. Wegmans (and others) Passive shopper Purchase history Question: • How do I access my Shoppers Club past purchases to build a shopping list? Answer: • Go to products tab and tap "Your name's purchases". There is a rolling 15 months of purchase history available. This data is only available when a Shoppers Club card, keytag or phone number is used at the time of purchase. © Shopping 2020 27
  28. 28. Amazon Prime Subscription model lowers barriers Passive shopper • Amazon offers a (shipping) membership model • The customer can buy without paying (extra) for shipping • Thus Amazon removes an important barrier to buy and receive purchases at home • This creates lock-in and stimulates impulse buying • In addition to free shipping, members are entitled to other benefits including video and e-books © Shopping 2020 28
  29. 29. Thuisbezorgd.nl Four pages only for a complete order Passive shopper • Four pages are enough to buy from the largest assortment of delivered meals in the Netherlands • Large selection of local meal delivery companies (total 4500 restaurants) • Complete with reviews • Pay online or at delivery • Order/delivery tracking service © Shopping 2020 29
  30. 30. Passionate shopper Passionate shopper My hobby is shopping Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior © Shopping 2020 30
  31. 31. Passionate shopper Passionate shopper My hobby is shopping Make it personal Make it relevant Surprise me Convenient selection VIP priviliges retention. Social media Personalized offer Video reviews Special atmosphere Workshops Community building Group shopping Multi-channel recognition Profiling C2C interaction Social media sharing discounts Entertainment Related samples Virtual wardrobe Pop-up stores Via the web she invites a friend, who cannot attend in person for advice to watch the red carpet videos Jody ready a blog on a trendy form on a new pop-up store of her favorite brand The store sends Jody´s friends coupons for group shopping with a discount valid for a week The store has an electronic mirror. Showing all kinds of additional information She marks some items she wants to try on, and shares them with her online friend The mirror lists the best selling accessoires that go with the dress Blogs video forums Tip a friend for discount Social Lifestyle tips Surprising Group shopping Cross marketing Multi-channel recognition Incorporate reviews, ratings blogs Celebrity role model Theme shopping Make customer shine (expert) Actionable knowledge Provide content Experience © Shopping 2020 Back home, Jody puts new images on facebook, pinterest and twitter of her new dress Extended isle Invite a friend Trendsetter Free wifi Proposition 31
  32. 32. Zara Passionate shopper Every time, a new collection • Feels like a new store with every visit • Many different collections per season • Each store can optimize their assortment • Quick response to trends and customer demands • Many changes in store layouts, because of changing assortments • Zara has become (one of the) largest fashion retailers in the world. © Shopping 2020 32
  33. 33. BMW Passionate shopper Product page • Custom layout and content for the introduction of a new product, adapted to its proposition • Combining news, video, infographics, product information and live social media data from Facebook, Instagram, Foursquare, Youtube and Twitter. © Shopping 2020 33
  34. 34. Burberry Coherent choices re. integration online - offline Passionate shopper • Comprehensive approach that is consistent with brand strategy • Expanded the function of the traditional physical fashion store • Well executed integration of online functionality with offline elements for improving shopping experience • Online functionality translated to offline store, e.g. additional product information made available using RFID, interactive mirrors © Shopping 2020 34
  35. 35. Selection as part of the customer journey towards 2020 Introduction Selection in 2020 Requirements & Capabilities Call to action Appendix © Shopping 2020 35
  36. 36. "We need to use data to start treating people like individuals, not market segments" Jill Puleri, VP Global Industry Leader Retail IBM © Shopping 2020 36
  37. 37. Key retailer requirements From a Selection perspective © Shopping 2020 37
  38. 38. Provide a differentiated experience Customer knowledge Use all the customer information available Questions re. personalization: • Do you know how customers would like to interact with your brand? • Do you have a unified source of customer information? • Do you use the customer information for more than personalized emails? • Do you use customer information to provide differentiated experiences in all the channels you sell in? According to a recent survey of marketing executives 69% agree that consumers expect the kind of relevant offers and interactions such insight allows, yet only 12% said they are leading edge at it. http://www.accenture.com/us-en/Pages/insight-whats-data-worth-summary.aspx © Shopping 2020 38
  39. 39. Adaptive, interactive & unified experience Customer knowledge Risnews: Transforming E-Commerce • “53% of online merchants report an increase in returning visitors when using personalization” • “So, what does it take to really change shopping? One key is to bring the best of the offline world to the online world, and this can be summed up in the seamless way we "discover" in physical environments and the way we "learn" about new products” http://risnews.edgl.com/retail-trends/Transforming-E-Commerce--The-Introduction-of-Artificial-Intelligence89479 Picture: http://www.teachrite.com/blog/index.php/personalized-learning-defined/ © Shopping 2020 39
  40. 40. Adaptive, interactive & unified experience Let content match customer characteristics Recommendations to implement: • Analyse and use customer data to personalize the experience • Create actionable clusters based on the customer’s response to various dimensions of your value proposition • Create adaptive / interactive products, with the following characteristics: • Configurable products tailored to the customer profile • Matching product information the customer needs to decide • E.g. Netflix created products (content) matching customer profiles Customer knowledge Tooling: • Customer analytics tooling • Next Best Action • Customer recognition technology: • iBeacons • Loyalty cards © Shopping 2020 40
  41. 41. Accurate & timely information Content Invest in accurate (near) real-time data Information related questions: • Is there a unified source of data across the company ? • What information does your customer need to select an item and feel confident? • Does that product information include video, reviews, blogs etc ? • Is the information optimized for the various mediums used to access it: tablet, desktop, kiosk, store ? • Does search provide (near) real-time results ? • Can you provide accurate stock and delivery information? “Where the whole thing was lacking for me was in the multichannel integration. There’s no way (other than with an associate’s iPad) for a customer to access their online account, pull up their wish list, or pre-shop in a connected way. Online social content isn‘t really represented (and) there’s no online payment integration.” © Shopping 2020 Forrester in a blog on Burberry 41
  42. 42. Comprehensive & dynamically managed Content to match customer characteristics Content • Google and/or Microsoft and/or Apple often already manage your calendar , your address book, your email, your apps and most of your searches. • Now imagine they engineer engines that generate custom to-do lists for you as targeted —or as comprehensive—a weekly/daily/hourly/ real-time to-do list you think you might want or need. © Shopping 2020 42
  43. 43. Comprehensive & dynamically managed Content Content match customer characteristics Recommendations to implement: Content & Data are king: • Relevant content • Right touchpoint • Right timing • Right customer • Structured & Normalised content Tooling: • Master Data Management • Customer analytics tooling • CRM systems • Web analytics • Location technology • Advanced designs • Smart mirrors © Shopping 2020 43
  44. 44. Customer value management Customer offering Big Data is key to profitable business Customer interaction value questions: • Which 20% of customers generate 80% of the profits, now and in the future? • What 20% of customers facilitate 80% of the most helpful referrals? • Once you know what your 80/20 clients look like, who should you be targeting at your rivals? “Segmentation vs. customization seems destined to become one of the most interesting debates this decade. Ironically but appropriately, the best answers will be found in the fusion of Big Data and 80/20 analytics.” http://blogs.hbr.org/2013/11/how-is-big-data-transforming-your-8020-analytics/?utm_medium=referral&utm_source=pulsenews © Shopping 2020 44
  45. 45. Value based offerings Customer offering Competing with Amazon is doable "What is interesting is that when you factor in different retail competitive strategies like carrying a different assortment, leveraging private label, delivering targeted customer promotions, and creating unique customer experience in addition to price leadership, it certainly appears that retailers are learning how to compete with Amazon." http://risnews.edgl.com/retail-trends/who-s-the-fairest-retailer-of-them-all-89478?postalcode=1066v&referaltype=newsletter © Shopping 2020 45
  46. 46. Value based offerings Price only is not a viable option for most retailers Recommendations to implement: Understand your competitors weaknesses: Analysis shows that also Amazon does have weak spots, and that retailers can compete with the online giants, especially if they can beat them on other non-price purchase factors Carry different assortments, leverage private label, deliver targeted customer promotions, and create unique customer experiences in addition to price leadership Customer offering Tooling: • Dynamic pricing technology • Distributed order management • Advanced promotions technology • Product customization options • Lockers • Multiple delivery options © Shopping 2020 46
  47. 47. Setup consistently across touch points First focus on the context of customer experiences Customer interaction questions: • Who are we interacting with? • Identification • What do we offer? • Product, service, experience etc • When does he buy from us? • Context, lifecycle, need • Where do we deliver? • Destination, purpose • Why would he buy from us? • Connection, emotion, values Customer experience "We're a service company that just happens to sell shoes.“ Tony Hsieh, CEO, Zappos.com “PetSmart is the largest specialty pet retailer of services and solutions for the lifetime needs of pets” PetSmart mission statement © Shopping 2020 47
  48. 48. Recognition & Precision marketing Forrester: The Rise of (Marketing) Orchestration Customer experience Marketing orchestration is an approach to marketing that focuses not on delivering standalone campaigns, but instead on optimizing a set of related cross-channel interactions that, when added together, make up an individualized customer experience. © Shopping 2020 48
  49. 49. Recognition & Precision marketing Customer experience Enable fast customer recognition Recommendations to implement: • Enable fast customer recognition • Provide personal recommendations based on customer information • Stores are places for shoppers to connect, discover, share and personalize their experiences • Digital touchpoints are responsive and even more personalized Tooling: • Advanced digital platforms • Customer analytics tooling • Web analytics • Dynamic pricing technology • CRM systems © Shopping 2020 49
  50. 50. Selection as part of the customer journey towards 2020 Introduction Selection in 2020 Requirements & Capabilities Call to action Appendix © Shopping 2020 50
  51. 51. As a management team, we began by asking ourselves a fundamental question: ‘What is our vision?’ And, from very early on, we decided we were going to be a design, marketing and retail-led organization. This was our high-level vision. From there we began to develop our five-year strategy, asking: What do we have that our peers don’t - other than the fact that we are much smaller, a standalone company and with little cash to invest? Digital Leadership An interview with Angela Ahrendts, CEO of Burberry © Shopping 2020 51
  52. 52. For BV Nederland Time to act is now! General observations: • Omnichannel knows no boundaries • New competitors can emerge faster than ever before • The retail landscape itself is under multiple threats • Growing power of a few players What it means for retailers • A growing divide between the “act nows” and the “wait and sees” • The survival of the smart retailers • Being stuck in the middle is even worse than it was! © Shopping 2020 52
  53. 53. Selection recommendations For retailers to get ready for Selection in 2020 © Shopping 2020 53
  54. 54. How to digest the omnichannel elephant Change is required in many different areas • • • • Make your organization flexible and live the cultural change required Make solutions (internally and externally) connected and scalable Don´t be afraid to (use and) throw away (existing) solutions Make technology an integral part of your solutions But first and foremost: Let your customers be your guides © Shopping 2020 54
  55. 55. Knowledge creates kings Customer knowledge Understand as much as you can • • • • • • • • • • • • What do we already know of this customer What information do we already have on him What is the customer (lifetime) value Is it realistic and beneficial to us to create a relationship What role does our customer play in this decision making process Decision maker online vs decision maker in stores Where is the customer with regard to duration / timing Not all customers decide today and need it within the hour What role does price play Role of search engines and review sites What incentives work(ed) with this customer Improve profitable conversion © Shopping 2020 55
  56. 56. Content enables customer journeys Content is more than information from your ERP • • • • • • • • • • Content Use rich and accurate product data Reliable, structured and normalized data is (even) more important than incorporating photo´s, video´s, reviews, blogs, forums Make product information comparable Provide product information in consistent, comparable views Redefine products Offer subscriptions, bundles, experiences, value patterns Simplify complex products Provide wizards, configurators, kiosks, remote experts Optimize search functionality Optimize search based on customer profile, preferences and behavior © Shopping 2020 56
  57. 57. Customer offerings are for shopper types Align the customer offering with the shopper type • • • • • • • • • • • • • • Customer offering Put the customer at the heart of your decision making Enable personalization, personal profiles etc Define end-to-end customer offerings Including returns, refunds Understand the role of shared values, communities Price is not always the key differentiator Start with the mobile experience in mind Desktop and laptop are becoming less important Enable fast opportunity based navigation Simplify as much as possible Offer wizards and preselections Offer options for quick selection, navigation and configuration Use remarketing to increase conversion Using shopping basket, recently viewed, previous purchases © Shopping 2020 57
  58. 58. Customer experiences are envisioned Determine who you want to be in omnichannel • • • • • • • • • • • • • • Customer experience Decide on your “role in retail” For example Superaggregator of Professional curator What role do you want your brand(s) to play As related to experience and relevance in decision making process What role do you want others to play Use of partner programs, shared lockers, use of LSP´s What is your preferred degree of cross-channel integration when For example Order online, add to basket in store How do you plan to use visuals / content in the overall experience Visuals become ever more important What is the role of your store employees Define their role in the overall customer experience How do you plan to use assortment / products Use products / assortment to create compelling customer journeys © Shopping 2020 58
  59. 59. Selection shopping list for retailers ... © Shopping 2020 59
  60. 60. Selection as part of the customer journey towards 2020 Introduction Selection in 2020 Requirements & Capabilities Call to action Appendix © Shopping 2020 60
  61. 61. Selection – Key step in customer journey An introduction The Selection expert team is part of the Customer journey program, the micro research program of Shopping 2020 Future Trends Shopper Behaviour Cross Border (e)Commerce Future Touchpoints Technologisch Ecologisch Politiek / Juridisch De Nieuwe Winkelstraat Supply Chain … Key Themes Online ondernemen Business models Veiligheid / Fraude Omnichannel Organisatie Customer Journey Orientation Selection Transaction Delivery © Shopping 2020 Customer Care Smarter Shopping Customer data value management 61
  62. 62. The steps within the Selection path Element Description Shop entrance Assessment of the shopping navigation structure and the extra features presented on the homepage and in the navigation menu at the start of the shipping process. How can you find your way and how are you invited to start shopping Shop interface How can you get to the product. Can customers customize the number of products they see and the order in which they are presented. What are the key interface elements. Are there multiple ways to find the product. How many clicks does it take to get to the product Assortment structure & product search How is assortiment structured. Are there 3rd party products, how are they integrated in assortment structure and search. How is product structured; functional (product categories, price etc.) or also on theme´s, styles, prices, etc. How are refine options structures. How advanced is search, does it use auto complete. Are there more advanced orientation and guidance tools. Product information What product information is available. How many product images, videos, zoom options, multiple angle views. How extensive is the product information. Are there user reviews, expert opinions. Are the product help tools in place (size charts, select & compare). Is product availability and delivery time information adequate. Price & delivery information This dimension contains checkpoints concerning the price and delivery information on the product information page; Is price information correct and complete. Does it show whether or not taxes are included and if not how high they can be. Is there information about available and is there an indication of delivery time and shipping costs etc Selection enhancement What is used to stimulate and enhance conversion, cross and up sell, Select & Compare, combination suggestions, recommendations etc. Selection flows How many steps does it take to put a product in the basket. Is there an option for fast selection, quick navigation etc. © Shopping 2020 62
  63. 63. Selection Overview of the Bonsing|Mann Customer Journey Model Selection starts with the Intention to Purchase a product or service and ends with a selected product and/or service, ready for Transaction © Shopping 2020 63
  64. 64. Four customer stereotypes GfK shopper stereotyping for Shopping 2020 – Key traits Working Sports A visit to the dentist Hobby 19% 27% 28% 26% Calculating shopper Deliberate shopper Passive shopper Passionate shopper Budget, deliberate, not sensitive to brands or hypes Planned shopping, quality and service Shopping is a necessary evil Seeks ensurance in service Shopping is fun, bargains, sensitive to trends and hypes, feel good 50% female 51% female 62% male 67% female 40-64 jaar 20-39 jaar 50+ < 29 Household 3-5 Household 2-4 Single households Household 3-4 Lower incomes Higher incomes Average incomes Lower incomes Average education Higher education Lower education Average education Desktop & laptop shopping Desktop, laptop & tablet shopping Desktop & smartphone shopping Multi-device shopping No delivery preference Home delivery preference No delivery preference Collect preference Easy to reach stores, parking and known retail chains Environment, diversity, small boutiques Easy to reach stores, parking and safety Number and diversity of stores, known chains and small boutiques Physical store because: No hassle, as usual, look at products, faster Physical store because: Better info, can also buy other products, best advice Online because: Better information, saves money, one stop shopping, faster & easier Online because: Better information Physical store because: trustworthy, Better experience than online, easier, advise, better price, faster, attention / more convenient, service, outing service, support local entrepreneurs © Shopping 2020 - - 64
  65. 65. Over het Shopping2020 programma: Hoe winkelt de consument in 2020? • Shopping 2020 is een onderzoeksprogramma met als doel het beantwoorden van de volgende centrale vraag: ‘Hoe shopt de consument in 2020 en welke acties moeten worden ondernomen op nationaal, branche en bedrijfsniveau opdat B2C Ondernemend Nederland succesvol hier op in kan spelen, nationaal én internationaal?’ • • • Reden voor het onderzoeksprogramma is dat het huidige retail-, finance- en travel speelveld snel verandert: • Veranderend consumentengedrag (van single naar omnichannel); • Disintermediatie van ketens (producenten gaan direct verkopen); • Opkomst van nieuwe media (Google glasses, voice/virtual recognition) • Digitalisering van producten (gaming, 3D printing); • Internationalisering & hypercompetitie (Amazon, Zalando), etcetera Veel ontwikkelingen zijn universeel en brancheoverstijgend. Ondanks de economische crisis, moeten bedrijven zich herpositioneren om na 2020 nog bestaansrecht te hebben. Shopping2020 ondersteunt bedrijven in de creatie van hun visie hoe zijn zich in 2020 moeten positioneren. Source: http://www.zazzle.nl/nederland_de_nederlandse_macht_van_het_honkbal_van_tas-149333394796361450 © Shopping 2020 65
  66. 66. 19 Thema’s naar een visie & actieplan voor NL In elke Expert Team zitten experts uit wetenschap, politiek en bedrijfsleven Future Trends Shopper Behaviour Cross border (e)Commerce Technological Future Touchpoints Ecology Customer Journey Political / Legal Key Themes Orientation Selection Shopping2020 Vision Transaction Delivery Action Plan Shopping2020 Customer Care Customer Data Value Management Business Models Omnichannel Organization Security & Fraud The New Shopping Street Supply Chain Travel Action plan Retail Action plan Smarter shopping Finance Action plan Action plan Online Entrepreneurship © Shopping 2020 66
  67. 67. Shopping 2020 wordt mogelijk gemaakt door Founding Partners, Gastheren, Kennis-, Wetenschappelijke-, Netwerk- & Media-partners Commissie van Aanbeveling Ed Nijpels (voorzitter) Bernard Wientjes (VNO-NCW) Arie van Bellen (Directeur ECP) Martijn van Dam (kamerlid PvdA) Jan Kees de Jager (vml. Min. Fin.) Cor Molenaar (Erasmus Universiteit) Kitty Koelemeijer (Universiteit Nyenrode) Walther Ploos van Amstel (VU) Erik Fledderus (Directeur TNO) Heleen van Oord (Directeur DQ&A) Giovanni Colauto (CEO Bijenkorf) Harry Bruijniks (CEO Euretco) Ronald van Zetten (CEO Hema) Joost Romeijn (CEO Sundio Group) Paul Nijhof (vml. CEO Wehkamp) Annemarie van Gaal (CEO van Gaal) Herna Verhagen (CEO PostNL) Nick Jue (CEO ING NL) Michiel Buitelaar (COO Sanoma Media) Danny van der Eijk (Chairman Achmea) Harry van Dorenmalen (CEO IBM Europe) Program Board Support Team Program mgt: Jorij Abraham Mar/Com: Inge Demoed Research: Eveline Poerink Congres: Marin Wiellersen Travel Future Trends Dymfke Kuijpers Key Themes Expert Team Shopper Behaviour Expert Team Cross Border (e)Commerce Expert Team Technologisch Expert Team Future Touchpoints Expert Team Ecologisch Expert Team Politiek / Juridisch Expert Team Online ondernemen Expert Team Business models Expert Team Veiligheid / Fraude Expert Team Omnichannel Organisatie Expert Team De Nieuwe Winkelstraat Expert Team Supply Chain Expert Team Orientation Expert Team Selection Expert Team Transaction Expert Team Delivery Axel Groothuis Customer Journey Finance Retail Arjen Bonsing Founding Partners: Kennis partners: Wetenschappelijke partners: Expert Team Customer Care Netwerk partners: © Shopping 2020 Smarter Shopping Expert Team Customer data value management Media partners: 67
  68. 68. Meer dan 460 experts werken meer dan een ½ jaar aan Shopping2020 mee: © Shopping 2020 68
  69. 69. The experts of Selection Toine Bax eCom Pro Managing Partner Bas Minkes Luxaflex Nederland Marketing Manager Kris Boon Sanoma Media Business Dev´ment Wouter de Vreeze Bol.com Business Development Peter Vogel Blokker Nederland Manager eCommerce Michael Christianen Adidas Analytics & Insights Pieter Both GrandVision Group eBusiness Mgr Marloes Batelaan KPN E-Business Marketeer Martijn Visser BOVAG Marketing manager Frans van der Werff VakantieXperts Internet manager Auke Meulenbroek Maxeda / Praxis E-commerce-Online Sheila Keizer DMG Web Manager Gertie Bin Omoda Manager online shop Myrah Wouters Mediq Manager eHealth Maurice van der Sterren IBM GBS Managing consultant Alon Ben Joseph Ace Luxury Group Co-CEO Wouter Hylarides Mediq eBusiness Marketeer Jerry J. Stam IBM GBS Sr Managing Consultant Peter Sparreboom EUR (Erasmus) Promovendus Eva Koppers Etam E-commerce manager © Shopping 2020 69
  70. 70. Jerry J. Stam MBA MsC LLM IBM - Senior Managing Consultant Jerry.Stam@nl.ibm.com +31651285639 © Shopping 2020 www.shopping2020.nl @ibm_retail_nl nl.linkedin.com/in/jerrystam 70
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