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From Clicks to Bricks
Driving footfall in-store through
digital innovation
In-Store	is	Sti	ll	the	Primary
Revenue	Earner	
Consumers	globally	have	rapidly	
adopted	digital	retail	channels.	
Online	retail	sales	in	the	US	are	
expected	to	reach	$370	billion	in	
2017,	up	from	$231	billion	in	2012.	
However,	this	does	not	ring	a	death	
knell	for	brick-and-mortar	retail	
stores.	Despite	the	rapid	double-
digit	growth	rate	of	e-business,	
online	channels	are	expected	to	
contribute	to	only	around	10%	of
all	US	retail	sales	by	20171	
.	The	
physical	store	sti	ll	remains	the	
primary	point	of	sale	for	a	large	
proporti	on	of	consumers.	
Figure 1: Percentage of Consumers Preferring In-store vs. Online Experience
Source: Wanderful Media Research, December 2012
2
During 2011, US store
sales conversion rates
were 14 times higher
than their e-business
counterparts.
Online channels are
expected to contribute
to only around 10% of
all US retail sales by
2017.
In-store Online
16%
40%
13%
50%
12%
51%
Better
customer service
Getting answers
for questions
Establishing relationship
with merchant
Majority of Consumers
Prefer to Shop In-Store
A	US	survey	shows	that	consumers	
prefer	the	in-store	experience	for	
a	variety	of	reasons	(see	Figure	
1)2
.	Physical	stores	help	consumers	
establish	a	relati	onship	with	the	
merchant,	get	immediate	answers	
to	questi	ons	and	get	access	to	
bett	er	service.	From	a	retailer	
perspecti	ve,	this	highlights	the	
areas	where	they	need	to	conti	nue	
innovati	ng	in	order	to	stay	relevant	
to	the	digital	consumer.
In-Store Sales
Conversions are Higher
Compared to Online
Another	key	factor	that	makes	
physical	stores	indispensable	
to	retailers	is	the	higher	sales	
conversion	rates	that	they	achieve.	
A	study	indicates	that	during	
2011,	US	store	sales	conversion	
rates	were	14	ti	mes	higher	than	
their	e-business	counterparts3
.	
Driving	more	traffi		c	in-store	has	an	
immediate	impact	on	accelerati	ng	
sales.
Digital	technologies	can	help	
retailers	match	consumer	interest	
in	online	channels	with	the	higher	
sales	conversion	benefi	ts	of	
physical	stores.	
In	the	next	secti	on,	we	discuss	
which	digital	services	have	the	
potenti	al	to	drive	in-store	traffi		c	
and	increase	revenues.
Digital	Tools	Drive
Additi	onal	In-Store	Revenues	
Digital	technologies	have	
pervaded	all	segments	of	the	
consumer	purchase	cycle.	They	
allow	customers	to	make	purchase	
decisions,	locate	retail	stores	or	
avail	discounts.	We	identi	fi	ed	
a	set	of	13	such	digital	services	
that	consumers	can	use	across	
the	purchase	cycle.	All	of	these	
services	are	relevant	at	diff	erent	
points	of	the	purchase	cycle	–	
from	customer	communicati	on	to	
aft	er-sales	customer	relati	onships	
(see	Figure	2).	
Interesti	ngly,	retailers	are	already	
using	some	of	these	digital	
services	and	seeing	positi	ve	
results.	For	instance,	in	mid-
2011,	Seatt	le-based	fashion	
and	beauty	retailer	Nordstrom	
rolled	out	6,000	mobile	payment	
devices	across	117	of	its	stores.	
These	devices	enable	employees	
to	check-out	consumers	from	
anywhere	in	the	store	while	the	
app	on	the	device	also	allows	
associates	access	into	the	
company’s	inventory.	This	resulted	
in	an	increase	in	the	average	
selling	price	and	the	number	of	
items	sold	in	2011	as	compared	
to	2010.	The	use	of	mobile	
devices	had	an	impact	on	the	
total	retail	sales	for	Nordstorm,	
which	jumped	by	15.3%	in	the	fi	rst	
quarter	of	2012	as	compared	to	
the	same	period	in	the	previous	
year4
.
These	13	services	independently	
have	the	ability	to	drive	both	
traffi		c	and	revenues	for	a	retailer.	
However,	our	experience	in	the	
retail	sector	indicates	highest	
interest	levels	for	Appointment	
3
Figure 2: Digital Shopper Services and the Consumer Purchase Cycle
Source: Capgemini Consulting Analysis
Communication Salespromotion Sales Customer
relationship
Digitalshopperservices
meetingtheseexpectations
Customer
expectations
To find
information
about a retailer
easily
To be advised
and
reassured in
their choices
To benefit
from
discounts
Virtual
product trials
Service
comparison tool
e-/m-coupons
Online personal
shopping /
“coaching”
Store Locator Appointment
booking
Shopping list apps M-payment Multichannel
loyalty
programmes
Retargeting
Click & Reserve
Store
happenings
Product Locator
To prepare
the purchase
To facilitate
the
transaction
To be
supported
after their
purchase
In a survey conducted
with more than 1,000
North American
shoppers, 48%
indicated that helpful
store associates
motivated them to
spend more in-store.
Booking	and	Online	Shopping	
List	services.	Both	these	services	
have	high	up-selling	potenti	al	and	
provide	strong	diff	erenti	ati	on	in	
terms	of	customer	experience	
against	competi	tors.	In	additi	on,
Appointment Booking Service: Home Depot In-Store Appointment Maker
Home	Depot,	in	an	eff	ort	to	provide	a	consultati	ve	
dimension	to	its	self-service/DIY	products,	has	
implemented	an	in-store	appointment	maker	
applicati	on.	The	app	is	very	detailed,	allowing	
customers	to	identi	fy	their	niche	requirements	
based	on	specifi	c	types	of	products,	via	an	online	
form.	Users	can	also	select	stores	anywhere	
between	5-100	miles	from	where	they	live.	The	
app	also	provides	an	opti	on	to	make	that	store	the	
‘default’	choice	so	that	the	next	ti	me	the	customer	
has	to	access	the	app,	it	avoids	duplicati	on	of	
eff	orts	in	fi	lling	out	all	the	details	once	again.	The	
user	subsequently	schedules	the	appointment	by	
selecti	ng	a	convenient	date	and	ti	me.
Source: Home Depot website
4
the	availability	of	mature	
technologies	for	both	these	
services	facilitate	technical	
deployment	and	easier	service	
adopti	on	with	several	months’	
lead	ti	me.	We	believe	these	
two	services	should	form	the	
initi	al	focus	for	any	retailer	
that	is	looking	towards	digital	
technologies	as	a	means	of
driving	physical	in-store	traffi		c.
Appointment Booking
Service Drives Up-sell
The	Appointment	Booking	service	
revolves	around	the	concept	
of	in-store	sales	advisors	who	
assist	shoppers	and	recommend	
relevant	products	in	line	with	
their	requirements.	This,	in	turn,	
can	encourage	customers	to	
increase	their	spend.	In	fact,	in	a	
survey	conducted	with	more	than	
1,000	North	American	shoppers,	
48%	indicated	that	helpful	store	
associates	moti	vated	them	to	
spend	more	in-store5
.	
The	Appointment	Booking	service	
provides	a	diff	erenti	ated	off	ering	
compared	to	pure	online	players	
due	to	the	presence	of	dedicated	
sales	advisors.	The	service	also	
increases	the	consumer’s	average	
shopping	basket	size	due	to	
up-selling	of	complementary	
products.	It	also	records	consumer	
data	prior	to	scheduling,	which	
can	be	used	for	follow-ups	in	the	
case	of	no	shows	or	no	purchase.	
Several	retailers	have	started	
implementi	ng	Appointment	
Booking	services.	Home	Depot	
is	one	such	retailer	that	has	
already	implemented	an	in-store	
appointment	maker;	the	service	
allows	customers	to	schedule	
appointments	through	the	website	
(see	insert)6
.
Schedule your initial in-store appointment with a Home Depot specialist.
To schedule an appointment with a particular associate or to schedule a follow-up appointment, please contact the store directly.
1. Select Product & Store
Product:
Store: Select a Store
2. Select Date & Time
3. Enter Contact Information
Select a Product
In-StoreAppointmentMaker
Online Shopping List
Service Catches the
Customer Early in the
Purchase Cycle
The	Online	Shopping	List	service	
allows	consumers	to	create	lists,	
plan	their	purchases	in	advance	
and	get	relevant	informati	on	
on	selected	products,	such	as	
availability	and	off	ers.		Once	
the	customer	is	in-store,	the	
applicati	on	also	informs	about	
useful	relevant	products	previously	
not	considered,	thereby	increasing	
the	store’s	up-sell	potenti	al.	
Online	shopping	list	services	help	
secure	brand	loyalty	by	narrowing	
down	the	customer	interacti	on	
to	one	parti	cular	channel.	It	
increases	the	average	shopping	
basket	by	recommending	relevant	
products	according	to	consumers’	
shopping	requirements.	Tesco	is	
one	such	retailer	that	has	already	
implemented	an	online	shopping	
list	service	called	Tesco	Finder	
that	enables	customers	to	create	
and	share	lists	online,	and	add	
products	to	the	list	in	real-ti	me	
while	at	the	store	(see	insert)7
.
Online Shopping List: Tesco Finder
Tesco,	in	its	eff	ort	for	providing	customers	with	a	
diff	erenti	ated	experience,	has	introduced	several	
digital	services.		One	of	these	services	is	a	Digital	
Shopping	List;	this	service	is	loaded	with	many	
features	allowing	users	to	easily	identi	fy	their	needs	
and	go	about	fulfi	lling	them	with	ease.	
The	Digital	Shopping	List	service,	named	Tesco	
Finder,	in	additi	on	to	fi	nding	the	nearest	Tesco	
store,	also	allows	consumers	to	build	a	shopping	
list	by	browsing	through	various	product	categories	
and	departments,	share	the	list	with	friends	and	
add	products	to	the	list	while	they	are	in	the	store.	
The	service	displays	special	off	ers	on	products,	store	
ti	mings,	product	availability	in	the	selected	store	
and	product	details.	Consumers	can	use	the	mobile	
version	of	the	service	to	locate	products	within	the	
store	and	add	them	to	the	list	by	simply	scanning	
the	barcode.	
A	few	of	the	other	features,	such	as	voice-enabled	product	search	and	in-store	navigati	on,	let	consumers	
save	ti	me	in	fi	lling	up	the	list	or	picking	up	products	from	the	store.	The	in-store	navigati	on	feature	creates	
the	shortest	route	within	the	store	based	on	products	in	the	consumer’s	shopping	list.	
Tesco	realizes	the	importance	of	using	digital	technology	in	bringing	consumers	to	the	store.	This	is	
concurred	by	its	CIO	Mike	McNamara,	when	he	says,	“I	don’t	think	we	have	an	online	strategy,	we	have	a	
retailing	strategy	that	is	increasingly	digital.	Online	is	becoming	part	of	the	core	business”.
Source: Tesco website
5
Groceries
Book details
Add itemShopping list
Milk
Rice flakes
+
<
Favourites
Basket
Orders
2 pending orders
Book details
Favourites Orders
Groceries Home
Book a slot
Favourites
Shop
Basket £ 26.17
Orders
Checkout
Tesco direct
FREE Click & Collect from over 750 scores
Technology & Gaming
Home Electrical
Home Furniture
DIY & Car
Garden
Toys +
+
+
+
+
+
<
Great offer on International tour
6
Services	such	as	Appointment	
Booking	and	Online	Shopping	List	
give	retailers	the	ability	to	drive	
additi	onal	revenues	from	the	
incremental	traffi		c	that	they	can	
drive	inside	stores.	We	call	such	
enabler	services	“Click2Stores”.
The Benefits Case for
“Click2Stores” Services
Appointment	Booking	and	Online	
Shopping	List	services	generate	
substanti	al	fi	nancial	benefi	ts	for	
retailers.	However,	these	benefi	ts	
would	also	largely	depend	on	
the	product	categories	sold	by	
retailers.
Our	analysis	reveals	that	an	
Appointment	Booking	service	has	
the	potenti	al	to	generate	up	to	
2.2%	of	additi	onal	revenues	per	
year	(see	Figure	3).	If	a	retailer	
selling	consumer	electronics,	such	
as	Best	Buy,	were	to	implement	
an	Appointment	Booking	service	
it	would	have	the	potenti	al	
to	generate	additi	onal	annual	
revenues	up	to	$800	million	based	
on	its	current	operati	ng	metrics.	
Figure 3: Additional Revenue Generating Potential of Appointment Booking Service
Source: Capgemini Consulting Analysis
For each family of high value products, one customer
per week intended to buy the product but didn’t
because of the absence of a shop assistant.
Results
Benefits
Reduced loss of earning
due to in-store
assistance
Upselling due to an
appointment
Cut in acquisition
costs of qualified
contacts
Model
60% of the sales on an appointment generate
20% of upselling
The number of customers completing the online
questionnaire is twice the number
of appointments made
Sportswear
$ 60Average Basket Value
Hypotheses
3350Number of stores
6Number of families of high value products
30Number of appointments per week per store
50%Percentage of customers on appointment, buying with flexible budget
50%Part of overbooking on appointment
$ 3Value of a qualified contact
$ 65 M
$ 30 M
$ 30 M
$ 125 M
2.2% of sales
DIY
$ 80
2248
$ 80
2248
14
$ 3
$ 130 M
$ 28 M
$ 21 M
$ 180 M
0.25% ofsales
Consumer
Electronics
$ 200
4379
13
$ 4$ 4
$ 590 M
$ 135 M
$ 55 M
$ 780 M
1.6% ofsales
Online Shopping List
service can generate
between $1 billion and
$1.5 billion additional
revenues for large
grocery retailers.
7
For	DIY	and	grocery	retailers,	the	
Appointment	Booking	service	
could	generate	between	0.25%	
and	0.1%	of	additi	onal	annual	
revenue,	respecti	vely.
Similarly,	our	analysis	reveals	that	
the	Online	Shopping	List	service	
has	the	potenti	al	to	generate	up	
to	0.3%	of	additi	onal	revenues	
each	year	(see	Figure	4).	For	
instance,	grocery	retailers	such	as	
Wal-Mart	could	expect	potenti	al	
additi	onal	revenues	of	around	
$1	billion	to	$1.5	billion	each	
year	by	implementi	ng	an	Online	
Shopping	List	service.	DIY	retailers	
Figure 4: Revenue Generating Potential of Online Shopping List Service
Source: Capgemini Consulting Analysis
Results
Benefits
*Data estimated based on calculation
Increase of the average basket
(1 to 2 additional products in the basket per transaction)
Increase of the purchase frequency
(2 additional transactions per year per household)
Food
superstore
leader
Non-food
superstore
Average basket
Hypotheses
Number of products in an average basket
$ 50 B
850 M*
1%
Average number of products forgotten per transaction
Revenue per year
Number of transactions per year
Percentage of customers adopting the service
Average number of transactions per year per household
Additional number of transactions per year per household
$ 870 M
$ 430 M
$ 1300 M
0.3% of sales
$ 59
4*
1
$ 447 B
13000 M *
2.5%
50
2
$ 33.4
25*
2
$ 125 M
$ 125 M
0.3% of sales
could	generate	additi	onal	annual	
revenues	of	around	0.05%.
The	success	of	both	these	services	
depends	on	the	product	category	
for	which	they	are	being	uti	lized.	
For	instance,	Appointment	
Booking	service	is	most	benefi	cial	
in	the	case	of	retailers	selling	
products	with	high	average	
basket	value,	as	is	the	case	with	
categories	such	as	consumer	
electronics.	On	the	other	hand,	
an	Online	Shopping	List	service	
generates	maximum	benefi	t	for	
retailers	with	higher	number	of	
products	per	basket	and	higher	
frequency	of	purchases,	as	is	the	
case	with	grocery	retailers,	for	
example.
To	fi	nd	out	the	adopti	on	and	
maturity	levels	of	these	services	
we	conducted	an	analysis	of	
the	top	30	global	retailers.	The	
objecti	ve	was	to	identi	fy	maturity	
levels	of	these	services	across	
regions	and	channels.
8
Benefits Case Methodology
We	assessed	the	additi	onal	revenue	generati	ng	potenti	al	of	both	the	Appointment	Booking	and	Online	Shopping	List	services.	We	
considered	global	leaders	for	each	of	the	categories	considered	as	part	of	our	benefi	ts	case	analysis.
Appointment Booking
We	assessed	the	Appointment	Booking	service	across	three	product	categories:	Consumer	Electronics,	Sportswear	and	Do-It-
Yourself.	The	benefi	ts	case	was	based	on	the	following	criteria:
 Average	basket	value	
 Number	of	stores
 Number	of	families	of	high	value	products
 Number	of	appointments	per	week	per	store	(1	appointment	every	20	minutes	on	Saturday	for	1	FTE	salesperson)
 Segment	of	customers	on	appointment,	purchasing	with	a	fl	exible	budget	of	20%
 Part	of	over-bookings	on	Appointments
 Value	of	a	qualifi	ed	contact
We	calculated	the	additi	onal	revenue	generated	per	year	based	on	the	following	benefi	t	models:
 Decreased	loss	of	earning	due	to	availability	of	in-store	assistance:	Number	of	high	value	product	families	X	Average	shopping	
basket	comprising	these	products X	Number	of	stores	X	Number	of	weeks	per	year.
 Up-selling	due	to	an	appointment:	Number	of	appointments	per	week X	Number	of	stores X	Number	of	weeks	per	year X
Average	shopping	basket	comprising	these	products X Proporti	on	of	the	customers	(50%	purchasing	with	a	fl	exible	budget	of	
20%).
 Reduced	acquisiti	on	cost	of	qualifi	ed	contacts:		Number	of	appointments	per	week	X	Number	of	stores	X Number	of	weeks	per	
year X	{(1/Overbooking	percentage	(50%)}	X	Value	of	the	enriched	contact.
Online Shopping List
We	assessed	the	Online	Shopping	List	service	across	two	categories:	non-food	superstore	and	food	superstore.	The	benefi	ts	case	
was	based	on	the	following	criteria:
 Average	Basket
 Number	of	products	in	an	average	basket
 Number	of	products	forgott	en	on	an	average	during	cashing	(1	for	a	hypermarket	and		2	for	a	specialized	hypermarket)
 Revenues	per	year
 Number	of	checkouts	per	year
 Percentage	of	customers	adopti	ng	the	service	(	between	1%	in	a	specialized	hypermarket	and	2.5%	in	a	hypermarket)
 Average	number	of	transacti	ons	per	year	per	household
 Additi	onal	number	of	transacti	ons	per	year	per	household	due	to	the	use	of	Online	Shopping	List	service	(2	additi	onal	
transacti	ons	per	year)
We	calculated	the	additi	onal	revenue	generati	ng	potenti	al	based	on	the	following	benefi	t	models:
 Increase	in	the	Average	Basket:	Number	of	products	forgott	en	on	an	average	for	each	transacti	on	X	(Value	of	an	average	
basket/	Number	of	products	in	an	average	basket)	X	Number	of	transacti	ons	per	year	X	Percentage	of	customers	adopti	ng	the	
functi	onality	(1%		to	2.5%).
 Increase	in	Purchase	Frequency:	(Number	of	transacti	ons	per	year/Average	number	of	transacti	ons	per	year	per	household)	X
Percentage	of	customers	adopti	ng	the	service	X	Additi	onal	number	of	transacti	ons	per	year	per	household	X	Average	basket.
Retailers	Currently	Lack	a	Cohesive	
Approach	to	“Click2Stores”
Our	research	found	that	most	
retailers	are	already	using	both	
Appointment	Booking	and	Online	
Shopping	List	services.	However,	
we	found	a	stark	contrast	in	
the	adopti	on	levels	of	both	
the	services.	Out	of	the	top	30	
retailers	in	the	world	73%	use	
Online	Shopping	List	to	drive	
in-store	traffi		c,	compared	to	only	
20%	who	use	the	Appointment	
Booking	service.	The	diff	erence	
between	adopti	on	levels	of	
these	services	is	much	more	
apparent	when	compared	
across	geographies.	Over	80%	of	
retailers	in	both	North	America	
and	EU	provide	Online	Shopping	
List	services	to	their	customers,	
while	only	7%	of	retailers	in	EU	
and	42%	in	North	America	off	er	
Appointment	Booking	services.
9
Only 13% of retailers
allow the shopping lists
to be shared across
social media.
73% of retailers use
Online Shopping List
while only 20% use an
Appointment Booking
service.
66% of retailers record
consumer requirements
while only 25% share
personalized offers.
Very Few Retailers Offer
Appointment Booking
Over Mobile
Appointment	Booking	services	are	
sti	ll	largely	off	ered	over	the	Web	
and	retailers	are	yet	to	realize	the	
importance	of	off	ering	this	service	
over	mobile	as	well.	A	good	
example	of	a	retailer	eff	ecti	vely	
using	both	channels	is	US-based	
retailer	Walgreens,	which	off	ers	
this	service	over	the	Web	and	
mobile	along	with	the	opti	on	
of	rescheduling	appointments	
remotely.	The	possibility	of	the	
customer	being	able	to	access	
the	service	anyti	me,	anywhere	
along	with	the	ability	to	remotely	
reschedule	appointments	reduces	
dropouts	and	no	shows.	Also,	a	
coherent	approach	is	criti	cal	in	
extracti	ng	the	maximum	potenti	al	
from	the	Appointment	Booking	
service.	As	per	our	analysis,	
while	66%	of	retailers	off	ering	
this	service	record	consumer	
requirements,	only	25%	share	
personalized	off	ers	with	them,	
indicati	ng	a	lost	opportunity	for	
increasing	in-store	sales.
Retailers Still Do Not
Offer Critical Online
Shopping List Features
For	Online	Shopping	List,	our	
analysis	indicated	that	most	
retailers	are	sti	ll	lacking	a	cohesive	
multi	-channel	strategy.	Out	of	
all	the	retailers	who	are	off	ering	
this	service	over	both	mediums,	
Web	and	mobile,	only	26%	allow	
the	Web	service	to	sync	with	the	
consumer’s	mobile	and	a	mere	
13%	allow	the	shopping	lists	to	be	
shared	across	social	media.	For	
instance,	only	two	retailers,	Metro	
and	Best	Buy,	allow	consumers	to	
share	their	shopping	lists	on	social	
media.	We	believe	that	off	ering	a	
seamless	consumer	experience	for	
the	Online	Shopping	List	service	
would	increase	both	its	usage	and	
in-store	sales	potenti	al.
Figure 5: Service Maturity Levels Provided by Retailers for Online Shopping List
Source: Capgemini Consulting Analysis
10
EU Retailers Offer
Less Advanced Online
Shopping List Features
Furthermore,	on	analyzing	the	
maturity	level	of	features	off	ered	
for	Online	Shopping	List	we	
found	an	interesti	ng	contrast	
between	North	America	and	EU-
based	retailers.	The	fi	gure	below	
shows	the	service	maturity	level	
achieved,	across	each	category	of	
service,	for	Online	Shopping	List	
in	North	America	and	Europe	(see	
Figure	5).
We	found	that	EU-based	retailers	
are	doing	bett	er	than	North	
America	in	terms	of	providing	
‘Basic’	features	such	as	store	
locator	and	use	of	coupons.	
Out	of	12	retailers	from	EU,	11	
off	er	a	majority	of	the	‘Basic’	
features	for	Online	Shopping	List.	
In	comparison,	only	4	out	of	10	
retailers	from	North	America	off	er	
the	same	features.	On	the	other	
hand,	North	American	retailers	
off	er	advanced	features	compared	
to	their	EU	counterparts	–	an	
15%
Basic Services:
Use of coupons, Store Locator,
Barcode Scanning and Sharing via
email/SMS
Differentiators:
Synced with Mobile, Sharable on
Social media, Inventory check and
Product comparison tools
Premium Services:
In-store aisle location/navigation,
Voice-enabled search and Offers
based on in-store location
63%
73%
24%
20%
11%
North America EU
indicator	of	service	maturity.	As	
many	as	40%	of	North	American	
retailers	off	er	a	wide	array	of	
innovati	ve	services	such	as	in-
store	navigati	on	and	voice-enabled	
search.	In	comparison,	Tesco	is	the	
only	retailer	in	the	EU	that	has	a	
portf	olio	of	similar	off	erings.	
In	the	next	secti	on,	we	look	at	how	
retailers	should	go	about	designing	
and	implementi	ng	such	services.
11
Methodology:
The	objecti	ve	of	our	analysis	was	to	fi	rst	establish	the	presence	of	a	“Click2Stores”	implementati	on,	i.e.	Appointment	Booking	
and	Online	Shopping	List,	across	the	top	30	global	retailers.	This	was	followed	by	analyzing	channel	maturity,	feature-richness	and	
geographical	spread	of	these	applicati	ons.	
Companies Analyzed:
We	considered	the	top	30	retailers	in	the	world,	based	on	their	2011	annual	retail	revenues:	
Wal-Mart	Stores	Inc.,	Carrefour	S.A.,	Tesco	PLC,	Metro	AG,	The	Kroger	Co.,	Schwarz	Unternehmens	Treuhand	KG,	Costco	Wholesale	
Corporati	on,	The	Home	Depot,	Inc.,	Walgreen	Co.,	Aldi	Einkauf	GmbH	&	Co.	oHG,	Target	Corp.,	Rewe	Group,	CVS	Caremark	Corp.,	
Seven	&	i	Holdings	Co.,	Ltd.,	Groupe	Auchan	SA,	Edeka	Zentrale	AG	&	Co.	KG,	Aeon	Co.,	Ltd.,	Woolworths	Limited,	Best	Buy	Co.,	Inc.,	
Lowe’s	Companies,	Inc.,	Wesfarmers	Limited,	Sears	Holdings	Corp.,	Centres	Distributeurs	E.	Leclerc,	Safeway	Inc.,	Koninklijke	Ahold	
N.V,	Casino	Guichard-Perrachon	S.A.,	ITM	D,	J	Sainsbury	Plc,	The	IKEA	Group	and	Loblaw	Companies	Limited.	
Key Parameters:
 Adopti	on	levels
We	defi	ne	adopti	on	level	as	the	number	of	retailers	that	off	er	each	of	these	services	across	geographies.
 Channel	Maturity	
We	defi	ne	channel	maturity	as	the	number	of	channels	over	which	a	parti	cular	service	was	off	ered	(Web,	only	mobile	or	both).
 Feature-Richness	
Features	of	both	services	were	segmented	into	three	disti	nct	areas,	namely,	‘Basic’,	‘Diff	erenti	ator’	and	‘Premium’.	For	the	
Appointment	Booking	service,	‘Basic’	features	included	ability	to	record	consumer	details	and	shopping	needs,	off	ering	multi	ple	
store	selecti	on	and	providing	multi	ple	appointment	booking	slots.	‘Diff	erenti	ator’	features	included	ability	to	sync	with	the	
consumer’s	primary	device,	opti	on	of	rescheduling	appointments	remotely,	providing	promoti	onal	and	personalized	off	ers.	
‘Premium’	features	included	using	GPS	to	provide	the	nearest	store	locati	on.	Similarly,	for	the	Online	Shopping	List,	‘Basic’	features	
included	use	of	coupons,	Store	Locator,	Barcode	Scanning	and	sharing	via	email/SMS.	‘Diff	erenti	ator’	features	included	syncing	
with	mobile,	sharing	on	social	media,	inventory	check	and	product	comparison	tools.	‘Premium’	features	included	in-store	aisle	
locati	on/navigati	on,	voice-enabled	search	and	off	ers	based	on	in-store	locati	on.	
Research Findings:
The	analysis	fi	ndings	are	strictly	based	on	the	number	of	companies	using	the	“Click2Stores”	Services	to	drive
in-store	traffi		c.	
 Overall	Findings
Most	retailers	are	yet	to	tap	into	the	full	potenti	al	of	these	two	services.	European	retailers	conti	nue	to	focus	on	‘Basic’	features	
while	North	American	retailers	off	er	more	advanced	features.	However,	retailers	have	not	off	ered	advanced	opti	ons	that	
contribute	to	a	direct	impact	on	in-store	sales,	such	as	pushing	personalized	off	ers	based	on	consumer	data	or	shareability	on	
social	media	sites.	None	of	the	retailers	in	the	APAC	region	have	adopted	“Click2Stores”	services.
 Category-wise	Findings
 Region-wise	Findings
-	Adopti	on	levels	for	Online	Shopping	List	are	similar	across	North	America	and	EU.	For	instance,	83%	of	North	American	retailers
		have	adopted	an	Online	Shopping	List	service	while	86%	of	EU-based	retailers	provide	the	same	service.	
-	Only	1	out	of	every	14	retailers	in	the	EU	off	ers	Appointment	Booking	service	as	compared	to	5	out	of	10	in	North	America.
Our “Click2Stores” Implementation Research for the Top 30 Global Retailers:
1.	 Appointment	Booking	Service:
				-	It	sti	ll	remains	a	service	which	is	largely	off	ered	over	the	Web,	with	only	one	retailer	(Walgreens)	off	ering	it	over	mobile.
				-	While	66%	of	the	retailers	record	consumers’	needs,	only	25%	use	this	data	to	share	promoti	onal	personalized	off	ers	to
						consumers.
2.	 Online	Shopping	List:
				-	Out	of	15	retailers	off	ering	this	service	on	both	the	mediums,	web	and	mobile,	only	6	provide	the	ability	to	sync	shopping	list
							with	the	consumer’s	mobile	device.	
				-	Only	3	retailers	enable	shopping	list	shareability	across	social	media.
Key	Success	Factors	to	Consider	When	
Implementi	ng	“Click2Stores”
Our	analysis	of	leading	retailers	
and	their	implementati	on	of	these	
two	services	have	enabled	us	
to	arrive	at	a	set	of	key	success	
factors	that	should	be	considered	
when	designing	“Click2Stores”	
type	services.	
Create a compelling
multi-channel
experience with
“Click2Stores” Services
The	success	of	both	appointment	
booking	and	online	shopping	list	
hinges	on	being	able	to	provide	
a	consistent	service	delivery	
across	multi	ple	channels.	Many	
retailers	are	yet	to	tap	into	criti	cal	
features	that	we	believe	have	the	
potenti	al	to	drive	more	footf	all	
and	revenues.	For	instance,	
acti	vity	synchronizati	on	is	a	
criti	cal	feature	of	both	services.	
In	the	case	of	appointment	
booking,	customers	want	to	sync	
appointments	with	their	mobile	
device.	They	also	want	to	be	able	
to	instantly	confi	rm	reservati	ons	
on	the	mobile	platf	orm.	Similarly,	
in	the	case	of	online	shopping	
list	services,	customers	want	the	
ability	to	sync	lists	from	the	Web	
to	their	smartphones	as	well	as	
pre-populate	lists	based	on	past	
purchases.
Customize
“Click2Stores” Services
to Customer Needs
It	is	important	to	bear	in	mind	
that	the	appointment	booking	
service	takes	a	consultati	ve	
approach	to	selling.	As	such,	it	is	
important	to	segment	consumers	
and	design	the	purchase	journey,	
once	in-store,	according	to	
their	requirements.	Unlike	the	
appointment	booking	service	that	
is	largely	driven	by	in-store	sales	
associates,	in	the	case	of	online	
shopping	list	services,	customers	
want	user	interacti	ons	to	be	kept	
to	a	bare	minimum,	once	inside	
the	store.	These	subtle	diff	erences	
should	be	captured	in	designing	
eff	ecti	ve	“Click2Stores”	services.
Synchronize
“Click2Stores” Services
with your Store
Software and CRM
Database
In	both	services,	geo-localizati	on	
and	customer	profi	les	should	
determine	the	choice	of	store	
locati	on	off	ered	as	well	as	
product	promoti	ons	pushed	to	
the	consumer.	Customers	also	
appreciate	when	retailers	provide	
them	with	real-ti	me	updates	and	
informati	on	about	inventory	and	
pricing.	This	means	syncing	the	
applicati	on	data	with	the	store’s	
own	soft	ware,	so	that	inventory	
and	pricing	updates	are	accurate.	
Retailers	should	focus	on	providing	
personalized	promoti	onal	off	ers	
based	on	consumer	data	and	
the	provision	to	share	shopping	
lists	across	social	media	for	
appointment	booking	and	online	
shopping	list	services,	respecti	vely.
Adopt a Dynamic
Approach while
Implementing
“Click2Stores” Services
Implementi	ng	the	appointment	
booking	service	has	a	strong	
organizati	onal	impact	on	physical	
retail	stores.	Before	the	customer’s	
arrival	at	the	point	of	sale,	it	is	
criti	cal	to	defi	ne	the	appointment	
12
schedule	and	process	to	opti	mize	
sales	advisors’	schedules	
(management	of	delays,	no	shows	
and	peak	ti	me).	The	sales	advisors’	
team	has	to	be	structured	
(generalist	or	product	specialist)	
and	trained/coached	for	this	new	
acti	vity.	Moreover,	retailers	need	
to	focus	on	areas	which	provide	
the	maximum	benefi	ts	and	ensure	
an	even	uptake	of	appointments	
slots	by	proacti	vely	off	ering	
service	during	off	-peak	hours.	
A	dynamic	approach	along	with	
proper	communicati	on	with	sales	
advisors	is	criti	cal	to	make	the	
transacti	on	and	up-sell	successful.
While	retailers	have	adopted	
both	these	services	at	varying	
degrees	of	maturity,	their	eff	orts	
come	across	as	fragmented.	In	
an	age	where	consumers	expect	
a	seamless,	connected	omni-
channel	experience,	retailers	
need	to	have	a	comprehensive	
and	cohesive	approach	towards	
implementi	ng	these	services.	
Doing	so	would	enable	retailers	to	
tap	into	the	full	range	of	benefi	ts	
off	ered	by	digital	services	while	
also	maximizing	channel	potenti	al.
1	 Forrester, “US Online Retail Forecast, 2012 To 2017”, March 2013
2	 Wanderful Media Research, “Technology Blurs the Line of Online vs. In-Store Shopping”, December 2012
3	 Capgemini Consulting analysis
4	 Forbes, “Nordstrom Sees Sales Boost from Mobile POS Devices”, June 2012
5	 Motorola, “Holiday Shopping Study”, December 2012
6	 Home Depot In-Store Appointment Maker website
7	 Tesco website
References
Authors
Eric Sindou
eric.sindou@capgemini.com
Olivier Guilhot-gaudeffroy
olivier.guilhotgaudeffroy@capgemini.com
Sarah Driay
sarah.driay@capgemini.com
Digital Transformation
Research Institute
dtri.in@capgemini.com
Jerome Buvat, Amrita Radhakrishnan and Ashish Bisht from the Digital Transformation Research Institute worked on this
paper.
The authors would also like to acknowledge the contributions of Olivier Pacaud.
Rightshore®
is a trademark belonging to Capgemini
CapgeminiConsultingistheglobalstrategyandtransformation
consulting organization of the Capgemini Group, specializing
in advising and supporting enterprises in significant
transformation,frominnovativestrategytoexecutionandwith
an unstinting focus on results. With the new digital economy
creating significant disruptions and opportunities, our global
team of over 3,600 talented individuals work with leading
companiesandgovernmentstomasterDigitalTransformation,
drawing on our understanding of the digital economy and
our leadership in business transformation and organizational
change.
Find out more at:
http://www.capgemini-consulting.com/
With around 120,000 people in 40 countries, Capgemini is one
of the world’s foremost providers of consulting, technology
and outsourcing services. The Group reported 2011 global
revenuesofEUR9.7billion.Togetherwithitsclients,Capgemini
creates and delivers business and technology solutions that
fit their needs and drive the results they want. A deeply
multicultural organization, Capgemini has developed its own
way of working, the Collaborative Business ExperienceTM
, and
draws on Rightshore®
, its worldwide delivery model.
Learn more about us
at www.capgemini.com.
About Capgemini
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
France
Laurence Jumeaux
laurence.jumeaux@capgemini.com
Finland
Sami Finne
sami.finne@capgemini.com
Germany
Ralph Becker
ralph.becker@capgemini.com
Netherlands
Armijn Beek
armijn.beek@capgemini.com
US
Dan Albright
dan.albright@capgemini.com
UK
Mike Petevinos
mike.petevinos@capgemini.com
Sweden
Peter Lindell
peter. lindell@capgemini.com
For more information contact:

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from clicks to bricks - Cap gemini - Mai 2013

  • 1. From Clicks to Bricks Driving footfall in-store through digital innovation
  • 2. In-Store is Sti ll the Primary Revenue Earner Consumers globally have rapidly adopted digital retail channels. Online retail sales in the US are expected to reach $370 billion in 2017, up from $231 billion in 2012. However, this does not ring a death knell for brick-and-mortar retail stores. Despite the rapid double- digit growth rate of e-business, online channels are expected to contribute to only around 10% of all US retail sales by 20171 . The physical store sti ll remains the primary point of sale for a large proporti on of consumers. Figure 1: Percentage of Consumers Preferring In-store vs. Online Experience Source: Wanderful Media Research, December 2012 2 During 2011, US store sales conversion rates were 14 times higher than their e-business counterparts. Online channels are expected to contribute to only around 10% of all US retail sales by 2017. In-store Online 16% 40% 13% 50% 12% 51% Better customer service Getting answers for questions Establishing relationship with merchant Majority of Consumers Prefer to Shop In-Store A US survey shows that consumers prefer the in-store experience for a variety of reasons (see Figure 1)2 . Physical stores help consumers establish a relati onship with the merchant, get immediate answers to questi ons and get access to bett er service. From a retailer perspecti ve, this highlights the areas where they need to conti nue innovati ng in order to stay relevant to the digital consumer. In-Store Sales Conversions are Higher Compared to Online Another key factor that makes physical stores indispensable to retailers is the higher sales conversion rates that they achieve. A study indicates that during 2011, US store sales conversion rates were 14 ti mes higher than their e-business counterparts3 . Driving more traffi c in-store has an immediate impact on accelerati ng sales. Digital technologies can help retailers match consumer interest in online channels with the higher sales conversion benefi ts of physical stores. In the next secti on, we discuss which digital services have the potenti al to drive in-store traffi c and increase revenues.
  • 3. Digital Tools Drive Additi onal In-Store Revenues Digital technologies have pervaded all segments of the consumer purchase cycle. They allow customers to make purchase decisions, locate retail stores or avail discounts. We identi fi ed a set of 13 such digital services that consumers can use across the purchase cycle. All of these services are relevant at diff erent points of the purchase cycle – from customer communicati on to aft er-sales customer relati onships (see Figure 2). Interesti ngly, retailers are already using some of these digital services and seeing positi ve results. For instance, in mid- 2011, Seatt le-based fashion and beauty retailer Nordstrom rolled out 6,000 mobile payment devices across 117 of its stores. These devices enable employees to check-out consumers from anywhere in the store while the app on the device also allows associates access into the company’s inventory. This resulted in an increase in the average selling price and the number of items sold in 2011 as compared to 2010. The use of mobile devices had an impact on the total retail sales for Nordstorm, which jumped by 15.3% in the fi rst quarter of 2012 as compared to the same period in the previous year4 . These 13 services independently have the ability to drive both traffi c and revenues for a retailer. However, our experience in the retail sector indicates highest interest levels for Appointment 3 Figure 2: Digital Shopper Services and the Consumer Purchase Cycle Source: Capgemini Consulting Analysis Communication Salespromotion Sales Customer relationship Digitalshopperservices meetingtheseexpectations Customer expectations To find information about a retailer easily To be advised and reassured in their choices To benefit from discounts Virtual product trials Service comparison tool e-/m-coupons Online personal shopping / “coaching” Store Locator Appointment booking Shopping list apps M-payment Multichannel loyalty programmes Retargeting Click & Reserve Store happenings Product Locator To prepare the purchase To facilitate the transaction To be supported after their purchase In a survey conducted with more than 1,000 North American shoppers, 48% indicated that helpful store associates motivated them to spend more in-store. Booking and Online Shopping List services. Both these services have high up-selling potenti al and provide strong diff erenti ati on in terms of customer experience against competi tors. In additi on,
  • 4. Appointment Booking Service: Home Depot In-Store Appointment Maker Home Depot, in an eff ort to provide a consultati ve dimension to its self-service/DIY products, has implemented an in-store appointment maker applicati on. The app is very detailed, allowing customers to identi fy their niche requirements based on specifi c types of products, via an online form. Users can also select stores anywhere between 5-100 miles from where they live. The app also provides an opti on to make that store the ‘default’ choice so that the next ti me the customer has to access the app, it avoids duplicati on of eff orts in fi lling out all the details once again. The user subsequently schedules the appointment by selecti ng a convenient date and ti me. Source: Home Depot website 4 the availability of mature technologies for both these services facilitate technical deployment and easier service adopti on with several months’ lead ti me. We believe these two services should form the initi al focus for any retailer that is looking towards digital technologies as a means of driving physical in-store traffi c. Appointment Booking Service Drives Up-sell The Appointment Booking service revolves around the concept of in-store sales advisors who assist shoppers and recommend relevant products in line with their requirements. This, in turn, can encourage customers to increase their spend. In fact, in a survey conducted with more than 1,000 North American shoppers, 48% indicated that helpful store associates moti vated them to spend more in-store5 . The Appointment Booking service provides a diff erenti ated off ering compared to pure online players due to the presence of dedicated sales advisors. The service also increases the consumer’s average shopping basket size due to up-selling of complementary products. It also records consumer data prior to scheduling, which can be used for follow-ups in the case of no shows or no purchase. Several retailers have started implementi ng Appointment Booking services. Home Depot is one such retailer that has already implemented an in-store appointment maker; the service allows customers to schedule appointments through the website (see insert)6 . Schedule your initial in-store appointment with a Home Depot specialist. To schedule an appointment with a particular associate or to schedule a follow-up appointment, please contact the store directly. 1. Select Product & Store Product: Store: Select a Store 2. Select Date & Time 3. Enter Contact Information Select a Product In-StoreAppointmentMaker
  • 5. Online Shopping List Service Catches the Customer Early in the Purchase Cycle The Online Shopping List service allows consumers to create lists, plan their purchases in advance and get relevant informati on on selected products, such as availability and off ers. Once the customer is in-store, the applicati on also informs about useful relevant products previously not considered, thereby increasing the store’s up-sell potenti al. Online shopping list services help secure brand loyalty by narrowing down the customer interacti on to one parti cular channel. It increases the average shopping basket by recommending relevant products according to consumers’ shopping requirements. Tesco is one such retailer that has already implemented an online shopping list service called Tesco Finder that enables customers to create and share lists online, and add products to the list in real-ti me while at the store (see insert)7 . Online Shopping List: Tesco Finder Tesco, in its eff ort for providing customers with a diff erenti ated experience, has introduced several digital services. One of these services is a Digital Shopping List; this service is loaded with many features allowing users to easily identi fy their needs and go about fulfi lling them with ease. The Digital Shopping List service, named Tesco Finder, in additi on to fi nding the nearest Tesco store, also allows consumers to build a shopping list by browsing through various product categories and departments, share the list with friends and add products to the list while they are in the store. The service displays special off ers on products, store ti mings, product availability in the selected store and product details. Consumers can use the mobile version of the service to locate products within the store and add them to the list by simply scanning the barcode. A few of the other features, such as voice-enabled product search and in-store navigati on, let consumers save ti me in fi lling up the list or picking up products from the store. The in-store navigati on feature creates the shortest route within the store based on products in the consumer’s shopping list. Tesco realizes the importance of using digital technology in bringing consumers to the store. This is concurred by its CIO Mike McNamara, when he says, “I don’t think we have an online strategy, we have a retailing strategy that is increasingly digital. Online is becoming part of the core business”. Source: Tesco website 5 Groceries Book details Add itemShopping list Milk Rice flakes + < Favourites Basket Orders 2 pending orders Book details Favourites Orders Groceries Home Book a slot Favourites Shop Basket £ 26.17 Orders Checkout Tesco direct FREE Click & Collect from over 750 scores Technology & Gaming Home Electrical Home Furniture DIY & Car Garden Toys + + + + + + < Great offer on International tour
  • 6. 6 Services such as Appointment Booking and Online Shopping List give retailers the ability to drive additi onal revenues from the incremental traffi c that they can drive inside stores. We call such enabler services “Click2Stores”. The Benefits Case for “Click2Stores” Services Appointment Booking and Online Shopping List services generate substanti al fi nancial benefi ts for retailers. However, these benefi ts would also largely depend on the product categories sold by retailers. Our analysis reveals that an Appointment Booking service has the potenti al to generate up to 2.2% of additi onal revenues per year (see Figure 3). If a retailer selling consumer electronics, such as Best Buy, were to implement an Appointment Booking service it would have the potenti al to generate additi onal annual revenues up to $800 million based on its current operati ng metrics. Figure 3: Additional Revenue Generating Potential of Appointment Booking Service Source: Capgemini Consulting Analysis For each family of high value products, one customer per week intended to buy the product but didn’t because of the absence of a shop assistant. Results Benefits Reduced loss of earning due to in-store assistance Upselling due to an appointment Cut in acquisition costs of qualified contacts Model 60% of the sales on an appointment generate 20% of upselling The number of customers completing the online questionnaire is twice the number of appointments made Sportswear $ 60Average Basket Value Hypotheses 3350Number of stores 6Number of families of high value products 30Number of appointments per week per store 50%Percentage of customers on appointment, buying with flexible budget 50%Part of overbooking on appointment $ 3Value of a qualified contact $ 65 M $ 30 M $ 30 M $ 125 M 2.2% of sales DIY $ 80 2248 $ 80 2248 14 $ 3 $ 130 M $ 28 M $ 21 M $ 180 M 0.25% ofsales Consumer Electronics $ 200 4379 13 $ 4$ 4 $ 590 M $ 135 M $ 55 M $ 780 M 1.6% ofsales Online Shopping List service can generate between $1 billion and $1.5 billion additional revenues for large grocery retailers.
  • 7. 7 For DIY and grocery retailers, the Appointment Booking service could generate between 0.25% and 0.1% of additi onal annual revenue, respecti vely. Similarly, our analysis reveals that the Online Shopping List service has the potenti al to generate up to 0.3% of additi onal revenues each year (see Figure 4). For instance, grocery retailers such as Wal-Mart could expect potenti al additi onal revenues of around $1 billion to $1.5 billion each year by implementi ng an Online Shopping List service. DIY retailers Figure 4: Revenue Generating Potential of Online Shopping List Service Source: Capgemini Consulting Analysis Results Benefits *Data estimated based on calculation Increase of the average basket (1 to 2 additional products in the basket per transaction) Increase of the purchase frequency (2 additional transactions per year per household) Food superstore leader Non-food superstore Average basket Hypotheses Number of products in an average basket $ 50 B 850 M* 1% Average number of products forgotten per transaction Revenue per year Number of transactions per year Percentage of customers adopting the service Average number of transactions per year per household Additional number of transactions per year per household $ 870 M $ 430 M $ 1300 M 0.3% of sales $ 59 4* 1 $ 447 B 13000 M * 2.5% 50 2 $ 33.4 25* 2 $ 125 M $ 125 M 0.3% of sales could generate additi onal annual revenues of around 0.05%. The success of both these services depends on the product category for which they are being uti lized. For instance, Appointment Booking service is most benefi cial in the case of retailers selling products with high average basket value, as is the case with categories such as consumer electronics. On the other hand, an Online Shopping List service generates maximum benefi t for retailers with higher number of products per basket and higher frequency of purchases, as is the case with grocery retailers, for example. To fi nd out the adopti on and maturity levels of these services we conducted an analysis of the top 30 global retailers. The objecti ve was to identi fy maturity levels of these services across regions and channels.
  • 8. 8 Benefits Case Methodology We assessed the additi onal revenue generati ng potenti al of both the Appointment Booking and Online Shopping List services. We considered global leaders for each of the categories considered as part of our benefi ts case analysis. Appointment Booking We assessed the Appointment Booking service across three product categories: Consumer Electronics, Sportswear and Do-It- Yourself. The benefi ts case was based on the following criteria:  Average basket value  Number of stores  Number of families of high value products  Number of appointments per week per store (1 appointment every 20 minutes on Saturday for 1 FTE salesperson)  Segment of customers on appointment, purchasing with a fl exible budget of 20%  Part of over-bookings on Appointments  Value of a qualifi ed contact We calculated the additi onal revenue generated per year based on the following benefi t models:  Decreased loss of earning due to availability of in-store assistance: Number of high value product families X Average shopping basket comprising these products X Number of stores X Number of weeks per year.  Up-selling due to an appointment: Number of appointments per week X Number of stores X Number of weeks per year X Average shopping basket comprising these products X Proporti on of the customers (50% purchasing with a fl exible budget of 20%).  Reduced acquisiti on cost of qualifi ed contacts: Number of appointments per week X Number of stores X Number of weeks per year X {(1/Overbooking percentage (50%)} X Value of the enriched contact. Online Shopping List We assessed the Online Shopping List service across two categories: non-food superstore and food superstore. The benefi ts case was based on the following criteria:  Average Basket  Number of products in an average basket  Number of products forgott en on an average during cashing (1 for a hypermarket and 2 for a specialized hypermarket)  Revenues per year  Number of checkouts per year  Percentage of customers adopti ng the service ( between 1% in a specialized hypermarket and 2.5% in a hypermarket)  Average number of transacti ons per year per household  Additi onal number of transacti ons per year per household due to the use of Online Shopping List service (2 additi onal transacti ons per year) We calculated the additi onal revenue generati ng potenti al based on the following benefi t models:  Increase in the Average Basket: Number of products forgott en on an average for each transacti on X (Value of an average basket/ Number of products in an average basket) X Number of transacti ons per year X Percentage of customers adopti ng the functi onality (1% to 2.5%).  Increase in Purchase Frequency: (Number of transacti ons per year/Average number of transacti ons per year per household) X Percentage of customers adopti ng the service X Additi onal number of transacti ons per year per household X Average basket.
  • 9. Retailers Currently Lack a Cohesive Approach to “Click2Stores” Our research found that most retailers are already using both Appointment Booking and Online Shopping List services. However, we found a stark contrast in the adopti on levels of both the services. Out of the top 30 retailers in the world 73% use Online Shopping List to drive in-store traffi c, compared to only 20% who use the Appointment Booking service. The diff erence between adopti on levels of these services is much more apparent when compared across geographies. Over 80% of retailers in both North America and EU provide Online Shopping List services to their customers, while only 7% of retailers in EU and 42% in North America off er Appointment Booking services. 9 Only 13% of retailers allow the shopping lists to be shared across social media. 73% of retailers use Online Shopping List while only 20% use an Appointment Booking service. 66% of retailers record consumer requirements while only 25% share personalized offers. Very Few Retailers Offer Appointment Booking Over Mobile Appointment Booking services are sti ll largely off ered over the Web and retailers are yet to realize the importance of off ering this service over mobile as well. A good example of a retailer eff ecti vely using both channels is US-based retailer Walgreens, which off ers this service over the Web and mobile along with the opti on of rescheduling appointments remotely. The possibility of the customer being able to access the service anyti me, anywhere along with the ability to remotely reschedule appointments reduces dropouts and no shows. Also, a coherent approach is criti cal in extracti ng the maximum potenti al from the Appointment Booking service. As per our analysis, while 66% of retailers off ering this service record consumer requirements, only 25% share personalized off ers with them, indicati ng a lost opportunity for increasing in-store sales. Retailers Still Do Not Offer Critical Online Shopping List Features For Online Shopping List, our analysis indicated that most retailers are sti ll lacking a cohesive multi -channel strategy. Out of all the retailers who are off ering this service over both mediums, Web and mobile, only 26% allow the Web service to sync with the consumer’s mobile and a mere 13% allow the shopping lists to be shared across social media. For instance, only two retailers, Metro and Best Buy, allow consumers to share their shopping lists on social media. We believe that off ering a seamless consumer experience for the Online Shopping List service would increase both its usage and in-store sales potenti al.
  • 10. Figure 5: Service Maturity Levels Provided by Retailers for Online Shopping List Source: Capgemini Consulting Analysis 10 EU Retailers Offer Less Advanced Online Shopping List Features Furthermore, on analyzing the maturity level of features off ered for Online Shopping List we found an interesti ng contrast between North America and EU- based retailers. The fi gure below shows the service maturity level achieved, across each category of service, for Online Shopping List in North America and Europe (see Figure 5). We found that EU-based retailers are doing bett er than North America in terms of providing ‘Basic’ features such as store locator and use of coupons. Out of 12 retailers from EU, 11 off er a majority of the ‘Basic’ features for Online Shopping List. In comparison, only 4 out of 10 retailers from North America off er the same features. On the other hand, North American retailers off er advanced features compared to their EU counterparts – an 15% Basic Services: Use of coupons, Store Locator, Barcode Scanning and Sharing via email/SMS Differentiators: Synced with Mobile, Sharable on Social media, Inventory check and Product comparison tools Premium Services: In-store aisle location/navigation, Voice-enabled search and Offers based on in-store location 63% 73% 24% 20% 11% North America EU indicator of service maturity. As many as 40% of North American retailers off er a wide array of innovati ve services such as in- store navigati on and voice-enabled search. In comparison, Tesco is the only retailer in the EU that has a portf olio of similar off erings. In the next secti on, we look at how retailers should go about designing and implementi ng such services.
  • 11. 11 Methodology: The objecti ve of our analysis was to fi rst establish the presence of a “Click2Stores” implementati on, i.e. Appointment Booking and Online Shopping List, across the top 30 global retailers. This was followed by analyzing channel maturity, feature-richness and geographical spread of these applicati ons. Companies Analyzed: We considered the top 30 retailers in the world, based on their 2011 annual retail revenues: Wal-Mart Stores Inc., Carrefour S.A., Tesco PLC, Metro AG, The Kroger Co., Schwarz Unternehmens Treuhand KG, Costco Wholesale Corporati on, The Home Depot, Inc., Walgreen Co., Aldi Einkauf GmbH & Co. oHG, Target Corp., Rewe Group, CVS Caremark Corp., Seven & i Holdings Co., Ltd., Groupe Auchan SA, Edeka Zentrale AG & Co. KG, Aeon Co., Ltd., Woolworths Limited, Best Buy Co., Inc., Lowe’s Companies, Inc., Wesfarmers Limited, Sears Holdings Corp., Centres Distributeurs E. Leclerc, Safeway Inc., Koninklijke Ahold N.V, Casino Guichard-Perrachon S.A., ITM D, J Sainsbury Plc, The IKEA Group and Loblaw Companies Limited. Key Parameters:  Adopti on levels We defi ne adopti on level as the number of retailers that off er each of these services across geographies.  Channel Maturity We defi ne channel maturity as the number of channels over which a parti cular service was off ered (Web, only mobile or both).  Feature-Richness Features of both services were segmented into three disti nct areas, namely, ‘Basic’, ‘Diff erenti ator’ and ‘Premium’. For the Appointment Booking service, ‘Basic’ features included ability to record consumer details and shopping needs, off ering multi ple store selecti on and providing multi ple appointment booking slots. ‘Diff erenti ator’ features included ability to sync with the consumer’s primary device, opti on of rescheduling appointments remotely, providing promoti onal and personalized off ers. ‘Premium’ features included using GPS to provide the nearest store locati on. Similarly, for the Online Shopping List, ‘Basic’ features included use of coupons, Store Locator, Barcode Scanning and sharing via email/SMS. ‘Diff erenti ator’ features included syncing with mobile, sharing on social media, inventory check and product comparison tools. ‘Premium’ features included in-store aisle locati on/navigati on, voice-enabled search and off ers based on in-store locati on. Research Findings: The analysis fi ndings are strictly based on the number of companies using the “Click2Stores” Services to drive in-store traffi c.  Overall Findings Most retailers are yet to tap into the full potenti al of these two services. European retailers conti nue to focus on ‘Basic’ features while North American retailers off er more advanced features. However, retailers have not off ered advanced opti ons that contribute to a direct impact on in-store sales, such as pushing personalized off ers based on consumer data or shareability on social media sites. None of the retailers in the APAC region have adopted “Click2Stores” services.  Category-wise Findings  Region-wise Findings - Adopti on levels for Online Shopping List are similar across North America and EU. For instance, 83% of North American retailers have adopted an Online Shopping List service while 86% of EU-based retailers provide the same service. - Only 1 out of every 14 retailers in the EU off ers Appointment Booking service as compared to 5 out of 10 in North America. Our “Click2Stores” Implementation Research for the Top 30 Global Retailers: 1. Appointment Booking Service: - It sti ll remains a service which is largely off ered over the Web, with only one retailer (Walgreens) off ering it over mobile. - While 66% of the retailers record consumers’ needs, only 25% use this data to share promoti onal personalized off ers to consumers. 2. Online Shopping List: - Out of 15 retailers off ering this service on both the mediums, web and mobile, only 6 provide the ability to sync shopping list with the consumer’s mobile device. - Only 3 retailers enable shopping list shareability across social media.
  • 12. Key Success Factors to Consider When Implementi ng “Click2Stores” Our analysis of leading retailers and their implementati on of these two services have enabled us to arrive at a set of key success factors that should be considered when designing “Click2Stores” type services. Create a compelling multi-channel experience with “Click2Stores” Services The success of both appointment booking and online shopping list hinges on being able to provide a consistent service delivery across multi ple channels. Many retailers are yet to tap into criti cal features that we believe have the potenti al to drive more footf all and revenues. For instance, acti vity synchronizati on is a criti cal feature of both services. In the case of appointment booking, customers want to sync appointments with their mobile device. They also want to be able to instantly confi rm reservati ons on the mobile platf orm. Similarly, in the case of online shopping list services, customers want the ability to sync lists from the Web to their smartphones as well as pre-populate lists based on past purchases. Customize “Click2Stores” Services to Customer Needs It is important to bear in mind that the appointment booking service takes a consultati ve approach to selling. As such, it is important to segment consumers and design the purchase journey, once in-store, according to their requirements. Unlike the appointment booking service that is largely driven by in-store sales associates, in the case of online shopping list services, customers want user interacti ons to be kept to a bare minimum, once inside the store. These subtle diff erences should be captured in designing eff ecti ve “Click2Stores” services. Synchronize “Click2Stores” Services with your Store Software and CRM Database In both services, geo-localizati on and customer profi les should determine the choice of store locati on off ered as well as product promoti ons pushed to the consumer. Customers also appreciate when retailers provide them with real-ti me updates and informati on about inventory and pricing. This means syncing the applicati on data with the store’s own soft ware, so that inventory and pricing updates are accurate. Retailers should focus on providing personalized promoti onal off ers based on consumer data and the provision to share shopping lists across social media for appointment booking and online shopping list services, respecti vely. Adopt a Dynamic Approach while Implementing “Click2Stores” Services Implementi ng the appointment booking service has a strong organizati onal impact on physical retail stores. Before the customer’s arrival at the point of sale, it is criti cal to defi ne the appointment 12 schedule and process to opti mize sales advisors’ schedules (management of delays, no shows and peak ti me). The sales advisors’ team has to be structured (generalist or product specialist) and trained/coached for this new acti vity. Moreover, retailers need to focus on areas which provide the maximum benefi ts and ensure an even uptake of appointments slots by proacti vely off ering service during off -peak hours. A dynamic approach along with proper communicati on with sales advisors is criti cal to make the transacti on and up-sell successful. While retailers have adopted both these services at varying degrees of maturity, their eff orts come across as fragmented. In an age where consumers expect a seamless, connected omni- channel experience, retailers need to have a comprehensive and cohesive approach towards implementi ng these services. Doing so would enable retailers to tap into the full range of benefi ts off ered by digital services while also maximizing channel potenti al.
  • 13. 1 Forrester, “US Online Retail Forecast, 2012 To 2017”, March 2013 2 Wanderful Media Research, “Technology Blurs the Line of Online vs. In-Store Shopping”, December 2012 3 Capgemini Consulting analysis 4 Forbes, “Nordstrom Sees Sales Boost from Mobile POS Devices”, June 2012 5 Motorola, “Holiday Shopping Study”, December 2012 6 Home Depot In-Store Appointment Maker website 7 Tesco website References Authors Eric Sindou eric.sindou@capgemini.com Olivier Guilhot-gaudeffroy olivier.guilhotgaudeffroy@capgemini.com Sarah Driay sarah.driay@capgemini.com Digital Transformation Research Institute dtri.in@capgemini.com Jerome Buvat, Amrita Radhakrishnan and Ashish Bisht from the Digital Transformation Research Institute worked on this paper. The authors would also like to acknowledge the contributions of Olivier Pacaud.
  • 14. Rightshore® is a trademark belonging to Capgemini CapgeminiConsultingistheglobalstrategyandtransformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation,frominnovativestrategytoexecutionandwith an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companiesandgovernmentstomasterDigitalTransformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change. Find out more at: http://www.capgemini-consulting.com/ With around 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenuesofEUR9.7billion.Togetherwithitsclients,Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM , and draws on Rightshore® , its worldwide delivery model. Learn more about us at www.capgemini.com. About Capgemini Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2013 Capgemini. All rights reserved. France Laurence Jumeaux laurence.jumeaux@capgemini.com Finland Sami Finne sami.finne@capgemini.com Germany Ralph Becker ralph.becker@capgemini.com Netherlands Armijn Beek armijn.beek@capgemini.com US Dan Albright dan.albright@capgemini.com UK Mike Petevinos mike.petevinos@capgemini.com Sweden Peter Lindell peter. lindell@capgemini.com For more information contact: