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Business growth with the retail locker - A Point of View
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Business growth with the retail locker - A Point of View

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The eCommerce retail locker is offered as a shipping option in the eCommerce shopping path where customers can chose to have their online purchase sent to a physical locker near their house. This …

The eCommerce retail locker is offered as a shipping option in the eCommerce shopping path where customers can chose to have their online purchase sent to a physical locker near their house. This shipping feature is proving to be popular with customers in urban areas where they are not always at home and stopping by a locker next to their house makes it convenient for pickup up their online purchases.

Retailers who placed lockers in their store parking lots have seen increased footfall, increased purchases in store and online as well as strong referrals to other customers. Retailers who do not have parking lots, but still integrated the eCommerce locker in their shopping path have also realized considerable topline and bottom line growth from increased purchases, and customer loyalty.

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  • 1. Increase customer acquisition with deeper insights and better channels
  • 2. Shopping Becomes Omnipresent Shopping Becomes Real-Time Aware The Lines Between Virtual and Physical are Blurring … Disappearing Outside Store Inside Store Shopping List Aisle 3 Aisle 11 Aisle 9
  • 3. The global eCommerce growth rates vary widely, but are all trending upwards and providing exciting opportunities for strategic retailers
  • 4. The UK growth in sales to international markets reveals even further potential for a global and open locker delivery echo system Britains Retail E-mpire_30_04_13
  • 5. Leading market research shows there is clear demand for an eCommerce delivery service like the InPost locker Retailer_ParcelCarrier_Report
  • 6. The trends of customer’s delivery concerns are growing in line with that of eCommerce based on IMRG Delivery Survey 2013 Trends based on IMRG Consumer Delivery Survey 2013
  • 7. Some categories do better than others in e-tailing Morgan Stanley Blue Paper January 6, 2013
  • 8. The aesthetic design of the locker complements the store environment whilst providing the required customer ease of use
  • 9. The eCommerce locker makes shopping easy, flexible and convenient for the customer whilst empowering retailers to compete Shop Online Select “Locker” shipping method and the Receive the locker code on your cell phone locker location Get the parcel from the locker near your house InPost Locker Retail Benefits Convenient shipping options for the customer that are cost effective The customer gives you their cell phone # and opts in for notifications The customer retrieves the parcel from the locker which is available 24x7
  • 10. The eCommerce locker is based on an open model that all retailers can use; similar to how ATMs are available for customers of any bank eCommerce Retailer IBM & InPost installs the eCommerce solution for the retailer InPost charges the retailer a negotiated fee per parcel that uses the locker in the eCommerce path Physical Store Retailers hosting lockers get increased footfall from locker customers Hosting Retailer get monthly rent payments for hosting the locker Locker Operations The negotiated fee per parcel paid by retailers covers all of the locker infrastructure costs needed to manage purchases using the locker IBM/InPost manages the entire transaction making it easy for the customer and the retailer to complete the transaction Returns are simple and convenient for the customer Locker Infrastructure InPost sets up courier networks to be used for retail fulfillment using the lockers InPost/IBM deploys lockers to locations that are most suited for your retail customers and manages the locker service
  • 11. The retail locker model includes the hosting and eCommerce modules that can be used depending on the retail needs Hosting Benefits • Increased footfall - from eCommerce purchasers picking up parcels from lockers in your store’s parking lots • Increased store awareness - from continued visits to your store’s parking lot • Rent payments - from InPost for hosting the locker eCommerce Benefits • New Customers – purchasing from you due to shipping options they were desiring • Increased purchases - from abandoned baskets and/or referrals enabled by the locker option • Targeted promotions – from deeper insights about the customer and access to their mobile • Increased customer convenience - from purchasing products online and picking them up during closed store hours InPost Locker • Increased loyalty and brand strength – from frequent and convenient shopping made possible through the use of the Commerce locker
  • 12. Topline *growth for both online and physical stores can be realized by using the retail locker with Retail Analytics * Revenue, margins and brand can all grow with a strategic use of the retail locker and marketing capabilities alongside existing initiatives Net Benefits New eCommer purchases eCommerce Sales Physical Store Purchases Volume Operational Efficiencies Promotion Based Impact ROI Abandoned Baskets Referrals Click & Collect Customers Omni Channel Footfall Store awareness Locker integration Solution Costs Geospatial Insights Retail Analytics Online promotions In Store & Mobile promotions
  • 13. ATMs revolutionized personal cash management as they became an open network to all the banks. The InPost locker is an open network built on the ATM principles where all retailers can participate. Number of ATMs worldwide Parcel machine expansion plans 2011-2015 3,000 10,000 2,500 8,000 6,000 units 1,500 4,000 1,000 500 2,000 0 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2015F ‘000 units 2,000 Source: A.Sirocki, ATMdrive jako trend w bankowości samoobsługowej 0 2010 2011F Source: Company data 2012F 2013F 2014F 2015F
  • 14. InPost lockers have a competitive edge Convenient locations InPost Collect+ Amazon Lockers Local Letterbox My Hermes Royal Mail myByBox Google (Not available in UK) Choice between locations Number of locations Cost Integration with e-shop 24/7 Pick up Secure
  • 15. The £77Bn UK eCommerce market is growing at 12 % YoY (IMRG 2013 Rpt.) with multiple delivery models competing for this business H Competitive strength for eCommerce shipping Physical store retailers with eCommerce offers (Tesco, etc.) eCommerce Locker Click & Collect Cost (paid by retailer) Delivery Success Rate Pick-Up Accessibility Med 98% Business Hours Cost (per Parcel) Delivery Success Rate Colect+, Hermes Pick-Up Accessibility Pick-Up Accessibility L L Med 91% Business Hours myBox, Hermes Rented Lockers Ship To Home Cost (per Parcel) Delivery Success Rate Med 99% 24x7 InPost Collection Point M Cost per Parcel Delivery Success Rate Pick-Up Accessibility High 78% Business Hours Cost (flat monthly rate) Delivery Success Rate Pick-Up Accessibility High 95% 24x7 Royal Mail Logistics Operators (UPS, DHL, etc.) M Creative approach to customer service H
  • 16. The time window available for one or two dominating forces to capture and control the market is short
  • 17. Integrated Marketing Management with Analytics requires effective integration about all insights of the customer journey Aware Transacting Engaged Involved Interacting Capture customer data Loyal Analyse Social & Mobile Entity Analytics Execute Call / SMS / Email Systems of Record Mobile Off-line Interactions Clustering Social Pattern Detection Presence & Location Traffic Sources Next Best Action Customer Attributes Lifetime Website Behavior Next Best Offer Customer Analytics Cloud – Delivered Services
  • 18. Consumers are open to share their personal information, with the exception of financial data, when there is perceived benefit Consumer Maintains Control of Data What is your willingness to provide information in exchange for something relevant to you (non-monetary)? 100% 80% 45% 43% 60% 40% 33% 28% 26% 15% 21% 28% 30% 30% 29% 28% 28% 30% 63% 41% 20% 25% Demographic (e.g. age, ethnicity) 44% Identification (name, address) Lifestyle (# of cars, home ownership) Location Based Medical 27% Media Usage (e.g. Media channels) 41% 46% 0% Completely Disagree Neutral Financial Completely willing Source: IBV Retail 2012 Winning Over the Empowered Consumer Study n= 28527 (global) P04: What is your willingness to provide information for each of the following items if [pipe primary retailer] provided something relevant to you in exchange?
  • 19. IBM’s social data analytics can be combined with locker data to drive growth Using 5 months of External Data / Social Adjusted Forecasts came 24% closer to actual, compared with the existing Forecasting methods, thus demonstrating a significant double digit savings and mark down avoidance “Bought the wife a Nikon Coolpix S6300 + waterproof case. Can't wait to play with it.” “We love our Canon camera and put it to good use, but there are other models you should explore before purchasing.” “#TodayDeals http://goo.gl/sJ z5L The Things I Want To Do Buy a Select Sony NEX Compact System Camera, Save $50 on a Qualifying Lens” Results IMPACT “Bought the CustSat-Shelfwife Fit Nikon Coolpix “We loveaour Canon S6300 + camera and put it to avg 3% waterproof case. ↑ good use, butwait to are Can't there other modelswith it.” play you should explore before purchasing” Cat/Store Sales Buzz avg 7% ↑ Campaign Cost Intent ↓ avg 12%to buy “We love our Canon Markdowns it to camera and put avg good use, butyou should 6 % ↓ there are other models explore before purchasing” Sentiment “Bought the wife “Enter to win a New Nikon D 800 from KEH Camera, Th e World's Largest Used Camera Dealer bit.ly/KDVvXi ” “We love our Canon a Nikon Coolpix camera andS6300 + put it to waterproof case. good use, but there are Can't should other models youwait to play explore before with it.” purchasing” Ownership
  • 20. GPS location services for customer interaction are being tested by multiple retailers Source: http://www.engadget.com/2013/11/20/macys-tests-location-specific-store-discounts-using-ibeacon/
  • 21. IBM’s retail solutions and industry expertise can configure the locker business model as a key competitive strength for today’s retailers Locker at Store Online Social On Retail Site In Store At Register Large Network Browses store site weekly Used the locker 5 times this month Spent most time in makeup Purchased on each visit Posts about Shoes Uses the basket as a wish List Went into the store 3 times this month Retrieved in-store mobile coupon $43 average Basket size Her Friends Comment Spends time on heels category Opted in to locker offer for more info Asked for help from her mobile Used mobile coupon She Travels Often Often ships to the same location Socially posted locker feedback Left one Yelp comment Posted pic of purchase to Twitter
  • 22. IBM Confidential

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