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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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National Retail Federation, January 15-17, 2017. Chris Field, Retail Connections, Carolyn Yapp, Shell Retail.

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market CHRIS FIELD, Director, Retail Connections CAROLYN YAPP, General Manager, Transactions, Data and Marketing, Shell Retail

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2 BUILDING CUSTOMER VALUE IN AN EVOLVING MARKET CAROLYN YAPP GENERAL MANAGER Customer Insights & Data Analytics

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DEFINITIONS & CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers (SPE) 2P + 2C definitions. Discovered and prospective resources: Our use of the term “discovered and prospective resources” are consistent with SPE 2P + 2C + 2U definitions. Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage. Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all thirdparty interest. This release contains forward- looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forwardlooking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, January 15th, 2017. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release. With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas. We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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94% Convenience is important to nearly all consumers, with saying that their lives are impacted by whether a store provides them with a convenient experience.

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78% And convenience is about more than just speed… of consumers claim convenience does not constitute a quick ‘in and out’ visit.

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56%of all consumers say they would use another brand after an inconvenient experience would be willing to walk away from a brand forever… meaning revenues across all sectors are up for grab 12%

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35% On an average day, only of our sales are fuels-only half Almost are convenience retail-only

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THE WORLD’S LARGEST FUELS RETAILER

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He drives around 16,109 miles per year Source: Shell Loyalty Scheme Data OUR CUSTOMER DAVID He spends He spends on his smartphone/ tablet per dayHe uses his car for both work and domestic uses He is a Shell loyalty program member, and carries 4 other loyalty cards in his wallet Source: Plastic Card Services UK Buys fuel on average 6.2 times per month he spends around US$60 each visit He has downloaded But only uses 5 regularly apps His most used app is from his favorite coffee shop… ... Since it’s quick and easy to pay. He reads his monthly personalized Email from Amazon his mobile device… He also shares their latest offers with his friends via Facebook OUR CUSTOMER IS CHANGING

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10 SEGMENTATION

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WE ASKED CUSTOMERS ABOUT THEIR EXPERIENCE AT OUR SITES WHAT THEY LIKED AND DIDN’T LIKE.

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These items drive ANXIETY These items drive SATISFACTION Waiting to pay in store Exiting the forecourt on to the road Using the toilet facilities Choosing a pump Using the air/water facilities yourself Availability of products wanted How well forecourt was maintained Cleanliness of the forecourt Length of time it took to complete visit Lighting on the forecourt Overall service from staff in store Availability of products wanted 01 02 03 04 05 06 01 02 03 04 05 06

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UNDERSTANDING CUSTOMERS AND TREATING THEM LIKE GUESTS

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CUSTOMERS HAVE DIFFERENT NEEDS AT DIFFERENT TIMES FOR LATER (preparation) FOR NOW (immediate need) VEHICLE NEEDS RESTORATIVECONSUMPTION FUEL PLUS FUEL & GO CAR CARE FAST FOOD TREAT BASICS & INDULGE LIQUID BOOST ROUTINE NEEDS TAKE A BREAK HOME FROM HOME (B2B)FOOD FOR TONIGHT TOP-UP SHOP

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Fuel and go Fuel plus Take a break Liquid boost Routine needs Basics and indulge Fast food treat Food for tonight Top-up Shop WHAT DO THOSE NEEDS LOOK LIKE BY COUNTRY?

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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THE CONNECTED CUSTOMER

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MOBILE PAYMENT AT THE PUMP

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DATAFROM LOYALTY PROGRAMS

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REAL TIME CUSTOMER OFFERS

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CONNECTED SCREENS

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FUEL PROGRESS NEWS TRAFFIC WEATHER OFFERS

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Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

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THE CONNECTED CAR

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TRANSFORMING OUR BUSINESS FROM LEADING WITH FUELS TO LEADING RETAILER BEYOND FUELS FROM CONVENTIONAL FUELS TO PORTFOLIO OF ALTERNATIVE FUELS FROM FRUSTRATING CUSTOMER EXPERIENCE TO EVERY CUSTOMER TREATED LIKE A GUEST FROM OFFLINE WORLD TO MOBILITY SERVICES

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2016 LE2014 20152013 2013 2016 LE20152014 2014 20162015 2017P PROCEEDS EARNINGS CAPEX INVESTMENT MAKING A DIFFERENCE

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CONTACT DETAILS ISTVAN KAPITANY Executive Vice President, Retail Carolyn Yapp GM Customer Insights & Data Analytics @Istvan_Kapitany@Shell /istvankapitany/carolyn-yapp-a94ba15

More Related Content

Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market

  • 1. Revolutionizing Retail Convenience: How Shell Uses Customer Insights to Accelerate Ahead of the Market CHRIS FIELD, Director, Retail Connections CAROLYN YAPP, General Manager, Transactions, Data and Marketing, Shell Retail
  • 2. 2 BUILDING CUSTOMER VALUE IN AN EVOLVING MARKET CAROLYN YAPP GENERAL MANAGER Customer Insights & Data Analytics
  • 3. DEFINITIONS & CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers (SPE) 2P + 2C definitions. Discovered and prospective resources: Our use of the term “discovered and prospective resources” are consistent with SPE 2P + 2C + 2U definitions. Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage. Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all thirdparty interest. This release contains forward- looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forwardlooking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, January 15th, 2017. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release. With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas. We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
  • 4. 94% Convenience is important to nearly all consumers, with saying that their lives are impacted by whether a store provides them with a convenient experience.
  • 5. 78% And convenience is about more than just speed… of consumers claim convenience does not constitute a quick ‘in and out’ visit.
  • 6. 56%of all consumers say they would use another brand after an inconvenient experience would be willing to walk away from a brand forever… meaning revenues across all sectors are up for grab 12%
  • 7. 35% On an average day, only of our sales are fuels-only half Almost are convenience retail-only
  • 8. THE WORLD’S LARGEST FUELS RETAILER
  • 9. He drives around 16,109 miles per year Source: Shell Loyalty Scheme Data OUR CUSTOMER DAVID He spends He spends on his smartphone/ tablet per dayHe uses his car for both work and domestic uses He is a Shell loyalty program member, and carries 4 other loyalty cards in his wallet Source: Plastic Card Services UK Buys fuel on average 6.2 times per month he spends around US$60 each visit He has downloaded But only uses 5 regularly apps His most used app is from his favorite coffee shop… ... Since it’s quick and easy to pay. He reads his monthly personalized Email from Amazon his mobile device… He also shares their latest offers with his friends via Facebook OUR CUSTOMER IS CHANGING
  • 11. WE ASKED CUSTOMERS ABOUT THEIR EXPERIENCE AT OUR SITES WHAT THEY LIKED AND DIDN’T LIKE.
  • 12. These items drive ANXIETY These items drive SATISFACTION Waiting to pay in store Exiting the forecourt on to the road Using the toilet facilities Choosing a pump Using the air/water facilities yourself Availability of products wanted How well forecourt was maintained Cleanliness of the forecourt Length of time it took to complete visit Lighting on the forecourt Overall service from staff in store Availability of products wanted 01 02 03 04 05 06 01 02 03 04 05 06
  • 14. CUSTOMERS HAVE DIFFERENT NEEDS AT DIFFERENT TIMES FOR LATER (preparation) FOR NOW (immediate need) VEHICLE NEEDS RESTORATIVECONSUMPTION FUEL PLUS FUEL & GO CAR CARE FAST FOOD TREAT BASICS & INDULGE LIQUID BOOST ROUTINE NEEDS TAKE A BREAK HOME FROM HOME (B2B)FOOD FOR TONIGHT TOP-UP SHOP
  • 15. Fuel and go Fuel plus Take a break Liquid boost Routine needs Basics and indulge Fast food treat Food for tonight Top-up Shop WHAT DO THOSE NEEDS LOOK LIKE BY COUNTRY?
  • 29. TRANSFORMING OUR BUSINESS FROM LEADING WITH FUELS TO LEADING RETAILER BEYOND FUELS FROM CONVENTIONAL FUELS TO PORTFOLIO OF ALTERNATIVE FUELS FROM FRUSTRATING CUSTOMER EXPERIENCE TO EVERY CUSTOMER TREATED LIKE A GUEST FROM OFFLINE WORLD TO MOBILITY SERVICES
  • 30. 2016 LE2014 20152013 2013 2016 LE20152014 2014 20162015 2017P PROCEEDS EARNINGS CAPEX INVESTMENT MAKING A DIFFERENCE
  • 31. CONTACT DETAILS ISTVAN KAPITANY Executive Vice President, Retail Carolyn Yapp GM Customer Insights & Data Analytics @Istvan_Kapitany@Shell /istvankapitany/carolyn-yapp-a94ba15

Editor's Notes

  1. Shell Five Minute Economy Report
  2. Shell Five Minute Economy Report There is now an EMOTIONAL ELEMENT - people see convenience as a way to give them back time to focus on doing more of the things they want to.
  3. Shell Five Minute Economy Report
  4. Shell Five Minute Economy Report
  5. CIS – Deli Café ordering
  6. ….The best fuels retailing experience possible, enhanced through digital technologies. Shell is currently leading in mobile with leading innovative features such as mobile payment at the pump
  7. WE HAVE NOW, A WHOLE NEW PERSPECTIVE ON OUR BUSINESS FROM NEEDS OF THE VEHICLE TO NEEDS OF THE DRIVER AND THEIR PASSENGERS DEFINING OUR CUSTOMERS AS PEOPLE ‘ON THE MOVE’ WHO NEED SOMETHING DEFINING OUR CUSTOMERS AS DRIVERS IN CARS WHO WANT TO REFUEL
  8. Improve the slide, including adding a background image
  9. Slide stays but if you need to modify it to fit the storyline, please do so.