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From Clicks to Bricks 
Driving footfall in-store through 
digital innovation
In-Store is Sti ll the Primary 
Revenue Earner 
Consumers globally have rapidly 
adopted digital retail channels. 
Online retail sales in the US are 
expected to reach $370 billion in 
2017, up from $231 billion in 2012. 
However, this does not ring a death 
knell for brick-and-mortar retail 
stores. Despite the rapid double-digit 
growth rate of e-business, 
online channels are expected to 
contribute to only around 10% of 
all US retail sales by 20171 . The 
physical store sti ll remains the 
primary point of sale for a large 
proporti on of consumers. 
Figure 1: Percentage of Consumers Preferring In-store vs. Online Experience 
13% 
16% 
Establishing relationship 
with merchant 
Getting answers 
for questions 
Source: Wanderful Media Research, December 2012 
2 
During 2011, US store 
sales conversion rates 
were 14 times higher 
than their e-business 
counterparts. 
Online channels are 
expected to contribute 
to only around 10% of 
all US retail sales by 
2017. 
40% 
In-store Online 
50% 
12% 
51% 
Better 
customer service 
Majority of Consumers 
Prefer to Shop In-Store 
A US survey shows that consumers 
prefer the in-store experience for 
a variety of reasons (see Figure 
1)2. Physical stores help consumers 
establish a relati onship with the 
merchant, get immediate answers 
to questi ons and get access to 
bett er service. From a retailer 
perspecti ve, this highlights the 
areas where they need to conti nue 
innovati ng in order to stay relevant 
to the digital consumer. 
In-Store Sales 
Conversions are Higher 
Compared to Online 
Another key factor that makes 
physical stores indispensable 
to retailers is the higher sales 
conversion rates that they achieve. 
A study indicates that during 
2011, US store sales conversion 
rates were 14 ti mes higher than 
their e-business counterparts3. 
Driving more traffi c in-store has an 
immediate impact on accelerati ng 
sales. 
Digital technologies can help 
retailers match consumer interest 
in online channels with the higher 
sales conversion benefi ts of 
physical stores. 
In the next secti on, we discuss 
which digital services have the 
potenti al to drive in-store traffi c 
and increase revenues.
Digital Tools Drive 
Additi onal In-Store Revenues 
Digital technologies have 
pervaded all segments of the 
consumer purchase cycle. They 
allow customers to make purchase 
decisions, locate retail stores or 
avail discounts. We identi fi ed 
a set of 13 such digital services 
that consumers can use across 
the purchase cycle. All of these 
services are relevant at diff erent 
points of the purchase cycle – 
from customer communicati on to 
aft er-sales customer relati onships 
(see Figure 2). 
Interesti ngly, retailers are already 
using some of these digital 
services and seeing positi ve 
results. For instance, in mid- 
2011, Seatt le-based fashion 
and beauty retailer Nordstrom 
rolled out 6,000 mobile payment 
devices across 117 of its stores. 
These devices enable employees 
to check-out consumers from 
anywhere in the store while the 
app on the device also allows 
associates access into the 
company’s inventory. This resulted 
in an increase in the average 
selling price and the number of 
items sold in 2011 as compared 
to 2010. The use of mobile 
devices had an impact on the 
total retail sales for Nordstorm, 
which jumped by 15.3% in the fi rst 
quarter of 2012 as compared to 
the same period in the previous 
year4. 
These 13 services independently 
have the ability to drive both 
traffi c and revenues for a retailer. 
However, our experience in the 
retail sector indicates highest 
interest levels for Appointment 
3 
Figure 2: Digital Shopper Services and the Consumer Purchase Cycle 
In a survey conducted 
with more than 1,000 
North American 
shoppers, 48% 
indicated that helpful 
store associates 
motivated them to 
spend more in-store. 
Booking and Online Shopping 
List services. Both these services 
have high up-selling potenti al and 
provide strong diff erenti ati on in 
terms of customer experience 
against competi tors. In additi on, 
Communication Sales promotion Sales Customer 
Customer 
expectations 
To prepare 
the purchase 
Shopping list apps M-payment Multichannel 
Store Locator Appointment 
Source: Capgemini Consulti ng Analysis 
relationship 
Digital shopper services 
meeting these expectations 
To find 
information 
about a retailer 
easily 
To be advised 
and 
reassured in 
their choices 
To benefit 
from 
discounts 
booking 
Virtual 
product trials 
Service 
comparison tool 
e-/m-coupons 
Online personal 
shopping / 
“coaching” 
loyalty 
programmes 
Retargeting 
Click & Reserve 
Store 
happenings 
Product Locator 
To facilitate 
the 
transaction 
To be 
supported 
after their 
purchase
the availability of mature 
technologies for both these 
services facilitate technical 
deployment and easier service 
adopti on with several months’ 
lead ti me. We believe these 
two services should form the 
initi al focus for any retailer 
that is looking towards digital 
technologies as a means of 
driving physical in-store traffi c. 
Appointment Booking 
Service Drives Up-sell 
The Appointment Booking service 
revolves around the concept 
Appointment Booking Service: Home Depot In-Store Appointment Maker 
Home Depot, in an eff ort to provide a consultati ve 
dimension to its self-service/DIY products, has 
implemented an in-store appointment maker 
applicati on. The app is very detailed, allowing 
customers to identi fy their niche requirements 
based on specifi c types of products, via an online 
form. Users can also select stores anywhere 
between 5-100 miles from where they live. The 
app also provides an opti on to make that store the 
‘default’ choice so that the next ti me the customer 
has to access the app, it avoids duplicati on of 
eff orts in fi lling out all the details once again. The 
user subsequently schedules the appointment by 
selecti ng a convenient date and ti me. 
Source: Home Depot website 
4 
of in-store sales advisors who 
assist shoppers and recommend 
relevant products in line with 
their requirements. This, in turn, 
can encourage customers to 
increase their spend. In fact, in a 
survey conducted with more than 
1,000 North American shoppers, 
48% indicated that helpful store 
associates moti vated them to 
spend more in-store5. 
The Appointment Booking service 
provides a diff erenti ated off ering 
compared to pure online players 
due to the presence of dedicated 
sales advisors. The service also 
increases the consumer’s average 
shopping basket size due to 
up-selling of complementary 
products. It also records consumer 
data prior to scheduling, which 
can be used for follow-ups in the 
case of no shows or no purchase. 
Several retailers have started 
implementi ng Appointment 
Booking services. Home Depot 
is one such retailer that has 
already implemented an in-store 
appointment maker; the service 
allows customers to schedule 
appointments through the website 
(see insert)6. 
In-StoreAppointmentMaker 
Schedule your initial in-store appointment with a Home Depot specialist. 
To schedule an appointment with a particular associate or to schedule a follow-up appointment, please contact the store directly. 
1. Select Product & Store 
Product: 
Select a Product 
Store: Select a Store 
2. Select Date & Time 
3. Enter Contact Information
Online Shopping List 
Service Catches the 
Customer Early in the 
Purchase Cycle 
The Online Shopping List service 
allows consumers to create lists, 
plan their purchases in advance 
and get relevant informati on 
on selected products, such as 
availability and off ers. Once 
the customer is in-store, the 
applicati on also informs about 
useful relevant products previously 
not considered, thereby increasing 
the store’s up-sell potenti al. 
Online shopping list services help 
secure brand loyalty by narrowing 
down the customer interacti on 
to one parti cular channel. It 
increases the average shopping 
basket by recommending relevant 
products according to consumers’ 
shopping requirements. Tesco is 
one such retailer that has already 
implemented an online shopping 
list service called Tesco Finder 
that enables customers to create 
and share lists online, and add 
products to the list in real-ti me 
while at the store (see insert)7. 
Online Shopping List: Tesco Finder 
Tesco, in its eff ort for providing customers with a 
diff erenti ated experience, has introduced several 
digital services. One of these services is a Digital 
Shopping List; this service is loaded with many 
features allowing users to easily identi fy their needs 
and go about fulfi lling them with ease. 
The Digital Shopping List service, named Tesco 
Finder, in additi on to fi nding the nearest Tesco 
store, also allows consumers to build a shopping 
list by browsing through various product categories 
and departments, share the list with friends and 
add products to the list while they are in the store. 
The service displays special off ers on products, store 
ti mings, product availability in the selected store 
and product details. Consumers can use the mobile 
version of the service to locate products within the 
store and add them to the list by simply scanning 
the barcode. 
A few of the other features, such as voice-enabled product search and in-store navigati on, let consumers 
save ti me in fi lling up the list or picking up products from the store. The in-store navigati on feature creates 
the shortest route within the store based on products in the consumer’s shopping list. 
Tesco realizes the importance of using digital technology in bringing consumers to the store. This is 
concurred by its CIO Mike McNamara, when he says, “I don’t think we have an online strategy, we have a 
retailing strategy that is increasingly digital. Online is becoming part of the core business”. 
Source: Tesco website 
5 
Groceries 
Groceries Home 
Book a slot 
Favourites 
Shop 
Basket  26.17 
Orders 
Checkout 
Book details 
Shopping list Add item 
Milk 
Rice akes 
+ 
 
Favourites 
Basket 
Orders 
2 pending orders 
Tesco direct 
 
Great oer on International tour 
FREE Click  Collect from over 750 scores 
Technology  Gaming 
Home Electrical 
Home Furniture 
DIY  Car 
Garden 
+ 
+ 
+ 
+ 
+ 
Toys +
Services such as Appointment 
Booking and Online Shopping List 
give retailers the ability to drive 
additi onal revenues from the 
incremental traffi c that they can 
drive inside stores. We call such 
enabler services “Click2Stores”. 
The Benefi ts Case for 
“Click2Stores” Services 
Appointment Booking and Online 
Shopping List services generate 
substanti al fi nancial benefi ts for 
retailers. However, these benefi ts 
would also largely depend on 
6 
the product categories sold by 
retailers. 
Our analysis reveals that an 
Appointment Booking service has 
the potenti al to generate up to 
2.2% of additi onal revenues per 
year (see Figure 3). If a retailer 
selling consumer electronics, such 
as Best Buy, were to implement 
an Appointment Booking service 
it would have the potenti al 
to generate additi onal annual 
revenues up to $800 million based 
on its current operati ng metrics. 
Figure 3: Additional Revenue Generating Potential of Appointment Booking Service 
For each family of high value products, one customer 
per week intended to buy the product but didn’t 
because of the absence of a shop assistant. 
Source: Capgemini Consulti ng Analysis 
Results 
Benefits 
Reduced loss of earning 
due to in-store 
assistance 
Upselling due to an 
appointment 
Cut in acquisition 
costs of qualified 
contacts 
Model 
60% of the sales on an appointment generate 
20% of upselling 
The number of customers completing the online 
questionnaire is twice the number 
of appointments made 
Sportswear 
Average Basket Value $ 60 
Hypotheses 
Number of stores 3350 
Number of families of high value products 6 
Number of appointments per week per store 30 
Percentage of customers on appointment, buying with flexible budget 50% 
Part of overbooking on appointment 50% 
Value of a qualified contact $ 3 
$ 65 M 
$ 30 M 
$ 30 M 
$ 125 M 
2.2% of sales 
DIY 
$ 80 
2248 
14 
$ 3 
$ 130 M 
$ 28 M 
$ 21 M 
$ 180 M 
0.25% of sales 
Consumer 
Electronics 
$ 200 
4379 
13 
$ 4 
$ 590 M 
$ 135 M 
$ 55 M 
$ 780 M 
1.6% of sales 
Online Shopping List 
service can generate 
between $1 billion and 
$1.5 billion additional 
revenues for large 
grocery retailers.
7 
For DIY and grocery retailers, the 
Appointment Booking service 
could generate between 0.25% 
and 0.1% of additi onal annual 
revenue, respecti vely. 
Similarly, our analysis reveals that 
the Online Shopping List service 
has the potenti al to generate up 
to 0.3% of additi onal revenues 
each year (see Figure 4). For 
instance, grocery retailers such as 
Wal-Mart could expect potenti al 
additi onal revenues of around 
$1 billion to $1.5 billion each 
year by implementi ng an Online 
Shopping List service. DIY retailers 
could generate additi onal annual 
revenues of around 0.05%. 
The success of both these services 
depends on the product category 
for which they are being uti lized. 
For instance, Appointment 
Booking service is most benefi cial 
in the case of retailers selling 
products with high average 
basket value, as is the case with 
categories such as consumer 
electronics. On the other hand, 
an Online Shopping List service 
generates maximum benefi t for 
retailers with higher number of 
products per basket and higher 
Figure 4: Revenue Generating Potential of Online Shopping List Service 
Increase of the average basket 
(1 to 2 additional products in the basket per transaction) 
Increase of the purchase frequency 
(2 additional transactions per year per household) 
Source: Capgemini Consulti ng Analysis 
Results 
Benefits 
*Data estimated based on calculation 
Food 
superstore 
leader 
Non-food 
superstore 
Average basket 
Hypotheses 
Number of products in an average basket 
$ 50 B 
850 M* 
1% 
Average number of products forgotten per transaction 
Revenue per year 
Number of transactions per year 
Percentage of customers adopting the service 
Average number of transactions per year per household 
Additional number of transactions per year per household 
$ 33.4 
25* 
2 
$ 870 M 
$ 430 M 
$ 1300 M 
0.3% of sales 
$ 59 
4* 
1 
$ 447 B 
13000 M * 
2.5% 
50 
2 
$ 125 M 
$ 125 M 
0.3% of sales 
frequency of purchases, as is the 
case with grocery retailers, for 
example. 
To fi nd out the adopti on and 
maturity levels of these services 
we conducted an analysis of 
the top 30 global retailers. The 
objecti ve was to identi fy maturity 
levels of these services across 
regions and channels.
8 
Benefits Case Methodology 
We assessed the additi onal revenue generati ng potenti al of both the Appointment Booking and Online Shopping List services. We 
considered global leaders for each of the categories considered as part of our benefi ts case analysis. 
Appointment Booking 
We assessed the Appointment Booking service across three product categories: Consumer Electronics, Sportswear and Do-It- 
Yourself. The benefi ts case was based on the following criteria: 
 Average basket value 
 Number of stores 
 Number of families of high value products 
 Number of appointments per week per store (1 appointment every 20 minutes on Saturday for 1 FTE salesperson) 
 Segment of customers on appointment, purchasing with a fl exible budget of 20% 
 Part of over-bookings on Appointments 
 Value of a qualifi ed contact 
We calculated the additi onal revenue generated per year based on the following benefi t models: 
 Decreased loss of earning due to availability of in-store assistance: Number of high value product families X Average shopping 
basket comprising these products X Number of stores X Number of weeks per year. 
 Up-selling due to an appointment: Number of appointments per week X Number of stores X Number of weeks per year X 
Average shopping basket comprising these products X Proporti on of the customers (50% purchasing with a fl exible budget of 
20%). 
 Reduced acquisiti on cost of qualifi ed contacts: Number of appointments per week X Number of stores X Number of weeks per 
year X {(1/Overbooking percentage (50%)} X Value of the enriched contact. 
Online Shopping List 
We assessed the Online Shopping List service across two categories: non-food superstore and food superstore. The benefi ts case 
was based on the following criteria: 
 Average Basket 
 Number of products in an average basket 
 Number of products forgott en on an average during cashing (1 for a hypermarket and 2 for a specialized hypermarket) 
 Revenues per year 
 Number of checkouts per year 
 Percentage of customers adopti ng the service ( between 1% in a specialized hypermarket and 2.5% in a hypermarket) 
 Average number of transacti ons per year per household 
 Additi onal number of transacti ons per year per household due to the use of Online Shopping List service (2 additi onal 
transacti ons per year) 
We calculated the additi onal revenue generati ng potenti al based on the following benefi t models: 
 Increase in the Average Basket: Number of products forgott en on an average for each transacti on X (Value of an average 
basket/ Number of products in an average basket) X Number of transacti ons per year X Percentage of customers adopti ng the 
functi onality (1% to 2.5%). 
 Increase in Purchase Frequency: (Number of transacti ons per year/Average number of transacti ons per year per household) X 
Percentage of customers adopti ng the service X Additi onal number of transacti ons per year per household X Average basket.
Retailers Currently Lack a Cohesive 
Approach to “Click2Stores” 
Our research found that most 
retailers are already using both 
Appointment Booking and Online 
Shopping List services. However, 
we found a stark contrast in 
the adopti on levels of both 
the services. Out of the top 30 
retailers in the world 73% use 
Online Shopping List to drive 
in-store traffi c, compared to only 
20% who use the Appointment 
Booking service. The diff erence 
between adopti on levels of 
these services is much more 
apparent when compared 
across geographies. Over 80% of 
retailers in both North America 
and EU provide Online Shopping 
List services to their customers, 
while only 7% of retailers in EU 
and 42% in North America off er 
Appointment Booking services. 
Only 13% of retailers 
allow the shopping lists 
to be shared across 
social media. 
9 
73% of retailers use 
Online Shopping List 
while only 20% use an 
Appointment Booking 
service. 
66% of retailers record 
consumer requirements 
while only 25% share 
personalized offers. 
Very Few Retailers Off er 
Appointment Booking 
Over Mobile 
Appointment Booking services are 
sti ll largely off ered over the Web 
and retailers are yet to realize the 
importance of off ering this service 
over mobile as well. A good 
example of a retailer eff ecti vely 
using both channels is US-based 
retailer Walgreens, which off ers 
this service over the Web and 
mobile along with the opti on 
of rescheduling appointments 
remotely. The possibility of the 
customer being able to access 
the service anyti me, anywhere 
along with the ability to remotely 
reschedule appointments reduces 
dropouts and no shows. Also, a 
coherent approach is criti cal in 
extracti ng the maximum potenti al 
from the Appointment Booking 
service. As per our analysis, 
while 66% of retailers off ering 
this service record consumer 
requirements, only 25% share 
personalized off ers with them, 
indicati ng a lost opportunity for 
increasing in-store sales. 
Retailers Sti ll Do Not 
Off er Criti cal Online 
Shopping List Features 
For Online Shopping List, our 
analysis indicated that most 
retailers are sti ll lacking a cohesive 
multi -channel strategy. Out of 
all the retailers who are off ering 
this service over both mediums, 
Web and mobile, only 26% allow 
the Web service to sync with the 
consumer’s mobile and a mere 
13% allow the shopping lists to be 
shared across social media. For 
instance, only two retailers, Metro 
and Best Buy, allow consumers to 
share their shopping lists on social 
media. We believe that off ering a 
seamless consumer experience for 
the Online Shopping List service 
would increase both its usage and 
in-store sales potenti al.
EU Retailers Off er 
Less Advanced Online 
Shopping List Features 
Furthermore, on analyzing the 
maturity level of features off ered 
for Online Shopping List we 
found an interesti ng contrast 
between North America and EU-based 
Figure 5: Service Maturity Levels Provided by Retailers for Online Shopping List 
Source: Capgemini Consulti ng Analysis 
10 
retailers. The fi gure below 
shows the service maturity level 
achieved, across each category of 
service, for Online Shopping List 
in North America and Europe (see 
Figure 5). 
We found that EU-based retailers 
are doing bett er than North 
America in terms of providing 
‘Basic’ features such as store 
locator and use of coupons. 
Out of 12 retailers from EU, 11 
off er a majority of the ‘Basic’ 
features for Online Shopping List. 
In comparison, only 4 out of 10 
retailers from North America off er 
the same features. On the other 
hand, North American retailers 
off er advanced features compared 
to their EU counterparts – an 
15% 
Basic Services: 
Use of coupons, Store Locator, 
Barcode Scanning and Sharing via 
email/SMS 
Differentiators: 
indicator of service maturity. As 
many as 40% of North American 
retailers off er a wide array of 
innovati ve services such as in-store 
navigati on and voice-enabled 
search. In comparison, Tesco is the 
only retailer in the EU that has a 
portf olio of similar off erings. 
In the next secti on, we look at how 
retailers should go about designing 
and implementi ng such services. 
North America EU 
Synced with Mobile, Sharable on 
Social media, Inventory check and 
Product comparison tools 
Premium Services: 
In-store aisle location/navigation, 
Voice-enabled search and Offers 
based on in-store location 
63% 
73% 
24% 
20% 
11%
11 
Our “Click2Stores” Implementation Research for the Top 30 Global Retailers: 
Methodology: 
The objecti ve of our analysis was to fi rst establish the presence of a “Click2Stores” implementati on, i.e. Appointment Booking 
and Online Shopping List, across the top 30 global retailers. This was followed by analyzing channel maturity, feature-richness and 
geographical spread of these applicati ons. 
Companies Analyzed: 
We considered the top 30 retailers in the world, based on their 2011 annual retail revenues: 
Wal-Mart Stores Inc., Carrefour S.A., Tesco PLC, Metro AG, The Kroger Co., Schwarz Unternehmens Treuhand KG, Costco Wholesale 
Corporati on, The Home Depot, Inc., Walgreen Co., Aldi Einkauf GmbH  Co. oHG, Target Corp., Rewe Group, CVS Caremark Corp., 
Seven  i Holdings Co., Ltd., Groupe Auchan SA, Edeka Zentrale AG  Co. KG, Aeon Co., Ltd., Woolworths Limited, Best Buy Co., Inc., 
Lowe’s Companies, Inc., Wesfarmers Limited, Sears Holdings Corp., Centres Distributeurs E. Leclerc, Safeway Inc., Koninklijke Ahold 
N.V, Casino Guichard-Perrachon S.A., ITM D, J Sainsbury Plc, The IKEA Group and Loblaw Companies Limited. 
Key Parameters: 
 Adopti on levels 
We defi ne adopti on level as the number of retailers that off er each of these services across geographies. 
 Channel Maturity 
We defi ne channel maturity as the number of channels over which a parti cular service was off ered (Web, only mobile or both). 
 Feature-Richness 
Features of both services were segmented into three disti nct areas, namely, ‘Basic’, ‘Diff erenti ator’ and ‘Premium’. For the 
Appointment Booking service, ‘Basic’ features included ability to record consumer details and shopping needs, off ering multi ple 
store selecti on and providing multi ple appointment booking slots. ‘Diff erenti ator’ features included ability to sync with the 
consumer’s primary device, opti on of rescheduling appointments remotely, providing promoti onal and personalized off ers. 
‘Premium’ features included using GPS to provide the nearest store locati on. Similarly, for the Online Shopping List, ‘Basic’ features 
included use of coupons, Store Locator, Barcode Scanning and sharing via email/SMS. ‘Diff erenti ator’ features included syncing 
with mobile, sharing on social media, inventory check and product comparison tools. ‘Premium’ features included in-store aisle 
locati on/navigati on, voice-enabled search and off ers based on in-store locati on. 
Research Findings: 
The analysis fi ndings are strictly based on the number of companies using the “Click2Stores” Services to drive 
in-store traffi c. 
 Overall Findings 
Most retailers are yet to tap into the full potenti al of these two services. European retailers conti nue to focus on ‘Basic’ features 
while North American retailers off er more advanced features. However, retailers have not off ered advanced opti ons that 
contribute to a direct impact on in-store sales, such as pushing personalized off ers based on consumer data or shareability on 
social media sites. None of the retailers in the APAC region have adopted “Click2Stores” services. 
 Category-wise Findings 
1. Appointment Booking Service: 
- It sti ll remains a service which is largely off ered over the Web, with only one retailer (Walgreens) off ering it over mobile. 
- While 66% of the retailers record consumers’ needs, only 25% use this data to share promoti onal personalized off ers to 
consumers. 
2. Online Shopping List: 
- Out of 15 retailers off ering this service on both the mediums, web and mobile, only 6 provide the ability to sync shopping list 
with the consumer’s mobile device. 
- Only 3 retailers enable shopping list shareability across social media. 
 Region-wise Findings 
- Adopti on levels for Online Shopping List are similar across North America and EU. For instance, 83% of North American retailers 
have adopted an Online Shopping List service while 86% of EU-based retailers provide the same service. 
- Only 1 out of every 14 retailers in the EU off ers Appointment Booking service as compared to 5 out of 10 in North America.
Key Success Factors to Consider When 
Implementi ng “Click2Stores” 
Our analysis of leading retailers 
and their implementati on of these 
two services have enabled us 
to arrive at a set of key success 
factors that should be considered 
when designing “Click2Stores” 
type services. 
Create a compelling 
multi -channel 
experience with 
“Click2Stores” Services 
The success of both appointment 
booking and online shopping list 
hinges on being able to provide 
a consistent service delivery 
across multi ple channels. Many 
retailers are yet to tap into criti cal 
features that we believe have the 
potenti al to drive more footf all 
and revenues. For instance, 
acti vity synchronizati on is a 
criti cal feature of both services. 
In the case of appointment 
booking, customers want to sync 
appointments with their mobile 
device. They also want to be able 
to instantly confi rm reservati ons 
on the mobile platf orm. Similarly, 
in the case of online shopping 
list services, customers want the 
ability to sync lists from the Web 
to their smartphones as well as 
pre-populate lists based on past 
purchases. 
Customize 
“Click2Stores” Services 
to Customer Needs 
It is important to bear in mind 
that the appointment booking 
service takes a consultati ve 
approach to selling. As such, it is 
important to segment consumers 
and design the purchase journey, 
once in-store, according to 
their requirements. Unlike the 
appointment booking service that 
is largely driven by in-store sales 
associates, in the case of online 
shopping list services, customers 
want user interacti ons to be kept 
to a bare minimum, once inside 
the store. These subtle diff erences 
should be captured in designing 
eff ecti ve “Click2Stores” services. 
Synchronize 
“Click2Stores” Services 
with your Store 
Soft ware and CRM 
Database 
In both services, geo-localizati on 
and customer profi les should 
determine the choice of store 
locati on off ered as well as 
product promoti ons pushed to 
the consumer. Customers also 
appreciate when retailers provide 
them with real-ti me updates and 
informati on about inventory and 
pricing. This means syncing the 
applicati on data with the store’s 
own soft ware, so that inventory 
and pricing updates are accurate. 
Retailers should focus on providing 
personalized promoti onal off ers 
based on consumer data and 
the provision to share shopping 
lists across social media for 
appointment booking and online 
shopping list services, respecti vely. 
Adopt a Dynamic 
Approach while 
Implementi ng 
“Click2Stores” Services 
Implementi ng the appointment 
booking service has a strong 
organizati onal impact on physical 
retail stores. Before the customer’s 
arrival at the point of sale, it is 
criti cal to defi ne the appointment 
12 
schedule and process to opti mize 
sales advisors’ schedules 
(management of delays, no shows 
and peak ti me). The sales advisors’ 
team has to be structured 
(generalist or product specialist) 
and trained/coached for this new 
acti vity. Moreover, retailers need 
to focus on areas which provide 
the maximum benefi ts and ensure 
an even uptake of appointments 
slots by proacti vely off ering 
service during off -peak hours. 
A dynamic approach along with 
proper communicati on with sales 
advisors is criti cal to make the 
transacti on and up-sell successful. 
While retailers have adopted 
both these services at varying 
degrees of maturity, their eff orts 
come across as fragmented. In 
an age where consumers expect 
a seamless, connected omni-channel 
experience, retailers 
need to have a comprehensive 
and cohesive approach towards 
implementi ng these services. 
Doing so would enable retailers to 
tap into the full range of benefi ts 
off ered by digital services while 
also maximizing channel potenti al.
References 
1 Forrester, “US Online Retail Forecast, 2012 To 2017”, March 2013 
2 Wanderful Media Research, “Technology Blurs the Line of Online vs. In-Store Shopping”, December 2012 
3 Capgemini Consulting analysis 
4 Forbes, “Nordstrom Sees Sales Boost from Mobile POS Devices”, June 2012 
5 Motorola, “Holiday Shopping Study”, December 2012 
6 Home Depot In-Store Appointment Maker website 
7 Tesco website 
Authors 
Eric Sindou 
eric.sindou@capgemini.com 
Olivier Guilhot-gaudeffroy 
olivier.guilhotgaudeffroy@capgemini.com 
Digital Transformation 
Research Institute 
dtri.in@capgemini.com 
Sarah Driay 
sarah.driay@capgemini.com 
Jerome Buvat, Amrita Radhakrishnan and Ashish Bisht from the Digital Transformation Research Institute worked on this 
paper. 
The authors would also like to acknowledge the contributions of Olivier Pacaud.
For more information contact: 
France 
Laurence Jumeaux 
laurence.jumeaux@capgemini.com 
Finland 
Sami Finne 
sami.finne@capgemini.com 
Germany 
Ralph Becker 
ralph.becker@capgemini.com 
Netherlands 
Armijn Beek 
armijn.beek@capgemini.com 
US 
Dan Albright 
dan.albright@capgemini.com 
UK 
Mike Petevinos 
mike.petevinos@capgemini.com 
Capgemini Consulting is the global strategy and transformation 
consulting organization of the Capgemini Group, specializing 
in advising and supporting enterprises in significant 
transformation, from innovative strategy to execution and with 
an unstinting focus on results. With the new digital economy 
creating significant disruptions and opportunities, our global 
team of over 3,600 talented individuals work with leading 
companies and governments to master Digital Transformation, 
drawing on our understanding of the digital economy and 
our leadership in business transformation and organizational 
change. 
Find out more at: 
http://www.capgemini-consulting.com/ 
Rightshore® is a trademark belonging to Capgemini 
Sweden 
Peter Lindell 
peter. lindell@capgemini.com 
About Capgemini 
With around 120,000 people in 40 countries, Capgemini is one 
of the world’s foremost providers of consulting, technology 
and outsourcing services. The Group reported 2011 global 
revenues of EUR 9.7 billion. Together with its clients, Capgemini 
creates and delivers business and technology solutions that 
fit their needs and drive the results they want. A deeply 
multicultural organization, Capgemini has developed its own 
way of working, the Collaborative Business ExperienceTM, and 
draws on Rightshore®, its worldwide delivery model. 
Learn more about us 
at www.capgemini.com. 
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. 
© 2013 Capgemini. All rights reserved.

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From clicks to bricks driving footfall in store through digital innovation - capgemini consulting - digital transformation

  • 1. From Clicks to Bricks Driving footfall in-store through digital innovation
  • 2. In-Store is Sti ll the Primary Revenue Earner Consumers globally have rapidly adopted digital retail channels. Online retail sales in the US are expected to reach $370 billion in 2017, up from $231 billion in 2012. However, this does not ring a death knell for brick-and-mortar retail stores. Despite the rapid double-digit growth rate of e-business, online channels are expected to contribute to only around 10% of all US retail sales by 20171 . The physical store sti ll remains the primary point of sale for a large proporti on of consumers. Figure 1: Percentage of Consumers Preferring In-store vs. Online Experience 13% 16% Establishing relationship with merchant Getting answers for questions Source: Wanderful Media Research, December 2012 2 During 2011, US store sales conversion rates were 14 times higher than their e-business counterparts. Online channels are expected to contribute to only around 10% of all US retail sales by 2017. 40% In-store Online 50% 12% 51% Better customer service Majority of Consumers Prefer to Shop In-Store A US survey shows that consumers prefer the in-store experience for a variety of reasons (see Figure 1)2. Physical stores help consumers establish a relati onship with the merchant, get immediate answers to questi ons and get access to bett er service. From a retailer perspecti ve, this highlights the areas where they need to conti nue innovati ng in order to stay relevant to the digital consumer. In-Store Sales Conversions are Higher Compared to Online Another key factor that makes physical stores indispensable to retailers is the higher sales conversion rates that they achieve. A study indicates that during 2011, US store sales conversion rates were 14 ti mes higher than their e-business counterparts3. Driving more traffi c in-store has an immediate impact on accelerati ng sales. Digital technologies can help retailers match consumer interest in online channels with the higher sales conversion benefi ts of physical stores. In the next secti on, we discuss which digital services have the potenti al to drive in-store traffi c and increase revenues.
  • 3. Digital Tools Drive Additi onal In-Store Revenues Digital technologies have pervaded all segments of the consumer purchase cycle. They allow customers to make purchase decisions, locate retail stores or avail discounts. We identi fi ed a set of 13 such digital services that consumers can use across the purchase cycle. All of these services are relevant at diff erent points of the purchase cycle – from customer communicati on to aft er-sales customer relati onships (see Figure 2). Interesti ngly, retailers are already using some of these digital services and seeing positi ve results. For instance, in mid- 2011, Seatt le-based fashion and beauty retailer Nordstrom rolled out 6,000 mobile payment devices across 117 of its stores. These devices enable employees to check-out consumers from anywhere in the store while the app on the device also allows associates access into the company’s inventory. This resulted in an increase in the average selling price and the number of items sold in 2011 as compared to 2010. The use of mobile devices had an impact on the total retail sales for Nordstorm, which jumped by 15.3% in the fi rst quarter of 2012 as compared to the same period in the previous year4. These 13 services independently have the ability to drive both traffi c and revenues for a retailer. However, our experience in the retail sector indicates highest interest levels for Appointment 3 Figure 2: Digital Shopper Services and the Consumer Purchase Cycle In a survey conducted with more than 1,000 North American shoppers, 48% indicated that helpful store associates motivated them to spend more in-store. Booking and Online Shopping List services. Both these services have high up-selling potenti al and provide strong diff erenti ati on in terms of customer experience against competi tors. In additi on, Communication Sales promotion Sales Customer Customer expectations To prepare the purchase Shopping list apps M-payment Multichannel Store Locator Appointment Source: Capgemini Consulti ng Analysis relationship Digital shopper services meeting these expectations To find information about a retailer easily To be advised and reassured in their choices To benefit from discounts booking Virtual product trials Service comparison tool e-/m-coupons Online personal shopping / “coaching” loyalty programmes Retargeting Click & Reserve Store happenings Product Locator To facilitate the transaction To be supported after their purchase
  • 4. the availability of mature technologies for both these services facilitate technical deployment and easier service adopti on with several months’ lead ti me. We believe these two services should form the initi al focus for any retailer that is looking towards digital technologies as a means of driving physical in-store traffi c. Appointment Booking Service Drives Up-sell The Appointment Booking service revolves around the concept Appointment Booking Service: Home Depot In-Store Appointment Maker Home Depot, in an eff ort to provide a consultati ve dimension to its self-service/DIY products, has implemented an in-store appointment maker applicati on. The app is very detailed, allowing customers to identi fy their niche requirements based on specifi c types of products, via an online form. Users can also select stores anywhere between 5-100 miles from where they live. The app also provides an opti on to make that store the ‘default’ choice so that the next ti me the customer has to access the app, it avoids duplicati on of eff orts in fi lling out all the details once again. The user subsequently schedules the appointment by selecti ng a convenient date and ti me. Source: Home Depot website 4 of in-store sales advisors who assist shoppers and recommend relevant products in line with their requirements. This, in turn, can encourage customers to increase their spend. In fact, in a survey conducted with more than 1,000 North American shoppers, 48% indicated that helpful store associates moti vated them to spend more in-store5. The Appointment Booking service provides a diff erenti ated off ering compared to pure online players due to the presence of dedicated sales advisors. The service also increases the consumer’s average shopping basket size due to up-selling of complementary products. It also records consumer data prior to scheduling, which can be used for follow-ups in the case of no shows or no purchase. Several retailers have started implementi ng Appointment Booking services. Home Depot is one such retailer that has already implemented an in-store appointment maker; the service allows customers to schedule appointments through the website (see insert)6. In-StoreAppointmentMaker Schedule your initial in-store appointment with a Home Depot specialist. To schedule an appointment with a particular associate or to schedule a follow-up appointment, please contact the store directly. 1. Select Product & Store Product: Select a Product Store: Select a Store 2. Select Date & Time 3. Enter Contact Information
  • 5. Online Shopping List Service Catches the Customer Early in the Purchase Cycle The Online Shopping List service allows consumers to create lists, plan their purchases in advance and get relevant informati on on selected products, such as availability and off ers. Once the customer is in-store, the applicati on also informs about useful relevant products previously not considered, thereby increasing the store’s up-sell potenti al. Online shopping list services help secure brand loyalty by narrowing down the customer interacti on to one parti cular channel. It increases the average shopping basket by recommending relevant products according to consumers’ shopping requirements. Tesco is one such retailer that has already implemented an online shopping list service called Tesco Finder that enables customers to create and share lists online, and add products to the list in real-ti me while at the store (see insert)7. Online Shopping List: Tesco Finder Tesco, in its eff ort for providing customers with a diff erenti ated experience, has introduced several digital services. One of these services is a Digital Shopping List; this service is loaded with many features allowing users to easily identi fy their needs and go about fulfi lling them with ease. The Digital Shopping List service, named Tesco Finder, in additi on to fi nding the nearest Tesco store, also allows consumers to build a shopping list by browsing through various product categories and departments, share the list with friends and add products to the list while they are in the store. The service displays special off ers on products, store ti mings, product availability in the selected store and product details. Consumers can use the mobile version of the service to locate products within the store and add them to the list by simply scanning the barcode. A few of the other features, such as voice-enabled product search and in-store navigati on, let consumers save ti me in fi lling up the list or picking up products from the store. The in-store navigati on feature creates the shortest route within the store based on products in the consumer’s shopping list. Tesco realizes the importance of using digital technology in bringing consumers to the store. This is concurred by its CIO Mike McNamara, when he says, “I don’t think we have an online strategy, we have a retailing strategy that is increasingly digital. Online is becoming part of the core business”. Source: Tesco website 5 Groceries Groceries Home Book a slot Favourites Shop Basket 26.17 Orders Checkout Book details Shopping list Add item Milk Rice akes + Favourites Basket Orders 2 pending orders Tesco direct Great oer on International tour FREE Click Collect from over 750 scores Technology Gaming Home Electrical Home Furniture DIY Car Garden + + + + + Toys +
  • 6. Services such as Appointment Booking and Online Shopping List give retailers the ability to drive additi onal revenues from the incremental traffi c that they can drive inside stores. We call such enabler services “Click2Stores”. The Benefi ts Case for “Click2Stores” Services Appointment Booking and Online Shopping List services generate substanti al fi nancial benefi ts for retailers. However, these benefi ts would also largely depend on 6 the product categories sold by retailers. Our analysis reveals that an Appointment Booking service has the potenti al to generate up to 2.2% of additi onal revenues per year (see Figure 3). If a retailer selling consumer electronics, such as Best Buy, were to implement an Appointment Booking service it would have the potenti al to generate additi onal annual revenues up to $800 million based on its current operati ng metrics. Figure 3: Additional Revenue Generating Potential of Appointment Booking Service For each family of high value products, one customer per week intended to buy the product but didn’t because of the absence of a shop assistant. Source: Capgemini Consulti ng Analysis Results Benefits Reduced loss of earning due to in-store assistance Upselling due to an appointment Cut in acquisition costs of qualified contacts Model 60% of the sales on an appointment generate 20% of upselling The number of customers completing the online questionnaire is twice the number of appointments made Sportswear Average Basket Value $ 60 Hypotheses Number of stores 3350 Number of families of high value products 6 Number of appointments per week per store 30 Percentage of customers on appointment, buying with flexible budget 50% Part of overbooking on appointment 50% Value of a qualified contact $ 3 $ 65 M $ 30 M $ 30 M $ 125 M 2.2% of sales DIY $ 80 2248 14 $ 3 $ 130 M $ 28 M $ 21 M $ 180 M 0.25% of sales Consumer Electronics $ 200 4379 13 $ 4 $ 590 M $ 135 M $ 55 M $ 780 M 1.6% of sales Online Shopping List service can generate between $1 billion and $1.5 billion additional revenues for large grocery retailers.
  • 7. 7 For DIY and grocery retailers, the Appointment Booking service could generate between 0.25% and 0.1% of additi onal annual revenue, respecti vely. Similarly, our analysis reveals that the Online Shopping List service has the potenti al to generate up to 0.3% of additi onal revenues each year (see Figure 4). For instance, grocery retailers such as Wal-Mart could expect potenti al additi onal revenues of around $1 billion to $1.5 billion each year by implementi ng an Online Shopping List service. DIY retailers could generate additi onal annual revenues of around 0.05%. The success of both these services depends on the product category for which they are being uti lized. For instance, Appointment Booking service is most benefi cial in the case of retailers selling products with high average basket value, as is the case with categories such as consumer electronics. On the other hand, an Online Shopping List service generates maximum benefi t for retailers with higher number of products per basket and higher Figure 4: Revenue Generating Potential of Online Shopping List Service Increase of the average basket (1 to 2 additional products in the basket per transaction) Increase of the purchase frequency (2 additional transactions per year per household) Source: Capgemini Consulti ng Analysis Results Benefits *Data estimated based on calculation Food superstore leader Non-food superstore Average basket Hypotheses Number of products in an average basket $ 50 B 850 M* 1% Average number of products forgotten per transaction Revenue per year Number of transactions per year Percentage of customers adopting the service Average number of transactions per year per household Additional number of transactions per year per household $ 33.4 25* 2 $ 870 M $ 430 M $ 1300 M 0.3% of sales $ 59 4* 1 $ 447 B 13000 M * 2.5% 50 2 $ 125 M $ 125 M 0.3% of sales frequency of purchases, as is the case with grocery retailers, for example. To fi nd out the adopti on and maturity levels of these services we conducted an analysis of the top 30 global retailers. The objecti ve was to identi fy maturity levels of these services across regions and channels.
  • 8. 8 Benefits Case Methodology We assessed the additi onal revenue generati ng potenti al of both the Appointment Booking and Online Shopping List services. We considered global leaders for each of the categories considered as part of our benefi ts case analysis. Appointment Booking We assessed the Appointment Booking service across three product categories: Consumer Electronics, Sportswear and Do-It- Yourself. The benefi ts case was based on the following criteria:  Average basket value  Number of stores  Number of families of high value products  Number of appointments per week per store (1 appointment every 20 minutes on Saturday for 1 FTE salesperson)  Segment of customers on appointment, purchasing with a fl exible budget of 20%  Part of over-bookings on Appointments  Value of a qualifi ed contact We calculated the additi onal revenue generated per year based on the following benefi t models:  Decreased loss of earning due to availability of in-store assistance: Number of high value product families X Average shopping basket comprising these products X Number of stores X Number of weeks per year.  Up-selling due to an appointment: Number of appointments per week X Number of stores X Number of weeks per year X Average shopping basket comprising these products X Proporti on of the customers (50% purchasing with a fl exible budget of 20%).  Reduced acquisiti on cost of qualifi ed contacts: Number of appointments per week X Number of stores X Number of weeks per year X {(1/Overbooking percentage (50%)} X Value of the enriched contact. Online Shopping List We assessed the Online Shopping List service across two categories: non-food superstore and food superstore. The benefi ts case was based on the following criteria:  Average Basket  Number of products in an average basket  Number of products forgott en on an average during cashing (1 for a hypermarket and 2 for a specialized hypermarket)  Revenues per year  Number of checkouts per year  Percentage of customers adopti ng the service ( between 1% in a specialized hypermarket and 2.5% in a hypermarket)  Average number of transacti ons per year per household  Additi onal number of transacti ons per year per household due to the use of Online Shopping List service (2 additi onal transacti ons per year) We calculated the additi onal revenue generati ng potenti al based on the following benefi t models:  Increase in the Average Basket: Number of products forgott en on an average for each transacti on X (Value of an average basket/ Number of products in an average basket) X Number of transacti ons per year X Percentage of customers adopti ng the functi onality (1% to 2.5%).  Increase in Purchase Frequency: (Number of transacti ons per year/Average number of transacti ons per year per household) X Percentage of customers adopti ng the service X Additi onal number of transacti ons per year per household X Average basket.
  • 9. Retailers Currently Lack a Cohesive Approach to “Click2Stores” Our research found that most retailers are already using both Appointment Booking and Online Shopping List services. However, we found a stark contrast in the adopti on levels of both the services. Out of the top 30 retailers in the world 73% use Online Shopping List to drive in-store traffi c, compared to only 20% who use the Appointment Booking service. The diff erence between adopti on levels of these services is much more apparent when compared across geographies. Over 80% of retailers in both North America and EU provide Online Shopping List services to their customers, while only 7% of retailers in EU and 42% in North America off er Appointment Booking services. Only 13% of retailers allow the shopping lists to be shared across social media. 9 73% of retailers use Online Shopping List while only 20% use an Appointment Booking service. 66% of retailers record consumer requirements while only 25% share personalized offers. Very Few Retailers Off er Appointment Booking Over Mobile Appointment Booking services are sti ll largely off ered over the Web and retailers are yet to realize the importance of off ering this service over mobile as well. A good example of a retailer eff ecti vely using both channels is US-based retailer Walgreens, which off ers this service over the Web and mobile along with the opti on of rescheduling appointments remotely. The possibility of the customer being able to access the service anyti me, anywhere along with the ability to remotely reschedule appointments reduces dropouts and no shows. Also, a coherent approach is criti cal in extracti ng the maximum potenti al from the Appointment Booking service. As per our analysis, while 66% of retailers off ering this service record consumer requirements, only 25% share personalized off ers with them, indicati ng a lost opportunity for increasing in-store sales. Retailers Sti ll Do Not Off er Criti cal Online Shopping List Features For Online Shopping List, our analysis indicated that most retailers are sti ll lacking a cohesive multi -channel strategy. Out of all the retailers who are off ering this service over both mediums, Web and mobile, only 26% allow the Web service to sync with the consumer’s mobile and a mere 13% allow the shopping lists to be shared across social media. For instance, only two retailers, Metro and Best Buy, allow consumers to share their shopping lists on social media. We believe that off ering a seamless consumer experience for the Online Shopping List service would increase both its usage and in-store sales potenti al.
  • 10. EU Retailers Off er Less Advanced Online Shopping List Features Furthermore, on analyzing the maturity level of features off ered for Online Shopping List we found an interesti ng contrast between North America and EU-based Figure 5: Service Maturity Levels Provided by Retailers for Online Shopping List Source: Capgemini Consulti ng Analysis 10 retailers. The fi gure below shows the service maturity level achieved, across each category of service, for Online Shopping List in North America and Europe (see Figure 5). We found that EU-based retailers are doing bett er than North America in terms of providing ‘Basic’ features such as store locator and use of coupons. Out of 12 retailers from EU, 11 off er a majority of the ‘Basic’ features for Online Shopping List. In comparison, only 4 out of 10 retailers from North America off er the same features. On the other hand, North American retailers off er advanced features compared to their EU counterparts – an 15% Basic Services: Use of coupons, Store Locator, Barcode Scanning and Sharing via email/SMS Differentiators: indicator of service maturity. As many as 40% of North American retailers off er a wide array of innovati ve services such as in-store navigati on and voice-enabled search. In comparison, Tesco is the only retailer in the EU that has a portf olio of similar off erings. In the next secti on, we look at how retailers should go about designing and implementi ng such services. North America EU Synced with Mobile, Sharable on Social media, Inventory check and Product comparison tools Premium Services: In-store aisle location/navigation, Voice-enabled search and Offers based on in-store location 63% 73% 24% 20% 11%
  • 11. 11 Our “Click2Stores” Implementation Research for the Top 30 Global Retailers: Methodology: The objecti ve of our analysis was to fi rst establish the presence of a “Click2Stores” implementati on, i.e. Appointment Booking and Online Shopping List, across the top 30 global retailers. This was followed by analyzing channel maturity, feature-richness and geographical spread of these applicati ons. Companies Analyzed: We considered the top 30 retailers in the world, based on their 2011 annual retail revenues: Wal-Mart Stores Inc., Carrefour S.A., Tesco PLC, Metro AG, The Kroger Co., Schwarz Unternehmens Treuhand KG, Costco Wholesale Corporati on, The Home Depot, Inc., Walgreen Co., Aldi Einkauf GmbH Co. oHG, Target Corp., Rewe Group, CVS Caremark Corp., Seven i Holdings Co., Ltd., Groupe Auchan SA, Edeka Zentrale AG Co. KG, Aeon Co., Ltd., Woolworths Limited, Best Buy Co., Inc., Lowe’s Companies, Inc., Wesfarmers Limited, Sears Holdings Corp., Centres Distributeurs E. Leclerc, Safeway Inc., Koninklijke Ahold N.V, Casino Guichard-Perrachon S.A., ITM D, J Sainsbury Plc, The IKEA Group and Loblaw Companies Limited. Key Parameters:  Adopti on levels We defi ne adopti on level as the number of retailers that off er each of these services across geographies.  Channel Maturity We defi ne channel maturity as the number of channels over which a parti cular service was off ered (Web, only mobile or both).  Feature-Richness Features of both services were segmented into three disti nct areas, namely, ‘Basic’, ‘Diff erenti ator’ and ‘Premium’. For the Appointment Booking service, ‘Basic’ features included ability to record consumer details and shopping needs, off ering multi ple store selecti on and providing multi ple appointment booking slots. ‘Diff erenti ator’ features included ability to sync with the consumer’s primary device, opti on of rescheduling appointments remotely, providing promoti onal and personalized off ers. ‘Premium’ features included using GPS to provide the nearest store locati on. Similarly, for the Online Shopping List, ‘Basic’ features included use of coupons, Store Locator, Barcode Scanning and sharing via email/SMS. ‘Diff erenti ator’ features included syncing with mobile, sharing on social media, inventory check and product comparison tools. ‘Premium’ features included in-store aisle locati on/navigati on, voice-enabled search and off ers based on in-store locati on. Research Findings: The analysis fi ndings are strictly based on the number of companies using the “Click2Stores” Services to drive in-store traffi c.  Overall Findings Most retailers are yet to tap into the full potenti al of these two services. European retailers conti nue to focus on ‘Basic’ features while North American retailers off er more advanced features. However, retailers have not off ered advanced opti ons that contribute to a direct impact on in-store sales, such as pushing personalized off ers based on consumer data or shareability on social media sites. None of the retailers in the APAC region have adopted “Click2Stores” services.  Category-wise Findings 1. Appointment Booking Service: - It sti ll remains a service which is largely off ered over the Web, with only one retailer (Walgreens) off ering it over mobile. - While 66% of the retailers record consumers’ needs, only 25% use this data to share promoti onal personalized off ers to consumers. 2. Online Shopping List: - Out of 15 retailers off ering this service on both the mediums, web and mobile, only 6 provide the ability to sync shopping list with the consumer’s mobile device. - Only 3 retailers enable shopping list shareability across social media.  Region-wise Findings - Adopti on levels for Online Shopping List are similar across North America and EU. For instance, 83% of North American retailers have adopted an Online Shopping List service while 86% of EU-based retailers provide the same service. - Only 1 out of every 14 retailers in the EU off ers Appointment Booking service as compared to 5 out of 10 in North America.
  • 12. Key Success Factors to Consider When Implementi ng “Click2Stores” Our analysis of leading retailers and their implementati on of these two services have enabled us to arrive at a set of key success factors that should be considered when designing “Click2Stores” type services. Create a compelling multi -channel experience with “Click2Stores” Services The success of both appointment booking and online shopping list hinges on being able to provide a consistent service delivery across multi ple channels. Many retailers are yet to tap into criti cal features that we believe have the potenti al to drive more footf all and revenues. For instance, acti vity synchronizati on is a criti cal feature of both services. In the case of appointment booking, customers want to sync appointments with their mobile device. They also want to be able to instantly confi rm reservati ons on the mobile platf orm. Similarly, in the case of online shopping list services, customers want the ability to sync lists from the Web to their smartphones as well as pre-populate lists based on past purchases. Customize “Click2Stores” Services to Customer Needs It is important to bear in mind that the appointment booking service takes a consultati ve approach to selling. As such, it is important to segment consumers and design the purchase journey, once in-store, according to their requirements. Unlike the appointment booking service that is largely driven by in-store sales associates, in the case of online shopping list services, customers want user interacti ons to be kept to a bare minimum, once inside the store. These subtle diff erences should be captured in designing eff ecti ve “Click2Stores” services. Synchronize “Click2Stores” Services with your Store Soft ware and CRM Database In both services, geo-localizati on and customer profi les should determine the choice of store locati on off ered as well as product promoti ons pushed to the consumer. Customers also appreciate when retailers provide them with real-ti me updates and informati on about inventory and pricing. This means syncing the applicati on data with the store’s own soft ware, so that inventory and pricing updates are accurate. Retailers should focus on providing personalized promoti onal off ers based on consumer data and the provision to share shopping lists across social media for appointment booking and online shopping list services, respecti vely. Adopt a Dynamic Approach while Implementi ng “Click2Stores” Services Implementi ng the appointment booking service has a strong organizati onal impact on physical retail stores. Before the customer’s arrival at the point of sale, it is criti cal to defi ne the appointment 12 schedule and process to opti mize sales advisors’ schedules (management of delays, no shows and peak ti me). The sales advisors’ team has to be structured (generalist or product specialist) and trained/coached for this new acti vity. Moreover, retailers need to focus on areas which provide the maximum benefi ts and ensure an even uptake of appointments slots by proacti vely off ering service during off -peak hours. A dynamic approach along with proper communicati on with sales advisors is criti cal to make the transacti on and up-sell successful. While retailers have adopted both these services at varying degrees of maturity, their eff orts come across as fragmented. In an age where consumers expect a seamless, connected omni-channel experience, retailers need to have a comprehensive and cohesive approach towards implementi ng these services. Doing so would enable retailers to tap into the full range of benefi ts off ered by digital services while also maximizing channel potenti al.
  • 13. References 1 Forrester, “US Online Retail Forecast, 2012 To 2017”, March 2013 2 Wanderful Media Research, “Technology Blurs the Line of Online vs. In-Store Shopping”, December 2012 3 Capgemini Consulting analysis 4 Forbes, “Nordstrom Sees Sales Boost from Mobile POS Devices”, June 2012 5 Motorola, “Holiday Shopping Study”, December 2012 6 Home Depot In-Store Appointment Maker website 7 Tesco website Authors Eric Sindou eric.sindou@capgemini.com Olivier Guilhot-gaudeffroy olivier.guilhotgaudeffroy@capgemini.com Digital Transformation Research Institute dtri.in@capgemini.com Sarah Driay sarah.driay@capgemini.com Jerome Buvat, Amrita Radhakrishnan and Ashish Bisht from the Digital Transformation Research Institute worked on this paper. The authors would also like to acknowledge the contributions of Olivier Pacaud.
  • 14. For more information contact: France Laurence Jumeaux laurence.jumeaux@capgemini.com Finland Sami Finne sami.finne@capgemini.com Germany Ralph Becker ralph.becker@capgemini.com Netherlands Armijn Beek armijn.beek@capgemini.com US Dan Albright dan.albright@capgemini.com UK Mike Petevinos mike.petevinos@capgemini.com Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change. Find out more at: http://www.capgemini-consulting.com/ Rightshore® is a trademark belonging to Capgemini Sweden Peter Lindell peter. lindell@capgemini.com About Capgemini With around 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com. Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2013 Capgemini. All rights reserved.