In Store Digital - What's out there?

RETAIL INNOVATION - WHAT’S OUT THERE?

RETAIL | DIGITAL | END TO END


C O N T E N T S• ABOUT ME• THE DIGITAL & MORTAR LANDSCAPE• THE USE CASES• SHOWCASING

• BROWSING

• LOCATION

• PAYING

• STAFF ENABLEMENT

• KEY TAKEAWAYS


ABOUT ME• I run retail-innovation.com.

with 450 visitors per day.

• I’m REPL’s Digital Director. I joined in October.

• I’m famous for putting digital in store at M&S

• I’ve worked for /with a number of larger retailers.

• I’ve worked with the web since it all began.


RETAIL IS IN THE BLOOD


DIGITAL STORES INTERNATIONAL

DIGITAL STORES UK

CATEGORY SPECIFIC INNOVATIONS

M&S.COM REPLATFORM (UK)

MY WORK AT MARKS & SPENCER


ABOUT REPL DIGITAL• We’re a specialist in bringing digital into

store

• UK based; 160 employees

• We have a mobile platform which enables store staff to be more productive.

• We’ve been innovating in the mobile in store space since 2011 and work with over 30 retailers worldwide including: -


THE DIGITAL & MORTAR LANDSCAPE


THE WAY PEOPLE BUY IS RAPDILY CHANGING

• There is an adjustment taking place in the market between bricks & digital.

• UK store footfall has been declining.

• Digital influence on purchase continuing to rise and mobile/tablet main drivers. Usage continuing steep trajectory.

• Delivery costs rising and online pure-play retailers going out of business.

Source: BI Intelligence

Device usage growth


CUSTOMER SERVICE IS KEY

• Customer expects online and offline assistants to be knowledgeable.

• There are significant up-sell & cross-sell opportunities.

• Store staff should use mobile digital tools to keep them on the pulse.

• Customers use devices for self-service in store; comparing products/prices, getting advice from friends & taking photos.


Attractingthe customer

into store

Create great customer

experience

Convert the opportunity

Staff enablement & productivity

Reduce staff turnover

FOOTFALL

Increase Net Promoter Score

Increase customer satisfaction Improve product availability

Increase staff on shop floor

Increase conversion

Increase time spent in store

Increase averagebasket size

Improve staff productivity

DRIVING THESE KPI’S FIT INTO 4 INITIATIVES

Increase visitorsinto store

HOW SHOULD YOU PRIORITISE YOUR INVESTMENT?

AVERAGE SPEND COSTS PROFIT


THE USE CASES


SHOWCASINGUSE CASES


SHOWCASING

CONNECTED STORE

VIRTUAL FOOTWEAR WALL

DIGITAL CAR SHOWROOM

VIRTUAL CLOTHING RAIL

• In the following video, Audi demonstrate how the digital showroom works.

USE CASE

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/audi-city-in-londons-picadilly-circus/

• In the following video, Rebecca Minkoff demonstrate how the digital boutique works.

USE CASE

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/digital-changing-room-and-interactive-mirrors-at-rebbecca-minkoff/

SHOWCASING – SUMMARY

Must be solving a genuine problem: Adidas – showcase 4,000 shoes in

small store Audi – showcase cars in city space M&S – showcase clothes in a food

store Rebecca Minkoff - ??

Expensive to build because nearly always bespoke. Projects shown would have cost

around £1m High ongoing content costs

16


BROWSINGUSE CASES


GETTING PRODUCT INFORMATION WITH KIOSK

Customers using self service devices in store to identify availability of a colour/size not in store or explore wider catalogue

DIGITAL CATALOGUE

BROWSE & ORDER HUBS

BROWSE & ORDER BANKS


GETTING PRODUCT INFORMATION WITH MOBILE

Customers using mobile to identify product and find out more, like, add to wish list or order.

BEACONS ON PRODUCTS

IMAGE RECOGNITION

NFC ON SHELF EDGE

• In the following video, Hointer display one of each product and you order your size to the changing room.

USE CASE

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/us-retailer-hointer-uses-robots-to-deliver-your-selections-to-the-fitting-room/

• In the following video, Argos introduce their new digital store concept.

USE CASE

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/new-argos-digital-concept-stores/

BROWSING – SUMMARY

Interactions must be quick & seamless. Shopper wants immediacy when in store.

Consider the store staff as users.

Test the target users appetite first with a minimum viable product.

22PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/audi-city-in-londons-picadilly-circus/


23

LOCATIONUSE CASES


WAY-FINDING

MOBILE OUTDOORS

IN-STORE KIOSK

SHOPPING MALL KIOSK

IN-STORE WITH MOBILE

MOBILE NAVIGATION IN-STORE

• Technology pilots appeared in 2011 at Macys. Very few other examples.

• Cost prohibitive – requires indoor receptor and non food retailer not likely to hold digital planograms.

• However, new WI-FI points soon to be replacing end-of-life kit. These can triangulate customer location. Additionally as more retailers dispatch from store, digital planograms may start to be created.

LOCATION BASED TARGETING

• Who knows where you are?– Google location history has been

charting where you are going.– Handset Manufacturers, mobile

operators can also track you– Apps using geo-location services

• Use Case– Customers can search for

product/service nearby. – Real-time bidding retailers

promote products/services if nearby.

• In the following video, Meat Pack disrupt your shopping journey with a live offer

Use Case

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/mobile-app-that-hijacks-you-from-a-rival-store/

LOCATION – SUMMARY

Still too many barriers to do in-store navigation.

Consider what you could do with footfall data.

Be ready to work with Google.

28


PAYINGUSE CASES


PAY ANYWHERE

• Through use of mobile, customers can be given more convenient places to order & pay.

• Hospitality has had many successful trials whilst retailers still experiment.

PAY IN CAR SHOP & GO

PAY AT TABLE PAY IN STADIUM


PAYING WITH A DEVICE

Mobile is enabling customers to pay with their devices at the Point-of-Sale

PAY BY WATCH PAY BY PHONE

CHECK-IN & PAY

THE OMNICHANNEL THE POINT-OF-SALE

More than 70% of specialty stores saying their next POS will be a unified commerce platform

Traditional siloed systems are not meeting the needs of the consumer.

Retailers need to have a ‘single version of the truth’

PAYING– SUMMARY

Mobile payment will become mainstream.

Use to reduce customer wait time.

Hospitality leading the way.

New generation POS will give the retailer a single version of the truth.

33


STAFF ENABLEMENT

Assisted Selling in store

• Drives significant incremental sales often rescuing sales that would have been lost.

• Allows colleagues equipped with product information on device to take orders / answer enquiries on shop floor.

• Opportunities to cross-sell /up-sell through existing online relevance tools

• Most large retailers are trialing or about to. Macys and M&S were early adopters.

The following video demonstrates how assisted selling could work with colleagues wearing wearable technology.

USE CASE

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT http://retail-innovation.com/sales-assistant-using-google-glass/

Workforce Management in store

Mobile is also being used to manage and report status on operational tasks like managing staff rotas & carrying out head-office instructions etc...

Social Collaboration / Communication

• Mobile makes colleagues more productive on shop floor.

• Tools can open dialogue between colleague in store, peers in other stores and head office.

• Opens feedback loop that • Successful trials in M&S,

Arcadia

The following video demonstrates how Tesco use social platforms to connect their staff.

USE CASE

PLEASE NOTE: THIS VIDEO HAS BEEN REMOVED BUT CAN BE FOUND AT https://youtu.be/cdUNlQHgoak

STAFF ENABLEMENT – SUMMARY

Store social networks are proving hugely successful.

Assisted selling drives incremental sales and enables store staff to up-sell / cross-sell.

Mobile tools get staff on the shop floor.

40


SUMMARY

KEY TAKEAWAYS

• Most retailers now have a digital presence in store.

• Few mature technology platforms out there and a lot of expensive bespoke applications.

• If investing, hypothesize which KPIs you are trying to drive and measure KPIs you are planning to effect.


END

WHAT’S OUT THERE? WHAT WORKS? WHAT DOESN’T?