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Consumer Products and Retail   the way we see itAll-Channel Experience:Engaging with Technology-Enabled Shoppers In-StoreH...
Case Study: Albert Heijn Uses                                    People today seamlessly integrate the                    ...
Consumer Products and Retail                 the way we see itFigure 1: Digital Tools for Each Step of a Shopper’s in-Stor...
Surface computing and                      Augmented reality applications Case Study: Boulanger Launches its             m...
Consumer Products and Retail         the way we see it                                            POS applications can als...
In-Store Tech Trends to Watch                                      • Mobile coupons: Users of mobile                      ...
Consumer Products and Retail         the way we see it                                                         Recommendat...                About Capgemini and the                Collaborative Business ExperienceTM       W...
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All channel experience: Engaging with Technology Enabled Shoppers


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How New In-Store Digital Tools Can Drive Value for Your Shoppers and Retailers

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All channel experience: Engaging with Technology Enabled Shoppers

  1. 1. Consumer Products and Retail the way we see itAll-Channel Experience:Engaging with Technology-Enabled Shoppers In-StoreHow New In-Store Digital Tools Can Drive Value forShoppers and Retailers
  2. 2. Case Study: Albert Heijn Uses People today seamlessly integrate the across all channels and touchpoints, Dynamic Pricing and Digital Signage use of all types of technologies in their including physical stores.1 Stores need to Reduce Waste on Fresh Produce lives, including the way they shop – at to offer experiences consumers can’t any time, at any location. As a result, have in the digital space, by becoming Netherlands-based grocery retailer they are more informed and selective destinations of choice. They need to Albert Heijn wanted to test advanced about the products and services blur the boundaries between digital technology solutions for intelligent waste they want and use, and are more and physical. And retailers need to management at store level in order to empowered towards the industries re-examine their strategy to provide a reduce waste in its produce departments. that serve them. seamless experience across the entire The retailer initiated a pilot together customer buying journey. with Capgemini, Toshiba TEC and other In this environment, the growth partners. of mobile features and device The ability to provide a superior The intelligent waste management convergence such as smartphones are in-store shopping experience is solution is based on adjusting the driving mobile commerce. At the same critical for retailers to drive value messaging on electronic signs to reflect time, store visits are being enhanced for consumers. According to a changes in pricing, product information, by dynamic digital displays and survey by RSR, 88% of retailers with promotions and plan-o-grams. The personalization through hand-held annual revenue over $1 billion cite system compares predicted and actual devices or the shopper’s own phone. “improving the customer experience” sales rates and analyzes expected These changes provide retailers with as one of their top three uses of deliveries and current stock levels to the opportunity to drive greater value in-store technology.2 Retailers can determine what predefined measures by making the switch from “talking to” target several levers to help create an must be executed to avoid overstock or towards “engaging with” consumers experience-led in-store environment: imminent out-of-stock situations. The and shoppers. solution consists of centrally controlled • Easy access to information wireless digital displays and shop floor Creating an Experience-Led through smartphone apps, surface hand-held scanners (to be used by In-Store Environment computing devices, self-service mandated personnel with the knowledge A growing number of digital channels, kiosks, digital signage and public and experience to make decisions from apps to kiosks to the web, are social networks. regarding freshness and promotions to replacing elements of the shopping • Faster response to shopper increase sales). experience that would previously queries with hand-held/multi-touch have occurred in a physical space, devices, augmented reality and The solution has resulted in numerous calling for the store environment to online product recommendation benefits, including: evolve. This shift requires retailers to engines. • Lower costs and increased sales due think differently about the shopper • Ability to locate products quickly, to reduced waste experience and service model enabled by digital and e-paper • Improved corporate social responsibility signage and smartphone apps. by addressing the food waste issue • Reduced labor and print costs and • Quick and easy checkout through the elimination of price discrepancies the use of self-checkout kiosks, between shelf labels and POS systems personal shopping scanners/mobile POS, mobile phone payments and contactless payments. Digital Tools Drive Value for Shoppers and Retailers Powerful digital tools can be used in a wide range of applications in a retail environment to provide a more seamless experience (Figure 1). Following is a closer look at some of these applications.1 “How Digital is Transforming Physical Experiences,”, Customer Experience Blog, Capgemini, Dec. 2, 20102 “The 21st Century Store: The Search for Relevance,” RSR, June 20112
  3. 3. Consumer Products and Retail the way we see itFigure 1: Digital Tools for Each Step of a Shopper’s in-Store Journey 1 Customer is tracked real time from the moment 2 1 he or she steps inside the store Customer receives information on store layout, 2 6 product placement 3 Receives personalized offers and information 3 from retailer Can search for information on specific 4 products of interest Is greeted by sales associate who is aided by 7 5 digital tools 4 Gets information on product’s price, its 6 nutrition facts, in-store stock levels, etc. 8 9 Customer compares price in other stores, also 7 checks customer reviews Customer self-scans the products in his or her 5 8 10 shopping basket 9 Pays by mobile or through Near-Field Communication (NFC) card 10 Receives e-mail or SMS receipts and vouchersSource: CapgeminiSmartphones allow retailers to mobile applications such as “geo- Retailers can also improve theirinteract with customers at every fencing” or location-based services understanding of the shopper buyingstep of their shopping journey. retailers can identify customers in the journey by tracking smartphone usageThe significant rise in the smartphone vicinity of a store. They can then use in store, which can be a key inputuser base globally is leading retailers this technology to entice customers for improved store design and leverage this technology to into the store by sending out messages And location-based capabilities makeenhance interaction with shoppers. on products, promotions and exclusive it easier for retailers to reach theAnd for good reason. According deals to consumers in the geo-fenced customer at any time before, during orto a Google survey, 70% of U.S. area. after a shopping trip.smartphone owners use their devicewhile shopping in-store, and 74% During the in-store shopping While smartphones offer significantof smartphone shoppers made a experience, smartphones can be opportunities to enhance thepurchase as a result of using their used to scan a barcode or run a shopper experience, they alsosmartphone.3 price comparison, access product present challenges. For example, information, check customer reviews retailers have to depend on third-Before the actual in-store experience, and ratings, and get quick in-store/ party communications providers forshoppers can use their smartphones aisle navigation. After the shopping connecting with shoppers, and someto access a store locator, search for experience, shoppers may use their consumers worry about the possibleproduct availability, and access price phones to track and trace a product erosion of privacy.and promotional coupons. Using delivery from the store.3 “The Mobile Movement: Understanding Smartphone Users,” Google/IPSOS OTX MediaCT, April 2011Engaging with Technology-Enabled Shoppers In-Store 3
  4. 4. Surface computing and Augmented reality applications Case Study: Boulanger Launches its multi-touch devices add a can improve in-store First iPhone Application new dimension to interactive communications and enhance The Situation: Boulanger is a leading shopper engagement. the overall shopping experience. multimedia and electronics multi-specialist These touch-based graphical While still in an early stage, based in France since 1954. In early interactive devices allow people to augmented reality has the potential 2010, as part of a panel of leading French interact with content and information to make a great impact on the retail retailers, Boulanger was introduced on their own or collaboratively with industry for both shoppers and to a set of new mobile solutions. After the presentation, the company asked their friends and families. With retailers. In-store touchpoints like Capgemini to design and build a new multi-touch devices, in-store shoppers interactive kiosks can be used to iPhone solution – one that would offer can locate and select products on enhance real-world data or images superior functionality and service to its touchscreens at an interactive station, with computer-generated input customers. download product information on a such as images, graphics or data. In The Solution: The Capgemini Innovation mobile device or locate items in-store. addition, apps based on augmented Factory team worked with a team from Tablets can be used for checkouts reality using object recognition and Boulanger to design and integrate an by applying finger signatures. These GPS can help shoppers locate and find application that would not only meet basic devices can also issue SMS or e-mail their way to or through a store. customer requirements (geo-localization receipts, thus enabling faster checkout. of stores, item description and price, etc.) Additional retail applications include And increasingly retailers are using but would actually go beyond to set a tablets as “assisted sales tools” to product reviews via image recognition, completely new standard for the industry. provide more consistent and efficient price checks, product availability, The Result: In the first six weeks after sales support by store staff. virtual fitting rooms and interactive it was launched, the application was window displays. Augmented reality downloaded more than 20,000 times, with peaks at 1,500 downloads per day. Surface computing technologies such can provide an enhanced way to It quickly reached “top 25” status for as tablets help retailers provide a interact with shoppers in real time. all iPhone applications in its category. connected experience with a higher However, at this early stage, the set-up The success of the application has also degree of service. Benefits include and management costs associated with resulted in a strong association of the increased in-store sales and conversion augmented reality may outweigh the Boulanger brand with a young, dynamic rates; a reduced learning curve for sales benefits. and eager clientele. new employees; a more engaging “Our aim was to develop a user-centric and efficient buying experience for Point-of-sale technology is application designed to bring real value shoppers; and the ability to assist moving from traditional to to our shoppers and customers. This is a sales associates in up-selling and advanced systems, keeping in complete application enabling purchase mind the changing customer. cross-selling with quick product transactions with a real-time inventory look-up feature in the nearest selected information, customer opinions, etc. POS applications have the potential to stores, loyalty management and product move beyond transaction-only devices guarantees,” said Patrick Perret, Director On the downside, most of these to become the primary medium to of Information Technology Studies at devices are relatively low on mobility, deliver customer-centric retailing. New Boulanger. compared with smartphones. applications provide the opportunity In addition to mobility and speed, other In addition, tablet apps are still to improve the in-store experience by standout features of the application are: in a nascent stage so a complete reducing consumer checkout times understanding of their functionalities and abandon rates. For example, • Direct access to all available products in nearby stores is not yet clear. “line-busting” applications use wireless • Booking an item and retrieving it in the devices to emulate the cash register store within the hour and give credit card shoppers the • Real-time updates on special events and chance to skip checkout lines, helping promotions to enhance a store’s service image. • Real-time order/repair status This type of portable POS is especially • Display of all purchase tickets to enable an improved after-sales service suited for goods and orders that are • Viewing products using augmented large and where a store employee is reality wherein a Boulanger item could be closely involved such as in a DIY store visualized as it would appear at home. or home center. 4
  5. 5. Consumer Products and Retail the way we see it POS applications can also improve Mobile payments is a growing convenience and flexibility. Store area for retailers and is gaining employees can connect a wireless importance due to the rise access point into the retail backbone in smartphone adoption by and create an instant “store” for customers. special occasions or venues such Retail applications offer the potential as graduations or sporting events. to improve the shopping experience And retailers can improve operating and increase efficiency. Mobile efficiency through faster processing, payment methods include proximity faster interaction with store employees, payment approaches like Near-Field improved access to product and Communication (NFC), barcodes inventory data, and better employee and numeric codes, as well as tools. remote methods like message-based, browser-based and application-based Although advanced POS solutions payments. can help retailers improve customer centricity, the rate of adoption remains In one example, a mobile app was slow. A key hurdle is the potential launched that uses facial recognition need for POS upgrades in order to to confirm a shopper’s identity in accommodate the new applications. payment transactions. And a new retail mobile payment service based on NFC technology lets consumers pay for items merely by waving or tapping their smartphones near a register at checkout. Although the field of retail mobile payments is dynamic and evolving, several challenges exist, including: • Capital constraints and difficulty in quantifying the technology ROI • Lack of comprehensive industry standards for mobile technology adoption • Government restrictions/regulations related to payment security concerns and fraud • Unwillingness of stakeholders like mobile service providers and banks to adopt mobile payment systemsEngaging with Technology-Enabled Shoppers In-Store 5
  6. 6. In-Store Tech Trends to Watch • Mobile coupons: Users of mobile • Video analytics: Video analytics canSeveral additional in-store digital coupons are expected to exceed enable retailers to study store traffictechnologies are also being tested by 300 million globally by 2014, flow, dwell time, shopper intentretailers: triggered by the apps revolution.4 and conversion rates. Current video Recent innovations in coupons are analytics technology has reached a• QR codes: In Korea a grocer is using leveraging digital trends like geo- point where it can detect how and QR codes innovatively to expand its targeting and group buying. when a shopper is actively engaged presence. The retailer has erected • Social Local Mobile Media with promotional messaging, several virtual stores in subway (SoLoMo): The increased adoption determine basic demographic data stations, taking the form of large of smartphones and related mobile such as gender, and then use that billboards with virtual store that are apps has given rise to a concept information to push relevant content exact replicas of the physical stores. called “SoLoMo,” which represents to the shopper in real time. Shoppers can use their smartphones the coming together of social, local to scan a QR code near the food and mobile media. SoLoMo works item, which gets delivered shortly to on the principle of mobile discovery a location of their choice. that utilizes a device’s portability and location awareness to push content.Figure 2: Reaping the Benefits of In-Store Digital Technology Real-time store monitoring Intelligent tracking system that identifies the shopper, his/her Shopper behavior intelligence, shopper loyalty technology like video last visit date, purchase patterns information analytics Easy access to information, greater functionality, Smartphones Apps provide a virtual map for store layout, aisle information faster connectivity Coupons related to any promotional campaigns can be Promotions for targeted customer segment, call-for- Mobile coupons directly sent to customers action, personalization Augmented reality/surface Check product information, stock levels, product placement Customer engagement, interactive experience computing device on aisles Assisted selling by store staff for an interactive and engaging Process-driven selling, customer conversion, up- Tablets shopping experience selling and cross-selling E-paper signage/digital Supporting customer service by providing information related Price accuracy, dynamic pricing, improved customer signage to product, pricing readability Helps customers make informed decisions by Smartphones/tablets Customer experience, information aggregation providing price comparisons, reviews Self-checkout kiosks/ Alternative to traditional POS for faster and easier checkout Self-service, queue management, faster checkout advanced POS systems Mobile payments/NFC Transactions authorized using mobile device can enable Faster speed of transaction, information security, technology speed and convenience at cash counters customer experience Mobile POS/advanced POS Supports sustainability efforts by retailers by providing Quick checkout, paperless transactions systems paperless receipts and quick checkout for customersSource: Capgemini4 “Navigating the Mobile Coupon Landscape,” Edo Interactive, June 2010 6
  7. 7. Consumer Products and Retail the way we see it Recommendations: How to Deliver self-service capabilities. The Role of Employees in Digital Become a Digital Master Do-it-yourself technology like self- Transformation Successful in-store digital scanning and hand-held devices will The impact of in-store digital transformation requires retailers to be adopted in a big way by customers transformation is not only being felt adopt the right tools to keep pace as they look for tools to make by shoppers, but also by employees. with technology-enabled shoppers. shopping and checking out easier and According to a study conducted by RIS Retailers must craft a sound strategy faster. News, 50% of participating retailers said that is centered around the shopper. that providing their associates with better Communicate a new reality. tools was their number one priority.5 To become a digital master, retailers Retailers should continue to adopt should consider the following technologies like augmented reality Retailers today are looking to invest in recommendations: that help provide the “Wow!” factor for employee-facing technologies to help shoppers and can improve interactions improve in-store business processes Focus on the shopping journey. between the two parties. as well as to provide more consistent Retailers must implement digital and efficient sales support for shoppers. Consider existing applications. tools and technologies while always Employee-operated mobile handheld Retailers will need to balance adopting considering the full customer devices for line busting, in-store new technology innovations with shopping journey – from awareness customer service, barcode scanning and their existing technology applications to after-sales service – to help ensure a inventory operations are among the new to ensure smooth integration and seamless experience. digital tools being used in-store. fast implementation in order to meet Differentiate yourself. Technology rapidly changing shopper preferences. adoption should be treated as a source of competitive advantage by retailers Focus on people. A successful looking to improve their in-store in-store digital transformation is customer experience. only possible if both the people and technology pillars are bound by robust Make it mobile. Mobile technology and well-defined processes. Employee such as smartphones, mobile POS and involvement and training is critical in mobile payments will play a key role technology implementation to realize in in-store digital implementations. the full potential of the technology and Rapid smartphone adoption by to achieve the business objectives. customers will drive the manner in which they interact with retailers, both within and outside the store.5 “Store Systems Study 2011,” RIS News, January 2011Engaging with Technology-Enabled Shoppers In-Store 7
  8. 8. About Capgemini and the Collaborative Business ExperienceTM With around 120,000 people in A deeply multicultural organization, 40 countries, Capgemini is one of the Capgemini has developed its own world’s foremost providers of consulting, way of working, the Collaborative technology and outsourcing services. The Business Experience™, and draws on Group reported 2011 global revenues of Rightshore®, its worldwide delivery EUR 9.7 billion. model. Together with its clients, Capgemini More information is available at: creates and delivers business and technology solutions that fit their needs and drive the results they want. Rightshore® is a trademark belonging to CapgeminiFor more information on our “Engagingwith Technology-Enabled ShoppersIn-Store” research and solutions, pleasecontact:Brian Girouardbrian.girouard@capgemini.comLaurence Jumeauxlaurence.jumeaux@capgemini.comThe “Engaging with Technology-EnabledShoppers In-Store” research wasconducted by Capgemini’s ConsumerProducts & Retail Strategy Lab: ManvendraKhati and Pranav Toshniwal.Rightshore® is a registered trademark belonging to Capgemini. The information contained inthis document is proprietary. Copyright © 2012 Capgemini. All rights reserved.