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Playing to Win the Retail Holiday Season

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Strategies to Increase In-Store Traffic and Sales

Published in: Retail
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Playing to Win the Retail Holiday Season

  1. 1. Playing to Win the Retail Holiday Season: Strategies to Increase In-Store Traffic and Sales
  2. 2. © © RevTrax 2014. All trademarks and service marks herein are the property of RevTrax, Forrester, Inc., or their respective clients and may not be used without their prior written consent. All rights reserved. Stephanie Martone Manager of Strategic Initiatives RevTrax @stephmartone, @RevTrax Adam Silverman Principal Analyst Forrester Research, Inc. @AdamKSilverman
  3. 3. © © RevTrax 2014. All trademarks and service marks herein are the property of RevTrax, Forrester, Inc., or their respective clients and may not be used without their prior written consent. All rights reserved. RevTrax To Securely Prove and Optimize Digital Promotion Effectiveness Prove how and why digital promotions drive sales … then map your course to continuously improve digital marketing Turn online promotions into secure learning and optimization tools Measure online to in-store channel effectiveness
  4. 4. Playing to Win the Retail Holiday Season: Strategies to Increase In-store Traffic and Sales Adam Silverman, Principal Analyst October 8th, 2014
  5. 5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5 “The pace of change is accelerating faster than anticipated a year ago.” — Blake Nordstrom, president of Nordstrom April 2014
  6. 6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6 Mobile connects us wherever we go
  7. 7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7 Firms are NOT set up for success 74% …of businesses think they have a digital strategy. 34% …of executives think their firm has the right strategy. 16% …of executives believe their firm has the skills and resources necessary to deliver. Source: Forrester / Russell Reynolds 2014 Digital Business Online Survey
  8. 8. Footfall to European retail outlets in decline: Germany: -6.4% Italy: -6.2% UK: -2.9% Spain: -3.1% Source: Forrester; “While Retail Footfall decreases, digital influence on Consumer shopping Behavior increases” 2/26/14
  9. 9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9
  10. 10. © 2014 Forrester Research, Inc. Reproduction Prohibited 10 Agenda › How customer behavior continues to evolve…quickly › The retail response – today and in the future › Recommendations for Holiday 2014
  11. 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 This year, 52% of all US retail sales will either be influenced by or occur online
  12. 12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 Holiday online sales continue to grow
  13. 13.  73% - expect to click and collect  86% - expect to return online orders in the store  89% - expect to view the in-store inventory of products online A commissioned Forrester study with Purolator, May 2014 Customers have high expectations when it comes to channel integration
  14. 14. 14 19% 70% An Engaging Brand Is Important To Me The Store Associate Is The Best Resource For Information Source: NA Technographics Customer Lifecycle Buy Phase Q1 2012 and NA Technographics Customer Lifecycle Discover Phase Q3 2102
  15. 15. © 2014 Forrester Research, Inc. Reproduction Prohibited 15
  16. 16. Younger shoppers check price in-aisle urce: Forrester’s North American Consumer Technographics Retail Survey, 2014. Base: 5007 US online Adults (18+). Image source: https://www.flickr.com/photos/kdinuraj/ Percent of US online consumers who have price checked on their mobile phone while in store in the past 3 months Golden Generation (70+)………….….9% Older Boomers (59-69)…………….….9% Younger Boomers (49-58)………..….16% Gen X (35-48)…………………………28% Gen Y/Millennials (26-34)……..……..33% Gen Z/Young Millennials (18-25)…....30% Total U.S……………………………….23%
  17. 17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17 Agenda ›How customer behavior continues to evolve…quickly › The retail response – today and in the future ›Recommendations for Holiday 2014
  18. 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 Today
  19. 19. Enterprise inventory visibility and store fulfillment lead the pack
  20. 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 75% of customers are likely to visit a store if in-store inventory is marked available online . . .
  21. 21. . . . however, more than one-third of customers are unlikely to visit a store if they can’t check inventory online.
  22. 22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22 Ikea exposes the supply chain
  23. 23. Learn Assist Buy Operate The associate facilitates engagement
  24. 24. 66% of luxury shoppers more likely to shop or interact with sales associates who are equipped with mobile devices Source: North American Technographics Retail Survey 2013
  25. 25. © 2014 Forrester Research, Inc. Reproduction Prohibited 25 The Future
  26. 26. © 2014 Forrester Research, Inc. Reproduction Prohibited 26 The Store As A Platform Analytics OMS POS CRM Ops Source - https://www.flickr.com/photos/statefarm/
  27. 27. © 2014 Forrester Research, Inc. Reproduction Prohibited 27 Location Context Grows In Importance Source: https://www.flickr.com/photos/pr9000/
  28. 28. The store becomes theater
  29. 29. Source: Mirande Prynne, “Variable price tags being tested on high street,” The Telegraph, October 22, 2013 (http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10395403/Variable-price-tags-being-tested-on-high-street.html) Image source: B&Q Googe+ (https://plus.google.com/112415411810890959234/about) The store becomes personal
  30. 30. The store becomes social
  31. 31. Promises delivery two full days quicker than before The store drives service
  32. 32. Data will need to transform into insights. Image source: Bizj (http://media.bizj.us/view/img/849021/retailnext-kinetic-heat-map*304.png)
  33. 33. © 2014 Forrester Research, Inc. Reproduction Prohibited 33 Agenda ›How customer behavior continues to evolve…quickly ›The retail response – today and in the future › Recommendations for Holiday 2014
  34. 34. 2014 Holiday Best Practices 1. Pay attention to price 2. Channel integration is expected 3. The store experience matters 4. Think mobile first now 5. Win on key days 6. Use data to capture behavior and measure performance
  35. 35. © 2014 Forrester Research, Inc. Reproduction Prohibited 35 1. Pay Attention to Price Dynamic Pricing Exists – Have A Strategy › This doesn’t mean you should promote yourself to zero margin. › Customers not likely to pay significantly more for an item in store › Get help here – find a pricing vendor who can help you monitor your offering Source: USA today, 9/28/13
  36. 36. © 2014 Forrester Research, Inc. Reproduction Prohibited 36 The store “premium” isn’t large How much more would you consider paying to purchase a product in a physical store rather than buying it online so that you could have the product immediately rather than wait for it to be shipped to you? 52% 18% 6% 4% 4% 3% 1-5% higher in store 6-10% higher in store 11-15% higher in store 16-20% higher in store 21-25% higher in store More than 25% higher in store Source: Forrester Life Cycle Survey, Q1 2013
  37. 37. © 2014 Forrester Research, Inc. Reproduction Prohibited 37 2. Channel Integration Is Expected The experience must tie together many different touchpoints › Enable your associates and customers to see inventory in your stores. (Easier said than done) › Establish processes to handle online orders that need to be returned in-stores Source: USA today, 9/28/13
  38. 38. © 2014 Forrester Research, Inc. Reproduction Prohibited 38 3. The Store Experience Matters Focus on service and engagement › Use mPOS technology to ‘line bust’ › Focus on convenience over experimental technology › Train associates to engage with customers who are using digital devices Source: USA today, 9/28/13
  39. 39. © 2014 Forrester Research, Inc. Reproduction Prohibited 39 Associates = tour guides
  40. 40. © 2014 Forrester Research, Inc. Reproduction Prohibited 40 4. Think Mobile Now The future is here NOW › Expect more customers to use mobile phones in all locations to find the best prices and deals › Use opt-methods of tracking customer behavior across channels › Focus on your mobile experience; both from an influence and transactional perspective Source: USA today, 9/28/13
  41. 41. © 2014 Forrester Research, Inc. Reproduction Prohibited 41 Mobile is a bigger part of holiday shopping % of online buyers who shopped on a mobile device Thanksgiving CyberMonday 18% 21% 34% 2011 2012 2013 23% 38% 2012 2013 Source: Bizrate Insights/Forrester Holiday Flash Survey, 2013
  42. 42. © 2014 Forrester Research, Inc. Reproduction Prohibited 42 Mobile buying is growing during key time periods In a retail store, 3% Home, 76% Elsewhere , 22% Where the mobile device was used (CyberMonday) Source: Bizrate Insights/Forrester Holiday Flash Survey, 2013 16% 17% 26% 45% 53% 75% Locat retail stores General store information Read product/store reviews Price checks Browse or research products Make purchases For which of the following did you use your mobile device today (CyberMonday)?
  43. 43. © 2014 Forrester Research, Inc. Reproduction Prohibited 43 5. Win On Key Days This DOES NOT mean you must offer margin busting deals › This season is SHORT – just 28 days between Thanksgiving and Christmas › Buy into holiday “door busters” › Test offers to determine the best margin producing AND new customer acquisition campaign Source: USA today, 9/28/13
  44. 44. © 2013 Forrester Research, Inc. Reproduction Prohibited Growth On Key Holiday Sales Dates Continues To Outpace Overall Holiday Growth
  45. 45. © 2014 Forrester Research, Inc. Reproduction Prohibited 45 6. Leverage Data Leverage new in-store tools to drive conversion › In-store analytics growing in popularity, although riddled with privacy concerns › Leverage programs that can track customer behavior in all touch points and help with marketing attribution › Ensure you understand different segment behavior during holidays vs non holiday periods Source: USA today, 9/28/13
  46. 46. +30% — same store sales growth -16% — shrink
  47. 47. Thank you Adam Silverman +1 415.294.8177 asilverman@forrester.com @AdamKSilverman
  48. 48. © © RevTrax 2014. All trademarks and service marks herein are the property of RevTrax, Forrester, Inc., or their respective clients and may not be used without their prior written consent. All rights reserved. Questions ?

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