• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
The future of retail in a digital world
 

The future of retail in a digital world

on

  • 958 views

A future digital world for Retail

A future digital world for Retail

Statistics

Views

Total Views
958
Views on SlideShare
943
Embed Views
15

Actions

Likes
1
Downloads
33
Comments
0

3 Embeds 15

http://www.linkedin.com 11
https://www.linkedin.com 3
https://twitter.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    The future of retail in a digital world The future of retail in a digital world Presentation Transcript

    • A Strategic Vision for a Retail Future // September 2012A Strategic Vision for a Retail Future © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 AGENDA FOR TODAY 1.  Retail + Commerce 2.  Digital context + Implications 3.  Connected everythingContext 4.  Strategic framework 5.  Conceptual execution 6.  Strategic Roadmap 7.  Questions and answers © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012BACKGROUNDMany traditional retailers have not effectively adopted multi-channel retailexperiences and remain exposed to the significant risk of being left behind bymore agile, digitally-savvy competitors. And yet there is another reality that ofthe shopper. One might use words like “empowerment, transparency, ease-of-use and convenience” to describe the evolving experience for the digitally-savvy-shopper,"This presentation will provide a snapshot of both these realities, it will showcasetrends that are driving change within retail and can be leveraged by retailers tocompete in the modern retail marketplace. © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012WHAT IS COMMERCEThe current market placeWalk down any High Street and you can see the biggest forcesrevolutionising shopping habits as the meteoric rise of Google, Amazon,Apple and Facebook (or the Gang of Four as they are known) have fastbecome a normal part of our day-to-day lives.""These and other innovative companies have changed our expectationsabout shopping and are forcing regular High Street retailers to up theirgame in response.""The future offers shoppers the best of both worlds, with smart retailersadopting the digital innovations from these companies to create an evenmore compelling experience for customers."""Were standing on the edge of a new digital era"Those retailers that can effectively harness the power of digital will findthat their high street stores go from strength to strength”""" © Matt Butterworth 2012!!
    • A Strategic Vision for a Retail Future // September 2012WHAT IS COMMERCECommerce is at the heart ofeverything, otherwise there is nopoint in being a retailer…. Ecommerce is everything from personalisedrecommendations to full transactions"Include instore and point of sale"Online - pervasive and consistent customerexperiences 
Why should an in-store experience differ from an on-line experience""!! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 “empowerment, transparency, ease-of-use and convenience” describe the evolving experience for the “digitally”-savvy-shopper…. So it got me thinking…..! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012CASE STUDYConvenience for consumersThe ground-breaking mail order operation, nextdirectory catalogue launched in 1988 with a hardbackbook containing 350 pages, creating the blueprint forcatalogue retailing.""Its changed the industry overnight""Cutting edge design (Why not Associates)""This year this sales at its online and cataloguebusiness have smashed through the £1bn barrier forthe first time. the groups 25-year-old Next Directoryis also set to deliver a 16 per cent rise in operatingprofit to £257m over the year to 28 January. 
This means the FTSE 100 companys catalogue unitmade more money than the John Lewis Partnershipseponymous department store and nearly as much asthe JLP-owned grocery chain, Waitrose, over thesame period""! © Matt Butterworth 2012!
    • A Strategic Vision for a Retail Future // September 2012CASE STUDYConvenience for consumersTesco QR Code Subway StoreSubway / billboards walls are plastered with posters thatresemble the aisles and shelves of a supermarket. "They’re lined from top to bottom with the products you’dnormally see while grocery shopping. "The only difference is that you can’t just grab the productand check out. "The groceries each have a QR code which the shopperscans with a smartphone camera and adds to a shoppinglist. "When the shopper has scanned all the codes for all thegroceries needed, he pays using his phone and thegroceries are then delivered to his home."""! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012Digital Context © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT Fragmentation will get worse" before it gets better… Context © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT We are moving towards the ‘always on’ digital age… Microsoft predicts that by 2014 mobile internet access will overtake PC internet access" Tablet sales are forecast to outstrip PC sales by 2015*"Context from stationary to ubiquitous computing We have moved © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT Fragmentation and the always on consumer present brands with serious challenges - Multi- Platform / Format Content"Context - Attention" - Speed" - Understanding © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT Understanding context will become paramountContext © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT Real time marketing requires an end to siloed thinking “Marketers’ long-standing challenges — such as siloed measurement, disjointed customer experiences, and flawed attribution — are stillContext serious problems, and the convergence of several market factors puts the online marketing suite back on the table” "
 “Management of digital strategy and Forrester 2011! communications remains siloed...” 
 ! Forrester 2011 ! ! ! ! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT The near future…enterprise organisations will manage communications through an interconnected digital hubContext © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012Digital implications © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL IMPLICATIONS Develop a deeper understanding of the" retail audience Depth interviews/ethnography" Tap into private communities to gain a deeper understanding of the impact of digital technologies on behaviours and expectations"Context purchase path behaviours through attribution modelling" Understand ! ! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012DIGITAL IMPLICATIONSUse insight to develop core personas andintelligence that inform digital strategy © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012DIGITAL IMPLICATIONSUse this insight todevelop touch-pointmodels for each persona "(or segment dependingon your preference) © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL IMPLICATIONS One size doesn’t fit all…. Different territories have different requirements" Perception of brands"Context Channel Behaviour" Cultural differentiation" " " " ! ! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012DIGITAL IMPLICATIONSBegin to plan for the age of real-time marketing - removechannel silos, focus on data integration and mining and beginto develop a digital nerve centre for retailers © Matt Butterworth 2012
    • Retail and the future of(e)commerce… © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 RETAIL AND THE FUTURE IN A DIGITAL WORLD Ideas UtilityContext Inspiration Curation © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDDisruption has become the norm Amazon Kindle" revolutionised " Facebook" App store" publishing" Social " Transformed mobile" (Age: 2yrs 3 months)" communication" (Age: 4 years)" (Age: 5 ¾ years)" iPad" YouTube" 1st successful tablet" iPlayer" Online video" (Age: 2 years)" Mainstream online " (Age: 6 years)" Viewing" (Age: 3 yrs 3 months) " © Matt Butterworth 2012
    • And its about toaccelerate… © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDWe are moving into theage of the digital eye…firstwith our phones… © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDBut soon with very trendyeyewear © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDThe world will be augmented by awealth of virtual data…introducingus to new experiences (and totalstrangers!)…“Sonar is a mobile application that helps you learn aboutand connect with likeminded people nearby." ""It works by geotracking your current location à laFoursquare check-ins and aggregating public informationfrom your social networks (Facebook, Twitter, Foursquare,etc)""! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT Our phone and glasses will know everything about usContext © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 DIGITAL CONTEXT In time….Context © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDPayment will be contactless…///NFC is a short-range wireless technology thatenables devices to exchange data without aninternet connection" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDRetailers products andmarketing collateral will act asa gateway to a wealth ofproduct and brand information © Matt Butterworth 2012
    • Connected everything © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDOver 1/3 of Europeans willhave a connected TV by 2014In the eyes of the viewer content simplybecomes content, accelerating the movetowards rich, high quality branded experiences"(think Audi TV, BMW TV)""""" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDWe will soon be buying fromour favourite showsThe contents of shows will become searchable.The metadata will include everything about theshow but also about the clothes, products, andlocations…" BUY NOW © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDAnd when in the real world, wewill share our shoppingexperiences with our socialgroup in real time © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDAnd retailers will providerealtime instore CRM Real time CRM with"personalised…""-  Guides"-  Content "- Offers"-  Discounts"Based upon cross-channel behaviours, previousresponses, browsing behaviour, social network"" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 From e-Commerce to Social Commerce“social commerce is the next area to really blow up”"Mark Zuckerburg © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012SOCIAL COMMERCETrickle of brands selling throughFacebook is threatening to becomea delugeSocial shopping is gatheringmomentumMobile sharing apps will soonbecome commonplace © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012SOCIAL COMMERCERevenue forecasts support thehype around social commerce &the audience (particularly youngadults) are open to influence andsharing… Source: JWT 2012! Source: emarketer 2011! © Matt Butterworth 2012
    • So why don’t Retailersjust dive in…..? © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012SOCIAL COMMERCESocial networks are primarilyabout communication, notshopping….. Source: Forrester 2011! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012SOCIAL COMMERCEResults from social commerceinitiatives are poor & unsurprisinglysocial has not proved a greatacquisition tool © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012SOCIAL COMMERCEAnd privacy remains a hugeconcernWhen asked about personalised recommendations basedupon Facebook profiles (US and UK)"72% said “it feels like big brother is watching me”"56% “feel violated”"76% “prefer to find things on my own”" Source: JWT! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012So what role should digital play forRetailers? © Matt Butterworth 2012
    • Create brand differentiation &preference for Retailers © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012 CURRENT STATE OF PLAY © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDFor retailers, it is critical todifferentiate your products atthe moment of truthEven Google accept that the originalFMOT is still often critical to the buyingdecision" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012RETAIL AND THE FUTURE IN A DIGITAL WORLDFMOT: " ZMOT:A consumer would get to the shelf, pick up a bag Consumers are going to the internet andof Chocolate Chip Cookie Mix and follow the researching the cookie recipe in advance ofrecipe on the back of the bag, possibly keeping buying a bag of Chocolate Chip Cookie Mix fromthe physical bag to keep a record of the recipe." a store shelf.Consumers found out about a retail promotional Consumers become aware of these events inevent (like 20% off all Autograph selection)) via advance either through e-mail newsletters,stumbling upon it, or by seeing a flier posted in becoming fans on networking sites, or followingthe paper brands on sites like Twitter. Not only that, but they can tell hundreds of their friends and family all about it in real time with one quick social networking status post." ."Consumers waited for their monthly Retail Consumers are going online to find inspiration formagazine issue to arrive, to learn about the next their own looks, and to get tips and tricks fromseasons hot looks" experts -- or to take their cues from a favourite celebrity or friend. © Matt Butterworth 2012
    • Some initial ideas…. © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR Retailers1. Service with an opt in…Give me personal attention and better service…""Retailers ask shoppers to trade personal data toreceive a better service" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&SNeiman MarcusLocation aware app provides sales-staff with customerpreferences to create heightened level of personalization to itsin-store shopping experience""Program the app’s preferences to automatically alert salesstaff when they enter a store."Provide staff with instant access to their shopping history andFacebook profile image."“Check-in” whenever they are ready for assistance. ""The app also allows shoppers to see which sales associatesare in-store, message and make appointments with anassociate of their choice, scan QR codes to unlock productinformation and trends as well as mark their favorite products– all of which, can automatically be made available to staff,helping associates make smarter recommendations aboutwhich products are right for each of their customers." © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&S2. Auto Curated shoppingLet me shop for what I like""Retailers leveraging shoppers social data andpurchase history to create customized browsingexperiences""Glimpse by find"A Facebook shopping discovery app that is builton top of Facebook “like” data. The app curatesshopping pages for users based on their likes, aswell the stuff their friends like.""When a Glimpse user likes a page, the servicecan determine what product the URL is referringto, can pull up the most recent availability andpricing data and also fit it into different styles andtrends""" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&S3. Group power is being harnessedwith crowd led product ranges“Let me help decide what’s being sold”""New affordable clothing range"Launched at New York Fashion week with a cat walkparade"Designs voted on by the eBay community"Most popular designs go into production" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&S4. Mass customisation &personalizationNIKEiD allows customers to design their own trainers,specifying every aspect of the design""Moving forward, consumers will expect higher levels ofpersonal design choices""Positives and negatives""Pricing done what people will pay for it""! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&SModclothStylists look to your past purchases to tailor advice to makemore personalized product recommendations""Integrated a live-chat feature on its Facebook page whichallows customers to submit personal data and receiverecommendations based on their unique preferences andspending habits""Shoppers to submit information around their interactions withthe brand, including past purchase history, ‘loved’ items andcurrent wishlists""Recently launched a Make the Cut Contest, where customerssubmitted their sketches, went through a social media votingprocess, and the actual garments were brought to life andsold on the site. © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&S5. Virtual SamplingHelp me choose the perfect fit""Upcload is a webcam enabled Algorithim ensuringcustomers find the right fit online"""! © Matt Butterworth 2012
    • Strategic Roadmap…. © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&SInsight - where is the store in theconversation?Today bricks & mortar stores still generate the lion shareof revenues for most retailers…""Yet the store gets little attention in the cross channeldiscussion ….why?""Store systems are too old and too inflexible to add muchvalue to the cross channel discussion.""Today, old, clunky, POS & store systems force you to treateveryone the same - one size fits all…""Meaning you can’t react quickly to changing customer orbusiness needs"" © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012A PROPOSED ROADMAP FOR M&SPhase OneProviding the tools and content thatmeet the expectations of today’s digitalconsumer and providing a solid digitalplatform for future development."Phase TwoProviding a demonstrably differentiatedand superior customer experience thatdelivers on the brand proposition acrosseach and every digital interaction." © Matt Butterworth 2012
    • So in conclusion!! © Matt Butterworth 2012
    • A Strategic Vision for a Retail Future // September 2012CONCLUSION // STRATEGIC TAKEOUTS1.  Don’t remain exposed to the significant risk of being left behind by more agile, digitally-savvy competitors. 2.  Fragmentation will get worse before it gets better3.  Real time marketing requires an end to siloed thinking4.  Develop a deeper understanding of the retail audience5.  Develop a rigorous governance model6.  Prepare for a world that will become interconnected7.  Don’t run before you can walk8.  Data, Data, Data © Matt Butterworth 2012
    • Matt Butterworth
Email mattbutterworth@live.com"Mobile +44 (0) 7842 632 341" Twitter:- @silverdog72 © Matt Butterworth 2012