From Innovation To Execution: Best Practices For Retailing In The Age Of The Customer #RIC15

From Innovation To Execution: Best Practices For Retailing In The Age Of The Customer Adam Silverman, Principal Analyst

June 17th, 2015

@AdamKSilverman

© 2015 Forrester Research, Inc. Reproduction Prohibited 3

“The pace of change is accelerating faster than anticipated a year ago.”

Blake Nordstrom, President of Nordstrom

April 2014


Mobile connects us wherever we go

Base: 38,146 US online adults (18+) who personally use a smartphone to go online *Base: 23,511 US online adults (18+) who personally use a tablet to go online Source: Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2014

98% of guests shop digitally

Source: http://www.mytotalretail.com/article/inside-targets-digital-revolution/


Agenda

›  The Emergence Of The Connected Customer › How Digital Technology Creates

Opportunities In Retail › Recommendations


Where the transaction occurs is irrelevant


of store sales are influenced online

52%

Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, The State of Retailing Online 2015. Base: 41 retailers. media.pathfinder.gr/cman_img_f/9549445219531437587.jpg

of online sales now from mobile & tablet

28%

© 2015 Forrester Research, Inc. Reproduction Prohibited

73% - expect to click and collect 86% - expect to return online orders in the store 89% - expect to view the in-store inventory of products online

Customers have high expectations when it comes to channel integration

A commissioned Forrester study with Purolator, May 2014


won’t buy in-store 1/4

Source: North American Technographics Retail Survey 2013



12%

15%

15%

17%

17%

18%

19%

20%

22%

24%

To check availability of a product To read customer reviews of a product

To access my shopping list To access the Internet via guest Wi-Fi

To locate a nearby store or to check store hours To take picture of a product to share with friends

To look up product information To find or redeem a coupon/coupon code

To research a product To compare prices

In the PAST 3 MONTHS, have you used your cell phone for any of the following while shopping in a physical store

Source: North American Consumer Technographics Retail Survey, 2014. Base : N=4,814 US Online Adults 18+ (Weekly or more) who are cell phone users

Customers research product in-aisle

Source: Forrester’s North American Consumer Technogrpahics Retail Survey, 2014. Base 5007 US online adults. Base 1156 online adults who have used their phone in-store to compare prices in the past three months.

Customers research product in-aisle



Source: Forrester’s North American Consumer Technographics Retail Survey 2014. Base 5007 US online adults (ages 18+)

Digitally enabled associates add value


Digitally enabled associates add value

Forrester’s North American Consumer Technographics Retail Survey, 2014

Source: Forrester’s “Manage The Cross-Touchpoint Customer Journey” report


In-store data capture has skyrocketed

Sources: RetailNext


of enterprise data in used for analytics

12% Only

Sources: Forrester’s “The Forrester Wave: Big Data hadoop Solutions, Q1 2014” report


45% of consumers have chosen, recommended, or paid more for a

brand that provides a personalized service or experience

Sources: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2014


Personalization is coming to the retail store


Agenda

›  The Emergence Of The Connected Customer › How Digital Creates Opportunities

In Retail › Recommendations


Source: April 16, 2014 “Understand The Digital Business Landscape” Forrester report

The Future Retailer Requires Mastery Of Digital Business


Digital Creates New Opportunities by:

1.  Enabling new insights 2.  Optimizing profitability 3.  Empowering employees 4.  Improving service levels 5.  Influencing sales 6.  Bridging the physical with the digital 7.  Personalizing the shopping experience

Operational Excellence

Customer Experience


1. Enabling new insights


2. Optimizing profitability


3. Empowering employees


4. Improving service levels

Promises delivery two full

days quicker than before


Source: POPAI

82% make purchase

decisions in-aisle 5. Influencing sales


6. Bridging the physical with the digital


7. Personalizing the shopping experience


Four Key Barriers Hold Back Innovation


Poor store connectivity prevents modern retail apps from being effective

#1


Retail store systems are focused on record keeping and not engagement

#2


Existing systems can’t provide real-time data insights across all channels

#3


Retail teams are still siloed

#4

The Digital Store Platform Emerges

The Digital Store Platform Emerges


Agenda

›  The Emergence Of The Connected Customer › How Digital Creates Opportunities

In Retail › Recommendations


Your Roadmap To Building Your Future Retail Store:

1.  Expose inventory visibility 2.  Align your teams around the customer 3.  Drive towards a single view of the customer 4.  Prepare for real time data driven business – online & stores 5.  Optimize customer and staff mobile experiences 6.  Leverage location context 7.  Build your digital store platform

forrester.com

Thank you

Adam Silverman 415.294.8177 [email protected] @AdamKSilverman

#RIC15