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Myer - Connecting with China | Online Retailer Conference 2017

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Over 1.4 million Chinese tourists visited Australia last year, spending on average $8000 a visit. Myer saw this as an opportunity to generate a new revenue stream, and partnered with ThoughtWorks to identify new ways to connect with this previously untapped segment.

In January 2017, following five weeks of rapid development, Myer launched a digital engagement platform on top of WeChat, aiming to attract Chinese customers to shop in-store, just in time for Chinese New Year.

Pete shared the story behind this innovative new platform as well as the results of the pilot at the 2017 Online Retailer Conference in Sydney.

Access the full story here https://www.thoughtworks.com/clients/myer

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Myer - Connecting with China | Online Retailer Conference 2017

  1. 1. O N L I N E T O O F F L I N E 
 L E V E R A G I N G W E C H AT T O AT T R A C T C H I N E S E C U S T O M E R S T O S H O P I N - S T O R E P e t e r M i t c h l e y - H u g h e s E x e c u t i v e G e n e r a l M a n a g e r B u s i n e s s T r a n s f o r m a t i o n
  2. 2. “In the battle to stay relevant,
 organisations have to be capable of changing more quickly and more comprehensively than ever before.” Gary Hamel, Associate Professor, London Business School
  3. 3. NEW MYER’S FOUR STRATEGIC PRIORITIES UNDERPINNED BY ORGANISATIONAL CAPABILITY - Cluster optimisation - Category optimisation - Brand optimisation - Channel optimisation - Localisation - Supplier collaboration - Elevated Visual Merchandise - Dwell spaces - Improved fitting rooms - Enhanced Myer Hub - Signature service - Trained and capable staff - Targeted customer engagement - Strengthen online proposition - Online to Offline - Right infrastructure and operations - Store network optimisation - Flagship store emphasis - Right sizing 
 support office - Cost focus and 
 efficiency focus - Efficient operating model - Technology, processes, systems- Execution focused culture - Strengthened balance sheet WONDERFUL EXPERIENCES CUSTOMER LED OFFER OMNI-CHANNEL SHOPPING PRODUCTIVITY STEP CHANGE 2 3 41
  4. 4. • Customer centricity • Relevance
 • Technology • In the service of service • Online to Offline • Core Systems & Productivity
 • Data • Business Intelligence • Personalisation
 4 NEW MYER THEMES
  5. 5. PRODUCTS AND SERVICES Current New Current CUSTOMERANDMARKETS New Current Products sold to New Customers or Markets Current Products sold to Current Customers New products and Services sold to New Customer and Markets New Products and Services sold to Current Customers THE OMNI-CHANNEL SHOPPING TRANSFORMATION FRAMEWORK
  6. 6. INTERNATIONALEXPANSION 1.4M Chinese tourists visited Australia in 2016 $8,000 spend on average, per person 27.4% p.a. CAGR prediction of global cross-border B2C volume
  7. 7. TOOLS & CHANNELS BEHAVIOUR EXPECTATION PAIN POINTS WECHAT PAY Compare price between retailers Buy on behalf Australian exclusive products Chat over WeChat when making decisions in store Compile shopping lists ahead of the trip Shop with confidence Unfamiliar with store setting Language barrier Sharable experiences Hard to locate products quickly Fun games Limited opening hours Complex tax refund policies Mobile payment
  8. 8. TEST & LEARNLeveraging WeChat to attract Chinese consumers to shop in-store
  9. 9. 10-WEEKPILOT MARKET AND USER RESEARCH DIGITAL PLATFORM BUILD PLATFORM LAUNCH RESULTS ANALYSIS FOR FUTURE INVESTMENT Ideate with real customers and craft meaningful digital experiences Prioritise the most feasible and valuable ideas to build on top of the WeChat platform Coordinate stores and brands and launch the platform for Chinese New Year travellers Review results prior to making further investment WEEK 0 WEEK 3 WEEK 10WEEK 9
  10. 10. WeChat THE MOST POPULAR CHANNEL TO REACH CUSTOMERS IN CHINA monthly active users 806million 10million brand accounts Data source: KPCB, jing daily 92% of luxury brands own a WeChat account 2015 2016 15% 31% 2x China’s Online purchases through WeChat
  11. 11. CLICK HERE TO VIEW THE VIDEO
  12. 12. INFLUENCERPOST IN-STORECHINESECOLLATERAL +CHINESESPEAKINGASSOCIATES REDENVELOPGAME INFLUENCER CONTENT SHAKESHAKEFORDEALS ANDOFFERS REDEEMREDENVELOP GIFTCARDS ATTACHADIGITALMESSAGETO PHYSICALPRODUCTS PURCHASEDIN-STORE DISCOVERMYER WECHATACCOUNT IN-STORE ENGAGEMENT +CONVERSION ACTIVATION FRIENDSREFERRAL USER JOURNEY
  13. 13. 85% of gift cards redeemed within 2 weeks RED ENVELOPE GAME SHAKE SHAKE 400% ROI 28,000 Product offers were viewed 12 Shakes per visit (on average) 15.43% Average daily growth rate 127,000 Content views WECHAT ACCOUNT PILOT RESULTS
  14. 14. WHAT THE FUTURE LOOKS LIKE ANALYTICS AND REPORTING Customers, conversations, purchases MAFENGWO ENGAGEMENT PLATFORM AWARENESS ACCESS PURCHASE LOYALTY TRAVEL AGENCIES
  15. 15. Agility - Retailers can innovate quickly and cost effectively without making a large upfront investment, by collaborating directly with real customers Contextual customer learning - Leverage your store network to test new concepts in a real shopping context Beyond marketing - Create awareness and build engagement through valuable services that solve real problems, not just content marketing OUR LEARNINGS
  16. 16. T H A N K Y O U ! P e t e r M i t c h l e y - H u g h e s E x e c u t i v e G e n e r a l M a n a g e r B u s i n e s s T r a n s f o r m a t i o n D o w n l o a d t h e s l i d e s h e r e : t h o u g h t w o r k s . c o m / t a l k s / m y e r

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