Malcolm Pinkerton, Research Director at Planet Retail explains how retailers should be delighting modern shoppers at the IBM Driving the Best in Retail Innovation event - 23rd Sept 2014, The Lowry, Manchester

1. Delighting Modern Shoppers
Achieving omni-channel or what consumers call ‘shopping’
September 2014 Malcolm Pinkerton
1planetretail.net
Research Director

2. Delighting modern shoppers
2
Consumers expect omni-channel experiences
Catering for the needs of the modern shopper is essential
Traditional E-Commerce Multi-Channel Omni-channel
Consumers
shop at stores
Consumers
shop online
Consumers
shop instore & online
Consumers engage
anytime, anywhere
via integrated,
seamless experiences
Retailers estimate they lose $65million for every billion
dollars in revenue due to a lack of omni-channel readiness
Source: Retail info Systems “Omni-channel Readiness” October 2013

3. Delighting modern shoppers
3
The shopper journey is now very complex
Need to influence purchasing decisions at every touch-point….
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4. Delighting modern shoppers
4
Planet Retail’s six elements for delighting modern shoppers
1. Provide seamless online experiences
2. Empower smartphone users
3. Create a compelling instore environment
4. Contextualise and personalise shopping
5. Social media to influence purchasing decisions
6. Fulfilment capabilities as a competitive differentiator

5. Delighting modern shoppers - Provide seamless online experiences
5
The share of online spending via mobile devices is growing
PC/Laptop
81.6%
Mobile
9.0%
Tablet
9.3%
PC/Laptop
71.1%
Proportion by Device, 2012 vs. 2013 (%)
Mobile
12.9%
Tablet
16.0%
Spend Online:
2012 2013

6. Delighting modern shoppers - Provide seamless online experiences
6
Retailers need to adopt a “device agnostic” strategy
Regardless of device, website Choice of online retailer influenced by... features deemed important...
52%
49%
Easy to use
Range & choice of product
49%
45%
45%
Good product information
Good quality images
Clear product reviews
51%
a quick & easy
to use website
and checkout
process
39%
a website with lots
of features and
functionality

7. Delighting modern shoppers - Empower smartphone users
7
Catering for the constantly connected consumer is a must
45%
Use mobiles
for shopping
activities
are likely to shop online
via MOBILE in the future
of consumers’
choice of retailer influenced
the website being optimised
for mobile and tablet
71%
BRICs = 57%
28% Non-BRICs = 36%

8. 8
Shoppers WANT to be able to use their mobiles to…
quickly and easily
compare prices
when out shopping
order out-of-stock items
instore for home delivery
33%
read peer
ratings and reviews
when instore
Delighting modern shoppers - Empower smartphone users
Equip consumers with the ultimate shopping companion
navigate a store to
find what they're
looking for
66%
48%
42%
44%

9. 9
44%
of shoppers want to be
able to use their mobiles
to gather loyalty points 43% want to receive real time promotions
& discounts they might be eligible for
when instore
Delighting modern shoppers - Empower smartphone users
Leverage mobile to build loyalty and nurture advocates

10. 3D.e Elimghbtriancge m shoodwerrno oshmoipnpgers - Create a compelling instore environment
10
Despite outperforming stores, it is NOT a channel War!
ALL
Retail
185%
UK: Growth Online vs. Traditional, 2013-2019 (%)
45%
38%

11. 3D.e Elimghbtriancge m shoodwerrno oshmoipnpgers - Create a compelling instore environment
11
Re-inventing the store with the effective use of technology
14% 31%
20%
of shoppers have
interacted with staff
equipped with tablets 17%
of shoppers have placed
an order through a
stationary instore kiosk
33%
of shoppers have
used stores Wi-Fi
via mobile or
tablet
22%
have used an
interactive display
instore to search
more product ideas
& suggestions
8%
52% 19%
28%

12. 3D.e Elimghbtriancge m shoodwerrno oshmoipnpgers - Create a compelling instore environment
12
Consumers use mobile to help purchasing decisions when instore
Threat posed by comparison apps and
sites, shouldn't be underestimated.
31%
of shoppers WANT to
be able to use a
barcode scanner
app to view product
information
Barcode scanners such as the one used by
US retailer Target serve a useful purpose.

13. Delighting modern shoppers - Contextualised and personalised shopping
13
Contextualised shopping experience are a basic requirement
Consumers use their devices when….
WATCHING TV
35% 45%
RELAXING AT HOME
54% 63%
OUT & ABOUT
29% 9%
want to receive real time promotions
and discounts they might be eligible for
41% when instore
20%
Rise in need for contextual
content, adverts and promotions
54%
have used their TABLET to
instantly go online to purchase
an item seen in a TV advert

14. Delighting modern shoppers - Contextualised and personalised shopping
14
Consumers want tailored, relevant experiences
42% of shopper choice of retailer influenced by receiving personalised
promotions and deals
41% want to receive real time promotions, discounts might be eligible
for when instore via their mobile

15. Delighting modern shoppers - Social media can influence purchasing decisions
15
Social media is essential in influencing purchasing decisions
Blend content and commerce to make customers feel valued and integral to the brand’s success is all-important.
39%
take information on social media
into account when making a
purchasing decision
71%
read peer reviews and
recommendations
44%
feel social media is a good
source of peer reviews &
recommendations

16. Delighting modern shoppers - Social media can influence purchasing decisions
16
Enable shoppers to bring their digital selves into store
If consumers crave reviews and
recommendations online, it makes sense to
provide them instore.
Leverage social media & mobiles to get
‘showroomers’ to promote the store or brand.

17. Delighting modern shoppers - Fulfilment capabilities are a competitive differentiator
17
Fulfilment capabilities are a key influencer in the choice of retailer
Consumers’ choice of retailer is influenced by...
48% 56%
56%
51%
more flexible delivery times
and options
52%
same or next
day delivery
47%
ability to use collection
lockers, Click & Collect,
collection points
Fulfilment options being used now...
80% Home Delivery
17% Click & Collect
14% Collection Point
7% Collection
Locker
ability to return
unwanted items bought online to
their nearest store
52%
14%

18. Delighting modern shoppers – achieving omni-channel
18
Planet Retail’s six elements for achieving omni-channel.
1. Provide seamless online experiences
2. Empower smartphone users
3. Create a compelling instore environment
4. Contextualise and personalise shopping
5. Social media to influence purchasing decisions
6. Fulfilment capabilities as a competitive differentiator

19. 19
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