amazon can’t
do THAT
Lee Peterson
EVP, Creative Services
WD Partners
wdpartners.com
amazon
can’t do
that
agenda
Our sponsor
agenda
Our sponsor
Why?
agenda
Our sponsor
Why?
Amazon
agenda
Our sponsor
Why?
Amazon
Study Vitals
agenda
Our sponsor
Why?
Amazon
Study Vitals
Findings & Results
agenda
Our sponsor
Why?
Amazon
Study Vitals
Findings & Results
BE the Store of the Future Video
agenda
Our sponsor
Why?
Amazon
Study Vitals
Findings & Results
BE the Store of the Future Video
Conclusion
WD is a customer experience expert for global food and retail brands.
Our mission is to deliver innovative solutions that ...
What We Do
insights & strategy design & brand digital services
operations engineering architecture & engineering program m...
Thought Leadership
Wiring the Customer Experience
How Consumers Are Embracing
Fast-Emerging Digital Technologies
Retail's ...
Our Partners
BIG BOXCPG CONVENIENCEGROCERY SPECIALTY RETAILFOOD SERVICE
why?
nce upon a time...
O
Retail was simple.
There was a
customer, a list
and a store.
So we opened
stores.
And then we
opened a lot of
stores.
And a lot more
stores.
Buy
online
’96
BUY!
Until one day it
changed...
MILLIONS OF STORES
But we kept
opening stores.
Until someone had
an even better idea.
So what once
looked like this only
a short time ago...
Now looks like this.
What does this mean for retail?
It means...
Customers can
buy anywhere.
Anytime...
THEY ARE
ALWAYS
SHOPPING!
WE ARE
ALWAYS
SHOPPING!
And a lot of it is being
done like this...
And less and less
through these.
More and more
through these guys...
the 900
pound gorilla
Number 9 retailer
in the US
2nd fastest growth retailer
of the top 50 in the US
Source: Stores.org, 2013 Top 100 Retailers
Over the past year:
180 million
customers, bought
3.5 billion items
Source: WIRED Magazine, The Only Thing Amazon Has to F...
Over the past year:
$75+ billion sales
in 2013
Source: The New York Times
Over the past year:
Added about
25,000 employees
Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
Over the past year:
Built several new
warehouses across
US & world
Source: WIRED Magazine, The Only Thing Amazon Has to Fe...
Over the past year:
Hired 75,000+
part-timers for the
holiday season
Source: The Wallstreet Journal
Over the past year:
Integrated with
Proctor & Gamble
Source: The Wallstreet Journal, October 2013
Over the past year:
Sunday delivery
with USPS
Source: The New York Times, November 2013
Over the past year:
Planning a new
3.3 million-sq-ft
headquarters
Source: WIRED Magazine, The Only Thing Amazon Has to Fea...
Over the past year:
Near downtown Seattle, with biospheres
Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Am...
sales
Amazon has
reached a point
where they surf
a feedback loop
of dominance.
Source: WIRED Magazine, The Only Thing Amaz...
sales
profit
Amazon has
reached a point
where they surf
a feedback loop
of dominance.
Source: WIRED Magazine, The Only Thi...
sales
profit
investment
Amazon has
reached a point
where they surf
a feedback loop
of dominance.
Source: WIRED Magazine, T...
Amazon has
reached a point
where they surf
a feedback loop
of dominance.
sales
profitexpansion
investment
Source: WIRED Ma...
Source: fool.com, How Long Can Amazon.com Defy Gravity?
2005 2006 2007 2008 2009 2010 2011 2012
0%
10%
20%
30% 29.66%
29.3...
The very concept of online
shopping has become
synonymous with Amazon.
Source: WIRED Magazine, The Only Thing Amazon Has t...
Harris
Interactive2013 Brand Equity Poll
2013 Brand Equity poll:
Measured brand familiarity,
quality perception and how likely
consumers will buy
Polled more than ...
The results put Amazon on top:
Achieved the highest overall score
in the survey’s 25-year history
Source: WIRED Magazine, ...
The results put Amazon on top:
More than half said Amazon was
the first site they went to when
shopping online
Source: WIRE...
The results put Amazon on top:
Nearly half said they were likely to
have orders delivered to Amazon
branded lockers
Source...
2/3 among younger respondents
Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
Amazon topped the
Harris Interactive
poll for companies
that Americans
trusted most.
Source: WIRED Magazine, The Only Thin...
AMAZON ISN’T A COMPANY
YOU WANT TO HUG; IT’S
A COMPANY THAT DOES
EXACTLY WHAT IT SAYS IT
WILL DO–EVERY TIME.
Source: WIRED...
Since shopping has
changed so much...
Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
Is Amazon
the store of
the future?
Is Amazon
the company
of the future?
study
vitals
Surveyed 1,700 consumers using a
nationally syndicated panel
Seven in-depth focus groups with
three generations of shopper...
4%
Mature
24%
Millenial
31%
Gen X
41%
Boomer
Hispanic
17%
Caucasian
62%
African-American
12%
Asian
6%
Other
3%
Female
53%
...
Rankings based
on the top two
boxes, appeal
and influence on
purchase behavior.
store strengths
vs. online strengths
This study isolates twelve experience
attributes of shopping online vs.
in-store as d...
Experience
attributes
Exclusive to online shopping
One-click shopping
Price comparison
Suggestive selling
Unlimited options
Online reviews &
recommendations
online attributes
One-click shopping
Price comparison
Suggestive selling
Unlimited options
Online reviews &
recommendations
online attributes
One-click shopping
Price comparison
Suggestive selling
Unlimited options
Online reviews &
recommendations
online attributes
One-click shopping
Price comparison
Suggestive selling
Unlimited options
Online reviews &
recommendations
online attributes
One-click shopping
Price comparison
Suggestive selling
Unlimited options
Online reviews &
recommendations
online attributes
Experience
attributes
Exclusive to in-store shopping
Instant ownership
Touch & feel
Shopping with friends
Store associates
Store experience
in-store attributes
Instant ownership
Touch & feel
Shopping with friends
Store associates
Store experience
in-store attributes
Instant ownership
Touch & feel
Shopping with friends
Store associates
Store experience
in-store attributes
Instant ownership
Touch & feel
Shopping with friends
Store associates
Store experience
in-store attributes
Instant ownership
Touch & feel
Shopping with friends
Store associates
Store experience
in-store attributes
Experience
attributes
Shared online and in-store
Ideas & inspiration
Exclusive products
& bargains
shared attributes
Ideas & inspiration
Exclusive products
& bargains
shared attributes
findings
& results
Stores are
winning
The top 2 features
for physical
shopping beat all
online features.
79%
75%
68%
69%
Appeal Influence
on purchase
Instant ownership
Touch & feel
Instant ownership
Touch & feel
Instant ownersh...
i’ve been excited online, it’s
just not the same thing as
shopping in the store.
– Millenial male
Amazon still can’t
compete with...
I can just get in my
car and get it...
Amazon still can’t
compete with:
I can just get in my
car and get it...
Now.
Appeal
Rankings for online vs.
in-store features
Touch & feelOnline
recom
79%
59%
No. 1 in-store feature No. 1 online feature
Rated reviews as very/
extremely appealing
Ra...
Instant ownership
Touch & feel
Excl. products/bargains
Reviews
Price comparison
Experience
Unlimited options
One-click sho...
Influence on
purchase
Rankings for online vs.
in-store features
69%
53%
No. 1 in-store feature No. 1 online feature
Rated reviews as very/
extremely influential
for purchase
Touch & feelO...
Touch & feel
Instant ownership
Excl. products/bargains
Reviews
Price comparison
Experience
Unlimited options
With friends
...
well, i don’t find anything exciting
about shopping online. I just do it
because i like to comparison shop. I like
to find...
for now,
emotional benefits
trump functional.
But not
for long
The Millennial erosion
millenials are
different.
Shopping anytime,
anywhere, for anything they
want is the cost of entry.
I like the convenience of online
shopping; you don’t have to get
dressed. you don’t have to be
social. i can still have my...
You feel powerful. you feel like you
can get anything you want. you feel
like you can get any brand at any
time. when you’...
Most appealing
to Millennials
Rankings for online vs.
in-store features
Unlimited options
Customer reviews
Instant ownership
Price comparison
Touch & feel
Excl. products/bargains
One-click shopp...
Millennials are more
comfortable with mobile
shopping overall.
More than 3x more likely
to buy than Boomers.
Source: 2012 ...
Millennials are more
comfortable with mobile
shopping overall.
More likely than a Boomer
or Gen-Xer to have made a
purchas...
Millennials are more
comfortable with mobile
shopping overall.
2x more likely as Boomers
to make purchases on
Amazon 2-3 t...
the vastness of just everything
is right at your fingertips. you
can look at macy’s. you can look at
walmart. you can look...
70%
Millenial Gen-X Boomer
64%
68%
60%
54%
45%
Ranking online customer
reviews as most appealing
Ranking online customer
r...
sometimes getting things in the
mail is like christmas or
something, it is exciting waiting
for things to arrive at your
d...
Millennials grew up with this
the window of opportunity
for retailers is closing fast,
especially for retailers eager
to capture the loyalty of
millenni...
So what
was at the
bottom?
Store
associates
ranked 11th out of
12 features.
Instant ownership
Touch & feel
Exclusive products & bargains
Shopping with friends
Inspiration & ideas
Associates
79%
75%
...
I try to avoid stores
because the customer
service is so bad.
– gen-x male
in the past, store associates
were knowledgeable about things
but i think that’s gone away.
most of the time you go into
a...
retail crime
of the century
Invest in
people
Opportunity
Customer service,
customer focused 86%
Factors that consumers consider
of high importance when choosing
small businesses
S...
Customer service,
customer focused
Personal, intimate,
human, face-to-face86%
84%
Factors that consumers consider
of high ...
Reinvent the role of
your store employee.
Think of...
Think of...
Think of...
Think of...
Think of...
Think of...
invest in the one asset
online can never trump:
invest in the one asset
online can never trump:
people.
The emotional connectivity
that a store associate brings
is the ultimate differentiator
between shopping online and
shoppi...
Summary (so far)
1 Stores are winning
1
2
Stores are winning
But not for long
1
2
3
Stores are winning
But not for long
Employee status to
consumer is deplorable
store of
the future
stores must evolve
and actually be
something more in the
minds of shoppers
Be...
The Store of the Future
Be social
Be open
Be captivating
Don’t be...
The Store of the Past
Don’t be...
loud
Don’t be...
contained
Don’t be...
boring
Don’t be...
dis-engaged
Don’t be...
warehousesque
Don’t be...
cluttered
Don’t be...
horizontal
Don’t be...
littered with random technology
Don’t be...
terrifying
Don’t be...
conservative
Don’t be...
old-school
Source: businessinsider.com, 7 Retailers That Are Closing A Ton Of Stores
Barnes & Noble
226
To close between
2011-2021
To...
conclusion
Our findings reflect a deep truth:
Human beings are,
and will always be,
socially driven.
however...
Stores must invest to retain
cultural relevance and gain
next-generation loyalty.
the closer you are to a
physical amazon (warehouse),
the more vulnerable you are
to getting destroyed by...
it’s easy to compete
with us, just do what
we don’t do.
– SAM WALTON
wdpartners.com
How to get this study:
he nd.
Thank you...
T E
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
New Retail Day'14 - 6. maj - Lee Petersen, WD Partners
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New Retail Day'14 - 6. maj - Lee Petersen, WD Partners

  1. 1. amazon can’t do THAT Lee Peterson EVP, Creative Services WD Partners wdpartners.com
  2. 2. amazon can’t do that
  3. 3. agenda Our sponsor
  4. 4. agenda Our sponsor Why?
  5. 5. agenda Our sponsor Why? Amazon
  6. 6. agenda Our sponsor Why? Amazon Study Vitals
  7. 7. agenda Our sponsor Why? Amazon Study Vitals Findings & Results
  8. 8. agenda Our sponsor Why? Amazon Study Vitals Findings & Results BE the Store of the Future Video
  9. 9. agenda Our sponsor Why? Amazon Study Vitals Findings & Results BE the Store of the Future Video Conclusion
  10. 10. WD is a customer experience expert for global food and retail brands. Our mission is to deliver innovative solutions that will drive and shape the future of retail. 46 years 10 offices worldwide 350+ people
  11. 11. What We Do insights & strategy design & brand digital services operations engineering architecture & engineering program management
  12. 12. Thought Leadership Wiring the Customer Experience How Consumers Are Embracing Fast-Emerging Digital Technologies Retail's Next Generation How Millennials Will Change Shopping The New Killer App: Stores You Have Stores, Use Them! The Continuum of Cool How Successful Brands Stay Relevant Crossing the Generations Supermarket Showdown Leaders and Laggards in the Battle for Consumer Preferences in Physical and Digital Grocery Experiences The Fundamentals of Aisle Attraction Increasing Center-Store Traffic How In-Aisle Merchandising Attracts
  13. 13. Our Partners BIG BOXCPG CONVENIENCEGROCERY SPECIALTY RETAILFOOD SERVICE
  14. 14. why?
  15. 15. nce upon a time... O
  16. 16. Retail was simple.
  17. 17. There was a customer, a list and a store.
  18. 18. So we opened stores.
  19. 19. And then we opened a lot of stores.
  20. 20. And a lot more stores.
  21. 21. Buy online ’96 BUY! Until one day it changed...
  22. 22. MILLIONS OF STORES But we kept opening stores.
  23. 23. Until someone had an even better idea.
  24. 24. So what once looked like this only a short time ago...
  25. 25. Now looks like this.
  26. 26. What does this mean for retail?
  27. 27. It means... Customers can buy anywhere.
  28. 28. Anytime...
  29. 29. THEY ARE ALWAYS SHOPPING!
  30. 30. WE ARE ALWAYS SHOPPING!
  31. 31. And a lot of it is being done like this...
  32. 32. And less and less through these.
  33. 33. More and more through these guys...
  34. 34. the 900 pound gorilla
  35. 35. Number 9 retailer in the US 2nd fastest growth retailer of the top 50 in the US Source: Stores.org, 2013 Top 100 Retailers
  36. 36. Over the past year: 180 million customers, bought 3.5 billion items Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  37. 37. Over the past year: $75+ billion sales in 2013 Source: The New York Times
  38. 38. Over the past year: Added about 25,000 employees Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  39. 39. Over the past year: Built several new warehouses across US & world Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  40. 40. Over the past year: Hired 75,000+ part-timers for the holiday season Source: The Wallstreet Journal
  41. 41. Over the past year: Integrated with Proctor & Gamble Source: The Wallstreet Journal, October 2013
  42. 42. Over the past year: Sunday delivery with USPS Source: The New York Times, November 2013
  43. 43. Over the past year: Planning a new 3.3 million-sq-ft headquarters Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  44. 44. Over the past year: Near downtown Seattle, with biospheres Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  45. 45. sales Amazon has reached a point where they surf a feedback loop of dominance. Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  46. 46. sales profit Amazon has reached a point where they surf a feedback loop of dominance. Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  47. 47. sales profit investment Amazon has reached a point where they surf a feedback loop of dominance. Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  48. 48. Amazon has reached a point where they surf a feedback loop of dominance. sales profitexpansion investment Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  49. 49. Source: fool.com, How Long Can Amazon.com Defy Gravity? 2005 2006 2007 2008 2009 2010 2011 2012 0% 10% 20% 30% 29.66% 29.34% 27.15% 4.19% 0.99% Apple Profit Margin Microsoft Corporation Profit Margin Google Profit Margin Wal-Mart Stores Profit Margin Amazon.com Profit Margin 40%
  50. 50. The very concept of online shopping has become synonymous with Amazon. Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  51. 51. Harris Interactive2013 Brand Equity Poll
  52. 52. 2013 Brand Equity poll: Measured brand familiarity, quality perception and how likely consumers will buy Polled more than 38,000 US residents Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  53. 53. The results put Amazon on top: Achieved the highest overall score in the survey’s 25-year history Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  54. 54. The results put Amazon on top: More than half said Amazon was the first site they went to when shopping online Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  55. 55. The results put Amazon on top: Nearly half said they were likely to have orders delivered to Amazon branded lockers Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  56. 56. 2/3 among younger respondents Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  57. 57. Amazon topped the Harris Interactive poll for companies that Americans trusted most. Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  58. 58. AMAZON ISN’T A COMPANY YOU WANT TO HUG; IT’S A COMPANY THAT DOES EXACTLY WHAT IT SAYS IT WILL DO–EVERY TIME. Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  59. 59. Since shopping has changed so much... Source: WIRED Magazine, The Only Thing Amazon Has to Fear Is Amazon Itself
  60. 60. Is Amazon the store of the future?
  61. 61. Is Amazon the company of the future?
  62. 62. study vitals
  63. 63. Surveyed 1,700 consumers using a nationally syndicated panel Seven in-depth focus groups with three generations of shoppers: Millennials, Gen-X and Boomer Quantitative & qualitative shopper research
  64. 64. 4% Mature 24% Millenial 31% Gen X 41% Boomer Hispanic 17% Caucasian 62% African-American 12% Asian 6% Other 3% Female 53% Male 47%
  65. 65. Rankings based on the top two boxes, appeal and influence on purchase behavior.
  66. 66. store strengths vs. online strengths This study isolates twelve experience attributes of shopping online vs. in-store as defined by consumers and redefined by us.
  67. 67. Experience attributes Exclusive to online shopping
  68. 68. One-click shopping Price comparison Suggestive selling Unlimited options Online reviews & recommendations online attributes
  69. 69. One-click shopping Price comparison Suggestive selling Unlimited options Online reviews & recommendations online attributes
  70. 70. One-click shopping Price comparison Suggestive selling Unlimited options Online reviews & recommendations online attributes
  71. 71. One-click shopping Price comparison Suggestive selling Unlimited options Online reviews & recommendations online attributes
  72. 72. One-click shopping Price comparison Suggestive selling Unlimited options Online reviews & recommendations online attributes
  73. 73. Experience attributes Exclusive to in-store shopping
  74. 74. Instant ownership Touch & feel Shopping with friends Store associates Store experience in-store attributes
  75. 75. Instant ownership Touch & feel Shopping with friends Store associates Store experience in-store attributes
  76. 76. Instant ownership Touch & feel Shopping with friends Store associates Store experience in-store attributes
  77. 77. Instant ownership Touch & feel Shopping with friends Store associates Store experience in-store attributes
  78. 78. Instant ownership Touch & feel Shopping with friends Store associates Store experience in-store attributes
  79. 79. Experience attributes Shared online and in-store
  80. 80. Ideas & inspiration Exclusive products & bargains shared attributes
  81. 81. Ideas & inspiration Exclusive products & bargains shared attributes
  82. 82. findings & results
  83. 83. Stores are winning
  84. 84. The top 2 features for physical shopping beat all online features.
  85. 85. 79% 75% 68% 69% Appeal Influence on purchase Instant ownership Touch & feel Instant ownership Touch & feel Instant ownership Touch & feel Store experienceAggregated all consumers across three generations.
  86. 86. i’ve been excited online, it’s just not the same thing as shopping in the store. – Millenial male
  87. 87. Amazon still can’t compete with... I can just get in my car and get it...
  88. 88. Amazon still can’t compete with: I can just get in my car and get it... Now.
  89. 89. Appeal Rankings for online vs. in-store features
  90. 90. Touch & feelOnline recom 79% 59% No. 1 in-store feature No. 1 online feature Rated reviews as very/ extremely appealing Rated instant ownership as very/extremely appealing
  91. 91. Instant ownership Touch & feel Excl. products/bargains Reviews Price comparison Experience Unlimited options One-click shopping With friends Ideas & inspiration Associates Suggestive selling 79% 75% 65% 59% 57% 55% 48% 47% 42% 40% 31% 27% Appeal rankings In-store features are in orange. Online features are in blue. Shared features are in gray.
  92. 92. Influence on purchase Rankings for online vs. in-store features
  93. 93. 69% 53% No. 1 in-store feature No. 1 online feature Rated reviews as very/ extremely influential for purchase Touch & feelOnline recom Rated touch and feel as very/extremely influential for purchase
  94. 94. Touch & feel Instant ownership Excl. products/bargains Reviews Price comparison Experience Unlimited options With friends Ideas & inspiration One-click shopping Associates Suggestive selling 69% 68% 57% 53% 48% 46% 36% 34% 32% 31% 24% 20% Influence on purchase rankings In-store features are in orange. Online features are in blue. Shared features are in gray.
  95. 95. well, i don’t find anything exciting about shopping online. I just do it because i like to comparison shop. I like to find the best price, but it’s really not thrilling or exciting. it is very informative though. i like that part. – gen-x shopper
  96. 96. for now, emotional benefits trump functional.
  97. 97. But not for long The Millennial erosion
  98. 98. millenials are different.
  99. 99. Shopping anytime, anywhere, for anything they want is the cost of entry.
  100. 100. I like the convenience of online shopping; you don’t have to get dressed. you don’t have to be social. i can still have my crazy kids running around and get just what i need while i’m multi-tasking. – millennial female
  101. 101. You feel powerful. you feel like you can get anything you want. you feel like you can get any brand at any time. when you’re shopping in store, you feel like you have to settle for that brand because they don’t have anything else. – millennial male
  102. 102. Most appealing to Millennials Rankings for online vs. in-store features
  103. 103. Unlimited options Customer reviews Instant ownership Price comparison Touch & feel Excl. products/bargains One-click shopping Shop w/friends & family Suggestive selling Experience Inspiration & ideas Store associates 1 4 7 7 4 3 10 8 2 5 8 9 5 1 11 10 3 2 9 12 6 6 12 11 Millennials Most Appealing Boomers Most Appealing
  104. 104. Millennials are more comfortable with mobile shopping overall. More than 3x more likely to buy than Boomers. Source: 2012 WD Partners study, Wiring the Customer Experience
  105. 105. Millennials are more comfortable with mobile shopping overall. More likely than a Boomer or Gen-Xer to have made a purchase on Amazon. Source: 2012 WD Partners study, Wiring the Customer Experience
  106. 106. Millennials are more comfortable with mobile shopping overall. 2x more likely as Boomers to make purchases on Amazon 2-3 times a month. Source: 2012 WD Partners study, Wiring the Customer Experience
  107. 107. the vastness of just everything is right at your fingertips. you can look at macy’s. you can look at walmart. you can look at target. you can look at amazon. you can look at all your stores at once. – millennial female
  108. 108. 70% Millenial Gen-X Boomer 64% 68% 60% 54% 45% Ranking online customer reviews as most appealing Ranking online customer reviews as influential for purchase Millennials value peer reviews and seek information from trusted sources before making purchases. Price comparison Unlimited options Online reviews & recommendations
  109. 109. sometimes getting things in the mail is like christmas or something, it is exciting waiting for things to arrive at your door when you could go to the store and get it. – millennial female
  110. 110. Millennials grew up with this
  111. 111. the window of opportunity for retailers is closing fast, especially for retailers eager to capture the loyalty of millennials.
  112. 112. So what was at the bottom?
  113. 113. Store associates ranked 11th out of 12 features.
  114. 114. Instant ownership Touch & feel Exclusive products & bargains Shopping with friends Inspiration & ideas Associates 79% 75% 65% 42% 40% 31% 68% 69% 57% 34% 32% 24% Ideas & inspiration Exclusive products & bargains ship Shopping with friends Store associates Appeal Influence on purchase ship Shopping with friends Store associates Ideas & inspiration Exclusive products & bargains Instant ownership Touch & feel Shopping with friends Store associates Store experience Instant ownership Touch & feel Shopping with friends Store associates Store experience
  115. 115. I try to avoid stores because the customer service is so bad. – gen-x male
  116. 116. in the past, store associates were knowledgeable about things but i think that’s gone away. most of the time you go into a store and they don’t know anything about anything. – boomer female
  117. 117. retail crime of the century
  118. 118. Invest in people Opportunity
  119. 119. Customer service, customer focused 86% Factors that consumers consider of high importance when choosing small businesses Source: Web.com and Toluna, Consumer and Small Business Perception Survey, Sep 10, 2013
  120. 120. Customer service, customer focused Personal, intimate, human, face-to-face86% 84% Factors that consumers consider of high importance when choosing small businesses Source: Web.com and Toluna, Consumer and Small Business Perception Survey, Sep 10, 2013
  121. 121. Reinvent the role of your store employee.
  122. 122. Think of...
  123. 123. Think of...
  124. 124. Think of...
  125. 125. Think of...
  126. 126. Think of...
  127. 127. Think of...
  128. 128. invest in the one asset online can never trump:
  129. 129. invest in the one asset online can never trump: people.
  130. 130. The emotional connectivity that a store associate brings is the ultimate differentiator between shopping online and shopping in-store.
  131. 131. Summary (so far)
  132. 132. 1 Stores are winning
  133. 133. 1 2 Stores are winning But not for long
  134. 134. 1 2 3 Stores are winning But not for long Employee status to consumer is deplorable
  135. 135. store of the future
  136. 136. stores must evolve and actually be something more in the minds of shoppers
  137. 137. Be... The Store of the Future
  138. 138. Be social
  139. 139. Be open
  140. 140. Be captivating
  141. 141. Don’t be... The Store of the Past
  142. 142. Don’t be... loud
  143. 143. Don’t be... contained
  144. 144. Don’t be... boring
  145. 145. Don’t be... dis-engaged
  146. 146. Don’t be... warehousesque
  147. 147. Don’t be... cluttered
  148. 148. Don’t be... horizontal
  149. 149. Don’t be... littered with random technology
  150. 150. Don’t be... terrifying
  151. 151. Don’t be... conservative
  152. 152. Don’t be... old-school
  153. 153. Source: businessinsider.com, 7 Retailers That Are Closing A Ton Of Stores Barnes & Noble 226 To close between 2011-2021 To close by end of 2015 Closed in 2013 Closed in 2012 and 2013 To close by 2015 To close between 2014 - 2019 To close by May 2014 225 200 185 180 175 33 Staples GameStop The Gap Aeropostale JCPennyAbercrombie & Fitch 0 50 100 150 200 250 Hundreds of Retail Stores Are Closing US Retail Store Closings
  154. 154. conclusion
  155. 155. Our findings reflect a deep truth: Human beings are, and will always be, socially driven.
  156. 156. however...
  157. 157. Stores must invest to retain cultural relevance and gain next-generation loyalty.
  158. 158. the closer you are to a physical amazon (warehouse), the more vulnerable you are to getting destroyed by...
  159. 159. it’s easy to compete with us, just do what we don’t do. – SAM WALTON
  160. 160. wdpartners.com How to get this study:
  161. 161. he nd. Thank you... T E

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