Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey

Coming
Full-‐Circle:
The
Store
As
The

Center
Of
The

Omnichannel
Shopping
Journey

Presented by

Session sponsored by

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2013

ü 5 Webinars, 4 Days
ü Sessions covering Store
Ops, X-Channel, Loyalty,

ü Featuring industry
analysts and consultants

ü Free for Retail executives

Big Data & more

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Panelists

Pam Goodfellow

Principal Analyst, Consumer
Insights Director
Prosper Insights & Analytics

David Vitak

Global Business Solutions
Avanade

MODERATOR

#RetailCCS

Alicia Fiorletta
Senior Editor
Retail TouchPoints

Randy Misener

Director, Retail Industry Business
Development
Avanade

Omnichannel Engagement:
Connecting With Consumers Instore
In An Increasingly Digital World
Pam Goodfellow
Principal Analyst
Consumer Insights Director
December 11, 2013

© 2013, Prosper®

www.ProsperDiscovery.com

ABOUT PROSPER
Since 1990, Prosper Business Development
•  Has helped business see the future
•  Provided solutions to be successful in an everchanging marketplace
Prosper Insights & Analytics™
•  Provides forward looking insights and analytics
predictive of consumer behaviors
•  InsightCenter platform analyzes millions of data points
including our own
•  10 Year Relationship with the National Retail Federation
–  Providing predictive consumer data and analysis for
all major U.S. holidays
–  Power the NRFF Retail InsightCenter, which allows
the public to explore and gather retail data

© 2013, Prosper®


What’s Driving Spending Today?

Connecting with Consumers Instore

Consumer overview with a look a key
indicators, including confidence and
practical purchase intentions.

Know Your Customers
Know Your Competitors’ Customers
Service, Service, Service

Holiday 2013 highlights, revealing
spending plans, purchase motivations,
and shopping strategies.

© 2013, Prosper®


CONSUMER CONFIDENCE
Very Confident/Confident in Chances for a Strong Economy
Adults 18+

45%
40%

39.7%
36.4%

35%
30%
25%

28.3%

Thanks in large part to October’s
government shutdown,
economic sentiment dropped
dramatically in Oct-13.
Current confidence reading rests
8% below Nov-12, but remains
above recession-era readings…
so we’ve seen worse.
Employment, Income Growth,
Financial Stability, etc. continue
to take a toll on consumer
psyche headed into the 2013
Holiday season.

20%

Source: Prosper Insights & Analytics™

© 2013, Prosper®


PRETTY PRACTICAL PURCHASERS
In the last six months, have you made any of the following changes?
Adults 18+, 3 Month Moving Average

65%

While practical spending and
focus on needs peaked during
the recession, consumers still
haven’t reverted to their old
habits.

60%
55%
50%
45%
40%
35%
Nov-07
Mar
Jul
Nov-08
Mar
Jul
Nov-09
Mar
Jul
Nov-10
Mar
Jul
Nov-11
Mar
Jul
Nov-12
Mar
Jul
Nov-13

30%

I have become more practical and realistic in my purchases
I focus more on what I NEED rather than what I WANT

As of November, more than half
(52.6%) still focus more on what
they need rather than what I
want when at the store, while
nearly as many (47.5%) cite
pragmatic purchase plans.
Holiday 2013 buzzwords:
cautious, conservative,
budget-conscious, and SALE!

© 2013, Prosper®


While Holiday spending has improved from the recession…

SHOPPERS AREN’T SPENDING LIKE IT’S 2007.
Holiday 2013 Planned Spending per Person*
Gifts, Décor, Cards, Food & Flowers

$780
$760

$751

$755

$752
$741

$735

$740

$719

$720
$700

$738

$700

DOWN
1.9%
from 2012

$694
$682

$680
$660
$640

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: National Retail Federation, Prosper Insights & Analytics™
* Estimated Actual Spending 2004 - 2012

© 2013, Prosper®


INSTORE’S VIRTUAL CHALLENGER
Where were Thanksgiving/Black Friday budgets spent?
Black Friday Weekend Shoppers 18+
90%
80%
73%

70%

56%

60%
50%

44%

40%

27%

30%
20%
10%

This year, 44% of
Thanksgiving/Black
Friday weekend
budgets were spent
ONLINE by
shoppers, rising 63%
from 2007.

0%
2006

2007

2008

2009

Instore

2010

2011

2012

2013

Online
Source: National Retail Federation, Prosper Insights & Analytics™

© 2013, Prosper®


DIGITAL CHANGING THE LANDSCAPE
Which of these ways do you research the following items before purchasing?
by Generation
70%

BIG TICKET
ELECTRONICS

60%
50%
40%
30%
20%
10%
0%

In the store
Mobile device
(Smartphone/tablet)
Online on a laptop/
desktop computer

Millennials (1983 – 1995), Gen X (1965 – 1982), Boomers (1946 – 1964), Silent (born pre-1946)

© 2013, Prosper®


DIGITAL CHANGING THE LANDSCAPE
Which of these ways do you research the following items before purchasing?
by Generation
60%

APPAREL

50%
40%

In the store

30%
20%
10%
0%

Mobile device
(Smartphone/tablet)
Online on a laptop/
desktop computer

Millennials (1983 – 1995), Gen X (1965 – 1982), Boomers (1946 – 1964), Silent (born pre-1946)

© 2013, Prosper®


How Can Instore
Retailing Compete With
Digital?

© 2013, Prosper®


Solutions for Engaging Customers Instore

1

Know Your Customers

2

Know Your Competitors’ Customers

3

Service, Service, Service

© 2013, Prosper®


KNOW YOUR CUSTOMERS
Influence to Purchase Apparel

weighted by consumption for shoppers of a leading U.S. department store
Social
Media, 8%
Mobile
Advertising,
9%

Online
Advertising,
20%

Traditional
Media, 63%

Goal:
Maximize marketing efforts to reach
shoppers most effectively to and
drive traffic instore using exclusive
promotions, merchandise, shopper
services, etc.

Source: Prosper® Media Plan IQ™

© 2013, Prosper®


KNOW YOUR COMPETITORS’ CUSTOMERS
Influence to Purchase Apparel

weighted by consumption for shoppers of leading U.S. department stores
Traditional Media

Online Advertising

Mobile Advertising

Social Media
0%

15%

Department Store A

30%

45%

60%

75%

Department Store B
Source: Prosper® Media Plan IQ™

© 2013, Prosper®


KNOW YOUR COMPETITORS’ CUSTOMERS
Mobile Aptitude Score

shoppers of leading U.S. department stores indexed to Adults 18+

A

129.9

B

88.2

C

88.1

D

140.6

E
80.0

99.5
90.0

100.0

110.0

120.0

130.0

140.0

150.0

© 2013, Prosper®


SERVICE, SERVICE, SERVICE

DID YOU FIND
EVERYTHING
OK?
© 2013, Prosper®


CUSTOMER SERVICE PITFALLS
1. Uninvested Employees
“Coworkers are very rude and standoff-ish to the customers. They act as if the customer
inconveniences them even though it is their job to help the customers.”
“I told the cashier I couldn’t find what I needed in the store and she said ‘sorry about that’ and didn’t
offer to help or anything at all.”

2. Draining Atmosphere
“I just don't feel good in that store.”
“[The] last time I was there..., I waited for help for over 20 minutes and then got a salesperson who
knew nothing. The store was a disaster. The checkout lines were ridiculous. That was over 4 years ago,
and I have not been back.”

3. Inconsistency
“They have so many rules that keep changing and are so rigid, but then you get a different person
and it’s a different policy. No continuity and when there is, it inconveniences the customer.”
“They do not seem to know what they are doing, especially when you order online and arrange for
pick up in a store. I received different answers from everyone I called, and no one appeared to be
interested in solving my problem.”

© 2013, Prosper®


KEY TAKEAWAYS
Shoppers are budget-conscious, careful spenders
•  Today’s consumers have adopted smart shopping strategies to compare prices, look
for the best deals, and become more informed shoppers – making it more difficult for
retailers to cultivate a “loyal” shopper.
•  Online and mobile connectivity have only enhanced shoppers’ ability to educate
themselves on their purchases.
•  Buying online offers today’s busy, multitasking, channel agnostic consumers timesaving convenience, creating a challenge for instore retailing.

Retailers need to provide clear, cohesive, consistent messaging to
shoppers across all channels.
•  Knowing how to reach your customers and your competitors’ customers will help
maximize efforts to drive shopper traffic into stores.
•  Customer service practiced effectively helps a retailer provide that delightful instore
shopping experience – a key point of differentiation that can increase the probability
of a shopper’s return visit.

© 2013, Prosper®


CONTACT
Pam Goodfellow
Principal Analyst
Consumer Insights Director
pam@goProsper.com

© 2013, Prosper®


Connected Retail Day-In-The-Life

© Copyright 2013 Avanade Inc. All Rights Reserved.

26

Your Speakers Today: David Vitak and Randy Misener
From Avanade
Avanade provides business technology solutions and managed services that connect
insight, innovation and expertise in Microsoft technologies to help our customers
realize results.


Avanade Connected Retail
Avanade’s Connected Retail
portfolio of solutions and services
empowers your employees to
deliver greater value and
reinvents customer experiences
to strengthen customer loyalty.

Our solutions focus on five key
retail business areas:
In-Store Experience
Omni-Channel Enablement

We leverage Microsoft technology
and Accenture industry insights and
leading practices to deliver
innovative retail solutions rooted
in real results.

:

Digital Marketing
Data and Analytics
Customer Service and Collaboration


How can we make the retail store more convenient and
compelling for your customers?
>How can we integrate the store with other channels to provide

Consistent Engagement across channels?
Expert Support to customers in store

>How can we deliver
making their experience more convenient?

Personalized Attention

>How can we provide
making their experience more compelling?

Memorable Interactions that

>How can we drive
enrich the customer’s overall experience?


Day-in-the-Life of Retail Customer
Scenario:

A repeat customer starts shopping on-line but
wants to continue her shopping journey in the
store. How can we make her experience more
compelling and convenient?


30

>Consistent Engagement

CUSTOMER DOES RESEARCH ON-LINE

START

E-COMMERCE WEBSITE
Search Driven discovery
and navigation engages the
customer to do some
research for a new phone



CUSTOMER REQUESTS APPOINTMENT ON-LINE

REQUEST APPOINTMENT
Customer completes an
appointment request on-line
to meet with an expert on
smart phones in the store.



APPOINTMENT IS CONFIRMED VIA EMAIL

CUSTOMER RECEIVES EMAIL
Customer receives the
appointment request on-line and
also receives an email
confirmation.



APPOINTMENT SET IN THE STORE
Onto Personalized Attention &
Expert Support in the Store

STORE INTEGRATION
Store Associate is automatically
notified of the appointment on
his appointment dashboard of
his Assisted Selling Tool.


34

>Personalized Attention

STORE ASSOCIATE PREPARES FOR WORKDAY

ASSISTED SELLING
DASHBOARD
Sales Associate sees Sales
Graphs, Tasks and News on
the Dashboard to ready him
for the day and for his
appointments.



ASSOCIATE PREPARES FOR APPOINTMENT

APPOINTMENT DETAILS
Store Associate prepares for
the appointment by reviewing
customer’s information and
status.



ASSOCIATE MEETS THE CUSTOMER

APPOINTMENT DETAILS
Store Associate access
appointment details and
reviews customer’s history
and current need(s) with the
customer.


37

>Expert Support

ASSOCIATE CONSULTS WITH CUSTOMER

FINDING THE RIGHT
PROUCT
Store Associate works with
customer to find the right
product by refining and
searching for product
selections by asking
guided questions and
setting filters.


38

>Expert Support


REVIEWING PRODUCT DETAIL

COMPARE PRODUCTS
Sales Associate refines product selections by
asking questions and setting filters.


>Expert Support


PROVIDING HELPFUL INFO
Store Associate has quick
access to all the information
needed to handle the
customer’s questions:
• 
• 
• 
• 
• 

Chat– Talk to an expert
Inventory View – Stock positions at other
stores
Promotions – How can we make this
selection even more appealing?
Competition – Prices and offers of other
retailers
Save Materials – Email the customer the
rich media we reviewed


41

>Expert Support

ASSOCIATE COMPLETES SALE

CHECKOUT
Store Associate
completes the sale by
either taking payment on
the mobile device or
sending the transaction
to a traditional POS.


42

>Expert Support

GATHERING CUSTOMER FEEDBACK

IMPROVE SALES PROCESS
Sales Associate completes
some survey questions to
capture details of the customer
interaction.


>Memorable Interactions

MAKING THE PURCHASE MORE CONVENIENT

LONG LINE IN THE
STORE

FORGOT
SOMETHING?

COMPLETE THE
TRANSATION

Mobile POS lets customers
orders to be entered while in
line to speed up checkup using
Line Busting.

Suspend the order to avoid
having to repeat work and
waste time while the
customer goes and gets the
missing items.

Accept Credit Cards and
Capture Signatures on the
mobile device. Or let the
customer use their own
mobile phone as a mWallet
to make the payment using
NFC technology.


>Memorable Interactions

AND THE STORE MANAGER HAS A KEY ROLE!

MOBILE RETAIL BACK OFFICE

MANAGER ACTIONS

Joe, the assistant store manager, is
walking around the store to complete
his daily tasks list.

While looking at the store’s
latest performance metrics, he
is alerted that a quick price
change is required.
Immediately he accesses and
specific menu option on his
tablet to automatically change
the price .

He uses his tablet to mark off
completed activities, check inventory,
take picture of issues that can prevent
a positive customer experience.


What’s Next in Creating Memorable Interactions?

Next-Generation Store Technology


>Memorable Interactions & The Next Generation Store

Kiosks and Displays

OUTSIDE TRADITION

INSIDE ACCESS

On arrival at the store, you see
the retailer has their “best sellers”
for sale in a vending machine
just outside the store. Sounds
interesting, but anyway, you
decide to enter into the store.

You decided to use the kiosk
or display at the store.
• 
• 
• 
• 
• 
• 
• 

Identify yourself
Browse the catalog to create a
shopping list
Print out the coupons (for instance, if
you forgot your mobile device at home
with your digital coupons)
Make a product reservation
Make a purchase
Ask for personal assistant (OC)
Read other customer’s reviews



Displays with Interactive Mobile Technology

GRAB & GO
Scanning the QR Code from
the Kiosk or the display you
download the information to
your phone including a map
of the location of the item in
the store.


48


Displays with Motion Sensitive Technology

ATTRACTING INTEREST

ENCOURAGING INTERACTION

You walk by a store after hours and
you see an interactive device on
the window…

You start interacting just for fun and you find out that

there some cool items in the store and you end-up
finding the product of your wife’s dreams and
scan the QR code to your phone to share later.



In-Store Digital Showcasing

NEXT GEN TECHNOLOGY & DIGITAL ASSETS
Leverage digital assets with next-gen technology, such as RFID tags and
Windows Embedded Devices, the Retailer creates new and memorable
customer experience, such as a Connected Fitting Room, for real-time
interactive information and support on garments in the fitting room.


These Next-generation store technology
can give your customers want they want:

Consistent Engagement
across channels

Expert Support
making their purchase more convenient

Personalized Attention
supporting their unique profile and needs

Memorable Interactions
enriching their overall experience

To learn more about the
Solutions discussed today:
Email john.a.konczal@avanade.com


51

Kick-off NRF in style by
attending the Opening
Night Reception at the
Marriott Marquis Times
Square

More Modern
More Mobile
More Global

Sunday Jan 12
5:30 – 7:30 pm

Visit Booth # 2703 to
learn more

BIG !deas Session:
Become a Dynamic
Retailer and Make Sure
You’re Ready for What’s
Next

Follow all the action live on
Twitter and Facebook

Monday Jan 13

@msretail
FB.com/MicrosoftforRetail

3:15 – 4:15 pm

Help
us
Support
RetailROI
at
NRF
this
year…

Schedule
a
meeBng
with
Avanade
at
NRF
and
aEend
it,
and

Avanade
will
donate
$25
to
RetailROI.

The
Purpose
of
the
Retail
Orphan
IniJaJve
(RetailROI)
is
to
raise
awareness
and

provide
real
soluJons
for
the
more
than
400
million
vulnerable
children

worldwide.

Visit
www.retailroi.org
for
more
informaJon.

To
schedule
a
meeJng,
send
an
email
to
john.a.konczal@avanade.com
with
the

subject
line
NRF
MeeJng
or
visit:

h1p://www.avanade.com/advisor/NRF2014/Pages/naJonal-‐retail-‐federaJon.aspx

to
schedule
on-‐line.

#RetailCCS

Q
&A
//
Panelists

Pam Goodfellow

Principal Analyst, Consumer
Insights Director

David Vitak

Global Business Solutions
Avanade

MODERATOR

#RetailCCS

Alicia Fiorletta
Senior Editor
Retail TouchPoints

Randy Misener

Director, Retail Industry Business
Development
Avanade

Thank
You

For
Joining
Us

The next Connected Consumer Series session…

Delivering
Omnichannel:
From

The
Back-‐End
To
The
Front-‐End

and
Beyond
Tomorrow, 12 PM ET / 9 AM PT
www.retailtouchpoints.com/special-connected-consumer-series-2013

#CCSeries13

Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey

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