The document discusses the changing role of physical stores for digital shoppers. It notes that shoppers now weave between multiple channels, including stores, during their shopping journeys. While stores are still important, the internet has surpassed stores as the preferred channel for early shopping stages. The document advocates for a clienteling approach that merges in-store and digital engagement to better understand shoppers across different attributes like access, experience and price. It recommends pilot programs using a "hothouse methodology" to prove new store technologies and digital strategies in a hands-on manner.

1. The relevance of
Stores for
Digital Shoppers
Kees Jacobs
September 2014

2. Consumers increasingly weave in and out of multiple channels,
including stores, during the “All-Channel Shopping Journey”
Moments of Truth
Caring Trusting
All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 2
Source: Capgemini Digital Shopper Relevancy Study, 2012;
Personal
Relevant Convenient
Engaging
Flexible
Value for
Money
Rewarding
Novel
Innovative
Exciting
Shoppers are no longer loyal to an individual channel
but rather to an experience across all channels

3. All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 3
It‟s important to follow your customer‟s voice
56% of companies
described themselves as
customer centric. Only
12% of their customers
agreed

4. Digital Shopper Relevancy is about understanding shopper needs
and perceptions across 5 Key Attributes
Access Experience Price Product Service
All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 4
Friendly and clean
store
Easy to reach stores
Easy to navigate
stores
Compelling
promotions
Freshness/ Quality
Maximum opening
hours
Availability
(no stock-outs)
No damaged goods
in store
Inspirational
Atmosphere
Customer Service
Complaints
handling /
return policy
Loyalty program
Wide and deep
assortment
Competitive pricing
Traditional
Relevancy
Criteria for
Physical Channels
Dynamic Pricing
Mobile in-store
Shopping support
Advanced /
visualized product
information and
(usage) advice
Product
Comparison
e-Commerce
(mobile, social,
web)
Flexible delivery-options
( home,
store-pick-up etc.)
Personalized
Pricing
Additional
Relevancy
Criteria for
Digital Channels
Personalized offers
Technology-enabled
staff –
support in-store
Interactive service
via digital channels
(e.g. click-to-chat,
social media)
Wider and deeper
assortment
Solution Pricing
Inspirational
Content
Community
engagements
(share
experiences)
Social Shopping
Location-based
pricing
Price
Comparison
Illustrative

5. 1. Dominate on one value attribute
All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 5
How Can You Be Most Relevant to Digital Shoppers?
2. Differentiate on a compatible
value attribute
4
Illustrative
3. Maintain parity on others
3 3
5
Successful companies dominate on one attribute, differentiate on a second and compete
at parity on the remaining three
3
Access Experience Price Product Service

6. All-Channel Experience | 2014
price
smartphones
social media
service
all-channel experience
© 2013 Capgemini. All rights reserved. 6
But: what is relevant for your Digital Shoppers ?
shopping journey
18 countries*
foodfashion
18,000 consumers
health & personal care
web
technology-enabled consumers
DIY
electronics
digital channels
tablets
kiosks
e-commerce
access
experience
product
apps
Canada
USA
Mexico
Brazil
Sweden Finland
China
India
Australia
Russia
France Germany
Italy
UK
Spain
Portugal
Japan
Netherlands

7. All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 7
There is no „one‟ digital shopper
We found 4 distinct behaviour patterns in mature markets
 Reluctant Digital Shopper (11%)
Not comfortable using technology; prefer
physical stores
 Value-Conscious Digital Shopper (29%)
Prefer in-store shopping, but comfortable
using the Internet & email
 Socially-Engaged Digital Shopper (41%)
Heavy users of digital technologies and
comfortable using Social Media
 True Digital Shopper (19%)
Purchases online most frequently, use
apps, sacrifice personal data for
customized deals.

8. Sweden is in the middle-group in terms of „digital shopper savvyness‟
All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 8

9. In the early phases of the shopping journey, internet has surpassed
stores as preferred channel
All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 9
Importance of different channels to learn about products and promotions :
Most important
2nd most
important
3rd most
important
4th most important 5th most important
6th most
important
Least important
Australia Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Canada Traditional store Internet site Email In-store technology Social media Smartphones Phone – call center
Finland Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
France Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Germany Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Italy Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Japan Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center
Netherlands Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Portugal Internet site Email Traditional store In-store technology Social media Smartphones Phone – call center
Spain Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Sweden Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center
UK Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
USA Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Brazil Internet site Traditional store In-store technology Email Social media Smartphone Phone – call center
China Internet site Traditional store Smartphones In-store technology Email Social media Phone – call center
India Internet site Smartphones Email In-store technology Social media Traditional store Phone – call center
Mexico Internet site Traditional store In-store technology Social media Email Smartphone Phone – call center
Russia Internet site Traditional store In-store technology Email Social media Smartphones Phone – call center
Total Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

10.  Store is still the favored destination; 72% of shoppers saw the store as important or very
 Only 14 per cent of shoppers strongly indicate that physical stores have become less important
All-Channel Experience | 2014
© 2013 Capgemini. All rights reserved. 10
Nevertheless, physical stores still reign – for now
important compared to 67% for the Internet
for them.
 However, in the future, the majority
of shoppers (51 percent) say they
will spend more money online than
in-store.
 In addition to the smartphone‟s
ubiquitous growth, in-store digital
interactions (eg via kiosks) are
popular amongst shoppers,
suggesting that the introduction of
more technology into retail stores
would be a welcome shift for the
consumer.
The relevance of the physical store in the purchase and payiment of a product

11. ClientAssist | 2014
How should stores anticipate digital shopper behaviours ?
Copyright © Capgemini 2014. All Rights Reserved 11

12. ClientAssist | 2014
Copyright © Capgemini 2014. All Rights Reserved 12
For example via Clienteling:
merging in-store and digital customer engagement
CLIENTELING (N)
- A CAPABILITY TO MANAGE PERSONAL
CUSTOMER ENGAGEMENT IN A WAY THAT
DRIVES TRAFFIC TO YOUR STORE, PROVIDES AN
EXCEPTIONAL IN-STORE SHOPPING EXPERIENCE
AND KEEPS YOUR CUSTOMERS COMING BACK
FOR MORE.
The store is the best place to work “all senses”

13. ClientAssist
Engage Customers Across Clicks and
Bricks to Improve Sales and Loyalty

14. ClientAssist | 2014
A new and differentiating approach to Clienteling: ClientAssist
Copyright © Capgemini 2014. All Rights Reserved 14
Mobile Clienteling
Technologies In-Store
Cloud-Based
Integration Platform
Single View of Customer
Single View of
the Customer
Focus on the Store
Via Proven Hothouse Methodology
Actionable
Insights & Campaigns

15. ClientAssist | 2014
This requires more than „throwing technology into the store‟
Pilots Hardly Make It to
Full Rollout
Copyright © Capgemini 2014. All Rights Reserved 15
Resistance From Stores
to Digital Changes
Store managers and store staff
feel uncomfortable with digital
tools and perceive it as a threat
Benefits Disappear After
Initial Focus
Stores do not understand how to
maintain relationships with
customers beyond transactional
interactions
After the initial push, stores return
to old ways of working
Lack of Customer Focus
Costly new technology-driven
initiatives are continually tested
but in many cases never rolled out
further

16. The best way to prove succes is via a Hothouse: a bottom-up
change approach that enables direct, small-scale „doing and learning‟
Traditional Hothouse
ClientAssist | 2014
Mgt.
Central
Ops
Region
Channel
Customer
Copyright © Capgemini 2014. All Rights Reserved 16
Deep Customer Insights
(contextual understanding)
Agile Implementation
(scrum-team iterations)
Regional Scope
(focus on selected customers)
Focus on Quick Results
(managing high impact)
Piecemeal Scope
(create optimal conditions)
Collaborative Approach
(multiple disciplines
with common focus)
Where the top-down vision and strategy meets
the bottom-up change mobilisation
Grow Share of Heart: increase loyalty by truly taking care of customers
Grow Share of Wallet: increase spending of current customers
Grow Share of Market: attract new customers, grow current customers
Showing the tangible business value in real-life !

17. THANK YOU !
The relevance of
Stores for
Digital Shoppers
Kees.Jacobs@Capgemini.com