1. No category

10
volume
How to Win the
Future of Shopping
Trends Report 2012 | Q2
2
4
Introduction: How to Win the Future of Shopping
6
Chapter 1: The Recommendation Economy
12
Chapter 2: Digital Couponing
19
Chapter 3: Embeddable Checkouts
25
Chapter 4: Post-PC Commerce
31
Chapter 5: Enhanced In-Store Experiences
36
Conclusion
Trends Report 2012 | Vol 10
3
How to Win the
Future of Shopping
an introduction
Retail used to be about putting up your shingle
Hardened to cries of wolf after so many years,
and offering your wares to the masses. Success
many retailers have put up a web site, called it a
was built on scarcity and if you had the right
day and turned inward.
selection, price and service, customers would
line up at your door.
Not so fast. Digital technology has disrupted
shopping in ways no one foresaw just a few
ECommerce then came on the scene and
short years ago. The new world of digitally-
retailers braced for disruption. Scarcity was
enhanced shopping is a battlefield that puts
going to be replaced by abundance. Any
retailers, brands, and technologists into fierce
product a shopper could want would be just
competition. Shoppers take smartphones with
a click away; the era of bricks and mortar
them to the store, putting the best information
was finished.
the Internet has to offer within reach at any
moment. Every piece of media can have a
Fast forward to 2012, and eCommerce hasn’t
digital checkout embedded in it, and with users
been as disruptive as everyone assumed.
accessing content from devices ranging from
According to the U.S. Census, eCommerce still
smartphones and tablets to cars and TVs.
only accounts for less than 6% of retail sales.
4
6.0
Estimated Quarterly US Retail eCommerce
Sales as a Percent of Total Quarterly
4.8
Retail Sales: 2002-2011
*Source: U.S. Census Bureau, February 2012
3.5
2.4
1.2
NOT ADJUSTED
ADJUSTED
A New Omnichannel World
With digital opening up new opportunities
but one of how digital technology can be
to integrate technology into the shopping
deployed to improve the overall
experience, what can marketers do to stay
shopping experience. Consumers are
ahead of the curve and win the future
already seeking tools to save time on travel
of shopping?
and save money on gas when going out, and
the explosion of new digital services make it
The answer lies in what Daniel Rigby calls the
where they can find tools to save time and
“Omnichannel Organization.” A purchase,
money in-store as well. Brands need to get
after all, is more than a singular event,
ahead of creating tools and services that
but a series of touchpoints that result in a
make it easier for consumers to feel more
sale. Consumers often browse online and
confident in their purchase decisions.
1 The Recommendation Economy
2
Digital Couponing
3
Embeddable Checkouts
4
Post-PC Commerce
5
Enhanced In-Store Experience
purchase in-store or vice versa. We’ll explore 5 major digital shopping trends
So the question is no longer one of
that you’ll need to take advantage of to stay
eCommerce vs. traditional commerce,
ahead of the future of shopping.
Trends Report 2012 | Vol 10
5
6
“
“
Friends and family serve
as filters, marketers, and
salespeople.
1
The
Recommendation
Economy
chapter one
Trends Report 2012 | Vol 10
7
The Recommendation
Economy
friends and family serve as filters, marketers, and
salespeople
Setting up an attractive storefront used to be
Recommendation sites and apps have quickly
all it took to drive foot traffic, but nowadays
become a way for customers to discover
people will check an app like Yelp! or
and share reliable information about places
Foodspotting before even walking in. Whereas
and products. 40% of consumers rely more
word of mouth used to be confined to offline
on online recommendations from others than
conversations, digital word of mouth is instantly
marketing messages from retailers. Two primary
accessible and lasts forever--that bad review
approaches to discovery have emerged:
about a rude waitress from a year ago may still
social recommendations and
be harming your business today.
personalized recommendations.
The Internet is filled with great information
Social recommendation services focus on
about products. Finding what you truly covet
recommending goods or services based
is becoming more difficult as information
on what people, whom users trust, have
overload turns the Internet from friend to
recommended in the past.
foe unless you know where to find reliable
8
recommendations that cut through the
These social recommendations can come
noise. 64% of Millennials say personalized
in many forms: likes, tweets, blog posts,
recommendations based on their Facebook
and other user-generated media. Friends
profiles are helpful because there is too much
and family serve as filters, marketers, and
information out there.
salespeople.
New social apps are revamping recommendations. Pose is an app that
For example, as you rate movies you watch on Netflix, an algorithm is
makes it easy for mobile users to post photos of their wardrobe and get
comparing your rating to those of others who have rated the same film.
feedback from friends. People can also follow friends and tastemakers
Netflix then recommends a movie based on what those similar to you
to discover new looks.
have also watched. The same idea holds for Amazon.com. The site is
constantly recommending what “people like you” have purchased.
Foodspotting has emerged on the scene as a simple tool for
recommending food. Users snap a photo, tag a location, and review the
As users reveal new data like their location, their mood, or their budget,
food from the app. People can easily discover new meals nearby just by
personalization takes on a new meaning. Leveraging these new data
flipping through photos.
sources creates new opportunities and obstacles for marketers. The
good news is that with better user data, recommendations are more
Many people don’t like the things their friends like, though, which
relevant and personal, providing new ways to expand CRM efforts into
puts a limit on the effectiveness of relying on friends and family
social and mobile media.
recommendations. Personalized recommendation services primarily
filter goods and services based on a user’s past behaviors compared
If digital recommendations aren’t helping drive sales, it may be time to
to the past behaviors of similar users.
turn to another traditional tactic with a digital twist: digital couponing.
Personal Recommendations
US Internet User’s Attitudes
I’d prefer to discover things on my own
82%
76%
68%
79%
Online consumer opinions
49%
It feels like Big Brother is watching me
82%
Opt-in emails
67%
40%
Brand websites
It depends on how good the recommendations are
Websites Based on Their
Generation / Jun 2011
80%
55%
Search ads
43%
21%
This makes me feel violated
72%
Online video ads
52%
19%
55%
Online banner ads
There is too much info out there, so I think this is helpful
16%
64%
52%
Social network ads
15%
13%
Recommendations on
Facebook Profile by
72%
35%
Mobile ads
Towards Personalized
31%
Types of Ads/
Recommendations Trusted by
US Consumers / Q1 2011
It helps me make decisions quicker
51%
32%
22%
ages 20-33
*Source: The Nielsen Company, “Trends in Advertising Spend and Effectiveness,” June 2010
ages 34-46
ages 47-66
*Source: JWT Intelligence, “Social Commerce”, July 1 2011
Trends Report 2012 | Vol 10
9
The Recommendation Economy Game Plan
one
two
three
four
five
Amplify
recommendations
from friends and
tastemakers.
Connect with
your audience
where they make
recommendations.
Make
recommendations
accessible
everywhere.
Provide signal,
not noise.
Highlight quality
Reward
those who
recommend.
recommendations that
Loyalty programs make
Facebook’s Sponsored Stories
Use social media to insert
Encourage shoppers to
will make an impact.
it easy to reward people
scan QR codes that lead to
Consumers have good
who make a purchase, but
customer product reviews
noses for astroturfing, paid
new digital techniques,
to aid them in their decision
reviews, and other ways
like gamification, makes it
making and reduce the
that brands try to buy
possible to reward people
burden on salespeople
online recommendations.
with virtual currencies or
loyalty points that can be
are one approach that make
it easy to show potential
customers that their friends
recommend and love your
your brand into conversations
about your products in a
way that adds value to the
conversation and doesn’t
brand. Using services like Klout
come across as blatant
make it easy to recognize and
marketing. Twitter makes it
who are working with
Reducing the amount
easy to track conversations
someone else. Consider
of useless info customers
used to access exclusive
using the brand website as
have to sift through online
content, purchase gifts
an aggregator of positive
is a service brands are
cards, and other
sentiment surrounding the
increasingly expected
incentives for sharing
product online.
to provide.
and recommending
engage with influencers within
your product category that
serve as digital tastemakers
with large audiences.
and brand mentions that can
serve as a way of reinforcing
a social recommendation or
starting a 1-to-1 conversation
with a future loyal customer.
Fashion and beauty brands
can establish a presence
on services like Pose to
recommend looks and
interact with fans.
10
your product.
Gap uses Pinterest to recommend new
products, styles, and promotions from the
clothing retailer.
source: http://pinterest.com/gap/
Foodspotting is a popular
mobile restaurant
recommendation tool that
leverages user-generated
photos and geotargeting
to recommend restaurants.
Pose is a mobile social
fashion community where
shoppers can share photos
of their latest purchases,
looks, and wants.
Consmr is a web service for people
who want to review consumer
packaged goods and get personalized
recommendations for other products
they’ll like.
source: http://consmr.com
Netflix’s personalized recommendations are driven by
predicting what you’ll love based on what users with
similar taste have liked in the past.
source: http://netflix.com
Trends Report 2012 | Vol 10
11
“
12
Reward brand loyalists as they begin to emerge and advocate for you.
“
2
Digital Couponing
chapter two
Trends Report 2012 | Vol 10
13
Digital Couponing
reward brand loyalists as they begin to emerge and
advocate for you
We know coupons can drive sales. Digital
2011 found that 45% of people who engage
couponing presents an opportunity to
with a brand on social media are primarily
drive sales while also building long term
seeking deals and discounts.
engagement with shoppers. Digital makes it
easy to use coupons as a platform for
Brands like Pretzel Crisps and Jimmy Dean
building and growing your online audience
have found innovative ways to use digital
from couch to shelf while expanding your
couponing to boost brand awareness and
direct marketing database.
drive trial. For example, if shoppers shared
Jimmy Dean coupons with 3 friends, they’d get
Digital print-at-home coupons have given
a deeper discount. Pretzel Crisp “like-gated”
rise to a new breed of coupon clippers that
its coupons by only making them available to
use personal printers instead of newspapers
people who liked the brand on Facebook.
to get their coupons. Many grocery shoppers
now rely on sites like Coupons.com to discover
Top 5 Sites from which US Internet Users
great coupons before they head out to the
Download Digital Coupons / Feb 2011
store. Smartphone adoption has also made
Coupons.com
digital coupons more appealing to consumers
Groupon
as deals can now be targeted directly to a
47.3%
32.5%
SmartSource.com
phone based on time and location.
25.6%
Valpak
13.3%
The growth of digital couponing has become
Living Social
entrenched as an important aspect of digital
RetailMeNot
marketing to online consumers. A survey in
*Source: Morpace, “Online coupon sites offer increasing
CouponMom.com
opportunities for retailers,” Mar 1, 2011
12.2%
12.0%
11.9%
Ebates
9.1%
CouponCabin
8.3%
The Coupon Clippers
8.3%
FatWallet.com
4.8%
14
CouponAlbum
1.1%
Other
27.9%
Frequency with which US Internet Users
Forward Daily Deal Emails or E-Newsletters to
Friends or Family / Feb 2011
By using this social couponing strategy, Pretzel
Mobile couponing has also given new life to an
Crisps was able to go from less than 500 fans in
old payment technology: the credit card. AmEx
June 2010 to more than 150,000 fans within a few
has recently partnered with Foursquare to make
months. Jimmy Dean was able to get a 64% referral
deal redemption quick and easy, removing
rate promoting the social coupons with the deeper
coupons entirely by applying the deals to the user’s
discount. This approach relies on influencer referrals.
statement at the end of the month. Swipely and
By providing valuable content to fans, brands trust
LevelUp are other companies choosing to build
that influential followers will spread their messages
on more than 170 million credit card holders in the
for them.
United States by linking credit cards to their services
12%
22%
10%
to simplify deal redemption.
New social services have altered the marketing
14%
landscape by offering new twists on deals.
Consumers are being driven to stores thanks
The meteoric rise of services like Groupon and
to recommendations and digital coupons, but
LivingSocial have paved the way for new entrants
sometimes you just need to close the deal.
into the daily deals space like Google Offers and
Digital also creates new opportunities to act
Fab.com. Groupon has even partnered with
on recommendations and deals by putting the
Foursquare to make it easier for users to discover
checkout in some unexpected places. With that12%
and redeem deals right at the point of purchase.
22%
in mind, we’ll move on to embedded
check-ins.
17%
5%
13%
6%
10%
The smartphone is increasingly used to discover
US Adult Mobile Coupon Users, 2010-2013
and save digital deals. While there were only 13.3
millions and % of adult mobile phone users
35.6
million Americans using mobile coupons in 2010,
14%
that number is expected to surpass 35.6 million
mobile coupon users by 2013. Apps like The Coupon
5%
19.8
App and Coupons.com make it easy to save store
loyalty cards and digital coupons in one place,
17%
28.7
13%
13.3
6%
*Source: Yahoo! Mail and Ipsos OTX MediaCT, “Consumer Pulse”,
Mar 3, 2011
removing the need to keep track of membership
cards and printed coupons. Placecast enables
merchants to push time-sensitive deals to nearby
2010
2012
2011
2013
smartphone owners whenever store traffic dies
down, optimizing the performance of a store’s
operating hours.
adult mobile coupon users
% of adult mobile phone users
*Source: eMarketer, Aug 2011
Trends Report 2012 | Vol 10
15
The Digital Couponing Game Plan
one
two
three
four
five
Research your
audience’s
needs.
Assess the
discount/coupon
technologies
supported by
partner retailers.
Determine
the reach of
digital coupon
partners.
Choose
promotion and
distribution
channels.
Convert leads
into loyalists.
Many digital couponing
Align the promotion and
Many times a CPG brand
sites have loyal followings
distribution of the deal
may have a great digital
in their own right. Choose
with the overall digital
couponing idea, but the
a digital couponing
strategy. Prioritize where
retail partner simply doesn’t
partner based upon their
to promote and distribute
have the technology to
reach unless you are
the deal across paid and
support the initiative in
experimenting with a new
owned media channels.
place. Double check
partner to drive innovation
In some instances it may
that vital partners in the
and brand learnings.
make sense to promote
When it comes to digital
couponing, customer’s
expectations vary. Use
social media as a way to
determine what products
have built loyalty and
reward those groups.
Researching the digital
behavior of your audience
will also assist in determining
the best channels for
promoting and distributing
the deal.
promotion all have the
a deal on Facebook or
supporting technology in
Twitter to generate earned
place for the discount.
media instead of relying on
a paid campaign to drive
meaningful conversion.
16
Digital coupon users are
a fickle crew. They love
your brand one minute
and complain about a
lack of deals the next.
Use digital coupons as a
lead generation tool that
enables your brand to follow
up with more meaningful
engagements later.
Highlight or find fun ways
to reward brand loyalists as
they begin to emerge and
advocate for you in social
media and offline.
source: http://www.adrants.com/images/jimmy_dean_
socialtwist.jpg
#
Jimmy Dean gave shoppers deeper discounts
in exchange for sharing coupons with their
friends, achieving a referral rate of over 50%.
Deals app LevelUp lets users link
their credit cards to their LevelUp
accounts so they can easily redeem
deals without having to print
anything or go through multiple
menus with staff.
source: http://www.qrcodepress.com/wpcontent/uploads/2012/03/LevelUp-MobilePayments-with-QR-Codes.jpg
Digital coupon clippers are more likely to
turn to sites like Coupons.com than waiting
anxiously for Sunday circulars.
source: http://coupons.com
AmEx and Twitter have partnered to launch
“Sync. Tweet. Save.” Twitter users who tweet
certain AmEx hashtags get savings at
participating merchants when they sync their
AmEx and Twitter accounts.
Groupon Now recommends
nearby deals by asking
people what they’re in the
mood for.
source: http://mediabistro.com
Trends Report 2012 | Vol 10
17
18
“
“
Eliminating the steps
between awareness
and purchase.
3
Embeddable
Checkouts
chapter three
Trends Report 2012 | Vol 10
19
Embeddable
Checkouts
eliminating the steps between awareness
and purchase
Today, practically every piece of digital
services are making it easier than ever to turn
content can be turned into a checkout.
a YouTube channel or brand website into a
The point of purchase has flattened, making
solid Home Shopping Network alternative. The
it possible to turn an image or a video into a
concept even expands into images thanks to
direct marketing vehicle.
in-image checkouts enabled by companies
like Thinglink, Stipple, and Luminate.
YouTube popularized embeddable content
by making it easy to copy and paste code to
In 2011 Facebook emerged as a new
put a video in any website or blog, and now
eCommerce platform that brands started
checkouts can be embedded in media just
taking seriously. Facebook apps make it
as easily.
possible to set up storefronts right in a brand’s
Facebook Page. Moontoast is a company that
By using services like Flite, brands are able
makes it possible to embed checkouts directly
to embed checkouts in rich media ads,
in a brand’s or user’s status updates, turning
eliminating the steps between awareness
the Newsfeed into a sales platform driven by
and purchase.
recommendations from people users trust.
Facebook’s importance as a commerce and
20
Liveclicker adds checkouts to a brand’s
referral channel will continue to grow through
online videos, and other video commerce
2012 and beyond. While some brands that
trialed Facebook commerce in 2011 shuttered their stores,
Top 5 Leading Business Challenges When
others have pioneered the use of social networks to
Implementing eCommerce Strategies According to
drive sales.
Retailers Worldwide / Dec 2011
Facebook now has Frictionless Sharing, meaning that
actions taken on different apps such as Spotify, Hulu, and
winners
laggards
even retailer apps show up in the Newsfeed or Timeline
without having to press Like or Share. Because of this, the
appeal of Facebook to brands is increasing.
Facebook apps like Payvment and Fab.com demonstrate
that Facebook can be a sales driver. Payvment’s Shopping
Mall app doubled its user base from 700,000 to near 1.5
million within January 2012. While the Newsfeed only
drives 9% of impressions, it drives more than 50% of referral
traffic. Fab.com has seen similarly impressive growth, with
*Source: Retail Systems Research, “eCommerce 2012: Back to the Future,” Jan 26, 2012
Facebook driving more referrals to the site than Google
(25.1% vs 23%). With more social-first retailers becoming
popular, users will face simpler options for Facebook
commerce that overcome many of the obstacles faced
by early adopter brands in 2011.
Trends Report 2012 | Vol 10
21
The Embeddable Checkouts Game Plan
one
two
three
four
five
Shareable
checkouts.
Always be
closing.
Make fans into
affiliates.
Make it as easy as possible
Every piece of digital media
Affiliate marketing
Focus on the
media that
matters.
for brand advocates to set
from rich media ads to
programs are expanding
Research the media
their friends on the path
apps can be a checkout. If
into the social space. Give
Track early
data signals
to anticipate
demand.
touchpoints that are most
Establish early warning
to purchase by including
conversion is a high priority
consumers the opportunity
influential in your category
systems for when new
share features in your
for your campaign, make it
to embed your digital
and plan accordingly.
products start to exceed
eCommerce systems. After
a priority to embed the path
storefront on their social
Don’t overextend your
sales expectations to get
confirming a sale, present
to purchase where possible.
media profiles or blogs and
campaign just because
ahead of future demand.
users the option to share the
If shoppers abandon
give them a cut of the sales
you can embed the
Analyzing real-time
purchase back out to their
a purchase in a digital
that they drive.
checkout everywhere. If
sales data can provide
social networks by using
checkout, use retargeting
video is important, focus
insights how to enhance
Like buttons or embeddable
to provide incentives that
on embedding checkouts
the effectiveness of a
social checkouts
would close the sale.
in online video players to
campaign to generate
test the approach and
more sales.
like Moontoast.
then expand into other
embeddable checkouts
when it makes sense for
your brand.
22
L’Oreal’s Makeup.com trialed rich media
ads with Flite that expanded into a
digital storefront when users clicked
“buy now” in the display unit.
Companies like Stipple, Thinglink and
Luminate make it possible to embed
the buy button into photos
Liveclicker turns your online videos into a
mini-Home Shopping Netnawork. Users
can click “Buy Now” while watching a
product video to complete a purchase.
and images.
Olay uses Moontoast to turn the
brand’s Facebook status updates into
embedded checkouts in the Newsfeed.
Trends Report 2012 | Vol 10
23
24
“
“
Optimizing for
future interfaces.
4
Post-PC
Commerce
chapter four
Trends Report 2012 | Vol 10
25
Post-PC Commerce
optimizing for future interfaces
Online shopping is moving from desktops and
make purchases through their phones, is
laptops to smartphones, tablets, and a host of
growing. People are buying things through their
emerging devices. Digital shopping is becoming
smartphones many of us would have balked at
a tactile experience, where shoppers can
purchasing just two years ago, such as plane
swipe, tap, rotate and demo a product from
tickets, appliances, and even cars.
a connected device before they decide
to purchase.
Q: How often do you perform these activites on
your tablet?
In 2011, mobile commerce accounted for
$6.7 billion in sales. 26.8 million Americans
completed purchases via mobile in 2011.
By the beginning of March 2012, more Americans
owned smartphones than featurephones. The
Post-PC future will be filled with upcoming stories
of new devices triumphing over their 20th century
counterparts. From smartphones to cars, new
devices will offer unique commerce experiences
in every environment.
With greater smartphone adoption comes new
opportunities for consumers to shop while they’re
on the go. Mobile commerce, where consumers
*Source: ComScore, Digital Omnivores: How Tablets, Smartphones and Connected Devices are Changing U.S. Digital Media
Consumption Habits, October 2011
26
Tablets are also vital to the future of shopping, as tablet adoption
is growing rapidly. After the 2011 holiday season tablet ownership
Tablets are quickly emerging as a new device
that shoppers are using to make purchases.
in the US nearly doubled from 10% to 19%. The tablet will be the
primary “couch commerce” device in a few years as laptops fall
by the wayside for the primetime shopping set. Research from
Adobe has shown that tablet users who visit retail sites have 21%
Have Completed a Purchase on a Tablet
in the Last Month / Sep 2011
greater purchase amounts than those who visit from desktops
and laptops.
Tablet users also use these devices to research products before
heading out to brick and mortars. 64% of tablet owners conduct
48%
52%
local searches each week, and 86% make a purchase based on
that search.
Connected TVs are an emerging platform for eCommerce, and
the technology is already available in 17 million households. Users
can now buy products through interactive channels through
*Source: ComScore, Digital Omnivores: How Tablets, Smartphones and Connected Devices are Changing U.S. Digital Media Consumption Habits, October 2011
services from cable and satellite providers. The History Channel
piloted a system on Verizon FiOS that made it possible to shop
items related to different shows in a sidebar on their TV while
watching the channel.
Consumers Prefer to Shop on Tablets when Possible
The cars of the future will be connected as well, enabling new
online shopping opportunities during one’s commute. McDonald’s
in Japan is testing a program that lets people order meals
from their cars en route to the restaurant, reducing wait times
during busy periods of the day. Future in-car app systems from
companies like Ford and Toyota will likely focus on enabling
eCommerce as radio’s formerly captive audience looks for new
distractions in the connected car of the future.
*Source: Forrester/BizInsights, Tablet Commerce Flash Online Survey, Q2 2011
Trends Report 2012 | Vol 10
27
The Post-PC Commerce Game Plan
one
two
three
four
five
Optimize for the
web.
Anticipate future
interfaces.
User experience is key
The limitation of many
unifier. The rapid adoption
Smartphones are now
Take a test and
learn approach
to emerging
devices.
Reduce payment
friction.
The Web is the great digital
Get ahead
of tablet
commerce.
to driving commerce
emerging devices is the
on connected devices.
user interface. Image,
Consider the steps that
audio, and gesture
people have to go through
recognition technologies
to make a purchase on
will make it easier to shop
a smartphone or tablet.
on new platforms. Simplify
Recognize that a shopper
your eCommerce process in
on the go may not want to
order to build an experience
have to type out all their
that works easily regardless
credit card information into
of where people want
a smartphone interface.
to shop.
of HTML5, a set of new web
the norm for US shoppers.
Many devices are now
development standards, by
Brands are expected
capable of accessing the
web developers has shown
to be accessible on a
Internet, but not all of them
that Web apps can deliver
smartphone. Tablets are
need to be part of your
experiences on par with
different. Adoption of
digital strategy. Running pilot
many native apps. If you’re
tablets is low but continues
programs or experimental
confused about where to
to increase with each
buys on emerging platforms
get started, optimize your
shopping season. The
like connected TV can
eCommerce site for mobile
number of tablet owners
provide valuable insights
phones and then move
doubled to 20% of
and future learnings but are
from there.
Americans during the 2011
unlikely to revolutionize your
holiday season alone.
business overnight.
clicks/taps between “add
Optimizing your digital
to cart” and “purchase
shopping experience for
confirmed” as much
tablets should be a priority
as possible.
for 2012.
28
Reduce the amount of
British retailer ASOS demonstrates
how simplicity is key when designing a
mobile commerce site.
google-catalogs-now-available-for-
The History Channel and Verizon FiOS
released a widget that brings up items
to buy alongside the TV show while
it’s on, spurring purchases of products
associated with the channel’s shows.
android-tablets-20111128/
source: http://wekellergroup.com/blog/
Google Catalogs is an app for
tablets that turns old-fashioned
catalogs into digital storefronts.
source: http://androidcommunity.com/
bid/79163/Why-History-Channel-s-ShoppingWidget-is-a-T-Commerce-Breakthrough
McDonald’s Japan is testing an in-car
ordering system that would make it
possible to place an order before
arriving, completely bypassing the
drive-thru.
source: http://japan-days.com/pictures.html
Trends Report 2012 | Vol 10
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30
“
“
Emerging media can be used to make
brick and mortar stores a destination
worth experiencing.
5
Enhanced In-Store
Experiences
chapter five
Trends Report 2012 | Vol 10
31
Enhanced In-Store
Experiences
The smartphone is a shopper’s Swiss Army Knife
“A store has got to be much more than a place
38% of shoppers called friends for advice before
to acquire merchandise. It’s got to help people
making a purchase. More than 24% of shoppers
enrich their lives. If a store just fulfills a specific
looked up product reviews or online prices via
product need, it’s not creating new types of
their mobiles in the store. Retailers are having
value for the consumer. It’s transacting,” says
to discover new ways to keep the attention of
Ron Johnson, CEO of JCPenney and creator of
smartphone wielding shoppers who use price
the Apple Store.
scanning apps to find a better deal a block
away or online.
While the online world has been transforming
itself, the physical world hasn’t been exactly
standing still. The Apple Store, for one, has
Changes in Smartphone Ownership, 2011-2012
become a cultural phenomenon as much as
a commercial one. The integration of great
customer service at the Genius Bar and useful
technologies like concierge have made the
Apple Store an experience worth visiting.
With the smartphone, Apple’s effect on retail
moves beyond the Apple Store. More than
50% of shoppers used their smartphones while
shopping during the 2011 holiday season.
*Source: Pew Research Center’s Internet & American Life Project, Apr 26-May 22, 2011 and Jan 20-Feb 19, 2012 tracking surveys.
32
Technology makes it easier for customers to help themselves.
customers will love and return to. Equipping the sales floor with mobile POS
The smartphone is a shopper’s Swiss Army Knife. Barcode scanners
systems eliminates the hassles of waiting in line for the shopper. Programs
make it easy to comparison shop with the added benefit of seeing and
like Macy’s Backstage Pass lets customers get expert tips directly in the
touching the physical product. Apps like Thumb and Pose make it easy
store. The Home Depot developed a mobile app that gives users in-store
for shoppers to turn to their social networks for real-time advice on what
guides, making stores easier to navigate.
to buy.
Integrating technology into retail isn’t merely style over substance.
One approach retailers and brands have taken is to extend the
Retailers need to focus on which technologies make sense for providing
physical into the digital by using barcode scanners or audiotagging to
a better experience for their shoppers. Retail technology development
make it easy for customers to get more information about products on
should still remain focused on driving better customer service. The
their phones. Best Buy uses QR codes to link to product reviews. Calvin
difference is that nowadays the “service” may be to get out of the
Klein partnered with Shazam and made it possible to “tag” certain
customer’s way or let a digital kiosk serve as a surrogate salesperson that
messages over the store PA system to unlock deals and access other
helps consumers help themselves.
branded content.
Emerging media can be used to make brick and mortar stores a
destination worth experiencing. Whether it’s salespeople equipped with
their own devices or a retail environment laden with technology, digital
can play an important role in revamping the retail experience into one
How Americans used their phones for help with in-store
purchasing decisions this holiday season
More than 50% of shoppers used
their smartphones while shopping
during the 2011 holiday season. 38%
of shoppers called friends for advice
before making a purchase. More than
24% of shoppers looked up product
reviews or online prices via their
mobiles in the store.
*Source: Pew Research Center’s Internet & American Life Project, Jan 5-8 2012
Omnibus survey.
Trends Report 2012 | Vol 10
33
The In-Store Experience Game Plan
one
two
three
four
five
Enable customers
to learn more
in-store.
Empower
people to help
themselves.
Build retail
destinations,
not stores.
Apply data to
drive foot traffic.
Acknowledge that people
Smartphones enable
Regardless of whether it’s
times of day are the busiest
are going to do research
consumers to do more
a brick and mortar retailer
and which are the slowest.
while they’re in your store
than just research products.
Arm your staff
with the same
technology your
shoppers are
using.
or online storefront, the
Tools like Foursquare,
and make it easy for them to
Companies like Apple
environment dictates how
Groupon Now, and
access the best information
are making it easy for
consumers feel about
Quickerfeet make it possible
while they’re still at retail.
customers to shop in-store
a brand. In a world of
to drive these time-sensitive
QR codes to product
and complete the purchase
free shipping, driving
deals that overcome lulls in
reviews, and digital
on their smartphones
foot traffic to bricks and
daily business. More retailers
signage with product
without having to wait in a
mortars becomes a serious
are also running analytics
demonstrations, can be
checkout line. New payment
challenge. Find ways to
on store security videos to
used to make it easy for
technology systems from
embed technology in
research shopper behavior
people to conduct research
companies like PayPal and
the retail environment
and create better
while they’re at the point
Card.io will simplify the self-
that enhances customer
shopping experiences.
of sale.
checkout process.
Use customer feedback
from digital channels
to keep salespeople
informed of any concerns
or questions that customers
may ask about a product.
Tech savvy salespeople
could make use of mobile
video and other features to
help cautious consumers
feel more comfortable with
the purchase.
service to create shopping
destinations that customers
love and want to come
back for.
34
Smart merchants know what
Adidas and Intel partnered to create
a digital shoe rack in an Adidas store,
letting customers browse over 8,000
different looks from a single shelf.
source: http://www.headspinmedia.co.uk/
news/
Smartphones are the shopper’s Swiss
Army Knife. Redlaser is a barcode
scanner that comparison shops for
better deals while you’re in the store.
Nieman Marcus has launched NM
Service, an app for both shoppers and
salespeople. When shoppers walk into
a Neiman Marcus, salespeople are
notified of the shopper’s like, dislikes,
and past purchases. Shoppers can
easily look up available
associates in-store.
Tesco’s QR code subway storefront
made it possible to scan QR codes,
buy groceries, and have them
delivered to a shopper’s house during
their subway commute.
Calvin Klein partnered with Shazam to
deliver exclusive content to shoppers
who tagged the audio playing in
Calvin Klein stores.
source: http://www.iqmetrix.com/
article/2011/08/daily-dose-iq-tesco-qr-codeshopping-takes-korea
source: http://www.luxurydaily.com/
neiman-marcus-aims-for-ultimate-in-storeexperience-through-mobile/
Trends Report 2012 | Vol 10
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Conclusion
The role of digital in the future of shopping goes beyond a fancier eCommerce experience on your website. As digital
pervades life and lifestyle, infusing technology into the shopping experience is becoming a necessity rather than an option.
However, that is no reason to fear change. The five trends presented here represent tremendous opportunity to delight your
customers, drive sales and achieve sustainable competitive advantage.
Here are some principles to guide you on your way:
Focus
If you do it offline, do it online
Good strategy focuses strength against opportunity.
Sometimes, the decision is easy. If you see an activity
Rather than tackle all five trends at once, think about
that made you successful in the physical world converting
what’s most relevant to your brand’s values and your
to a digital space, begin a test and learn that program
consumers needs. Look at what your competition is doing
immediately. If your category is coupon driven, digital
and see where they’ve found success. Don’t jump on a
couponing is a must.
new fad just because it got some favorable ink in the
trade press.
If in-store displays spur sales, start developing smart
interactive digital signage. If consumers are willing to buy
your product online, design a tablet experience.
36
Arm your salespeople
Do it NOW!
Smartphone penetration is growing north of 50%. It’s a fair
The amount of disruption happening in retail is monumental.
bet that your customers are shopping with one in hand,
Most of the important innovation has taken place in just
especially in younger demographics. So while they might
the past few years and the rate of adoption is astounding.
be browsing in your store, they very well might be shopping
A “wait-and-see” approach is not only inadvisable,
somewhere else.
it’s untenable.
Make sure that your salespeople are walking the aisles with
You don’t need to get it absolutely right the first time.
a post-PC device armed with a proprietary app that gives
Consumers are willing to forgive the occasional snafu in the
them access to inventory, pricing and online reviews. Rather
service of innovation. You can fail fast, small and cheap now
than ignoring the mobile Internet, you can turn it to your
or spend the next few years playing catch up.
advantage.
The choice is clear. Good luck!
Design an experience, not just a
purchase opportunity
Retail has become much more than simple intermediation.
If all consumers cared about was price and selection,
eCommerce would be dominant. People want to go
to physical stores, be serviced well and walk out with a
shopping bag on their arm. Transactions are a commodity,
and pleasurable, tactile experiences make life worth living.
Trends Report 2012 | Vol 10
37
Authors
Rhiannon Apple, VP, Trends
Ivy Chang, Trendspotter
Rebecca May, Trends Intern
Simeon Spearman, Digital Strategist
Greg Steen, Sr. Trendspotter
Contact
Rhiannon Apple, VP, Trends
[email protected]
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Atlanta, GA | 30313
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