#IBMRetailMcr - Today's Digital Customer, Martin Butler, IBM UK
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Martin Butler, Vice President, Retail Industry Leader, IBM UK shares the latest trends with today's digital customers at the IBM Driving the Best in Retail Innovation event - 23rd Sept 2014, The Lowry, Manchester
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#IBMRetailMcr - Today's Digital Customer, Martin Butler, IBM UK
- 1. Martin Butler Vice President, Retail IBM UK 1 @MartinJButler
- 3. Greater Expectations Customers are asking for tomorrow, today.
- 4. Our research has evolved from understanding the presence of technology in shopping to its importance in choosing a retailer. 2010 Meeting the Demands of the Smarter Consumer ‘Use of technology’ 2011 Capitalising on the Smarter Consumer ‘Personalisation’ 2012 Winning Over the Empowered Consumer ‘Trust’ 2013 From Transactions to Relationships ‘Transactions by channel’ 2014 Greater Expectations ‘Expectations’
- 6. Going deeper, the data outlined four classes of consumers differentiated by their Omnichannel maturity Importance of key Omnichannel capabilities 1199%% 4400%% 2299%% 1122%% Traditional Transitioning Tech-intrigued Trailblazers Comfort with shopping in multiple channel
- 7. IBM has analyzed 170 retailers in 12 Western European countries with more than 12,000 data points Data structure/ Data Sample/ Goals Criteria Categories 12,000 datapoints analyzed 75 evaluation criteria in 13 segments Evaluation of the omnichannel maturity of retailers in different segments Criteria analyzed Customer list Criteria fulfillment - Focus on retailers that operate in both worlds: online and offline retailing - All criteria were evaluated from a customer perspective: The team did real purchases in order to evaluate all criteria - Segments: Fashion & shoes, department stores, grocery, electronics, DIY, drugstores, furniture, sporting goods, specialty retailer, general goods, telco, toys Criteria Categories
- 9. There is a correlation between online share and OmCI Score, both on segment and country level Country Online Share vs. OMCI Score 15% 55% Ireland France Sweden Germany Italy UK Countries with a high proportion of online sales achieve a higher average OMCI Score Segment Online Share vs. OMCI Score High Electronics Share Fashion & Shoes Online DIY Drug Store Furniture Low Low High Avg. OMCI Segment Score Source: Gartner Online Share vs IBM OMCI Survey Grocery High Low Low High Online Share
- 10. The Top 10 Omnichannel retailers in Western Europe 80,0% France 80% 73,9% 73,9% UK UK 6 6 82,2% Germany 11. Sporting Goods, France 68,3% 12. Electronics, Sweden 67,4% 13. Department Store, UK, 67,0% 14. Fashion & Shoes, Spain 66,5% 15. Electronics, Germany, 66,1% 16. General Goods, UK, 66,1% 17. DIY, UK, 65,2% 18. Electronics, Germany, 64,3% 19. Fashion and Shoes, UK, 64,3% 20. Fashion & Shoes, Spain 63,5% 70% 75,7% France 75% 80% 70,9% Spain 70,9% Spain 73,9% 73,9% UK UK 5 5 78,3% 78,3% UK UK 3 3 75,7% France 4 4 70,0% France 70,0% France 9 9 (Verkkokauppa) 68,7% (Verkkokauppa) 68,7% Finland Finland 82,2% Germany 1 1 1010 7 7 70,4% 70,4% UK UK 8 8 80,0% France 2 2
- 11. Recommendations from the 2014 Survey Build a 360 degree picture of your customer Converge the physical and digital experience Define your “FUTURE BRAND” Innovate and transform
Editor's Notes
- Martin’s notes:The IBM Institute of Business Value has been conducting large scale consumer research for a number of years. Five years ago, we focused on the use of technology in general. But by 2014, with technology being as omnipresent as it is, we decided to focus on understanding consumers’ asks of retailers in an omnichannel world.
- Martin’s Notes: We see plotted out four consumer classifications that were identified by examining shoppers’ attitudes and behaviors about omnichannel shopping and the use of technology. In the upper-right, we have the trailblazers. This group we will follow in the analysis because they are making retail decisions today based on the presence of absence of key capabilities. We also will follow this group because we believe the majority of shoppers will follow the path of adopting the technologies the trailblazers have adopted and asking for the same things as trailblazers need today. When we look at the four groups, we can see that three groups cluster together in the upper right quadrant. One group, the traditional, lags behind in omnichannel shopping and the use of technology. It’s important to note that the voice of this traditional shopper is a comfortable voice to retailers and pulls other shopper groups towards the mean of less involvement with technology. But even traditional shoppers have omnichannel requirements. So everyone is an omnichannel shopper. And all the groups need to be looked at.