The document discusses the future of retail and how understanding consumer behavior is key. It notes that consumers will be in control of when, where and how they shop. Retailers will need to provide excellent service, brand experiences, and find ways to build long-term relationships with customers. The world will become one large store, with consumers able to shop anywhere at any time.

2. THE FUTURE OF RETAIL
17.06.2011

3. “High expectations are the key to everything”.
Sam Walton

4. UNDERSTANDING
CONSUMER
SPENDING POWER

18. created by mind, designed by heart

19. UNDERSTANDING
CONSUMER
SPENDING POWER
To understand what moves a consumer
you have to think and act like one.

20. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

21. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

22. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

23. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

24. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
store experience
product experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

25. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
store experience
product experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

26. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

27. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

28. Driven by technology, the web, communities and the search
for ever-richer experiences, the world of shopping is
undergoing a sweeping transformation.

29. So let’s think less about real estate, prices, sales per square
meter 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.

30. • consumers

31. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

32. MOTIVE
Consumers are in control
They decide what to buy, where to buy it, when to buy it and
how much they want to pay for it.
Stores will be everywhere, everything will be available
to buy and everyone will be involved in the sale.

33. Imagine taking a picture of a pair of shoes, looking them
up on the internet, getting them shipped the next day,
trying them on in front of the mirror, taking a picture of
them and sharing them with all your friends.

34. MOTIVE
Consumers are in charge.
buy anything, anytime, anywhere
They decide what to buy, where to buy it, when to buy it and
how much they want to pay for it.

35. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

36. ORIENTATION
How will we shop tomorrow?
Where will we go for advice and where will we buy?
What service will we expect to receive?

37. Retailers become brands

38. ORIENTATION
Retailers become brands
Why do we love them?
We can build a relationship.
Consumers tend to distinguish themselves through brands.
Brands that stand for a certain lifestyle, quality, way of thinking or status.

39. status

40. ORIENTATION
Proposition
Retailers make promises.
Promises to inform consumers what they can expect from them.
However... future propositions will be determined by consumers.
The best proposition is the one consumers give to you.
You can adjust it, but they have the power (internet, social media) to
create a buzz you can never achieve on your own.

41. proposition

42. ORIENTATION
Channels
Retailers have much more opportunities to communicate with
(potential) consumers.
The only way to control your own message is to do this integrated.
One message, various channels
(store/website/webstore/social media/forum)

43. Multichannel. The entire world is a display.

44. ORIENTATION
Pre-view shopping
Some consumers do shopping research from behind the pc, others
do research in stores.
Retailers and brands need to be prepared to accommodate both.
And even more important...
different products categories require different approaches.

45. webstore
inform before you go

46. on-line assistance
ask questions

47. google places
visit before you go

48. what other people say
iens.nl -restaurant reviews

49. ORIENTATION
Service is the new selling
For consumers, time, convenience, control and independence are the new
currencies.
This need requires retailers to turn many of their 'campaigns' if not all
interactions with their customers into broader services.
A shift from 'broadcasting' to ‘assisting’.

50. It’s more effective and efficient to sell more to your existing customers
then to keep hunting for new customers.

51. From 'broadcasting' to assisting.

52. On-line personal shopping assistent
www.trunkclub.com

53. Selling the consumers ideal
Let customers imagine their ideal vacations by describing their desires in
terms of location, activities, length of stay and price. A network of approved
travel agents can react by offering customized trip itineraries around the
customer’s parameters.

54. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
store experience
product experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

55. STORE EXPERIENCE
Every store a flagship store
Give customers a reason to visit the store for reasons other than
making a purchase.
• Treat customer visits as an opportunity to tell the story of the brand
• Enable shoppers to discover new products
• Create an environment in which customers are encouraged to try products
• Treat the retail space as an educational environment, enhancing the pre- and
post-purchase experience

56. Extension of the brand - Apple store

57. Extension of the brand - Apple store
Clean designed interiors focus on developing a deeper
connection with customers through hands-on experiences and one-
on-one interactions at the genius bar with staff members.

58. Discover all our products - Free Record Shop
Create a digital database on-line in stores which enable
customers to browse through over 300.000 products.
Not in store? Then order on screen and get delivered at home within 24h.

59. Retail space becomes family entertainment hub - Disney Store
Get children excited about going to their stores by providing branded
activities and content that encourage families to remain inside the stores
longer or visit more often.

60. Fascinating cultural centre - National Geographic store
A not-to-be-missed travel destination and shopping hub.
Offers a totally new experience that entertains and inspires at the same

61. STORE EXPERIENCE
Complementary Curation
Retailers are augmenting their core offerings by bringing other relevant
brands and services into their stores.
• Feature likeminded brands alongside your own to create a perception
about your brand.
• Introduce complementary services to enhance your customer’s
experience and providing additional reasons for them to interact.

62. America Today - American candy and soft drinks

63. STORE EXPERIENCE
Tablet enabled experience
Leverage technology within the retail environment to provide customized
experiences for shoppers based on their particular needs
• Staff are freed from cash desk to interact with customers and transactions.
• Provide staff with the tools to easily access information within stores.
• Give staff an easy way to access previous shopping data purchases.
• Transparency by letting customers watch transactions on screen such as
inventory searches and checkout.

64. Mercedes-Benz - Dealers use Ipad on sales floor
The tablets will provide salespeople with instant access to marketing programs
for specific vehicle models, clear overview of available accessories and
increased speed and efficiency on the return of lease vehicles.

65. STORE EXPERIENCE
Modular interiors
Treat store fronts and interiors like stage sets, providing the opportunity
to continually reinvent the shopping experience
• Use store displays as a means of highlighting collaborations that enhance
brand perception and allow brands to share a point of view.
• Implement a flexible interior to allow the introduction of entertainment
experiences into the retail environment.
• Retailers that don’t have a flexible retail space can consider a pop-up
space in which their customers can test, trial, and be entertained.

66. Pop-up store - Nike London
Features 12 modular, wheeled units that resemble tiered stadium bleachers.
The benches can be used for seating during events or arranged to create multi-
level table-top displays for merchandise.

67. Pop-up store - Illy
Bringing that ‘Illy’ feeling to the customer.

68. STORE EXPERIENCE
Mobile stores
Areas of the local community could benefit from a mobile service offering.
• Provide customers with a feeling of excitement and exclusivity by notifying
them about new retail locations on a consistent basis.
• Deliver unique experiences based on a particular location or event.
• Engage your customers on their turf.
• Utilize a mobile retail presence as an extension of your physical space to
offer a curated, relevant selection of products and services

69. Go Burger Mobile Store - New York
The Go Burger Truck drives on the streets of Manhattan as a means of
promoting the food at its soon to open chain of restaurants by the same name.
The truck operates around the city seven days a week, tweeting its location to
customers who are fans of haute burgers, hot dogs, fries and shakes.

70. STORE EXPERIENCE
Show and share
Social networks and connected instore appliances enable shoppers to receive
real-time feedback from friends and like-minded fans.
• Add wireless internet access to the store, enabling customers to share
information with their network that is validating their purchase.
• Include social networking into your retail site, allow sharing.
• Provide the tools for consumers to capture and share pictures and
experiences in the retail environment.

71. Store camera connects to Facebook - Diesel store

72. Go try it on community
Ask online community for advice

73. Share - over 3 million people like it

74. motive orientation
need brand(s)
want proposition
occasion channels
impulse price
service
location
consumer
moments of truth
product experience store experience
store mechanics
enjoying the product
visual merchandising
using the product
product
giving the product
service
service
promotions
other

75. PRODUCT EXPERIENCE
Keeping customers close
Most important thing for the future is building a long lasting relationship
with your customers.
As said before...
It’s harder to gain new customers then to keep the old ones.

76. PRODUCT EXPERIENCE
Keeping customers close
After the purchase we have to stay in touch with our customers.
• Give them a platform to review and share (positive or negative).
• Give them a reason to come back to your store (on- and off-line).
• Innovate your products to tell them something new.
• Create new user moments.
• Cross and upsell like crazy.
• Create brand friends.
• Always avoid discussions with customers. Remember, they have the power.

77. customer platform
share experience, review and interact

78. Reason to come back
Sears VIP night family and friends

79. Innovate your products
Always something new to tell

80. Create new user moments
Always something new to tell

81. Cross- and upsell
purchase more, upgrade, consume!

82. Create and stimulate brand friends
the best ambassadors ever

83. Customer is king
never argue with a customer

84. KEY FINDINGS
• Increased access to the mobile web is freeing the retail experience from
the confines of the physical and traditional online environment, allowing
shopping to take place virtually anywhere.
• Creating a flexible in-store environment through design, product
offerings and promotions, ensures that each visit will feel like a brand new
experience.

85. KEY FINDINGS
• In a connected world where access to information is fluid and transparency
is the expectation, retailers must actively take part in the conversation,
otherwise their customers will do so without them.
• Physical stores still provide the best means to communicate with customers
and offer a brand experience.

86. In the new customer-centric approach to retail, retailers
need to continually find ways to lower barriers to purchase
and be prepared to make a sale whenever and wherever a
customer is ready...

87. UNDERSTANDING
CONSUMER
SPENDING POWER