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2020: How consumers will select and what retailers need to do

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HOW TO DIGEST THE OMNICHANNEL ELEPHANT Final Report Expert Group Selection January 2014
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Page 1: 2020: How consumers will select and what retailers need to do

HOW TO DIGEST THE

OMNICHANNEL ELEPHANT

Final Report Expert Group Selection

January 2014

Page 2: 2020: How consumers will select and what retailers need to do

© Shopping 2020 2

Selection as part of the customer

journey towards 2020

Introduction

Selection in 2020

Requirements & Capabilities

Call to action

Appendix

Page 3: 2020: How consumers will select and what retailers need to do

© Shopping 2020 3

“The most important thing is, we have

extraordinary respect for customers. We think

people live busy lives and the world’s pretty

complicated. So we wanna simplify things”.

Ron Johnson, Former Apple Retail head

Page 4: 2020: How consumers will select and what retailers need to do

© Shopping 2020 4

ShopperBehaviour

Cross Border (e)Commerce

TechnologischFuture

Touchpoints EcologischPolitiek /Juridisch

Online ondernemen

Businessmodels

Veiligheid / Fraude

Omnichannel Organisatie

De Nieuwe Winkelstraat

Supply Chain

Orientation Transaction Delivery CustomerCare

Customer data value

management

FutureTrends

Key Themes

CustomerJourney

Smarter

Shopping

Selection: Second step in customer journeys

An introduction

Selection is the second step in the Customer journey,

one of the micro research programs of Shopping 2020

Selection

Page 5: 2020: How consumers will select and what retailers need to do

© Shopping 2020 5

Why prepare for Selection in 2020

Customer experience leaders outperform the market

Page 6: 2020: How consumers will select and what retailers need to do

© Shopping 2020 6

Customer journeys will be digital and physicial

Report focus: Combining digital experiences and physical stores for Selection

• The expert team focussed on customer

journeys / customer experiences that include

offline and online elements for Selection

activities of customers

• Such combined journeys are more complex to

orchestrate and more difficult to realize

Picture: http://blumenthals.com/blog/2013/06/17/the-debranding-of-google-local/

Page 7: 2020: How consumers will select and what retailers need to do

© Shopping 2020 7

Key questions for customer journeys

From a Selection perspective

Page 8: 2020: How consumers will select and what retailers need to do

© Shopping 2020 8

Selection as part of the customer

journey towards 2020

Introduction

Selection in 2020

Requirements & Capabilities

Call to action

Appendix

Page 9: 2020: How consumers will select and what retailers need to do

© Shopping 2020 9

"We see our customers as invited guests to a

party, and we are the hosts. It's our job every

day to make every important aspect of the

customer experience a little bit better.”

Jeff Bezos, Amazon

Page 10: 2020: How consumers will select and what retailers need to do

© Shopping 2020 10

Key questions for 2020 customer journeys

From a Selection & Customer perspective

Page 11: 2020: How consumers will select and what retailers need to do

© Shopping 2020 11

Deliberate shopper

Shopping is sports

Calculating shopper

Shopping is work

Passive shopper

Shopping is like

visiting the dentist

Passionate shopper

My hobby is shopping

Used the four Shopping 2020 shopper types

Shopper stereotypes from expert team Shopper Behavior

Page 12: 2020: How consumers will select and what retailers need to do

© Shopping 2020 12

Investigated technologies and enablers

Technologies and enablers that will be more widespread in 2020

Kno

wle

dge

Exp

erie

nce

Con

tent

Offe

rings

Page 13: 2020: How consumers will select and what retailers need to do

© Shopping 2020 13

Linked shopper types and customer journeys

Stereotypes force thinking , journeys link the support required

All four GfK shopper types

will likely show up at your

stores

What will be the potential

effect / impact on other

shopping types when

encountering this customer

experience?

The blue building blocks

depict shopper type

requirements

The red building blocks

depict relevant retailer

offerings & capabilities

Colored “clouds” show

Selection customer journey

steps

Every customer will choose a shopper type depending on the occasion

In the execution phase

further segmentation will

be needed for your specific

formula

More detailed customer

journeys provide excellent

talking points with major

stakeholders in your

organization

Page 14: 2020: How consumers will select and what retailers need to do

© Shopping 2020 14

How GameStop uses customer journeys

Example of the use of customer journeys

GameStop uses Customer Journey Mapping to have clarity on where the customer

falls in their purchase path and message them within this context. GameStop then

layers in loyalty program data to predict the most relevant products to offer, when,

where and how.

Source: CMO Club: The CMO Guide to Omnichannel Personalization

Selection scope

Page 15: 2020: How consumers will select and what retailers need to do

© Shopping 2020 15

Calculating shopper

Shopping is work

Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior

Calculating shopper

Page 16: 2020: How consumers will select and what retailers need to do

© Shopping 2020 16

Simon is triggered by a

notification that the

cellphone on his wish list,

is on promotion

He checks product

information and reviews to

validate the item and any

recent alternatives

The top-3 items, he also

checks at a price

comparison site

to validate the

promotional offer

A bundle of the phone with

a great designer cover is

also in promotion

The retailer provides all

information in a format he

likes based on his search

preferences

He makes a reservation to

pick up both items at the

store, as he passes the store

anyway. Checking their

inventory online

Calculating shopper

Shopping is work

Actionable knowledge ExperienceProvide content Proposition

Trigger meMake it personal Make it relevant Convenient selection

Multi- variant testing

Targetted information

Coupons

In-store navigation

Free delivery / return

SEO / SEA

Personalized brochures

Search optimization

Ranked reviews

Extensive product info

Price / product watch

Quick funnelConversational search

Price comparison Package deals Choice of

delivery options

Shopping lists Adaptive website

Personal profile

Routing / navigation

Good return policy

Personal discounts

Purchase history

Mix ´n match coupons

Price com-parisons

Guides & wizards

Special price on limited stock

Expert on callCustomizable search

Reviews Click & Collect Reser-vations

Calculating shopper

Page 17: 2020: How consumers will select and what retailers need to do

© Shopping 2020 17

bol.com

Integrating external suppliers in the site

• External suppliers are integrated

into the bol.com site

• Like Amazon, bol.com makes it

possible to order directly at other

webshops from within the bol.com

website

• Within a year from the start of this

integration, suppliers had added

over half a million items to bol.com

Source: http://www.emerce.nl/nieuws/zakelijke-verkoop-via-bolcom-beter-verwacht

Calculating shopper

Page 18: 2020: How consumers will select and what retailers need to do

© Shopping 2020 18

Booking.com

Easy to find hotelrooms

• Booking.com is one of the largest

hotel intermediaries and has a very

user friendly website with many

filters to optimize the selection for

a quick and easy decision

making process

• The product information is very

detailed and includes info on the

hotel and the rooms available.

• Extensive info also on items such

as location info, reviews, product

photos, availability and price

Calculating shopper

Page 19: 2020: How consumers will select and what retailers need to do

© Shopping 2020 19

Wehkamp

Customizable search results page

• Wehkamp enables the customer to

change the number of items shown in

the search results pane, as well as the

way they are displayed (table, list,

collage)

• The number of options depends on the

amount and detail level of the product

information available

• Depending on the purpose of the

customer (searching for specific item,

searching for suitable item within the

result set), the favorite display modus is

selected

Calculating shopper

Page 20: 2020: How consumers will select and what retailers need to do

© Shopping 2020 20

Deliberate shopper

Shopping is sports

Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior

Deliberate shopper

Page 21: 2020: How consumers will select and what retailers need to do

© Shopping 2020 21

Deliberate shopper

Shopping is sports

In-store experts

Triggers & remarketing

Excellent search

Personal product pages

Reviews on site Ranked reviews

Usage videos and narrative

Customer recognition

Wizards

Product configurators

Extensive product info Best Buy Location based

information

Online validation of

product

Quick & Fast to target

Reviews (shop)

Actionable knowledge ExperienceProvide content Proposition

Seduce meMake it personal Make it relevant Convenient selection

The in-store expert is able

to answer all her queries

about printers

The kiosk screen shows

reviews for printers that

she discussed with

the expert

The system knows that

she has a Windows

laptop and an iPad

With a wizard Mary selects

the best printer for her.

It is only not available in

this store

However it is in stock in

a store nearby

They make a reservation,

as they only have

one in stock

Mary goes to her favourite

store downtown to find

a new printer.

With a store expert she

consults a kiosk

Personal profile Purchase history

One-on-one advice

ReservationsSubscription delivery

Pro-active personal shopper

Personalized information

Buy one Give one

Clear site structure

Targetted information

Multi-channel recognition

Buy one Give one

Personal product page

Personalized reviews Configurators Location based

information

Deliberate shopper

Page 22: 2020: How consumers will select and what retailers need to do

© Shopping 2020 22

Delaagsterekening.nl

Relevant and to-the-point

• Delaagsterekening.nl analyzes mobile

phone usage of customers based on the

invoices of their operator of the last year

• Using that data, the cheapest

subscriptions are analyzed

• Delaagsterekening.nl “translates” the

product specifications of the operators to

the most attractive option, from a

customer perspective

Deliberate shopper

Page 23: 2020: How consumers will select and what retailers need to do

© Shopping 2020 23

Dell.com

Limiting options to help selection

• Dell has a wide range of laptop PC’s based on a number of models, each available with various specifications and configuration

• Dell presents three standard configurations for each model: Good, better, best

• For key product attributes, it not only shows the technical values, but also visually indicates how the different configurations compare

• This reduces the complexity of the selection process, increasing the conversion

Deliberate shopper

Page 24: 2020: How consumers will select and what retailers need to do

© Shopping 2020 24

ASOS

Complete Product Data: Suitable and fitting

- Almost all of ASOS’ items have a

catwalk view, that shows what the item

looks like on a real person

- The looks are also described in detail ,

incl. exact specifications of the

materials used, washing etc

- A complete size guide helps pick the

right size

- Asos makes it possible to activate filters

from the item view of search results, by

eliminating a subset of the search

results

(‘Hide this brand’).

Deliberate shopper

Page 25: 2020: How consumers will select and what retailers need to do

© Shopping 2020 25

Passive shopper

Shopping is like visiting the dentist

Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior

Passive shopper

Page 26: 2020: How consumers will select and what retailers need to do

© Shopping 2020 26

Passive shopper

Shopping is like visiting the dentist

Price confirmation

Search in filtered

assortmentSubscriptionReputation

ReliableRelevant summary

Direct Q: what are you

looking for?

Quickly to detail to show

results

Easy reordering

See physical location

immediately

Simple

ConfirmationStock

information in physical store

Allow for free returns

Pick-up / home delivery

Recommen-dations

Lowest price guarantee

Actionable knowledge ExperienceProvide content Proposition

Help meMake it personal Make it relevant Convenient selection

He checks the website of

his favourite drugstore

for recommendations

In addition to a regular

purchase, the store offers

him a subscription model,

with new razors every month

The straightforward

navigation make it easy

for Mark to select razors

and foam

A presentation of the three

top selling shaving foams

grabs his interest

Reviews from people with

the same skin type help

in the decision

making process

Home delivery and fre

returns saves him from

a trip into town

Mark’s ran out or razors,

so he desperately needs

to buy new ones

Purchase history Less choice

Very clear navigation

Complete Looks

Return policy

Personal profile

Limited assortment

Ranked reviewsReviews

Video usage instruction

Reminder service

Usage storiesSimple

Wizards Return policy Subscriptions

Passive shopper

Page 27: 2020: How consumers will select and what retailers need to do

© Shopping 2020 27

Wegmans (and others)

Purchase history

Question:

• How do I access my Shoppers Club past purchases to build a shopping list?

Answer:

• Go to products tab and tap "Your name's purchases". There is a rolling 15 months of purchase history available. This data is only available when a Shoppers Club card, keytag or phone number is used at the time of purchase.

Passive shopper

Page 28: 2020: How consumers will select and what retailers need to do

© Shopping 2020 28

Amazon Prime

Subscription model lowers barriers

• Amazon offers a (shipping)

membership model

• The customer can buy without paying

(extra) for shipping

• Thus Amazon removes an important

barrier to buy and receive purchases

at home

• This creates lock-in and stimulates

impulse buying

• In addition to free shipping, members

are entitled to other benefits including

video and e-books

Passive shopper

Page 29: 2020: How consumers will select and what retailers need to do

© Shopping 2020 29

Thuisbezorgd.nl

Four pages only for a complete order

• Four pages are enough to buy from the

largest assortment of delivered meals in

the Netherlands

• Large selection of local meal delivery

companies

(total 4500 restaurants)

• Complete with reviews

• Pay online or at delivery

• Order/delivery tracking service

Passive shopper

Page 30: 2020: How consumers will select and what retailers need to do

© Shopping 2020 30

Passionate shopper

My hobby is shopping

Source: Dé shopper bestaat niet - almere, 26 september 2013 - eerste uitkomsten van de expertgroep shopper behavior

Passionate shopper

Page 31: 2020: How consumers will select and what retailers need to do

© Shopping 2020 31

Multi-channel recognition

Incorporate reviews,

ratings blogs

Theme shopping

Make customer

shine (expert)

Surprising Group shopping

Celebrity role model Free wifiCross

marketing Invite a friend

Social TrendsetterExtended isleLifestyle tipsTip a friend for

discountBlogs video

forums

Passionate shopper

My hobby is shopping

Actionable knowledge ExperienceProvide content Proposition

Surprise meMake it personal Make it relevant Convenient selection

Via the web she invites a

friend, who cannot attend in

person for advice to watch

the red carpet videos

Jody ready a blog on a

trendy form on a new

pop-up store of her

favorite brand

The store has an electronic

mirror. Showing all kinds

of additional information

The store sends Jody´s

friends coupons for group

shopping with a discount

valid for a week

Back home, Jody puts new

images on facebook,

pinterest and twitter of her

new dress

She marks some items she

wants to try on, and shares

them with her online friend

The mirror lists the best

selling accessoires that go

with the dress

Profiling C2C interaction

Special atmosphere

Pop-up storesVirtual wardrobe

VIP priviliges retention.

Multi-channel recognition

WorkshopsPersonalized offer

Social media sharing

discounts

Social media

Related samples

Enter-tainment

Video reviews

Community building

Group shopping

Passionate shopper

Page 32: 2020: How consumers will select and what retailers need to do

© Shopping 2020 32

Zara

Every time, a new collection

• Feels like a new store with every visit

• Many different collections per season

• Each store can optimize their assortment

• Quick response to trends and customer

demands

• Many changes in store layouts, because of

changing assortments

• Zara has become (one of the) largest

fashion retailers in the world.

Passionate shopper

Page 33: 2020: How consumers will select and what retailers need to do

© Shopping 2020 33

BMW

Product page

• Custom layout and content for the

introduction of a new product, adapted

to its proposition

• Combining news, video, infographics,

product information and live social

media data from Facebook, Instagram,

Foursquare, Youtube and Twitter.

Passionate shopper

Page 34: 2020: How consumers will select and what retailers need to do

© Shopping 2020 34

Burberry

Coherent choices re. integration online - offline

• Comprehensive approach that is

consistent with brand strategy

• Expanded the function of the traditional

physical fashion store

• Well executed integration of online

functionality with offline elements for

improving shopping experience

• Online functionality translated to offline

store, e.g.

additional product information made

available using RFID, interactive mirrors

Passionate shopper

Page 35: 2020: How consumers will select and what retailers need to do

© Shopping 2020 35

Selection as part of the customer

journey towards 2020

Introduction

Selection in 2020

Requirements & Capabilities

Call to action

Appendix

Page 36: 2020: How consumers will select and what retailers need to do

© Shopping 2020 36

"We need to use data to start treating people like

individuals, not market segments"

Jill Puleri, VP Global Industry Leader Retail IBM

Page 37: 2020: How consumers will select and what retailers need to do

© Shopping 2020 37

Key retailer requirements

From a Selection perspective

Page 38: 2020: How consumers will select and what retailers need to do

© Shopping 2020 38

Provide a differentiated experience

Use all the customer information available

Questions re. personalization:

• Do you know how customers would like

to interact with your brand?

• Do you have a unified source of

customer information?

• Do you use the customer information for

more than personalized emails?

• Do you use customer information to

provide differentiated experiences in all

the channels you sell in?

Customer knowledge

According to a recent survey of

marketing executives 69% agree

that consumers expect the kind of

relevant offers and interactions

such insight allows, yet only 12%

said they are leading edge at it.

http://www.accenture.com/us-en/Pages/insight-whats-data-worth-summary.aspx

Page 39: 2020: How consumers will select and what retailers need to do

© Shopping 2020 39

Adaptive, interactive & unified experience

Risnews: Transforming E-Commerce

• “53% of online merchants report an increase in returning visitors

when using personalization”

• “So, what does it take to really change shopping?

One key is to bring the best of the offline world to the online world,

and this can be summed up in the seamless way we "discover" in

physical environments and the way we "learn" about new

products”

http://risnews.edgl.com/retail-trends/Transforming-E-Commerce--The-Introduction-of-Artificial-Intelligence89479

Picture: http://www.teachrite.com/blog/index.php/personalized-learning-defined/

Customer knowledge

Page 40: 2020: How consumers will select and what retailers need to do

© Shopping 2020 40

Customer knowledge

Adaptive, interactive & unified experience

Let content match customer characteristics

Recommendations to implement:

• Analyse and use customer data to personalize the experience

• Create actionable clusters based on the customer’s response to various dimensions of your value proposition

• Create adaptive / interactive products, with the following characteristics:

• Configurable products tailored to the customer profile

• Matching product information the customer needs to decide

• E.g. Netflix created products (content) matching customer profiles

Tooling:

• Customer analytics

tooling

• Next Best Action

• Customer recognition

technology:

• iBeacons

• Loyalty cards

Page 41: 2020: How consumers will select and what retailers need to do

© Shopping 2020 41

Content

Accurate & timely information

Invest in accurate (near) real-time data

Information related questions:

• Is there a unified source of data across

the company ?

• What information does your customer

need to select an item and feel

confident?

• Does that product information include

video, reviews, blogs etc ?

• Is the information optimized for the

various mediums used to access it:

tablet, desktop, kiosk, store ?

• Does search provide (near) real-time

results ?

• Can you provide accurate stock and

delivery information?

“Where the whole thing was lacking for

me was in the multichannel integration.

There’s no way (other than with an

associate’s iPad) for a customer to

access their online account, pull up

their wish list, or pre-shop in a

connected way. Online social content

isn‘t really represented (and) there’s no

online payment integration.”

Forrester in a blog on Burberry

Page 42: 2020: How consumers will select and what retailers need to do

© Shopping 2020 42

Comprehensive & dynamically managed

Content to match customer characteristics

• Google and/or Microsoft and/or Apple often already manage your calendar , your address book, your email, your apps and most of your searches.

• Now imagine they engineer engines that generate custom to-do lists for you as targeted —or as comprehensive—a weekly/daily/hourly/ real-time to-do list you think you might want or need.

Content

Page 43: 2020: How consumers will select and what retailers need to do

© Shopping 2020 43

Content

Comprehensive & dynamically managed

Content match customer characteristics

Recommendations to implement:

Content & Data are king:

• Relevant content

• Right touchpoint

• Right timing

• Right customer

• Structured & Normalised content

Tooling:

• Master Data

Management

• Customer analytics tooling

• CRM systems

• Web analytics

• Location technology

• Advanced designs

• Smart mirrors

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© Shopping 2020 44

Customer offering

“Segmentation vs. customization

seems destined to become one of

the most interesting debates this

decade. Ironically but

appropriately, the best answers

will be found in the fusion of Big

Data and 80/20 analytics.”

Customer value management

Big Data is key to profitable business

Customer interaction value questions:

• Which 20% of customers generate 80%

of the profits, now and in the future?

• What 20% of customers facilitate 80%

of the most helpful referrals?

• Once you know what your 80/20 clients

look like, who should you be targeting at

your rivals?

http://blogs.hbr.org/2013/11/how-is-big-data-transforming-your-8020-analytics/?utm_medium=referral&utm_source=pulsenews

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© Shopping 2020 45

Customer offering

Value based offerings

Competing with Amazon is doable

"What is interesting is that when you factor in different retail

competitive strategies like carrying a different assortment,

leveraging private label, delivering targeted customer

promotions, and creating unique customer experience in

addition to price leadership, it certainly appears that retailers

are learning how to compete with Amazon."

http://risnews.edgl.com/retail-trends/who-s-the-fairest-retailer-of-them-all-89478?postalcode=1066v&referaltype=newsletter

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© Shopping 2020 46

Customer offering

Value based offerings

Price only is not a viable option for most retailers

Recommendations to implement:

Understand your competitors

weaknesses:

Analysis shows that also Amazon does

have weak spots, and that retailers can

compete with the online giants,

especially if they can beat them on

other non-price purchase factors

Carry different assortments, leverage

private label, deliver targeted

customer promotions, and create

unique customer experiences in

addition to price leadership

Tooling:

• Dynamic pricing

technology

• Distributed order

management

• Advanced promotions

technology

• Product customization options

• Lockers

• Multiple delivery options

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© Shopping 2020 47

Customer experience

Setup consistently across touch points

First focus on the context of customer experiences

Customer interaction questions:

• Who are we interacting with?

• Identification

• What do we offer?

• Product, service, experience etc

• When does he buy from us?

• Context, lifecycle, need

• Where do we deliver?

• Destination, purpose

• Why would he buy from us?

• Connection, emotion, values

"We're a service company that just happens to sell shoes.“Tony Hsieh, CEO, Zappos.com

“PetSmart is the largest specialty pet retailer of services and solutions for

the lifetime needs of pets”PetSmart mission statement

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© Shopping 2020 48

Customer experience

Recognition & Precision marketing

Forrester: The Rise of (Marketing) Orchestration

Marketing orchestration is an approach to marketing that focuses

not on delivering standalone campaigns, but instead on optimizing

a set of related cross-channel interactions that, when added

together, make up an individualized customer experience.

Page 49: 2020: How consumers will select and what retailers need to do

© Shopping 2020 49

Customer experience

Recognition & Precision marketing

Enable fast customer recognition

Recommendations to implement:

• Enable fast customer recognition

• Provide personal recommendations

based on customer information

• Stores are places for shoppers to

connect, discover, share and

personalize their experiences

• Digital touchpoints are responsive and

even more personalized

Tooling:

• Advanced digital

platforms

• Customer analytics tooling

• Web analytics

• Dynamic pricing technology

• CRM systems

Page 50: 2020: How consumers will select and what retailers need to do

© Shopping 2020 50

Selection as part of the customer

journey towards 2020

Introduction

Selection in 2020

Requirements & Capabilities

Call to action

Appendix

Page 51: 2020: How consumers will select and what retailers need to do

© Shopping 2020 51

As a management team, we began by asking ourselves a

fundamental question: ‘What is our vision?’ And, from very early

on, we decided we were going to be a design, marketing and

retail-led organization. This was our high-level vision. From there

we began to develop our five-year strategy, asking: What do we

have that our peers don’t - other than the fact that we are much

smaller, a standalone company and with little cash to invest?

Digital Leadership An interview with Angela Ahrendts, CEO of Burberry

Page 52: 2020: How consumers will select and what retailers need to do

© Shopping 2020 52

For BV Nederland

Time to act is now!

General observations:

• Omnichannel knows no boundaries

• New competitors can emerge faster than ever before

• The retail landscape itself is under multiple threats

• Growing power of a few players

What it means for retailers

• A growing divide between the “act nows” and the “wait and sees”

• The survival of the smart retailers

• Being stuck in the middle is even worse than it was!

Page 53: 2020: How consumers will select and what retailers need to do

© Shopping 2020 53

Selection recommendations

For retailers to get ready for Selection in 2020

Page 54: 2020: How consumers will select and what retailers need to do

© Shopping 2020 54

How to digest the omnichannel elephant

Change is required in many different areas

• Make your organization flexible and live the cultural change required

• Make solutions (internally and externally) connected and scalable

• Don´t be afraid to (use and) throw away (existing) solutions

• Make technology an integral part of your solutions

But first and foremost:

Let your customers be your guides

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© Shopping 2020 55

Knowledge creates kings

Understand as much as you can

• What do we already know of this customer

• What information do we already have on him

• What is the customer (lifetime) value

• Is it realistic and beneficial to us to create a relationship

• What role does our customer play in this decision making process

• Decision maker online vs decision maker in stores

• Where is the customer with regard to duration / timing

• Not all customers decide today and need it within the hour

• What role does price play

• Role of search engines and review sites

• What incentives work(ed) with this customer

• Improve profitable conversion

Customer knowledge

Page 56: 2020: How consumers will select and what retailers need to do

© Shopping 2020 56

Content enables customer journeys

Content is more than information from your ERP

• Use rich and accurate product data

• Reliable, structured and normalized data is (even) more

important than incorporating photo´s, video´s, reviews,

blogs, forums

• Make product information comparable

• Provide product information in consistent,

comparable views

• Redefine products

• Offer subscriptions, bundles, experiences, value patterns

• Simplify complex products

• Provide wizards, configurators, kiosks, remote experts

• Optimize search functionality

• Optimize search based on customer profile, preferences

and behavior

Content

Page 57: 2020: How consumers will select and what retailers need to do

© Shopping 2020 57

Customer offerings are for shopper types

Align the customer offering with the shopper type

• Put the customer at the heart of your decision making

• Enable personalization, personal profiles etc

• Define end-to-end customer offerings

• Including returns, refunds

• Understand the role of shared values, communities

• Price is not always the key differentiator

• Start with the mobile experience in mind

• Desktop and laptop are becoming less important

• Enable fast opportunity based navigation

• Simplify as much as possible

• Offer wizards and preselections

• Offer options for quick selection, navigation and configuration

• Use remarketing to increase conversion

• Using shopping basket, recently viewed, previous purchases

Customer offering

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Customer experiences are envisioned

Determine who you want to be in omnichannel

• Decide on your “role in retail”

• For example Superaggregator of Professional curator

• What role do you want your brand(s) to play

• As related to experience and relevance in decision making process

• What role do you want others to play

• Use of partner programs, shared lockers, use of LSP´s

• What is your preferred degree of cross-channel integration when

• For example Order online, add to basket in store

• How do you plan to use visuals / content in the overall experience

• Visuals become ever more important

• What is the role of your store employees

• Define their role in the overall customer experience

• How do you plan to use assortment / products

• Use products / assortment to create compelling customer journeys

Customer experience

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Selection shopping list for retailers ...

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Selection as part of the customer

journey towards 2020

Introduction

Selection in 2020

Requirements & Capabilities

Call to action

Appendix

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ShopperBehaviour

Cross Border (e)Commerce

TechnologischFuture

Touchpoints EcologischPolitiek /Juridisch

Online ondernemen

Businessmodels

Veiligheid / Fraude

Omnichannel Organisatie

De Nieuwe Winkelstraat

Supply Chain

Orientation Selection Transaction Delivery CustomerCare

Customer data value

management

FutureTrends

Key Themes

CustomerJourney

Smarter

Shopping

Selection – Key step in customer journey

An introduction

The Selection expert team is part of the Customer journey program,

the micro research program of Shopping 2020

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The steps within the Selection path

Element Description

Shop entrance Assessment of the shopping navigation structure and the extra features presented on the homepage and in

the navigation menu at the start of the shipping process. How can you find your way and how are you invited

to start shopping

Shop interface How can you get to the product. Can customers customize the number of products they see and the order in

which they are presented. What are the key interface elements. Are there multiple ways to find the product.

How many clicks does it take to get to the product

Assortment

structure &

product search

How is assortiment structured. Are there 3rd party products, how are they integrated in assortment structure

and search. How is product structured; functional (product categories, price etc.) or also on theme´s, styles,

prices, etc. How are refine options structures. How advanced is search, does it use auto complete. Are there

more advanced orientation and guidance tools.

Product

information

What product information is available. How many product images, videos, zoom options, multiple angle views.

How extensive is the product information. Are there user reviews, expert opinions. Are the product help tools in

place (size charts, select & compare). Is product availability and delivery time information adequate.

Price & delivery

information

This dimension contains checkpoints concerning the price and delivery information on the product information

page; Is price information correct and complete. Does it show whether or not taxes are included and if not how

high they can be. Is there information about available and is there an indication of delivery time and shipping

costs etc

Selection

enhancement

What is used to stimulate and enhance conversion, cross and up sell, Select & Compare, combination

suggestions, recommendations etc.

Selection flows How many steps does it take to put a product in the basket. Is there an option for fast selection, quick

navigation etc.

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Selection

Overview of the Bonsing|Mann Customer Journey Model

Selection starts with the Intention to

Purchase a product or service and ends

with a selected product and/or service,

ready for Transaction

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Working Sports A visit to the dentist Hobby

19% 27% 28% 26%

Calculating shopper Deliberate shopper Passive shopper Passionate shopper

Budget, deliberate, not sensitive to

brands or hypesPlanned shopping, quality and service

Shopping is a necessary evil

Seeks ensurance in service

Shopping is fun, bargains, sensitive

to trends and hypes, feel good

50% female 51% female 62% male 67% female

40-64 jaar 20-39 jaar 50+ < 29

Household 3-5 Household 2-4 Single households Household 3-4

Lower incomes Higher incomes Average incomes Lower incomes

Average education Higher education Lower education Average education

Desktop & laptop shopping Desktop, laptop & tablet shopping Desktop & smartphone shopping Multi-device shopping

No delivery preference Home delivery preference No delivery preference Collect preference

Easy to reach stores, parking and

known retail chains

Environment, diversity, small

boutiques

Easy to reach stores, parking and

safety

Number and diversity of stores,

known chains and small boutiques

Physical store because: No hassle,

as usual, look at products, faster

Physical store because: Better info,

can also buy other products, best

advice

Physical store because: trustworthy,

advise, better price, faster, attention /

service, support local entrepreneurs

Better experience than online, easier,

more convenient, service, outing

Online because: Better information,

saves money, one stop shopping,

faster & easier

Online because: Better information - -

Four customer stereotypes

GfK shopper stereotyping for Shopping 2020 – Key traits

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Over het Shopping2020 programma:

Hoe winkelt de consument in 2020?

• Shopping 2020 is een onderzoeksprogramma met als doel het

beantwoorden van de volgende centrale vraag:

‘Hoe shopt de consument in 2020 en welke acties moeten worden ondernomen

op nationaal, branche en bedrijfsniveau opdat B2C Ondernemend

Nederland succesvol hier op in kan spelen, nationaal én internationaal?’

• Reden voor het onderzoeksprogramma is dat het huidige retail-,

finance- en travel speelveld snel verandert:

• Veranderend consumentengedrag (van single naar omnichannel);

• Disintermediatie van ketens (producenten gaan direct verkopen);

• Opkomst van nieuwe media (Google glasses, voice/virtual recognition)

• Digitalisering van producten (gaming, 3D printing);

• Internationalisering & hypercompetitie (Amazon, Zalando), etceteraY

• Veel ontwikkelingen zijn universeel en brancheoverstijgend.

• Ondanks de economische crisis, moeten bedrijven zich herpositioneren om na 2020 nog

bestaansrecht te hebben. Shopping2020 ondersteunt bedrijven in de creatie van hun visie

hoe zijn zich in 2020 moeten positioneren.

Source: http://www.zazzle.nl/nederland_de_nederlandse_macht_van_het_honkbal_van_tas-149333394796361450

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19 Thema’s naar een visie & actieplan voor NL

In elke Expert Team zitten experts uit wetenschap, politiek en bedrijfsleven

ShopperBehaviour

Cross border (e)Commerce

TechnologicalFuture

TouchpointsEcology Political / Legal

Orientation Selection

Transaction Delivery

BusinessModels

Omnichannel Organization

Security & Fraud

The New Shopping Street

Smartershopping

Supply Chain

Future Trends

Customer Journey Key Themes

TravelAction plan

Finance Action plan

Retail Action plan

YAction plan

Action Plan

Shopping2020

Customer Care

Customer

Data Value

Management

Online Entrepreneur-

shipY

Shopping2020Vision

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Shopping 2020 wordt mogelijk gemaakt door

Founding Partners, Gastheren, Kennis-, Wetenschappelijke-, Netwerk- & Media-partners

Founding Partners: Wetenschappelijke partners:Kennis partners:

Program mgt: Jorij Abraham

Mar/Com: Inge Demoed

Research: Eveline Poerink

Congres: Marin Wiellersen

Travel Retail Finance

Expert TeamShopper

Behaviour

Expert Team Cross Border (e)Commerce

Expert Team Technologisch

Expert Team Future Touchpoints

Expert Team Ecologisch

Expert TeamPolitiek /Juridisch

Expert TeamOnline ondernemen

Expert TeamBusinessmodels

Expert Team Veiligheid / Fraude

Expert Team Omnichannel Organisatie

Expert Team De Nieuwe

Winkelstraat

Expert TeamSupply Chain

Expert TeamOrientation

Expert Team Selection

Expert Team Transaction

Expert Team DeliveryExpert Team

CustomerCare

Expert TeamCustomer data

value managementArjen Bonsing

Commissie van Aanbeveling

ProgramBoard

FutureTrends

Key Themes

CustomerJourney

SupportTeam

Dymfke Kuijpers

Axel Groothuis

Ed Nijpels (voorzitter)

Bernard Wientjes (VNO-NCW)

Arie van Bellen (Directeur ECP)

Martijn van Dam (kamerlid PvdA)

Jan Kees de Jager (vml. Min. Fin.)

Cor Molenaar (Erasmus Universiteit)

Kitty Koelemeijer (Universiteit Nyenrode)

Walther Ploos van Amstel (VU)

Erik Fledderus (Directeur TNO)

Heleen van Oord (Directeur DQ&A)

Giovanni Colauto (CEO Bijenkorf)

Harry Bruijniks (CEO Euretco)

Ronald van Zetten (CEO Hema)

Joost Romeijn (CEO Sundio Group)

Paul Nijhof (vml. CEO Wehkamp)

Annemarie van Gaal (CEO van Gaal)

Herna Verhagen (CEO PostNL)

Nick Jue (CEO ING NL)

Michiel Buitelaar (COO Sanoma Media)

Danny van der Eijk (Chairman Achmea)

Harry van Dorenmalen (CEO IBM Europe)

Netwerk partners:

Smarter

Shopping

Media partners:

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Meer dan 460 experts werken meer dan een ½ jaar aan Shopping2020 mee:

Page 69: 2020: How consumers will select and what retailers need to do

© Shopping 2020 69

The experts of Selection

Wouter de Vreeze

Bol.com

Business Development

Sheila Keizer

DMG

Web Manager

Frans van der Werff

VakantieXperts

Internet manager

Peter Sparreboom

EUR (Erasmus)

Promovendus

Eva Koppers

Etam

E-commerce manager

Bas Minkes

Luxaflex Nederland

Marketing Manager

Peter Vogel

Blokker Nederland

Manager eCommerce

Marloes Batelaan

KPN

E-Business Marketeer

Auke Meulenbroek

Maxeda / Praxis

E-commerce-Online

Gertie Bin

Omoda

Manager online shop

Myrah Wouters

Mediq

Manager eHealth

Wouter Hylarides

Mediq

eBusiness Marketeer

Kris Boon

Sanoma Media

Business Dev´ment

Michael Christianen

Adidas

Analytics & Insights

Toine Bax

eCom Pro

Managing Partner

Maurice van der Sterren

IBM GBS

Managing consultant

Jerry J. Stam

IBM GBS

Sr Managing Consultant

Pieter Both

GrandVision

Group eBusiness Mgr

Alon Ben Joseph

Ace Luxury Group

Co-CEO

Martijn Visser

BOVAG

Marketing manager

Page 70: 2020: How consumers will select and what retailers need to do

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Jerry J. Stam MBA MsC LLM

IBM - Senior Managing Consultant

[email protected]

+31651285639

www.shopping2020.nl

@ibm_retail_nl

nl.linkedin.com/in/jerrystam


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