The future of retail michael weissman svic presentation

1. The Future of Retail How to put it back together when it all falls apart

2. Outline • Macro view • Implications • Causes • Recommendations

3. 30,000” view

4. WHAT IS RETAIL?

5. Ecommerce Value Chain Customer perspective Seller perspective Selection Finding the right product quickly Customer acquisition & merchandising CMS Buy Fast, simple & affordable transaction 1-click ordering Process order Easy to pay the way want to pay Cart Get it shipped Convenient delivery & cost Warehouse & logistics Get support Easy to try, return, or work through issues Omni-channel support

6. Ecommerce Value Chain Selection SINGLE RETAILER Benefits of scale - Purchase power - Selection - Logistics efficiencies Buy Process order Get it shipped Get support

7. Yet… Retail is breaking

8. Becoming disaggregated Discovery Buy Selection Transact DeliverySupport Share

9. PLACE

10. Changes in Distribution Drive Innovation

11. Instacart

12. Where can it head? • Robotic sorting • Robotic delivery • Autonomous cars

13. Moving to Omni-Channel

14. INSIGHT | WHAT HAPPENS WHEN RETAIL IS NO LONGER A PLACE?

15. DISCOVERY & SEARCH

17. Path to purchase used to be linear

18. Most time was in store Actively shopping After the exchange Preparing to shop

19. Retailers are too-transaction centric • Didn’t focus on path to purchase (P2P) • Missed most of the shopping process • Less opportunities to create ROI and monetization Only focused here Missed opportunity Missed opportunity 15 different sites over 5-6 weeks Lots of content Actively shopping After the exchangePreparing to shop

20. Discovery time in-store is declining 34% drop Shoppers are going elsewhere to learn about what to purchase. This raises acquisition costs, too.

21. Money is made along the path to purchase not, just at transaction Discover Purchase Use Marketing $$ Margin $$ Repeat/Upsell $$

22. Ad revenue has dropped 50% in 6 yrs 50% drop Advertisers know retailer circulars don’t work like they used to.

23. The Purchase Path is now convoluted

24. The number of touch points is growing exponentially.

25. © 2013 SYNQY CONTENT IS EXPLODING Breaking through is harder than ever “We generated more content in the last 2 days than we did from beginning of time until 2003” – Eric Schmidt, Google 2003TodayBeginning of time 2 Days today > 6,000 years

27. © 2013 SYNQY CONSUMERS DON’T READ, THEY SCAN Read only 8% of the article (32 words) 40% view ½ story http://www.slate.com/articles/technology/technology/2013/06/how_people_read_online _why_you_won_t_finish_this_article.html Only 40% see more than ½ the article And they only read 20% of what they see. Source: Jacob Nielsen

29. © 2013 SYNQY AND THEY RARELY GET TO THEIR CTA DESTINATION Most customers are lost quickly when asked to click away from what they are doing 0% 20% 40% 60% 80% 100% 120% 1 2 3 4 5 6 7 8 Number of clicks 33% 11% 3.7% 1.2% 0.41% 0.14% 0.05% % of customers still with you

30. Marketing $ are moving from retailers to online properties like Google Discover Purchase Use Marketing $$ Margin $$ Repeat/Upsell $$

31. Product Listing Ads – big trend

32. Internet Scavenger Hunt BUY

33. MARKETING TRANSPORTATION$100B

34. Marketing dollars are substantial… $83 Google Ad dollars per order* $10 margin per order Source: Google average ad cost @ 3% convert rate, Margin assumption of 50% 8x bigger

35. Retailers are getting commoditized Price becomes differentiator

36. Who is this retailer?

37. Who is this retailer?

38. Let’s skip search altogether!

39. INSIGHT | WHO CONTROLS SHOPPER?

40. DIGITAL SHELF

41. How will we disrupt merchandising? Discovery Buy Selection Transact DeliverySupport Share

42. HOW WILL YOU CUT CUSTOMER ACQUISITION COSTS?

43. Add value through proximity $$ Path to purchase POS The closer to the time and place of purchase, the more valuable the marketing investment

44. Persuasion is weakest at the shelf

45. Brand Storytelling and product marketing are separated

46. Limited retail usability innovations 2002 2014

47. Object of Desire

48. Object of Desire The desire comes from the marketing and brand work

49. Ecommerce Today No persuasive brand content How Brands Market

50. Object of Desire Great content is stripped when it goes to resellers

51. Object

52. INSIGHT | RETAILERS ARE COMMODITIZING BRANDS

53. Commoditized shopping experience

54. Commoditized shopping experience

55. There’s very little other differentiation Section Attribute TRU Amazon Walmart Target Details & Description Product details ✔ ✔ ✔ ✔ Product description <50 word ✔ ✔ ✔ ✔ Quick bullet facts about product ✖ ✔ ✔ ✖ Rich-media content Roll over image/zoom ✔ ✔ ✔ ✔ 30 Second video commercial ✔ ✖ ✖ ✖ Customer and shipping information Customer Question & Answer ✔ ✔ ✔ ✖ Customer reviews ✔ ✔ ✔ ✔ Featured/related items ✔ ✔ ✔ ✔ Fast shipping options ✔ ✔ ✔ ✔ Local store search ✔ N/A ✔ ✔ Price comparison/financing options ✖ ✔ ✔ ✖

56. INSIGHT | RETAILERS ARE COMMODITIZING THEMSELVES

57. Enthusiasm gets lost, not amplified

58. What Happens Without Impulse Buying?

59. Merchandising Matters.

60. Didn’t deliver right content • Most shoppers still go to vendor websites for information • Over 50% of shoppers who abandon shopping carts go to visit vendor websites Lack of vendor information is driving nearly 40%of cart abandonment 100% of carts 70% abandon 56% Of abandons leave to visit vendor’s site for informa on 39% of cart loss due to missing info

61. Sources: LivePerson, IBM/CoreMetrics 100% of shopping carts 32% Buy The cost of stripping away the content

62. Sources: LivePerson, IBM/CoreMetrics 100% of shopping carts 68% Abandon 32% Buy The cost of stripping away the content

63. Sources: LivePerson, IBM/CoreMetrics 100% of shopping carts 32% Buy 41% Other reasons 27% Seek rich vendor content The cost of stripping away the content

64. Transactional info, not lifecycle info • Focused only on one small sliver of time and narrow content • Didn’t think end-to- end or whole consumer lifecycle BEFORE TRANSACTION DURING AFTER How-to Guide User Manual Coupons & Discounts Promo ons Tes monials Demo Video Customer FAQs Product Detail Support Social Sign-up

65. Win the discovery phase with more relevant content Discover Purchase Use Give them a reason to shop you in this phase

66. Content Enhances Discovery VENDOR PRODUCT REGISTRATION VENDOR-BASED PRODUCT SUPPORT & CONTENT INFORMATION PROMOTIONAL INFO BUYER’S GUIDES & EXPERT ADVICE LIVE VENDOR CHAT AUTHENTIC UNBOX VIDEOS AND USER PHOTOS INTERACTIVE MARKETING MATERIALS CAUSE MARKETING MATERIALS RICH-MEDIA SHARING HOW-TO TUTORIALS AWARDS

67. INSIGHT | RELEVANCE WINS DISCOVERY

68. COMPARISON SHOPPING

69. HOW WILL YOU FIGHT SHOWROOMING?

70. THE PATH ISN’T CLEAR

71. AMAZON FIREFLY

72. Google Value Chain Selection Buy Process order Get it shipped Get support PLA Adwords Express Wallet Wallet Express Express ? 44% of transactions today in ecommerce

73. Where are you? Advice: Be careful with your partnerships

74. INSIGHT | SCALE MATTERS AGAIN.

76. THE VENDOR PERSPECTIVE

77. WHAT HAPPENS WHEN 3-4 BIG RETAILERS CONTROL EVERYTHING?

78. Vendors need a toxin. Retailers too. Need a way out.

79. Vendors need to protect their channel.

80. As Google search goes local, National brands lose control

81. Vendors must transform discovery Discovery Buy Selection Transact DeliverySupport Share • Lowers the Google tax • Increase flatter retail • Shortens path to purchase • Can move location of retail

82. INSIGHT | IT’S THE NETWORK. STUPID.

83. HIDDEN PROBLEM. Product marketing content doesn’t flow to resellers.

84. PRODUCTS FLOW

85. PRODUCTS FLOW Content Doesn’t Flow

86. Work gets replicated

87. Problem • Gathering the rich media content • Organizing and managing it • Keeping it current • Displaying the content across sites, platforms and apps Too hard and expensive for companies to do themselves

88. INSIGHT | IT’S THE NETWORK. STUPID.

89. NOW WHAT?

90. EMBRACE THE COMPLEXITY

91. Turn Pointers to Engagement into Places of Engagement

92. Built engagement everywhere

93. LEVERAGE THE POWER OF THE NETWORK

94. Introducing SYNQY

101. Rich, interactive brand content Improves your results and product pages Curates together Live Feed How it works

102. SEE IT IN ACTION

103. Sources: LivePerson, IBM/CoreMetrics 100% of shopping carts 32% Buy Upside of fixing 91% growth 41% Other reasons 27% Seek rich vendor content SYNQY can deliver real financial results

104. Everybody Wins Shoppers Get better experience Resellers Increase revenue per visitor Brands Improve persuasion at the pivotal moment of truth

105. UPDATE ONCE – CORRECT EVERYWHERE

106. See more clearly

107. Hassles eliminated • Simplify shopping • No more wasted time • Discovery is comprehensive

108. DYNAMIC & RESPONSIVE

109. Costs Eliminated Gets rid of manual efforts to keep content current and relevant

110. INSIGHT | PARTNER OR PERISH

111. WHAT IS RETAIL?

112. Summary • Retail is disaggregating • Product discovery sits as pivotal way to survive • Key is to partner with vendors • Think network, not static • Ride the change to survive

113. Thank you michael@synqy.com 925-200-1047

114. Q&A | LET’S DISCUSS

The future of retail michael weissman svic presentation

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The future of retail michael weissman svic presentation

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