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@BRIANSOLIS
11 Trends in the Future of Retail According to Brian Solis
EXPERIENCE ARCHITECTURE
WHAT DOES THE FUTURE OF ETAIL/RETAIL LOOK LIKE?
Gift of Perspective:
Consumer behavior and expectations
break legacy processes and systems.
Customer experience takes architecture
and fresh perspective to design the future
and everything starts with #empathy
…or what this thing is.
The State of Retail and
Commerce in 1 Picture
Digital transformation
represents the quest
to understand how
disruptive technology
affects the digital
customer experience.
You are now trying to capture the attention of an audience
with an audience of audiences.
MEET GENERATION-C
11 Trends in the Future of Retail According to Brian Solis
WHAT
WOULD THE
WORLD
LOOK
LIKE
IF I
COULD START
FROM SCRATCH?
11 Trends in the Future of Retail According to Brian Solis
Connected customers see
the world differently. They’re
“always on.”
THINK.LIKE.THE.
CUSTOMER
New Supply
New Demand
New Behavior
TRUST
REPUTATIO
N
CURATION
Master Total Re-CXing
People look at their phones 1,500x each week.
They spend 177 minutes on their phone per day.
Facebook, Instagram, et al. is second nature.
SnapChat is a marketplace for human emoticons.
Youtube is the new Google.
11 Trends in the Future of Retail According to Brian Solis
On-Demand Economy:
Retail and e-tail will plug into the
on-demand economy.
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
Customer Experience:
Retailers will need to compete
through customer experience in
addition to technology.
CX = Customer experience
is the sum of all
engagements a customer
has with you during the
customer lifecycle.
Forrester
82% of shoppers will complete their online
purchase with e-tailers that offer free return
shipping or in-store returns.
Customers who could ship items back for free
boosted their purchases at that store by 58%-to-
357%.
Customers who were charged for return
shipping dropped their purchase activity by
74%-to-100%.
Only 49 of the merchants in its Top 500 Guide
offered free return shipping as of last January
11 Trends in the Future of Retail According to Brian Solis
Customer Loyalty is Getting a Makeover
Loyalty cards are on their way out and will be
replaced by targeted, data-driven, personalized
rewards derived through:
 Transactional data
 Demographic data
 Social data
 CRM data
 Existing loyalty data
 Proprietary data
 Sensor data
 Supply chain data
 Location data
60% of consumers use their smartphones to
pay because of the loyalty benefits that they
get when they do.
Payments:
Payment options lead to retailer
confusion but open door to new
forms of insight and engagement.
MOBILE PAYMENTS EARLY TODAY, BUT EXPECTED TO SKYROCKET
Nearly 15% of Starbucks customers
already pay with their phones
11 Trends in the Future of Retail According to Brian Solis
Wearables help bring multiple
features to mobile payment,
make payment process even
more seamless
New Payment Companies Bring eCommerce to a
New Generation of Disruptors
Re-Engineering Payments, Checkouts and CRM
11 Trends in the Future of Retail According to Brian Solis
Social Commerce:
Social networks become the new e-
commerce platform.
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
Merchants will continue to chase mobile customers with ads
as well as sites optimized for those mobile viewers
The Trust Economy:
The trust economy encourages peer-to-
peer influence (social proof), forces
transparency and pushes retailers to
market utility and usefulness to guide
decision making (reciprocity).
eCommerce further fueled by the
trust economy.
Airbnb travelers contributed 14
million new reviews over a 12
month period, a year over year
rise of 140%.
90%of smartphone users are not
absolutely certain of the specific
brand they want to buy when they
begin looking for information online.
65%of smartphone users look for the most relevant information
regardless of the company providing the information.
Combine Content + Commerce
Birchbox creates high-
quality content to generate
repeat business.
Its blog is packed with “how-
to” guides and style tips that
rival Cosmo and GQ.
You can buy any of the
items featured.
Double Down on Video
According to Cisco, by 2017, video will
account for 69% of all consumer
internet traffic.
As shoppers grow more responsive
to visual presentation and seek
responsive layouts, video will become
a front-and-center asset to convey
product details -- not just demos -- and
facilitate improved webrooming.
Within one week of launching, Viking received
nearly 1,000 high-resolution photos and videos
from guests showcasing their travel
experiences. Content covered 100%of Viking’s
itineraries; 98% was linkable to the itinerary
page for a specific cruise, with an average of
over 40 photos and/or videos per itinerary.
The future of the receipt…a new publishing
and engagement medium?
E-tailers and retailers are now able to
tailor the receipt to enhance the
customer experience post transaction.
Companies can also feed insights and
analyticss to empower affiliate
networks.
Webrooming and Showrooming:
Retailers invest in technology and
experiences to promote webrooming and
showrooming to their advantage.
• Webrooming more common than showrooming (69% to 46%
respectively), according to Harris poll
• Millennials prefer webrooming
• Amazon remains #1 for both showrooming and webrooming
11 Trends in the Future of Retail According to Brian Solis
Reverse Engineering etail and Webrooming/Showrooming to Improve
Retail Experiences
Reasons for Webrooming vs. Showrooming:
47% don't want to pay for shipping
23% didn't want to wait for the product to delivered
46% like to go to a store to touch and feel a product before they buy
36% will ask the store to price match a better price found online
37% like the option of being able to return the item to the store if needed
Source: Merchant Warehouse 2014
The Future of Retail:
3d printing, IoT, virtual displays and
personalization technology creates
dymamic shelves and racks unique to
each user and redesigns inventory and
supply chain in the process.
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
Big Data & Beacons: Connecting online, in-app,
and in-store experiences
• Footfall, visits online, visits through apps
• Regency and frequency of visits, behaviors and transactions
• Brand affinities
• Favorite products
• Demographics
• Location
• Loyalty program utilization
• Service quality, queue and abandonment
• Capacity planning and resource utilization
Beacons provide businesses with endless opportunities to collect massive amounts of
untapped data, such as the number of beacon hits and customer dwell time at a particular
location within a specified time and date range, busiest hours throughout the day or week,
number of people who walk by a location each day, etc. This data then allows retailers to
accordingly make improvements to products, staff allocation in various departments and
services, and so on.
At the end of my session, the mirror gave me the
option to check out right from my stall."
The smart room recognized the shirt, recommend
clothes to pair with it, and sent instructions to a
sales clerk — if I needed another size or color, for
example.
11 Trends in the Future of Retail According to Brian Solis
The Shopper Journey:
Online apps and experiences
influence decision-making and
journeys. Retailers will eliminate
friction and re-design the
online/offline journey.
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
Customers consult 11 information sources on
average before making a purchase.
Is it true mobile search has overtaken desktop search?
66% of all time spent on
ecommerce sites is done
on mobile.
91% of ecommerce sites
that are not responsive.
61% of customers leave a
site if it isn’t mobile-friendly
Smartphone users will immediately switch to
another site or app if it doesn’t satisfy their
needs (your site is too slow).
Micro-moments unfold through a
variety of common “I want”
scenarios that help people take
steps or make decisions
I want to learn…
I want to buy…
I want to know…
I want to go…
I want to do…
Customer
expectations are
influenced by
experiences
engaging with
other industries.
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
Businesses that focus on
micro-moments, human-
centered behaviors and
expectations and related
tech, will naturally re-
imagine the customer
journey, upgrade their
experience and modernize
the brand for the digital
economy.
Social Objects
1. Data
2. Personalization
3. Engag`ement
4. Relationship
Identify Driven Marketing Starts Here
Innovation begins with us
Innovation Centers:
Retailers get into the innovation
game to test new tech and better
understand digital customers.
“IT and digital is pervasive in
people’s lives now. So the advice I
would give somebody starting it now
is, think of yourself like a consumer
technology company.”
- Starbucks
11 Trends in the Future of Retail According to Brian Solis
Innovation Takes Many Shapes
“A lot of work Labs is doing is
focused on understanding the
shopper, the actual consumer,
relationship with the brand. It's
about how we facilitate the ability
for any kind of engagement,
anywhere, anytime, any way.
‘Shop my way.’
- Andy Hedges, Director of Shopping Centre Management
and Marketing, Westfield
“When we think about ourselves, we think about constantly
innovating and staying ahead of the curve,” says Bridget Dolan, vice
president, Sephora Innovation Lab.
“The mission is to make sure we are listening to our clients’ needs,
our internal employees and the ideas they have, and keeping a finger
on the pulse of trends, all the while competing with ourselves to
make sure we’re always innovating.”
11 Trends in the Future of Retail According to Brian Solis
Space 2.0:
Retail space is a blank canvas
for re-imaging the shopper
experience.
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
11 Trends in the Future of Retail According to Brian Solis
“Telstra will remain relevant forever,” said David Thodey,
CEO of Telstra as it shifted its focus toward digital growth.
Speaking at the Australian Digital Summit, he pointed to
Sony as a company that had not moved with the times. “You
need to be bold, and you need people who are going to test
you and drive you forward,” he said.
11 Trends in the Future of Retail According to Brian Solis
Designed to blur the lines between digital and physical worlds and to
provide customers with a personalized experience.
The price tags in the store have been printed from digital ink,
meaning prices can be adjusted centrally and instantly.
“We've got to make that seamless experience. It doesn't matter
where you touch us – anywhere in Australia, online, any retail
presence, or when you call us.”
Vision +
Empowerment
New Models, Processes, Systems
to Support a Unified Digital
Customer Experience
Understand the New
Customer
Design the Digital
Customer Experience
Behind every screen,
every expression and
impression, is a human
being…not a consumer.
Txt “Experience” to 33444
For This Presentation
bsolis@prophet.com | Altimeter Group, a Prophet Co.
briansolis.com | @briansolis
Linkedin.com/influencer/briansolis
Facebook.com/thebriansolis

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11 Trends in the Future of Retail According to Brian Solis

  • 3. EXPERIENCE ARCHITECTURE WHAT DOES THE FUTURE OF ETAIL/RETAIL LOOK LIKE?
  • 4. Gift of Perspective: Consumer behavior and expectations break legacy processes and systems. Customer experience takes architecture and fresh perspective to design the future and everything starts with #empathy
  • 5. …or what this thing is.
  • 6. The State of Retail and Commerce in 1 Picture
  • 7. Digital transformation represents the quest to understand how disruptive technology affects the digital customer experience.
  • 8. You are now trying to capture the attention of an audience with an audience of audiences. MEET GENERATION-C
  • 12. Connected customers see the world differently. They’re “always on.” THINK.LIKE.THE. CUSTOMER
  • 13. New Supply New Demand New Behavior TRUST REPUTATIO N CURATION
  • 14. Master Total Re-CXing People look at their phones 1,500x each week. They spend 177 minutes on their phone per day. Facebook, Instagram, et al. is second nature. SnapChat is a marketplace for human emoticons. Youtube is the new Google.
  • 16. On-Demand Economy: Retail and e-tail will plug into the on-demand economy.
  • 21. Customer Experience: Retailers will need to compete through customer experience in addition to technology.
  • 22. CX = Customer experience is the sum of all engagements a customer has with you during the customer lifecycle.
  • 24. 82% of shoppers will complete their online purchase with e-tailers that offer free return shipping or in-store returns. Customers who could ship items back for free boosted their purchases at that store by 58%-to- 357%. Customers who were charged for return shipping dropped their purchase activity by 74%-to-100%. Only 49 of the merchants in its Top 500 Guide offered free return shipping as of last January
  • 26. Customer Loyalty is Getting a Makeover Loyalty cards are on their way out and will be replaced by targeted, data-driven, personalized rewards derived through:  Transactional data  Demographic data  Social data  CRM data  Existing loyalty data  Proprietary data  Sensor data  Supply chain data  Location data
  • 27. 60% of consumers use their smartphones to pay because of the loyalty benefits that they get when they do.
  • 28. Payments: Payment options lead to retailer confusion but open door to new forms of insight and engagement.
  • 29. MOBILE PAYMENTS EARLY TODAY, BUT EXPECTED TO SKYROCKET
  • 30. Nearly 15% of Starbucks customers already pay with their phones
  • 32. Wearables help bring multiple features to mobile payment, make payment process even more seamless
  • 33. New Payment Companies Bring eCommerce to a New Generation of Disruptors
  • 36. Social Commerce: Social networks become the new e- commerce platform.
  • 39. Merchants will continue to chase mobile customers with ads as well as sites optimized for those mobile viewers
  • 40. The Trust Economy: The trust economy encourages peer-to- peer influence (social proof), forces transparency and pushes retailers to market utility and usefulness to guide decision making (reciprocity).
  • 41. eCommerce further fueled by the trust economy. Airbnb travelers contributed 14 million new reviews over a 12 month period, a year over year rise of 140%.
  • 42. 90%of smartphone users are not absolutely certain of the specific brand they want to buy when they begin looking for information online.
  • 43. 65%of smartphone users look for the most relevant information regardless of the company providing the information.
  • 44. Combine Content + Commerce Birchbox creates high- quality content to generate repeat business. Its blog is packed with “how- to” guides and style tips that rival Cosmo and GQ. You can buy any of the items featured.
  • 45. Double Down on Video According to Cisco, by 2017, video will account for 69% of all consumer internet traffic. As shoppers grow more responsive to visual presentation and seek responsive layouts, video will become a front-and-center asset to convey product details -- not just demos -- and facilitate improved webrooming.
  • 46. Within one week of launching, Viking received nearly 1,000 high-resolution photos and videos from guests showcasing their travel experiences. Content covered 100%of Viking’s itineraries; 98% was linkable to the itinerary page for a specific cruise, with an average of over 40 photos and/or videos per itinerary.
  • 47. The future of the receipt…a new publishing and engagement medium? E-tailers and retailers are now able to tailor the receipt to enhance the customer experience post transaction. Companies can also feed insights and analyticss to empower affiliate networks.
  • 48. Webrooming and Showrooming: Retailers invest in technology and experiences to promote webrooming and showrooming to their advantage.
  • 49. • Webrooming more common than showrooming (69% to 46% respectively), according to Harris poll • Millennials prefer webrooming • Amazon remains #1 for both showrooming and webrooming
  • 51. Reverse Engineering etail and Webrooming/Showrooming to Improve Retail Experiences
  • 52. Reasons for Webrooming vs. Showrooming: 47% don't want to pay for shipping 23% didn't want to wait for the product to delivered 46% like to go to a store to touch and feel a product before they buy 36% will ask the store to price match a better price found online 37% like the option of being able to return the item to the store if needed Source: Merchant Warehouse 2014
  • 53. The Future of Retail: 3d printing, IoT, virtual displays and personalization technology creates dymamic shelves and racks unique to each user and redesigns inventory and supply chain in the process.
  • 57. Big Data & Beacons: Connecting online, in-app, and in-store experiences • Footfall, visits online, visits through apps • Regency and frequency of visits, behaviors and transactions • Brand affinities • Favorite products • Demographics • Location • Loyalty program utilization • Service quality, queue and abandonment • Capacity planning and resource utilization Beacons provide businesses with endless opportunities to collect massive amounts of untapped data, such as the number of beacon hits and customer dwell time at a particular location within a specified time and date range, busiest hours throughout the day or week, number of people who walk by a location each day, etc. This data then allows retailers to accordingly make improvements to products, staff allocation in various departments and services, and so on.
  • 58. At the end of my session, the mirror gave me the option to check out right from my stall." The smart room recognized the shirt, recommend clothes to pair with it, and sent instructions to a sales clerk — if I needed another size or color, for example.
  • 60. The Shopper Journey: Online apps and experiences influence decision-making and journeys. Retailers will eliminate friction and re-design the online/offline journey.
  • 65. Customers consult 11 information sources on average before making a purchase.
  • 66. Is it true mobile search has overtaken desktop search?
  • 67. 66% of all time spent on ecommerce sites is done on mobile. 91% of ecommerce sites that are not responsive. 61% of customers leave a site if it isn’t mobile-friendly
  • 68. Smartphone users will immediately switch to another site or app if it doesn’t satisfy their needs (your site is too slow).
  • 69. Micro-moments unfold through a variety of common “I want” scenarios that help people take steps or make decisions I want to learn… I want to buy… I want to know… I want to go… I want to do…
  • 73. Businesses that focus on micro-moments, human- centered behaviors and expectations and related tech, will naturally re- imagine the customer journey, upgrade their experience and modernize the brand for the digital economy.
  • 74. Social Objects 1. Data 2. Personalization 3. Engag`ement 4. Relationship Identify Driven Marketing Starts Here
  • 76. Innovation Centers: Retailers get into the innovation game to test new tech and better understand digital customers.
  • 77. “IT and digital is pervasive in people’s lives now. So the advice I would give somebody starting it now is, think of yourself like a consumer technology company.” - Starbucks
  • 80. “A lot of work Labs is doing is focused on understanding the shopper, the actual consumer, relationship with the brand. It's about how we facilitate the ability for any kind of engagement, anywhere, anytime, any way. ‘Shop my way.’ - Andy Hedges, Director of Shopping Centre Management and Marketing, Westfield
  • 81. “When we think about ourselves, we think about constantly innovating and staying ahead of the curve,” says Bridget Dolan, vice president, Sephora Innovation Lab. “The mission is to make sure we are listening to our clients’ needs, our internal employees and the ideas they have, and keeping a finger on the pulse of trends, all the while competing with ourselves to make sure we’re always innovating.”
  • 83. Space 2.0: Retail space is a blank canvas for re-imaging the shopper experience.
  • 91. “Telstra will remain relevant forever,” said David Thodey, CEO of Telstra as it shifted its focus toward digital growth. Speaking at the Australian Digital Summit, he pointed to Sony as a company that had not moved with the times. “You need to be bold, and you need people who are going to test you and drive you forward,” he said.
  • 93. Designed to blur the lines between digital and physical worlds and to provide customers with a personalized experience. The price tags in the store have been printed from digital ink, meaning prices can be adjusted centrally and instantly. “We've got to make that seamless experience. It doesn't matter where you touch us – anywhere in Australia, online, any retail presence, or when you call us.”
  • 94. Vision + Empowerment New Models, Processes, Systems to Support a Unified Digital Customer Experience Understand the New Customer Design the Digital Customer Experience
  • 95. Behind every screen, every expression and impression, is a human being…not a consumer.
  • 96. Txt “Experience” to 33444 For This Presentation bsolis@prophet.com | Altimeter Group, a Prophet Co. briansolis.com | @briansolis Linkedin.com/influencer/briansolis Facebook.com/thebriansolis

Notas del editor

  1. https://www.umbel.com/blog/retail/13-retail-companies-already-using-data-revolutionize-shopping-experiences/
  2. SOURCE: http://www.dailymail.co.uk/travel/travel_news/article-2753317/Apple-Watch-s-Starwood-app-allows-guests-open-hotel-room-doors-tap-button.html When the watch hits stores in 2015, the Starwood Hotels app will allow guests to unlock their hotel room doors without having to fumble with a key or dig through a bag to find a key card. With the Apple Watch acting as a digital room key, guests who have a compatible iPhone will simply have to tap a button while standing at the door. The app was featured during Apple’s unveiling earlier this week and it will be used at some of Starwood Hotels and Resorts Worldwide’s properties, which include the Westin, Sheraton, W and Aloft brands, starting next spring.
  3. http://diginomica.com/2015/08/14/omni-channel-is-about-customers-not-channels-at-nordstrom/#.VjZ5JKLTGLE
  4. This can prove to be difficult because one of the first questions any executive asks is, “Can you show me other companies that are doing this and what ROI they are seeing?” Making the case can become a classic “chicken and egg” scenario where the need to change and the ability to show that others are successful may not coexist.