The connected shopper. Fallacy fad or reality?
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Does the connected shopper really exist? Is ominchannel a trend or the future? As the line between physical and digital begins to blur, what is the role, relevance and importance of the various channels in “omni channel”? With examples, case studies and insights I explore what the connected shopper paradigm means for now and the future.
The connected shopper. Fallacy fad or reality?
- 1. The connected shopper: fallacy, fad, or reality? Simon Etchells | Group Digital Director The Delta Group
- 2. A study of 46,000 shoppers shows that omnichannel creates significant uplift. Harvard Business Review (Jan 2017)
- 3. • Putting omnichannel in context • Snapshot data • Current and future retail challenges • Case studies • Reward schemes • Using technology in store • The future of omnichannel What we will be talking about
- 4. The Landscape is Changing Wooing consumers into physical stores in the first place and giving them compelling reasons to shop is getting harder and harder. With the wide spectrum of shopping channels, a multitude of information sources, numerous delivery solutions and the hyper-connected shopper there has been a massive change in shopper habits. Shoppers now expect to interact with a retail brand across multiple channels – and to excel all of the retailers channels must provide an excellent service. €6 million investment in further store upgrades and an initial €1 million to invest in developing Eason’s omnichannel offering over the next three years
- 5. Irish Retail Snapshot • €30 Bn in total sales • 23% of State tax • 12% of GDP • 33% of total consumer spend • 14% of national employment • Sales still 13% lower than pre-crisis • Irish shopper price conscious and much more informed due to online penetration • Increased focus on destination stores with 29% of retailers looking to invest in technology • Tighter times & intense competition between retailers in 2016
- 6. The Power of Omnichannel Omni-channel is how consumers shop, not a retail strategy. The more channels customers use, the more valuable they are. A recent Google study found that omnichannel shoppers are 3 times more valuable to a brand, with Macy’s stating 6 times. Irish shoppers say that social media has an influence over what they buy – under 25’s – 60% and 25-34 – 50%. Conducting prior online research on the retailer’s own site or sites of other retailers led to 13% greater in-store spending among omnichannel shoppers. 71% of customers consider it important to be able to view local inventory information for an item online. 39% went so far as to say they would not shop at a store whose online presence lacked this information. 88% of Irish shoppers participate in loyalty schemes.
- 7. But is E-Retail Still Growing? • The digital economy is now worth about 6% of Ireland’s GDP. • 94% of Irish internet users now shop online. • 75% of the population say that they use the internet at least once a day. • Spend by an average adult online per month increased by 13% • Since 2014, from €71 to €80 per month per person. • 47% are willing to use their phone to shop • 30% say that their mobile will become their main shopping tool in the future. • 6 in 10 browse online before making an in store purchase. Sources: 2017 PWC Total Retail Report (Mar 2017) The Omnichannel Challenge (B&A Oct 2016) Shaping the future of Irish Retail (Retail Ireland Mar 2017)
- 8. Promotions Impact 3/4 of Irish Shoppers’ Decisions And Irish shoppers rank 2nd in Europe for knowing the price of their regular bought items • 18% change stores based on which one has the best promotions • 38% actively search for promotions • 20% will switch brands because of promotions • 66% always notice a price change on a regularly bought item • 22% know the price of all items they buy regularly Source: Nielsen Ireland Shopper Trends 2015
- 9. ‘How would you improve your shopping experience?’ Toluna QuickSurveys IRE n=101 What would improve your shopping experience when buying your groceries? Personalised coupons given at checkout Personalised promotions (list of products for discount) Pay by app Tablets in store Personalised product recommendations Digital shopping lists 67% 42% 34% 32% 24% 24%
- 10. Current and Future Retail Challenges In-store Navigation In-store navigation can be so frustrating, customers have dedicated entire blog posts and Facebook pages to it! As we move into the era of omnichannel experience, creating in-store navigation that helps the customer on their terms becomes more and more vital. Data-Driven Decisions Customer data will drive decisions about what to sell, where to sell it and how to price it. This will require investment in technology and more importantly will change how the business operates. Behavioural and predictive analytics are becoming a big disruptor. Importance of the Customer Journey The customer journey will move from being a “nice to do” to a top priority. Retailers and brands must review and improve the entire customer experience and not just the final mile.
- 11. Personalisation and Experience All data indicates that these two factors very important to shoppers and the expectation a retailer will provide excellence in these increases by the day. Digital Content Consumers crave digital content. Just take Barclay’s recent New Retail Reality report, which found that while customers still prefer the high street experience to shopping online, they want stores to showcase the latest tech. It showed that 57% of consumers are more likely to visit a shop integrated with VR, while 65% want to see more touchscreen technology used by retailers. Mobile Shoppers The practice of checking competitor prices online while visiting a store (a practice known as “showrooming”) is gaining in popularity and causing traditional retailers a lot of concern. Current and Future Retail Challenges
- 12. Conversational Commerce Voice user interfaces (VUI) provide consumers with a more natural and intuitive way of engaging with digital technology. This combined with the growing popularity of connected devices in the home and car will have a profound impact on how we shop. Brand Selling Direct to Consumer The number of manufacturers selling directly to consumers is expected to grow 71% this year to more than 40% of all manufacturers. And over a third of consumers report they bought directly from a brand manufacturer’s web site last year. The Power of Advocacy and Social Media Personal recommendations continue to dominate the trustworthiness of advertising. 92% of consumers believe recommendations from friends and family over all forms of advertising. How can this power be harnessed in store? Current and Future Retail Challenges
- 13. Consumer Needs and Habits are Shifting New consumers are being defined - survivalists and selectionists. Survivalists are cutting back and looking for value. By contrast, selectionists can afford to be choosy and “select” for products they perceive as being of much higher quality. The result is that the discount and top-end companies are doing well and increasing their market share, while retailers in the middle — and the CPG companies that service them — are suffering. Loyalty Schemes Work With the increasing power of smartphones apps – with digital payment, social feeds and receipts built in. Combine this with shopping lists and way finding technology and shoppers can be given a tremendous shopping experience. Current and Future Retail Challenges
- 14. Targeting and retargeting shoppers across their entire journey Our Connected Shopper Services DRIVING FOOTFALL RE-TARGETING IN-STORE/OOH ENGAGEMENT PRE-PURCHASE PURCHASE POST-PURCHASE Web/mobile design and development Content and creative production Social media & community engagement Interactive POS Experiential Audience monitoring e-commerce, e-pos & inventory integration Social media monitoring Online mobile re-targeting Community engagement strategy
- 15. Fusing their e-commerce site, mobile app, and brick-and-mortar stores into a simple shopping experience • Sales associates armed with iPads giving on give the-spot, accurate, and up-to-date product information. • The iPad also acts as a cash register, If it appears that something is out of stock, the staff can instantly place an online order for you to have the item shipped directly to your home.
- 16. If an item is sold out online, customers can use Oasis’ “Seek & Send” service where the retailer searches its stores for the product and ships it to the shopper. Once the item is located, Oasis will send an email to notify shoppers and let them track their goods.
- 18. • Customers use the mobile app to book support appointments at a store’s Genius Bar. • Walk-in users get messages through the store app confirming their requests and letting them know when a technician is available to help them. • When a customer orders an item online to collect in-store, they receive an alert when their mobile device senses they are near the store. The alert brings up the relevant order information, which the customer can then present to a sales assistant
- 19. • Synchronising in-store recommendations with shoppers’ online profiles. • The store offers information cards, iPads, and monitors with further information about the products available, and general advice on skincare from nutritionists and dermatologists. • After an in-store consultation, shoppers are given codes with their personalised results that enable them to use the information online.
- 21. Creating a Multi-Platform Campaign for Tesco Tescos’s challenge: To drive people to thier online competition using various touchpoints in store We were asked by Premier Foods to run their ‘Win the Cost of Christmas’, which involved: • Campaign strategy • Prize management for competition • Campaign creative • Creation of an online microsite • POS & Sampling collateral • Social media 14,000 entries to the competition 1,500 facebook likes
- 22. Crossfit Launch Reebok’s challenge: to spread the word about their latest fitness trend ‘Crossfit’. Ensuring people understood its culture and accessories. • ATL – Press Ad • Augmented Reality • Microsite • Flash Animation • Email Invite • HTML Build • SEO Augmented ads, microsite and flash invitation in support of the Reebok Crossfit “The Sport of Fitness Has Arrived” campaign.
- 23. i Using Innovation to Maximise Interactivity Lidl’s challenge: To encourage customers to enter their Christmas giveaway campaign by using interactive FSDUs and innovative tech to enable easier entry to the competition. insight: Lidl were running a Christmas giveaway campaign. The insight from their previous in store competitions dictated that in order to increase entries they needed to create a high impact, interactive FSDU to be placed in the entrance of their stores to maximise customer engagement designed: Lick created innovative FSDU designs, which included a pre-programmed NFC chip, that once applied to the FSDU, would communicate to a customers smartphone device when the device is in very close proximity or touches/taps the FSDU in the area where the NFC chip is applied executed: 700 x units produced – 644 x were shipped directly to store analysed: there was a remarkable uptake in entries into the competition, with more entries for this competition than all other LIDL competitions combined for the whole of 2016. Precise number of clicks is in excess of 70,000 x customer interactions support: further recommendations have been made by the Digital team in Lick to deep dive the insights from the Christmas campaign for their summer campaign, which will also use NFC and QR codes d e a s
- 24. i Experiential brand activation Yokebe’s challenge: To create an interactive experiential event, promoting the weight loss supplement in shopping centres throughout the UK. insight: was gathered to ascertain the key goals and drivers of purchasers such as the ‘empowerment’ factor designed: an interactive unit that utilised video mapping and AR to allow people to become whoever they wanted. Everything from an astronaut to a mountain climber. Once the consumer had chosen their fantasy, they were issued with a printed photo and the chance to up load the image direct to social media using the iPads provided executed: full production and implementation analysed: activity and fed back the data captured support: by hosting additional sampling activity d e a s
- 25. Creating the store of the future Game’s challenge: To provide a store of the future which created an immersive space for their customers as well as a destination for showrooming new products i insight: With online gaming being becoming more and more competitive, with leagues being broadcast on satellite television Game wanted to create a store of the future that would emulate the gaming arena their stars competed in designed: The Lick Creative team designed their store of the future, which included innovative flooring, lighting and textures executed: The Delta Group fulfilled all printed elements, with the Delta permanent team developing and producing static and animated LED light boxes, including a rotating branded gobo projector. The Permanent team also provided an innovative modular display slat wall solution, Click Wall, a first to market innovative printed slat wall analysed: Modular solutions were implemented so that the flagship store design could filter down into smaller format stores without losing synergy supported: there were on site account managers to assist with the implementation of all elements of the store from start to finish, with Yetunde Smith, Group Head of Brand commenting ‘I wanted to say a massive Thank You to your teams for the focus, creativity and energy that you have given to the launch of Wardour Street and Milton Keynes. Without your commitment and patience on this journey we would never have achieved what is now been hailed in our business as tremendous looking spaces in just 8 weeks!’ d e a s
- 26. Rewards Schemes
- 27. Rewards Schemes • Retain existing customers • Increase Customer Lifetime Value • Increase basket size • Build personal relationships • Offer targeted products • Create brand advocates
- 28. Why look at loyalty cards? • Technology – Provide information not only about the shoppers behaviour, but also about preferences and habits. • Increased price pressure on retailers means importance of customer engagement increases • But Nielsen, found that British shoppers are among the most likely in the world to have a loyalty card but among the least likely to actually use them. • “People are tired of receiving untargeted, irrelevant price offers” • My Starbucks Rewards and Amazon Prime – are exceeding customers’ expectations based on a loyalty benchmark • Majority of consumers (62 per cent) were more likely to use their loyalty card if it was on their phone
- 29. • Go beyond the “generic” and offer its customers “life-enhancing” rewards. • Driving community • Reward for members who post product reviews • Rewards such as in-store food tasting and previews of new fashion lines • Let customers “crowd source” ideas to determine its future direction • Tapping into the gamification trend - making gradual micro progressions Sparks by M&S
- 30. Order ahead and pick up your drink without waiting in line with Mobile Order & Pay. You can also tip your barista digitally, and download the free Pick of the Week, right in the app. Starbucks app
- 32. Digital Screens in Retail
- 33. Video has significantly higher engagement online and in store. • 90% of buying decisions based on visual factors - 6.6% of shoppers glanced at traditional print. • However 9.9% of shoppers looked at a digital screen showing static content. • Nearly one in five retailers have seen larger average basket sizes. • Average 3.2 x ROI when using digital screens. • Increase sales up to 30% Increase marketing budget efficiency by average of 20%. Digital Screens at Retail
- 34. • High impact due to moving imagery • Increased inventory allowing greater breadth of product to be shown • Near instantaneous updating – store by store or across entire estate • Ability to monetise through supplier funding • Dynamic content such as weather or pricing • Can be highly tailored to locally relevant content • Attention can be measured • Potential for direct linking to epos systems and order and collect options • Higher conversion rates • A reduction in print, delivery and installation costs over time • Options for social media feeds and customer interactions Advantages of Digital Screens
- 35. Digital screens at Asda Superstores Installation of more than 300 70” portrait digital screens located at the entrance of Asda Superstores nationwide, with a smaller variant to be designed for Asda’s smaller Stores. Has built-in live shopper monitoring offering advertisers live availabilities and campaign reporting. Asda sales data and customer insight information to create hyper-relevant, contextual advertising opportunities. Source: Clear Channel (Feb, 2016)
- 36. Sainsbury’s shelves go digital in new trial Sainsbury’s trialed a new digital pricing display to cut the use of paper and automatically update prices. John Rudoe: “This trial will give us useful feedback about quicker, efficient digital pricing information.” Source: Sainsbury’s (Feb, 2015)
- 37. Waitrose shelf-edge video Waitrose is trialing the use of next generation digital shelf edge ticketing to explore how the technology might be used to engage with customers in the future. It is the first time full colour LCD video shelf edge ticketing has been used in a UK supermarket. The ticketing, which features graphics designed to both inspire and inform shoppers, was introduced at the beginning of February and will be displayed across four fixtures at its Trumpington store in Cambridge until the end of April. Over the course of the 12-week trial the technology will be used to support seasonal campaigns and give customers access to the expertise available in its buying team through tasting notes and recommendations, including food and wine matching. Source: Waitrose (Mar, 2017)
- 38. Nestle’s in-aisle digital screens at Asda • Animated content was used at the shelf-edge to promote the company’s Quality Street range in the last three months of the year, which covered the traditionally busy shopping events of Halloween, Bonfire Night and Christmas. • As much as a 41% increase in sales was seen. Source: Retail Week (Aug, 2016)
- 39. Iceland rolling out digital screens The success of frozen food specialist Iceland’s Clapham Common store trial is resulting in an estate wide rollout. Unofficial numbers see a four fold increase in basket value. Source: Retail Week (Oct, 2016)
- 40. boots Christmas Window Displays We created an engaging Christmas window scheme across 23 pinnacle Boots stores, integrating digital, print, and 3D cardboard engineering with measurable customer data and ROI. • Fully end-to-end: From survey to installation. • Full VM design and manufacturing solution • Our Innovations team managed digital cloud-based content streaming across five stores with HD large format digital screens, with a live twitter feed • Simultaneous night installations to coincide with ATL campaign • Digital content creation to support weekly promotion change overs • Digital audience tracking system installed in flagship store to measure engagement Average Audience Per Day: 1,102 Total Viewers for Campaign: 42,962 Conversion (Passing screen vs. looking at screen): 7% Average Passing the Screen per Day (Footfall): 15,985
- 41. Complete Solutions Would you want to: • Make your windows work harder? • Boost sales with targeted indoor marketing? • Bringing online to life in store? • Generate higher engagement on shelf? • Create impactful in store theatre? • Produce digital content that wows? By combining the Delta Groups’ experience and resources with the latest in-store innovations, we can help deliver all of these.
- 42. Making Windows Work Harder Combining four different technologies we can provide highly tailored and engaging content that shoppers can interact with at any time of day (or night). Using high brightness retail screens, touch screen films, audience monitoring camera’s and vibration speakers, windows can be turned into shoppable windows with shoppers demographics and their reactions being monitored. With this demographic data the shopper can be shown products that may appeal specifically to them. Also information specific to the location (such as weather conditions) can be shown. All screens in your estate, or just one, can be updated instantly. Provide a digital catalogue they can interact with and provide click and collect details for the next day they can email/text to themselves.
- 43. Targeted Indoor Marketing Dynamic interactive content can be delivered in store by using stand alone, shelf mounted and shelf edge screens combined with iBeacons and bar code scanners. With a content management system shoppers can be given highly targeted information and promotions via digital screens – in real time. Further, using video analytics (footfall and attention time for instance) patterns of behaviour by customer segments can be discovered. This allows cross sell and upsell, steering customers within departments, and testing attractiveness of products, services and messages. Ultimately in store marketing effectiveness can be tracked and managed.
- 44. Bringing Online to Life In-store - Phygital Taking the in store/on shelf screens a step further shoppers can interact with these displays directly from their smartphones. Using NFC, QR codes or Snapcodes they be taken directly to any sites you decide and provide an online experience in store. This can also be driven by bar code scanners – holding a coded product up to a screen will provide much more detail on the product. Further by combining this technology with digital screens and a CRM or loyalty program shoppers can be served targeted promotions specific to them – based on previous shopping histories and preferences. You are more in control and can fulfill the “showrooming” effect.
- 45. Create Impactful In-Store Theatre Shoppers are actively wanting to engage like never before and by providing with moments of fun and surprise your product and brand will create memorable excitement and engagement. From large scale Virtual and Augmented Reality experiences, digital graffiti walls, through to small scale selfie opportunities and interactive transparent screens - almost any foot print can be accommodated. Using social feeds directly at the point of sale their memorable experience can easily be shared creating a halo affect.
- 46. Generate Higher Engagement on Shelf Shelf-edge messaging remains a very powerful tool. The vast majority of purchase and up to 80% of brand switch decisions are made directly at point of purchase. Displaying dynamic moving images, though technologies such as shelf edge video and short throw projectors, creates disruption and engagement at much higher levels than paper or card alone. By integrating electronic shelf labels you can remotely change your shelf-edges across one store, or every store, anywhere, in seconds. Adding audience monitoring to the shelf edge will allow you measure dwell time, engagement and demographics of the viewers.
- 47. Produce Digital Content That Wows As with all other aspects of online life, content remains - and will remain - king. With the increasing sophistication of digital content tools and the huge options a shopper has to generate, and publish their own content it is vital to stay ahead of the game. Using sophisticated studio management and online approval tools, full 3D and visualisation studio right through to content management system, we create engaging and impactful content distributed to wherever and whenever you need it.
- 48. The Future of Omnichannel • It is clear that shoppers have increasing desire to shop how and where they want • They also want the technology enabling them to do this • Social media sites will increase the focus and sophistication of their advertising and selling models • There will be no one channel better to sell than another - right place, right time • Relying on growth from a single channel is unsustainable • Reordering tools and algorithms will increase penetration • Mobile will only increase in importance
- 49. In Summary • Omnichannel it not a concept of a future vision – it is todays reality • Retailers and brands that harness this will reap the rewards • Investing in store technology will pay dividends very quickly • Big data is not a buzz word but a very powerful tool • Personalisation and experience are the two concepts to crack • Remember shoppers expect a seamless experience across all channels. • No channel is more, or less important than another
- 50. Thank you Simon Etchells | Group Digital Director The Delta Group Simon.Etchells@lickcreative.com | +447866925451