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The Digital Store of the Future

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Retail technology talk presented by Marco Ventura, T1Visions' VP Business Development at Retail RAMP conference in Chicago on April 30, 2013.

Retail technology talk presented by Marco Ventura, T1Visions' VP Business Development at Retail RAMP conference in Chicago on April 30, 2013.

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  • 1. The Digital Store of the Future Marco Ventura
  • 2. Agenda ‣ Convergence of bricks & mortar and digital ‣ Retailers that are doing in-store digital right ‣ Four technologies that are augmenting the in-store experience
  • 3. Is Bricks & Mortar Dead? “ Retail guys are going to go out of business and e-commerce will become the place everyone buys. It just doesn’t make any sense for all this stuff to sit on shelves. There is fundamentally a better model. ” Marc Andreessen Tech Entrepreneur / VC / Billionaire January 2013
  • 4. What does the data say?
  • 5. Online Retail U.S. Online Retail Sales Online retail sales will be $370 Billion by 2017 $400 ($US Billions) $300 $200 $100 $0 SOURCE: Forrester Research Online Retail Forecast, 2012 to 2017 (US) 2012 2013 2014 2015 2016 2017
  • 6. Retail Comparison U.S. Online Retail Sales vs. Bricks & Mortar Retail Sales $4,000 ($US Billions) $3,000 $2,000 $1,000 8% $0 SOURCE: Forrester Research Online Retail Forecast, 2012 to 2017 (US) 2012 8% 2013 9% 2014 10% 2015 10% 2016 10% 2017 Online retail sales will make up 10% of total retail sales by 2017
  • 7. Although online sales continue to grow, people still prefer to shop in bricks & mortar stores. For now.
  • 8. Who’s doing in-store digital right?
  • 9. “ Walking through our doors is just like walking into our website. ” Angela Ahrendts CEO
  • 10. Physical vs. Digital Advantages of Physical Retail Shopping as an event and an experience Instant access to products Personal help from caring associate Help with initial setup or ongoing repairs Convenient returns Ability to test, try on, or experience products Instant gratification of all senses SOURCE: Harvard Business Review, The Future of Shopping, December 2011 Advantages of Digital Retail Rich product information Broadest selection Convenient and fast checkout Customer reviews and tips Convenience of anything, anytime, anywhere access Editorial content and advice Social engagement and two-way dialogue Price comparison and special deals
  • 11. What if you could have both? Rich product information Shopping as an event and an experience Personal help from caring associate Help with initial setup or ongoing repairs Instant access to products Broadest selection Convenient and fast checkout Convenient returns Ability to test, try on, or experience products Instant gratification of all senses Editorial content and advice Customer reviews and tips Convenience of anything, anytime, anywhere access Social engagement and two-way dialogue Price comparison and special deals
  • 12. Successful in-store digital initiatives... are frictionless are part of an integrated omnichannel strategy leverage as many “digital advantages” as possible solve actual problems for the customer
  • 13. Four technologies augmenting the in-store experience ‣ ONE: Digital signage ‣ TWO: Large format interactive surfaces ‣ THREE: Clienteling mobile solutions ‣ FOUR: Contextually aware apps & devices
  • 14. TECHNOLOGY ONE: Digital Signage
  • 15. Digital Signage
  • 16. Digital Signage
  • 17. Digital Signage ‣ Visually engaging ‣ Flexible content updates ‣ Powerful CMS tools ‣ Employ “smart” technologies
  • 18. Next Gen Smart Signage ‣ Interactive (touch & gestures) ‣ Facial recognition sensors capture number of views, duration, gender, age, and interest level of shoppers ‣ Content adjusts in real time based upon viewing audience ‣ Rich in-store analytics
  • 19. TECHNOLOGY TWO: Interactive Surfaces
  • 20. Interactive Tables
  • 21. Interactive Tables
  • 22. Interactive Walls
  • 23. Interactive Surfaces ‣ ‣ ‣ ‣ ‣ ‣ Rich product information: content comes to life Access to all products, in and out of the store In-store product purchasing: Endless Aisle Highly effective sales driver Product & accessory recommendations Comprehensive shopper analytics
  • 24. Endless Aisle Typical number of SKUs in U.S. retail stores Specialty Retailer: 30,000 Big Box: 140,000 Digital Platform: ∞
  • 25. In a recent study of 2,000 shoppers, Out-Of-Stock (OOS) merchandise was the number one in-store dislike. SOURCE: 2013 Shopper Experience Study, Cognizant
  • 26. A third of shoppers leave stores without buying all or part of what they came in for, resulting in an average loss of $125 customer. SOURCE: Motorola 2011 Holiday Shopping Survey per 33% abandon store
  • 27. Almost 3/4 of lost in-store sales can be recaptured if a retail associate orders an item and has it delivered to a shopper’s home. SOURCE: Motorola 2011 Holiday Shopping Survey 68% of sales can be recaptured!
  • 28. OOS problems & solutions ‣ Problems ‣ ‣ ‣ item out of stock not exactly what customer wants ‣ ‣ Better show product images on a tablet order through POS system Good show product images in catalog call another store
  • 29. Best ‣ Show OOS product options on a large, multitouch screen ‣ Order items immediately and effortlessly ‣ Have everything delivered to the customer’s home Facts
  • 30. Analytics. Lots of them. ‣ Gain accurate insights into what shoppers are doing in your store Use data to make informed business decisions Transac'ons) YTD) Current) Product Views (week) 0" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100" 110" 120" 130" 140" 150" #"customer"logins" #"completed"transac<ons" inTouch Table Activity New Arrivals Denim Jackets Collections Tops Dresses & Skirts Swim & Sport (Active) 12.0 10.0 hours ‣ 8.0 6.0 4.0 2.0 0.0 Monday' Tuesday' Wednesday' table'usage' Thursday' Friday' hours'of'opera8on' Saturday' Sunday' Pants & Shorts Shoes & Accessories Trends
  • 31. TECHNOLOGY THREE: Clienteling Mobile Solutions
  • 32. Clienteling Mobile Solutions
  • 33. 1909 2013 Clienteling brings us back to a time when retailers knew our name, our purchase history...
  • 34. Clienteling Mobile Solutions ‣ Provide a 360° view of the customer across all selling channels ‣ Empowers sales associates with better information about their products and customers ‣ Allows sales associates to develop and foster one-to-one relationships with customer
  • 35. TECHNOLOGY FOUR: Contextually Aware Apps & Devices
  • 36. Contextually Aware Apps & Devices
  • 37. Geo-Fences ‣ Qview: branded, contextually aware restaurant app ‣ When within 1/2 mile proximity of restaurant, guests can get on waitlist ‣ Guests are assigned “characters” that appear and disappear on mobile app and on 80” HD display ‣ Integrated into table management system
  • 38. Micro-Location: Beacons ‣ ‣ ‣ ‣ ‣ Low power consumption— based upon Bluetooth Low Energy (BLE) open standard Can be placed anywhere Detect proximity from 2 inches to 50 feet Very inexpensive BLE already compatible with a massive installed base of mobile devices
  • 39. Beacon Use Cases indoor microlocation contactless payment check-in coupons proximity marketing
  • 40. Combined with smart digital signage, Beacons can open up another dimension for shoppers Hi Mia, want to complete your look? Hammered oblong hoop in store Perfectly pastel bangles order now Cross band cork wedge in store
  • 41. One more thing... ‣ Remember Angela Ahrendts? (the CEO of Burberry) ‣ Apple recently announced that she will soon join their executive team and have worldwide responsibility for Retail AND Online Stores ‣ Retailers: take notice!
  • 42. Conclusion Andreessen is wrong. Kinda. Retail is changing radically. The lines between physical & digital are blurring.
  • 43. Retailers that make the convergence of digital & physical frictionless for their customers will win.
  • 44. 10430-F Harris Oaks Boulevard Charlotte, NC 28269 t. 704.594.1610 f. 888.569.6660 www.t1visions.com