This document discusses the digital transformation of alcohol retail. It begins with an introduction of the presenter, Brad Davis, and his background. The presentation then covers: why digital is important for retailers today due to factors like the Amazon effect; how understanding customers is key through analytics; the power of personalizing the customer experience; and providing convenience through fulfillment options like buy online pickup in store. The digital strategy discussed incorporates analytics, personalized communications, omni-channel experiences, and incorporating stores into order fulfillment.
2. ‣ Director of Marketing for 3x3 Insights
‣ 11 Years in Digital Marketing & Strategy
‣ Built over 60 websites
‣ Heineken USA, Budweiser, Bud Light & PepsiCo
‣ Build Trade Programs Alcohol Retailers
‣ Native in South Florida
‣ Golfer
‣ Whiskey Connoisseur
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About Brad:
3. ‣ Where We are Today
‣ Why it’s Important to Alcohol Retail
‣ Three Ways to Transform Digital Retail Strategy
‣ What should my digital strategy look like?
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What You’ll See Today:
7. Amazon Effect:
The Amazon effect is the ongoing evolution &
disruption of the retail market, both online and in
physical outlets, resulting from increased e-commerce.
‣ Brick and Mortar
‣ Membership/Loyalty
‣ Convenience
‣ Personalization
‣ Digitized Retail (Amazon Go)
‣ Distribution
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The Answer: YES
Last year, 90% of retail growth in Fast Moving
Consumer Goods (FMCG) came from digital, with
eCommerce driving growth across product categories.
Source: Nielsen 2017 Consumer Report
‣ On-demand alcohol delivery services reached $103M in 2017
‣ Online grocery orders reached $87M
‣ Direct-to-consumer online sales reached $410M
‣ Online speciality retailers reached $975M
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Estimated that alcohol sold online
will be worth
$7-$15 Billion
annually over the next few years.
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How can retailers start using
digital to compete in today’s
alcohol marketplace?
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Three Ways to Transform
Digital Retail Strategy
3. Convenience + Fulfillment2. Personalized Engagement1. Understand the Customer
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1. Understand the Customer
When so much of retail is about experience,
alcohol retailers need to make sure they
understand their customers to deliver value
across the consumer journey.
17. Understanding the Consumer Journey
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Before leaving work, she
looks at recipes online.
Clicking through, she
browses options
Jessie uses the map
functionality on the website
to find the nearest retailer
and places the order.
Leaving work, she heads to the
liquor store where she shows her
app to the sales person, who has
her bottle of wine ready.
While enjoying dinner,
Jessie snaps an Instagram-
worthy picture of her meal
and wine glass
She gets a “Did you love it?”
email, inviting her to review the
wine on the retailer’s platform
Meet Jessie, 26 year old
marketing professional
who works in Denver
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What touch points are
consumers using:
‣ Website
‣ Search
‣ Social Media
‣ Email Marketing
‣ Experiences
‣ Mobile
‣ Voice Assistants
Consumers are leaving their digital footprint across multiple
touch points, including the products thew view on your site.
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“If you can't measure it,
you can’t manage it.”
-Peter Drucker
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Using Analytics to
Drive Action
‣ Track your customers movement across all channels
‣ Understand customer purchase behavior
‣ Purchase History
‣ Basket Trends
‣ Price Sensitivity
‣ Promotional Impact
‣ Time of Day
‣ Leverage insights about your customers to make
business decisions for your business: store layout,
product optimization, inventory, and promotions.
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2. Personalize the Experience
How do you get the right product in front of
the right consumer and create an on-brand
experience that leads to sales, whether online
or across channels?
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The Power of
Personalization
When it comes to attracting and retaining customers,
retailers can’t treat everyone the same anymore.
‣ 74% of online consumers get frustrated when content isn’t relevant to them
‣ 67% of consumers have unsubscribed from an email list when sent irrelevant
information
‣ 43% ignored further communications
‣ 32% stopped visiting the company’s website or mobile app altogether
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Types of Personalization
Personalization can be implemented in a variety of ways:
‣ With the help of user ID tracking and loyalty programs, retailers can
retarget your customers to the brands you want them buying
‣ Customize emails that feature the customer’s name and product
preferences (26% higher unique open rates)
‣ Generate individualized landing pages that feature customer-specific
products and deals
‣ Let them know about promotions that are relevant to them
‣ Keep your customers updated with the latest product info and
curated content
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Individualized marketing automation
and customer engagement based on
what your customers are actually
buying.
‣ Customers enroll at checkout by typing in
their phone number
Enter Point
Personalized
Offers
Personalized Marketing Automation
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3. Convenience + Fulfillment
For the first time, in 2016, consumers in the U.S.
spent more food dollars on restaurant-prepared
meals than on meals prepared at home.
The very nature of eating out is moving inside.
26. Digital Delivery has Changed
Consumer Demands
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Convenience will influence your consumers purchasing behavior.
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Bridging the
Convenience Gap
One possible response for anticipating this
usage of digital platforms and third-party apps is
the implementation of a buy-online, pick-up in
store function.
‣ Consumers will soon be expecting instant order
fulfillment, especially if they are purchasing for the
evening’s meal or special occasion.
‣
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Inventory + Fulfillment
Customers experience disappointment with a brand or
service when inventory is not in stock or delivery
doesn’t arrive quickly. They are also less likely to
purchase when shipping is not free or is perceived to be
too slow or expensive.
‣ Live inventory
‣ Delivery tracking/Pickup locations
‣ Incorporated shipping cost
These can give your customers the transparency and experience
they desire.
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Mobile + Voice: Google,
We Have a Problem
Mobile
‣ In recent years, mobile search has overtaken searches done on
desktops. Retailers are leveraging both websites optimized for
mobile and mobile apps to reach their customers
Voice
‣ In 2018, we expect consumers to interact with conversational AI
like never before. Alcohol brands like Johnnie Walker have
invested in the creation of Alexa Skills - ways to interact with
their customers through the Amazon Echo Voice interactions are
a new and important place for building out that digital shelf
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Your digital strategy
should:
‣ Take into account the basics of analytics: consumer behavior, basket
analysis, product trends, promotional impact and price sensitivity
‣ Provide personalized communications and engagement across
platforms that will make life easier for the consumer. Relevance is key.
‣ True omni-channel capability, including consistent product information
tailored to each platform and device, with optimized experiences for
each device or interaction.
‣ Incorporate your brick-and-mortar stores into your order management
and order fulfillment strategy - with "click and collect",