How New In-Store Digital Tools Can Drive Value for Shoppers and Retailers

1. Consumer Products and Retail the way we see it
All-Channel Experience:
Engaging with Technology-
Enabled Shoppers In-Store
How New In-Store Digital Tools Can Drive Value for
Shoppers and Retailers

2. Case Study: Albert Heijn Uses People today seamlessly integrate the across all channels and touchpoints,
Dynamic Pricing and Digital Signage use of all types of technologies in their including physical stores.1 Stores need
to Reduce Waste on Fresh Produce lives, including the way they shop – at to offer experiences consumers can’t
any time, at any location. As a result, have in the digital space, by becoming
Netherlands-based grocery retailer
they are more informed and selective destinations of choice. They need to
Albert Heijn wanted to test advanced
about the products and services blur the boundaries between digital
technology solutions for intelligent waste
they want and use, and are more and physical. And retailers need to
management at store level in order to
empowered towards the industries re-examine their strategy to provide a
reduce waste in its produce departments.
that serve them. seamless experience across the entire
The retailer initiated a pilot together
customer buying journey.
with Capgemini, Toshiba TEC and other
In this environment, the growth
partners.
of mobile features and device The ability to provide a superior
The intelligent waste management convergence such as smartphones are in-store shopping experience is
solution is based on adjusting the driving mobile commerce. At the same critical for retailers to drive value
messaging on electronic signs to reflect time, store visits are being enhanced for consumers. According to a
changes in pricing, product information, by dynamic digital displays and survey by RSR, 88% of retailers with
promotions and plan-o-grams. The personalization through hand-held annual revenue over $1 billion cite
system compares predicted and actual devices or the shopper’s own phone. “improving the customer experience”
sales rates and analyzes expected These changes provide retailers with as one of their top three uses of
deliveries and current stock levels to the opportunity to drive greater value in-store technology.2 Retailers can
determine what predefined measures by making the switch from “talking to” target several levers to help create an
must be executed to avoid overstock or towards “engaging with” consumers experience-led in-store environment:
imminent out-of-stock situations. The and shoppers.
solution consists of centrally controlled • Easy access to information
wireless digital displays and shop floor Creating an Experience-Led through smartphone apps, surface
hand-held scanners (to be used by In-Store Environment computing devices, self-service
mandated personnel with the knowledge A growing number of digital channels, kiosks, digital signage and public
and experience to make decisions from apps to kiosks to the web, are social networks.
regarding freshness and promotions to replacing elements of the shopping • Faster response to shopper
increase sales). experience that would previously queries with hand-held/multi-touch
have occurred in a physical space, devices, augmented reality and
The solution has resulted in numerous
calling for the store environment to online product recommendation
benefits, including:
evolve. This shift requires retailers to engines.
• Lower costs and increased sales due think differently about the shopper • Ability to locate products quickly,
to reduced waste experience and service model enabled by digital and e-paper
• Improved corporate social responsibility signage and smartphone apps.
by addressing the food waste issue
• Reduced labor and print costs and • Quick and easy checkout through
the elimination of price discrepancies the use of self-checkout kiosks,
between shelf labels and POS systems personal shopping scanners/mobile
POS, mobile phone payments and
contactless payments.
Digital Tools Drive Value for
Shoppers and Retailers
Powerful digital tools can be used
in a wide range of applications in
a retail environment to provide a
more seamless experience (Figure 1).
Following is a closer look at some of
these applications.
1
“How Digital is Transforming Physical Experiences,” http://blogs.uk.capgemini.com/ceblog/page/6/, Customer Experience Blog, Capgemini, Dec. 2, 2010
2
“The 21st Century Store: The Search for Relevance,” RSR, June 2011
2

3. Consumer Products and Retail the way we see it
Figure 1: Digital Tools for Each Step of a Shopper’s in-Store Journey
1 Customer is tracked real time from the moment
2 1 he or she steps inside the store
Customer receives information on store layout,
2
6 product placement
3 Receives personalized offers and information
3
from retailer
Can search for information on specific
4
products of interest
Is greeted by sales associate who is aided by
7 5
digital tools
4
Gets information on product’s price, its
6
nutrition facts, in-store stock levels, etc.
8 9 Customer compares price in other stores, also
7
checks customer reviews
Customer self-scans the products in his or her
5 8
10 shopping basket
9 Pays by mobile or through Near-Field
Communication (NFC) card
10 Receives e-mail or SMS receipts and vouchers
Source: Capgemini
Smartphones allow retailers to mobile applications such as “geo- Retailers can also improve their
interact with customers at every fencing” or location-based services understanding of the shopper buying
step of their shopping journey. retailers can identify customers in the journey by tracking smartphone usage
The significant rise in the smartphone vicinity of a store. They can then use in store, which can be a key input
user base globally is leading retailers this technology to entice customers for improved store design and layout.
to leverage this technology to into the store by sending out messages And location-based capabilities make
enhance interaction with shoppers. on products, promotions and exclusive it easier for retailers to reach the
And for good reason. According deals to consumers in the geo-fenced customer at any time before, during or
to a Google survey, 70% of U.S. area. after a shopping trip.
smartphone owners use their device
while shopping in-store, and 74% During the in-store shopping While smartphones offer significant
of smartphone shoppers made a experience, smartphones can be opportunities to enhance the
purchase as a result of using their used to scan a barcode or run a shopper experience, they also
smartphone.3 price comparison, access product present challenges. For example,
information, check customer reviews retailers have to depend on third-
Before the actual in-store experience, and ratings, and get quick in-store/ party communications providers for
shoppers can use their smartphones aisle navigation. After the shopping connecting with shoppers, and some
to access a store locator, search for experience, shoppers may use their consumers worry about the possible
product availability, and access price phones to track and trace a product erosion of privacy.
and promotional coupons. Using delivery from the store.
3
“The Mobile Movement: Understanding Smartphone Users,” Google/IPSOS OTX MediaCT, April 2011
Engaging with Technology-Enabled Shoppers In-Store 3

4. Surface computing and Augmented reality applications
Case Study: Boulanger Launches its multi-touch devices add a can improve in-store
First iPhone Application new dimension to interactive communications and enhance
The Situation: Boulanger is a leading
shopper engagement. the overall shopping experience.
multimedia and electronics multi-specialist These touch-based graphical While still in an early stage,
based in France since 1954. In early interactive devices allow people to augmented reality has the potential
2010, as part of a panel of leading French interact with content and information to make a great impact on the retail
retailers, Boulanger was introduced
on their own or collaboratively with industry for both shoppers and
to a set of new mobile solutions. After
the presentation, the company asked
their friends and families. With retailers. In-store touchpoints like
Capgemini to design and build a new multi-touch devices, in-store shoppers interactive kiosks can be used to
iPhone solution – one that would offer can locate and select products on enhance real-world data or images
superior functionality and service to its touchscreens at an interactive station, with computer-generated input
customers. download product information on a such as images, graphics or data. In
The Solution: The Capgemini Innovation mobile device or locate items in-store. addition, apps based on augmented
Factory team worked with a team from Tablets can be used for checkouts reality using object recognition and
Boulanger to design and integrate an by applying finger signatures. These GPS can help shoppers locate and find
application that would not only meet basic devices can also issue SMS or e-mail their way to or through a store.
customer requirements (geo-localization receipts, thus enabling faster checkout.
of stores, item description and price, etc.) Additional retail applications include
And increasingly retailers are using
but would actually go beyond to set a
tablets as “assisted sales tools” to product reviews via image recognition,
completely new standard for the industry.
provide more consistent and efficient price checks, product availability,
The Result: In the first six weeks after sales support by store staff. virtual fitting rooms and interactive
it was launched, the application was
window displays. Augmented reality
downloaded more than 20,000 times,
with peaks at 1,500 downloads per day.
Surface computing technologies such can provide an enhanced way to
It quickly reached “top 25” status for as tablets help retailers provide a interact with shoppers in real time.
all iPhone applications in its category. connected experience with a higher However, at this early stage, the set-up
The success of the application has also degree of service. Benefits include and management costs associated with
resulted in a strong association of the increased in-store sales and conversion augmented reality may outweigh the
Boulanger brand with a young, dynamic rates; a reduced learning curve for sales benefits.
and eager clientele.
new employees; a more engaging
“Our aim was to develop a user-centric and efficient buying experience for Point-of-sale technology is
application designed to bring real value shoppers; and the ability to assist moving from traditional to
to our shoppers and customers. This is a sales associates in up-selling and advanced systems, keeping in
complete application enabling purchase mind the changing customer.
cross-selling with quick product
transactions with a real-time inventory
look-up feature in the nearest selected
information, customer opinions, etc. POS applications have the potential to
stores, loyalty management and product move beyond transaction-only devices
guarantees,” said Patrick Perret, Director On the downside, most of these to become the primary medium to
of Information Technology Studies at devices are relatively low on mobility, deliver customer-centric retailing. New
Boulanger. compared with smartphones. applications provide the opportunity
In addition to mobility and speed, other In addition, tablet apps are still to improve the in-store experience by
standout features of the application are: in a nascent stage so a complete reducing consumer checkout times
understanding of their functionalities and abandon rates. For example,
• Direct access to all available products in
nearby stores
is not yet clear. “line-busting” applications use wireless
• Booking an item and retrieving it in the devices to emulate the cash register
store within the hour and give credit card shoppers the
• Real-time updates on special events and chance to skip checkout lines, helping
promotions to enhance a store’s service image.
• Real-time order/repair status
This type of portable POS is especially
• Display of all purchase tickets to enable
an improved after-sales service suited for goods and orders that are
• Viewing products using augmented large and where a store employee is
reality wherein a Boulanger item could be closely involved such as in a DIY store
visualized as it would appear at home. or home center.
4

5. Consumer Products and Retail the way we see it
POS applications can also improve Mobile payments is a growing
convenience and flexibility. Store area for retailers and is gaining
employees can connect a wireless importance due to the rise
access point into the retail backbone in smartphone adoption by
and create an instant “store” for customers.
special occasions or venues such Retail applications offer the potential
as graduations or sporting events. to improve the shopping experience
And retailers can improve operating and increase efficiency. Mobile
efficiency through faster processing, payment methods include proximity
faster interaction with store employees, payment approaches like Near-Field
improved access to product and Communication (NFC), barcodes
inventory data, and better employee and numeric codes, as well as
tools. remote methods like message-based,
browser-based and application-based
Although advanced POS solutions payments.
can help retailers improve customer
centricity, the rate of adoption remains In one example, a mobile app was
slow. A key hurdle is the potential launched that uses facial recognition
need for POS upgrades in order to to confirm a shopper’s identity in
accommodate the new applications. payment transactions. And a new
retail mobile payment service based on
NFC technology lets consumers pay
for items merely by waving or tapping
their smartphones near a register at
checkout.
Although the field of retail mobile
payments is dynamic and evolving,
several challenges exist, including:
• Capital constraints and difficulty in
quantifying the technology ROI
• Lack of comprehensive industry
standards for mobile technology
adoption
• Government restrictions/regulations
related to payment security concerns
and fraud
• Unwillingness of stakeholders like
mobile service providers and banks
to adopt mobile payment systems
Engaging with Technology-Enabled Shoppers In-Store 5

6. In-Store Tech Trends to Watch • Mobile coupons: Users of mobile • Video analytics: Video analytics can
Several additional in-store digital coupons are expected to exceed enable retailers to study store traffic
technologies are also being tested by 300 million globally by 2014, flow, dwell time, shopper intent
retailers: triggered by the apps revolution.4 and conversion rates. Current video
Recent innovations in coupons are analytics technology has reached a
• QR codes: In Korea a grocer is using leveraging digital trends like geo- point where it can detect how and
QR codes innovatively to expand its targeting and group buying. when a shopper is actively engaged
presence. The retailer has erected • Social Local Mobile Media with promotional messaging,
several virtual stores in subway (SoLoMo): The increased adoption determine basic demographic data
stations, taking the form of large of smartphones and related mobile such as gender, and then use that
billboards with virtual store that are apps has given rise to a concept information to push relevant content
exact replicas of the physical stores. called “SoLoMo,” which represents to the shopper in real time.
Shoppers can use their smartphones the coming together of social, local
to scan a QR code near the food and mobile media. SoLoMo works
item, which gets delivered shortly to on the principle of mobile discovery
a location of their choice. that utilizes a device’s portability
and location awareness to push
content.
Figure 2: Reaping the Benefits of In-Store Digital Technology
Real-time store monitoring
Intelligent tracking system that identifies the shopper, his/her Shopper behavior intelligence, shopper loyalty
technology like video
last visit date, purchase patterns information
analytics
Easy access to information, greater functionality,
Smartphones Apps provide a virtual map for store layout, aisle information
faster connectivity
Coupons related to any promotional campaigns can be Promotions for targeted customer segment, call-for-
Mobile coupons
directly sent to customers action, personalization
Augmented reality/surface Check product information, stock levels, product placement
Customer engagement, interactive experience
computing device on aisles
Assisted selling by store staff for an interactive and engaging Process-driven selling, customer conversion, up-
Tablets
shopping experience selling and cross-selling
E-paper signage/digital Supporting customer service by providing information related Price accuracy, dynamic pricing, improved customer
signage to product, pricing readability
Helps customers make informed decisions by
Smartphones/tablets Customer experience, information aggregation
providing price comparisons, reviews
Self-checkout kiosks/
Alternative to traditional POS for faster and easier checkout Self-service, queue management, faster checkout
advanced POS systems
Mobile payments/NFC Transactions authorized using mobile device can enable Faster speed of transaction, information security,
technology speed and convenience at cash counters customer experience
Mobile POS/advanced POS Supports sustainability efforts by retailers by providing
Quick checkout, paperless transactions
systems paperless receipts and quick checkout for customers
Source: Capgemini
4
“Navigating the Mobile Coupon Landscape,” Edo Interactive, June 2010
6

7. Consumer Products and Retail the way we see it
Recommendations: How to Deliver self-service capabilities.
The Role of Employees in Digital Become a Digital Master Do-it-yourself technology like self-
Transformation
Successful in-store digital scanning and hand-held devices will
The impact of in-store digital transformation requires retailers to be adopted in a big way by customers
transformation is not only being felt adopt the right tools to keep pace as they look for tools to make
by shoppers, but also by employees. with technology-enabled shoppers. shopping and checking out easier and
According to a study conducted by RIS Retailers must craft a sound strategy faster.
News, 50% of participating retailers said that is centered around the shopper.
that providing their associates with better Communicate a new reality.
tools was their number one priority.5 To become a digital master, retailers Retailers should continue to adopt
should consider the following technologies like augmented reality
Retailers today are looking to invest in
recommendations: that help provide the “Wow!” factor for
employee-facing technologies to help
shoppers and can improve interactions
improve in-store business processes
Focus on the shopping journey. between the two parties.
as well as to provide more consistent
Retailers must implement digital
and efficient sales support for shoppers. Consider existing applications.
tools and technologies while always
Employee-operated mobile handheld Retailers will need to balance adopting
considering the full customer
devices for line busting, in-store new technology innovations with
shopping journey – from awareness
customer service, barcode scanning and their existing technology applications
to after-sales service – to help ensure a
inventory operations are among the new to ensure smooth integration and
seamless experience.
digital tools being used in-store. fast implementation in order to meet
Differentiate yourself. Technology rapidly changing shopper preferences.
adoption should be treated as a source
of competitive advantage by retailers Focus on people. A successful
looking to improve their in-store in-store digital transformation is
customer experience. only possible if both the people and
technology pillars are bound by robust
Make it mobile. Mobile technology and well-defined processes. Employee
such as smartphones, mobile POS and involvement and training is critical in
mobile payments will play a key role technology implementation to realize
in in-store digital implementations. the full potential of the technology and
Rapid smartphone adoption by to achieve the business objectives.
customers will drive the manner in
which they interact with retailers, both
within and outside the store.
5
“Store Systems Study 2011,” RIS News, January 2011
Engaging with Technology-Enabled Shoppers In-Store 7

8. www.capgemini.com/retail
About Capgemini and the
Collaborative Business ExperienceTM
With around 120,000 people in A deeply multicultural organization,
40 countries, Capgemini is one of the Capgemini has developed its own
world’s foremost providers of consulting, way of working, the Collaborative
technology and outsourcing services. The Business Experience™, and draws on
Group reported 2011 global revenues of Rightshore®, its worldwide delivery
EUR 9.7 billion. model.
Together with its clients, Capgemini More information is available at:
creates and delivers business and www.capgemini.com
technology solutions that fit their needs
and drive the results they want. Rightshore® is a trademark belonging to Capgemini
For more information on our “Engaging
with Technology-Enabled Shoppers
In-Store” research and solutions, please
contact:
Brian Girouard
brian.girouard@capgemini.com
Laurence Jumeaux
laurence.jumeaux@capgemini.com
The “Engaging with Technology-Enabled
Shoppers In-Store” research was
conducted by Capgemini’s Consumer
Products & Retail Strategy Lab: Manvendra
Khati and Pranav Toshniwal.
Rightshore® is a registered trademark belonging to Capgemini. The information contained in
this document is proprietary. Copyright © 2012 Capgemini. All rights reserved.