Psfkfutureofretail2017slideshare 161108174615

@PSFK | #FutureofRetail
Transformation Strategies For Customer-First Business
SUMMARY PRESENTATION
THE
FUTURE
OF
RETAI L2017
REPORT

• 3 pillars for customer-first business transformation
• 10 trends defining the new retail landscape
• Exclusive interviews, insights and statistical support from leading
retail experts at Walmart, Marriott and Cisco
• 60+ examples of retail innovation from major brands and retailers
• Recommended strategies for employee empowerment, retail
technology and responsive operations
• Transformative retail scenarios to kickstart innovative thinking
The PSFK Future of Retail Report presents key strategies that retailers
and brands must take to create a customer-first organization that can
exceed the expectations of a new generation of shoppers. The 7th
edition of PSFK’s annual report provides an in-depth trends-analysis of
the retail landscape and delivers actionable strategies for an empowered
frontline, performance technology and responsive operations.
Download the Full Report at: psfk.com/future-of-retail
Access all Reports and Debriefs as a PSFK Member: psfk.com/membership
GET THE FULL REPORT
@PSFK
#FutureofRetail
Future Of Retail 2017 Report2

Piers Fawkes
Founder, PSFK
While every organization likes to think they strive to
embrace a customer-first philosophy, a plethora of
legacy systems and organizational behaviors build up
over time that reconfigure the corporation and prohibit
the dynamic behavior that emerging brands and
retailers display today.
This survey offers a framework that affects the whole
organization - because success needs to be everyone's
job. The Future of Retail 2017 report is our most
strategic to date because we believe that a fresh
approach is critical for, at the very least, survival today.
If retailers and brands are to build off of their legacy,
adapt to the market changes and thrive, they need to
see their shopper strategy as their business strategy
and their customers as their shareholders.
It's not that we need to throw away the stores, the sites
and the widgets that we have amassed and start afresh.
However, we do need to take a step back and work out
how these tools and assets can be leveraged as we
transform our businesses to deliver a customer-first
strategy that differentiates us from the market and
adds extreme value in the eyes of our customers.
About The
Report

Future Of Retail 2017 Report Structure:
Foundations For
The Customer-First
Business
4 Future Of Retail 2017 Report
RESPONSIVE
OPERATIONS
PERFORMANCE
TECHNOLOGY
EMPOWERED
FRONTLINE
4

01
Immersive
Training
Instating experience-first
education programs that
prepare associates for on-
the-job problem solving.
EMPOWERED
FRONTLINE
PERFORMANCE  
TECHNOLOGY
RESPONSIVE 
OPERATIONS
02
Networked-
Knowledge Exchange
Investing in fluid communication
platforms that allow employees to
share knowledge and streamline
interactions as they serve consumers.
03
Associate
Advocates
Equipping staff with the
resources and opportunities to
act as independent frontlines
of customer support.
04
Assisted Selling
Providing employees with
access to on-demand
information that reduces
friction in the purchase process.
05
Customer  
Relationship Dashboards
Organizing consumers’ preferences,
purchase history and behavioral data to
ensure consistent service across channels.
06
Frontline
Automation
Automating simple or time-
consuming tasks, freeing up
associates to offer a higher
level of customer service.
07
Data-Refined
Experience
Refining retail, production and
merchandising processes based
on collected shopper data.
08
Optimized Deployment
Adapting staffing and workflows to
fluctuating customer traffic, without
impacting background functions or
responsibilities.
09
Dynamic Supply
Chain
Creating a flexible supply
chain to optimize individual
orders and keep up with the
demands of the marketplace.
10
Last-Mile
Fulfillment
Leveraging real-time logistics
and third party services to
deliver products as quickly
and conveniently as possible.
BuildingACustomer-FirstBusiness

Information Silos Knowledge Networks
Out Of Stock Always Available
Customer Service VIP Customer
Sales Associates Product Experts
Major Shifts Defining Customer-First Business
Retail Transactions Brand Relationships
Intuition-Led Data-Driven
Bottom Line Consumer-First

Solve For The Customer
Drive Towards Transparency
Offer 360-Degree Support
Iterate Towards Improvement
Complement The Human
Touch With Tech
Invest In Time And Attention
Driving Customer-Focused Transformation

TRANSFORMATIVE
RETAIL
SCENARIOS
Inspired by the 10 strategies of transforming a
business into a customer-first organization,
PSFK partnered up with agencies around the
world to bring the future of retail into reality.
– Automated Shopper Aide
– AI Enabled Intuitive Customer Support
– Associate AI Assistant
– Gas Station Ordering And Delivery Service

LABS
@PSFK
#FutureofRetail
WW
LABS
CartMate
Challenge:
Big box retailers can seem overwhelming and generic
to customers. Aisles of products are designed for a
broad audience, but not for an individual shoppers.
Retailers are struggling to provide a true personal
shopping experience to every customer.
Solution:
CartMate is a self-driving shopping cart
controlled by an AI-enabled virtual assistant
which accompanies a customer during their
shopping trip. Based on the customer’s
shopping list, the cart suggests best routes
around the store, can access purchase history,
helps to discover new products and points out
savings and deals.
Concept created by:
dieste.com

When a customer arrives at the
store, CartMate automatically
connects to the shopper’s
device to gain access to the
customers shopping list and
uploads it to the system.
Based on the customer’s
shopping list, CartMate
optimizes a route through the
store for the shopper to follow.
Based on customer’s past
purchases, shopping list and
social media activity,
CartMate finds and suggests
deals and coupons that are
suitable for the shopper.
01
02
03
04
Once the shopping trip is
complete, items are tallied
and payment is processed.
There is no need to go
through the cashier line.
The customer can leave the
store without pulling out
their wallet.

LABS
@PSFK
#FutureofRetail
WW
Hear + Now
Challenge:
Regardless of vertical, brick and mortar retail
needs to improve its key point of differentiation
– personalized customer service.
Solution:
Hear + Now is an AI-enabled, in-ear platform
for retailers looking to enhance their customer
service. The Hear + Now system helps direct
Customer Service Representatives to where
they are needed most and supplies them with
on-demand access to inventory, product
information and supplemental opportunities
to cross-sell via e-commerce.
Concept created by:
carrot.is

A customer enters Roger’s
Department Store and wanders
over towards the Furniture
section. H+N’s eye-tracking
sensors in-store identify the
customer as idle or indecisive.
Tech: Motion sensors indicate
that she has been standing near
a product for a prolonged
period of time.
01
02
03
An associate gets a quick
notification in the H+N’s
earpiece; associate checks
H+N app on the tablet.
Tech: Earpiece is connected
to tablet via Bluetooth.
Notifications fire
simultaneously through
audio and visuals.
Associate taps the H+N’s
earpiece once to accept the
task. The H+N app on the tablet
directs associate to Furniture
Department to help the
customer. The H+N app pre-
populates with in-store offers
relevant to Furniture. The H+N’s
earpiece dictates one piece of
potentially valuable information
related to the department.
Tech: Custom algorithm sorts
through offers and information
relevant to Furniture. The H+N’s
Algorithm also cross-checks
notes and reviews from other
associates regarding which
offers or information have been
most receptive amongst store
visitors recently.
OBSERVATION AND
PREPARATION

Associate greets the customer,
who wants to know if they have a
Kingsley Leather Couch in brown.
Tech: H+N natural language
processor listens to specific and
common keywords used by
customers or sales associates. It
pulls up potentially relevant
information on tablet-based
conversations happening in the
immediate vicinity.
04
05
06
Associate taps the H+N earpiece and
asks, “Do we have the Kingsley
Leather Couch in brown?” If not, the
tablet will display alternative options
such as “buy online” or display other
locations with item in stock.
Tech: Earpiece tap overrides passive
listening and forces system to allow
associate to ask specific questions
about inventory. The system
increases speed by storing
information locally about store-
specific inventory, then quickly
moves to custom cloud configuration
for accessing inventory in other
stores or online.
Associate shares the info
with the customer who is
now considering
alternative products.
Associate asks the
earpiece for “similar
products.” The tablet
refreshes with new
product results. Associate
shows the customer the
Harrington Leather Couch
a few aisles away in brown.
It also suggests matching
coffee tables and
ottomans for upselling.
Tech: System taps into
previous eye-tracking
recordings to determine
which products frequently
capture the attention of
the same shopper.
Database compiles
probable alternatives from
past shoppers based on
length of time individuals
spent looking at similar
products.
INFORMATION
GATHERING

07 08
The customer is ready to purchase
but wants more information about
the product. Associate is trained to
ask questions that will spur the
customer to answer with keywords
that H+N will likely translate into
useful results on the tablet. As
associate continues to have a
natural conversation with the
customer, tapping into their own
knowledge and experience, the
tablet will deliver useful information
in real-time.
Tech: Continued use of natural
language processing. As associate
moves from one section of the
store to the another (for cross-
selling), beacons will trigger the
appropriate information database
to access. For example, as associate
walks from couches to tables, in-
store beacons will adjust his tablet
results appropriately.
The customer departs with
item. Associate double taps
their earpiece to leave notes
for database about the
product and questions
received. These notes rate
ongoing offers, log complaints
or suggest products that sell
well together.
Tech: Database compiles
associate’s feedback and
enriches recommendation
engine for next customer
engagement.
SELLING,
UPSELLING,
IMPROVING

LABS
@PSFK
#FutureofRetail
WW
The Imperceptible
Psychologist
Challenge:
LOEWE is a brand that is known for its anti-tech
approach to retail. With the rise of technology, how
can LOEWE enhance the customer experience in a
primal, emotively charged and personal way?
Solution:
Future House of Loewe stores are designed
around an invisible artificial intelligence
system. The technology enables staff to
understand, in real-time, how customers react
to the collection’s textures, forms and
artworks within the space, enabling a service
experience designed around a customer’s
psychological needs.
Concept created by:
weareyourstudio.com

When a customer walks into the LOEWE store, infra-red sensors track
their body language and movement, drawing insight into their present
mood and behavior. Floor staff are informed about the customer’s
emotions, giving associates the opportunity to build a service
experience genuinely in-tune with the customer’s state of mind.
The AI system will track customers’ facial expressions as
they encounter certain objects or art pieces around the
store. The staff can use this knowledge to facilitate
personalized recommendations and suitable advice.
MOVEMENT EXPRESSION

As customers connect and engage with the objects and surfaces in the
retail space, their temperature and heart beat are measured to gauge
customer interest. This informs staff about customers’ excitement for
specific items or art objects, leading them to share their intellectual and
cultural knowledge on specific items.
As a customer completes a purchase, they will receive a “Loewe Relic”,
a scholar’s stone that they can take home as a reward for their loyalty
The object is enhanced with a RFID tag. As the customer interacts with
the object using their smartphone, Loewe’s fashion shows appear to
stream from the stone via Augmented Reality assisted software.
CONNECTION REWARD

LABS
@PSFK
#FutureofRetail
WW
LABS
Delivered To
Your Pump
Challenge:
The gas station retail environment is not
structured to facilitate customer engagement,
many customers do no enter the store. How
can brands and retailers engage customers
and add value to the customer narrative?
Solution:
Customer wait time becomes an opportune
moment for retailers to provide their services.
A customer delivery service brings goods
straight to a customer’s gas pump. Gas station
customers can order products from an app
and get them delivered while they wait at the
pump, without ever stepping foot into the gas
station retail store.
Concept created by:
jwt.com/atlanta

While a customer is waiting at
the pump for their car to be
filled up, they realize they want
something to drink.
The customer opens the
Delivered To Your Pump
app and selects products
for purchase.
They add them to their cart
and complete the purchase.
01
02
03
04
As the customer finishes
their transaction at the
pump, a gas station
attendee brings the
purchases to the customer.

LABS
@PSFK
#FutureofRetail
About
PSFK Labs
PSFK Labs
42 Bond Street, 6th Floor
New York, NY 10012
PSFK is the world’s leading provider of innovation insights.
Since 2004, we have offered the tools, content and advice to
inspire creative professionals to make better products, services
and experiences.
Our daily business intelligence portal and newsletters help
members find and track new ideas that they can use in their
work. Our reports provide insights into trends driving creative
business and our audiences access thought leadership from
pioneers at our events. PSFK Labs, our consulting service,
provide corporations with trends-led strategy, concepting,
content and delivery.
Insights And Ideation Workshops
PSFK Labs’ workshop program informs and inspires
executives, integrating trend immersion, innovation
strategies and expert speakers to take teams from
emerging insights to future-forward ideation in a single day.
If you are interested in organizing a workshop, seeing a
presentation of this report, or understanding how PSFK can
help your team explore the white space wihin your industry,
contact us at sales@psfk.com

• 3 pillars for customer-first business transformation
• 10 trends defining the new retail landscape
• Exclusive interviews, insights and statistical support from leading
retail experts at Walmart, Marriott and Cisco
• 60+ examples of retail innovation from major brands and retailers
• Recommended strategies for employee empowerment, retail
technology and responsive operations
• Transformative retail scenarios to kickstart innovative thinking
The PSFK Future of Retail Report presents key strategies that retailers
and brands must take to create a customer-first organization that can
exceed the expectations of a new generation of shoppers. The 7th
edition of PSFK’s annual report provides an in-depth trends-analysis of
the retail landscape and delivers actionable strategies for an empowered
frontline, performance technology and responsive operations.
Access all Reports and Debriefs as a PSFK Member: psfk.com/membership
GET THE FULL REPORT
@PSFK
#FutureofRetail

PS FK ME MBER SHIP
PSFK is a business intelligence platform for creative
professionals. Since 2004, we’ve provided insights, research
tools, advice and immersive experiences to help our members
as they build better products, services, marketing and retail.
GET TRIAL NOW

Psfkfutureofretail2017slideshare 161108174615

More Related Content

What's hot

Viewers also liked

Similar to Psfkfutureofretail2017slideshare 161108174615

Recently uploaded

Psfkfutureofretail2017slideshare 161108174615