Using Digital in Retail

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Using Digital Tactics in Retail to drive growth. Growth in Retail is going to come from the digital E-commerce sector. Here are some ways in which high street retailers can take advantage of this growth for their own business.

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Using Digital in Retail

  1. 1. Digital in Retail: The Exeter Experience James Moffat, Organic Development
  2. 2. Page  2 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
  3. 3. Page  3 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
  4. 4. Page  4 Time we spend shopping…. 8.9 Billion hours per year in UK 182.5 Hours/person/ year 49 million 16 plus adults in UK Stats from the ONS
  5. 5. Page  5 The state of retail in the UK… (08 to 09) Source: ONS UK Retail employment Down 145,000 UK Retail Outlets Down 100,900
  6. 6. Page  6 Retail Sales Index Sept 2010 0.5% Growth year on year for September British Retail Consortium ‘The market scraped margin growth in 2009 and I see a low growth envoronment here to stay. The combination of a weak economic outlook and a changing consumer means the industry is at a key inflection point as it re-aligns itself to a new reality . What growth there will be will be absorbed by online. Like for like sales will thus dip in and out of negative territory on a monthly basis’ KPMG Retail Think Tank, Feb 2010 Low growth here to stay….
  7. 7. Page  7 Shoppers are tuning out. Worse, they are exhausted by their shopping experience when they should be energised. That’s what happens when you force shoppers to think about getting low prices when what they want it to feel good about what they are buying. Al Wittemen – MD Retail Strategy, Advantage Retail Shoppers are turning away from retail
  8. 8. Page  8 B2C Ecommerce Sales growth in Europe, 2006 to 2011, Billions, USD $ 132.90 $ 196.90 $ 255.70 $ 307.10 $ 357.40 $ 406.80 $
  9. 9. Page  9 Estimated growth in the next 5 years 10% Per Year Predicted US retail growth 2010 2.5% 11% Predicted E-Retail growth in 2010 E-Retail – the key to growth
  10. 10. Page  10 Good News: The bulk of retail shopping still takes place in store… but now is the time to act! Infogrpahic by milo.com
  11. 11. Page  11 Solution: Integrate digital into your retail experience Benefits of E-Commerce • Research and Learning • Better Choice • Time Saving / Convenience • Empowerment, Customer feedback Benefits of High Street • Immediacy of purchase • Tactile experience • In-store experience • Sales Assistance
  12. 12. Page  12 Solution: Integrate digital into your retail experience Benefits of E-Commerce • Research and Learning • Better Choice • Time Saving / Convenience • Empowerment, Customer feedback Benefits of High Street • Immediacy of purchase • Tactile experience • In-store experience • Sales Assistance
  13. 13. Page  13 Take Away: Integrate Digital Tactics Into your Retail Experience
  14. 14. Page  14 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
  15. 15. Page  15 Reach: Important channels Features of Mobile  Smart mobile market exploding  Rich media in your pocket  Powerful software = Apps  Geolocation technology  Real time communication  Still a tool for SMS, phone and MMS  Further development of bluetooth style direct messaging The importance of mobile
  16. 16. Page  16 The importance of mobile  Mobile is a fast emerging set of channels  Reflects traditional channels but raises some issues  Small screen  Touch screen  Use of SMS and MMS for CRM and servicing customers  Further Development of bluetooth style direct messaging
  17. 17. Page  17 Reach: Important channels The importance of mobile  Mobile is a fast emerging set of channels  Reflects traditional channels but raises some issues  Small screen  Touch screen  Use of SMS and MMS for CRM and servicing customers  Further Development of bluetooth style direct messaging The importance of mobile
  18. 18. Take Away: Page  18 The Future of the internet is…. MOBILE
  19. 19. Page  19 Digital in Retail: The Exeter Experience Retail: whats the deal? Digital Tactics for retail: what to do? AR and augmenting the experience A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
  20. 20. Page  20 top tips
  21. 21. Page  21
  22. 22. Page  22 1. Listen WHERE ONLINE AGE MOST INFLUENTIAL SENTIMENT
  23. 23. Page  23 Listening REPUTATION! REPUTATION! REPUTATION!
  24. 24. Page  24 Reputation PREDICTION… In the future you will not be able to sell product, run a business or provide a service if your reputation is poor and you do not listen to customers!
  25. 25. Page  25 engage
  26. 26. Reward customers for checkin... Page  26 1. Claim you venue…Claim you venue….
  27. 27. Page  27 How do you reward your customers? 1. Mayor Specials: • Unlocked only by the Mayor of your venue. ("Foursquare has deemed you the Mayor? Enjoy a free order of french fries!") 2. Check-in Specials: • Unlocked when a user checks in to your venue a certain number of times. ("Foursquare says you've been here 10 times? That's a free drink for you!") 3. Frequency-based Specials: • Are unlocked every X check-ins. ("Foursquare users get 20% off any entree every 5th check-in!") 4. Wildcard Specials: • Always unlocked, but your staff has to verify some extra conditions before awarding the Special. ("Show us your foursquare Swarm badge and get a free drink!”) How do you reward your customers?
  28. 28. Page  28 Statistics Interface • Most recent visitors • Most frequent visitors • The time of day people check in • Total number of unique visitors • Histogram of check-ins per day • Gender breakdown of customers • Portion of foursquare check-ins broadcast to Twitter and Facebook • Always adding more
  29. 29. Page  29
  30. 30. Page  30 Foursquare is not the only way to engage online…
  31. 31. Page  31 WARNING… This kind of media can be addictive. Social media can be time consuming. Limit your time to a maximum of two hours per week. Engage with people directly • Build you reputation • Build advocacy • Reward your best customers Listen • Understand who is talking, where and what about • People will tell other people what they think before they tell you • Make sure you know what people think of you Watch your Reputation Take Away:
  32. 32. Page  32 Digital in Retail: The Exeter Experience Retail: whats the deal? So what should you do about it? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
  33. 33. Page  33 Shoppers are tuning out. Worse, they are exhausted by their shopping experience when they should be energised. That’s what happens when you force shoppers to think about getting low prices when what they want it to feel good about what they are buying. Al Wittemen – MD Retail Strategy, Advantage Retail Shoppers are turning away from retail
  34. 34. Page  34 Estimated growth in the next 5 years 10% Per Year Predicted US retail growth 2010 2.5% 11% Predicted E-Retail growth in 2010 Integrate Digital into your retail experience
  35. 35. Page  35 Solution: Integrate digital into your retail experience Benefits of E-Commerce • Research and Learning • Better Choice • Time Saving / Convenience • Empowerment, Customer feedback Benefits of High Street • Immediacy of purchase • Tactile experience • In-store experience • Sales Assistance OKAY SO WE CAN DO THIS ONLINE, BUT HOW DO YOU DO THIS IN STORE?
  36. 36. Page  36 What is experiential shopping? Apple: • A place for knowledge and service • A 50/50 split between these • Come to shop, return to learn • Ave US earnings per sq ft per year? $4032 Saks 5th Avenue: $362 Source: Douglas Smith, Holy Tornado Ltd
  37. 37. Page  37 What is experiential shopping? the ultimate retail experience
  38. 38. Page  38 ‘Layering information, tools and resources over the real world we inhabit to make it easier to understand or to enrich our experience.’ EG Sat Nav, Google Maps, Layar What is Augmented reality?
  39. 39. Page  39 What does AR look like? It allows you to overlay information onto the real world
  40. 40. Page  40
  41. 41. Page  41 Bringing AR and Experiental marketing together • Finding your location • Google maps • Layar • Finding a way around a large store • Finding an In-stock product and ordering it • Argos App • Identifying where to buy a product you see • Amazon photo recognition • Assisted selling • Mobile assistants • Integrated video • Smart Mirrors • Smart checkout and payment • Trying out products not in stock • Relationship management • Recognising customers
  42. 42. Page  42 Digital in Retail: The Exeter Experience Retail: whats the deal? So what should you do about it? AR and augmenting the experience? A strategy for success: The 10 point action plan 1 2 3 4 5 Mobile: why is it important?
  43. 43. Page  43 A Strategy for Success: Your 10 point action plan ACTION THREE  Work out who your customers are and where they are online  Work out how they use technology at the moment and in the future ACTION ONE  Start with your business goals: What it is you are trying to do  Work out what it is you need to do in order to meet these goals  Work out how you can use digital to improve your retail experience  This goes for the instore experience as well as the out of store experience ACTION TWO
  44. 44. Page  44 A Strategy for Success: Your 10 point action plan ACTION SIX  Start engaging directly with people online and through apps ACTION FOUR  Start getting familiar with mobile apps  Try out FourSquare  Listen to what you customers are saying abut you  Start to monitor and manage your reputation ACTION FIVE
  45. 45. Page  45 A Strategy for Success: Your 10 point action plan ACTION NINE  Start to think about innovative ways of using technology to make the retail experience more fulfilling and enjoyable  …Not to mention more profitable for you ACTION SEVEN  Make sure you offer a genuine experience in your store  Think about why people might come to you rather than another place?  Think about how people might be looking for your shop or services and what you can do to make that easier for them ACTION EIGHT
  46. 46. Page  46 Thank you for listening Do You Have Any Questions? ACTION TEN  Speak to an Expert, someone who can help you come up with an effective plan for your new retail strategy

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