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Attention Retail innovations Q2 Report
The document discusses innovations in retail as consumer behavior shifts towards digital and mobile commerce. It outlines how retailers must adapt to an omni-channel approach, using technology to engage customers across multiple touchpoints. Specifically, it explores trends in mobile in-store shopping, tablet and mobile apps, virtual stores, and social/visual discovery platforms to enhance the customer experience across channels.
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Attention Retail innovations Q2 Report
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- 2. Overview Retail and the new Customer Journey 2 2
- 3. Tradi7onally, companies never place anything between the customer and the transac7on. Today, consumers transact anywhere they have Internet access Today, consumers expect a social experience when shopping 3 3
- 4. Consumers spend more :me online than ever before In the past two years, consumers have Consumer retail behavior has migrated from retail loca:ons to online changed. stores Now consumers are now shi>ing their desktop ac:vity to mobile ac:vity 4 4
- 5. In response to the shi> in consumer behavior, retailers have to use technology as a conduit to forge more meaningful rela:onships with their customers and service them at mul:ple touchpoints. Today we’ll focus on five key Retailers must be equipped to areas: compete. -‐ Omni-‐Channel Marke:ng -‐ “Try-‐Before-‐You-‐Buy” Augmented Reality -‐ Product+ -‐ Crea:ve Loyalty Programs -‐ “Hyper-‐Localized” Shopping 5 5
- 6. Omni-‐Channel Marke7ng Mobile, Tablet and Pinterest Commerce 6 6
- 7. Customers benefit from interac:ng with brands where they want, when they want in a distributed non-‐linear customer journey The walls between channels are fading. Customers engage in 10+ different brand touches prior to purchase (e.g. mobile, catalog, in-‐store, iPad, Pinterest, e-‐commerce, direct, email) 7 7
- 8. Mobile gives consumers the online advantage in an in-‐store environment (e.g. price comparison) Many retailers are unfortunately losing customers in their own stores: Mobile in-‐store commerce is -‐ 73% of consumers use mobile in-‐store + 53% both a threat and an of those consumers stopped an in-‐store opportunity for retailers. purchase as a result of using their mobile phone* Mass adop:on of a next-‐genera:on POS program appears to be imminent, awai:ng results from pilot programs * Interac<ve Adver<sing Bureau’s Mobile Phone Shopping Diaries, May 2012 8 8
- 9. PayPal powers in-‐store mobile •eBay’s PayPal has signed on 19 more retailers (e.g. JCP, Toys “R” Us, Foot Locker, Nine West) who will purchases. start to accept the online payment system in U.S. stores •PayPal will allow payments through mobile phones •Retailers with younger target consumers will benefit, since some of these consumers are not old enough to qualify for credit cards 9 9
- 10. Peapod launched the U.S.’s first •The virtual grocery store has emerged in Chicago in a pilot program launched by Internet grocer Peapod virtual grocery store. •Peapod wrapped the tunnel walls of a subway sta<on with larger-‐than-‐life grocery shelves with popular products from brands like Coca-‐Cola, P&G and Kimberly Clark -‐-‐ all ac<vated via QR codes •During a previous 12-‐week pilot program in 15 commuter rail pla^orms in Philadelphia, Peapod found that 90% of those consumers who scan returned to Peapod to shop 10 10
- 11. Tablets drive sales comparable to those made in-‐store* -‐ Tablet AOV: $159.28 (on-‐par with in-‐store) Sales data from tablet -‐ Smartphone AOV: $134.37 commerce have pushed retailers to invest in tablet-‐only 137 million US consumers own smartphones shopping applica7ons. that collec:vely accounted for just 1.5% of online sales last year; less than half the consumers, 61 million, own tablets but they generated more than twice the percentage of sales, 3.2% * Na<onal Retail Federa<on’s Shop.org & Forrester Research’s 2012 Mobile Commerce Survey 11 11
- 12. Shopmox aims to bring the mall •The Shopmox iPad app incorporates 26 stores from retailers such as Anthropologie, Gap, Gap Kids, to the iPad through an app that Banana Republic, Urban Ou^icers and Old Navy. incorporates 26 retailer stores. Features include: -‐Follow preferred retailers to create a customized bou<que experience -‐No<fica<ons when a “liked” product goes on sale -‐Product recommenda<ons + curated content 12 12
- 13. eBay launched a new version of • Following two years of insight into consumer tablet shopping habits, eBay re-‐launched a new version of its iPad app, centered around a their free iPad applica<on visual window-‐shopping experience. • The release follows eBay’s report of a spike in mobile ac<vity on eBay between 2.5-‐3X the normal rate at which consumer conduct transac<ons on their mobile devices during Cyber Monday 2011* • The app focuses on a window shopping experience with big pictures, flickable photos, quick access to info, and purchase via PayPal within the app environment * WWD’s “Mobile, Tablets Lead Holiday Charge”, December 7, 2011 13 13
- 14. • Pinterest has 12MM+ users, growing 146% since January 2012 Pinterest is now the third most • Pinterest pins with prices receive 36% more likes than those without* popular social network in the world, based on referral traffic • On average, orders from Pinterest are double those and daily ac7ve users. from Facebook ($80 AOV vs. $40 AOV)* • Pinterest’s API will soon be made available for developers to build apps using Pinterest data** * Shopify’s Pinterest ecommerce study, May 2012 ** Fast Company, “Pinterest CEO Ben Silbermann Talks New Profile, New Social Tools, Addresses Controversy”, March 13, 2012 14 14
- 15. Calypso St. Barth engaged a •Fashion blogger Chris<ne Mar<nez (1MM followers), travelled to St. Barth to “live pin” a photo shoot for fashion blogger to “live pin” a Calypso’s 2012 summer look book photo shoot on behalf of the brand. •Calypso saw increased traffic and revenue referrals from Pinterest in the six months leading up to the launch of the lookbook 15 15
- 16. Women’s Health is launching a •Women’s Health invites readers to create “Sparkling Summer” Pinterest boards incorpora<ng images from first-‐ever adver7ser campaign the adver<ser, Forevermark Diamonds on Pinterest. •While Pinterest doesn’t allow first-‐party adver<sing on its pla^orm, third-‐party publishers are finding crea<ve ways to work with adver<sers 16 16
- 17. “Try-‐Before-‐You-‐Buy” Augmented Reality Test Products Before Purchase 17 17
- 18. The key to a successful AR campaign is to deliver meaningful content for the customer* Augmented Reality has evolved Current AR applica:ons include: beyond stunt marke7ng to a -‐ Size figng for online shoppers valuable mechanism for brand -‐ Displaying product details alongside products to consumer communica7on. -‐ Rendering products in print catalogs in 3D Global revenues for AR apps are expected to reach $1.5 billion by 2015** * Bazaarvoice blog, January 30, 2012 ** Juniper Research’s Mobile Augmented Reality report, January 2, 2011 18 18
- 19. Bloomingdale’s launched •Bloomingdale’s transformed six window displays with interac<ve LCD screens, which allowed passersby to interac7ve window displays to virtually “try on” sunglasses allow users to try on sunglasses from the street. •Shoppers could turn their heads to view the arms of the sunglasses •Selected favorites were virtually submiced to the Sunglass Style Bar where a salesperson could close the purchase loop 19 19
- 20. One Nordic allowed consumers •One Nordic created an applica<on + “tracking marker” (available online, catalogue and in-‐store), to preview furniture op7ons in where users could take an image of their home and their homes through an AR the app would display the furniture on top of the app. marker •Users benefit from being able to see the items in real size, within the space in their homes •3D modeling enables a 360-‐degree view of the products 20 20
- 21. Product+ Extending the Brand Experience beyond Purchase 21 21
- 22. Brands have created digital layers of content, value and experience onto physical products, Brands are developing rich notably in the CPG, apparel and retail sectors, to digital experiences onto their increase and customize communica:on with products to con7nue the their customers engagement with purchasers. Digital experiences can entertain and/or provide further u:litarian value to foster brand loyalty 22 22
- 23. Nike+ launched an applica7on •As part of Nike’s global “Make It Count” campaign, Nike Mexico launched a Nike+ auc<on Facebook app, that converted sweat into where users could bid on Nike products with credits currency. earned as a result of their Nike+ data •Users earned more credits by running longer distances using Nike+, which tracks users’ runs through sports watches, iPods and smartphones 23 23
- 24. Johnson & Johnson launched •Johnson & Johnson launched an augmented reality app that overlays anima<ons of the Muppet an app that projects anima7ons characters onto its Band-‐Aid products of the Muppets onto Band-‐ Aids. •The app is only ac<vated once the camera detects the Muppet-‐branded app, tying product purchase into this digital delight 24 24
- 25. Crea7ve Loyalty Programs Reward Advocates through Social Media 25 25
- 26. Forrester cites loyalty programs as one of the reasons online spending will reach $327 billion in 2016, up 45% from $226 billion in 2012* Retailers are experimen7ng -‐ 12% of online shoppers belonged to loyalty with loyalty programs that programs, such as Amazon Prime in 2011, up reward consumers in 9% from 2010 unconven7onal ways. 61% of consumers enrolled in loyalty programs consistently patron the retailer * Forrester Research’s “U.S. Online Retail Forecast, 2011 to 2016” report, February 27, 2012 26 26
- 27. Plink reported increased AOVs • Plink reported that consumers using the pla^orm are spending 65% more than before at par<cipa<ng & in-‐store visits at par7cipa7ng brands while visi<ng twice a month instead of once brands. • Par<cipa<ng brands include Taco Bell, Burger King, 7-‐Eleven, Dunkin’ Donuts, Regal Cinemas, Arby’s, Quiznos, Red Robin and Outback Steakhouse • Arer an ini<al online registra<on process with their credit or debit cards, users receive Facebook Credits following qualifying retail purchases • Facebook Credits can be used to purchase virtual goods in Facebook games 27 27
- 28. Target is now Shopkick’s largest •Target has rolled out its Shopkick partnership to all of its 1,764 loca<ons in the U.S. retailer partner, rewarding in-‐ store consumers with a variety •Customers earn “kicks” by entering stores and of prizes. scanning products (e.g. electronics, toys) •Kicks can be redeemed for Target gir cards, Facebook credits + dining gir cer<ficates 28 28
- 29. Zynga teamed up with •The reward program links offline spending on American Express’s Serve pre-‐paid cards to in-‐game American Express to provide rewards in Zynga’s Farmville virtual rewards for purchases. •Purchases of specific offers will unlock more virtual currency in Zynga games 29 29
- 30. “Hyper-‐Localized” Shopping Personalized Content for Local Consumers 30 30
- 31. Consumers benefit from a more tailored shopping experience that highlights geographically-‐relevant data, including local Retailers are delivering targeted store deals and product availability informa7on to consumers, based on geographic loca7on. Retailers benefit from localized metrics and learnings, which can be leveraged for further personaliza:on 31 31
- 32. Sears launched •Sears is tes<ng local, personalized e-‐commerce in key markets through the launch of an online shopping SearsLocalAd.com, providing portal, allowing customers to preview local deals customers with access to local beyond those found in the print circulars and on deals. Sears.com •Shoppers can search their nearest Sears store and browse deals by department, brand or price •Shoppers can access stores’ real<me inventory to check product availability 32 32
- 33. American Express launched •American Express pushes daily deals offers through its exis<ng iPhone app to consumers based on their “My Offers,” which delivers purchase history and loca<on, differen<a<ng itself local recommended offers to from exis<ng deal providers like Groupon and consumers’ mobile devices. LivingSocial •Offers are ranked by relevancy (as determined by purchase history & loca<on) •The program, which incorporates offers with large merchants like Dunkin’ Donuts and Baskin-‐Robbins, and small businesses, launched first in New York and Los Angeles 33 33
- 34. Impact Leveraging 2012 Q2 Retail Innova<ons 34 34
- 35. Brands have successfully deployed tac:cs in a few select markets and started na:onwide implementa:on, strengthening confidence for Retail innova7ons experiments marketers are flooding the global market, providing a wealth of learnings. For brands without brick-‐and-‐mortars, there lie many opportuni:es to partner with retailers who are pursuing these tac:cs 35 35
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- 37. Tesco employed virtual window Tesco displayed clothing from its exclusive F&F collec<on through specially-‐decorated windows of its shopping to maximize the smaller London shops, where inventory and space are experience in its smaller retail challenged loca7ons. Users point their mobile devices at the store windows and view a virtual showcase of the F&F range on the catwalk Users purchase items on display via their smartphone 37 37
- 38. Retailers are taking a page from Gucci sales associates at select U.S., Europe and Asia loca<ons are equipped with iPhones so employees can Apple stores’ POS process and process sales from anywhere in the store implemen7ng mobile payments from anywhere in the store. Home Depot’s “First Phone” devices were rolled out in 2011 to nearly 2,000 of its stores. While the implementa<on was cri<cized by much of the staff, Home Depot intended the devices to provide real-‐<me data on sales, gross margin and inventory, and also to serve as a mobile POS, allowing purchases away from the checkout registers 38 38
- 39. Hellman’s delivered custom Hellman’s installed sorware in cash registers at 100 Brazilian supermarkets that recognized Hellman’s recipes to customers on their scanned products supermarket receipts. The sorware matched the scanned items against a database of recipe and delivered a custom recipe and cooking direc<ons on the receipt 39 39