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Denis Vuckovac, Researcher, Auto-ID Labs ETH / HSG
Omni Channel Consumer Empowerment
Strengthening the role of the consumer in an omni-channel world.
5th October, 2016
© GS1 2016 2
Auto-ID Labs: GS1’s research partner and focus on «Internet of Things»
• Auto-ID Labs are research partners
of GS1 and our research focus is
the “Internet of Things” in the
retailing context.
• Located at top-ranked universities:
- Cambridge, UK
- MIT, USA
- ETH + HSG, CH
- Fudan, CN
- KAIST, SK
- Keio, JP
• Links: www.autoidlabs.org ,
www.autoidlabs.ch
Sources: www.autoidlabs.org
© GS1 2016 3
Auto-ID Labs are GS1´s partner for IOT-related research
Auto-ID Labs ETH / HSG in Zurich
© GS1 2016 4
Not about a single transaction but building a relationship – learn and implement
Last Mile in eCommerce
Last Mile in Physical Retailing
• How much is shipping?
• How long does it take?
• Where is my customer?
• How expensive is it?
• Where can I get it?
• How much is it?
• Who is my customer?
• What does he want?
Custo
mers
Busin
esses
© GS1 2016 5
Get to know your customer in high-resolution (time + individual)
Time Dimension Customer Granularity
Weekly
Daily
Real-time
Store Avg.
Household
Individual
Level of Transaction Data Aggregation
© GS1 2016 6
Get to know your customer in high-resolution (time + individual)
Time Dimension Customer Granularity
Weekly
Daily
Real-time
Store Avg.
Household
Individual
Level of Transaction Data Aggregation
Industry Average
Situationof case study
Goal
© GS1 2016 7
Fast paced environment struggles with lost sales and no adequate loyalty solution
Research Partner Situation General Context
• Largest convenience store chain
• Reaching 10% of Swisspopulation daily
• Two key peak hours due tocommuting
• Waiting queues cause lost sales
• Swiss grocery chains achieve loyaltyprogram penetration >80%
• However: our partner hasno information on the averageconsumer and cannot learn individualconsumer’s preferences
• No way to link transactions
Source: Insights from industry partner; Coop Publication; Capizzi & Ferguson (2005)
Our approach: Mobile Self-Checkout as base use case for high resolution customer relationships
© GS1 2016 8
What do we know from today’s low resolution
Ø Items/ Basket
Ø Value/ Basket
1.7
7.5 CHF
Basket Stats Transaction Pattern
© GS1 2016 9
Traditional solutions won’t do it…
Physical Self Scan Terminal
Additional devices
Mobile scanning, but payment at terminal
Terminals
Many not intuitive nor advertised, little used
Only at regular PoS
Self Checkout Mobile Payment
© GS1 2016 10
…so we built our own…
© GS1 2016 11
… and run it “in the wild” at three pilot stores at Zurich main train station …
© GS1 2016 12
...to finally get to know the customers
Gender
Age 35-44 35-44 25-34 25-34 35-44
Train station
frequency4 4 4 3 4
Perceived
Lost Sales0 3 3 2 NA
Motivation Time saving Time saving Time saving Time saving
Buys what
Cold Coffee
Drink, Soft
Drink
Coffee to goCoffee to go,
SandwichSandwich Soft Drink
Buys when 07:55 05:53 08:05 08:08Morning/
Noon
© GS1 2016 13
Gender
Age 35-44 35-44 25-34 25-34 35-44
Train station
frequency
4 4 4 3 4
Perceived Lost
Sales
0 3 3 2 NA
Motivation Time saving Time saving Time saving Time saving
Buys what Cold Coffee Drink,
Soft Drink
Coffee to go Coffee to go,
Sandwich
Sandwich Soft Drink
Buys when 07:55 Uhr 05:53 Uhr 08:05 Uhr 08:08 Uhr Morning/ Noon
...to finally get to know the customers
© GS1 2016 14
But this is just the beginning…
Mobile Self-Checkout (Base Use Case that provides high resolution data)
Opportunity 3:Help them to
discover things!
Opportunity 1:Make them feel
special!
Opportunity 2:Engage them
more!
© GS1 2016 15
Opportunity 1: Make them feel special!
Mobile Self-Checkout (Base Use Case that provides high resolution data)
Opportunity 3:Help them to
discover things!
Opportunity 1:Make them feel
special!
Opportunity 2:Engage them
more!
© GS1 2016 16
Product King
Rivella Rot
Produktinformationen
Alternativen Empfehlen Punkte sammeln
Rivella Rot
Rivella
Von mir gekauft: 537x
Transmission of proof of purchase tokens to brandConsumer-
driven opt-in
Product King
Rivella Rot
Produktinformationen
Alternativen Empfehlen Punkte sammeln
Rivella Rot
Rivella
Von mir gekauft: 537x
Gratuliere! Du hast den Goldstatus
für Rivella Rot erreicht!
Zurück zum Produkt
Neues VIP-Level erreicht
How about a “frequent flyer program” for products?
Give them location-based product status tier levels!
© GS1 2016 17
Opportunity 2: Engage them more!
Mobile Self-Checkout (Base Use Case that provides high resolution data)
Opportunity 3:Help them to
discover things!
Opportunity 1:Make them feel
special!
Opportunity 2:Engage them
more!
© GS1 2016 18
Commuters have to commute back…
Number of Transactions with App during Weekdays
Average Number of all Store Transactions with App during Weekdays
We know they have more time on their way home, so how can we activate them?
© GS1 2016 19
Build a personal channel with a customer to reward and incentivise future behaviour
VABINGO
Bingo-like Gamification
Elements
Personalised Playing Field
Trigger new actions
Receive Rewards
© GS1 2016 20
Opportunity #3: Discover things!
Mobile Self-Checkout (Base Use Case that provides high resolution data)
Opportunity 3:Help them to
discover things!
Opportunity 1:Make them feel
special!
Opportunity 2:Engage them
more!
© GS1 2016 21
Find the newest, special issue or the coldest Coke in town
7°C
3°C
© GS1 2016 22
Auto-ID Labs ETH / HSG
Dr. Alexander Ilic, Director and Assistant Prof.
Denis Vuckovac, Researcher
+41 (0)44 633 84 09
www.autoidlabs.ch
ETH Zurich WEV G214
Information Management, D-MTEC
Weinbergstrasse 56-58
8092 Zurich