1) The document discusses how data is the bedrock of consumer experience and how retailers can use data to personalize experiences for shoppers. 2) It notes that high performing retailers are more likely than underperformers to prioritize data in key areas like governance, agility, and security. 3) The document advocates that retailers adopt three "shopper-first mandates" - make it fresh by constantly renewing offerings, be where shoppers are through omnichannel presence, and give shopping meaning through loyalty programs and charitable initiatives.

1. Stimulating Growth
Internationally
13th November 2018
Jamie Merrick
Director, Industry Insights & Strategy

2. But first…the context

3. 4 Disruptive forces
CONSUMER
TECHNOLOGY
COMPETITION
ECONOMIC

4. Data as the bedrock

5. 39 technologies (on average) for consumer engagement

6. THERE’S A SOLUTION TO A POOR
CONSUMER EXPERIENCE:
DATA
Awareness Engagement Personalisation Purchase Service
DATA
? ?? ??

7. LOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE
DATA
? ?? ??
IS THE
BEDROCK
OF CONSUMER
EXPERIENCE…
DATA

8. Especially in digital first shopping
SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE
Sources: NRF, Salesforce, IBM
Ecommerce
growth over
2017 peak
trading
period
18% 39%
Mobile order
growth YoY,
Q3 2018
Site traffic:
60% mobile,
30% computers
63% 2.5
Consumers are
creating 2.5
quintillion bytes
of data daily

9. The role of data is critical but not prioritised
SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE
Elite Performers: +10% revenue in the past financial year
Underperformers: flat or decreasing revenue in past financial year
SECURITY GOVERNANCE CULTURE INSIGHTS AGILITY
ELITE PERFORMERS VS. UNDERPERFORMERS
1.6x
more likely
2.3x
more likely
1.4x
more likely
1.3x
more likely
1.9x
more likely
2x
higher rates, on
average
Elite performers
focus on data at

10. Underperformers lag in 3 key areas
SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE
68% 63% 54%
Don’t have clearly
defined roles and
governance for
managing
consumer data.
GOVERNANCE
Don’t respond to
consumer demands and
insights in an agile
manner.
AGILITY
Don’t have rigorous
compliance and security
to monitor and protect
consumer data.
SECURITY

11. Data is critical for taking advantage of AI
SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE
Sources: PwC, Salesforce, Gartner
By 2030, global GDP
will increase 14%—
$15.7
trillion
— because of AI
AI is the
#1
technology
where marketers expect
to see the most growth
over the next two years.
By 2020,
of customer interactions
will be managed without
a human.
85%

12. Here’s the proof
We analysed data from …
150 million
shoppers
250 million
visits
$550 million
worth of
orders
320 million
shopper
clicks
to discover the impact of personalisation

13. Small share of website visits include a recommendation click
You may also like:
6% Visits
SHOP NOW

14. …but those visits with recommendation clicks are powerful
Reflects share of visits, orders, and revenue in which shoppers click or tap a recommendation.
37%
Revenue
You may also
like:
6% Visits

15. Recommendations create more engaged shoppers
4.5x Higher Cart Rates
4.8x More Product Views Per Visit
5x Higher Per-Visit Spend
Shoppers that click (or tap) a recommendation provide:

16. Working the channels

17. The Squeeze on the Legacy Retailing Model
Why do you choose to buy through a specific channel?
Customer service (57%)
Brands
Product quality (60%)
Product innovation (58%)
Product uniqueness (48%)
Marketplaces
Price (56%)
Product Variety (51%)
Product Availability (50%)
Inspiration (48%)

18. Be FreshBe Where I Am Give It Meaning
3 Shopper-First Mandates: What Shoppers Are Telling Us
Make It Fresh

19. Be FreshBe Where I Am Give It Meaning
3 Shopper-First Mandates: What Shoppers Are Telling Us
Make It Fresh

20. Connect to the shopper on their terms and context
Web Search
Online Marketplaces
Website
Social Media
Source: Global Consumer Survey. Six Countries. March, 2018 N=6000. Values may sum to >100% due to rounding.
Where are you
most likely to start
your hunt?

21. Mobile is the Source of Digital Growth
Analysis reflects Q1 2018 / Q1 2017, same-site activity
Computers | Tablets | Phones
Order Growth Traffic Growth

22. Benchmarks for mobile visits and orders
Source: SF Commerce Cloud Shopping Index Q3 2018

23. 83%
Used Mobile In-Store
(age 18-44, over the last 3 months)
47%
Research
Some shoppers conduct more than one above activity, thus
sum of activities is higher than the whole.
Age group: 18-44
27%
Buy
59%
Compare Prices

24. Shoppers prefer self-service
Self-Service
Always On – Mobile – Easy to Use
of customers attempt self-service
before contacting a live
representative
81%
Source: Harvard Business Review

25. From timeslot to timely

26. Be FreshBe Where I Am Give It Meaning
3 Shopper-First Mandates: What Shoppers Are Telling Us
Make It Fresh

27. Three Elements of Fresh
Constant
Renewal
Acting with
Urgency
Developing
Unique

28. Retailers and brands lose 2nd purchase to marketplaces
Q: Imagine you want to buy something you have never
bought before. Which would you choose: retailer, brand, or
marketplace?
Q: Now imagine that you like the product and
want to buy it again. Where are you most likely
to buy the next time?

29. A closer look: who is buying beauty from Amazon?

30. Ever-ChangingNew Urgency
32%
of product catalogues are new
on a monthly basis
75%
of site search queries are new
each month
Half of repeat buyers have
made a 2nd purchase within
16days
of initial purchase
Fast Fashion has given rise to ‘Fresh Retail’

31. UniqueCollaborations Limited
36%
Collaborations with influencers
or other brands
59%
Customized products
Make It Fresh with Exclusive Offerings
49%
Limited-edition products
Shoppers are more likely to buy if brands offer:

32. Make It Fresh…Collaborations and Custom
PUMA x M A C
Converse CUSTOM

33. Make It Fresh… through Customization and Personalization
#5 Overall Mystery Shopping Score, Top-3 for ‘Make It Fresh’
Customized Products
In-Store Stride Analysis

34. Be FreshBe Where I Am Give It Meaning
3 Shopper-First Mandates: What Shoppers Are Telling Us
Make It Fresh

35. ServicePurpose Loyalty
Shopper-First Mandate #3: Give It Meaning
45%
of shoppers are more likely to
buy from a brand that offers a
charitable donation
9%
of shoppers had participated in
a unique service experience…
… 74%
would do it again
66%
of shoppers prefer to buy from
a retailer that has a loyalty
program

36. of shoppers are more likely to
buy from brands and retailers
offering a charitable donation
with purchase.
45%
Among Millennials
and Gen Z: 55%
Among baby
boomers: 32%

37. Sephora blends loyalty and personalisation
• Capitalising on “beauty FOMO”
• Qualifies loyalty members for
valuable experiences, like samples
and events
• Deep personalisation (Colour IQ,
Skincare IQ, Fragrance IQ)
• Top-notch in-store app capabilities

38. Connecting Service, Marketing and Commerce

39. The cross-border opportunity

40. Where shoppers shop
Source: Global Cross Border Report 2018 (report link)

41. Most popular categories?
Source: Global Cross Border Report 2018 (report link)

42. Outside in
“The US is the largest export market for British online businesses and American shoppers
bought an estimated £12.5b of goods from the UK”
“China was identified as another key market for British-based online businesses, buying
products worth an estimated £5.7b”
All in the last 12 months
Source: Global Cross Border Report 2018 (report link)

43. Two way street

44. Research Deep Dive
Get the report now: sforce.co/renaissance

45. Research in full
Get the report now: sforce.co/getshopperfirst