9 reasons as to the reasons why retail is going through tectonic shifts and its not the shift to online.

1. Paul Fennemore pfe@sitecore.net
• Digital Customer Experience Consultant: Sitecore
• Associate Lecturer: Oxford Brookes University Business School
The Consumer Apocalypse:
customer experience reinvented

2. Tectonic Shifts
UK 2017: 6000 outlets closed, more planned USA 2017: 7000 closed. 12000 in 2018

3. TectonicShifts
Multiple Forces………..

4. 4
The March of Technology

5. 5
The Customer Journey is Omnichannel
Today’s Prospect to Customer Experience Interactions
= Managed touchpoints = Unmanaged or semi-managed touchpoints
Identify moments and touchpoints that meet
expectations & drive growth
Online
ads Email Digital
billboards Search
Landing
Page
Social
3rd Party
SitesDigital
Touchpoints
Physical
Touchpoints
Website
PR TV, Radio,
Print
Word of
Mouth
Direct
Mail
Store
Mobile
App
IM
Chat
Social &
Online
Community
Call
Center
Email Newsletter
Promotion
on Invoice
Print
Offer
Invitation
Event
Print
Itinerary
Word of
Mouse

6. 6
Channel Shift: Online Sales
Source: Office for National Statistics, 2018
• UK online sales: 17.1% of total Jan 2018
• Online growth: 12% year-on-year
• Food and clothing record online sales: 25% year-on-year-growth
• Compared to: all channel growth Q1 2018 - flat 0.1% (inflation)
and disintermediation

7. 7
• Politics: Brexit
• Consumer confidence: variable
• Wages: flat, gig economy
• Costing of living: up
• Overheads: rent, rates & insurance
• Margins: squeezed
• Aging population: the ‘grey dollar’
Economical/Political

8. 8
Shift from product to subscriptions/memberships
Amazon Prime Subscription Service: 100 million members

9. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners. 9
Shift to Proximity
Smaller store formats growing fast

10. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners. 10
Shift to Proximity

11. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners. 11
Shift in Consumer Culture
• Now society
• Information gluttony & overload
• Mobile phone addiction
• Attention is a commodity
• Importance of authenticity
• Sharing economy/co-creation
• Everyone is a marketer/micro influencers
• Asset ownership: rental generation
• Shift away from materialism to life experiences
• Rise of consumer expectations

12. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners. 12
Brand loyalty declining
Loyalty penalty
£900 per annum

13. Wrong strategic priorities
eConsultancy, Oct 2018
“The absence of a business case is a key reason for lack of investment in digital strategy,
along with poor boardroom understanding and the perception of digital as tactical|”

14. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners. 14
Perfect Storm
1. Technological Determinism on steroids
2. Omnichannel consumer
3. Shift to online
4. Economical/political
5. Subscription services
6. Proximity purchasing
7. Consumer culture
8. Waning brand loyalty
9. Organisations wrong strategic priorities

15. 15
New Era of Market Forces/
New Era of Business Models
All market sectors are impacted
Snapshot Examples……………………………..

16. © 2001-2016 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand and product names are the property of their respective owners.
Fin-techs: consumers expect to be in control and fee transparency
Globally, nearly $23 billion of venture capital and growth equity has
been deployed to fin-techs over the past five years, and this
number is growing quickly
$5 billion invested in 218 Fin-techs in Q1 2016
e.g. Monzo, a challenger bank
Sales has become service - service has become sales

17. 17
Law-techs: consumers expect service, transparancy and value

18. 18
• Founded 2010
• Sharing economy
• 8 million students
• 32,000 courses
Massive open online course (MOOC)
Edu-techs: consumers expect choice on their timescales

20. © 2001-2016 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand and product names are the property of their respective owners.© 2001-2016 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand and product names are the property of their respective owners.
Travel-techs: consumers expect less stress & best prices
20
69% of leisure travellers worry that they're
not finding the best price or making the best
decision while booking a trip.
Perceived risk: one of the most important
factors affecting online purchases of travel
and tourism services, both in general and for
low-cost carriers.

21. 21
Drink-techs: consumers expect choice
IntelligentX: Beer brewed by artificial intelligence

22. TectonicShifts
Withchangecomes
opportunity

23. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners. 23
Strategies: thinking beyond the transaction
Product To Subscription/Membership Services
Selling/Advertising To Supporting/Informing/Entertaining
Multichannel To Omnichannel/Personalised/Contextual
Transition to………………………………………………………………………………
“A pessimist sees difficulty in
every opportunity, an
optimist sees opportunity in
every difficulty.”
To Life Experiences/Storey TellingFeatures

24. © 2017 Sitecore Corporation A/S. All rights reserved. Sitecore® and Own the Experience® are registered trademarksof Sitecore Corporation A/S. All other brand and product names are the property of their respective owners.
Paul Fennemore pfe@sitecore.net
• Digital Customer Experience Consultant: Sitecore
• Associate Lecturer: Oxford Brookes University Business School
The Consumer Apocalypse:
customer experience reinvented