The myths of the all-Channel experience and how to be relevant By Brian Girouard Vice President, Capgemini

1. Digital Shopper
Relevancy
Profiting from Your Customers’ Desired
All-Channel Experience
Brian Girouard, Capgemini
November 15, 2012

2. 10 Years + 34,000 Consumers + 18 Countries =
Countless Insights Into Shopping Behavior
Consumer Relevancy 2002 Future Consumer 2007 Digital Shopper Relevancy
16,000 Consumers 2,000 Consumers 16,000 Consumers
9 Countries 4 Countries 16 Countries
Digital Shopper Relevancy | November 2012
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3. Digital Shopper Relevancy
16,000 Consumers in 16 Countries
Sweden Finland
UK
Russia
France Germany
Canada
USA Spain
Italy Turkey China
Mexico
India
Brazil
Australia
The Objective: To understand how a range of channels and devices are used and valued by shoppers
during the All-Channel Shopping Journey
Digital Shopper Relevancy | November 2012
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4. Digital Shoppers* Weave In and Out of Multiple Channels
During the “All-Channel Shopping Journey”
Shoppers are no longer loyal to an individual channel but rather to an experience across all channels
(*) shoppers who use one or more digital channels in one or more phases of their journey
Digital Shopper Relevancy | November 2012
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5. We Analyzed Different Dimensions of Digital Shopping Behavior
Shopping
Journey
Phase
Market Digital
Maturity Channels
6 distinct segments
of digital shoppers
with specific behavior
and preferences
in their digital
shopping journeys
Product
Category
Shopper
Demographics
Attitudes &
Expectations
Digital Shopper Relevancy | November 2012
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6. Segment 1: Techno-Shy Shoppers
1
Passive attitude to technology
Digital channels not important
Only little recent online
shopping
Prefer personal contact
Bought online during last six months
Digital Shopper Relevancy | November 2012
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7. Segment 2: Value Seekers
2
Price-Sensitive,
Looking for best deals
Fashion & Personal Healthcare
More women than men
Bought online during last six months
Digital Shopper Relevancy | November 2012
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8. Segment 3: Occasional Online Shoppers
3
Fewer online transactions
Use digital for
choosing & tracking
Better educated,
majority > 45 yrs
Bought online during last six months
Digital Shopper Relevancy | November 2012
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9. Segment 4: Rational Online Shoppers
4
2nd most active segment
Know what they want
Fashion & Electronics
Less interested in social & mobile
Bought online during last six months
Digital Shopper Relevancy | November 2012
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10. Segment 5: Digital Shopaholics
5
Highest rate of online purchases
Heavy use of digital thru Journey
Social, share opinions
Expect fully integrated experience
Men, working full time, educated
Bought online during last six months
Digital Shopper Relevancy | November 2012
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11. Segment 6: Social Digital Shoppers
6
Frequently shop online, but
purchase < avg in most categories
Social media, smartphones,
identification are important
Young & from developing markets
Bought online during last six months
Digital Shopper Relevancy | November 2012
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12. Developing Countries Have a Higher Degree of Digital-Savvy
Shoppers
Dominant in
developing
markets
43% are
“Digital
Savvy”
Smallest
segment, but
relatively big in
Spain, France &
Germany
Value
Digital Shopper Relevancy | November 2012
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13. Women are More Engaged Than Men When Using Digital
Channels
Women are more interested in:
Receiving personalized offers and recommendations
Receiving inspirational content
Participating in online communities.
Using digital devices inside the physical store
Source: Capgemini, Digital Shopper Relevancy, 2012
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 13

14. Digital Channels Likely Increase the Amount Spent In Stores for
50%+ of Digital Shoppers
I am likely to spend more at the physical store if I have used I am likely to spend more with a retailer if their services are
digital channels to research products before going to the store available at any time via any channel
The Social Digital Shopper The Social Digital Shopper
The Digital Shop-a-Holic
The Digital Shopaholic The Digital Shop-a-Holic
Shopaholic
The Convenience-Seeker
The Value Seeker The Convenience-Seeker
The Value Seeker
The Occasional Online Shopper The Occasional Online Shopper
The Rational Online Shopper The Rational Online Shopper
The Techno-Shy
The Techno-Shy
1.0 2.0 3.0 4.0 5.0
1.0 2.0 3.0 4.0 5.0
1=strongly disagree, 5= strongly agree
Source: Capgemini, Digital Shopper Relevancy, 2012
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 14

15. Most Digital Shoppers Expect Major Changes in All-Channel
Experience In Future
Half of all consumers expect that by I expect that by 2020 most physical retail stores will just be showrooms to select
2020 most physical retail stores will and order product, and the delivery will be done separately at my convenience
just be showrooms to select and order "The Social Digital Shopper"
product “The Digital Shopaholic”
The Digital Shop-a-Holic"
“The Value Seeker”
"The Convenience-Seeker"
"The Occasional Online…
Roughly 80 % of Social Digital "The Rational Online Shopper"
Shoppers and Digital Shopaholics The Techno-Shy"
expect to see fully transformed role of 0% 20% 40% 60% 80% 100%
physical stores by 2020 Positive indication Neutral indication Negative indication
I expect my favorite retailers to provide seamless integration of their online,
Roughly 30-40 % of the traditional physical and mobile shopping experience by 2014
segments are more doubtful about the "The Social Digital Shopper"
pace of digital development of shopping The Digital Shop-a-Holic"
“The Digital Shopaholic”
experience “The Value Seeker”
"The Convenience-Seeker"
"The Occasional Online…
"The Rational Online Shopper"
The Techno-Shy"
56% of global consumers expect
seamless integration of multichannel 0% 20% 40% 60% 80% 100%
shopping experience by 2014 Positive indication Neutral indication Negative indication
Source: Capgemini, Digital Shopper Relevancy, 2012
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 15

16. How to be Relevant?
The Myth of All Channels
Digital Shopper Relevancy | November 2012
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17. The Myths of the All-Channel Experience
Attempting to be great at all aspects of (digital) shopper
engagement is the way to win…
Most businesses understand what their (digital) shoppers
really want…
A compelling website, slick apps, and social media listening
are the ingredients for delivering an
All-Channel Experience…
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 17

18. It’s crucial to be clear on your brand position, and defend it
digitally
Dominate on one attribute Differentiate on another attribute
Be On Par for the rest
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 18

19. Being relevant is about understanding shopper needs and
perceptions across the 5 Key Attributes
Illustrative Access Experience Price Product Service
Easy to reach stores Friendly and clean Competitive pricing Wide and deep Customer Service
store assortment
Easy to navigate Compelling Complaints
No damaged goods Freshness/ Quality
Traditional stores
in store promotions handling /
Relevancy Maximum opening Availability return policy
Inspirational
Criteria for hours Atmosphere
(no stock-outs)
Loyalty program
Physical Channels
“Making It “All About “Lowering “Better “Whatever It
Easy for Your Your Costs” Stuff, Better Takes for
You” Experience” Life” You”
e-Commerce Inspirational Dynamic Pricing Wider and deeper Personalized offers
Additional (mobile, social, Content assortment
web) Location-based Technology-
Relevancy Community pricing Advanced /
enabled staff –
Criteria for visualized product
Flexible delivery- engagements Personalized support in-store
information and
Digital Channels options ( home, (share Pricing Interactive service
(usage) advice
store-pick-up etc.) experiences) via digital channels
Solution Pricing
Mobile in-store Product (e.g. click-to-chat,
Social Shopping Price social media)
Shopping support Comparison
Comparison
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 19

20. Superior execution starts with putting the consumer in the center
and building capabilities to deliver an All-Channel Experience
Put the Shopper at the Center
Relevant
Personal
Engaging
Truly all-channel
Grow the All-Channel Experience
2011 – H1 2011 – H2 2012 – H1 2012 – H2
HIGH HIGH HIGH MED MED MED Future State
Mobile Augmented
MED MED MED Reality Game
Coupons MED MED MED
Mobile Web Location Based
Mobile Presence
Factory Services LOW MED LOW
HIGH HIGH HIGH HIGH HIGH HIGH
Mobile Mobile Google Earth
Ticketing Compensation Enterprise
MED MED MED
MED MED LOW
Mobile App Business Profiling
Factory Process Mgmt MED MED MED
Enhancements
MED MED MED Facebook
Service Service Group Game
Reusable Portal
Define and Build the
Integration Management LOW LOW MED
LOW MED LOW LOW LOW LOW Facebook
Identity & Widget Ticketing
MDM Access Mgmt Factory
HIGH HIGH MED LOW LOW LOW
Bid-Based Strategy, Tools
Capacity Mgmt
Required Capabilities
Integration
Current State
Strategic Foundations Web Presence Social Network Presence
Target Model
Diff Cost Time Enabler
Consumer Interaction
Follow a Phased & Consumer Management
Controlled Approach Commerce Management
Operations Management
Deploy Integrated &
Flexible Business & IT
Architectures
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 20

21. How Can Capgemini Help?
Customer
Digital Social Insight & Digital in the
Digital Strategy Analytics /
Re-Platform Interaction Store
Digital Marketing
Let’s Discuss an All-Channel Experience Discovery Workshop
Digital Shopper Relevancy | November 2012
© 2012 Capgemini. All rights reserved. 21

22. Contact
Brian Girouard
Vice President, Capgemini
brian.girouard@capgemini.com