The fourth industrial revolution involves technology convergence that is changing customer expectations and behaviors. Customers are increasingly curious, impatient, and demanding. They conduct more mobile searches for immediate purchasing options. Retailers need to shift from store-centered to customer-centered models to meet these changing expectations through digital transformation, agile operations, and using data and AI to personalize the customer experience across channels. Nordstrom has created a Chief Innovation Officer role to help evolve its full-line stores and integrate digital and mobile further to better serve customers. To succeed, companies must focus relentlessly on the customer through experience-based transformation and leveraging technology to scale customer-centric operations.

1. Build a Smarter Customer Journey
Redefining Shoppers Journey In
The Fourth Industrial Revolution

2. What is the fourth industrial revolution?Fourth Industrial Revolution

3. Technology’s Converging

5. Curious
Impatient
Demanding

6. Source: Google Data, US, Jan - Jun 2015 vs. Jan - Jun 2017.
+100%
best toothbrushes
+100%
best shower curtains
+150%
best umbrellas
+300%
best travel pillow
+110%
best olive oil

7. Curious
Impatient
Demanding

8. increase in mobile searches
for “where to buy (product)”
85%

9. Curious
Impatient
Demanding

10. increase in
same day shipping
searches
4x
Source: Google Data Jan - June 2017 vs. Jan - Jun 2015. US
increase in
travel searches for
‘today’ and ‘tonight’
150% increase in
‘open now’
searches
3x

11. Companies Have Fully Stepped Up To The Challenge

12. Amazon is on a whole new level

13. Shoppers Start Their Hunt With Digital

14. The Road to Shopper First Retailing
The evolving
storefront
Fully Digitalized
operation
Immersive
Intelligence
Org wide
Simplification
In-store drives half of
e-commerce sales and
vice versa
Provide an omni-
channel sales and
service
Use AI to provide the
best product
recommendations to
customers online store
and front liners
Simplify processes and
products to boost
productivity and sales

15. Retailers are behind in the race

16. Company 2006 2016 % Change
JCPenney 18.1B 2.6B 86%
Nordstrom 12.4B 8.3B 33%
Bestbuy 28.4B 13.2B 54%
Target 51.3B 40.6B 21%
Walmart 214B 212B 1%
Plummeting Market Value

17. Right Strategy
Company 2016 2017 % Change
JCPenney 2.6B 12.5B 380.76%
Nordstrom 8.3B 21.9B 163.86%
Bestbuy 13.2B 21.9B 65.91%
Target 40.6B 45.99B 13.28%
Walmart 212B 280.8B 32.45%
Amazon 355.9B 1TN 180.98%

18. Geevy Thomas Named Chief Innovation Officer
"Our new Chief Innovation Officer and his team will lead the most forward-looking
customer-centric effort that Nordstrom has taken on to date," said Erik Nordstrom, co-
president of Nordstrom. "Our business was founded and built over the years through our full-line stores, and
today they still represent the largest portion of our sales volume. However, the way customers are choosing
to shop in a more digitally-connected world continues to change, and we know we need to find ways for our
stores to evolve with them. This is a challenge, but we also see a tremendous opportunity to leverage our
stores in ways that will allow us to serve customers into the future better than anyone else.
Over the past few years, Nordstrom has worked to deliver a more seamless,
personalized and relevant shopping experience for
customers by enhancing its stores, Nordstrom.com site, and
Nordstrom app. The Nordstrom Innovation team will be tasked with helping the company ideate
how its full-line stores of the future will better serve customers through further integration of
digital and mobile.

19. Source: https://bit.ly/2O1O5CN
1. Understand the customer
2. Give the customer what she wants
3. Help her find what she wants quickly
4. Serve her needs both in-store and online
5. Deliver profitable results

21. Company 2006 2016 %
Change
2017 %
Change
Amazon 17.5B 355.9B 2347% 1TN 180.98%
“We will focus relentlessly
on customers”

22. 1
2
3
Customer centricity by improving the
customer experience
Digitize & simplify processes & customer
interactions
Turn data into insights & actions
Key Learnings

23. CX Transformation Always Start With The Customers
1. Siloed departments
2. Top down product decisions
3. Annual cycles planning
4. Traditional waterfall IT
5. Store based - KPIs
1. Organizational alignment
2. Data led product decisions
3. Shorter / Quarterly cycles planning
4. Agile dev-ops based approach
5. Experience based KPIs
Customer-Centered BusinessStore Centered Sales

24. We help our clients build smarter customer journeys through agile
transformation, scaleable CX operations and technology consulting.
Platform ProcessPeople
Disrupt. Or be Disrupted.
Agile TransformationScalable Operations Omni-channel CX

25. Invest In The Right Technology

27. Leverage Existing Process

28. Invest In Your People’s MQ.

29. 3 Things To Do Now
1. Be customer obsessed: Redefine the
shopper’s journey
2. Build a team Center of excellence /
organizational alignment / Bring in partners
3. Invest in the right technology to scale your
operations

31. Thank You!
pauline@afdigital.com
www.afdigital.com