1. Retail
CXO
Roundtable
Strategies
for
Digital
Transforma1on

2. About
Retail
TouchPoints
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insightful content across a variety of
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3. Agenda
• IDC
Maturity
Model
• Customer
Centricity
• Social
Media/Integra1on
• Omni-­‐Channel
• Innova1on

4. Speakers
Moderator
Speaker
Andrew
Gaffney
Ivano
OrHs
Publisher/Editor
Head
-­‐
Interna1onal
Retail
TouchPoints
IDC
Retail
Insights
Panelist
Panelist
Dwight
Moore
Richard
Clarke
Global
Industry
VP
Global
Retail,
Director,
Fujitsu
Manufacturing,
Retail
Salesforce.com

5. New Rules for Retail
Delighting the Customer at the Boundaries of Supply
Chain Optimization and Engagement Orchestration

6. The New Consumer
Behaviors become habits.
Habits become experience.
© IDC Retail Insights Visit us at IDC-ri.com 6

7. The New Customer Journey OmniChannel Moments
of Participation
§
Con1nuos
Research
§
“We
stock
what
you
will
buy”
Discount
/
Browse
Reward
“The
new
archetypes
of
OmniChannel
customers
–
digitally
connected
and
instrumented,
lifestyle
driven
SHmolous
Transact
and
inspired
by
unique
experiences
with
their
preferred
brands
simultaneously
across
all
of
the
available
sales
channels
Follow
up
and
customer
touch
points”

8. The future is now

9. Macy’s – ‘Online Inside’
• 292 stores as distribution centers for online orders
• POS "search and send" inventory promising and
shipping
• Online social-shopping inside stores on "Nexus"
kiosks
• Customer ratings and reviews
• Shopping list
• Facebook friends sharing
• Expanding "Beauty Spot" kiosks
• Bringing endless aisle capabilities on mobile devices
• item-level RFID for inventory visibility and
autoreplenishment (850 stores)

10. Virtual Stores – ‘Online
Outside’
§ Tesco, Woolworths, Well.ca, Ocado, John Lewis,
Sears, Peapod, Klikkapromo.it
§ High traffic locations
§ “virtual” displays on walls
§ QR codes for each item
§ Mobile app
§ New delivery options

11. IKEA Catalogue – Store at Home

12. Omnichannel Case Study: John
Lewis
§ OmniChannel shoppers spend 3.5 times
more than single channel shoppers
§ 27% of John Lewis customers research what
Online they want in store and then purchase online
Inside
§ Over 60% of customers research online before
going to the store
§ Online Takes 25% of All Sales While increasing
Sales in Store Too
Seamless § Click-and-Collect Sales Have Doubled Year-
experience on-Year Since 2009, and Accounts for Over
20% of Online Orders
Online
Delivery
§ M-Commerce Sales Have Doubled
store
§ Mobile Use in Store Plays a Pivotal Role in
Providing the Complete Omnichannel
experience

13. How will you enable OC business
transformations? 5 Key Actions..
Goal: intelligently leveraging, orchestrating and efficiently executing
OmniChannel moments of customer participation into the brand
experience
§ POS become SOP - Store Operations Platforms
§ Retail needs a new platform - O3
§ OC Real-time Intelligence Foundation
§ OC Execution Excellence (fulfilment, promo,
merchandising, ...)
§ New business performance metrics/KPIs
© IDC Retail Insights Visit us at IDC-ri.com 13

14. Retail needs a new platform - O3
Goal – Customer
Experience Optimization
Foundational technology
enablers – Cloud, Big Data,
Social, Mobility
O3 Platform – central
information repository, store
technology (mobile, self,
sensors, RFID,..) & process
orchestration
Intelligence Foundation
Four Functional Domains –
Commerce, Marketing,
Source: IDC Retail Insights, 2012 Fulfilment, merchandise

15. OC Commerce & Marketing Maturity Model
Continuos Experimentation of New Channel Initiatives
Maturity Level
Phase 0: Phase 1: Phase 2: Phase 3: Phase 4: Phase 5:
EXPERIMENTATION FOUNDATION CONVERGENCE PRECISION IMMERSION OPTIMIZATION
Context-Aware OC
Experience
Customer
Offer/Loyalty OC Basket of
Offer/Loyalty Targeted Real-time Personalization Goods OC Basket of Value
Segmentation OC Offer/Loyalty
Offering multiple Lifetime Next Best Value-Add Service
Cross channel On-Demand Differentiation
channels Cross channel Assortment Action Dialogue
services (Click & Support Services Self-Learning OC
collect; loyalty,..) OC Customer “Zero” OOS
Online Inside Experience
Participation
Real-time Thin/smart clients
Data Foundation
Technology
capabilities Embedded touchpoints; POS =
Single Application
Applications for a O3 Platform (all gateway to the
StoreTechnology Intelligence O3 optimization and
customer facing channels) other channels emerging
Model (including location)
omnichannel OC Fulfilment and Single transactional technologies
experience Architecture best Predictive Analytics
merchandising engine (store, integration
practice Advanced customer mobile, online)
Sensors
Inventory/RFID intelligence
Social integration
Omnichannel SC,
Fulfilment and DC Omnichannel
Single Message Embedded
Store/Online structure Customer-centric Omnichannel
Process &
inventory merchandising Marketing
Defining the OC Price Culture
People
integration Customer
Business Case Optimization OC CRM Continuos OC
OC KPIs Experience
OC Business OC Promotions Process
Identification Innovation
Performance Optmization
Management
Management

16. Essential Guidance – A Roadmap
Cost Containment Productivity Platforms Omnichannel Revenue
30% -> 10% 60% -> 40% 10% -> 50%
Justified based on Justified based on the Justified based on a
standard ROI. Includes: option value of scale. straight business case.
Includes: Includes:
• Operational Waste • O3 Platform • Mobile Commerce
• Insurance Loss • Cloud • Social Commerce
• Energy Management • Big Data • Ecommerce Conversion Rates
• IT Support Costs • Mobility • On-Line Inside (the store)
• Indirect Expenses • Social Business • Expanded Private Label
Use Savings to Fund: Create Ability to Support More:

17. Thank You! Question?
Ivano Ortis
Head – IDC Retail Insights International
iortis@idc.com
+39-02-28457344 (office)
+39-3480092223 (mobile)
Join me & your peers in the conversations in our
IDC Retail Insights Community

18. BECOME A CUSTOMER COMPANY:
CONNECT WITH YOUR CUSTOMERS IN A WHOLE NEW WAY
Dwight Moore
Global Industry Director, Manufacturing and Retail
dwight.moore@salesforce.com
@dwightpmoore

19. Winning Customer-Centric Retail Strategies
1. 360
degree
view
of
the
customer
across
channels.
2. Bridge
social,
online
and
in-­‐store
experiences
into
a
seamless,
loyalty-­‐inducing
conversa1on.
3. Drive
employee
empowerment/educaHon
through
collaboraHon.
4. Transform
shopper
experience
innovaHon
into
a
core-­‐competency.

20. Burberry Increases Productivity with Burberry World
$2B Luxury clothing retailer
9,500 employees, 444 stores
Burberry World
Custom collaboration platform for employees with
groups, profiles, and feeds

21. Connecting with Customers In a New Way
Social
9,500
Supply
Chain
Employees
Customer World
for
Profile Partners
Social
Clienteling
VIC
Experience
Burberry
Body
World
Customer
Service:
Mobile
Apps:
The
Burberry
Runway
to
Experience
Reality
Back
Office
Social
Integra1on
Media
burberry.com
Stores

23. Social Media Integration
Richard Clarke, VP, Global Retail, Fujitsu
January 2013

24. Key Issue #1 – Getting Engagement
“Social media is a free,
massive focus group,
taking place in real time.
And it is taking place
with or without your
permission.”
Rick Bendel
Global Chief Marketing Officer
Walmart
…retailers don’t have customer engagement and process control
INTERNAL USE ONLY 24 Copyright 2013 Fujitsu America, Inc.

25. Key Issue #2 – Measurable Value
1. Direct f-commerce has delivered mixed results –
some sites removed
2. More retailers are trying to convert ‘fans’ into brand
advocates (‘likes’, ‘fan first offers’, ‘focus groups’)
3. ‘Social clienteling’ is combining social, mobile and
data analytics tools to drive personalised marketing
4. In store integration will follow – ‘checking in’ sites
and instant customer service
…retailers need to balance social engagement with brand promotion
INTERNAL USE ONLY 25 Copyright 2013 Fujitsu America, Inc.

26. Top Shop.com – 2012 Fashion Week
• UK fashion brand – 300+ stores, 39 countries
• 2 million+ people in 100 countries tuned in to ‘shoot
the show’ (200m ‘exposed’ to content)
• Facebook fashion fans – via an integrated camera –
were able to capture and customise key looks
• Everything in the video (clothes, music and
cosmetics) could be bought and shared across every
platform, channel and device
Topshop Partner with Facebook on Technology - Creating Fashion First - YouTube
…showing how to convert ‘likes’ into customer satisfaction and business value
INTERNAL USE ONLY 26 Copyright 2013 Fujitsu America, Inc.

27. Topshop.com – social commerce
INTERNAL USE ONLY 27 Copyright 2013 Fujitsu America, Inc.

28. Topshop.com – social commerce
INTERNAL USE ONLY 28 Copyright 2013 Fujitsu America, Inc.

29. INTERNAL USE ONLY 29 Copyright 2013 Fujitsu America, Inc.

30. Thank
You—Con1nue
the
Conversa1on
• Visit
Fujitsu
booth
#1033
at
the
Salesforce.com
Social
Clienteling
Tas1ng
Sta1on
• Schedule
a
free
CRM
Transforma1on
Planning
Workshop