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The future of retail - 2011

Jul. 8, 2012•0 likes•3,616 views

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Future of Retail Trends

Mark MitchellFollow

Director of Client Services EMEA at Brightedge

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The future of retail - 2011

Retail: Influencing the final :30
A Scenario You enter a store. You see something you like. You write down the product name and manufacturer. You go home and order it over the Internet. As a result, you didn't have to carry it, you probably got a better price, and you may have avoided sales tax. The store in this scenario is merely a showroom. Have I just described the exception to tomorrow's retail, or the rule? - Nicholas Negroponte, 1998 Wired Magazine
“Retail Darwinism” Information Communication Connections
Retail Truisms Shopping is a social phenomenon, but Niche and personal online and are Boundaries betweenexperiences offline Mobile and other emerging technologies The relationship betweenmoving from Retailers have journey is storeon that customer yet to capitalize and replacing the the giving to everyone” retail are blurringconsumer is changing. The world of “everything rise to more are empowering the customer. consumer is quickly evolving.shopping phenomenon throughout the linear to interactive. model. multi-channel experiences. process.
Agenda 1. Evolution of the Consumer 2. Evolution of Retail 3. Evolution of Technology 4. Evolution of Commerce 5. Evolution of Experience 6. Roadmap
(r)evolution of the consumer
Everything About Consumers Is Changing Time has become more precious Working longer hours More time online Mobile is fundamental
Emergence of the “Recessionistas” Critical eye on purchases Smarter about value Savvy about discovering products
The majority of consumers have forever changed. Three out of four are now “evolved.
The Evolved Consumer 10 consumer behaviors that emerged after the economic downturn value driven cautious control time filling mobiley optimism networked selfishly green sourcing alternative concierge brands the family inspiration economy network
Enabled by Technology Boundaries between mediums is blurred Consumer demanding fluidity
(r)evolution of retail
Do a fromeveryone Put it with come want Retailroofway it a long way Where we technology any on online yourself you has started home From a rudimentary beginning, gaming has evolved at exponential rates and has become more sophisticated, accessible and social 1961 1970s 1980s 1990s Late Early Mid-Late Today 1990s 2000s 2000’s Click on a milestone to learn more
Losing the connection to changed customers Reinvent the connection Reestablish the brand
We live in a seamless world Multi-channel mentality Personalized commerce Unlimited inventory Brands become the experience
Channel Agnostic Reconcile physical and digital experiences Replicate the efficiency of ecommerce Recommendations across platforms
Transactional to Experiential
Shift to Consumer Leading
With a New Definition of Customer Service Smarter, more personalized, more informed Price transparency Value beyond the sale
New Platforms Where Buyers Become Sellers Enhanced consumer choice Price savings & value recovery Cross border trade New market formation Small businesses are born
Perfect Competition? Not there, but the barriers are breaking down Time and device contingent Create preference through brand building
(r)evolution of technology
Social 53% 90% 44% of consumers online trust of Moms use social media 81% received advice from 12x Number of times more of people on Twitter recommend recommendations from for brand/product friends on product trusted consumer companies and/or people they know recommendations purchase through a social reviews are than products in their Tweets site advertiser messages
Social Easy accessibility of information, news and content has forever changed the way buying decisions are made. News, reviews, & Sharing Real Time Offers Group Buying Viral promotion recos experiences
Mobile 68% 45% 43% 37% 36% Check the price of Find address and store Look at third party or Look for retailer or Smartphone users have hours of a preferred consumer reviews of product coupons made a purchase directly product while in store store from their phone in the to determine a “good product during the last 6 months deal” purchase process
Mobile Phone You can seamlessly move from advertising on the mobile device all the way through to the actual sale itself. Product Information Augmented Comparison Sales & Couponing Drive to Store Reality Shopping
Tablets 147 65% of Fortune 100 49% Are interested in 36% Have made a purchase 5.5x Average conversion rate Million tablets sold globally by 2015 companies are advertising on tablet through their tablet of purchases over other integrating tablets into devices that are either device mobile devices the retail environment video or interactive
Tablets in the Retail Space Customize Real time Concierge Service Entertainment Personal Shopper Product Features Inventory
Near Field Communications 220 59% Of consumers want to 50% 150 Of all NFC phones will be Million NFC chips will be 1 Million NFC enabled Million enabled NFC phones shipped by 2014 use their mobile phone deployed in North shipped in 2011 phones will be sold in to make purchases at America by 2014 France in 2011 point of sale
Near Field Communications Touch to Touch to Pay Touch to Share Touch to Ticket Discover
Digital Out of Home 80% 68% 29% Of shoppers said in-store Of shoppers made an 40% Say they take note or #1 Fastest growing digital Of brands experience increases in sales with messages help their unplanned purchase watch a complete ad advertising medium of POS DOOH placements purchase decisions based on what they saw when exposed in store 2010 on screens
DOOH In high traffic With interactive Enhancing the On premise On the go areas capabilities experiences
Surface Technology 35% 70% BMW dealers 50% Increase in on site 20% Increase in sales for on 35% Increase in service Cheaper for V2 of technology vs. V1 implementing surface conversion rates in premise restaurant efficiency in wireless tech by 2012 finance sector category carrier category
Surface Technology Ordering and On- Customize Drive Foot Provide Browse Products Premise Experiences Traffic Information
(r)evolution of commerce
Pre-View Shopping Tracking & Gift Guides by Heat Mapping Reviews & Hints Insider Access Organizing Location Activity
Digitizing Customer Service Online click to Twitter to better Service as the Value beyond Listening to your chat serve new marketing purchase social graph
Digital Assistants Empower in-store Virtual dressing RFID for Easy Scan and Online consult associates rooms navigation recommend
Building Communities Crowd sourcing Money saving Sharing ideas Extending Corporate social ideas advice through UGC engagement responsibility
(r)evolution of experience
The Shopping Experience
Structuring the In-store Experience • Incent repeat visits • Brands are story tellers • Support discovery • Encourage engagement • Enhance the value chain • Store becomes the stage • Digital drives displays • Implement entertainment experiences
Structuring the Digital Experience • Enable social connectivity • Exploit multiple platforms • Complimentary experiences • Create targeted value • Expand points of discovery • Virtual currency for engagement • Activate eCRM initiatives
Structuring the Delivery Experience • Capture / extend the brand experience • Say thank you • Drive trial • eCRM opportunities • Lifestyle surprises • Green alternatives • Hassle free returns
Structuring the Media Partner Experience • Connectivity • Interfaces • Relationships • Services • Content • Standards
action plan
Breaking down barriers "Great things are not done by impulse, but by a series of small things brought together.“ - Vincent Van Gogh
Tenets of an action plan Understand Structure Execute Refine Scale
Consumer behavior Gather a basic understanding of what the core activities, platforms and usage behaviors are in retail environments Goals and objectives Define the consumer behavior you aim to change and the business Understand problem the technology will fix Store traffic and buying patterns Understand how consumers use the retail space, interact with products, and what the buying patterns are Connectivity and technology Audit the connectivity and technologies available within the retail environment Competitive audit Assess competitors use of technology and product suites and determine the unique selling proposition Investment capital and roll out Understand the financial implication and ongoing investment in maintaining technologies
Location and user Determine messaging strategy and points of contact for products and consumer segments Audit internal resources/partners Structure Assess internal organizational structure and external partner capabilities Cost/benefit analysis Perform SWOT analysis of technology options and determine ROI from implementation Employee training Determine employee training needs and develop collateral Logistics and fulfillment Understand systems and processes to fulfill on consumer demand and avoid potential bottlenecks Growth plan Develop a long term vision for how the experience will evolve
Stay relevant Be cognizant of what is relevant to your brand, consumers and capitalize on your resources Execute Think globally, act locally Dynamics, principles and best practices apply globally, but when implementing tactics, local realities trump global trends Entertain and engage Understand the target’s drivers, passions, addictions and interests and use those as a guide to how you engage Measure interactions Determine how consumers are adopting the technology over time, and what impact it is having on sales Social and PR promotions Create buzz around the launch both internally and externally
Test & learn Champion a ‘beta’ mindset and be willing to learn from your mistakes and adapt to an ever changing marketplace Refine Continuously measure and optimize/enhance Monitoring how consumers engage with your brand will help shape future consumer facing initiatives as well as how your business operates overall Refresh, refresh, refresh Constantly provide fresh content, giving your consumers a reason to return and more insights to draw upon Analyze holistically Analyze impact on the business in combination with other marketing initiatives
Expansion plan Define the timeframe and costs associated with a global roll out Scale Product roadmap Understand the technology lifecycle and vision for growth and evolution Socialize successes Open lines of communication within the organization to create excitement and desire to become part of the program Share Internally Develop sharing platform to share best practices and learnings
Rethinking Retail Summary Apply across channels Connect with the consumer Create experiences Redefine customer service
case examples
Boots Holiday Retail Integration: Greater than the sum of its parts
Debenhams Using QR to support their app • Debenhams launched their fully transactional iPhone app in Oct 2010. Billed by Debenhams as a ‘virtual shop assistant’ the comprehensive app includes a bar code scanner. • QR Codes are also appearing in-store, encouraging customer loyalty and improving the shopping experience. Once scanned the message on the left translates to • “DB::ALERT::Thank you for downloading the Debenhams iPhone app! Enjoy a FREE tea or coffee in this store. Simply show your Debenhams app at the Restaurant or Cafe till in store! [Only valid today for one time use]”
Gap Driving customer reviews and tips In-store QR • Gap used in-store QR codes to directs to product reviews and style direct to customer reviews and tips fashion tips • The bottom image is a direct mail piece linking through to a video interview with a Gap designer and a discount coupon • Both touchpoints offer value to the customer
Oxfam User generated product history
Daimler’s Mercedes-Benz Product customization, financing and ordering
Volkswagen Not only lower value purchases
BMW Expediting customer service and personalization
DKNY Discuss with friends and purchase
The North Face Mobile exploration and brand engagement with Facebook Places
Starbucks Doesn’t just have to be the act of sale
Starbucks Delivering discounts
Ford Delivering engagement at events
Nike Engaging social behaviour at the storefront
Paramount Pictures Delivering unique content and driving foot traffic
Luxury Brands Activating traditional mediums
Toys R Us – Hong Kong Highlighting deals in the store
McDonald’s Product information
Stacked Product information
Cellar Key Delivering better information for more informed choices
Macy’s Advice and behind the scenes content
Things Remembered Tablet enabled customization kiosks
Delta Airlines Tablets for at gate entertainment and food ordering
Iceland Express Rentable in-flight entertainment
4Food iPad’s enable a tech-savvy, social media oriented fast food experience
City Sports Connecting in-store, rewards, and events through tablets
Puma Global in-store crowd source design and building social connections
Metro Group: real,-Future Store Enabling the consumer with mobile checkout
Kraft: iFood Adding value through recipe ideas and shopping aids
Shopsavvy Intelligent in-store buying through better information
Tesco: Mobile shopping on the go Taking advantage of consumer wait time
Murphy USA Location based promotion to drive activation
Zoom Room Streamlining customer service
Puma Global in-store crowd source design and building social connections
SF Art Exchange Comparative selling and consumer engagement
JCPenney Bringing online to the real world
Whole Foods Paperless receipts
SingTel 24/7 Flagship store through touchscreen technology
Luisa Via Roma 3D Virtual Stores
Kraft & Intel Next generation meal planning
Gap Inc Embracing the auction model
7Eleven Encouraging check in for prizes

Editor's Notes

Let’s think less about real estate, staff, footfall and online stores and start thinking about the entire world as a store; one in which we can easily make instant purchases regardless of time and place. Driven by technology, the web, community and the search for ever-richer experiences, the world of shopping is undergoing a sweeping transformation. This deck will explore the forces of change and provide a framework in which we can envision this new future, a future where we can use technology to influence the final :30 of a consumers purchase decision.Beyond evolving the decentralized shopping experience, retailers must begin to contemplate the impact of digital media and the effects it is having on purchase decisions. Connected devices, whether a mobile phone or a web-enabled in-store kiosk, are making what was once a solitary trip to the store a socially connected event. As shoppers go through the process of discovering new products, testing them, and reflecting on their purchases, they are sharing these thoughts with their social networks and influencing perception amongst their peer group. Retailers must embrace and facilitate this sharing of information, and retail outlets need to evolve to create experiences that drive sales both in-store and within online social networks.Meanwhile, the traditional physical store remains as important as ever, providing the environment in which a retailer can provide an unparalleled experience. Through the dynamic use of space, the most successful store owners are pushing the boundaries of storytelling, product testing and education - aspects of evolved services that lead to loyalty and repeat sales.
Quote: You enter a store. You see something you like. You write down the product name and manufacturer. You go home and order it over the Internet. As a result, you didn't have to carry it, you probably got a better price, and you may have avoided sales tax. The store in this scenario is merely a showroom. Have I just described the exception to tomorrow's retail, or the rule?Nicholas Negroponte, 1998 Wired Magazine
The global marketplace is becoming increasingly connected and sophisticated; today, the onus is on the retailer to empower people with information, communication, and connections. Retailers who have embraced change— leveraging the power of new technologies and media spaces, while putting the customer’s needs, wants, and desires at the center of the experience— have flourished. But those stuck in the past have perished.The profound changes occurring in the retail category are rooted in consumers’ changing expectations across nearly every aspect of their life. It’s an ‘on-demand’ world: consumers want to watch content when they want to; receive information where they want to; and, when they find reason or inspiration, create their own content. Additionally, consumers no longer want to be talked to as part of a mass audience; rather, they are beginning to selectively gravitate toward brands that engage them in direct, personal, and 1-on-1 conversations.Acknowledging these changes is critical. In the current marketplace, “Retail Darwinism” is separating the fittest from the failures. To get ahead of the game, survive, and flourish, retailers must re-evaluate themselves sooner rather than later. Part of it starts with looking at technologies that may seem like luxuries today, but will become core competencies in the future.The following pages highlight some of these critical aspects of retail’s future, and serve as a guide for creating experiences that better connect with an ever evolving consumer.
Before we get into the specific technologies, we must first understand and agree on some “retail truisms” that exist in the marketplace today.The consumer is changing, but stores have yet to embrace the same level of change. To survive, retailers will need to establish a clear position in the new landscape.Online is embracing a more experiential focus to better replicate the touch-and-feel benefits of brick-and-mortar stores. Offline is embracing a more technology-driven experience to replicate the efficiency and personalization of e-commerce.The store of the future will evolve from merchant to educator and partner— giving consumers the control they demand, inspiring them with the ideas they crave and helping them find the personal style they desire.Customers can now enjoy instant access to “the store” anytime, anywhere. The concept of the store is evolving from a physical destination to an experience distributed across multiple touchpoints.The change is reflected in the way retailers communicate with their audiences, as well as how they’re engaging them in product, service, and ideas. Personalization is key to this trend today, but the future revolves around creating micro-experiences within a larger brand experience.The evolved retailer will enable new ways to shop with someone, and in the process expand the possibilities of who that “someone” could be (friend, sales associate, community group, expert reviewer, etc.).The success of future retail will rely on understanding this change, enabling conversational retail experiences and aligning the entire value chain around a deeper understanding of individual customer needs and demands. This is a significant departure from pushing product, and a move towards harnessing consumer “pull” to drive business success.
We will explore this future from the perspective of brands, shoppers, retailers, and communities, highlighting how technology and our senses play a role in the retail experience both in and out of the store.
People, now more than ever, are turning a critical eye to everything that goes in their shopping bag. She’s now asking, “Do I really need this? Do I even really want it?” Her needs push her to think low-end, but her wants still cause her to look high-end. The Recessionista has emerged from the economic downturn smarter about value, savvier about finding products that fits her budget, and with a definite sense of what she wants. Even as the economy continues to improve, her new personal priorities will define the way she shops for years to come.To succeed down the road, retailers need to begin establishing their place in the evolved consumer’s life today.
That is the key takeaway… these changes in consumer behavior are not temporary, nor are they a niche phenomenon. In fact, 3 out of 4 consumers we spoke to said that their behavior has shifted permanently with digital playing a very central role in enabling that behavior.This is a critical grounding point as it confirms that digital platforms must be an integral part of our engagement strategies moving forward. But these digital platforms are not just limited to the desktop web. Behavior has evolved across multiple device types and communications channels.
We have seen this play out loud and clear in “11 for 2011”, a global research study conducted by OMG in late 2010 – and across 19 markets*. The study took a qualitative and quantitative look at how consumer behavior changied as a result of the economic downturn, and what new behaviours have emerged as the economy is rebounding.What’s fascinating is that of the 10 universal consumer behaviors emerged –digital is a common thread across most of them. We can confidently say that digital platforms have become a necessity and an enabler for maximizing entertainment, connections and savings in tough times. For example:Value Driven is less about sensitivity to price only, but more driven by the value of the purchase… “expensive” is a subjective word, if you are delivering high value at a high price point, then its not “expensive” Personal control is about maximizing personal budgets, time and having the tools at your disposal to get the most out of lifeAlternative economy recognizes that more consumers are seeking out price comparisons, deals, bulk buying and coupons via the web. One of the insights that came out of the study is the notion of “Losing Luxury” as a way to save money. Interestingly, internet and mobile subscriptions are no longer considered a luxury, but an absolute necessity. This is evidenced by the fact that practically no one is cancelling these services – while magazine subs and gym memberships are getting cut. * Markets included in the study are: US, Mexico, Argentina, Colombia, UK, France, Spain, Italy, Germany, Russia, Poland, Czech Republic, Romania, China, India, Thailand, Singapore, Hong Kong, and Australia
Because technologies are cemented in the behavior of today’s consumer, we are seeing a generation of consumers that are now enabled by technology, and have a thirst for what these platforms and devices can deliver. One effect this has on the retail world, is the boundaries between online and offline are blurring, making it easier for the consumer to engage with the brand. And, the success of the future retailer will depend on how well they adapt and use the muddled boundaries to their competitive advantage.For example, many e-shops now emulate the layout of a physical store, using familiar naming and organizational metaphors—“aisles, shelves, departments, shopping carts”. But borrowing familiar naming conventions is not enough to meet the expectations of customers who demand greater fluidity between online and offline experiences.
In order to keep up with the needs and demands of today’s consumer, the Retail environment needs to evolve.
Speakers note… very quickly move through this section just to start the story of this section.
For the most part, today’s retailers are not keeping up with the consumer evolution. Retailers haven’t figured out how to cater to their customers’ accelerated and changing needs. They’ve been slow to anticipate change, and haven’t responded fast enough to change as it’s happening. They are therefore losing that valuable brand connection that has been established over decades… but the good news, it is not too late. The bad news, it soon will be too late, and decisive action is imperative to establishing your brand in this new era. Those brands that are keeping pace, are seeing massive gains in market share, while those that lag, are being losing ground in a dramatic fashion.
Over history, the retail environment has evolved, but never as quickly as it is being asked to evolve today. Offline retail is embracing more technology-driven shopping experiences to better replicate the efficiency, autonomy, and boundlessness of the online space.Attempting to merge and reconcile experiences in the physical and digital worlds is no trivial matter. Retailers need to act quickly to control the converging experiences.For instance, Best Buy is working to bring “you might also like” and “complementary items” functionality to its brick-and-mortar stores. The company recently overhauled its entire sales force, redeploying 30% of staff-specific departments to roam the entire floor. These salespeople are supposed to know the whole store, offering advice on what items work together, and identifying cross-sell opportunities.
It’s about putting the consumer at the center of the experience and understanding that they will continuously zigzag their way between the real and virtual worlds. As these boundaries continue to blur, consumer expectations will become increasingly medium-agnosticRather than simply reflecting consistent content and messages across channels, this new multi-channel experience is rooted in context, appropriateness, and fulfillment.The Internet hasn’t destroyed brick-and-mortar retailers, as some once feared, but it’s forever changed consumer expectations and behavior, forcing offline retailers to try and replicate the efficiency and personalization of e-commerce. More and more, consumers expect a multi-channel experience. The days of consumers interacting with a brand through channel silos are gone. Likewise, a consumer’s brand perception is no longer limited to mass communication (ads, graphics, store design). Instead, the consumer interacts with a brand across multiple channels, with the brand itself becoming the customer experience.
Retail will continue its move from the predominantly transactional to the experiential, where brands are experienced as personalities and interaction is playful and personality-driven. In a highly commoditized retail landscape, engaging experiences will become the preferred way to expose consumers to a retailer’s offerings. There will be times when a customer wants a simple transaction and it will be up to the store to support a range of shopping needs. Experience needs to be transparently tailored to the mood the shopper is in, whether it’s a targeted search or a leisurely exploration.Shopping can be about browsing, checking something off the to-do list or making great discoveries along the way. It’s not just about a means to an end, it’s about the unexpected find that leads to a great story. Putting product on a rack and expecting it to sell is not enough; evolving retailers must find ways to encourage exploration and the sense of discovery as means of enhancing the customer’s experience.
Another massive consumer mindset shift is the premise that the retailer will be the consumer’s friend, partner, and ally In the past, control of the shopping relationship was firmly in the hands of the retailer. The retailer, acted as an expert, dictated merchandise selection, cost, and trends to a mass audience. In turn, customers would frequent the store and (hopefully) make a purchase. The retailer led the conversation.Today, and more so in the future, the customer will be the one who leads – providing valuable data and feedback about personal preferences, blogging about shopping triumphs (and defeats) and potentially, influencing merchandise and brand directions. In the future, the power reversal may happen in such full force, that it will be the customer who drives trend and buying decisions – or at least, commands much greater influence over such decisions. The customer will treat the retailer less as an authoritative merchant, and more as a shopping peer; a personal advocate, maven, and ally.
With that new consumer driven direction, there will also be new demands put on the retailers staff. The sales associate will become the conduit to smarter, more informed and more personalized service when a human-to-human experience is called for.Even in a Do It Yourself context, technology will enable the customer to feel like they’re getting service that is more personalized and well-informed.Companies are realizing the long-term benefit of being “real” with customers, providing unexpectedly honest and open information, such as availability and price at competitor stores. When Zappos.com informs you where to find a pair of sold-out shoes, it understands that a sale lost today will help create a lifetime relationship tomorrow.And delivering value beyond the product will be critical. Simple availability of merchandise will not keep the consumer satisfied. Consumers will be looking for value-added services to choose one retailer from the other. Whether it’s free in-store Wi-Fi or a trip-cost calculator online, even small unique and personal experiences can add up to big perception changes.
As broadband penetration increases around the world, e-commerce platforms such as eBay and Craigslist will continue to thrive. Used products will be sold, the new owners will get a good deal and the sellers will recover the value of their initial purchase. They may choose to upgrade – using that money to buy the latest version of an iPhone.There are a number of benefits to eBay-like platforms. Price savings – buyers in the UK, Germany, and France saved an average of 17% on new products by purchasing on eBay vs. in an offline store. Enhanced consumer choice. Product listings come from local, national, and international sellers. Reduced search and transaction costs. These online platforms are efficient for trading goods online, allowing buyers to find products, and compare prices at a low cost, as well as reducing marketing costs for sellers. Cross border trade. Online platforms like eBay facilitate cross-border trading opportunities by providing buys and sellers located in one country with ready access to trading partners located elsewhere (specifically in the EU). Price discovery – prices and availability can be assessed quickly and at a low cost. Formation of new markets – 2nd hand products and collectables for example would otherwise be limited because interested buyers are widely dispersed. For example, there may only be 15 Spiderman collectors in my town, but there are thousands in the world, now all with access to my Spiderman inventory. Here in the visual, a piece of Justin Timberlake’s uneaten French Toast sold for over $3,000 on eBay. Small business creation – hundreds of thousands of people run a business on eBay earning their primary or secondary income through the site.http://ec.europa.eu/competition/sectors/media/ebay_frontier_report.pdf
Infinite buyers and sellers – Infinite consumers with the willingness and ability to buy the product at a certain price, and infinite producers with the willingness and ability to supply the product at a certain price. Zero entry and exit barriers – It is relatively easy for a business to enter or exit in a perfectly competitive market. Perfect factor mobility - In the long run factors of production are perfectly mobile allowing free long term adjustments to changing market conditions. Perfect information - Prices and quality of products are assumed to be known to all consumers and producers.[1]Zero transaction costs - Buyers and sellers incur no costs in making an exchange (perfect mobility).[1]Profit maximization - Firms aim to sell where marginal costs meet marginal revenue, where they generate the most profit. Homogeneous products – The characteristics of any given market good or service do not vary across suppliers. Non-increasing returns to scale - Non-increasing returns to scale ensure that there are sufficient firms in the industry.[2]Source: http://en.wikipedia.org/wiki/Perfect_competition
As consumers are becoming more technically savvy, and technology is permeating every aspect of their lives, retailers need to embrace these technologies and use them to create better experiences that deliver more value, information and streamline the purchase decision process. In this section we will take a look at some of those technologies that exist, and discuss how we can better use them to create brand affinity, increase purchase intent, and drive bottom line sales.Today, consumers can easily communicate and collaborate via the ubiquitous Internet, always on mobile device, and the pervasive web of social media. As a result, the buying process has evolved dramatically, making the traditional purchase funnel invalid. Marketers have traditionally viewed the way consumers make purchase decisions as a linear process… people become aware of brands, consider the options, find a favorite, make a purchase, and in a perfect world become a loyal customer.
Social shopping applications are on their way to transforming the retail landscape. By empowering the inherently social nature of shopping (particularly for clothing and accessories) social shopping websites create deeper, more meaningful experiences than retailers have been able to offer on their own. Retailers don’t yet have a major role in the drama, but they still can—and should.Social shopping goes beyond the basics by addressing customers’ deeper psychological needs: the need for approval from peers, the desire for self expression, and the desire for entertainment. Providing experiences that have meaning helps social shopping sites create stronger bonds with users than retailers have been able to achieve themselves. In the process, they are reshaping the relationship between customer, product, and retailer.Social shopping sites allow for online peer collaboration, with purchasing ability close at hand, facilitating a very efficient flow from learning to evaluating to purchasing. The basic concepts make sense in retailer-ese. Virtual connections between people mimic a shared shopping trip in physical space. Hyperlinks between e-commerce stores in a network mimic their physical proximity in a mall. Social shopping is an open door for brands.Real time offers such as ShopKick that push in store relevant deals to consumers in specific areas of the store locationGroup buying like Groupon, where they leverage the power of the mass to incent deals New, reviews, & recos are becoming a standard component to any retail experienceSharing experiences through the use of Flickr, Facebook, Twitter… makes the sharing of information and feedback loop almost instantaneous. Viral promotion by using these same social mediums to cause a stir and drive timely and relevant consumer interest.
Some of the more prominent opportunities in the mobile space are:Sales: Being widely adopted by countries like Japan, the use of the mobile device for scan and payment is starting to go more mainstream. As payment companies start to integrate more into the carriers, the mobile device will very quickly become the wallet of the future. But this is not just limited to consumers scanning their device, it has also become a low cost method for retailers to accept credit card payments. One of the best examples is the newly launched Starbuck gift card app that will be rolling out through regions over the next few months. Product information and couponing: As mobile barcoding becomes more mainstream, retailers have the opportunity to integrate gift card payment barcodes directly into the app interface. This unique piece of utility now give users a reason to keep coming back and interacting with you brand. Additionally, users are becoming more and more savvy in the retail environment, and are actively downloading coupons directly to their mobile devices while in store.Augmented reality: One of the hottest new mobile technologies, and shiniest objects, but one that also offers massive opportunity when used properly. Take, for example:Yelp Monocle, which uses the phones GPS and compass to display overlaid markers for restaurants, bars and other nearby businesses in real time. You can access reviews, tips, suggestions, etc… bringing together the mobile and social platforms that influence a consumers point of purchase behavior. Or Layar, which is a tool to browse the world. It enables exploration, for example while looking through the phone’s camera lens, a user can see houses for sale, popular bars and shops, tourist information of the area, play a live game, etc. Layar is crafted to act as a browser that allows for these different apps to be used, rather than being single purposeComparison shopping: Tools like Redlaser allow users to scan barcodes on site and not only get a comparative price, but link directly to online retailers to complete the purchase process.Drive to store: Blend the power of stated consumer interest, while on the go, and in close proximity to the physical store location and you have the recipe for driving hyper relevant foot traffic and revenue. Mobile search blends the best of web search and location awareness to drive maximum value and utility to user. Google is synonymous with search in both the web and mobile spaces, compared to its web siblings, Google's share for mobile browsing is more than 97%, and have experienced 500% growth in the past two years.
Some of the ways it is already having an impact in the retail space are:Customize product features: Auto dealerships are arming their sales staff with tablets in order to help customize consumers car selections as well as link them easily back to product features, inventory, and credit approvals, all helping streamline the process of purchasing and car.Concierge service: Hotels are using tablets to allow both associates and customers easy access to information on local sites, restaurants, and things to do. This is helping staff to be more mobile and not tethered to the desk as well as empower customers to take their exploration into their own hands, allowing retailers to find and distribute information to customers in real time across multiple mobile devices is helping accelerate the pace at which business and individuals can collaborateEntertainment: many industries are using tablets as a form of entertainment and revenue, allowing users to rent the devises for periods of time. This creates and environment with more flexibility and opportunity for the consumer to personalize their experience with the brand.Real time inventory can be used for helping consumers verify if the item they are interested is in stock and where in the store it is located. Personal shopper: some retailers are distributing tablets and mobile devices to consumers to act as a personal shoppers that can make recommendations based on user preference
Plenty of applications are possible, such as:Mobile ticketing in public transport: an extension of the existing contactless infrastructure, such as Mobile Phone Boarding Pass.[2]Mobile payment: the device acts as a debit/credit payment card.Smart poster: the mobile phone is used to read RFID tags on outdoor billboards.Bluetooth pairing: in the future pairing of Bluetooth 2.1 devices with NFC support will be as easy as bringing them close together and accepting the pairing. The process of activating Bluetooth on both sides, searching, waiting, pairing and authorization will be replaced by a simply bringing the mobile phones close to each other.Other applications in the future could include:Electronic ticketing: airline tickets,[2] concert/event tickets, and othersElectronic moneyTravel cardsIdentity documentsMobile commerceElectronic keys: replacements for physical car keys, house/office keys, hotel room keys, etc.NFC can be used to configure and initiate other wireless network connections such as Bluetooth, Wi-Fi or Ultra-wideband.
On premise: many retailers, from food to clothing have started to use DOOH to quickly distribute offers, based on time of day and spot promotions. Business such as Walmart have seen great impact in using rotational digital display to promote product partners in relevant areas of the store in order drive product sales, mobile couponing, and product demos.On the go: DOOH has been heralded as an effective medium to reach consumers when they are on the move and close to the point of conversion. Locations like gas pumps, coffee shops, doctors office and health clubs are all effective locations, due to the relatively captive audience and high profile positioning.In high traffic areas: In mall retailers are using DOOH displays to drive in store foot traffic from other locations of the mall. These displays can be as simple as a rotational flat screen experience, to a touch screen immersive experience that draws in the passer by, and allows for deeper product interaction.With interactive capabilities: These displays can incent interaction though things like touch screens, text to vote, polling, and even allows you to buy a drink for a fellow patron.Enhancing the experiences by delivering a engaging video, offers, text engagement or touch screen experience
Some of the emerging uses we are seeing for surface technology are:Ordering and on-premise: bars and restaurants inside vegas lounges are starting to install touch screen table tops in order to engage customers, elongate the time spent on premise and cross sell servicesBrowse products: companies like JCPenney are installing touch screen kiosks in store locations to make it easier to navigate the store and find productsCustomize experiences: children’s stores like Jane, are implementing touch screen kiosks so they can customize product recommendations based on lifestyle, needs and usageDrive foot traffic: many retailers are starting to use touch screen displays either in mall or at the store entrance to incent interaction and draw in additional foot traffic Provide information: and hotels are using touch screens to make their customers lives easier, giving them access to information and services in a DIY environment.Attract New Customers - Attract and convert new customers by utilizing innovating and intuitive technology. With its technologically advanced, yet intuitive approach to computing, Surface immediately appeals to people. It is cool and people get excited to try it out.Transform the Customer Experience - the Microsoft Surface interactions encourage people to engage and discover content. You can tailor the experience according to individual needs. Microsoft Surface can create an experience customers will remember, long after they have left your premises … and keep them coming back for more.Increase Customer Loyalty and Cross Sell - by informing and leading your customers toward additional products and services. Reduce cost of service with self-service options. Improve Brand Perception - You can inform your customers about allied services and related products— new discoveries are just a touch away. And with Microsoft Surface’s full-color, interactive user interface come new opportunities for displaying your brand and creating a customized user experience that sets your business apart from the competition. Take a step away from the traditional banners/posters but create memorable branded experiences for your customers that help improve brand attribution.
Faced with increasingly competitive e-commerce channels, weather fronts that can often dissuade shoppers from venturing outdoors and a sometimes uncertain global economy, the bricks-and-mortar retail world has come under sustained pressure to offer engaging and attractive offers.Retailers are rethinking the ways that they utilize a store’s real estate, moving away from the idea of simply making a sale and focusing instead on the cultivation of an immersive brand experience. As a result, every location is being re-imagined as a flagship store, incorporating elements of storytelling and entertainment alongside hands-on product demos and interactive displays. These details bring a level of discovery and education to the shopping experience, making every visit feel more like an event than a transaction.
Preview shoppingSmarter mobile devices and improved GPS technologies are providing shoppers with details about the retail environment, often before they ever visit the store. This information can take the form of interior views or turn-by-turn directions to help customers better navigate the aisles and locate products easier. In addition to providing increased convenience and efficiency, this technology also allows for real-time information about foot-traffic at retail locations and stands to affect consumer habits such as what time of day they visit a store.Reviews and hints – social channels like foursquare and FB Places have made it easier to consumers to get insider tips on shopping locations, what is hot and what to avoid. This helps in making the trip as easy and seamless as possible.Tracking and organizing - method for tracking and organizing the groceries they buy. Upon first use, items from a shoppers’s list are automatically sorted to match the rows of the store they shop. Over time the application learns the user’s purchase habits and default items to arrange shopping lists even more efficiently.Insider access - build mobile applications with maps of indoor space. Services like Point Inside are able to take these foundations and provide merchants with the ability to communicate with shoppers as they move physically along an indoor map.Gift guides by location - provides gift recommendations for multiple stores within a mall. The application aggregates top gift guides into one location, allowing shoppers to narrow down gifts by descriptions of the recipient and pointing shoppers to nearby retailers that may carry them.Heat mapping activity – apps have recently been developed that allow users to find out where the hot locations are based on social checkin activity. Additionally, retailers are allowing consumers to log on and see what kind of crowds they will be encountering when the venture to the physical store location.
Digitizing customer serviceOnline click to chat – offering helpful advise to a consumer who is in dire need is a way to establish your knowledge authority as well as develop a more immersive brand experience. By creating these types of experiences, brands can help drive lifetime value as a trusted partner.Twitter to better serve – Best Buy continues to lead the pack in this regard, but many other companies are using Twitter to help expedite customer service and add value within the social environment.Service as the new marketing – Zappos is the prime example of how customer service is the new marketing tool, by creating positive brand experiences, they are using the social graph of their loyal customer base to extend reach and word of mouth advocacy. Value beyond purchase - GM completely transformed their brand thorugh technology and delivering value beyond the sale. By providing services that allow users to interact, feel connected and safe, they have produced a relationship that improves lifetime value and a unique selling proposition against their competitors.Listening to your social graph – allowing users to “like” specific products and share their shopping decisions within their social network. The site can also be customized to show only those selections that have been “liked” by your peer group.
Fitting rooms soon will be outfitted with digital shopping assistants - touch screen and voice activated kiosks that will allow you to choose clothing items and accessories to complement, or replace, what you already selected. No longer will you need to make multiple trips to the fitting room and comb through racks searching for the right colors and sizes. Once you make your selections via the digital shopping assistant, a sales associate is notified and will gather the items and bring them directly to you. If items you want aren’t stocked on the floor, you will have the option to purchase them online and have everything shipped to your home using the digital shopping assistant. Or, your digital shopping assistant can tell you which stores nearby are carrying the items and offer to place them on hold. Empower in-store associates – some technologies are being built straight into the dressing rooms and allow users to request new sizes/colors/styles be delivered directly to them. This frees up the sales associates to better serve the consumer and expedite the dressing room process. Virtual dressing rooms - allows shoppers to take pictures as they try on outfits. They can then post them online and ask their network of Facebook friends for their opinions on what styles look best, or use augmented reality to allow people to virtually try on the clothing prior to walking in the store.RFID for easy navigation – this allows users to synch their location to a virtual map, allowing for better navigation of the retail environment as well as allowing the retailer the opportunity to make department relevant offers to the consumerOnline consults - allows users to upload digital photos of themselves wearing outfits they are considering purchasing. Users have the option to share the images with the entire community, or just their friends. Once an image is shared, community members can vote on the outfit by saying “wear it” or “change it.”Scan and recommend – scanning of barcodes and price comparing has become a standard in the new retail environment. But now retailers are also offering the ability to scan and piggyback complimentary products that may be of interest.
Crowd sourcing ideas – Companies like Starbucks have started to source new product information and marketing ideas through their online communities. They depend on their loyal consumers to influence the product selection and new ways of meeting consumer demand, and by giving the consumer a voice, they have deepened the connection and improved brand advocacy. Money saving advice - companies like Walmart have used influential bloggers to help consumers devise new ways to safe money and spread their brand. They are living the “save money, live better” mantra that they have become so famous for, through digital channelsSharing ideas through UGC – shows how a retail giant can use social media to engage consumers around a supermarket brand. Social media competitions and special offers encourage consumers to associate with the Sainsbury's brand and shop at the supermarket. They do this through crowd sourcing recipes and consumer to consumer advice Extending engagement – allows users to crowd source inspiration and design ideas around the HGTV brand… this leads not only to continually fresh content, but also provides brand affinity and a the ability for advertisers to align with peoples social graph.CSR – corporate social responsibility has been a huge factor in creating goodwill towards brands and unifying consumers for a cause. Companies like McD’s and Starbucks have had great success in running programs that give back to the community and align specific causes that consumer can rally around.
As we start to move forward and integrate more immersive technologies into the retail experience, we need to do so with the appropriate lens on the consumer. We need to look at how we can apply our promotions across channels, not necessarily have a singular message in all channels, but rather a message that builds on the benefits each channel can bring to the table. We need to think of ways to bring a deeper connection with the consumer to the forefront, whether this is through technology, service, or the in store environment. These experiences we create on each platform need to provide a deeper emotive connection, not just pushing the sale, but making the experience one where the consumer feels welcomed and free to discover. And finally, we need to ensure that our customer services is built on a foundation of the customer at the center… there is nothing that more quickly turns off a potential consumer as a bad interaction. So, even if you don’t make the sale today, create an experience that will improve brand favorability and drive better lifetime value.
Moving forward, we expect retailers to evolve retail locations into havens of technological interactivity and experiential treats. We will be presented with a radically altered retail future, where shopping locales become genuinely alluring leisure destinations, complete with unique in-store activity and, crucially, seamless connectivity with the technologies and networks consumers can so readily access on-the-go. This section explores some of the emerging trends in how retailers are providing value through digital means.
Retailers are rethinking the ways that they utilize a store’s real estate, moving away from the idea of simply making a sale and focusing instead on the cultivation of an immersive brand experience. As a result, every location is being re-imagined as a flagship store, incorporating elements of storytelling and entertainment alongside hands-on product demos and interactive displays. These details bring a level of discovery and education to the shopping experience, making every visit feel more like an event than a transaction.Some of the implications around structuring your in-store experience like this are:Give customers a reason to visit the store for reasons other than making a purchaseTreat customer visits as an opportunity to tell the story of the brand from the moment they walk through the front doorEnable shoppers to discover new products that they had not previously consideredCreate an environment in which customers are encouraged to try productsTreat the physical retail space as an educational environment, enhancing the pre and post-purchase experience
Provide customers with the tools they need to connect socially. They’ll become influencers, sharing their selections and the retailer’s news with connections who will further spread the message. They’re just as likely to be influenced, receiving messages they act on and spread. Effective person to person spread can become viral and far exceed any “reach” efficiency ever offered by big media.Exploit customer “real estate” on their desktop or mobile dashboard. There’s a reason Microsoft developed a strategy to “own the desktop” and is now selling advertising.Deliver information that creates value for smaller affinity-based segments who share key needs, like new moms. Never before has such targeting been possible in such cost-effective ways as it is now for the retailer with value to add.Select outside media relationships to generate a “halo” effect that differentiates the brand and gives it personality for different customer segments. The sheer tonnage and reach of old media is already covered through direct connections with customers.
As the shopping experience becomes increasingly digital, the actual delivery becomes one of the only physical encounters with the brand. It is worthwhile to consider what that delivery experience is like and how it can capture and/or extend the brand experience – be it digital or physical. Often times marketers will continue to invest money in branding, but focus less on that delivery experience – which to some extent can be considered the ultimate brand truth, because it is the magic moment when the product arrives.The possibilities are endless, but we have included a few thought starters here.Say thank you. A personalized letter or sweet treat can go along way. The photo on the right is from a mother who ordered soccer cleats for her 10 year old son. SoccerPro.com sent her an envelop with “unofficial documents” enclosed. The envelop had a lollipop and some playful terms and conditions. The delivery also came with a thank you note. Driving trial with samples. Sometimes the samples are a surprise whereas in the case of Sephora, when someone is finishing their order, they have the ability to select three samples. Not only does this plus up the delivery with free/fun stuff for the recipient, but it also breaks down the barrier of entry (high purchase prices) for the products Sephora carries. Most people won’t spend $50 on a moisturizer they’ve never tried.eCRM opportunities. Are there next steps someone can take? Could we include a card for an app download – letting them know a special gift is waiting for them if they use a special code included in the package delivered? Should they receive a Facebook Fan event invitation? Lifestyle surprises. Could we pair a little tube of sunscreen when you order a bathing suit online? Or perhaps some cocktail napkins to go with the new smoky eyeliner you just bought? Or perhaps it is a scavenger hunt card – places to check into while out on the town – with fun prizes or rewards along the way.Green alternatives. We see it on food delivery sites like GrubHub. You can choose to opt out of plastic ware. People should be able to opt-out of receiving a paper catalogue. Think through delivery customization options (green or otherwise). Create a tailored digital catalogue, and let the customer know it is waiting for them online. Customer satisfaction with hassle free returns. Include an envelope for returns. If pre-paid is too expensive to dole out with each delivery, think through mobile activation options. Are there ways to use mobile technology to make the return process easier? Can a mobile app scan and activate a pre-stamped envelope?What’s the point of all this? To create preference within your competitive category by delivering an exceptional brand experience, even if it comes in a box.http://www.wowbranding.com/_blog/WOW_Branding_Blog/post/Delivery_is_more_important_than_branding_-_it_IS_branding!/
Six attributes deliver greatest value to customers in a mass media channel. Few players yet have the capacity to offer the highest value of all attributes combined in a single property. Additionally, most media choices will be evaluated based not only on the number of attributes they do offer, but on the attributes and their combinations required for customers to perceive value.Connectivity - telecom/TV/broadbandInterfaces - Apple /Windows/searchRelationships - direct and deep through added valueServices - direct/third partyContent - create d/bought /partnered/customer -generatedStandards - unique platforms /attributes /access
As we start to move forward and integrate more immersive technologies into the retail experience, we need to do so with the appropriate lens on the consumer. We need to look at how we can apply our promotions across channels, not necessarily have a singular message in all channels, but rather a message that builds on the benefits each channel can bring to the table. We need to think of ways to bring a deeper connection with the consumer to the forefront, whether this is through technology, service, or the in store environment. These experiences we create on each platform need to provide a deeper emotive connection, not just pushing the sale, but making the experience one where the consumer feels welcomed and free to discover. And finally, we need to ensure that our customer services is built on a foundation of the customer at the center… there is nothing that more quickly turns off a potential consumer as a bad interaction. So, even if you don’t make the sale today, create an experience that will improve brand favorability and drive better lifetime value.
SPEAKERS NOTE*** when presenting this section, please edit the points so they are relevant to your client situation. We took the approach of “if X client was totally new to the space” what would you need to do to get up and running from an internal and external perspective.
As we start to move forward and integrate more immersive technologies into the retail experience, we need to do so with the appropriate lens on the consumer. We need to look at how we can apply our promotions across channels, not necessarily have a singular message in all channels, but rather a message that builds on the benefits each channel can bring to the table. We need to think of ways to bring a deeper connection with the consumer to the forefront, whether this is though technology, service, or the in store environment. These experiences we create on each platform need to provide a deeper emotive connection, not just pushing the sale, but making the experience one where the consumer feels welcomed and free to discover. And finally, we need to ensure that our customer services is built on a foundation of the customer at the center… there is nothing that more quickly turns off a potential consumer as a bad interaction. So, even if you don’t make the sale today, create an experience that will improve brand favorability and drive better lifetime value.
Challenge: 1. Sales:Drive cost effective sales leading to a profitable return on investment.Improve ROI YoY by 1.5%. 2. Awareness:Deliver standout and cut through in a typically busy Christmas market.Increase awareness of Boots’ product range and offers, and support the ATL campaign.Deliver a strong reach and frequency against our target audiences.Target Audience:Women 25-54 - primary target audience. Women with Children was a secondary audience for the Toys and Games campaign.Men 25-54 was a focus for Last-minute fragrance campaign during the final weeks of December. Strategy:The strategy was to ensurethat all online (Display, Search and Affiliates) and offline media work together produce results which were greater than the sum of their parts, by connecting with consumers at all the stages along their path to purchase. Particular online channels played individual roles within aholistic approach.Execution:Sales and ROI Increase the presence of Boots on affiliate sites to drive awareness, traffic and sales. Display focused on low risk CPA activity delivering high ROI to meet this objective. Sales across display, search and affiliates were de-duped.Standout and Cut throughDisplay brand engagement pieces delivered through a rich media partnership. High impact display on key business days during Christmas. Display and Affiliates shared the same creative as offline to create parity and cross-channel standout.Awareness of rangeSearch were tasked with inspiring customers earlier in their path to purchase and show them the wide range of gifts available at Boots by serving ads against generic gift related search queries.Delivering reach & frequencyLow CPM display buys to drive high targeted reach, and higher frequency to support message cut through. Placements across 3,500 strong affiliate programme to drive reach.Results:CONFIDENTIALSales Campaign delivered 206,436 sales at a CPA of £5.34 and revenue of £10.8446m. Average basket revenue was £52.53.Standout and Cut throughSupported offline activity with key MSN Homepage takeover slot on the Friday following Cyber Monday (10th December) when shoppers who haven’t purchased online will be going in store. On average users spent 12secs engaged with the placement, 20% higher than benchmark level.Awareness of range Search impression share for Gift terms increased by 39% YoY by applying additional budget. Thus a greater number of searchers saw Boots ads and traffic increased by 62%.By targeting the appropriate audience and directing them to a relevant page on the site search traffic had a bounce rate of 25% (vs. 30% site average) and users spent an average 6.5mins on site browsing the product range.Delivering reach & frequencyVast majority of online population saw a Boots ad in the run to Christmas as the campaign had a de-duped reach of 79%.Frequency of 9 ensured that Boots was kept top of mind during the key retail quarter. Return on Investment:CONFIDENTIALConversion figures de-duped in DFA DoubleClick. Affiliate results also obtained from Affiliate Window. Total ROI in 2010 was £10.08 for each £1 of spend onlineDisplay delivered anROI of £10.02 for every £1 of marketing budget spent – delivering on campaign objective to drive profitable ROI. 2010 ROI demonstrated a 6.1% increase on the 2009 campaign delivery of £9.40.Search ROI was £1.54 for every £1 of marketing budget spent. Improved efficiency resulted in doubling sales volume in a channel which traditionally gives diminishing returns on greater levels of spend.Affiliates ROI was £14.32 for every £1 of marketing budget spent.
http://www.metro.co.uk/tech/852526-qr-codes-pick-up-on-hidden-messagesIn 2010, for Manchester’s Future Everything Festival, Oxfam launched their ‘RememberMe’ project.The people who donated their goods recorded an audio message explaining the history of the item, which was then hosted online and linked to an individual QR code on the product’s label.By scanning this the new owner could instantly access the unique human story behind their purchase, which was played over loudspeakers within the store.
Sales representatives in 40 U.S. dealerships in late May 2010 began using iPads on showroom floors to order on-the-spot financing options for customers.  In October, Mercedes-Benz had released an application for the iPhone that lets customers manage accounts and make payments. Up to now, customers have made $5 million in car payments through the application, Hinrichs says. The company now is considering doling out iPads to all of its 350 U.S. dealerships. Also, in April and May 2011 issues of Evo Magazine on the iPad, Mercedes bought out all advertising and incorporates a 360 degree view of the interior.
Volkswagen a usually long path to purchase allowed customers to use and share their potential colour combo/car spec with friends Recommendations from friends and family (e.g. your brother in law who know loads about cars) 450K used app Nov 2010 ¼ of those changed based on recommendationI guess this is the potential to bring you knowledgeable friend with you to the showroom but before purchase…Taps into the fact that products are often researched seriously online before purchase and the final piece of this now is the personal approval!Takes away the need to buy What Car etc as
1) BMW Launches First Ever User-Generated iAD – iAd Allows Users to Build Their Own BMW X3 and Have It Delivered in Weeks2) BMW Launches iPad Experience for Consumers at Major American Auto Shows -Traditional Auto Show Specification Panels Replaced by Interactive iPads3) BMW JAGTAG Program – BMW engages Sunday window shoppers with JAGTAGSBMW JAGTAG ProgramWe at BMW are faced with a challenge, how to engage customers on Sundays when BMW Centers are closed. On Monday, the attached JAGTAG stickers will be placed on the windows of vehicles on some center lots in order to communicate with Sunday window shoppers.On the eye-catching window sticker are 4 JAGTAG codes, a barcode that sends specific content, like video or articles. The 4 barcodes each cover a category:The BMW Difference – videos about unique BMW features.Safety – videos highlight BMW safety innovations.Value – videos explain why BMW is a sensible purchase.Accolades (Articles) – Magazine Reviews and Awards.Each video is approximately 20-25 seconds in length and cover topics like xDrive, safety awards, Ultimate Service and more.
Certain items featured in the live fashioncast were already available on dkny.com for purchase during the show. Just over 1,200 viewers actively participated The DKNY fashioncast was hosted by DKNY’s Twitter persona, DKNY PR Girl and allowed friends to communicate about what appeared on the runway and then go on to buy…http://mashable.com/2011/02/11/fashion-brands-social-media-roi/
THE NORTH FACE ‘BASECAMPS’ Outline the marketing situation to which the campaign responded Nine months prior to OMD International being briefed by The North Face, the California outdoor apparel brand had less than 8,000 ‘Likes’ on Facebook. Recent work around the world had grown that number significantly, so much so that at the time The North Face were in touching distance of 1 million ‘Likes’. The client wanted to cross the finishing line in style, and appointed to OMD International to launch its most innovative social media campaign to date. OMD International was asked to deliver a campaign that would engage The North Face’s ‘Explorer’ audience in Facebook and drive P2P brand endorsement via social media channels. Creativity was key, and the brand called for a media first that would truly break the mold, while delivering on the stated objectives. 2. Describe the critical insight or insights that became the foundation for the digital strategy Two insights shaped the solution. First, The North Face’s audience was most in its ‘Explorer’ mindset when outside. If we were to engage the audience in an environment when the brand was most relevant, in front of the desktop PC was not the most appropriate channel – it had to happen in the real world. Secondly, social media’s most powerful outdoor platform is Facebook Places. The scale is enormous and the users of the platform are incredibly engaged on Facebook, with users of Facebook’s mobile application being more than twice as active on the social network than desktop-only users. The North Face had an incredible opportunity to deploy a marketing communication using the platform and exploit its position as the world’s premier outdoor brand on the undoubted powerhouse of location-based media. 3. Tell us about key tactics employed and why they are innovative The solution was a location-based game called Basecamps, which challenged ‘Explorers’ to climb a virtual mountain by checking in to real-world locations using Facebook Places. First of all, players were asked to create their own personal The North Face ‘Basecamp’ using Facebook’s mobile application. This effectively added thousands of The North Face-branded destinations to Facebook’s real-world map. After that they were asked to check in to their Basecamp, and encourage their friends to do the same. Each check-in carried a player further up the virtual mountain, with check-ins to official The North Face retail outlets giving them a virtual helicopter ride towards the summit. Progress was monitored in the ‘Basecamps’ application on Facebook and all those that made it to Final Basecamp (90% up the mountain) by April 17th were given instructions on how to race to the top. The final race required visiting a Basecamps-branded Google Maps mash-up and locating flags hidden at the summits of various real-world mountains. The first 3 to do so won a visit from the Basecamps van, stuffed with £1,000 worth of gear from The North Face – delivered direct to their door. This extensive use of Facebook’s technology, and the branding of it all into an official The North Face game, represented a global media first. Ravi Daswani, International Business Manager at Facebook EMEA, said: “The North Face ‘Basecamps’ was the first campaign to really leverage Places in an extremely innovative manner. Great concept with a great plan!” 4. Describe how this campaign solution may be a template for other markets or exemplify worldwide best practices The North Face ‘Basecamps’ can be used as a case study in how the principles of ‘gamification’ can drive consumer engagement. In planning the creative execution of the core idea, OMD International looked to the following principles of social gaming to ensure success for the campaign: Friend-gatingA simple but important element to any social communication is the inclusion of built-in social publishing tools, that incentivise players of a game to recruit their peer groupOMD ensured that there were a number of triggers placed throughout the Basecamps game that incentivised peer-to-peer recruitment – such as the prompt to publish actions taken in the game to the Facebook newsfeed and also the ability to ‘tag’ friends at your chosen BasecampThe reward for this was quicker progression through the game and up the leaderboard, taking individuals closer to the ultimate prize of £1,000 in The North Face merchandise. OMD International also sent out ‘booster pack’ prizes each week, which featured lower-value items of merchandise such as backpacksOn-boardingThe trouble with innovation is that oftentimes it means offering consumers an experience that they are not familiar with. The best social games, which constantly evolve in the rapidly changing landscape they inhabit, do a great job of ‘on-boarding’ the player. In this context, ‘on-boarding’ is the simple explanation of a game’s mechanics, using video, automated walk-throughs and other tactics to quickly explain the key principles of a new environmentOMD International created videos, FAQ sections and traditional game instructions to quickly walk consumers through the mechanics of the Basecamps game. The creation of this content was a hugely important part of the game’s success, with lots of feedback specifically calling out the “simplicity” of an inherently complicated ideaDataAnother essential part of launching a social game is data capture. The sign-up process for Basecamps required giving The North Face access to certain data points already held by Facebook, for example email addresses and locationThis enabled OMD International to launch a custom eCRM initiative for Basecamps, keeping players engaged by sending tailored updates and reminders via email 5. Discuss the success of the digital campaign and how this was measured There were two elements to the client’s brief to OMD International, and KPIs were agreed accordingly: Engage the ‘Explorer’ audience in FacebookKPI # 1: Number of ‘Explorers’ playing the ‘Basecamps’ gameKPI # 2: Number of Basecamps created in Facebook PlacesKPI # 3: Surpassing 1m Facebook ‘Likes’ globally for http://www.facebook.com/thenorthfaceDrive P2P brand endorsement via social media channelsKPI # 4: Number of social publications (e.g. publish to newsfeed, send to friend) from the Basecamps Facebook applicationKPI # 5: Uplift in The North Face ‘Basecamps’ buzz volume in social mediaKPI # 6: Uplift in positive The North Face sentiment onlineKPI # 7: Viral video views For measuring the first set of metrics, we used a mixture of Facebook Insights, Google Analytics and proprietary website measurement software. For the second set of metrics, we used OMD’s Chatterbox product (powered by Sysomos) and Facebook Insights. OMD International beat all KPIs set by the client, exceeding the # 1 goal (number of players) by 155%. In addition to making the Basecamps campaign an undoubted success, OMD International helped the client surpass the target of 1 million ‘Likes’ for http://www.facebook.com/thenorthface.
It is about more than the act of purchasing and allowing people to either gift or to manage their charge card for example!
Brand solution to help engage people with Ford brand whilst at the Motor ShowDirecting more footfall to their tent using:Videos of new Ford modelsPoint & Find – Augmented realityLocal AreaMyFord DashboardBuilt in such a way that it could be rolled out across all motor shows
Nike are using QR codes on their shop windows in Belgium which automatically allow you to “Like” the product on Facebook.
This QR code links to a mobile optimised web page featuring a synopsis, trailer, cinema show times and official photos.This is a great example of how to integrate QR codes into the artwork of an ad, creating intrigue for the consumer and rewarding them with valuable content.
McDonalds in Japan used QR Codes on nineteen sandwiches, eight sides and five salads taking customers to the nutritional information for the food they ordered.Customers could view the number of calories in their meal and the amount of sodium, fat, protein and carbs. It also allowed customers can also find out about allergy information, although the user gets the QR code once they have their meal- so it was a bit late.The fact they had the QR codes on their packaging was advertised in subway stations.
Stacked: Food Well Built will open its first of three California locations this May in Torrance with more than 100 iPads sitting atop its tables. Customers can use the tablets to design and build their own burgers, pizzas and salads, in what co-founder Paul Motenko refers to as “fast-casual” dining. Diners can also use the device to pay their bill.While patrons may be lured into Stacked because of the iPads the first time, Motenko said the restaurant’s goal is to have them return for the service and dining experience, rather than the flashy technology.“The key for us has always been for the technology to facilitate the experience,” he said. “Regardless of why people walk in for the first time, it’s up to us to provide an experience that makes them want to come back.”Motenko would not say if Apple (NASDAQ:AAPL) provided a discount for the small business’ investment, but he did say Stacked is working closely with the tech titan.“They are very excited about what we are doing, and will probably help us in a variety of ways,” Motenko said. “What is more significant to Apple is the number of people who will be exposed to using the iPad in our restaurants. We are expecting about 7,000 customers per week, per restaurant, using an iPad—that is an awful lot of exposure.”Read more: http://smallbusiness.foxbusiness.com/technology-web/2011/02/21/using-ipads-restaurants/#ixzz1RzQVf7aVRead more: http://smallbusiness.foxbusiness.com/technology-web/2011/02/21/using-ipads-restaurants/#ixzz1RzQKtZO5
Cellar Key allows the user to take a video tour of the winery, read accolades, meet the winemaker, and explore food and wine pairings directly from a smartphone.With QR tags on bottles from 6 wineries it gives the consumer a wide range of ‘extras’ to explore.The Wine group Sevencamp are also integrating QR on the labels of their bottles.
Customers going to Things Remembered can view rotating images of products, videos and commercials, listen to music and look at the retailer’s loyalty program, as well as enroll in it credit card program.Additionally, customers can view current promotions and coupons.Things Remembered can use the Web-based console to configure and manage the entire service centrally.“Users want information in a way that’s familiar to them,” Mr. Bhanote said. “Deploying an iPad in the store changes that and delivers an experience to users.“IPads are also doubling down as store associate tools,” he said. “I can just use the kiosk as a sale tool – it’s not just a kiosk.Things Remembered is using the service in select stores to streamline a previously paper-based, in-store ordering process.The company is offering customers an interactive gift and personalization process on the iPad kiosks.“Mobile is on top of mind absolutely,” Mr. Bhanote said. “Mobility is a big deal.”
Delta recently installed iPads for public use at dining areas at several of its gates in Kennedy Airport.The iPads are attached to booths at two new restaurants at Delta gates: Croque Madame, a French and Bar Brace, a casual Italian restaurant. Customers can order meals directly from the iPads, with delivery to their booth guaranteed in 10 minutes or less. The wireless connection to use the devices is free.The booths containing the iPads also feature power strips where travelers can charge their own electronic devices. And although Delta and OTG Management are promoting the iPads as mainly a convenient way for passengers to order food and drinks, travelers can also use the iPads for other things, like checking their flight status, going on the Internet or playing preloaded games.”
Discount airline Iceland Express, which flies primarily within Europe, but also offers limited trans-Atlantic service from Reykjavik to New York and Winnipeg (Winnipeg!), is launching iPads as inflight entertainment. You’ll be able to rent an iPad onboard long-haul flights, for starters, and eventually on shorter flights. The unit will cost $13 to rent, with about 25 units on board each flight.
When most people think of a fancy restaurant, they imagine steaks and caviar in a warm French style building. Their waiter is a fancy well trained individual who does your biding at your whim. Thats what most people think, After this weekend I however don’t. This weekend I went to one of the nicest, most fancy restaurants I have ever been to. And guess what it doesn’t look old and French, it looks like an Apple store. My waiter wasn’t well trained as much as he was well programed. When my food came out it wasn’t a steak(yum) or caviar(gross), it was a burger and it had a hole in it. But wait, before you completely write me of as a crazy person or one that has bad taste, hear me out. I had dinner at one of the most unique restaurants around, 4food in midtown ManhattanI had seen a story on CNN about 4food a few months ago and while visiting New York City this weekend with my girlfriend, I convinced her to go with me. The walk was a few blocks out of our way but on the corner of 40th and Madison it’s in a great location for all New Yorkers to visit. 4food is a restaurant that according to one of the many fun cartoons on their site was founded as a healthy reasonably priced alternative to a fast food restaurant. So why am I comparing it to a fancy French restaurant you ask. The answer is simple as a college student one of the burgers at 4food are honestly as fancy as I want my food. Our for food experience started out with ordering, the main table that has Ipads attached was empty so Erin and I sat down and ordered from the Ipads. The orders are done through their website which is pretty interactive. I ordered a regular burger with cheddar cheese, fancy bacon, and a potato/chorizo hash scoop. According to 4foods site that is one of about 400,000 different combinations available at the restaurant. The food was great specially the mango chai tea that I got as a drink, it came with mango chunks inside and was one of the teas I’ve had in a while.Besides the food the biggest part of this restaurant is the social aspect. 4food has forgone normal advertising and opted to try to gain popularity in the network infrastructure(internet). They allow users to create a profile with their own personal burger. The user is then tasked with marketing his burger on face book, Twitter, and other social networking sites. There is actually a large screen in the building that features a Twitter feed of any mentions about 4food. For your work you get a $12 credit at the restaurant for signing up and .25 cents for each person who buys you burger at the restaurant. All this means that 4food gets a lot of potential advertising and their customers get money towards future shopping trips. Another plus for 4food is that when a customer makes a personal connection with a store(like having your own burger), it makes them more likely to return in the future.
Built upon Global Bay's award-winning mobile platform to synchronize and manage data, the kiosk product provides retailers with an entirely new in-store channel to deliver content to the customer in an Apple-intuitive, efficient and sophisticated way. This native Apple iPad application approach provides a rich and responsive user interface that enhances a retailer's brand image and the overall customer experience.The new product provides retailers with a compelling, cost-effective and quick-to-deploy solution while also being completely configurable; retailers have the ability to design, deploy and manage the entire kiosk application through an easy to use web management tool.Features include:Rotating imagesVideos and commercialsMusicLoyalty program and credit card enrollmentLoyalty rewards account look-upRetailer's website accessPromotions and couponsUsage trackingWeb-based console for configuring and managing the entire solution centrallyThe City Sports new concept store in Washington, D.C. is using the product to route customers to product related information such as the City Sports website, product and informational videos and news, and local specific content such as running clubs and other events."Global Bay's Kiosk module is an extremely cost-effective option to enhance the City Sports customer experience that also happens to be a solution our customers already know how to use," said Dylan Bruntil, Director of Information Technology, City Sports. "From day one our customers can take advantage of this intuitive device and enjoy the benefits immediately."
Puma is poised to have one of the most extensive in-store iPad solutions, among retailers, with the rollout of its new customization platform, Creative Factory. Billed as a seven-figure investment, the concept, developed by Spies & Assassins, a unit of Kirshenbaum Bond Senecal & Partners, revolves around the iPad and replaces a prior customization program dubbed "Mongolian BBQ.In the store, a wooden table is scattered with materials used to build two of Puma's classic shoe styles, the "First Round" and the "Basket." A pole with three telescoping arms emerges from the center of the table; an iPad is bolted to the end of each arm. Customers use the materials on display as inspiration and then use the iPads to actually design the shoes. When the design is complete, it is sent to a fourth "administrative" iPad at the cash register.Once a store employee processes the transaction, the order is released to the factory and its status is updated and tracked through an administrative app. In the next 12 to 24 months, other categories, such as bags, T-shirts and jackets, are expected to be added to the program.The concept hits stores this month, first in 15 cities in Europe, the Middle East and Africa. In 2011, it will begin rolling out in the U.S. and elsewhere around the world. For now, the app is focused simply on the design of the shoe. But in the coming months the ability to share designs via Facebook and other social-media sites will be activated. Customers will be able to see who designed different shoes, where that person lives and how many other people have bought the design. Designs can be tagged and searched.Puma also plans to allow people to build out their own boutiques, which will have a gaming aspect. New materials and badges will be unlocked depending on the popularity of a person's designs or boutique. Customers will also be able to issue design challenges to one another and enlist their friends to vote. Ultimately, Creative Factory will be available in store, as an app and online.
The Future Store is a flagship retail store based in Tˆnisvorst, Germany. A fully integrated mobile application was developed 2008 enabling customers to use a range of mobile shopping services with their phones. For example, customers can use mobile phones during their shopping trip to scan barcodes each time a product is added to the basket. The application keeps a running total of purchases and creates a unique barcode that is scanned at the point-of-sale terminal to enable checkout. Additionally, consumers can use the mobile phone to get additional information on products and promotions as they move through the store as well as pay with their phones using NFC-technology. Since 2009 real,- customers in Germany can use a personal shopping list anywhere they go with the mobile phone. The ‘Mobile real,- Einkaufsliste’ is available for more than 600 different mobile phone
Kraft Foods have developed an application for the iPhone that allows consumers to search for recipes and find the ingredients they need. The application has been one of the most downloaded from Apple’s App Store. The application does not integrate bar code reading software but shows the potential to provide a useful service to consumers that adds value to the brand and to the product offering as a whole
Big in Japan is a US-based solution provider. It was one of the winners of the Android Developer Challenge awarded by Google when it launched its Android operating system for mobile phones. ShopSavvy allows consumers to scan product bar codes, find online and offline locations where the product is sold and compare prices. Since its launch in 2008, ShopSavvy has been downloaded by over 4.5 million users with an average of 1 million bar codes scanned daily
A similar situation faced the British Tesco stores . Although they enjoyed a close second place in sales in Korea, his mission was to become number one. However, the chain Tesco had fewer branches than the leader EAR Mart. How could be the first in sales without increasing its number of stores?After several studies found that their target market is one of the hardest workers in the world and considered a waste of time, having to do more than once a week. So, as the saying goes, if Mohammed will not go to the supermarket, then they should go to Mohammed.With the help of advertising agency Cheil , Tesco Homeplus placed on several subway stations with prints billboards posing as a shelf. Although virtual shelves so the products that were displayed there, were very similar to real life. The difference is that in this case, users would use their smartphone to buy.Using a QR code , the Koreans could be filling your virtual shopping carts as they waited for the subway arrive. Once paid products with a credit card, they were sent to the door of consumers. So when they got home, they could relax or watch TV while someone else did the shopping for them.The campaign results were truly amazing and of course, very flattering for the chain Tesco. More than 10,000 consumers visited online store, increasing sales by this medium up to 130%. While not able to become number one, are now closer to the leader and certainly much better positioned in the minds of consumers.
ObjectiveMurphy USA, a well known gas station and convenience store in over 1,100 locations around the nation, is famous for its discount gas and friendly service. As the co-located gas station for Wal Mart, Murphy USA understands their customers want a great deal on gas, but that doesn’t keep them from having fun with the brand. In fact, they have innovative customer loyalty programs including a tour bus that travels to their different locations across the U.S. handing out prizes to their patrons.SummaryMurphy USA wanted to expand their presence into social and location as a way to build a strong, loyal online community that spread word of mouth about their brand virally. To do so, they partnered with Whrrl’s Society Rewards Program and built a Murphy USA Society, so that customers could check in and immediately get immersed in the world of Murphy USA, including recommendations from them and their fans.In addition, Murphy USA offered customers the opportunity to win $50 worth of free gas – just by checking in at their locations. To promote the offer, they used Facebook and Twitter to drive awareness and have fans join their Society. Murphy USA also had point of sale messaging at gas pumps with information on how to check in and win free gas, giving customers a compelling reason to activate at the pump.ResultsThe results of the campaign are stunning:After the first few weeks of the program launch, 44% of respondents had never visited a Murphy USA gas station prior to the promotion.84% of respondents told Murphy USA they chose Murphy USA over a competitor because of Whrrl’s Society Rewards program.The program has driven over four visits per customer per month – two times the industry standard.72% of customers using Whrrl are more likely to recommend Murphy USA because of the program.Customers using Whrrl are spending 30 dollars or more on average per visit – this is twice the industry standard of 15 dollars per visit.Whrrl is the third most influential social media driver of customers to Murphy USA behind email and Facebook.Murphy USA customers are participating in twice as many social activities via Whrrl than on Facebook or Twitter.To date, there are 3000 members in the Society.
Dog Agility Training and Canine Social Club Employees issued credit card-sized ID and dog collar tag with barcodes Zoom Room uses a scanner that works with the iPad to check dogs into the facility for classes and other events. Benefit: Because owners can handle this process, employees are free to answer questions, ring up sales and interact with dogs
San Francisco Art Exchange LLC (SFAE) is the worldwide leader in presenting the most important imagery from popular culture. A gallery for original rock art and photography Benefit: Sales team uses the iPad to control a presentation of the artwork that might be of interest to a specific customer. The customer can compare pieces side by side, see what the work would look like on a wall and see prices and sizing options on a large monitor at the gallery. Customers also can save their favorites in order to show a spouse or get a second opinion.
In February 2011, JC Penney, the US department store, rolled out its findmore service to 120 stores across the US. In-store, 42 inch touch screens allow shoppers to view the retailer’s full online catalogue, check inventory levels in local stores, share products with friends and scan product bar codes to receive extra information and complementary product recommendations.
In August 2011, the New York Times reported on an increase in the popularity of digital, paperless receipts. Retailers in the US including Whole Foods Market, Gap Inc., Sears and Kmart offer shoppers the option of choosing to receive proof of purchase by email or via password-protected websites.
Singapore-based mobile operator SingTel launched their flagship store in Singapore’s Comcentre in July 2011. The store’s exterior glass walls have embedded interactive digital touchscreens in them, meaning that the store is effectively open 24/7.
San Francisco Art Exchange LLC (SFAE) is the worldwide leader in presenting the most important imagery from popular culture. A gallery for original rock art and photography Benefit: Sales team uses the iPad to control a presentation of the artwork that might be of interest to a specific customer. The customer can compare pieces side by side, see what the work would look like on a wall and see prices and sizing options on a large monitor at the gallery. Customers also can save their favorites in order to show a spouse or get a second opinion.
In January 2011, Kraft and Intel partnered to launch The Next Generation Meal Planning Solution, a kiosk that provide users with customized recipes and offers to help them plan meals, with directions to relevant in-store products.
In March 2011, US retailer Gap launched a one-off deals site, gapmyprice.com, where shoppers could decide how much they wanted to pay for their khakis and make an offer online. The retailer then put forward its price, which consumers could accept or make a further bid until a final price was agreed on. Successful bidders collected their pair from a local store.
7-Eleven have partnered with Paramount and Foursquare in a campaign that encourages users to check-in to stores to win prizes. Every 88th person to check-in wins a free movie ticket, every 88,888th person to check-in wins a ticket for a zero gravity experience, while the 888,888th person to check-in will win the grand prize of a sub-orbital space trip.

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