This document discusses how online and offline behaviours influence each other for today's consumers. It notes that most retailers are struggling to keep up with the pace of technological change and evolving shopper expectations. The key forces driving retail revolution are new shopper expectations informed by online behaviours, and the abundance of sales channels and devices shaping the new omnichannel shopping journey from discovery to purchase. It emphasizes that retailers must measure performance across all channels as an integrated ecosystem rather than in silos, and leverage mobile and location data to provide a consistent brand experience and personalized services.

1. UNDERSTANDING HOW ONLINE BEHAVIOUR
INFLUENCES OFFLINE BEHAVIOUR
KYLIE FUENTES
HEAD OF DIGITAL PRODUCT MANAGEMENT, WESTFIELD

2. RETAIL: REDEFINED
Today’s consumer is forcing retailers to rethink everything. But, making sense of it all remains elusive to
most… even the biggest & the best on the global scale.

3. THE DRIVING FORCES BEHIND
THE RETAIL REVOLUTION

4. TECHNOLOGY ADVANCEMENTS & ADOPTION
The change of pace is faster than most business can keep up, but the customer is left wanting

5. NEW SHOPPER EXPECTATIONS HAVE BEEN FORMED
Shoppers are bringing online behaviour into store, changing their assumptions about what
makes great retail delivery
SOURCING
24/7 ACCESS SPEED
CONTROL ABUDNANCE
INTERACTION
COMMUNITY
TRANSPARENCY
SOURCE: Cisco Business Consulting, Retail Group. May 2011

6. CONNECTED SHOPPERS: INFLUENCE & POWER
Word of mouth is stronger than ever, but now it’s fuelled by social platforms that give the consumer
huge reach potential. More influential than any brand message or advert.

7. MORE SALES CHANNELS THAN EVER
In-store, e-commerce, m-commerce, social commerce, subscription services, digital
downloads… Consumers have more choice, but the offering is usually fragmented.

8. OMNICHANNEL: IT’S INFLUENCE & PURCHASE
Most retailers are measure channel performance in silos. This underplays their value, not considering
the influence they have on driving sales across the total ecosystem. And the big game in town is still the
physical store.
1% AU RETAIL SALES DISTRIBUTION BY CHANNEL
4%
50%
45%
Online Only Store to Online (showrooming) Online to Store Store Only
Adapted from Forrester Research, 2012

9. IMPLICATIONS ON THE
SHOPPER JOURNEY

10. THE NEW SHOPPER JOURNEY
Mindset: I don’t know what I’m
looking for, but want to understand
Mindset: I know what I want, but
my options
am looking for the best solution for Mindset: I know what I want & where I
Needs: Inspire me & show me my needs want to get it, but I want an easy
what’s available purchase experience
Needs: Give me control & comfort
that I’m making the right choice Needs: Easy, fast & range of payment
options. Trusted & secure. Memorable
store experience & customer service
Discover
Search
& Find
Buy Mindset: I’ve bought my goods, but
I want convenient access to my
purchase
Needs: Hassle free fulfillment,
ability to track purchases, pick up,
delivery or hold. Accessibility
Relationship Acquire
Mindset: Make my next time better.
Needs: Know my needs & personalise
the experience to save me time. Give
me rewards for loyalty.
Use
Mindset: The product I’ve
purchased needs to meet (or
exceed) my expectations. I want to
validate I made the right choice
Needs: Product support, value
added extras, social sharing &
amplification

11. MULTIPLE DEVICES FUEL THE PATH TO PURCHASE
Your customers are exposed to a number of your channels. The challenge is providing a consistent brand
experience but ensuring relevant content & utility to suit the channel.
% of Shoppers
68.4%
NUMBER OF CHANNELS USED DURING
SHOPPING FOR FASHION
2002
41.8%
38.3% 2012
17.9%
9.8%
7.2%
9.3%
3.9% 3.4%
0.0%
1 2 3 4 5
Channels
Source: Conlumino

12. EXTENDED DISCOVERY, FASTER SEARCH
By the time the customer has reached the ‘search’ phase, they’re well informed & have considered their
alternatives. Product search needs to be fast, intuitive & as simple as possible. In-store & online.
Minutes
89 AVERAGE DURATION & LENGTH OF PURCHASE
PROCESS: DISCRETIONARY PRODUCT
Duration of Purchase Time Spent on
52 Process Purchasing
2002 0.5 days 83 minutes
2012 3.4 days 111 minutes
23
16
5 3
4 2
Discovery Search Purchase Acquire
Customer Experience Stage
Source: Conlumino

13. FOR RETAILERS,
MOBILE IS THE
LYNCHPIN THAT
BRINGS IT ALL
TOGETHER

14. MOBILE USAGE IS SKYROCKETING
Australian shoppers have adopted mobile technologies at a higher rate than most of their
global counterparts. YOY growth is still booming.
Source: Our Mobile Planet Australia, Think With Google 2012

15. IMPACT ON RETAIL IS HUGE
Australian smartphone users are actively searching for information about products &
services. M-commerce conversion is still relatively low, its main function is to facilitate
search & drive conversion to offline or desktop.
Australian Smartphone Users: What type of activity do you search for on your phone?
Source: Our Mobile Planet Australia, Think With Google 2012

16. MOBILE IS LOCAL
Mobile search is anchored in location. Omni Channel retailers are perfectly positioned to
take advantage of this opportunity, using mobile to drive in-store visitation.
Source: Our Mobile Planet Australia, Think With Google 2012

17. TABLET PROVIDES DIFFERENT UTILITY
Tablet combines the benefits of deeper richer experiences found on desktop with the
portability of mobile, creating powerful opportunities for retailers. In-store & out of store.
Source: Mary Meeker, Internet Trends 2012

18. UNLEASHING
THE POTENTIAL
WITH DATA

19. SINGLE VIEW OF SHOPPER
The holy grail of Omni Channel, it promises to unlock huge benefits for retailers. Both superior shopper
insights to fuel business strategy & greater ROI for marketing investments due to better targeting.

20. RELATIONSHIP: EXCHANGE OF VALUE
Not all shoppers want a relationship & not all retailers deserve one. Provide value for the shopper in
exchange for their data & make sure they understand it. There’s a fine line between relevant messaging &
invasion of space. Transparency & respect for the shopper is paramount

21. SHOPPER INSIGHTS & DATA APPLICATION
Review the historical, aggregated data to form deeper shopper insights & fuel future business strategy.
But just as importantly, integration into campaign management & content management platforms
delivers real time, personalised shopper marketing capability, which drives greater ROI
Looking back & trying to predict Moment of truth: Right message,
the future right time, right channel

22. THINK BIG, BUT START SMALL
Even the best of the best are grappling with how to sort & use their data set. But the ones
who are most advanced have a few things in common.
• Platform first. A central, scalable data warehouse
• Aggregate sales, customer & location data around a unique ID. Big effort but big returns
• Data without intelligence is useless. Analytics integration into campaign management systems
• Make it easy for yourself. Use the same customer credentials across channels if possible
• Start with what you have. Implement retargeting or trigger based programs
• Test & Learn. Test & Learn. Test & Learn

23. GEOLOCATION: THE NEXT FRONTIER
Location based data from mobile, WiFi & social will give retailers unprecedented ability to
influence at the moment of truth. Beyond purchase data, it’s the most important lever.
Location contextual offers & content
Location based services & utilities (including navigation)
Retargeting from online browse & purchase behaviour
Real time retargeting from showroom behaviour (while still in store!)
Notifications to sales staff for high value customer visits
Truly personalised in-store service
In depth understanding of customer instore behaviour

24. SIX OBSERVATIONS
FROM THOSE WHO
DO IT BETTER

25. 1. REFRAME THE MEASURE OF SUCCESS
Measure the performance of your ecosystem, not single channel revenue. Understand the value your
online channels play in influencing your offline sales channels. Create KPI’s to support & instill this
thinking into your organisation.
“For every $1 spent online influences
$5.77 in store”
Terry Lundgren, CEO Macy’s, Apple

26. 2. OPTIMISE YOUR MOBILE OFFERING
Take advantage of your web traffic by optimising for mobile. You don’t need to take your whole web
offering & mobilise it, but get your core information & location centric product search up and running.

27. 3. LET THE CUSTOMER DECIDE
Provide customers with the option to purchase in their channel of choice. Don’t force them to one or
the other, but make sure you have a presence where & when they want it.
“Physical stores are still the primary way
people acquire merchandise, and I think
that will be true 50 years from now”
Ron Johnson, CEO J.C Penny
ex SVP Retail Operations, Apple
Adapted from Forrester Research, 2012

28. 4. NOT ALL DEVICES WERE CREATED EQUAL
Shoppers use them in different ways along different stages of the path to purchase. Identify the role
each device plays for your consumer, then create content & utility to suit. Everything everywhere is
NOT the answer.
Discovery
Tablet offers deeper, richer browsing experiences.
Broad Find & Search
Desktop supports comprehensive search & product
comparisons
Buy
Local Find & Search
Mobile is out of home & in-store
Location based search &
navigation utilities

29. 5. LEVERAGE THE STRENGTH OF YOUR ASSETS
Converge the digital & physical experiences. Integrate across platforms to add value for your shoppers
& play to the strength of your channels.

30. 6. BE CLEAR ABOUT THE VALUE YOU PROVIDE
If you’re not 100% sure what value you bring to your shoppers, you can’t expect them to know either.
Don’t just venture into new influence or sales channels because you can, be clear about why you should.

31. IDENTIFYING SOME OF
THE ROADBLOCKS

32. WAITING FOR ENLIGHTENMENT
Many fall into the trap of wanting to have the perfect strategy, the final destination & the nirvana of
technology at their disposal. The longer you wait, the bigger the missed opportunity. The key is to get
in and try.

33. OVER-ENGINEERING YOUR DIGITAL CHANNELS
It’s tempting to come up with feature sets that address every single possible thing that could be of benefit
to your shopper. It’s MOST important you set your sights on the Minimum Viable Product that addresses
the CORE needs perfectly.

34. DEFINING SUCCESS AFTERWARDS
The key to getting your data & your channel strategy right is knowing what success looks like upfront.
Often key components for data capture & channel measurement are tacked on as an afterthought.
This usually leads to less accurate, more costly & more time consuming retrofits.

35. DROWNING IN DATA
Data overload leads to poorer, not better decision making. Make sure you’ve got the capability to fuel
your business by equipping the right people with the right information at the right time. Find time to
turn data into insights. If you don’t, you’re not taking advantage of the opportunity

36. INFLUENCE & SALES CHANNELS: MEASURE THEM AS AN ECOSYSTEM
RIGHT CHANNEL, RIGHT EXPERIENCE THROUGH THE NEW SHOPPER JOURNEY
MOBILE MERGES ONLINE & OFFLINE: BUT MOST RETAILERS ARE BEHIND THE GAME
CREATE AN EXCHANGE OF VALUE WITH YOUR SHOPPERS TO BUILD RELATIONSHIP
BESIDES PURCHASE DATA, LOCATION DATA IS KING
DON’T WAIT FOR PERFECTION. GET IN & LEARN