Using Digital in Retail

Digital in Retail: The Exeter Experience

James Moffat, Organic Development

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Retail: whats the deal?

Digital Tactics for retail: what to do?

AR and augmenting the experience?

A strategy for success: The 10 point action plan

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Mobile: why is it important?

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Time we spend shopping….

8.9 Billion hours per year in UK

182.5 Hours/person/ year

49 million 16 plus adults in UK Stats from the ONS

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The state of retail in the UK… (08 to 09) Source: ONS

UK Retail employment

Down

145,000

UK Retail Outlets

Down

100,900

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Retail Sales Index Sept 2010

0.5% Growth year on year for September

British Retail Consortium

‘The market scraped margin growth in 2009 and I see a low growth envoronment here to stay. The combination of a weak economic outlook and a changing consumer means the industry is at a key inflection point as it re-aligns itself to a new reality . What growth there will be will be absorbed by online. Like for like sales will thus dip in and out of negative territory on a monthly basis’

KPMG Retail Think Tank, Feb 2010

Low growth here to stay….

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Shoppers are tuning out. Worse, they are exhausted by their shopping experience when they should be energised. That’s what happens when you force

shoppers to think about getting low prices when what they want it to feel good about what they are buying.

Al Wittemen – MD Retail Strategy, Advantage Retail

Shoppers are turning away from retail

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B2C Ecommerce Sales growth in Europe, 2006 to 2011, Billions, USD $

2006 2007 2008 2009 2010 2011

132.90 $

196.90 $

255.70 $

307.10 $

357.40 $

406.80 $

Billions, USD $

2006 2007 2008 2009 2010 2011

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Estimated growth in the next 5 years

10% Per Year

Predicted US retail growth 2010

2.5%

11%Predicted E-Retail growth in 2010

E-Retail – the key to growth

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Good News: The bulk of retail shopping still takes place in store… but now is the time to act!

Infogrpahic by milo.com

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Solution: Integrate digital into your retail experience

Benefits of E-Commerce• Research and Learning• Better Choice• Time Saving /

Convenience• Empowerment,

Customer feedback

Benefits of High Street• Immediacy of purchase• Tactile experience• In-store experience• Sales Assistance

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Customer feedback


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Take Away:

Integrate

Digital Tactics Into your

Retail Experience

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Reach: Important channels

Features of Mobile

Smart mobile market exploding

Rich media in your pocket

Powerful software = Apps

Geolocation technology

Real time communication

Still a tool for SMS, phone and MMS

Further development of bluetooth style direct messaging

The importance of mobile

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Mobile is a fast emerging set of channels

Reflects traditional channels but raises some issues

Small screen

Touch screen

Use of SMS and MMS for CRM and servicing customers

Further Development of bluetooth style direct messaging

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Reach: Important channels


Mobile is a fast emerging set of channels

Reflects traditional channels but raises some issues

Small screen

Touch screen

Use of SMS and MMS for CRM and servicing customers

Further Development of bluetooth style direct messaging


Take Away:

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The Future of the internet is….

MOBILE

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AR and augmenting the experience


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3 toptips

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1.listen

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1. Listen

WHERE ONLINE AGE

MOST INFLUENTIAL

SENTIMENT

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Listening

2REPUTATION!

REPUTATION!

REPUTATION!

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Reputation

PREDICTION…

In the future you will not be able to sell product, run a business or provide a service if your reputation is poor and

you do not listen to customers!

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engage3.

Reward customers for checkin...

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1. Claim you venue… Claim you venue….

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How do you reward your customers?

1. Mayor Specials: • Unlocked only by the Mayor of your venue.

("Foursquare has deemed you the Mayor? Enjoy a free order of french fries!")

2. Check-in Specials:• Unlocked when a user checks in to your venue a certain number of times.

("Foursquare says you've been here 10 times? That's a free drink for you!")

3. Frequency-based Specials: • Are unlocked every X check-ins.

("Foursquare users get 20% off any entree every 5th check-in!")

4. Wildcard Specials: • Always unlocked, but your staff has to verify some extra conditions before

awarding the Special.("Show us your foursquare Swarm badge and get a free drink!”)

How do you reward your customers?

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Statistics Interface

• Most recent visitors• Most frequent visitors• The time of day people check in• Total number of unique visitors• Histogram of check-ins per day• Gender breakdown of customers• Portion of foursquare check-ins

broadcast to Twitter and Facebook

• Always adding more

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Foursquare is not the only way to engage online…

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WARNING…This kind of media can be addictive.

Social media can be time consuming.

Limit your time to a maximum of two hours per week.

Engage with people directly

• Build you reputation• Build advocacy • Reward your best customers

Listen

• Understand who is talking, where and what about

• People will tell other people what they think before they tell you • Make sure you know what people think of you

Watch your Reputation

Take Away:

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So what should you do about it?



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Shoppers are tuning out. Worse, they are exhausted by their shopping experience when they should be energised. That’s what happens when you force

shoppers to think about getting low prices when what they want it to feel good about what they are buying.

Al Wittemen – MD Retail Strategy, Advantage Retail

Shoppers are turning away from retail

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Estimated growth in the next 5 years

10% Per Year

Predicted US retail growth 2010

2.5%

11%Predicted E-Retail growth in 2010

Integrate Digital into your retail experience

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Customer feedback


OKAY SO WE CAN DO THIS ONLINE, BUT HOW DO YOU DO THIS IN STORE?

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What is experiential shopping?

Apple:

• A place for knowledge and service

• A 50/50 split between these

• Come to shop, return to learn

• Ave US earnings per sq ft per year?

$4032

Saks 5th Avenue: $362

Source: Douglas Smith, Holy Tornado Ltd

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What is experiential shopping?

the ultimate retail experience

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‘Layering information, tools and resources over the real world we inhabit to make it easier to understand or to

enrich our experience.’

EG Sat Nav, Google Maps, Layar

What is Augmented reality?

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What does AR look like?

It allows you to overlay information onto the real world

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Bringing AR and Experiental marketing together

• Finding your location• Google maps• Layar

• Finding a way around a large store• Finding an In-stock product and ordering it

• Argos App• Identifying where to buy a product you see

• Amazon photo recognition• Assisted selling

• Mobile assistants• Integrated video• Smart Mirrors

• Smart checkout and payment• Trying out products not in stock • Relationship management

• Recognising customers

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So what should you do about it?



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A Strategy for Success: Your 10 point action plan

ACTION THREE

Work out who your customers are and where they are online Work out how they use technology at the moment and in the future

ACTION ONE

Start with your business goals: What it is you are trying to do Work out what it is you need to do in order to meet these goals

Work out how you can use digital to improve your retail experience This goes for the instore experience as well as the out of store experience

ACTION TWO

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ACTION SIX

Start engaging directly with people online and through apps

ACTION FOUR

Start getting familiar with mobile apps Try out FourSquare

Listen to what you customers are saying abut you Start to monitor and manage your reputation

ACTION FIVE

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ACTION NINE

Start to think about innovative ways of using technology to make the retail experience more fulfilling and enjoyable

…Not to mention more profitable for you

ACTION SEVEN

Make sure you offer a genuine experience in your store Think about why people might come to you rather than another place?

Think about how people might be looking for your shop or services and what you can do to make that easier for them

ACTION EIGHT

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Thank you for listening

Do You Have Any Questions?

ACTION TEN

Speak to an Expert, someone who can help you come up with an effective plan for your new retail strategy

Technology

Using Digital in Retail