Strategies for Success in a Widely Distributed Shopping Environment

@TonyCultEx
The Great Consumer Diaspora
Strategies and tactics for achieving success in a
widely distributed shopping environment
Obrigado!
Anthony Long – Kimberly-Clark Corp
Chicago, USA @tonycultex

@TonyCultEx@TonyCultEx
Future Shopping

Understanding and
marketing to the
“Connected/Disconnected”
consumer
• Familiar topics but with
more detail
• New areas that are highly
relevant to your lives as
marketers
• Four key takeaways

Why do we say
“widely distributed”?
• Shopping historically has
been a focused effort
• Shopping prevented you
from doing anything
else
• Unless, of course, you
wanted to shop.

The shoppers haven’t gone away, and they aren’t
shopping less.
Today, shopping can happen anywhere.
And does.

You may have noticed
some common words
are missing…
• E-commerce
• Omnichannel
• Digital
• Data

Set your company / brand up for success in a
retail and brand-building environment where
retailers and brands are no longer in control.

Our conversation
1. Retail Apocalypse
2. Model Innovation
3. The Future of Search
4. Radical Personalization
5. Path Through Purchase

Retail Apocalypse
I didn’t go to Google looking
for “retail apocalypse” but I
sure found it…

Record US store closures
in 2017
Since January 1 2017,
retailers have announced
plans to shutter more than
6,700 stores in the U.S.1
Beats the previous all-time
high of 6,163 store closings,
from 20082
Sources: 1 - Fung Global Retail & Technology; 2 - Credit Suisse

Retail Apocalypse

Record US store closures
in 2017

“The number of shops across the
UK is expected to fall by 22pc from
281,930 to 220,000 in 2018,
according to forecasts by the Centre
for Retail Research.”
https://www.telegraph.co.uk/business/2018/01/02/will-2018-have-store-retail-sector/
Very similar story
around the world
“Retail sales plunged 6.2 percent in
2016 - the worst decline since 2001
- before rebounding to grow 1.4
percent over the first 10 months of
2017.”
http://aldianews.com/articles/culture/12-retailers-brazils-largest-city-optimistic-about-2018
“Continual economic
slowdown adversely affects
retailing in South Korea”
Euromonitor - Retailing in South Korea – Jan 2018

Blame retail decline
on e-commerce. Everybody does it.
2015 2016 2022
Middle East
and Africa
2015 2016 2022
Asia Pacific
2015 2016 2022
Latin America
2015 2016 2022
Central and
Eastern Europe
2015 2016 2022
Western Europe
2015 2016 2022
North America
Data Traffic Per Smartphone (GB/Month)
Source: Ericsson “Future mobile data usage and traffic growth”
0
5
10
15
20
25
Total retail sales worldwide from 2015 to 2021 (USD Trillions)
Source: eMarketer

Headline: People Are
Shopping Differently

Top Global Retailers

Not “Pure” Retailers

Not “Pure” Retailers 2016 GMV
$547 Billion
167,000,000
2018 - $90
Billion
2017 GMV
$11.7 Billion
150,000,000
3,000,000
90% African
GDP

Retail’s Identity Crisis vs.
People’s Shopping Reality
SINGAPORE SOUTH AFRICA CHILE

Connected/Disconnected Consumers
Shopping is always on, but only when they think about it

Model Innovation

Defining
Channel Innovation
Channel innovation centers
on changing the way a
product is delivered to
customers.

Defining
Model Innovation
• Doesn’t require new
technologies
• Doesn’t need the creation
of brand-new markets
• Delivering existing
products using existing
technologies

“If I pretended that I had
no departments,
procedures or people to
protect, how would I
remake this business?”

But Model Innovation is where value is created
both for consumers and shareholders.
Most retailers and brands are deathly afraid
of Model Innovation.

Model innovation is a magnet
for consumers.
Model innovation can come
from anywhere.

Innovation is
always welcome

Which brings us
to Search

Search Engine
Search Appliance

Because without search – in the
most
Think differently about search.
invisible.expansive sense – you’re

The Interface of
The Future
“…we're forcing the graphical user
interface into a mobile-interface world
even as the information and tasks
available to us continue to increase…
What we need now is to be able to
simply talk with our devices.”
Ron Kaplan - https://www.wired.com/2013/03/conversational-user-interface

(You’ve been using the
interface of the future
since the day
you were born.)

Voice search is
the future.
And it will disrupt
how brands and retailers
engage with
consumers.

Consumers need search.
Brands and retailers need to catch up.

The Future of Search:
Context

Radical Personalization

at Scale

Garbage In, Garbage Out

The role of AI
in achieving

Radical Retail
Personalization
“The key is to bring data to life
through recommendations and
personalization.”
Tom O’Keefe
CEO – 4Tell
https://www.glossy.co/store-of-the-future/nordstrom-is-investing-in-technology-to-
support-personalization-and-customer-service

• Click and collect
• Subscription
Personalization doesn’t require AI

• Consumer selects products to add to subscription cart
• Consumer sets preferred cadence of deliveries
• Consumer adds payment & shipping information
• The items are delivered - and the consumer is
charged - according to the set schedule
SubscriptionSubscription ≠ Auto-Replenish
Subscription is not the same as “Auto Replenish”
because the sale is made according to a set
schedule, not automatically when needed.
(This is not a real product, it’s just an example)

• Messy, invasive consumer experience
• Never learns subscriber preferences
Where Subscription Falls Down
• UX doesn’t allow consumer control – either as-
is or start-over
• Subscription designed to benefit retailer &
brand

The Opportunities for Personalization Are Vast
Because Subscription Tells Us A Lot
• Categories - Cross-sell / upsell potential
• Adjacencies – If this than what
• Sharing – Incent the shopper to share
• List Building – This is the real goal

CRM-Driven Auto-Replenishment
Click Auto
Replenish
Auto replenishment sign
up confirmation email
Subscription pop up
Delivery
Order Origination (1st Time)
Edit order in cart,
submit
Replenishment
reminder email
Delivery
Reorder as-is
Edit order
Replenishment Process

Paving the Mobile
Personalization Path
From a Glossy.co article about
Yoox.com:
• In 2017 Yoox’s relaunched
mobile app drove more than
50% of sales
• The relaunch was designed
to create a more
personalized experience
• In-app personal shopper
experience
• Upgraded search functions
that direct consumers to
products with higher
purchase potential
http://www.glossy.co/the-move-to-mobile/how-yooxs-mobile-app-is-driving-
more-than-50-percent-of-sales

Personalization is all
about building
relationships
The Path Through
Purchase

This boils down to two acronyms:
• CRM –Customer Relationship Management
• PDP – Product Detail Page
The Path Through Purchase:
Turn Transactions Into Relationships

The goal of CRM was to improve customer
retention, "which would ultimately drive sales
growth.”
CRM defines the systems and approaches that
establish and extend a relationship between
a seller and a shopper
Bain & Co. - http://www.bain.com/publications/articles/management-tools-customer-relationship-management.aspx

Why start with CRM?
• Growing your revenue
isn’t your true goal;
growing your “mailing
list” is
• Have multiple paths
available for you to
communicate with your
audience
• This is your
organization’s most
valuable asset
Wait a minute…
what’s this about
the PDP’s new job?
The PDP is basically a
digital approximation of
what happens when you
take a product from the
shelf to the front of the store
to pay for it.
This needs to change.

Football
Futebol

Conventional thinking
about a PDP
The PDP is where we
“convert” a
consumer’s “intent” to
become an actual
purchase.
XXXXXXXX
XXXXXX

The real role of the PDP:
Link a past sale to a Future sale
https://www.smartinsights.com/ecommerce/ecommerce-analytics/ecommerce-conversion-rates/

Achieving Success in A
Widely Distributed Shopping Environment

1. Brick and mortar retail
is not being ruined
by e-commerce.
The so-called “Retail
Apocalypse” is purely in the
eyes of those interested
parties that collect rent from
retailers or benefit from
store openings.
Good retail will always
succeed.

2. The connected/
disconnected consumer
is willing to be
your friend…
but on their own terms.
• Our arms-length
relationship with
“consumers” needs to
change
• Social shows us that
“consumers” are really just
“people”
• People visit and experience
our retail channels and buy
and use our brands.

3. Your approach as
a marketer must evolve
for these people
to let you in

4. The various steps
consumers go through
to buy something online
will start
to combine or meld.
Or even go away.

@TonyCultEx
Thank You!
Anthony Long – Kimberly-Clark Corp
Chicago, USA @tonycultex

Strategies for Success in a Widely Distributed Shopping Environment

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