Idea Engineer Exchange Webinar Series - SapientNitro 2012 Omnichannel Research

  • 1,445 views
Uploaded on

For the premier event of SapientNitro’s new Idea Engineer Exchange Webinar Series, Hilding Anderson, Director, Research + Insights, shared the key findings from SapientNitro’s In-Store Digital Retail …

For the premier event of SapientNitro’s new Idea Engineer Exchange Webinar Series, Hilding Anderson, Director, Research + Insights, shared the key findings from SapientNitro’s In-Store Digital Retail Omnichannel Research Study−an independent audit of 71 specialty retailers’ physical locations, across seven key criteria, gathering over 500 points of data.

Curious why some brands fared well in our study? Watch the replay of our session to find out: http://bit.ly/SU66Qh

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,445
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
71
Comments
0
Likes
5

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. November 7th and 8th, 2012In-Store Digital Retail:The Quest forOmnichannelHilding AndersonRachel Zinser © Copyright 2012 Sapient Corporation 1
  • 2. Table of Contents Introductions Overview of Insights 2013 Research Findings  Top performers  Six main themes Questions © Copyright 2012 Sapient Corporation 2
  • 3. About these sessions First in a series of public sessions by SapientNitro’s Idea Engineers Future Topics Include:  Insights 2013: Highlights and Walkthrough  Strategies For Maximizing Digital Content  Convergent Retail Recordings and link to the PPT will be distributed via email this week. They will also be available at the following link: http://ideaengineers.sapient.com/events/idea-engineer- exchange-webinar-series/ © Copyright 2012 Sapient Corporation 3
  • 4. Your speaker Hilding Anderson Director of Research + Insights SapientNitro Author, editor, strategist and researcher Over 12 years of industry experience Focused on the emerging digital consumers and retail Editor of Insights 2013 Contact: Email: handerson@sapient.com LinkedIn: http://www.linkedin.com/in/hildinganderson Twitter: hildinganderson © Copyright 2012 Sapient Corporation 4
  • 5. Introducing Insight 2013 | The omnichannel study is featured in the report The best thinking of SapientNitro’s 10,000 employees and 35 global offices Our focus this year is on redefining experience Four major themes:  Real-time Control: New consumer-oriented devices & data  Predicting Desire: Building the infrastructure to anticipate consumer demand in real-time  Continuous Experiences: How companies are blurring the online and offline world  Globalization: The global marketer and the rise of the global consumer Proprietary research study on 71 retailers L2 Partnership & Excerpt 10 distinct international perspectives Digital version with additional, exclusive content at 43 global authors http://sapient.com/insights © Copyright 2012 Sapient Corporation 5
  • 6. In-Store Digital Retail: The Quest for Omnichannel © Copyright 2012 Sapient Corporation 6
  • 7. E-commerce is growing at 20% per year; traditional retail isgrowing at about 3%. © Copyright 2012 Sapient Corporation 7
  • 8. Four years from now, in-store retail will still represents 90+% of thetotal U.S. retail spend Conversion rates are higher, plus there is the physical interaction and entertainment value Higher Conversion Rates 2016 Retail Sales 9% 67% 2% to 1% 91% 3% In-store eCommerce Mobile conversion Conversion Conversion Online In-store (October to December) (excludes flash-sales) Source: Forrester Research State of Online Retail 2011 and State of Retail 2012: Mobile and Tablet Commerce. NPD Group provides in-store conversion rates based on the month of October and December 2011 (consumer survey). © Copyright 2012 Sapient Corporation 8
  • 9. We wanted to understand to what extent retailer were enabling consumers digitallywhile in-store We called this the ‘digitization of physical spaces’ Our hypothesis was that retailers have made a substantial investment in the in-store digital experience © Copyright 2012 Sapient Corporation 9
  • 10. We developed our SapientNitro Omnichannel Digital Index to compare retailerswith their peersOver the course of three months, we visited 71 retailers At least one location, primarily Flagship stores in NYC 500 points of data collected May 2012 – August 2012 Based on L2’s list of specialty retailers © Copyright 2012 Sapient Corporation 10
  • 11. In-store Digital Retail: The Quest For OmnichannelMajor Gaps Remain In The In-store Digital Experience No retailer was crowned “excellent” Only two stores – Sephora and Bloomingdales – achieved “good” Revenge of the department stores: they emerged as top performers – five of the top ten, reflecting their finances and scale Over 20% of retailers had no digital elements connected to in-store Coach Talbots Lacoste A|X Armani Exchange JCPenney Ralph SN Omnichannel Index Barneys Lauren American Apparel New York Ann Taylor Banana Diesel BCBG ALDO Republic Tourneau H&M Cole Haan Express Steve Nine West Brooks Urban J.Crew Madden Brothers Outfitters Tumi Williams- Juicy Couture Macy’s Lindt Gap Sonoma 7 for All Lucky Brand Crate & Neiman Victorias Mankind UNIQLO Aeropostale Marcus lululemon Secret Barrel Bath & Abercrombie athletica Nordstrom Stuart Chicos Lord & Body & Fitch Rugby Sephora American Weitzman White Saks Fifth Taylor ZARA Works Anthropologie Bloomingdales Eagle French Gymboree House | LOCCITANE Outfitters Avenue Ethan Allen Guess Black Club Monaco en Provence Connection bebe Market Excellent Good Average Fair Weak None © Copyright 2012 Sapient Corporation 11
  • 12. Department Stores emerged as the single most dominant Key Findings Average Score (out of 75) by Sector While apparel had the highest n representation, Department Stores Department Store 10 emerged with the highest average score In part, this is due to consistency – they Beauty & Skincare 5 only had two brands (Bergdorf Goodman, and Intermix) which emerged with zero Home & Gift 9 scores. The Accessories and Beauty & Skincare Apparel 34 categories (LOCCITANE en Provence, LUSH, The Body Shop) had over 50% ofAccessories & Shoes 7 stores with a zero overall Watches & Jewelry 6 0 10 20 30 40 © Copyright 2012 Sapient Corporation 12
  • 13. Retailers are stronger in Cross-Channel Inventory Fulfillment and Brand, while Functionality and Content categories struggle Key Findings Cross-channel inventory emerged with the highest 10 Retailers Scoring 4 or 5 (best) by category number of ‘5’ 9 Content has a number of 8 companies with ok to good 7 scores, but none which# of Retailers 6 received the top score 5 Functionality (interactivity) 4 was a key gap 5 3 4 Brand is an area with strong 2 investment 1 0 Cross-Channel Visibility Content Functionality Brand Social Sharing Mobile In-store Inventory & Store Experience Integration Experience Fulfillment © Copyright 2012 Sapient Corporation 13
  • 14. Top 3 Our #1 for having a variety of useful interactive tools that enhance the store experience, but theres still room to1 Sephora 59 Good push the envelope Exemplary use of video screens, delightful 59th @ Lex app for use in the flagship store, and seamless execution2 Bloomingdale’s 52 Good of Clinique iPads On the right track with a diverse range of digital3 Macy’s 46 Average touchpoints, but visibility and functionality need a boost © Copyright 2012 Sapient Corporation 14
  • 15. Digital Index ScoreExample 1: Sephora offered the Scentsa Fragrance Finder Kiosk, Beauty Studio Tablets,Skincare IQ Kiosk; mobile inventory and some social elements; no in-store pick-up. © Copyright 2012 Sapient Corporation 15
  • 16. Digital Index ScoreExample 2: Bloomingdale’s had well integrated digital merchandising which support the brand,the best Clinique customization, a strong mobile way finding app, and inventory visibility © Copyright 2012 Sapient Corporation 16
  • 17. Digital Index ScoreExample 3: Macy’s had a strong mobile offering*, find-in-store, interactive kiosks (but noinventory or ordering), generic Clinique tablets; hurt by brand, in-store display visibility. * Find in-store mobile app on Android was inconsistent in our testing © Copyright 2012 Sapient Corporation 17
  • 18. The Next Eight Competent implementation of gift registry, but only cross-channel4 Crate + Barrel 44 Average inventory & fulfillment goes above and beyond Kids section features fun, digital entertainment, but has minimal5 AE Outfitters 43 Average instrumental value Cosmetics department screens, mobile app, and inventory visibility6 (tied) Nordstrom 40 Average shine, the rest falls flat A minimalist approach: branded video screens complement the6 (tied) Saks Fifth Avenue 40 Average fine-art feel of the store Branded video screens around every corner enhance the stores8 UNIQLO 36 Fair high-tech feel but none offer interactivity A sleek cosmetics department bolsters an otherwise mediocre9 Lord + Taylor 33 Fair digital experience Touchscreen kiosk is a strong step in the right direction, but10 (tied) Ethan Allen 32 Fair location and in-store role need attention Handful of well-placed digital video screens and a smooth mobile10 (tied) ZARA 32 Fair scanner; no visibility into store inventory © Copyright 2012 Sapient Corporation 18
  • 19. Highlights from the Next EightUNIQLO was successful despite havingno in-store interactivity A homely Nordstrom in-store digital experience; they were saved by their mobile and in-store inventory Crate & Barrel offers a well- developed in-store gift registry, in Saks offered a fine-art feel in- addition to solid cross-channelAmerican Eagle Outfitter’s kids experience store. inventorylet you record and email your music video © Copyright 2012 Sapient Corporation 19
  • 20. As we reflected on the research, we noted six major themes Just 43% of retailers had a device Digital In-Store Displays Are Powerful Tools—But Too Often Poorly mounted, and visible in-store Executed At one retailer, 87% of their price Poorly Planned Digital Is Worse Than No Digital At All checkers were out of order Just 25% received a baseline (3+) It Isn’t Just the Hardware: Content and Software Matter score in content The Right Tools Generate Additional Revenue We’ve found a 10% to 40% increase in same-store sales for well- executed in-store kiosks Retailers Should Focus on Supporting User Tasks While 43% had something visible, just 22% had interactivity The Omnichannel Battle Has Begun More retailers were awarded the top score in cross-channel inventory visibility than any other © Copyright 2012 Sapient Corporation 20
  • 21. Finding 1: Digital In-Store Displays Are Powerful Tools—But Too Often Poorly Executed© Copyright 2012 Sapient Corporation 21
  • 22. 1. Digital In-Store Displays Are Powerful Tools – But Too Often Poorly Executed While other touchpoints felt poorly executed… Ann Taylor: fitting room with exposed hardware, just website, not formatted to screen GUESS: touchscreen technical issues Macy’s: Good display, with roller rack in front of the display UNIQLO and Bloomingdales integrated digital throughout. Sephora: Bumble and Bumble screen © Copyright 2012 Sapient Corporation 22
  • 23. Finding 2: Poorly Planned Digital Is Worse Than No Digital At All© Copyright 2012 Sapient Corporation 23
  • 24. 2. Poorly Planned Digital Is Worse Than No Digital At All Few offered interactive touchpoints, and of those that Price scanners were a common did some were unavailable or mobile function, but very few delivered only errors. worked consistently. © Copyright 2012 Sapient Corporation 24
  • 25. Finding 3: It Isn’t Just the Hardware: Content and Software Matter© Copyright 2012 Sapient Corporation 25
  • 26. 3. It Isn’t Just the Hardware: Content and Software Matter Barneys: tablets with no in- store specialized content New Balance (not scored): Kiosk had no in-store specialized content While each of these has Clinique’s app delivers personalized great, responsive recommendations and Sephora helps users hardware, they only narrow down products and get more info. deliver dot-com content. © Copyright 2012 Sapient Corporation 26
  • 27. Finding 4: The Right Tools Generate Additional Revenue© Copyright 2012 Sapient Corporation 27
  • 28. Finding 4: The Right Tools Generate Additional Revenue Marks & Spencer offers co-browsing with sales associates, resulting in an increase in Ron Johnson announced Q2 results which same-store sales. saw a lift of 25% in denim sales relative to stores which lack the experience. © Copyright 2012 Sapient Corporation 28
  • 29. Finding 5: Retailers Should Focus on Supporting User Tasks© Copyright 2012 Sapient Corporation 29
  • 30. 5. Retailers Should Focus on Supporting User Tasks Task-based tools were few and far between. Outside of Clinique’s skin evaluation, others include gift registry, mobile price scanners, and an interactive floor plan from Bloomingdale’s. Some experiences appeared promising, but fell short, including mobile scanners that failed to scan and Aldo’s tablets that were mounted on shelves but for employees only. © Copyright 2012 Sapient Corporation 30
  • 31. Finding 6: The Omnichannel Battle Has Begun© Copyright 2012 Sapient Corporation 31
  • 32. 6. The Omnichannel Battle Has Begun Nordstrom’s mobile site even offers a ‘nearby’ filter.A number of retailers provide storeinventory visibility on the dot-comand mobile channels; a few took ita step further to offer in-store pick-up and delivery. © Copyright 2012 Sapient Corporation 32
  • 33. Other interesting experiences Lebron James’ Unknwn shop features tablets next to each shoe Neiman Marcus’s Chanel runway video screen ALDO’s tablet trap LEGO’s AR would be greatNiketown’s interactive experience – if it worked © Copyright 2012 Sapient Corporation 33
  • 34. Conclusion | Six main themes Just 43% of retailers had a device Digital In-Store Displays Are Powerful Tools—But Too Often Poorly mounted, and visible in-store Executed At one retailer, 87% of their price Poorly Planned Digital Is Worse Than No Digital At All checkers were out of order Just 25% received a baseline (3+) It Isn’t Just the Hardware: Content and Software Matter score in content The Right Tools Generate Additional Revenue We’ve found a 10% to 40% increase in same-store sales for well- executed in-store kiosks Retailers Should Focus on Supporting User Tasks While 43% had something visible, just 22% had interactivity The Omnichannel Battle Has Begun More retailers were awarded the top score in cross-channel inventory visibility than any other © Copyright 2012 Sapient Corporation 34
  • 35. The full report is available now | Insights 2013 The best thinking of SapientNitro’s 10,000 employees and 35 global offices Our focus this year is on redefining experience Four major themes: Real-time Control, Predicting Desire, Continuous Experiences, Globalization Proprietary research study on 71 retailers L2 Partnership & Excerpt 10 distinct international perspectives 43 global authors Digital version with additional, exclusive content at http://sapient.com/insights © Copyright 2012 Sapient Corporation 35
  • 36. Thank You© Copyright 2012 Sapient Corporation 36