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LEANSERVICECREATION
Tailored Retail
Futurice’s point of view
on Retail digital evolution
We create
digital services
for people to love.
Founded in 2000
200+ employees
from 18 countries
LEANSERVICECREATION
Lean
Service
Creation
LSC is a multi-disciplinary way of working
that maximizes the probability of creating
successful digital services
LEANSERVICECREATION
Futurice people
An introduction to Futurice, who we are
and how we work.
Welcome!
1.  DIGITAL? Why should I care?
2.  The Retail DIGITAL ECOSYSTEM
3.  10 TRENDS: their CHALLENGES & OPPORTUNITIES
4.  Quick view on CONSUMERS
5.  Physical and Mental EXPERIENCE JOURNEY
6.  Retail SEGMENTS
7.  Available TECH & TECH to Watch
8.  Conclusion
LEANSERVICECREATION
Summary
Retail is changing fast.
Customers are embracing
digital and starting to behave
in more complex and
challenging ways.
They are shopping
everywhere and at any time.
They research and compare.
They want to make their own
versions of the product.
They want to know how
things are made.
1. Digital?
Why should
I care?
2. Retail Digital
Ecosystem
Shopper
Internet browser:
Chrome
Internet Explorer
Safari
Engagement:
Loyalty program
In-Store offers
Online store offers
Gift cards
Customer behavior
UX cycle experience
Localization:
Cultural issues
Inventory
Transparency
Payment touch points:
In-store
Online store
Kiosks
Mobile payment
Payment touch points:
Family
Friends
Work
Social network
IoT:
Beacons
Kinect
Sensors
Mobile phones & tablet
platforms:
iOS
Android
Windows
Existing services
integration:
Internet banking
Mobile banking
E-commerce platform
Loyalty program
CRM system
3. //10 TRENDS: their CHALLENGES & OPPORTUNITIES
1.  Mobile Confidence
2.  Wearables go retail
3.  Beyond sales / infotainment
4.  Millennial consumers
5.  Brand stories
6.  Consumers become Creators
7.  Going beyond the screen
8.  Touch point immersion
9.  Shared experiences
10.  Brand interaction
10 TRENDS
TREND1
Mobile confidence
TREND1
Mobile confidence
Confidence in the usage of “mobile” is growing
 
Exploring what mobile is capable of
Buying and sharing experiences
Customers feel more and
more confident about the
usage of mobile
applications.
 
Retailers should explore
more mobile capabilities,
as buying and sharing
experiences.
Friends are becoming an
unintentional salespeople,
if they like something you
may like it too.
•  65% of the global population will have
a mobile phone by 2015. (Deloitte)
•  83% of internet usage will be through
handheld devices. (Deloitte)
•  30% of e-commerce transactions
globally will be done via mobile.
(Criteo)
•  53% of e-commerce transactions are
coming from smartphones, rather than
tablets. (Criteo)
•  Facebook and Twitter added buy-it-
now buttons in 2014. Apple Pay
fingerprint recognition. In its first
month, the cash-free system
accounted for 50% of all tap-to-pay
transactions in McDonald’s in the US.
(New York Times)
 
Inventory transparency,
chain supply, logistics and
mobile experience design.
People are still concerned
about security and privacy,
so consider these issues is
important.
 
Customer data integration,
inventory data integration,
mobile e-commerce
services, social media
integration, mobile
payment applications.
Trend intro Facts about the trend Challenges Opportunities
Mobile confidence
Trend 1
TREND2
Wearables go retail
Source:	
  h*p://www.wired.com/2015/03/disney-­‐magicband/	
  
TREND2
Wearables go retail
Experiences that go beyond the screen
Personalized, but also reflects more their identity
Open possibilities to collect and respond to customer info data
Knowing customer better is the key to shape more meaningful and
personalized experiences, physically or even digitally.
Customers are expecting
digital and personalized
experiences, which go
beyond the screen and
that reflects more their
identity.
 
Wearables will make
possible to retailers to
collect data, such as
location, personal info,
social network, previous
experiences, among other
kinds of data. By knowing
customers better, retailers
will shape more meaningful
and personalized
experiences, physically or
even digitally.
•  Most consumers have heard of
wearable technology by now,
according to a new survey from Magid
Advisors. More than a quarter of the
2,500 mobile consumers surveyed said
they planned to buy a wearable
device within 2016.
•  Omni-channel will be the key driver of
growth, but only 38% of senior
executives say Omni initiatives have a
positive impact on profit margins.
(Source: EY Global Media Relations)
Meaningful experiences.
Previous bad experiences
in Retail.
Consumer products and
retail companies struggling
to innovate .
In-door location, smart
lists, in-store digital
experience, loyalty
programs integrated to
on-demand data.
Trend intro Facts about the trend Challenges Opportunities
Wearables go retail
Trend 2
TREND3
Beyond sales
/ infotainment
TREND3
Beyond sales
/ infotainment
Consumers are buying the best experience.
 
Companies are teaching people how to use their products and services.
 
Digital TV is bringing a new generation of advertising models and
customer experiences.
Services are no longer
consumption oriented, but they
are consumer oriented and
consumers are buying the best
experience.
 
Companies are teaching
people how to use their
products and services. They
want users to have the best
experience with their products.
 
Companies like Apple, Google
and Amazon are getting into
the TV models they are also
bringing to companies the
possibility to brands sell
products inside a show rather
than around it (Futures
Laboratory).
•  Buying will begin to live inside of
story  experience, becoming a
natural, integral and shoppable
part of it.
•  Companies like Google, Amazon,
Apple have their own TV channels
and new advertising models.
Android has open platform where
consumers can personalize their
experience.
Technology maturity, what
to do, how long it will take
to get digital right. Are the
retail company prepared
to the customer dialogue?
Meaningful experience, the
exactly moment where the
digital adds to the physical
experience. Finding the
right moment on the
customer journey.
Second screen cross
experiences. It’s time to
start considering how
retail will ride the next
wave of shoppable TV.
Services that help
customer to understand
your brand and help
retailers to understand
them.
Be involved with
customers daily life.
Be part or give the room to
the communities where
they are.
Trend intro Facts about the trend Challenges Opportunities
Beyond sales / infotainment
Trend 3
TREND4
Millennial
consumers
TREND4
Millennial
consumers
Millennial consumers are increasingly concerned about the brand ethics.
They care about how things are made and where they come from.
Technologically-savvy. Online experience integrated into in-store
experience.
They inform their choices. They read up and compare.
Tight budgets, cultured and up-to-date.
Millennials have distinct
relationships with each of their
devices. The amount of time is
less interesting than the role of
each device itself.
Their laptops act as a retail
portal and catalog, their
toolbox, information curator
and also their preferred device
for viewing TV shows.
Their tablets acts as a luxury
that falls somewhere in
between a downsized
entertainment center.
Their smartphones makes
them feel like they are on
steroids, have a fifth limb and
act as a fail-safe antidote to
FOMO (fear of missing out).
92.3% used a mobile phone in 2012,
among whom 63.2% used the mobile
web and slightly fewer used
smartphones. (emarketer.com)
Over half of twitter users are
millennials (16.6m in 2012).
Millennials can not be
defined by a single device.
Seamless multi-channel
experience.
Insatiable need to be
connected and continually
validated for their level of
“insider” status, millennials
are their own medium.
Addressing clearly your
ethics can help millennials
make the choice towards
your products.
Multichannel experiences
to complement in-store
experiences. Hand over’s
are crucial.
Trend intro Facts about the trend Challenges Opportunities
Millennial consumers
Trend 4
TREND5
Brand stories
TREND5
Brand stories
Brands tell their stories. They are storytelling about their heritage and their
brand.
They are opening the curtains to give insights to the way they
manufacture and the materials they use.
The brand story becomes part of the shopping experience.
Find a heritage moment
Behind the scenes  /
Backstage.
People wants to see how things
are done, how they were
created.
Try to remind people moments
and things that they forgot
about. Find the story.
Controls the whole design
process.
People journey, one day in his/
her life. The everyday story.
Companies like Shinola, Dior and Mr
Porter are telling their brand stories,
about their heritage and their mission.
Content creation around how things
are produced. (e.g. Dior, Mr Porter)
	
  
	
  
Previous experiences with
the brand and product.
People are more and more
concerned with ethics.
Telling their brand stories
may need to answer to
some of those issues.
Believable transparency.
Drafting a brand story can
enhance the customer
engagement. Storytelling
approach can help
customers identify with
brand.
Content production
around the brand story
can enrich the products
and shopping experience.
Co-create brand story
with customers and build
up for future.
Trend intro Facts about the trend Challenges Opportunities
Brand stories
Trend 5
TREND6
Consumers
become Creators
TREND6
Consumers
become Creators
Customers are becoming the designers.
 
They will sell customized products to their friends and community.
Consumers will care more about what they can do or create.
Customers are becoming the
designers and the best design
will be perceived as the one
which will give the customer
the power of creation.
 
Consumers will not only buy
from you but also sell the
customized products to their
friends and community.
Consumers will care less about
what they have or buy and
more about what they can do
or create..
•  85% of the 2014 Best Global
Brands have used crowdsourcing
in the last 10 years. (eYeka)
•  The Best Global Brands are three
times more likely to use
crowdsourcing platforms than
websites and social media for their
crowdsourcing efforts. (eYeka)
•  There is a strong commercial case
for personalization - those who
are doing it report 14% uplift in
sales. (e-consultancy)
	
  
	
  
Privacy is a big thing when
you create customers
profile. Retailers need to
treat it very seriously.
Creepiness – avoid
services that jus add extra
work to customer, but
rather gives an amazing
and seamless experience.
Find the right blend
between customer
creation and professional
expertise.
Always needs to be part of
the brand strategy.
New ways and channels to
communicate with
customers.
Know from customers
what they want and how
much they are involved
with your brand.
Ideas about new services
and also how to get the old
ones improved.
Create a controlled
environment in which
creation happens
(ikeahackers, Bugatti, etc.)
Trend intro Facts about the trend Challenges Opportunities
Consumers become Creators
Trend 6
TREND7
Going beyond
the screen
TREND7
Going beyond
the screen
Technology enables extra dimensions to consumer choices.
Emotional conversion. Sense presence more than screen presence.
Collecting meaningful data that can be transformed in to seamless
actions.
Technology is the enabler to
people choices. Tech is part of
a bigger and holistic
experience.
Technology can bring
emotional elements that
involve customers.
Sense presence more than
screen presence. Technology
should bring customers
relevant content that help
them to make decisions.
Technology enables the
collection of meaningful data
that can be transformed in
personalized and seamless
actions
90% of respondents who recalled
reading online reviews claimed that
positive online reviews influenced
buying decisions, while 86% said
buying decisions were influenced by
negative online reviews. (Dimensional
Research)
 
When companies engage and
respond to customer service requests
over social media, those customers
end up spending 20% to 40% more
money with the company. (Bain &
Company)
 
92% of organizations that view
customer experience as a
differentiator offer multiple contact
channels (Deloitte)
Seamless digital
experience
Support / not a broken
computer in the store.
No integrated experience.
Customer sees something
online that they can’t find
in-store.
There is a screen, but
nobody interacts with it or
notices its presence.
Indoor location, hyper
location services, more
effective loyalty programs,
product info (i.e. QR and
RFID code), virtual reality,
wall projections.
Trend intro Facts about the trend Challenges Opportunities
Going beyond the screen
Trend 7
TREND8
The touch point
immersion
TREND8
The touch point
immersion
Extension of the customer journey.
 
Exploration of products in-store.
 
Planned purchases and get Social proof.
Customers seek a seamless shopping experience.
The customer journey doesn’t
start or stop in the store
experience.
 
Customers can anticipate their
buying process via smart lists,
online stores, etc.
 
They can explore products in-
store, search for better prices,
find location of products, look
for more information about the
product, etc.
  
Omni-channel provides
consumers with a seamless
shopping experience across
multiple platforms, including
online and in-store.
A customer’s journey—from first
hearing about a product to
purchasing it—involves a vast and
growing array of encounters with a
product or brand. Consumers “touch”
a brand an average of 56 times
between inspiration and transaction.
(Ed Thompson, Gartner, at the
Gartner Symposium ITxpo in Cannes,
200).
Number of touchpoints is growing due
to digital touchpoints such as blogs,
videos, reviews, etc. The development
of new and engaging touchpoint
opportunities is being accelerated by
technologies such as augmented
reality (AR), Near Field
Communication (NFC), IPTV, and
“SixthSense” technology
Finding the right moment
to go digital.
Controlling organic and
viral social reviews.
 
“Conducting the orchestra”
in a way that all elements
work well together,
unleashing their full
potential.
Living experiences, based
on customer choices.
Everything is a flux, nothing
is static.
Technology can bridge the
challenges with the
opportunities in the
extended customer
journey.
Trend intro Facts about the trend Challenges Opportunities
The touch point immersion
Trend8
TREND9
Shared experiences
(families, friends, etc.)
TREND9
Shared experiences
(families, friends, etc.)
Parents and children go shopping together.
Friends go shopping together.
Friends are taking a sales role with online shopping.
Digital can be more than sharing and recommending.
Retailers should rethink the
whole shopping experience by
adding also a shared
experience and kinds of
dialogue a family members or
friends could have with each
other when going through a
buying customer journey.
A shared experience will add
very important elements as
such how to entertain children
or how to create a shared
buying list with your friend,
among other interesting
customer needs.
The experience is more intense
when shared with another
person.
•  Usually the shopping experience is
not a solitary experience.
•  Market is lacking family services.
Companies usually look to
the individual customer
journey and other
members are considered
stakeholders. Sometimes
they are not even part of
the shopping experience.
Creation of services that
fulfill shared customer
experiences.
Trend intro Facts about the trend Challenges Opportunities
Shared experiences (families, friends, etc.)
Trend 9
TREND10
Brand interaction
TREND10
Brand interaction
Brands allow the customer to interact with them.
The way the interaction takes place and is perceived becomes a feature
of the brand identity itself.
Retailers make use of the digital interactions to add value to brand
communication and to get customer involved with their products and
services.
Brands provide the framework
which customers can freely
interact.
The way the interaction takes
place and is perceived
becomes a feature of the
brand identity itself.
Retailers make use of the
digital interactions to add value
to brand communication and
to get customer involved with
their products and services.
Differentiation and recognition
by the use of new or unusual
interaction modes
communicating the brand
identity.
Interaction branding as a new
emerging field in design.
Big brands such as Google, Coca-
Cola are already doing it.
Interaction shouldn’t only
be entertaining and
diverting but should be a
well planned and
strategically implemented
long-term solution.
Coherence across various
channels.
Rational, habitual and
emotional binding of the
customer to a brand.
Trend intro Facts about the trend Challenges Opportunities
Brand interaction
Trend 10
4. //Quick view on CONSUMERS
Born 1946 - 1964
Baby boomers
Born 1946 - 1964
Baby boomers
•  Many introduced a digital element into their shopping process
•  Pre-purchase research online 
•  Most likely to buy products that align with their values and ethics
•  Involved with some form of health and wellness 
•  The occasion, not life-style (habit, celebration, convenience)
•  Willing to try new things
Born 1965 - 1978
Generation X
Born 1965 - 1978
Generation X
•  They seek product information / Research online
•  Review and rate products online
•  They still respond quite well to other traditional ad-channels
•  Loyal to brands that serve them well
•  They appreciate a diverse range of styles
Born 1979 - 1999
Millennial
Born 1979 - 1999
Millennial
•  Adapt rather quickly to social changes
•  Informed shoppers who stick to tight budgets while still managing to stay up-to-
date and cultured
•  Strive for goods that express their individuality
•  They want to integrate online with in-store experience
•  They are the most technologically savvy generation
•  Social media platforms and applications are incorporated into their lifestyle and
define them digitally
Born from 2000 onwards
Generation
I, Me, One
Born from 2000 onwards
Generation
I, Me, One
•  Reflects the burst of technology within the last decade
•  Instant connection and constant isolation
•  Generation I will drive themselves
•  Enjoying the process the process of getting better
5. //Physical and Mental EXPERIENCE JOURNEY
Physically
Before the visit > in-store >
Immediate post-visit activities >
Later activities
Mentally
Awareness > Expectation >
Inception > Introduction > Evaluation >
Engagement > Motivation > Conversion >
Fulfillment > Transition > Advocation 
6. //RETAIL SEGMENTS
Retail Segments
•  Furniture & Home Furnishings Stores
•  Building Material & Garden Equipment & Supplies Dealers
•  Food & Beverage Stores
•  Health & Personal Care Stores
•  Clothing & Clothing Accessories Stores
•  Recreation & Leisure Activities Stores
•  General Merchandise Stores
•  Electronics & Appliance Stores
•  Specialty Retail Stores
•  Motor Vehicles & Parts Dealers
•  Non-Store Retailers / kiosks and Online Stores
7. //AVAILABLE TECH & TECH TO WATCH
Ready tech & to watch
•  Indoor navigation, location
•  Beacons / hyper local solutions
•  Kinect / body motion scanners
•  Interactive tables & displays
•  Mobile payment
•  Automated stores (smart stores)
•  NFC / RFID
•  QR Codes
•  Virtual Reality
•  Projections 3D
•  Apple payment / iwatch
•  Smart watches
8. //WRAP UP & CONCLUSION
Go mobile
Retailers should explore mobile
capabilities such as payments
and sharing experiences in
greater detail.
Go
wearables
Wearables will make it possible for
retailers to collect data such as
location, personal information, social
network, previous experiences and
more.
The
Creators
Customers are becoming
creators and the best design
is one that allows for
customer creation.
 
Add the
second
screen
All these companies are bringing
new advertising models and
customer experiences to
television. Be aware!
Enrichment
of the
customer
journey
Buying becomes a natural, integral
and shoppable part of the story
experience and the moment of
purchase.
 
//Thank you!
LEANSERVICECREATION
IMAGES
The White Company
The Walt Disney Company
Nike
Mr. Porter
Wikipedia
Google
Ibeacons
Loblaw
Sources
RETAIL NEWS
emarketer.com
Econsultancy.com
Fast Company
TRENDS
Trend Watching
The Futures Laboratory
Eyeka
Hubspot
Trendone
JANE VITA
Senior Service Creator
jane.vita@futurice.com
@janevita
MARIA KULSE
Senior Service Designer
maria.kulse@futurice.com
@mkulse

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Tailored Retail

  • 1. LEANSERVICECREATION Tailored Retail Futurice’s point of view on Retail digital evolution
  • 2.
  • 3. We create digital services for people to love. Founded in 2000 200+ employees from 18 countries
  • 4. LEANSERVICECREATION Lean Service Creation LSC is a multi-disciplinary way of working that maximizes the probability of creating successful digital services
  • 6.
  • 7. An introduction to Futurice, who we are and how we work. Welcome! 1.  DIGITAL? Why should I care? 2.  The Retail DIGITAL ECOSYSTEM 3.  10 TRENDS: their CHALLENGES & OPPORTUNITIES 4.  Quick view on CONSUMERS 5.  Physical and Mental EXPERIENCE JOURNEY 6.  Retail SEGMENTS 7.  Available TECH & TECH to Watch 8.  Conclusion LEANSERVICECREATION Summary
  • 8. Retail is changing fast. Customers are embracing digital and starting to behave in more complex and challenging ways. They are shopping everywhere and at any time. They research and compare. They want to make their own versions of the product. They want to know how things are made. 1. Digital? Why should I care?
  • 9. 2. Retail Digital Ecosystem Shopper Internet browser: Chrome Internet Explorer Safari Engagement: Loyalty program In-Store offers Online store offers Gift cards Customer behavior UX cycle experience Localization: Cultural issues Inventory Transparency Payment touch points: In-store Online store Kiosks Mobile payment Payment touch points: Family Friends Work Social network IoT: Beacons Kinect Sensors Mobile phones & tablet platforms: iOS Android Windows Existing services integration: Internet banking Mobile banking E-commerce platform Loyalty program CRM system
  • 10. 3. //10 TRENDS: their CHALLENGES & OPPORTUNITIES
  • 11. 1.  Mobile Confidence 2.  Wearables go retail 3.  Beyond sales / infotainment 4.  Millennial consumers 5.  Brand stories 6.  Consumers become Creators 7.  Going beyond the screen 8.  Touch point immersion 9.  Shared experiences 10.  Brand interaction 10 TRENDS
  • 13. TREND1 Mobile confidence Confidence in the usage of “mobile” is growing   Exploring what mobile is capable of Buying and sharing experiences
  • 14. Customers feel more and more confident about the usage of mobile applications.   Retailers should explore more mobile capabilities, as buying and sharing experiences. Friends are becoming an unintentional salespeople, if they like something you may like it too. •  65% of the global population will have a mobile phone by 2015. (Deloitte) •  83% of internet usage will be through handheld devices. (Deloitte) •  30% of e-commerce transactions globally will be done via mobile. (Criteo) •  53% of e-commerce transactions are coming from smartphones, rather than tablets. (Criteo) •  Facebook and Twitter added buy-it- now buttons in 2014. Apple Pay fingerprint recognition. In its first month, the cash-free system accounted for 50% of all tap-to-pay transactions in McDonald’s in the US. (New York Times)   Inventory transparency, chain supply, logistics and mobile experience design. People are still concerned about security and privacy, so consider these issues is important.   Customer data integration, inventory data integration, mobile e-commerce services, social media integration, mobile payment applications. Trend intro Facts about the trend Challenges Opportunities Mobile confidence Trend 1
  • 15. TREND2 Wearables go retail Source:  h*p://www.wired.com/2015/03/disney-­‐magicband/  
  • 16. TREND2 Wearables go retail Experiences that go beyond the screen Personalized, but also reflects more their identity Open possibilities to collect and respond to customer info data Knowing customer better is the key to shape more meaningful and personalized experiences, physically or even digitally.
  • 17. Customers are expecting digital and personalized experiences, which go beyond the screen and that reflects more their identity.   Wearables will make possible to retailers to collect data, such as location, personal info, social network, previous experiences, among other kinds of data. By knowing customers better, retailers will shape more meaningful and personalized experiences, physically or even digitally. •  Most consumers have heard of wearable technology by now, according to a new survey from Magid Advisors. More than a quarter of the 2,500 mobile consumers surveyed said they planned to buy a wearable device within 2016. •  Omni-channel will be the key driver of growth, but only 38% of senior executives say Omni initiatives have a positive impact on profit margins. (Source: EY Global Media Relations) Meaningful experiences. Previous bad experiences in Retail. Consumer products and retail companies struggling to innovate . In-door location, smart lists, in-store digital experience, loyalty programs integrated to on-demand data. Trend intro Facts about the trend Challenges Opportunities Wearables go retail Trend 2
  • 19. TREND3 Beyond sales / infotainment Consumers are buying the best experience.   Companies are teaching people how to use their products and services.   Digital TV is bringing a new generation of advertising models and customer experiences.
  • 20. Services are no longer consumption oriented, but they are consumer oriented and consumers are buying the best experience.   Companies are teaching people how to use their products and services. They want users to have the best experience with their products.   Companies like Apple, Google and Amazon are getting into the TV models they are also bringing to companies the possibility to brands sell products inside a show rather than around it (Futures Laboratory). •  Buying will begin to live inside of story  experience, becoming a natural, integral and shoppable part of it. •  Companies like Google, Amazon, Apple have their own TV channels and new advertising models. Android has open platform where consumers can personalize their experience. Technology maturity, what to do, how long it will take to get digital right. Are the retail company prepared to the customer dialogue? Meaningful experience, the exactly moment where the digital adds to the physical experience. Finding the right moment on the customer journey. Second screen cross experiences. It’s time to start considering how retail will ride the next wave of shoppable TV. Services that help customer to understand your brand and help retailers to understand them. Be involved with customers daily life. Be part or give the room to the communities where they are. Trend intro Facts about the trend Challenges Opportunities Beyond sales / infotainment Trend 3
  • 22. TREND4 Millennial consumers Millennial consumers are increasingly concerned about the brand ethics. They care about how things are made and where they come from. Technologically-savvy. Online experience integrated into in-store experience. They inform their choices. They read up and compare. Tight budgets, cultured and up-to-date.
  • 23. Millennials have distinct relationships with each of their devices. The amount of time is less interesting than the role of each device itself. Their laptops act as a retail portal and catalog, their toolbox, information curator and also their preferred device for viewing TV shows. Their tablets acts as a luxury that falls somewhere in between a downsized entertainment center. Their smartphones makes them feel like they are on steroids, have a fifth limb and act as a fail-safe antidote to FOMO (fear of missing out). 92.3% used a mobile phone in 2012, among whom 63.2% used the mobile web and slightly fewer used smartphones. (emarketer.com) Over half of twitter users are millennials (16.6m in 2012). Millennials can not be defined by a single device. Seamless multi-channel experience. Insatiable need to be connected and continually validated for their level of “insider” status, millennials are their own medium. Addressing clearly your ethics can help millennials make the choice towards your products. Multichannel experiences to complement in-store experiences. Hand over’s are crucial. Trend intro Facts about the trend Challenges Opportunities Millennial consumers Trend 4
  • 25. TREND5 Brand stories Brands tell their stories. They are storytelling about their heritage and their brand. They are opening the curtains to give insights to the way they manufacture and the materials they use. The brand story becomes part of the shopping experience.
  • 26. Find a heritage moment Behind the scenes  / Backstage. People wants to see how things are done, how they were created. Try to remind people moments and things that they forgot about. Find the story. Controls the whole design process. People journey, one day in his/ her life. The everyday story. Companies like Shinola, Dior and Mr Porter are telling their brand stories, about their heritage and their mission. Content creation around how things are produced. (e.g. Dior, Mr Porter)     Previous experiences with the brand and product. People are more and more concerned with ethics. Telling their brand stories may need to answer to some of those issues. Believable transparency. Drafting a brand story can enhance the customer engagement. Storytelling approach can help customers identify with brand. Content production around the brand story can enrich the products and shopping experience. Co-create brand story with customers and build up for future. Trend intro Facts about the trend Challenges Opportunities Brand stories Trend 5
  • 28. TREND6 Consumers become Creators Customers are becoming the designers.   They will sell customized products to their friends and community. Consumers will care more about what they can do or create.
  • 29. Customers are becoming the designers and the best design will be perceived as the one which will give the customer the power of creation.   Consumers will not only buy from you but also sell the customized products to their friends and community. Consumers will care less about what they have or buy and more about what they can do or create.. •  85% of the 2014 Best Global Brands have used crowdsourcing in the last 10 years. (eYeka) •  The Best Global Brands are three times more likely to use crowdsourcing platforms than websites and social media for their crowdsourcing efforts. (eYeka) •  There is a strong commercial case for personalization - those who are doing it report 14% uplift in sales. (e-consultancy)     Privacy is a big thing when you create customers profile. Retailers need to treat it very seriously. Creepiness – avoid services that jus add extra work to customer, but rather gives an amazing and seamless experience. Find the right blend between customer creation and professional expertise. Always needs to be part of the brand strategy. New ways and channels to communicate with customers. Know from customers what they want and how much they are involved with your brand. Ideas about new services and also how to get the old ones improved. Create a controlled environment in which creation happens (ikeahackers, Bugatti, etc.) Trend intro Facts about the trend Challenges Opportunities Consumers become Creators Trend 6
  • 31. TREND7 Going beyond the screen Technology enables extra dimensions to consumer choices. Emotional conversion. Sense presence more than screen presence. Collecting meaningful data that can be transformed in to seamless actions.
  • 32. Technology is the enabler to people choices. Tech is part of a bigger and holistic experience. Technology can bring emotional elements that involve customers. Sense presence more than screen presence. Technology should bring customers relevant content that help them to make decisions. Technology enables the collection of meaningful data that can be transformed in personalized and seamless actions 90% of respondents who recalled reading online reviews claimed that positive online reviews influenced buying decisions, while 86% said buying decisions were influenced by negative online reviews. (Dimensional Research)   When companies engage and respond to customer service requests over social media, those customers end up spending 20% to 40% more money with the company. (Bain & Company)   92% of organizations that view customer experience as a differentiator offer multiple contact channels (Deloitte) Seamless digital experience Support / not a broken computer in the store. No integrated experience. Customer sees something online that they can’t find in-store. There is a screen, but nobody interacts with it or notices its presence. Indoor location, hyper location services, more effective loyalty programs, product info (i.e. QR and RFID code), virtual reality, wall projections. Trend intro Facts about the trend Challenges Opportunities Going beyond the screen Trend 7
  • 34. TREND8 The touch point immersion Extension of the customer journey.   Exploration of products in-store.   Planned purchases and get Social proof. Customers seek a seamless shopping experience.
  • 35. The customer journey doesn’t start or stop in the store experience.   Customers can anticipate their buying process via smart lists, online stores, etc.   They can explore products in- store, search for better prices, find location of products, look for more information about the product, etc.    Omni-channel provides consumers with a seamless shopping experience across multiple platforms, including online and in-store. A customer’s journey—from first hearing about a product to purchasing it—involves a vast and growing array of encounters with a product or brand. Consumers “touch” a brand an average of 56 times between inspiration and transaction. (Ed Thompson, Gartner, at the Gartner Symposium ITxpo in Cannes, 200). Number of touchpoints is growing due to digital touchpoints such as blogs, videos, reviews, etc. The development of new and engaging touchpoint opportunities is being accelerated by technologies such as augmented reality (AR), Near Field Communication (NFC), IPTV, and “SixthSense” technology Finding the right moment to go digital. Controlling organic and viral social reviews.   “Conducting the orchestra” in a way that all elements work well together, unleashing their full potential. Living experiences, based on customer choices. Everything is a flux, nothing is static. Technology can bridge the challenges with the opportunities in the extended customer journey. Trend intro Facts about the trend Challenges Opportunities The touch point immersion Trend8
  • 37. TREND9 Shared experiences (families, friends, etc.) Parents and children go shopping together. Friends go shopping together. Friends are taking a sales role with online shopping. Digital can be more than sharing and recommending.
  • 38. Retailers should rethink the whole shopping experience by adding also a shared experience and kinds of dialogue a family members or friends could have with each other when going through a buying customer journey. A shared experience will add very important elements as such how to entertain children or how to create a shared buying list with your friend, among other interesting customer needs. The experience is more intense when shared with another person. •  Usually the shopping experience is not a solitary experience. •  Market is lacking family services. Companies usually look to the individual customer journey and other members are considered stakeholders. Sometimes they are not even part of the shopping experience. Creation of services that fulfill shared customer experiences. Trend intro Facts about the trend Challenges Opportunities Shared experiences (families, friends, etc.) Trend 9
  • 40. TREND10 Brand interaction Brands allow the customer to interact with them. The way the interaction takes place and is perceived becomes a feature of the brand identity itself. Retailers make use of the digital interactions to add value to brand communication and to get customer involved with their products and services.
  • 41. Brands provide the framework which customers can freely interact. The way the interaction takes place and is perceived becomes a feature of the brand identity itself. Retailers make use of the digital interactions to add value to brand communication and to get customer involved with their products and services. Differentiation and recognition by the use of new or unusual interaction modes communicating the brand identity. Interaction branding as a new emerging field in design. Big brands such as Google, Coca- Cola are already doing it. Interaction shouldn’t only be entertaining and diverting but should be a well planned and strategically implemented long-term solution. Coherence across various channels. Rational, habitual and emotional binding of the customer to a brand. Trend intro Facts about the trend Challenges Opportunities Brand interaction Trend 10
  • 42. 4. //Quick view on CONSUMERS
  • 43. Born 1946 - 1964 Baby boomers
  • 44. Born 1946 - 1964 Baby boomers •  Many introduced a digital element into their shopping process •  Pre-purchase research online  •  Most likely to buy products that align with their values and ethics •  Involved with some form of health and wellness  •  The occasion, not life-style (habit, celebration, convenience) •  Willing to try new things
  • 45. Born 1965 - 1978 Generation X
  • 46. Born 1965 - 1978 Generation X •  They seek product information / Research online •  Review and rate products online •  They still respond quite well to other traditional ad-channels •  Loyal to brands that serve them well •  They appreciate a diverse range of styles
  • 47. Born 1979 - 1999 Millennial
  • 48. Born 1979 - 1999 Millennial •  Adapt rather quickly to social changes •  Informed shoppers who stick to tight budgets while still managing to stay up-to- date and cultured •  Strive for goods that express their individuality •  They want to integrate online with in-store experience •  They are the most technologically savvy generation •  Social media platforms and applications are incorporated into their lifestyle and define them digitally
  • 49. Born from 2000 onwards Generation I, Me, One
  • 50. Born from 2000 onwards Generation I, Me, One •  Reflects the burst of technology within the last decade •  Instant connection and constant isolation •  Generation I will drive themselves •  Enjoying the process the process of getting better
  • 51. 5. //Physical and Mental EXPERIENCE JOURNEY
  • 52. Physically Before the visit > in-store > Immediate post-visit activities > Later activities
  • 53. Mentally Awareness > Expectation > Inception > Introduction > Evaluation > Engagement > Motivation > Conversion > Fulfillment > Transition > Advocation 
  • 55. Retail Segments •  Furniture & Home Furnishings Stores •  Building Material & Garden Equipment & Supplies Dealers •  Food & Beverage Stores •  Health & Personal Care Stores •  Clothing & Clothing Accessories Stores •  Recreation & Leisure Activities Stores •  General Merchandise Stores •  Electronics & Appliance Stores •  Specialty Retail Stores •  Motor Vehicles & Parts Dealers •  Non-Store Retailers / kiosks and Online Stores
  • 56. 7. //AVAILABLE TECH & TECH TO WATCH
  • 57. Ready tech & to watch •  Indoor navigation, location •  Beacons / hyper local solutions •  Kinect / body motion scanners •  Interactive tables & displays •  Mobile payment •  Automated stores (smart stores) •  NFC / RFID •  QR Codes •  Virtual Reality •  Projections 3D •  Apple payment / iwatch •  Smart watches
  • 58. 8. //WRAP UP & CONCLUSION
  • 59. Go mobile Retailers should explore mobile capabilities such as payments and sharing experiences in greater detail.
  • 60. Go wearables Wearables will make it possible for retailers to collect data such as location, personal information, social network, previous experiences and more.
  • 61. The Creators Customers are becoming creators and the best design is one that allows for customer creation.  
  • 62. Add the second screen All these companies are bringing new advertising models and customer experiences to television. Be aware!
  • 63. Enrichment of the customer journey Buying becomes a natural, integral and shoppable part of the story experience and the moment of purchase.  
  • 65. LEANSERVICECREATION IMAGES The White Company The Walt Disney Company Nike Mr. Porter Wikipedia Google Ibeacons Loblaw Sources RETAIL NEWS emarketer.com Econsultancy.com Fast Company TRENDS Trend Watching The Futures Laboratory Eyeka Hubspot Trendone
  • 66. JANE VITA Senior Service Creator jane.vita@futurice.com @janevita MARIA KULSE Senior Service Designer maria.kulse@futurice.com @mkulse

Editor's Notes

  1. Practicalities. Tickets sold out quickly, follow the live stream at xxx Hope you all found a seat, you can see and hear me. Toilets behind the kitchen (where you can get the most awesome coffee!) if any questions, my colleague Aino Hanttu can help.
  2. Brief introduction about Futurice for the people who may not know us. Founded in 2000 we now have a bit over 200 employees from 18 countries across various offices in Europe. Offices currently in Helsinki, Tampere, London, Berlin and Lausanne with more to come. So stay tuned. Why we are here: simply put we are creating digital services for people to love.