The document discusses digital transformation in the retail sector, focusing on how technology and customer engagement strategies can enhance the shopping experience. It highlights successful examples, such as Burberry's innovative use of technology for customer interaction and outlines emerging trends like mobile shopping and the need for flexible fulfillment options. Additionally, it emphasizes the importance of understanding customer journeys and adapting business models to meet evolving consumer expectations.

1. Rise to your challenges
in a digital world.
Future-Proof Your Business

2. Ruth Harrison: 30 year career in the retail industry
Specialities: Sales/ Marketing/ Operations/ Strategy/ Investment
Territories: UK/ Europe/ Middle East/ working knowledge USA & Asia
Experience: DVP & GM/ MD/ CEO/ CMO.
Companies: John Lewis/ HoF/ Estee Lauder Co/ Coach/ Selfridges
ABOUT THE PRESENTER

3. Premium Apparel
Customer Experience Cycle
Social Mediated Selling
Grocery
Big Data
PRESENTATION IN 5 PARTS

4. Premium Apparel all smoke and augmented mirrors
Customer Experience Cycle not the complete circle
Social Mediated Selling AKA ‘what the hell do we do now’?
Grocery who stole my market share?
Big Data the elephant in the room
PRESENTATION IN 5 PARTS

5. We examine the blue sky thinking that led to one of the biggest
retail success stories of the last 5 years and what innovative
trends in technology were identified and how these were
executed that led to a doubling in sales revenues and
trebling of net income between 2010 – 2014 at Burberry.
PREMIUM APPAREL

6. Technology enhancing
the customer experience
and adding value to
the bottom line

7. Retail of the future seemed
an unobtainable dream?
Interactive advertising
was the fiction of
movie makers.

11. Live catwalk shows filmed and
beamed instantly to store

12. Bringing the catwalk directly
into stores and simultaneously
on customers mobile devices

13. Making the runway a reality

14. Large screens magically
turn into mirrors

15. A digital app engages with
customers by recognising
pre-programmed information

16. Within beauty areas, multi-
functional screens show moving
content or changing imagery

17. Digitally-enhanced interactive
windows welcome shoppers
with style tips based on their
current outfit

18. 3M+ Facebook fans are selected
and invited to fashion shows
and special events in store

19. Constant customer engagement
via social channels

20. RFID continues to be
a trend, used to track
and release information

21. Your customised Trench –
ultimate personalisation

22. CASESTUDYCONCLUSION
Sales increase steadily over 5 year period
Net income shows slight dip 2012/2013
due to rising production costs softening
sales in Asia
Net income soars 27% in 2014 after
investment in Burberry World LIVE

23. Not since the
Industrial Revolution have
we seen such dramatic change
in the social landscape

24. We examine the steps to a seamless customer journey, what
should and could retailer be offering online and in retail stores.
How to identify the problems and the how to leverage existing
capabilities with enhanced technologies.
CUSTOMER JOURNEY CYCLE

25. Premium marketing directs customer to
company website to make a purchase -
becomes part of World of LOVELY BRAND
via registration mechanism through social
media platform such as Instagram #MYLB
Data mining social media data ‘likes’
and preferences enabled the brand to
connect with customers at point of
emotional engagement.
RIGHTPRODUCTASSORTMENTANDPREMIUMPRESENTATION

26. At this point the customer is disappointed that
the chosen item is out of stock - there is a risk
the customer will become disengaged and has
to hunt elsewhere for the item.
Customers have expectations of flexible
fulfilment – the traditional model does not
cater to this need or experience.
Adding option to Find Now offers choice
and continues to satisfy demand and maintain
engagement – enhancing the customer experience.
SURFACINGSHAREDINVENTORY

27. FLEXIBLEFULFILMENTOPTIONS
Adding geolocation
enables items to be
offered in nearest location.
Adding purchase options:
Buy and deliver anywhere
Buy and collect at store
Try before you buy

28. Adding virtual wardrobe increases customer engagement and builds advocacy
CONNECTINGWITHCUSTOMERSANDBUILDINGLIFETIMERELATIONSHIPS

29. ONE-STORE=RIGHTPRODUCTASSORTMENTANDPREMIUMPRESENTATION
Adapting assisted selling using
same website functionality and
flexible fulfilment supports a
One-Store operation and
offers customers options to
purchase items not available in
store or are not ranged in their
local retail outlet.
LOVELY BRAND

30. OFFERINGCHOICE-FLEXIBLEFULFILMENTMODEL
This single view of inventory
allows the customer to shop
between bricks and mortar
stores and online seamlessly:
creating a One-Store customer
experience, the option to
purchase in store or online
regardless of where the
browsing originated is
completely convenient for the
customer and is becoming an
expected norm.
LOVELY BRAND

31. By implementing shared
inventory (single view) the
business becomes more
efficient and the customer
experience is enhanced
unlocking capital and
improving B&M processes.
Right Product
Right Place
Right Price
LOVELY BRAND
SURFACINGSHAREDINVENTORY

32. BUILDINGLIFETIMERELATIONSHIPS
Creating wardrobes of purchased
items is an additional service, adds
to CRM and helps facilitate loyalty.
E.G: client A: single man registers
to World of Lovely Brand by
including functionality to add
other family members such as
partner, kids and home options,
this anticipates and directs
customer to curate a record of
purchases (lifestyle) and builds
loyalty.
LOVELY BRAND

33. ASSISTEDSELLINGMODEL
Data mining social media data
‘likes’ and preferences enabled
the brand to connect with
customers at point of
emotional engagement.
E.G partner browsing for
new baby clothes, brand
sends targeted marketing
and the cycle repeats
LOVELY BRAND

34. CUSTOMER EXPERIENCE VIA TRADITIONAL SILO MODEL
Marketing & PR
used to increase
brand profile
and drive traffic
to sales channel
Owned CRM
database and
inventory
management
systems and Mgt
Owned CRM
database and
duplicated
inventory stock
holding and Mgt
Additional
sales channel,
often with 3rd
inventory stock
holding and Mgt
MARKETING
RETAIL
STORES
ONLINE OUTLET

35. CUSTOMER EXPERIENCE SINGLE VIEW MANAGEMENT FRAMEWORK
MARKETING
Print/ Social Marketing
Facebook & Twitter build
relationships and aspiration
Instagram #MYLB directs
‘likes’ to sales channels
Instant purchase option
Engagement apps
INVENTORY MGT
Reduced stock holding
Single view of inventory
B&M support:
Right product/place/price
Reduced costs (markdown)
Improved margin
Single View Mgt
Marketing
Sales
Data Mgt
Inventory Mgt
SALES
Cross functional teams
Improved customer service
Buy deliver anywhere
Buy collect in-store
Try before you buy
Added service options/apps
In-store journey
DATA MGT
Single view of CRM
Instant trend analysis
Real-time analytics
Improved BI and
decision making

36. Reaffirm your customer profiles and preferences
Realign your model to fit and reflect these attributes
SOCIAL MEDIATED SELLING

37. PROFILE: WAR BABIES
• Digitally Unaware
• Health Issues
• Isolation
• Politically exiled
• Security Fears
• Regional Citizens
• Entrusting
• Digitally Illiterate
• Financially Prudent
• Isolated/ Decreasing Social Circles
• Politically Disillusioned
• Micro Economy
• Retired/ Reliant/ Proud
• Home Birds/ Local Citizens

38. Barclays Bank used Digital Eagles
campaign as perfect way to bring
tech capabilities and knowledge
and service to their older customers.

39. PROFILE: BABY BOOMERS
• Digitally Aware
• Health Focused
• Retirement/Financial Security
• Politically Motivated
• Security Concerns
• National Citizens
• Trusting
• Protective
• Providers
• Loyal
• Networked
• Macro Economy
• Corporate Employed
• Travelled

40. Aldi using humour and price
sensitivity to connect with customers
on every day item purchases.

41. PROFILE: GEN X
• Digitally Capable
• Financial Anxious
• Politically Inactive
• Security Concerns
• Geo-Regional Citizens
• Serial Employees
• Cynical & Cautious
• Providers
• Resourceful
• Networked
• Politically Disconnected
• Self Absorbed
• Corporate Employed
• Travelled

42. L’Oreal Campaign aimed at
Gen X uses celebrity to drive home
the message and I’m Worth It in
decadent 1980’s becomes
You’re Worth It.

43. PROFILE: MILLENNIALS
• Digitalised
• Community
• Socially Savvy
• Shared Success
• Political Activists
• Global Citizens
• Transparency
• Connected
• Advocates and Story Tellers
• Peer to Peer Endorsement
• Recreational Employees
• Micro Economy
• Transient
• Experience Seekers

44. ThoughtWorks worked with
Domino’s to create a device agnostic
HTML5 online system that reduces
the footprint of the multiple digital
channels, while bringing customers
closer to the ultimate pizza ordering
experience.

45. WAR
BABY
BABY
BOOMER
MILLENNIAL GEN
X
CONCLUSION
MIND THE GAP
TECH

46. Gen Z
This generation can write
their own programmes!

47. Who stole my market share?
GROCERY

48. UK GROCERY MARKET
• The big 4 have dominated the sector for almost 2 decades.
• Food standard scandals, price wars, fraud, aggressive supplier
agreements and write downs and losses have dogged the sector for
the past 5 years.
• Competition by way of new market entrants has eroded market share.
• Continued price wars has dented profits.
• Large scale store formats are no longer viable or sustainable.
• Lack of investment in customer experience.

49. THE SECTOR HAS BECOME CROWDED
• Strategy by big 4 has to date been catch up mode.
• Customers have opted for smaller store formats,
these are local, convenient and suit the time poor
customer.
• Population has grown older and local format has
become more popular.
• Clear everyday low prices has won over frequent
offers and deals with all demographics.
• Sales of small format/ product sizes and loose fruit
& veg and single ready meals have grown with
singles young and old.

50. EMERGING TRENDS
• Conventional Loyalty Programmes are dead, what next?
• Mobile as business diversification
• Mobile Scan & Go
• Subscription models

51. MORRISONS LOYALTY

52. TESCO LOYALTY

53. SAINSBURY’S LOYALTY

54. ASDA LOYALTY

55. SELLING MOBILE TECHNOLOGY

56. SAINSBURY’S MOBILE SCAN & GO

57. APPLE WATCH INTEGRATION
Ocado offers an Apple Watch
app that will allow customers
to shop from their wrists in
just 15 seconds with a
predicted list based on their
previous orders and delivery
times.

58. Big Data Analysis
• Uncovering the money pots
• Breaking down silos
• Continuous Delivery

59. UNCOVERING THE MONEY POTS

60. UNCOVERING THE MONEY POTS

61. BREAKING DOWN SILOS – IMPLEMENTING AGILE PRACTICES
Marketing & PR
used to increase
brand profile
and drive traffic
to sales channel
Owned CRM
database and
inventory
management
systems and Mgt
Owned CRM
database and
duplicated
inventory stock
holding and Mgt
Additional
sales channel,
often with 3rd
inventory stock
holding and Mgt
MARKETING
RETAIL
STORES
ONLINE OUTLET

62. THE CONSUMER JOURNEY
AWARENESS EVALUATION PURCHASE USAGE REPURCHASE ADVOCACY
• DIRECT MAIL
• PR
• PRINT/TV
• SOCIAL
• E-MAIL • E-BOOK
• WEBSITE
• WEBINAR
• BLOG
• SOCIAL
• SEO • E-COMMERCE
• IN-STORE
• CATALOG
• APP
• SALES
• SMS
• E-MAIL
• COMMUNITY
• SOCIAL
• FAQ
• E-MAIL
• DIRECT MAIL
• WEBSITE
• SALES
• COUPON
• E-MAIL
• REVIEWS
• COMMUNITY
• SOCIAL
• EVENT
Connecting the dots of his journey.You need to look at your customer & the touchpoints & look at retail holistically.

63. FUTURE-PROOF YOUR BUSINESS TODAY
• Technology products are customer engagement
tools or services consider these solutions
• Individual product solutions will realise potential
when they are part of a strategic plan.
• Technology is your ENABLER
• Focus your customer at the heart of your business
• Identify and solve your business problems

64. Why Now & Where to Start?
DIGITAL TRANSFORMATION

65. HOW NOT TO DO IT.
© 2012 Google Analytics

66. why does it matter NOW?
What makes digital transformation so important NOW?
* DCX - Digital Consumer Experience
Social business
connections alone are
not enough.
Social business helps flatten traditional
hierarchies by empowering employees to
connect, communicate, and collaborate
across traditional boundaries. But
without a vision for how to compete in
connected markets and how to create
value for a digital customer, social is not
the answer. When leadership recognizes
that existing business models, systems
and processes are ill-equipped to
respond without big changes, digital
transformation is inevitable.
Brands are out of touch
with digital consumer
behaviours.
Brands are out of touch with their digital
customers. Companies are boosting
technology budgets, but all is based on
assumptions and not from research into
the new customer journey. Brands lack
the infrastructure to support next
generation marketing efforts. Brands
have to start using insights stemming
from the new DCX* as the catalyst for
internal digital transformation.
Digital transformation
puts people at the centre.
Every business says it’s customer-centric.
Really? Leading companies put people at
the center of change. They start with
studying the data (digital footprints and
preferences) plus behavior to learn
where to prioritize technology, resources,
and investments. The case for urgency
is made in updating an antiquated
customer journey to a more accurate,
adaptive, optimized DCX.

67. 1
VISION &
LEADERSHIP
Digital transformation an emergent
movement, is not yet recognized as a
formal priority by most businesses.
This requires those leading to get a digital
transformation program in motion to
make the business case. But, the
business case needs more than evidence
or anecdotes; it needs a story and a vision
for what it looks like and what it delivers.
THE 3 KEY ELEMENTS
What makes digital transformation so important NOW?
2
THE
DCX
Digital customer experience begins with
research, studies behaviors and
expectations throughout every stage of
the customer lifecycle. With information,
digital transformation takes shape by
specifically aligning people, processes,
and technologies against goals to map an
effective journey for digital customers.
3
TRANSFORMATION
TEAM
Organizations form special teams to
bring people together to start talking
and put change into motion. These
teams go by many names: digital
circles, Centers of Excellence (CoE),
rapid innovation teams, digital
acceleration teams, and more.

68. KEy elements3 Key Elements for Digital Transformation
Vision &
Leadership
Digital
Customer
Experience
Digital Trans-
formation
Team

69. KEy elements3 Key Elements for Digital Transformation
Where are you?
Vision &
Leadership
Digital
Customer
Experience
Digital Trans-
formation
Team

70. DIGITAL TRANSFORMATION
KEY QUESTIONS
Digital
Customer
Experience
Vision &
Leadership
Digital
Transformation
Team
WHO
DRIVES YOUR
CHANGE
PROGRAM?
WHERE DO
YOU WANT
TO TAKE THE
COMPANY?
WHAT
DOES YOUR
DCX LOOK
LIKE?

71. THANK YOU
For questions or suggestions:
Ruth Harrison
rharriso@thoughtworks.com

72. LEAN ENTERPRISE
Barry O’Reilly