The Consumer Retailer Power Shift

THE CONSUMER-RETAILER POWER SHIFT

CAPITALIZE ON CHANGE AND OVERCOME 7 CHALLENGES TO DELIGHT THE NEW CONSUMER

Sponsored by

R E S E A R C H

2 The Consumer-Retailer Power Shift RTP Research

Executive Summary

Survey Respondent Demographics

Laying The Groundwork For Success

Why The New Realities Of Social Media Connection And Mobile Ubiquity Are Critically Important

Overcoming The 7 Key Challenges

Understanding The ROI Of Implementations

Creating Value In The Interaction For Both Retailers And Consumers

Budgeting To Develop Strategies Roll Out Programs And Train Resources

Cloud Technology Frees Resources For Business Improvements

Customer AdoptionEase Of Use

Understanding How The Consumer Will Interact With The Technology

Privacy Concerns

Consumer FatigueSaturation With The New Medium

Conclusion

About Junction Solutions and Retail TouchPoints

Tableof Contents

3

5

6

8

18

19

9

11

12

13

14

15

16

17

4


Leading retail organizations recognize that future success requires an evolution in how they think about and interact with the consumer This requires both a business strategy shift and a need for technology to support the requirements of the customer The new consumer wants engagement not just the capability to conduct a transaction They seek information connectivity and community through social media and mobile As a result shopping has become a richer experience involving concepts like transparency co-creation sharing personalization authenticity voice and the expectation of delight

The retail industry winners will not only recognize the shifts afoot but also proactively work to capitalize on these changes This white paper identifies seven key consumer touch point challenges facing retail today and discusses the steps necessary to manage and overcome them Highlights include exclusive survey results insights from industry leaders and real-world examples of retailers who have implemented winning programs to meet the challenges and position themselves for success in 2013 and beyond

Executive Summary The Consumer-Retailer Power Shift

Notable Survey Findings

714 of survey respondents currently use or are

planning to use mobile apps in the next 12 months and

229 currently use or plan to use mobile POS

Of those who are planning to add mobile apps

686 are integrating social media into their

mobile appsm-Commerce solution 543 are integrating a retailer loyalty program

800 are planning within the next 12 months to use social media to shape buying patterns and

consumer behavior 543 are planning to use

mobile apps for the same purpose and 286 cite m-Commerce use

With regard to leveraging social media channels

Facebook is primarily used for Marketing (771)

and Brand Building (629) Twitter 667

and 636 LinkedIn 240 and 360

743 cited the use of social media for Basic

Brand Awareness 600 for executing marketing

campaigns 457 for delivery of offers and

429 for gleaning demographicpsychographic data

429 said ldquounderstanding the ROI of implementationsrdquo is the greatest challenge This was

followed by 402 noting ldquocreating value in the interaction for both retailers and consumersrdquo


Sponsored by Junction Solutions and presented by Retail TouchPoints the Consumer-Retailer Power Shift survey included respondents representing a wide industry cross-section Respondent companies range from those with annual revenue of more than $500 million (343) to those with less than $1 million (314) Represented respondent vertical categories were Specialty Hardgoods (457) Specialty Softgoods (229) Big Box (143) Grocery (86) and Electronics (86)

Please describe your companyrsquos annual revenue

Less than $1 million

$1 million - $5 million





More than $500 million

6

9

32

9

9

3

34

Please describe your retail vertical

Big Box

Specialty Hardgoods

Specialty Softgoods

23

4514

99

ElectronicsGrocery



Retail companies preparing for future success and competitive advantage are recognizing the new reality of the omnichannel marketplace They are striving to deliver consistency and transparency across all channels and are implementing new technologies to do so particularly in the exploding areas of social media and mobile commerce

For many retailers the current state of their multichannel marketing capabilities is siloed and disparate A major challenge is to reengineer processes and procedures to better use new technologies in order to achieve the desired omnichannel visibility Given this reality it is no wonder survey respondents cited ldquounderstanding the ROI of implementationrdquo as the top challenge for retailers wanting to create and deliver new consumer-focused touch points


The elusive ROI continues to challenge retail organizations In a June 2011 report from The Aberdeen Group titled The State of Multi-Channel Retail Marketing 58 of respondents indicated that marketing ROI is critical to their cross-channel strategy yet only 20 of respondents admit they are able to quantify the impact of their cross-channel marketing

Aberdeen further reported that while the ROI issue remains of great concern retailers are now citing another top challenge the ldquodramatic shifts in the way consumers want to be marketed tordquo This finding further illuminates the central tenet of the Consumer-Retailer Power Shift survey that a power shift to the consumer has occurred It also involves the need for message consistency across all channels mdash whether it is brand price or promotion

The cross-channel consistency challenge is clearly presented in a June 2012 report from RSR Research When asked about the importance of cross-channel consolidation outcomes vs progress in achievement 100 of retail respondents cited the importance of the ldquocustomer shopping experiencerdquo yet only 32 cited ldquosynchronization done or in progressrdquo

The bottom line importance of aligning the customer shopping experience across all channels is captured in a quote from a CIO of a Tier 2 fashion retailer which was cited in the Aberdeen report ldquoCustomers that shop in multiple channels are five times more valuable to us than a single channel Therefore if we can build consistency across all channels customers will become more loyal to the brandrdquo

58 of retailers indicated that marketing ROI is critical to their cross-channel strategy yet only 20 of respondents admit they are able to quantify the impact of their cross-channel marketing

-Aberdeen

Cross Channel


If social media connection and mobile access can topple governments what does that mean for how these consumer technologies can affect brands Business transformation always has been the outcome of broader socioeconomic trends and values Consumers are in the process of transforming the relationship between society and business

Because of this legacy business systems which report historical activities are rapidly becoming obsolete New business systems based on real-time analytics that flow through all channels are now at the heart of a winning retail strategy These business intelligence systems are anticipatory They go beyond ldquowhat happenedrdquo to ldquowhy it happened and what is likely to happenrdquo These emergent real-time technologies help organizations become more knowledgeable more proactive more innovative more competitive and more successful


If you are planning to add mobile apps are you integrating any of the following into your mobile apps

M-commerce solution

Social Media 69

Retailer Loyalty Program 54

Instant Promotions for users to drive specific buying behavior 31

NA 11

Geofencing

(Please check all that apply)

Are you planning within the next 12 months to use any of the following to shape buying patterns and

consumer behavior(Please check all that apply)

Social Media80

Mobile applications54

29M-commerce 11

Loyalty program via mobile device or social media

51

6NA


How do you leverage the following social media channels

Donrsquot use today

6NA


Are you currently using social media for any of the following(Please check all that apply)

Basic Brand Awareness74

Execute Marketing Campaigns

60Deliver Offers

46

43Demographic

Psychographic Data29Customer

Segmentation

Customer Segmentation

Data Gathering Brand Building Marketing Selling Customer Feedback

FacebookTwitterLinkedInGoogle+Yammer

14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4


The emergence of social media and mobile connection as commerce drivers has given rise to the need for retailers to move beyond counting and tracking to engaging influencing measuring and reacting

Survey respondents ranked the most important challenges to ldquocreating and delivering a new consumer-focused touch pointrdquo

(Challenges are cited in order of survey responses highest percentage of retailers giving the challenge a score of 1 or 2 out of 7)


Rank the following challenges when it comes to creating and delivering a new customer-focused touch point ie mobile app mobile kiosk social media outreach

(rating of 1 or 2 out of 7)

Consumer adoptionease of use 26

Privacy concerns 23

Consumer fatiguesaturation with the medium 17

Understanding how the consumer will interact with the technology 23

Creating value in the interaction for the retailer and consumer 40

Understandingcommunicating the ROI 43

Cost to develop roll out and train resources 34


1 Understanding The ROI Of Implementations (429)

Retailers continue to be challenged to uncover the cross-channel ROI of marketing initiatives According to Aberdeen Grouprsquos The State of Multi-Channel Retail Marketing June 2011 report the ROI implementation challenge can be met by tracking campaign performance across all marketing channels in real-time Aberdeen reported that 42 of Best-in-Class retailers do this compared with 17 of all others

With regard to measuring social media 89 of CMOs tracked social mediarsquos impact by using standard web metrics such as site traffic page views and number of fansfollowers While useful there is no proven connection between numbers of fansfollowers and ROI As many as 61 of companies say their organizations are either poor or very poor at measuring ROI from social media according to the Internet Retailer The Value of Social Media Report

When it comes to measuring mobile ROI behavioral metrics become even more complicated because mobile is both a standalone channel as well as a companion one The most recent Foresee Mobile Satisfaction Index Study concluded ldquoUnderstanding the interplay and influence between and among channels becomes critical to maximizing the ROI of the mobile channel It is therefore an absolute necessity for companies to understand how their customers are using their mobile devices to connect with brands and companies and to create optimized web sites and apps for mobile devices Failure to do so is a lost opportunity to secure customer loyalty return visits positive word-of-mouth recommendations and revenuerdquo

Mobile penetration among US adult consumers has topped 100 mdash meaning there are more cellphones in circulation than people according to an OpenMarket study titled Mobile Best Practices for Retailers Shoppers are using their smartphones in-store to access product information reviews and inventory availability Realizing that inevitability retailers may want to take an ldquoif you canrsquot beat lsquoem join lsquoemrdquo mentality and provide access to wireless networks in-store At this point though only 19 of stores have wireless available for customers according to RSR Research in a May 2012 report

In-store wireless aside many retailers have successfully developed and executed strategic programs that have achieved significant returns on social and mobile investments

LrsquoOccitane a high-end beauty retailer continually tests personalization techniques and offers The brand reports increased loyalty and purchases by segmenting visitors and customizing e-Commerce experiences based on the consumersrsquo overall level of engagement and their unique ldquopath to purchaserdquo for the brand ldquoLrsquoOccitane tests a variety of personalization techniques for different customer segments running up to 75 different campaigns at one time according to Matt Kritzer Director of e-Commerce

While useful there is no proven connection between numbers of fansfollowers and ROI As many as 61 of companies say their organizations are either poor or very poor at measuring ROI from social media

- Internet Retailer


With regard to email marketing Kritzer stated ldquoWe never thought that ensuring consistency between email and the web site would make much of a differencehellipbut it definitely has had a tremendous impact on overall sales and conversions We have seen great ROI behind all the testing wersquove done and the general best practices wersquove developedrdquo

Independent and corporate Hallmark Gold Crown Stores invested in developing a retail customized marketing solution (RCM) in order to better target individual customers and boost ROI on its marketing programs Since its inception RCM has generated sales lift ranging from 25 to 250 depending on the promotional vehicle

Although RCM is an optional tool for store owners in 2011 98 of all Gold Crown store owners used RCM in some way ldquoIn 2011 the RCM program generated 45 million consumer contacts through postcards emails greeting cards and receipt offersrdquo noted Carlos Corredor Hallmarkrsquos Retailer Customized Marketing Manager This was a 14 increase over 2010

RCM is enabling Hallmark to reach its goal of acquiring a 360-degree view of its customers while providing results reporting and analysis DeAnna Blair Marketing Project Leader for Hallmark summarized

the RCM program success ldquoBy feeding the RCM customer contacts along with all other contacts into our Market Mix analysis Hallmark is able to measure the revenue and ROI generated by these retail-funded consumer touch points The data from RCM is facilitating a more effective view of customer loyalty Store owners can now assess shoppers by a number of attributes including dollars spent card and ornaments purchased number of transactions and average spend per transactionrdquo

ldquoWe never thought that ensuring consistency between email and the web site would make much of a differencehellipbut it definitely has had a tremendous impact on overall sales and conversionsrdquo

- Matt Kritzer LrsquoOccitane

LrsquoOccitane has reported increased loyalty and purchases by segmenting visitors and customizing e-Commerce experiences based on the consumersrsquo overall level of engagement and their unique ldquopath to purchaserdquo for the brand


Creating Value In The Interaction For Both Retailers And Consumers (402)2

Consumers want interactions to be relevant personalized consistent and also appropriate for the channel being used Every interaction contributes to how a shopper will feel and think about a brand In order to create valuable new touch points for consumers retailers must understand their attitudes needs and wants and have knowledge of the shoppersrsquo experiences with the brand Value for both parties is in the focus on making sure customers feel good about the company each and every time they interact

Testing and experimentation have always been important in gaining confidence about the effectiveness of new consumer programs Godiva Chocolatier offers a good example of this Following implementation of an optimized e-Commerce personalization solution allowing for testing content images and offers more quickly and seamlessly Godiva has benefited with a 15 boost in average order value (AOV) and an 18 increase in conversion rates By analyzing real-time click stream data Godiva can now successfully determine the impact of specific offers and incentives on various customer segments ldquoWe recognize that our customers are entrusting us with their personal preferences so when we use personalization respecting them is top of mindrdquo said Mahender Nathan Godivarsquos VP Direct

Godiva builds customer communication via email and chat Email is used for educating customers mdash especially loyalty club members mdash about new releases and company announcements After identifying and segmenting new and returning shoppers as well as loyalty club

members Godiva experimented by implementing email lightboxes on its home page These lightboxes invite new visitors to sign up for the email program and receive special offers ldquoWe were afraid that the lightbox addition would potentially drive customers awayrdquo Nathan said ldquoWith this test we were able to see in fact the exact opposite we saw a 1076 increase in email capturerdquo

Beyond the Rack is a flash sale eTailer that drives traffic and purchases by offering extreme discounts via timely sales and limited product availability The company has created a seamless browsing and buying experience by leveraging web acceleration and performance management solutions ldquoIn the flash sale space things need to be quick therersquos a limited amount of goods available for a short period of timerdquo noted Ted Guglielmi CTO ldquoWe have quickened our site load times by 20 leading to happier and more loyal customers We donrsquot want to frustrate shoppers by providing products they like but making the purchasing process so slow that eventually inventory is not available to themrdquo In discussing Beyond the Rackrsquos customer expectations Guglielmi noted ldquoWhether consumers are on PCs tablets or smartphones they are looking for reliability speed performance and for a consistent experience To us site performance mdash regardless of device being used mdash has to be equalrdquo

Following implementation of an optimized e-Commerce personalization solution allowing for testing content images and offers more quickly and seamlessly Godiva has benefited with a 15 boost in average order value (AOV) and an 18 increase in conversion rates

Following implementation of an optimized e-Commerce personalization solution allowing for testing content images and offers more quickly andseamlessly Godiva has benefited with a 15 boost in average ordervalue (AOV) and an 18 increase in conversion rates


Budgeting To Develop Strategies Roll Out Programs And Train Resources (343)3

More retailers are committing to resource training in an overall effort to improve the customer experience The most recent National Retail Federation (NRF) Retail Horizons study found that when it comes to strategic priorities talent management came in second only to leadership development as a key priority in 2012

The study also found that as customer-centricity has permeated retail organizations the tracking of customer satisfaction data is having a more direct effect on sales associate procedures (46) and store procedures (41) Five years ago 60 of executives used customer satisfaction data to drive pricing and assortment decisions Today only 9 make that the priority

Additionally Retail Horizons reported an increase in call center investment with 70 of eCommerce executives deploying funds to boost call center capabilities The study explained ldquoWhat used to be considered a back-office support is now seen as playing an important front-line role as well Today the call center serves as the face of the brand and is a primary touch point for many consumersrdquo More than three quarters (77) of participants indicated that they depend on call centers as a key source of customer insight an increase of 16 over 2011

Perhaps the greatest example of this focus is Zappos which has labeled itself ldquoa service company that happens to sell shoesrdquo The companyrsquos single-minded strategic focus on customer service has led to supportive policies such as requiring all employees no matter what functional responsibility to train and spend time working in the call center

Bon-Ton a menrsquos womenrsquos and childrenrsquos apparel retailer promotes effective chain-wide communications regarding new processes and procedures training programs and other business intelligence as essential to ensuring all team members are on the same page To that end the company has invested in a number of technologies that have increased productivity

ldquoWith the scattered long distance environment in which Bon-Ton operates we continually require instant communications across all departments and locationsrdquo noted Chris Sass Multi-Media Production Manager for Bon-Ton ldquoOur associates want the information and education available to them But if they have to struggle to get to it our communications battle has been lost These new tools bring cohesion and improved productivity and in the end help drive salesrdquo

When it comes to strategic priorities talent management came in second only to leadership development as a key priority in 2012

- National Retail Federation

Bon-Ton promotes effective chain-wide communications regarding new processes and procedures training programs and other business intelligence as essential to ensuring all team members are on the same page



The commitment to resource training must be balanced with the need for resources dedicated to strategy development and program rollout With the advent of cloud computing and SaaS the initial investment cost for technology experimentation has lowered dramatically freeing organizations to tackle a myriad of business challenges This is evidenced by the fact that a major finding of the Retail Horizons study involved a strategy shift from cost containment to growth acceleration

An example of the cloudrsquos efficiency is illustrated by the change in financial reporting implemented by The Container Store By leveraging cloud-based corporate performance management (CPM) solutions The Container Store has successfully eliminated the need for manual updates across cumbersome spreadsheets while lowering costs Because the company doesnrsquot maintain a dedicated team focused on financial planning it requires a solution that is easy to use for all team members

ldquoNow team members can roll out plans conduct expense planning and execute forecasts at any timerdquo stated Michael Lambeth Director of Finance for The Container Store ldquoWe have real-time consolidation where all our plans roll-up into a single view of the business Employees now access the platform directly through the cloud which is more

efficient and user friendly The solution doesnrsquot require any additional maintenance or manual updates by IT This not only makes our employeesrsquo lives easier but also means extreme decreases in costrdquo

By leveraging cloud-based corporate performance management (CPM) solutions The Container Store has successfully eliminated the need for manual updates across cumbersome spreadsheets while lowering costs


4 Customer AdoptionEase Of Use (257)

The good news with regard to this challenge is the fact that consumers have adopted new commerce channels (Internet social media and mobile) at a record pace They report great satisfaction with these technologies and are incorporating these touch points into their shopping behaviors more and more every day Consider the following Social technologies have found favor with consumers faster than previous technologies did It took 13 years for commercial television to reach 50 million households and three years for Internet service providers to sign their 50 millionth subscriber Facebook hit the 50 million-user mark in just one year and Twitter in nine months Sweeping cultural economic and social changes have accompanied this accelerated pace of adoption by the worldrsquos consumers according to McKinsey Quarterly Capturing Business Value with Social Technologies November 2012

With regard to mobile a Foresee Mobile research report published in January 2012 cited the following statistics

bull38 of all web shoppers have used a mobile phone to access a retail web site mobile site or mobile app

bull34 used a mobile phone to research products

bull19 of all web shoppers used their mobile phone to compare prices while shopping in-store

bull15 used their phone to make purchases

bull14 of web shoppers visited the mobile site or app of one of the top 40 eTailers and

bull10 used retailer-developed apps

The same report further stated ldquoGood experiences with mobile sites and apps have critical cross-channel impact Mobile shoppers who are highly satisfied with their mobile experience report being 54 more likely to consider that company the next time they want to make a similar purchase and twice as likely to buy from the retailerrsquos mobile channel againrdquo

Finish Line a sporting goods retailer is transitioning 638 of its stores to mPOS technology to provide mobile checkout With the implementation the company is striving to provide a seamless shopping experience for time-starved shoppers ldquoOur online and hyper-mobile customers are all about speed style performance and technologyrdquo said CIO Terry Ledbetter ldquoFor Finish Line mobile checkout and point of service are obvious enhancements for satisfying those needs This deployment is a foundational step to an ever-developing omnichannel experiencerdquo Following a successful trial and analysis of the mPOS solution from both a financial and a brand equity perspective Finish Line determined that offering mobile checkout in stores was ldquoa win for both our customers and the brandrdquo Ledbetter stated ldquohellip the simplest moments make the biggest impression on customers and mobility adds to the many ways we can delight our customersrdquo

Following a successful trial and analysis of the mPOS solution from both a financial and a brand equity perspective Finish Line determined that offering mobile checkout in stores was ldquoa win for both our customers and the brandrdquo said CIO Terry Ledbetter


Understanding How The Consumer Will Interact With The Technology (229)5

Retail brands are developing social intelligence related to how consumers are using new channels such as social media to evaluate their brands They are gleaning customer attitudinal and behavioral data by employing potent analytical tools to draw strategic meaning An important aspect of this perceived challenge is the fact that companies that are willing to engage customers on every level can achieve the understanding they seek more easily than ever before

One example outside of retail could provide insight for retail companies A McKinsey Quarterly article titled How Social Intelligence Can Guide Decisions explained how General Electric (GE) developed a program to gather ideas about a ldquosocialrdquo airplane GE offered prizes with Virgin Airlines for the best insights The company enlisted a community of 90000 people who follow GErsquos ecoimagination Twitter account and organized conversations using hashtags Over the course of two hours the global network produced thousands of ideas that had not been discussed or published elsewhere GE used the information to fine-tune its understanding of airline passengersrsquo expectations and to create new processes for injecting input into strategic planning and development

Another example of how retailers are learning about consumers interacting with technology is an innovative promotion launched by the restaurant chain Charleyrsquos Grilled Subs involving SMS text messaging The SMS-focused promotion ldquoCharleyrsquos Philly Steak Blitzrdquo offered consumers the opportunity to experience a digital football game Points were rewarded for every action and players also received an additional 100 points for every touchdown scored

In order to participate consumers received a unique entry code every time they completed a purchase By entering the number via text message and providing their email address consumers could experience the game ldquoWe wanted to run a promotion that was sports based infused gaming but still allowed us to drive traffic to our locationsrdquo explained Ben LaPlaca Creative Director of Charleyrsquos ldquoBy using SMS our on-the-go consumers can participate with our brand and interact with the contest helping us boost purchases and obtain data on our customersrdquo Charleyrsquos was able to extend the promotion to other channels such as social media to increase participation ldquoOur customers interact with us across multiple channels including email social media and mobile devicesrdquo LaPlaca said ldquoWe wanted to create a platform to tie all networks together creating unified in-depth customer profiles so we can monitor and interact with our customers based on their unique preferencesrdquo

Charleyrsquos Grilled Subs launched an SMS-focused promotion called ldquoCharleyrsquos Philly Steak Blitzrdquo which offered consumers the opportunity to experience a digital football game


Privacy Concerns (228) 6Obviously consumer privacy concerns are a function of the level of trust between the retail brand and its customers When asked about privacy policies 82 of retailers polled in the Retail Horizons study said they do not share specific customer information with other companies 100 of retailers believe that protection of customer data and employee data is ldquoimportantrdquo or ldquovery importantrdquo

It is notable that almost a quarter (228) of the respondents in the Consumer-Retailer Power Shift study mentioned this challenge because much of the discussion of privacy still really flies under the radar

But the growth of social media interaction has shone a light on mdash and elevated the discussion about mdash individual privacy The Pew Research Centerrsquos Internet and American Life Project published in 2011 postulates ldquoAs social media use has become mainstream activity there has been an increasingly polarized public debate about whether or not lsquoprivacyrsquo can be dismissed as a relic of the information agerdquo

There are two realities experienced by many in this debate 1) The argument that privacy is a relic points to the fact that if people are willing to share all kinds of personal data then they have undoubtedly abandoned any reasonable expectation of privacy however 2) On the other side privacy advocates argue that the consumer still cares about privacy but doesnrsquot understand enough about how data is stored used and shared To quote the Pew Study ldquoSocial Science researchers have long noted a major disconnect in attitudes

and practices around information privacy online When asked people say that privacy is important to them when observed peoplersquos actions seem to suggest otherwiserdquo

But consumers are exercising increasing privacy and reputation management decisions on social media sites According to the Pew Study in 2011 63 of respondents ldquounfriendedrdquo someone vs 56 in 2009 37 untagged photos vs 30 in 2009 and 44 deleted comments vs 36 in 2009 Also according to Pew the practice of ldquoGoogling yourselfrdquo has doubled in the last five years representing at least an aspect of curiosity and interest in knowledge of privacy

Retail organizations that are concerned about privacy should heed the words of Esther Dyson as quoted in the Pew Study ldquoWe need to stop talking about privacy and start talking about control over data mdash making detailed decisions about what gets shared with whom that more closely reflect the distinctions we make in offline liferdquo

100 of retailers believe that protection of customer data and employee data is ldquoimportantrdquo or ldquovery importantrdquo



Consumer FatigueSaturation With The New Medium (172) 7

Clearly most retailers are not overly concerned about this challenge given their recognition of widespread consumer adoption and satisfaction with the new social and mobile commerce channels Most leading retailers recognize that smart phones ubiquitous Internet connections connected brick-and-mortar stores and omnichannel consistency are all contributing to enriching shopper purchase paths Rather than problems with consumer fatigue with these technologies leading retailers understand that consumers hold new power to shop anytime anywhere they desire and they like it

Aeropostale a mall-based apparel retailer targeting teens has recognized the power of technology to enhance its customersrsquo shopping experience In October 2012 the merchant unveiled a new concept store featuring interactive fitting rooms and iPad self-service stations In describing the concept Anthony McLoughlin Senior Director of Interactive Marketing said the new store was developed to ldquoinspire a more solid emotional connection with our teen audience Our customers can use the iPad kiosks to build their own outfits and email their creations to friends family and themselvesrdquo

McLoughlin added ldquoWe want to be part of the conversations our target audience has online via mobile devices and in stores We also want to create relevant brand experiences for our customers To have that relevant and emotional impact on teens we needed to create a strategy and use technology that allows them to engage with us on their terms Wersquore not just using tactics to drive sales wersquore using strategies that are consumer-centric to drive engagement and eventually create brand ambassadorsrdquo

Social media presents retailers with a unique opportunity to connect consumers in a more intimate way To achieve optimal engagement brands must offer a variety of compelling content ALDO a menrsquos and womenrsquos shoe and handbag retailer keeps pace with and responds to consumersrsquo decision-making influences with a new social portal designed to generate and capture detailed customer feedback on a more frequent basis

Touting the hashtag ALDO40 in honor of the 40th brand anniversary ALDOrsquos campaign encourages social sharing of experiences and memories of well-established brand and products ALDO marketers and brand fans can access and post to Facebook and Twitter directly through the ALDO40 web site All social feedback is aggregated and published in real-time allowing the brand to participate consistently and promptly in social conversations and acquire information to help shoppers move through the decision-making process

ldquoConsumersrsquo passion for content and learning more about our brand and product line is really surprisingrdquo noted Vyara Ndejuru Director of Marketing for ALDO ldquoWe have learned a lot from the social space including how to inspire and be inspired by our customersrdquo

Aeropostale unveiled a new concept store featuring interactive fitting rooms and iPad self-service stations


Leading retailers recognize that creating a positive cross-channel shopper experience requires a new level of engagement and a renewed emphasis on forging better connections with customers Much of this work involves listening and responding to new consumer attitudes and behaviors and new technologies are facilitating this capability

Successful retailers recognize that the consumer-retailer power shift requires a company culture that is conducive to broad collaboration and sharing The company culture forms the brand that consumers can now touch in numerous ways Shoppers want brands to listen to them and respond accordingly Trust is the coin of the realm Word of mouth has always been considered the most effective form of advertising

The Consumer-Retailer Power Shift survey has uncovered the key challenges driving retail strategies in this new age of customer-centric retail Forward-thinking retail organizations are moving to overcome these challenges and will inspire other companies to employ similar bold thinking and bold action

In many ways delighting the new empowered consumer has never been easier Consumers want and expect to be delighted They want to be engaged with brands They want to create meaningful relationships All they ask is that retailers listen and respond to their changing wants and needs The tools to do this have never before been so powerful and so effective

Conclusion


411 Route 17S Suite 410Hasbrouck Heights NJ 07604

Phone 2012578528Fax 2012881071E-mail inforetailtouchpointscom

About Retail TouchPointsRetail TouchPoints is an online publishing network for retail executives with content focused on optimizing the customer experience across all channels The Retail TouchPoints network is comprised of a weekly newsletter insightful editorial blog special reports web seminars exclusive benchmark research and a content-rich web site featuring daily news updates and multi-media interviews at wwwretailtouchpointscom The Retail TouchPoints team also interacts with social media communities via Facebook Twitter and LinkedIn

About

About Junction Solutions With offices throughout the US and Canada Junction Solutions provides vertical-specific on-premise and on-demand software applications and services that help organizations enhance operational performance reduce costs expand delivery channels and strengthen relationships Built on Microsoft Dynamicsreg AX and designed specifically for Multichannel Retail Food amp Beverage and Distribution companies Junction Solutionsrsquo innovative offerings focus on enterprise resource planning (ERP) supply chain management (SCM) including demand order warehouse yard and distribution management human capital management merchandising order entry management call-center management eCommerce engagement and fulfillment The company was named 2010 Microsoft Dynamicsreg Retail Partner of the Year and has won numerous other industry awards For more information please visit wwwjunctionsolutionscom

9785 South Maroon CircleSuite 410Englewood CO 80112 USA

Phone (877) 522-6355Fax (303) 327-8804

E-mail infojunctionsolutionscomwww junctionsolutionscom


Executive Summary





Understanding The ROI Of Implementations

Creating Value In The Interaction For Both Retailers And Consumers

Budgeting To Develop Strategies Roll Out Programs And Train Resources


Customer AdoptionEase Of Use

Understanding How The Consumer Will Interact With The Technology

Privacy Concerns

Consumer FatigueSaturation With The New Medium

Conclusion

About Junction Solutions and Retail TouchPoints

Tableof Contents

3

5

6

8

18

19

9

11

12

13

14

15

16

17

4



































6

9

32

9

9

3

34


Big Box

Specialty Hardgoods

Specialty Softgoods

23

4514

99

ElectronicsGrocery











-Aberdeen

Cross Channel






M-commerce solution

Social Media 69



NA 11

Geofencing




Social Media80


29M-commerce 11


51

6NA



Donrsquot use today

6NA





60Deliver Offers

46

43Demographic


Segmentation




14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4









Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804




































6

9

32

9

9

3

34


Big Box

Specialty Hardgoods

Specialty Softgoods

23

4514

99

ElectronicsGrocery











-Aberdeen

Cross Channel






M-commerce solution

Social Media 69



NA 11

Geofencing




Social Media80


29M-commerce 11


51

6NA



Donrsquot use today

6NA





60Deliver Offers

46

43Demographic


Segmentation




14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4









Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804












6

9

32

9

9

3

34


Big Box

Specialty Hardgoods

Specialty Softgoods

23

4514

99

ElectronicsGrocery











-Aberdeen

Cross Channel






M-commerce solution

Social Media 69



NA 11

Geofencing




Social Media80


29M-commerce 11


51

6NA



Donrsquot use today

6NA





60Deliver Offers

46

43Demographic


Segmentation




14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4









Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804











-Aberdeen

Cross Channel






M-commerce solution

Social Media 69



NA 11

Geofencing




Social Media80


29M-commerce 11


51

6NA



Donrsquot use today

6NA





60Deliver Offers

46

43Demographic


Segmentation




14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4









Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804







M-commerce solution

Social Media 69



NA 11

Geofencing




Social Media80


29M-commerce 11


51

6NA



Donrsquot use today

6NA





60Deliver Offers

46

43Demographic


Segmentation




14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4









Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804




Donrsquot use today

6NA





60Deliver Offers

46

43Demographic


Segmentation




14 14

29

63

77

1715

33

18

67 64

12

44

2436

28

80

53

7

232323

3

92

04 4 4 4









Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804










Privacy concerns 23















- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804











- Internet Retailer

















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804


















































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804









































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804
































































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804





















































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804














































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804

































Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804


























Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804
















Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804







Conclusion





About



Phone (877) 522-6355Fax (303) 327-8804






About



Phone (877) 522-6355Fax (303) 327-8804


Documents

The Consumer Retailer Power Shift