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The New Retail

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Whirlpool presents the volume 2 of the Digital School. Lesson 3 is dedicated to the new retail and how the buying experience is changing, thanks to digital transformation.

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The New Retail

  1. 1. LESSON 3 the new retail
  2. 2. Introduction 2 This lesson is devoted do explain how the buying experience is changing thanks to digital. CONSUMERS’ EVOLUTION CONSUMERS’ POWER RETAILERS’ POWER NEW TOOLS FOR RETAILS 1 2 3 4
  3. 3. consumers’ evolution - from consumer to prosumer - 3
  4. 4. A definition The digital era is changing the society and its habits and even the consumer experience and the consumer itself are changing: we are now becoming prosumers. Evolution and integration of web and social network Consumer Prosumer 4
  5. 5. who is a prosumer? PROSUMER = PROFESSIONAL + CONSUMER FROM THE OXFORD DICTIONARY: A prosumer is person who buys electronic goods that are of a standard between those aimed at consumers and professionals or a consumer who becomes involved with designing or customizing products for their own needs. 5
  6. 6. This means that consumers have become more and more skilled and knowledgeable, requiring higher standards for products and more information from manufacturers. 6
  7. 7. consumers’ power - data and behavioural - 7
  8. 8. what consumers say One of the main features of a prosumer is to always be connected to the internet thanks to mobile devices. This lets him gather information about products, brands and services, share opinions about an experience or personal information to gain something interesting. 70% 8 of consumers say it is their responsibility to share feedback with companies after a good or bad experience 90% of consumers say their purchase decision are influenced by online reviews 74% of consumers rely on social networks to guide purchase decision 68% of consumers agree that shopping today is less about brands or products and more about what they are feeling and needing Source: Gyga: the connected consumer
  9. 9. nowadays consumers are not afraid to say what they think about: they want to express their opinion on everything and strongly believe in their right to do it. 9
  10. 10. the omnichannel retail Consumers want to connect with retailers on multiple channels and touchpoints simultaneously or even interchangeably. They appreciate more retails that let them interact and complete transactions on their own terms. As we have seen in 2013 “Lesson 8: Change in Purchase Behaviour”, the path to purchase is no longer linear because there are so many new touchpoints. 10 view an item online compare the prices and purchase it using the phone comment the experience on social network return the item by dropping by the store AN EXAMPLE OF THE NEW PATH TO PURCHASE:
  11. 11. retailers’ power - data and behavioural - 11
  12. 12. a data exchange This users’ tendency to share personal information and experiences, makes easier for brands to understand their consumers, what they what and what their behaviours are. At the same time,because of the many touchpoints, it may be a dispersive process. 12 IT’S ALL ABOUT TRUST: 77% of online shoppers would trust businesses more if they explained how they use their personal information 29% of US consumers abandoned logging in or buying on a website because they are worried about their information being compromised 73% of consumers say they prefer to do business with retailers who use personal information to make their shopping experience more relevant Source: Gyga: the connected consumer
  13. 13. so, how will the future be? The technology trends that will impact the retail industry most significantly in the near future are six. RETAIL INDUSTRY 13 Big Data / Analytics Customer Experience Mobile & Social Next-Gen Technology Omnichannel Personalization Source: Retail touchpoints - 2014 technology preview
  14. 14. “A great digital experience is no longer a nice-to-have, it’s a make-or-break point for your business as we more fully enter the digital age.” 14 forrester research
  15. 15. new tools for retails - consumer engagement place and best practice - 15
  16. 16. the web asks, retailers answer 16 So, we understand that retail space is not what it used to be and it is developing new ways to interface with customers. There are six “places” where retailers can engage with consumers. in the vicinity at the shop window in the store in front of the product at payment customer service Source: Social Media today - How to Use Digital in Retail
  17. 17. in the vicinity 17 The contact area of retailers expands being able to identify nearby consumers thanks to geolocation and social coordinates: this is proximity marketing. MAIN TOOLS: • gps • geolocation • personalized signal • wireless internet connection • targeted sms Source: Social Media today - How to Use Digital in Retail © garryknight
  18. 18. chargeitspot ChargeItSpot unveiled cellphone charging stations in 20 Urban Outfitters stores. Retailers pay a monthly fee for the ChargeItSpot stations, which are free for shoppers to use. Via ChargeItSpot’s free mobile app, customers can receive an alert when their cellphone is running out of battery, and locate their nearest station. 18 Source: Trendwatching
  19. 19. mini cooper Roadside billboards to serve tailored messages just to Mini owners as they drive by, as part of 'Not Normal' campaign. https://www.youtube.com/watch?v=e5bEB0tmMQI 19
  20. 20. at the shop window 20 Even windows can be more interactive, sometimes by becoming interactive screens. MAIN TOOLS: • rich media (QR code) • interactive window display • social shopping • personalized signage • geofencing • facial recognition Source: Social Media today - How to Use Digital in Retail © Lars Plougmann
  21. 21. adidas Part of storefront window is a fully functioning virtual store with life-size products. By touching hotspots on the window the shopper can browse life sized products, make the mannequin show product details, interact with the product and make playful actions and movements. The customer can move products to their personal shopping bag on mobile phone by tapping an NFC tag or zapping a QR code. https://www.youtube.com/watch?v=MYBURgFgP7w 21
  22. 22. in the store 22 In store interactivity can be used to create a specific ambiance or stimulate curiosity. MAIN TOOLS: • internet access • personalized light and sound ambiance • facial recognition • interactive dressing room • interactive mirrors • crowdsourced hotspots • personalized feed • apps (games, in-store maps) • mannequins hologram Source: Social Media today - How to Use Digital in Retail © Mark Sebastian
  23. 23. wiman wiMAN, by installing a wi-fi router, makes a free connection available for all users who get in contact, indoors or outdoors, with the point of sale. The access is via a customizable landing page through social login with Facebook or G+. This way retailers can get users’ likes immediately at the registration and gaining important insights on their behavior. 23
  24. 24. shelfbucks Shelfbucks began a pilot of its mobile shopping services at the Health Mart drugstore in Austin, Texas. The brand’s iBeacon-based technology uses Bluetooth Low Energy to send messages to customers when they enter a store. Sales clerks can also view details of shoppers, including their photo and how long they have been customers. Shoppers can view product information, personalized deals and reviews by placing their smartphone near a Shelfbucks device, while retailers can access detailed analytics. 24 Source: Trendwatching
  25. 25. in front of the product 25 Digital tools can be used to provide a more entertaining or educational trial and information overlapping. MAIN TOOLS: • augmented reality • dynamic signage • social connection • 3D printing • interactive fixtures Source: Social Media today - How to Use Digital in Retail © laverrue • rating & reviews • real time data • mobile check out • rich media panel • show rooming
  26. 26. topshop The integration of digital elements, like augmented reality inside the shop, creates an engaging shopping experience in Topshop. https://www.youtube.com/watch?v=L_cYKFdP1_0 26
  27. 27. Payment The payment experience in store has evolved, integrating digital native tools. MAIN TOOLS: 27 • e-commerce • iTunes • Square • Paypal • NFC • Google glass • virtual currency Source: Social Media today - How to Use Digital in Retail © stevendepolo
  28. 28. square Square is an electronic payments service which enables users to accept credit card payments by using a card-reading portable device connected to their iPhone, iPad or Android device. 28 © Shardayyy
  29. 29. customer service The in store experience does not end when the consumer leaves the shop. It continues with alle the digital channels that allow the brands to offer a complete service. MAIN TOOLS: 29 • google glass chat • web chat • forum • social media • personalized sms • Q&A apps Source: Social Media today - How to Use Digital in Retail © ZERGE_VIOLATOR
  30. 30. boots February 2014 saw personal care retailer Boots host a 90-minute beauty program on its Facebook page. The Feel Like New Live event included style & beauty tips and tutorials. It was live-streamed from one of the brand’s UK flagship stores. During the interactive event, viewers could post questions to the Boots Facebook page, which were answered during a live discussion. 30 Source: Trendwatching
  31. 31. 31 THANK YOU Have you heard of the "art of storytelling"? Discover How to create interesting content for the public! For questions or suggestions please write to: whirlpool_emea@whirlpool.com