Social Media Fundamentals, Future of Retail


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So what is the potential for retailers to combine “bricks with clicks” to win the war for customers?

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Social Media Fundamentals, Future of Retail

  1. 1. Future of Retail Social on the Outside, Social on the InsideFriday, 28 September 12
  2. 2. LONDON LINCOLN PORTLAND PHILADELPHIA ST. LOUIS NEW YORK AUSTIN SINGAPORE RIO DE JANEIRO SYDNEY THE WORLD’S LEADING SOCIAL CONSULTANCY FIRM We are the leading global, integrated, end-to-end social business consultancy. Working with 50% of the Fortune 500. Multi-year engagements. The largest group of Facebook Preferred Developers in the world. 500+ Facebook sites, mobile and gamification projects.Friday, 28 September 12
  3. 3. Our services PERFORMANCE BRAND CONNECTED SOCIAL BUSINESS MARKETING COMPANY INTELLIGENCE + Social brand strategy + Enterprise social + Dashboards & benchmarks + Applications and experiences technology + Data services + Community management + Workforce collaboration + Reporting & analytics + Advocacy programs + Workforce learning + SaaS applications + Listening programs + Social CRM + Influencer outreach programs + Change programs + Social media buying 3Friday, 28 September 12
  4. 4. Some of our clients 4Friday, 28 September 12
  5. 5. WE WILL DISCUSS Where We Are Now Trends and What Next? ExamplesFriday, 28 September 12
  6. 6. Where We Are Now Trends and What Next? ExamplesFriday, 28 September 12
  7. 7. Is bricks and mortar retail dead? 7Friday, 28 September 12
  8. 8. “JCB retailer’s shares fall by a fifth (...) it blames performance on disappointing demand for Euro 2012 kits and wet weather.” “WHS sees 3 per cent fall in like-for-like third-quarter sales.” “Mothercare- Strong performance outside UK helps offset cost of store closures but baby clothing retailer warns domestic market ‘remains tough.” Source: We hear lots about the “death of retail”Friday, 28 September 12
  9. 9. 39% of consumers rely on the websites for comparative shopping. UK found that 39% want to use mobiles to receive personalised promotions. 52% want to use mobiles to checkout, and 42% to locate products in-store. Source: While the future is mobile and socialFriday, 28 September 12
  10. 10. So let’s go back to the basics. 10Friday, 28 September 12
  11. 11. Few understand what social truly means 11Friday, 28 September 12
  12. 12. ...and really understand what’s changing Behaviours Competition Expectations 12Friday, 28 September 12
  13. 13. Competition: understanding your ecosystem Online Retailer Brands Customer Retailers 13Friday, 28 September 12
  14. 14. Brands: the engaging “cool factor” Brands have stolen the early march on RELATIONSHIPS developing relationships with consumers on the products and advocacy. Its all about sharing, socialising, liking and SOCIAL BUYING making it easy to buy when you want to. In-store is all about the experience, but F2F it’s limited. 14Friday, 28 September 12
  15. 15. Online retailers are becoming the norm Online retailers have revolutionised what SERVICE “good” customer service means, raising the bar. When you want it, where you want it and CHOICE social. Organising for social means that traditional ROLES roles and responsibilities don’t need to exist or are carried out by customers. 15Friday, 28 September 12
  16. 16. Customers are the buyers 16Friday, 28 September 12
  17. 17. Behaviours Competition Expectations 12 17Friday, 28 September 12
  18. 18. Customer journeys have changed Customer Need Research Buy Feedback Customer journey “My shoes broke after I wore them once.” Decision Point 1 2 4 5 Access to an Need and research take less time and are Consumers expect Enhanced feedback loop exponentially often combined to have the option Social media impact on bigger pool of of buying online as customer journey consumers well as in the store Use Rates, reviews, complaints, etc. 3 The decision point is reached at an earlier stage Decision Point 18Friday, 28 September 12
  19. 19. To a non-linear, multi-channel journey Non-Linear, multi-channel, digital, consumer-controlled Source : The OPEN Brand: Digital Trends for 2011 by Resource Interactive 19Friday, 28 September 12
  20. 20. Influence is shifting to the individual Source: Eloqua & JESS3, The Message is the Messenger, March 8 2011 Source: Forrester 2010 Source: AdWeek, A Million Little Klouts, Dec 14 2001 20Friday, 28 September 12
  21. 21. And the wisdom of the crowd... Brands are striking deals with social networks. Source: Wall Street Journal, June 30, 2011; Twitter 21Friday, 28 September 12
  22. 22. Behaviours Competition Expectations 22Friday, 28 September 12
  23. 23. This means we now have a social consumer 23Friday, 28 September 12
  24. 24. ...who expects more from retailers 24Friday, 28 September 12
  25. 25. So to summarise... Understand your competitors and customer behaviours 1 and expectations for YOUR market segment. Online retailers are raising the bar in service and re- 2 defining market models. Influence and trust is driven by peers, not the brands 3 or retailers. 25Friday, 28 September 12
  26. 26. Where we are now Trends and What Next? ExamplesFriday, 28 September 12
  27. 27. Moving to bricks and clicks? 27Friday, 28 September 12
  28. 28. We see the market split into three segments Early Adopters Exec sponsorship, Long term vision Doing “Enough” Apps and Likes “Hope it goes away” But if I’m going to do it, do it long term 28Friday, 28 September 12
  29. 29. ...and follow three broad trends Combining on-line and Shopping experience: 1 off-line: Delivering on 3 Augmenting reality. the brand promise. Customer Service: 2 Delight your Customers. 29Friday, 28 September 12
  30. 30. Combining the on-line and off-line Likes, purchases and history are available CUSTOMER and accessible across all channels. Deliver on the same brand promise on-line EXPERIENCE and off through every interaction including marketing, sales and service. Campaigns move between digital and CAMPAIGNS physical with the end goal of people in stores. 30Friday, 28 September 12
  31. 31. Some recent examples where this has worked 31Friday, 28 September 12
  32. 32. ...including C+A in Brazil 32Friday, 28 September 12
  33. 33. ...and where the experience has not delivered 33Friday, 28 September 12
  34. 34. Customer Service that delights Move from “just enough” to a concept of CUSTOMER delighting a customer. Available whenever, wherever suits the WHEN SUITS customer either through Twitter or Livechat. Develop forums or communities where passionate customers help customers SELF-SERVICE problem solve. 34Friday, 28 September 12
  35. 35. Where Burberry’s new digital service leads 35Friday, 28 September 12
  36. 36. Vodafone and SONY: users helping users 36Friday, 28 September 12
  37. 37. Shopping Experience: Augmented Reality Using apps, QR codes to help customers INFORMATION get more information once in store. PRODUCT Find the products, combine the products. Listening to customers to understand where WOW - FACTOR there is missed market demand, the “next big thing”. 37Friday, 28 September 12
  38. 38. Including Burberry and IKEA 38Friday, 28 September 12
  39. 39. And then we have next generation. 39Friday, 28 September 12
  40. 40. Empowered employees: passion and knowledge Employees are a companies most important ADVOCATES assets to share passion authentically and recruit top talent. You are only as strong as your weakest SERVICE employee - leveraging knowledge to deliver outstanding service. Internal social networks to share KNOWLEDGE knowledge, best practice and customer intelligence. 40Friday, 28 September 12
  41. 41. Twelpforce: where employees act 41Friday, 28 September 12
  42. 42. Big data as a decision driver Using social data to drive internal decision- DECISIONS making on regionalised supply chain, store openings etc. Using social listening to understand trends PRODUCTS and complaints on competitor products, buzz for product launch etc. Listening to customers to understand where TRENDS there is missed market demand, the “next big thing”. 42Friday, 28 September 12
  43. 43. And aspirational... 43Friday, 28 September 12
  44. 44. Customer 360: combining social, sales, service and marketing 44Friday, 28 September 12
  45. 45. Where we are now Trends and What Next? ExamplesFriday, 28 September 12
  46. 46. So what is the future of retail? 46Friday, 28 September 12
  47. 47. Bricks + Clicks can work if... It’s all about providing an integrated customer experience across 1 every touchpoint, on-line and off. Provide value-add in-store through passionate, connected 2 and empowered employees- beyond marketing. Use social data to drive pro-active decision-making across 3 marketing, sales development and competitive insight. 47Friday, 28 September 12
  48. 48. CONTACTS Dominika Tomek HEAD OF CONSULTING 48Friday, 28 September 12