1. RETAIL
INNOVATIONS
2012
Q2
1

2. Overview
Retail
and
the
new
Customer
Journey
2
2

3. Tradi7onally,
companies
never
place
anything
between
the
customer
and
the
transac7on.
Today,
consumers
transact
anywhere
they
have
Internet
access
Today,
consumers
expect
a
social
experience
when
shopping
3
3

4. Consumers
spend
more
:me
online
than
ever
before
In
the
past
two
years,
consumers
have
Consumer
retail
behavior
has
migrated
from
retail
loca:ons
to
online
changed. stores
Now
consumers
are
now
shi>ing
their
desktop
ac:vity
to
mobile
ac:vity
4
4

5. In
response
to
the
shi>
in
consumer
behavior,
retailers
have
to
use
technology
as
a
conduit
to
forge
more
meaningful
rela:onships
with
their
customers
and
service
them
at
mul:ple
touchpoints.
Today
we’ll
focus
on
five
key
Retailers
must
be
equipped
to
areas:
compete.
-­‐
Omni-­‐Channel
Marke:ng
-­‐
“Try-­‐Before-­‐You-­‐Buy”
Augmented
Reality
-­‐
Product+
-­‐
Crea:ve
Loyalty
Programs
-­‐
“Hyper-­‐Localized”
Shopping
5
5

6. Omni-­‐Channel
Marke7ng
Mobile,
Tablet
and
Pinterest
Commerce
6
6

7. Customers
benefit
from
interac:ng
with
brands
where
they
want,
when
they
want
in
a
distributed
non-­‐linear
customer
journey
The
walls
between
channels
are
fading. Customers
engage
in
10+
different
brand
touches
prior
to
purchase
(e.g.
mobile,
catalog,
in-­‐store,
iPad,
Pinterest,
e-­‐commerce,
direct,
email)
7
7

8. Mobile
gives
consumers
the
online
advantage
in
an
in-­‐store
environment
(e.g.
price
comparison)
Many
retailers
are
unfortunately
losing
customers
in
their
own
stores:
Mobile
in-­‐store
commerce
is
-­‐
73%
of
consumers
use
mobile
in-­‐store
+
53%
both
a
threat
and
an
of
those
consumers
stopped
an
in-­‐store
opportunity
for
retailers. purchase
as
a
result
of
using
their
mobile
phone*
Mass
adop:on
of
a
next-­‐genera:on
POS
program
appears
to
be
imminent,
awai:ng
results
from
pilot
programs
*
Interac<ve
Adver<sing
Bureau’s
Mobile
Phone
Shopping
Diaries,
May
2012
8
8

9. PayPal
powers
in-­‐store
mobile
•eBay’s
PayPal
has
signed
on
19
more
retailers
(e.g.
JCP,
Toys
“R”
Us,
Foot
Locker,
Nine
West)
who
will
purchases. start
to
accept
the
online
payment
system
in
U.S.
stores
•PayPal
will
allow
payments
through
mobile
phones
•Retailers
with
younger
target
consumers
will
benefit,
since
some
of
these
consumers
are
not
old
enough
to
qualify
for
credit
cards
9
9

10. Peapod
launched
the
U.S.’s
first
•The
virtual
grocery
store
has
emerged
in
Chicago
in
a
pilot
program
launched
by
Internet
grocer
Peapod
virtual
grocery
store.
•Peapod
wrapped
the
tunnel
walls
of
a
subway
sta<on
with
larger-­‐than-­‐life
grocery
shelves
with
popular
products
from
brands
like
Coca-­‐Cola,
P&G
and
Kimberly
Clark
-­‐-­‐
all
ac<vated
via
QR
codes
•During
a
previous
12-­‐week
pilot
program
in
15
commuter
rail
pla^orms
in
Philadelphia,
Peapod
found
that
90%
of
those
consumers
who
scan
returned
to
Peapod
to
shop
10
10

11. Tablets
drive
sales
comparable
to
those
made
in-­‐store*
-­‐
Tablet
AOV:
$159.28
(on-­‐par
with
in-­‐store)
Sales
data
from
tablet
-­‐
Smartphone
AOV:
$134.37
commerce
have
pushed
retailers
to
invest
in
tablet-­‐only
137
million
US
consumers
own
smartphones
shopping
applica7ons. that
collec:vely
accounted
for
just
1.5%
of
online
sales
last
year;
less
than
half
the
consumers,
61
million,
own
tablets
but
they
generated
more
than
twice
the
percentage
of
sales,
3.2%
*
Na<onal
Retail
Federa<on’s
Shop.org
&
Forrester
Research’s
2012
Mobile
Commerce
Survey
11
11

12. Shopmox
aims
to
bring
the
mall
•The
Shopmox
iPad
app
incorporates
26
stores
from
retailers
such
as
Anthropologie,
Gap,
Gap
Kids,
to
the
iPad
through
an
app
that
Banana
Republic,
Urban
Ou^icers
and
Old
Navy.
incorporates
26
retailer
stores. Features
include:
-­‐Follow
preferred
retailers
to
create
a
customized
bou<que
experience
-­‐No<fica<ons
when
a
“liked”
product
goes
on
sale
-­‐Product
recommenda<ons
+
curated
content
12
12

13. eBay
launched
a
new
version
of
•
Following
two
years
of
insight
into
consumer
tablet
shopping
habits,
eBay
re-­‐launched
a
new
version
of
its
iPad
app,
centered
around
a
their
free
iPad
applica<on
visual
window-­‐shopping
experience. •
The
release
follows
eBay’s
report
of
a
spike
in
mobile
ac<vity
on
eBay
between
2.5-­‐3X
the
normal
rate
at
which
consumer
conduct
transac<ons
on
their
mobile
devices
during
Cyber
Monday
2011*
•
The
app
focuses
on
a
window
shopping
experience
with
big
pictures,
flickable
photos,
quick
access
to
info,
and
purchase
via
PayPal
within
the
app
environment
*
WWD’s
“Mobile,
Tablets
Lead
Holiday
Charge”,
December
7,
2011
13
13

14. •
Pinterest
has
12MM+
users,
growing
146%
since
January
2012
Pinterest
is
now
the
third
most
•
Pinterest
pins
with
prices
receive
36%
more
likes
than
those
without*
popular
social
network
in
the
world,
based
on
referral
traffic
•
On
average,
orders
from
Pinterest
are
double
those
and
daily
ac7ve
users. from
Facebook
($80
AOV
vs.
$40
AOV)*
•
Pinterest’s
API
will
soon
be
made
available
for
developers
to
build
apps
using
Pinterest
data**
*
Shopify’s
Pinterest
ecommerce
study,
May
2012
**
Fast
Company,
“Pinterest
CEO
Ben
Silbermann
Talks
New
Profile,
New
Social
Tools,
Addresses
Controversy”,
March
13,
2012
14
14

15. Calypso
St.
Barth
engaged
a
•Fashion
blogger
Chris<ne
Mar<nez
(1MM
followers),
travelled
to
St.
Barth
to
“live
pin”
a
photo
shoot
for
fashion
blogger
to
“live
pin”
a
Calypso’s
2012
summer
look
book
photo
shoot
on
behalf
of
the
brand. •Calypso
saw
increased
traffic
and
revenue
referrals
from
Pinterest
in
the
six
months
leading
up
to
the
launch
of
the
lookbook
15
15

16. Women’s
Health
is
launching
a
•Women’s
Health
invites
readers
to
create
“Sparkling
Summer”
Pinterest
boards
incorpora<ng
images
from
first-­‐ever
adver7ser
campaign
the
adver<ser,
Forevermark
Diamonds
on
Pinterest.
•While
Pinterest
doesn’t
allow
first-­‐party
adver<sing
on
its
pla^orm,
third-­‐party
publishers
are
finding
crea<ve
ways
to
work
with
adver<sers
16
16

17. “Try-­‐Before-­‐You-­‐Buy”
Augmented
Reality
Test
Products
Before
Purchase
17
17

18. The
key
to
a
successful
AR
campaign
is
to
deliver
meaningful
content
for
the
customer*
Augmented
Reality
has
evolved
Current
AR
applica:ons
include:
beyond
stunt
marke7ng
to
a
-­‐
Size
figng
for
online
shoppers
valuable
mechanism
for
brand
-­‐
Displaying
product
details
alongside
products
to
consumer
communica7on. -­‐
Rendering
products
in
print
catalogs
in
3D
Global
revenues
for
AR
apps
are
expected
to
reach
$1.5
billion
by
2015**
*
Bazaarvoice
blog,
January
30,
2012
**
Juniper
Research’s
Mobile
Augmented
Reality
report,
January
2,
2011
18
18

19. Bloomingdale’s
launched
•Bloomingdale’s
transformed
six
window
displays
with
interac<ve
LCD
screens,
which
allowed
passersby
to
interac7ve
window
displays
to
virtually
“try
on”
sunglasses
allow
users
to
try
on
sunglasses
from
the
street. •Shoppers
could
turn
their
heads
to
view
the
arms
of
the
sunglasses
•Selected
favorites
were
virtually
submiced
to
the
Sunglass
Style
Bar
where
a
salesperson
could
close
the
purchase
loop
19
19

20. One
Nordic
allowed
consumers
•One
Nordic
created
an
applica<on
+
“tracking
marker”
(available
online,
catalogue
and
in-­‐store),
to
preview
furniture
op7ons
in
where
users
could
take
an
image
of
their
home
and
their
homes
through
an
AR
the
app
would
display
the
furniture
on
top
of
the
app. marker
•Users
benefit
from
being
able
to
see
the
items
in
real
size,
within
the
space
in
their
homes
•3D
modeling
enables
a
360-­‐degree
view
of
the
products
20
20

21. Product+
Extending
the
Brand
Experience
beyond
Purchase
21
21

22. Brands
have
created
digital
layers
of
content,
value
and
experience
onto
physical
products,
Brands
are
developing
rich
notably
in
the
CPG,
apparel
and
retail
sectors,
to
digital
experiences
onto
their
increase
and
customize
communica:on
with
products
to
con7nue
the
their
customers
engagement
with
purchasers.
Digital
experiences
can
entertain
and/or
provide
further
u:litarian
value
to
foster
brand
loyalty
22
22

23. Nike+
launched
an
applica7on
•As
part
of
Nike’s
global
“Make
It
Count”
campaign,
Nike
Mexico
launched
a
Nike+
auc<on
Facebook
app,
that
converted
sweat
into
where
users
could
bid
on
Nike
products
with
credits
currency. earned
as
a
result
of
their
Nike+
data
•Users
earned
more
credits
by
running
longer
distances
using
Nike+,
which
tracks
users’
runs
through
sports
watches,
iPods
and
smartphones
23
23

24. Johnson
&
Johnson
launched
•Johnson
&
Johnson
launched
an
augmented
reality
app
that
overlays
anima<ons
of
the
Muppet
an
app
that
projects
anima7ons
characters
onto
its
Band-­‐Aid
products
of
the
Muppets
onto
Band-­‐
Aids. •The
app
is
only
ac<vated
once
the
camera
detects
the
Muppet-­‐branded
app,
tying
product
purchase
into
this
digital
delight
24
24

25. Crea7ve
Loyalty
Programs
Reward
Advocates
through
Social
Media
25
25

26. Forrester
cites
loyalty
programs
as
one
of
the
reasons
online
spending
will
reach
$327
billion
in
2016,
up
45%
from
$226
billion
in
2012*
Retailers
are
experimen7ng
-­‐
12%
of
online
shoppers
belonged
to
loyalty
with
loyalty
programs
that
programs,
such
as
Amazon
Prime
in
2011,
up
reward
consumers
in
9%
from
2010
unconven7onal
ways.
61%
of
consumers
enrolled
in
loyalty
programs
consistently
patron
the
retailer
*
Forrester
Research’s
“U.S.
Online
Retail
Forecast,
2011
to
2016”
report,
February
27,
2012
26
26

27. Plink
reported
increased
AOVs
•
Plink
reported
that
consumers
using
the
pla^orm
are
spending
65%
more
than
before
at
par<cipa<ng
&
in-­‐store
visits
at
par7cipa7ng
brands
while
visi<ng
twice
a
month
instead
of
once
brands.
•
Par<cipa<ng
brands
include
Taco
Bell,
Burger
King,
7-­‐Eleven,
Dunkin’
Donuts,
Regal
Cinemas,
Arby’s,
Quiznos,
Red
Robin
and
Outback
Steakhouse
•
Arer
an
ini<al
online
registra<on
process
with
their
credit
or
debit
cards,
users
receive
Facebook
Credits
following
qualifying
retail
purchases
•
Facebook
Credits
can
be
used
to
purchase
virtual
goods
in
Facebook
games
27
27

28. Target
is
now
Shopkick’s
largest
•Target
has
rolled
out
its
Shopkick
partnership
to
all
of
its
1,764
loca<ons
in
the
U.S.
retailer
partner,
rewarding
in-­‐
store
consumers
with
a
variety
•Customers
earn
“kicks”
by
entering
stores
and
of
prizes. scanning
products
(e.g.
electronics,
toys)
•Kicks
can
be
redeemed
for
Target
gir
cards,
Facebook
credits
+
dining
gir
cer<ficates
28
28

29. Zynga
teamed
up
with
•The
reward
program
links
offline
spending
on
American
Express’s
Serve
pre-­‐paid
cards
to
in-­‐game
American
Express
to
provide
rewards
in
Zynga’s
Farmville
virtual
rewards
for
purchases.
•Purchases
of
specific
offers
will
unlock
more
virtual
currency
in
Zynga
games
29
29

30. “Hyper-­‐Localized”
Shopping
Personalized
Content
for
Local
Consumers
30
30

31. Consumers
benefit
from
a
more
tailored
shopping
experience
that
highlights
geographically-­‐relevant
data,
including
local
Retailers
are
delivering
targeted
store
deals
and
product
availability
informa7on
to
consumers,
based
on
geographic
loca7on. Retailers
benefit
from
localized
metrics
and
learnings,
which
can
be
leveraged
for
further
personaliza:on
31
31

32. Sears
launched
•Sears
is
tes<ng
local,
personalized
e-­‐commerce
in
key
markets
through
the
launch
of
an
online
shopping
SearsLocalAd.com,
providing
portal,
allowing
customers
to
preview
local
deals
customers
with
access
to
local
beyond
those
found
in
the
print
circulars
and
on
deals. Sears.com
•Shoppers
can
search
their
nearest
Sears
store
and
browse
deals
by
department,
brand
or
price
•Shoppers
can
access
stores’
real<me
inventory
to
check
product
availability
32
32

33. American
Express
launched
•American
Express
pushes
daily
deals
offers
through
its
exis<ng
iPhone
app
to
consumers
based
on
their
“My
Offers,”
which
delivers
purchase
history
and
loca<on,
differen<a<ng
itself
local
recommended
offers
to
from
exis<ng
deal
providers
like
Groupon
and
consumers’
mobile
devices. LivingSocial
•Offers
are
ranked
by
relevancy
(as
determined
by
purchase
history
&
loca<on)
•The
program,
which
incorporates
offers
with
large
merchants
like
Dunkin’
Donuts
and
Baskin-­‐Robbins,
and
small
businesses,
launched
first
in
New
York
and
Los
Angeles
33
33

34. Impact
Leveraging
2012
Q2
Retail
Innova<ons
34
34

35. Brands
have
successfully
deployed
tac:cs
in
a
few
select
markets
and
started
na:onwide
implementa:on,
strengthening
confidence
for
Retail
innova7ons
experiments
marketers
are
flooding
the
global
market,
providing
a
wealth
of
learnings. For
brands
without
brick-­‐and-­‐mortars,
there
lie
many
opportuni:es
to
partner
with
retailers
who
are
pursuing
these
tac:cs
35
35

36. Appendix
Addi<onal
Case
Studies
36
36

37. Tesco
employed
virtual
window
Tesco
displayed
clothing
from
its
exclusive
F&F
collec<on
through
specially-­‐decorated
windows
of
its
shopping
to
maximize
the
smaller
London
shops,
where
inventory
and
space
are
experience
in
its
smaller
retail
challenged
loca7ons.
Users
point
their
mobile
devices
at
the
store
windows
and
view
a
virtual
showcase
of
the
F&F
range
on
the
catwalk
Users
purchase
items
on
display
via
their
smartphone
37
37

38. Retailers
are
taking
a
page
from
Gucci
sales
associates
at
select
U.S.,
Europe
and
Asia
loca<ons
are
equipped
with
iPhones
so
employees
can
Apple
stores’
POS
process
and
process
sales
from
anywhere
in
the
store
implemen7ng
mobile
payments
from
anywhere
in
the
store. Home
Depot’s
“First
Phone”
devices
were
rolled
out
in
2011
to
nearly
2,000
of
its
stores.
While
the
implementa<on
was
cri<cized
by
much
of
the
staff,
Home
Depot
intended
the
devices
to
provide
real-­‐<me
data
on
sales,
gross
margin
and
inventory,
and
also
to
serve
as
a
mobile
POS,
allowing
purchases
away
from
the
checkout
registers
38
38

39. Hellman’s
delivered
custom
Hellman’s
installed
sorware
in
cash
registers
at
100
Brazilian
supermarkets
that
recognized
Hellman’s
recipes
to
customers
on
their
scanned
products
supermarket
receipts.
The
sorware
matched
the
scanned
items
against
a
database
of
recipe
and
delivered
a
custom
recipe
and
cooking
direc<ons
on
the
receipt
39
39