This document discusses how rapidly evolving technologies are changing the way consumers shop for big ticket items. It outlines opportunities in mobile shopping, social media, augmented reality, and harnessing big data. Retailers must adapt by becoming omniscient about customers, omnipresent across channels, and able to deliver personalized experiences anywhere. New rules are needed to meet shifting expectations around constant learning, availability, awareness of individual histories and choices, seamless experiences, consistent offerings, and flexibility.
2. Rapidly Evolving Market Conditions
Are Changing the Way Consumers
Search for, Evaluate, and Purchase
Goods and Services
ONE OF TODAY’S
GREATEST CHALLENGES…
…WILL DEFINE BIG TICKET
RETAIL TOMORROW
3. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
UNPRECEDENTED
SHOPPER DATA
Megabyte | Gigabyte | Terabyte | Petabyte | Exabyte | Zettabyte | Yottabyte
INTRO
The Average Consumer is Bombarded
with 34GB of Data per Day
The Average Consumer is Bombarded
with 34GB of Data per Day
Wal*Mart Databases are Estimated to be >2.5PBWal*Mart Databases are Estimated to be >2.5PB
Total Amount of Data in Existence in 2010 = ~1.2ZBTotal Amount of Data in Existence in 2010 = ~1.2ZB
ZettabytePetabyte
4. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
ENGAGEMENT IS
MANDATORY
INTRO
5. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
ENGAGEMENT IS
MANDATORY
INTRO
6. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SMARTPHONES REACH
THE MAINSTREAM
INTRO
7. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
COMPETITIVE SHOPPING…
FROM INSIDE YOUR STORE
INTRO
8. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
“IT’S ALL ABOUT ME”
(AND 10,000 OF MY CLOSEST FRIENDS)
INTRO
Shoppers are telling us they want to
Shop Where they Connect…and
Connect Where they Shop
9. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
in store sales will be influenced by the Internet in 20121
$1Trillion
SHOPPERS CONTINUE THEIR
RELENTLESS MIGRATION ACROSS
CHANNELS
1- Forrester Research 2009
INTRO
10. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
ALL-CHANNEL IS THE
NEW CROSS-CHANNEL
INTRO
11. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
NEW BEHAVIORS
NEW EXPECTATIONS
A NEW RETAIL REALITY
NEW TECHNOLOGIES
=
+
+
INTRO
12. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
NEW RULES FOR A NEW REALITY
Big Ticket Retailers Must Aspire to Be…
Constantly learning from customer
behavior to anticipate needs,
personalize experiences, stay relevant.
OMNISCIENT
Available anytime, anywhere customers
choose to engage and interact.
OMNIPRESENT
OMNIPOTENT
Always aware of each customer’s
unique history, choices, behaviors,
and expectations.
EVERYWHERE
Able to deliver personalized & seamless
experiences wherever the customer is.
CONNECTED
Able to deliver consistent inventory,
prices, and promotions relevant to each
customer in every channel.
ADAPTIVE
Flexible enough to adapt to ever-
changing technology, expectations,
and market conditions.
ERP Platforms Must Be…
INTRO
15. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Do You Have A Social Strategy?
99%of Surveyed Retailers
Currently Have or Plan
to Have a Facebook
Fan Page1
1 - -eTailing Group and Power Reviews 2009
SOCIAL
16. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Do You Have A Social Strategy?
91%of Surveyed Retailers
Currently Plan to Use
Twitter for Status
Updates by 2011
1 - -eTailing Group and Power Reviews 2009
SOCIAL
Twitter.com/EscalateRetail
17. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Do You Have A Social Strategy?
SOCIAL
18. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS FOR SHARING
YOUR MESSAGE, YOUR
PROMOTIONS, YOUR CATALOG
SOCIAL
19. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS FOR SHARING
THEIR OPINIONS, THEIR
PURCHASES…THEIR QUESTIONS
SOCIAL
20. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS FOR SHARING
THEIR OPINIONS, THEIR
PURCHASES…THEIR QUESTIONS
SOCIAL
21. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS FOR SUPPORT
FASTER, CHEAPER, MORE VISIBLE
AND…GOOD FOR YOUR BRAND???
SOCIAL
@ Twitter is a lightning-fast platform that can
help sift through and solve problems quickly
@ Customer service via Twitter often takes less
time and less money than a call center call
@ Twitter is one of the most viral platforms
around, which can turn one happy customer
into an international story
22. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Shoppers expect us to leverage
their networks to create
Social Shopping experiences:
User Reviews, Shop Together, Deal Feeds, Group Buys,
Popularity Lists, Auctions, Social Network Storefronts,
Share-With-Your-Network, etc.
SOCIAL IS FOR SHOPPING
SOCIAL SHOPPING (noun)
COMBINING E-COMMERCE AND TRADITIONAL SHOPPING
IN A SOCIAL NETWORKING ENVIRONMENT
SOCIAL
23. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS FOR SHOPPING
SOCIAL SHOPPING (noun)
COMBINING E-COMMERCE AND TRADITIONAL SHOPPING
IN A SOCIAL NETWORKING ENVIRONMENT
SOCIAL
24. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Home Décor
Yes I do! Plenty
of room for my
remote controls!
I gave it a “test
run” in the store –
very comfortable!
Great! Go ahead
and order it!
SOCIAL
25. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS SYNONYMOUS
THE WEB IS NOW CONNECTED
IN A FAR MORE COHESIVE WAY
SOCIAL
26. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SOCIAL IS CATCHING ON WITH THE
BIGGEST HF COMPANIES…
SOCIAL
27. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
DEVELOPING A COHESIVE
SOCIAL STRATEGY
It’s cheap (but not free), and relatively easy to
start, but requires commitment and a plan:
SOCIAL
– People: Who are you trying to engage?
Be specific and prioritize them. It can't be everyone.
– Objectives: What are you trying to achieve?
Is it about listening, talking, or energizing?
How will you measure it?
– Strategies: What will it look like when you're done?
Start with the end in mind and visualize how customer
relationships will change.
– Technologies: What are the tools you plan to use?
Hint: Don't pick the tools first.
29. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
SMARTPHONES ARE FAST BECOMING
DOMINANT WEB ACCESS DEVICE
2013
Cell phones will be the most common
device used for browsing the web
– Browser-equipped phones:1.83 billion
– PC’s & other “old fashioned” computers: 1.78 billion
*Source: Gartner Research
*
MOBILE
2015
Cell phones will become the majority of the
world’s primary browsing device
30. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Of consumers with the ability to
download applications to their
mobile phones have downloaded
shopping applications*
* Thomas/Ferrous Inc. and Q&A Research
MOBILE
31. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
HF INDUSTRY HAS THUS FAR BEEN
SLOW TO EMBRACE MOBILITY
• Customer service is an
easy win
– Delivery status
– Repair status
– Product Availability
Ashley Furniture (Carolinas)
~$122 in Revenue for Every
Dollar Spent on SMS
“Secret Sale” Campaign.
MOBILE
• Mobile marketing also has
potential for quick payback
– Promotions
– Contests
– Special Offers
32. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
HF INDUSTRY HAS THUS FAR BEEN
SLOW TO EMBRACE MOBILITY
• Customer service is an
easy win
– Delivery status
– Repair status
– Product Availability
Ashley Furniture (Carolinas)
~$122 in Revenue for Every
Dollar Spent on SMS
“Secret Sale” Campaign.
MOBILE
• Mobile marketing also has
potential for quick payback
– Promotions
– Contests
– Special Offers
Rock/Paper/Scissors
• 100 loyalty points
• 66% Response Rate
33. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
QR CODE SCANNING MAKES
MOBILE BROWSING EASY
• Quick Response Codes are beginning to
get a foothold in North America
• Cameras on cell phones read the QR code
and navigate browser to a designated URL
– Eliminating clumsy typing of long URLs
QR Code
TEXAS STADIUM, WORLD’S LARGEST HDTV
MOBILE
34. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
MICROSOFT TAG: TAKING QR CODES
TO ANOTHER LEVEL
Microsoft Tag
• New design readable by lesser
cameras installed in cell phones
• Cameras can read very small tags
– Preserving expensive catalog real estate
• Only the serial# is actually
embedded in the Tag
– Opens up exciting
analytics possibilities
MOBILE
35. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Ralph Lauren:
Ran a series of ads promoting exclusive US
Open Tennis apparel that linked readers to
product information and opportunities to
purchase on their phone
MOBILE
BRINGING TO LIFE –
WHEREVER CUSTOMERS ARE BROWSING
PRODUCTS
36. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Ford Taurus:
Leading users to a site featuring six different
video clips explaining the exciting aspects of
Taurus’ new technology
MOBILE
BRINGING TO LIFE –
WHEREVER CUSTOMERS ARE BROWSING
FEATURES
37. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
BRINGING TO LIFE –
INSIDE YOUR SHOWROOMS
Empower your customers with the kind of
detailed product information they need to
make an informed buying decision
• Deep Product Details
• Customer Reviews
• Inventory Availability
• Personalized Recommendations
• Personalized Offers
• All-Channel Customer History
• Virtual Living Room
• Loyalty Status
• Related Items and Cross-Sells
• Social Networking
MOBILE
POCKET KIOSK
YOUR BRAND
38. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
CASE STUDY: SIMMONS BRINGS THEIR
PRODUCTS TO LIFE IN SHOWROOMS
Simmons:
Now places QR Codes on merchandise
and produced mobile-friendly content to
enrich the showroom shopping
experience.
MOBILE
39. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
IMAGINE THE POSSIBILITIES IN YOUR
SHOWROOMS…A QUICK LOOK
MOBILE
40. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
GETTING STARTED:
WHAT YOU CAN DO TODAY
• Investigate your customers’ adoption of mobile
phones as shopping tools
• Start small and capture phone numbers
– Contests, rewards, etc.
– Service updates
• Understand how easily your systems can expose
key data elements
– Inventory
– Sales
– Order Status
– Customer
MOBILE
42. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
ADDING LIFE TO PRINT…
BY ADDING DIMENSION
Augmented Reality
Bringing print media to life
How it Works
A camera “reads” information
that’s on a physical object
and converts it into digital
content that it lays over the
real-world image that the
camera has recorded
A/R
43. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
PUBLISHERS HAVE BEGUN
AUGMENTING…
A/R
44. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
AND SEVERAL BIG BRANDS HAVE
BEGUN AUGMENTING…
A/R
45. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
AUMENTED REALITY TEST DRIVES
A/R
BMW Z4 “ROAD ART”
46. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
AUMENTED REALITY TEST DRIVES
A/R
• Well-coordinated cross-
channel campaign
• Lots of “sizzle”
• High novelty factor
• Extremely engaging
experience
47. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
A/R AT WORK…SELLING FURNITURE
A/R
Let’s Take A
Look at a Recent
Wal-Mart Ad for Teen
Bedroom Furnishings
48. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
A/R AT WORK…SELLING FURNITURE
A/R
49. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
MOBILE DEVELOPERS HAVE
BEGUN AUGMENTING, TOO
A/R
50. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
MYDECO.COM: 75,000 ITEMS IN AN A/R
CATALOGUE FOR iPHONE
A/R
52. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
YELP:TAKING A/R TO THE STREETS
A/R
53. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
IMAGINE THE POSSIBILITIES
WITH YOUR BRAND…
A/R
What if we applied
similar technology to
furniture retail?
(754 Reviews)
Slumberland Furniture, Lincoln NE
SAME DAY DELIVERY
On All Purchases Before 6:00 p.m.
ULTIMATE SALE!
Through Labor Day!
JUST ARRIVED
New Natuzzi Leather Collections
55. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
BIG TICKET RETAILERS ARE
REINVENTING SHOPPING…
CLOSING
56. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
2,016 Followers
1,376 Fans
10,000 Readers
http://2modern.com
2modern
CLOSING
57. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
THE TIME TO EXPLOIT THOSE
OPPORTUNITIES…IS NOW
• Market conditions, technology, connectivity are
clearly working together to change consumer
expectations and behaviors
• It’s time to take stock of our strategies and look
for ways to evaluate, exploit, and expand the
opportunities inherent in today’s rapidly
evolving consumer landscape…
REINVENT SHOPPING
CLOSING
58. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
Escalate Sales Gateway
Escalate COEM
Escalate Enterprise1
Warehouses Suppliers & 3PL Stores
Call Center Smartphone Social ShoppingKioskPoint of Service/COEMB2C & B2B Web
CONNECTED • EVERYWHERE• ADAPTIVE
Escalate All-Channel Commerce
FurnishNet
CLOSING
59. INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
WHAT WILL WE BE TALKING
ABOUT NEXT YEAR?
CLOSING
Evolving consumer lifestyles, ubiquitous connectivity, and the furious pace of technology are converging to forever change the way consumers search for, evaluate, and purchase goods and services
Average person is bombarded with 34GB of data per day
Wal*Mart databases are estimated to be >2.5PB
Total amount of data in existence in 2010 = ~1.2ZB
Challenge to store and manage all that data; Opportunity to leverage the data into actionable information. Challenge that customers expect us to put that data to use to enhance their shopping experiences.
Forrester Research predicts there will be 150,000,000 Smartphone subscribers in the US by the end of next year.
The time to understand what that means – and how to take advantage of the opportunity – is now.
Facebook now reaches over 400M users. The fastest growing segment is 55-65 year old women.
Social networking is clearly spanning generations of our customers, and study after study tells us that they want to shop where they connect…and connect where they shop.
24/7/365 takes on new meaning as consumers are forever wired, constantly connected, and always ready to shop
Nike iPod Sport Kit
Yelp Monocle
Woot.com
PlayStation Store
eBay Mobile
Mobil Speed Pass
Kindle
Business as usual is no longer acceptable. Stores are no longer the sole driver of our businesses. Rather, they are one of “n” ways consumers expect us to reach them and interact. Consumers are demanding change, and will reward BT businesses that adapt with them.
During our session today we will share ideas, tools and technologies that may spark ideas to help you meet their demands for change and possibly help you reinvent shopping for your customers. Some of the ideas are “today” ideas, and some may –or may not be -- be “tomorrow” ideas. But we think all of them are, at a minimum, thought-provoking.
Along the way we’ll try to give you insight how to add some of the “today” ideas to your strategy and we hope you find value in our content and also hope you have a little fun with us along the way.
Let’s think about some of the major tenants of good customer service and how they relate to Twitter:
Problem resolution: The main goal of customer service is to help someone resolve their issues. While phone conversations can help solve problems, wait times do not. Twitter is a lightning-fast platform that can help sift through and solve problems quickly. If it’s a small issue, a single tweet may be enough. For a more complex problem, the brand can initiate a deeper conversation with the customer.
Cost reduction: Customer service via Twitter often takes less time and a lot less money than a call center call. With Twitter, it’s necessary to be short and to the point, which reduces the time needed to solve each problem.
Positive brand image: Great customer service gets talked about, and this can lead to more sales and more attention. Twitter is one of the most viral platforms around, which can make one happy customer into an international story.
Social Shopping Can Be Defined in Many Ways.
From simple things like User Reviews and Group Deal sites (e.g. Groupon) to “Shop with Me” and ultimately shopping while in network.
Wet Seal is a great example of leveraging friend networks to enable collaborative shopping . Nine West, Charlotte Russe and several others actually present e-commerce capabilities inside Facebook.
Social Shopping Can Be Defined in Many Ways.
From simple things like User Reviews and Group Deal sites (e.g. Groupon) to “Shop with Me” and ultimately shopping while in network.
Wet Seal is a great example of leveraging friend networks to enable collaborative shopping . Nine West, Charlotte Russe and several others actually present e-commerce capabilities inside Facebook.
Imagine the potential. Amazon can recommend films for you to buy based on what you’ve been looking up on IMDB, Pandora in turn can play music you’ll like based on your friends’ Amazon purchases. Suddenly the web is connected in a far more cohesive way than has ever been possible before. Some of it will be used to promote products to you but there will be a lot of scope for developers to create amazing, new, social services that feed deep into your social graph.
It’s time to take mobile seriously.
Your customers certainly have.
IKEA saw an average user response of 5.21 percent via the in-store Bluetooth post, the application was requested by SMS in-store a total of 6,800 times, and the IKEA PS microsite saw a unique user base of 15 percent