This document summarizes key points from a Forrester Research presentation on best practices for retailing in the age of the connected customer. It finds that digital technology is transforming customer expectations and behaviors, with 98% of customers now shopping digitally. It recommends that retailers focus on enabling new customer insights, optimizing profitability, empowering employees, improving service levels, and personalizing the shopping experience to bridge physical and digital channels. Four barriers - poor store connectivity, outdated store systems, lack of real-time data insights, and siloed teams - currently hold back digital innovation. The emergence of a "digital store platform" is presented as key to overcoming these barriers and building the retail store of the future.

2. From Innovation To Execution: Best
Practices For Retailing In The Age
Of The Customer
Adam Silverman, Principal Analyst
June 17th, 2015
@AdamKSilverman

3. © 2015 Forrester Research, Inc. Reproduction Prohibited 3
“The pace of change is accelerating
faster than anticipated a year ago.”
Blake Nordstrom,
President of Nordstrom
April 2014

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Mobile connects us wherever we go
Base: 38,146 US online adults (18+) who personally use a smartphone to go online
*Base: 23,511 US online adults (18+) who personally use a tablet to go online
Source: Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2014

5. 98%
of guests
shop digitally
Source: http://www.mytotalretail.com/article/inside-targets-digital-revolution/

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Agenda
› The Emergence Of The Connected
Customer
› How Digital Technology Creates
Opportunities In Retail
› Recommendations

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Where the transaction occurs is irrelevant

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of store sales
are influenced online
52%
Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, The State of Retailing Online 2015. Base: 41 retailers. media.pathfinder.gr/cman_img_f/9549445219531437587.jpg
of online sales now from
mobile & tablet
28%

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73% - expect to click and collect
86% - expect to return online orders in the store
89% - expect to view the in-store inventory of
products online
Customers have high expectations
when it comes to channel integration
A commissioned Forrester study with Purolator, May 2014

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won’t buy in-store
1/4
Source: North American Technographics Retail Survey 2013

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12%
15%
15%
17%
17%
18%
19%
20%
22%
24%
To check availability of a product
To read customer reviews of a product
To access my shopping list
To access the Internet via guest Wi-Fi
To locate a nearby store or to check store hours
To take picture of a product to share with friends
To look up product information
To find or redeem a coupon/coupon code
To research a product
To compare prices
In the PAST 3 MONTHS, have you used your cell phone for any of the following while shopping in a physical store
Source: North American Consumer Technographics Retail Survey, 2014. Base : N=4,814 US Online Adults 18+ (Weekly or more) who are cell phone users
Customers research product in-aisle

14. Source: Forrester’s North American Consumer Technogrpahics Retail Survey, 2014. Base 5007 US online adults. Base 1156
online adults who have used their phone in-store to compare prices in the past three months.
Customers research product in-aisle

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Source: Forrester’s North American Consumer Technographics Retail Survey 2014. Base 5007 US online adults (ages 18+)
Digitally enabled associates add value

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Digitally enabled associates add value
Forrester’s North American Consumer Technographics Retail Survey, 2014

18. Source: Forrester’s “Manage The Cross-Touchpoint Customer Journey” report

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In-store data capture has skyrocketed
Sources: RetailNext

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of enterprise data
in used for analytics
12%Only
Sources: Forrester’s “The Forrester Wave: Big Data hadoop Solutions, Q1 2014” report

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45% of consumers have chosen,
recommended, or paid more for a
brand that provides a personalized
service or experience
Sources: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2014

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Personalization is coming
to the retail store

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Agenda
› The Emergence Of The Connected
Customer
› How Digital Creates Opportunities
In Retail
› Recommendations

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Source: April 16, 2014 “Understand The Digital Business Landscape” Forrester report
The Future Retailer Requires Mastery Of
Digital Business

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Digital Creates New Opportunities by:
1. Enabling new insights
2. Optimizing profitability
3. Empowering employees
4. Improving service levels
5. Influencing sales
6. Bridging the physical with the digital
7. Personalizing the shopping experience
Operational
Excellence
Customer
Experience

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1. Enabling new insights

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2. Optimizing profitability

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3. Empowering employees

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4. Improving service levels
Promises
delivery two full
days quicker
than before

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Source: POPAI
82%
make purchase
decisions in-aisle
5. Influencing sales

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6. Bridging the physical with the digital

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7. Personalizing the shopping experience

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Four Key Barriers Hold Back Innovation

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Poor store connectivity prevents
modern retail apps from being effective
#1

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Retail store systems are focused on
record keeping and not engagement
#2

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Existing systems can’t provide real-
time data insights across all channels
#3

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Retail teams are still siloed
#4

38. The Digital Store Platform Emerges

39. The Digital Store Platform Emerges

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Agenda
› The Emergence Of The Connected
Customer
› How Digital Creates Opportunities
In Retail
› Recommendations

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Your Roadmap To Building Your Future
Retail Store:
1. Expose inventory visibility
2. Align your teams around the customer
3. Drive towards a single view of the customer
4. Prepare for real time data driven business – online & stores
5. Optimize customer and staff mobile experiences
6. Leverage location context
7. Build your digital store platform

42. forrester.com
Thank you
Adam Silverman
415.294.8177
asilverman@forrester.com
@AdamKSilverman

43. #RIC15