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THE EVOLUTION OF SHOPPING

                 March 2012


                   PREPARED BY:
                  Architect Partners
               Dr. Phil Hendrix (IMMR)
       Special Thanks to Deepak Ravichandran
TABLE OF CONTENTS



SHOPPING IS EVOLVING ..............................................................................................................................................                               3
FRAMEWORK FOR UNDERSTANDING INNOVATION ...................................................                                                                                                       10
INNOVATORS ...................................................................................................................................................................................   13




                                                                                                        2
SHOPPING IS EVOLVING




         3
SHOPPING IS           FRAMEWORK TO
  EVOLVING         UNDERSTAND INNOVATION   INNOVATORS


MOBILE DEVICES ARE BECOMING INTEGRAL TO SHOPPING ...




                        ONLINE




 IN - STORE                                MOBILE


                             4
SHOPPING IS                FRAMEWORK TO
 EVOLVING              UNDERSTAND INNOVATION            INNOVATORS


    ... COMPLEMENTING BOTH IN-STORE AND ONLINE.

IN -STORE                                                ONLINE




                             BRANDS




                MOBILE                         MOBILE
              Rewards Zone                      Store
                                 5
SHOPPING IS           FRAMEWORK TO
 EVOLVING         UNDERSTAND INNOVATION    INNOVATORS


    ALSO, LOCATION AWARENESS IS NOW A GIVEN ...




                            6
SHOPPING IS           FRAMEWORK TO
    EVOLVING         UNDERSTAND INNOVATION   INNOVATORS


       ... AND SOCIAL SIGNALS BRING NEW INSIGHTS.


WORD-OF-MOUTH TURBOCHARGED
CAN CONVEY PURCHASE INTENT
DEMONSTRATES INTERESTS AND DESIRES
PROVIDES REAL-TIME CUSTOMER FEEDBACK




                               7
SHOPPING IS               FRAMEWORK TO
  EVOLVING             UNDERSTAND INNOVATION               INNOVATORS


         WHY SHOULD RETAILERS & BRANDS CARE?


INCREASE TRAFFIC                     Get customers shopping, in your store
INCREASE CONVERSION                  Get customers to buy now
INCREASE TRANSACTION SIZE            Get customers to buy more
IMPROVE SATISFACTION                 Get customers to repeat




                            ONLINE



               STORE                                MOBILE
                                 8
SHOPPING IS               FRAMEWORK TO
      EVOLVING             UNDERSTAND INNOVATION                INNOVATORS


                   KEY THEMES DRIVING INNOVATION


SHOPPING AS AN INTEGRATED           Integrating in-store, on-line and mobile
EXPERIENCE                          shopping increasingly essential.

PERSONALIZED MARKETING              Marketing messages are everywhere and
                                    increasingly personalized.

EASIER OPTION DISCOVERY             Customers embracing powerful mobile
AND PRE-PURCHASE RESEARCH           shopping tools, resources and information.
                                    Happening both outside and inside stores.

HARVESTING DATA AND                 Collecting data and converting into actionable
TRANSLATE INTO INSIGHTS             insights and actions, increasingly real-time.
                                    Mobile, location and social bring new,
                                    extremely valuable datasets.



                                     9
FRAMEWORK TO UNDERSTAND
      INNOVATION




           10
SHOPPING IS                       FRAMEWORK TO
 EVOLVING                     UNDERSTAND INNOVATION                    INNOVATORS


   THE FUNDAMENTALS OF SHOPPING STILL STAND ...


                                      ATTRACT
                                     CUSTOMER


                  ENCOURAGE                       HELP THEM
                    REPEAT                          LEARN




               ENCOURAGE &                                CONVERT TO
              MANAGE SOCIAL                               PURCHASER
                 SIGNALS



                              HELP            SUGGEST
                              THEM           ADDITIONAL
                               PAY           PURCHASES



                                        11
SHOPPING IS                       FRAMEWORK TO
 EVOLVING                     UNDERSTAND INNOVATION                    INNOVATORS


     SO, LET’S USE THIS FRAMEWORK FOR CONTEXT


                                      ATTRACT
                                     CUSTOMER


                  ENCOURAGE                       HELP THEM
                    REPEAT                          LEARN




               ENCOURAGE &                                CONVERT TO
              MANAGE SOCIAL                               PURCHASER
                 SIGNALS



                              HELP            SUGGEST
                              THEM           ADDITIONAL
                               PAY           PURCHASES



                                        12
INNOVATORS




    13
SHOPPING IS                          FRAMEWORK TO
      EVOLVING                        UNDERSTAND INNOVATION                   INNOVATORS


                                              ATTRACT
                                             CUSTOMER

ADVERTISING               ENCOURAGE                PROMOTION
                                                          HELP THEM
Location Specialist         REPEAT                 Coupons LEARN




Search + SEM                                       Deals
                       ENCOURAGE &                               CONVERT TO
Display &             MANAGE SOCIAL                Flash Sales   PURCHASER
In-Application           SIGNALS

                                                   CREATE SOCIAL
                                                   SIGNALS
                                      HELP            SUGGEST
                                      THEM           ADDITIONAL
Social                                 PAY           PURCHASES
Video
                                                   MARKETING
SMS / Text                                         MANAGEMENT



Email                                              E-/MOBILE
                                                   COMMERCE
                                                14 PLATFORM
SHOPPING IS                        FRAMEWORK TO
     EVOLVING                      UNDERSTAND INNOVATION                     INNOVATORS


                                           ATTRACT
                                          CUSTOMER

REVIEWS
                       ENCOURAGE                         HELP THEM
                         REPEAT                            LEARN




PRICE AND
AVAILABILITY        ENCOURAGE &                   IN-STORE      CONVERT TO
                   MANAGE SOCIAL                  NAVIGATION    PURCHASER
                      SIGNALS

                                                  ONLINE
                                                  MERCHANDISING /
AUGMENTED                          HELP           PERSONALIZATION
                                                     SUGGEST
REALITY                            THEM            ADDITIONAL
                                    PAY            PURCHASES
IN-STORE
ASSISTED SELLING




                                             15
SHOPPING IS                     FRAMEWORK TO
    EVOLVING                   UNDERSTAND INNOVATION                    INNOVATORS


                                       ATTRACT
                                      CUSTOMER


CONVERSION         ENCOURAGE                        HELP THEM
MANAGEMENT           REPEAT                           LEARN




DISTRIBUTED     ENCOURAGE &                                CONVERT TO
STORE PLATFORM MANAGE SOCIAL                               PURCHASER
                  SIGNALS

AD RETARGETING
                               HELP            SUGGEST
                               THEM           ADDITIONAL
                                PAY           PURCHASES




                                         16
SHOPPING IS                       FRAMEWORK TO
      EVOLVING                     UNDERSTAND INNOVATION                    INNOVATORS


                                           ATTRACT
                                          CUSTOMER

UPSELL / CROSS-SELL
RECOMMENDATIONS        ENCOURAGE                        HELP THEM
                         REPEAT                           LEARN




IN-STORE
ASSISTED SELLING    ENCOURAGE &                                CONVERT TO
                   MANAGE SOCIAL                               PURCHASER
                      SIGNALS
AD RETARGETING


                                   HELP            SUGGEST
                                   THEM           ADDITIONAL
                                    PAY           PURCHASES




                                             17
SHOPPING IS                       FRAMEWORK TO
 EVOLVING                     UNDERSTAND INNOVATION                   INNOVATORS


                                    ATTRACT
                                   CUSTOMER
                                MOBILE WALLET

                  ENCOURAGE                       HELP THEM
                    REPEAT                          LEARN

                                CARRIER BILLING


                                VIRTUAL
               ENCOURAGE &      CURRENCY                 CONVERT TO
              MANAGE SOCIAL                              PURCHASER
                 SIGNALS
                                PAYMENT
                                INFRASTRUCTURE

                              HELP           SUGGEST
                              THEM          ADDITIONAL
                               PAY          PURCHASES




                                       18
SHOPPING IS                       FRAMEWORK TO
 EVOLVING                     UNDERSTAND INNOVATION                    INNOVATORS


                                    ATTRACT
                                   CUSTOMER
                                  SOCIAL
                  ENCOURAGE       NETWORKS
                                                    HELP THEM
                    REPEAT                            LEARN
                                  SHARE
                                  PURCHASES

                                  REVIEW
               ENCOURAGE &                                CONVERT TO
              MANAGE SOCIAL                               PURCHASER
                 SIGNALS
                                   SOCIAL NETWORK
                                   ENGAGEMENT &
                              HELPMONITORING SUGGEST
                              THEM           ADDITIONAL
                               PAY           PURCHASES


                                  SOCIAL REFERRAL
                                  PLATFORM




                                       19
SHOPPING IS                       FRAMEWORK TO
 EVOLVING                     UNDERSTAND INNOVATION                  INNOVATORS


                                    ATTRACT
                                   CUSTOMER


                  ENCOURAGE                       HELP THEM
                    REPEAT                          LEARN
                                 LOYALTY &
                                 REWARDS




               ENCOURAGE &                              CONVERT TO
              MANAGE SOCIAL                             PURCHASER
                 SIGNALS         CLIENTING
                                 SOFTWARE


                              HELPCUSTOMER  SUGGEST
                              THEMSUPPORT  ADDITIONAL
                               PAY         PURCHASES




                                 BRANDED                Numerous Service Providers
                                 APPLICATIONS

                                       20
SHOPPING IS                       FRAMEWORK TO
 EVOLVING                     UNDERSTAND INNOVATION                    INNOVATORS


                                      ATTRACT
                                     CUSTOMER
ESTABLISHED VENDORS                                          SPECIALISTS
                  ENCOURAGE                        HELP THEM
                    REPEAT                           LEARN




               ENCOURAGE &                                CONVERT TO
              MANAGE SOCIAL                               PURCHASER
                 SIGNALS



                              HELP            SUGGEST
                              THEM           ADDITIONAL
                               PAY           PURCHASES




                                        21
The Evolution of Shopping

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The Evolution of Shopping

  • 1. THE EVOLUTION OF SHOPPING March 2012 PREPARED BY: Architect Partners Dr. Phil Hendrix (IMMR) Special Thanks to Deepak Ravichandran
  • 2. TABLE OF CONTENTS SHOPPING IS EVOLVING .............................................................................................................................................. 3 FRAMEWORK FOR UNDERSTANDING INNOVATION ................................................... 10 INNOVATORS ................................................................................................................................................................................... 13 2
  • 4. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS MOBILE DEVICES ARE BECOMING INTEGRAL TO SHOPPING ... ONLINE IN - STORE MOBILE 4
  • 5. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ... COMPLEMENTING BOTH IN-STORE AND ONLINE. IN -STORE ONLINE BRANDS MOBILE MOBILE Rewards Zone Store 5
  • 6. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ALSO, LOCATION AWARENESS IS NOW A GIVEN ... 6
  • 7. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ... AND SOCIAL SIGNALS BRING NEW INSIGHTS. WORD-OF-MOUTH TURBOCHARGED CAN CONVEY PURCHASE INTENT DEMONSTRATES INTERESTS AND DESIRES PROVIDES REAL-TIME CUSTOMER FEEDBACK 7
  • 8. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS WHY SHOULD RETAILERS & BRANDS CARE? INCREASE TRAFFIC Get customers shopping, in your store INCREASE CONVERSION Get customers to buy now INCREASE TRANSACTION SIZE Get customers to buy more IMPROVE SATISFACTION Get customers to repeat ONLINE STORE MOBILE 8
  • 9. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS KEY THEMES DRIVING INNOVATION SHOPPING AS AN INTEGRATED Integrating in-store, on-line and mobile EXPERIENCE shopping increasingly essential. PERSONALIZED MARKETING Marketing messages are everywhere and increasingly personalized. EASIER OPTION DISCOVERY Customers embracing powerful mobile AND PRE-PURCHASE RESEARCH shopping tools, resources and information. Happening both outside and inside stores. HARVESTING DATA AND Collecting data and converting into actionable TRANSLATE INTO INSIGHTS insights and actions, increasingly real-time. Mobile, location and social bring new, extremely valuable datasets. 9
  • 10. FRAMEWORK TO UNDERSTAND INNOVATION 10
  • 11. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS THE FUNDAMENTALS OF SHOPPING STILL STAND ... ATTRACT CUSTOMER ENCOURAGE HELP THEM REPEAT LEARN ENCOURAGE & CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS HELP SUGGEST THEM ADDITIONAL PAY PURCHASES 11
  • 12. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS SO, LET’S USE THIS FRAMEWORK FOR CONTEXT ATTRACT CUSTOMER ENCOURAGE HELP THEM REPEAT LEARN ENCOURAGE & CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS HELP SUGGEST THEM ADDITIONAL PAY PURCHASES 12
  • 14. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER ADVERTISING ENCOURAGE PROMOTION HELP THEM Location Specialist REPEAT Coupons LEARN Search + SEM Deals ENCOURAGE & CONVERT TO Display & MANAGE SOCIAL Flash Sales PURCHASER In-Application SIGNALS CREATE SOCIAL SIGNALS HELP SUGGEST THEM ADDITIONAL Social PAY PURCHASES Video MARKETING SMS / Text MANAGEMENT Email E-/MOBILE COMMERCE 14 PLATFORM
  • 15. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER REVIEWS ENCOURAGE HELP THEM REPEAT LEARN PRICE AND AVAILABILITY ENCOURAGE & IN-STORE CONVERT TO MANAGE SOCIAL NAVIGATION PURCHASER SIGNALS ONLINE MERCHANDISING / AUGMENTED HELP PERSONALIZATION SUGGEST REALITY THEM ADDITIONAL PAY PURCHASES IN-STORE ASSISTED SELLING 15
  • 16. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER CONVERSION ENCOURAGE HELP THEM MANAGEMENT REPEAT LEARN DISTRIBUTED ENCOURAGE & CONVERT TO STORE PLATFORM MANAGE SOCIAL PURCHASER SIGNALS AD RETARGETING HELP SUGGEST THEM ADDITIONAL PAY PURCHASES 16
  • 17. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER UPSELL / CROSS-SELL RECOMMENDATIONS ENCOURAGE HELP THEM REPEAT LEARN IN-STORE ASSISTED SELLING ENCOURAGE & CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS AD RETARGETING HELP SUGGEST THEM ADDITIONAL PAY PURCHASES 17
  • 18. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER MOBILE WALLET ENCOURAGE HELP THEM REPEAT LEARN CARRIER BILLING VIRTUAL ENCOURAGE & CURRENCY CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS PAYMENT INFRASTRUCTURE HELP SUGGEST THEM ADDITIONAL PAY PURCHASES 18
  • 19. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER SOCIAL ENCOURAGE NETWORKS HELP THEM REPEAT LEARN SHARE PURCHASES REVIEW ENCOURAGE & CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS SOCIAL NETWORK ENGAGEMENT & HELPMONITORING SUGGEST THEM ADDITIONAL PAY PURCHASES SOCIAL REFERRAL PLATFORM 19
  • 20. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER ENCOURAGE HELP THEM REPEAT LEARN LOYALTY & REWARDS ENCOURAGE & CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS CLIENTING SOFTWARE HELPCUSTOMER SUGGEST THEMSUPPORT ADDITIONAL PAY PURCHASES BRANDED Numerous Service Providers APPLICATIONS 20
  • 21. SHOPPING IS FRAMEWORK TO EVOLVING UNDERSTAND INNOVATION INNOVATORS ATTRACT CUSTOMER ESTABLISHED VENDORS SPECIALISTS ENCOURAGE HELP THEM REPEAT LEARN ENCOURAGE & CONVERT TO MANAGE SOCIAL PURCHASER SIGNALS HELP SUGGEST THEM ADDITIONAL PAY PURCHASES 21