Key Consumer Trends and how they affect retail FUTURELAB
Transcript
1. Key Consumer Trends and how they affect retail
FUTURELAB
2. a more customer-friendly place On a mission to make the
world FUTURELAB Alain Thys: [email protected] Some credentials
3. PART ONE Key shopper trends and how they affect retail PART
TWO How to prepare for the changing retail reality. PART THREE A
few words on payment FUTURELAB
4. PART ONE Key shopper trends and how they affect retail PART
TWO How to prepare for the changing retail reality. PART THREE A
few words on payment FUTURELAB
5. (cc)nggalai Key shopper trends and how they affect retail
Demographics Technology Mindset FUTURELAB
7. Demographics 1/3 of the population > 80% of the wealth
> 50 yrs old Image: (cc) Chris_Parfitt Shoppers are getting
older 43.4 46.1 48 49.6 1999 2004 2008 2013 Sources:
trendwatching.com, 2013 Cyril Huze Post - 2013 Average age of
Harley Davidson driver. FUTURELAB
8. Demographics Shoppers are getting more multi-cultural
Source: Daily Mail Online, August 2013 Immigration numbers by
country, 2012 (cc)epSos.de FUTURELAB
9. Shoppers live in ever smaller households (cc) arileu Aging
Divorce Choice Career Demographics FUTURELAB
10. Are you really taking their needs seriously? Influence on
retail Store format Merchandise selection Staff behaviour &
know how - (cc) augapfel Galina Barskaya (c)Getty Images Ageing
Immigration Non-traditional households FUTURELAB
11. Catering to a specific age group Remarkable practice
FUTURELAB
12. Catering to different cultural values Remarkable practice
Korea: Lavendel Halal, Rice-based Skincare Metropolitan restaurants
Halal food at McDonalds FUTURELAB
13. Catering to singles Remarkable practice Slunch Factory
(Korea) Single household lunch box Supermarket dating Help singles
meet FUTURELAB
14. (cc)nggalai Key shopper trends and how they affect retail
Demographics Technology Mindset FUTURELAB
15. 98.1 90 80.5 64 35.9 3.7 16-24 25-34 35-44 45-54 55-64
65-74 Internet access by age group Lithuania, Q1-2012 The internet
has changed the way we buy Digital Reality Source: Statistics
Lithuania, August 2012 Holidays Cars Books What isnt in Lithuania
today, will come. Insurances FUTURELAB
16. In-store smartphone usage per category US, 2013 Mobile is
part of the shopping experience Digital Reality Source: Google
Shopper Marketing Council, August 2013 On an average day, more than
100,000 unique customers access Nordstrom on a mobile device, with
nearly twice that amount during the holidays, In 2012, sales from a
mobile device accounted for over 20%more than $260 millionof the
companys total direct (digital) sales. Compared to less than 4% in
2010. Source: Internet retailer, February 2013 FUTURELAB
17. 36 43 53 60 Lithuania 2011 Lithuania 2012 Denmark UK
Sources: The Baltic Course, May 2013 - OECD, 2012 Ecommerce is part
of life for every retailer Digital Reality % of population
purchasing online 42% of UK electronic goods buyers will look at
products in store before buying online from a different retailer.
Source: The Consumer Decision Journey, Microsoft, 2013
Image:(cc)CliveDarra FUTURELAB
18. Digital Transparency Rules Digital Reality Quality Price
Coming soon to Europe: FUTURELAB
19. Are you ready for the omnichannel reality? Influence on
retail International competitionAlways on transparency Showrooming
Image: (cc) Clive Darra FUTURELAB
20. Make shopping easy Remarkable practices Panty Subscription
Service (CA) Fastest delivery From store to house in minutes (UK)
FUTURELAB
21. Is it a store or a showroom? Remarkable practices Apple
stores John Lewis Exeter About 60% of our customers buy both online
and in shops so the approach is to make it absolutely seamless for
them to move from one to the other. FUTURELAB
23. An unusual approach Remarkable practices Brisbane,
Australia, 2013 FUTURELAB
24. (cc)nggalai Key shopper trends and how they affect retail
Demographics Technology Mindset FUTURELAB
25. Scarcity Mindset Time Money Decreasing disposable income
More planned buying Growth in private label Shrinking share of
wallet for everyone Life gets busier Time scarcity = more efficient
shopping Desire for work-life balance = shopping is a chore Desire
for one-stop service & product shopping FUTURELAB
26. Indulgence Mindset Entertain meMake it beautiful (Design
matters) FUTURELAB
27. Conscience (& scepticism) Mindset Health World 84%
percent of millenials (18-32 yrs) in Europe, Asia and US believe it
is their generations duty to change the world Health and wellness
is becoming a priority but consumers find it difficult to decode
product labeling and nutritional claims. The cat is out of the bag
Out of 5,296 products, 95% made at least one false claim Source:
Terrachoice, 2012 Source: Bord Bias 2010 Periscope study Source:
The Guardian, April 2013 FUTURELAB
28. Are you ready for changing consumer mindset? Influence on
retail Health and environmentEfficiency with time & money
Design and entertainment Image: (cc) PhotoAtelier Image: (c) Mike
Powell FUTURELAB
29. 19/03/2014 29. Tesco Homeplus Korea (by now a classic)
Remarkable practices FUTURELAB
30. Disarming detractors No one can do this on his own Brand
Utility Examples GS 25 Virtual fridge FUTURELAB Korean supermarket
lets consumers store 2-for-1 promotions in a virtual
refrigorator
31. Italian food shopping redefined Remarkable practices
FUTURELAB
32. Disarming detractors No one can do this on his own
Remarkable practices It doesnt have to be so elaborate HEB
Supermarkets (Texs) 11% growth in mens care products within 1 year
FUTURELAB
33. Disarming detractors No one can do this on his own
Remarkable practices Just be honest FUTURELAB
34. PART ONE Key shopper trends and how they affect retail PART
TWO How to prepare for the changing retail reality. PART THREE A
few words on payment FUTURELAB
35. 19/03/2014(cc) Andreas Kollmorgen Preparing for the
changing retail reality Secure the basics Offer complete and
relevant experiences Focus technology on the customer
FUTURELAB
36. Disarming detractors No one can do this on his own Secure
the basics Yesterday, mistakes could be forgiven no more.
FUTURELAB
37. Disarming detractors No one can do this on his own Secure
the basics Digital Basics Fast website Easy shopping Mobile
availability Online security Quality home delivery Variety in
payment options Social integration FUTURELAB
38. Disarming detractors No one can do this on his own Secure
the basics Retail basics Opening hours - Retail standards Staffing
- Merchandise availability - Store design (cc)JasonRosenberg
FUTURELAB
39. Secure the basics Tactically responding to customer queries
What is the % of helpdesk questions that never get answered
(Insites Consulting, 2010 n=500 senior marketers in Benelux,
France, Germany, UK) 11-28%depending on the channel FUTURELAB
40. Disarming detractors No one can do this on his own Secure
the basics Structurally acting on customer feedback 90% Collect
Customer Feedback Alert Staff to Findings 50% Make decisions using
insights 30% Deploy improve 10% Inform customers of change 5%
Source:BupaInternational,2009 DEBATE WHERE IS YOUR BUSINESS?
FUTURELAB
41. Remarkable practice: Applying common sense to basics can
take you far Metro Bank Theres more Leave the bank with your card
Have a coffee next door if you need to wait (with alerts) Friendly
& smiling recruitment policy FUTURELAB
42. Disarming detractors No one can do this on his own
Remarkable practice: Applying common sense to basics can take you
far Own experiences Minimum Standards Brilliant Basics
FUTURELAB
43. 19/03/2014(cc) Andreas Kollmorgen Preparing for the
changing retail reality Secure the basics Offer complete and
relevant experiences Focus technology on the customer
FUTURELAB
44. Complete & relevant experiences To avoid
misunderstandings Lets spread love & hug Lets be like
DisneylandLets go WOOOOOWW!! When I talk about experiences Im not
talking about. FUTURELAB
45. Complete & relevant experiences To avoid
misunderstandings I am talking about really connecting with your
customers FUTURELAB
46. The biggest CX challenge Most companies wear blinders on
customer experience FUTURELAB (cc) Emilio Labrador
47. 47 Travel company Which are the customer steps when going
on a holiday FUTURELAB 1. I dream of going on holiday 2. I research
my holiday 3. I plan my holiday 4. I select my holiday 5. I
purchase my holiday 6. I receive travel documents & tickets 7.
I anticipate departure 8. I prepare my trip 9. I travel to my
destination 10. I discover my destination 11. I experience my
destination 12. I record my memories 13. I share my experience 14.
I travel back home 15. I share my memories
48. 48 Ask yourself Which steps in the journey do travelcos
manage? FUTURELAB 1. I dream of going on holiday 2. I research my
holiday 3. I plan my holiday 4. I select my holiday 5. I purchase
my holiday 6. I receive travel documents & tickets 7. I
anticipate departure 8. I prepare my trip 9. I travel to my
destination 10. I discover my destination 11. I experience my
destination 12. I record my memories 13. I share my experience 14.
I travel back home 15. I share my memories
49. 49. Remarkable practice CEE Mall: Different customers,
different experiences Planning Departure Journey Arrival
Decompression Exit Journey Remember Returns Shop BuyDwell The
Shoppers Journey
50. 19/03/2014 50. Deliver relevant experiences Three steps 1.
Map your customers TRUE journey (think beyond your store) 2.
Identify key choice and loyalty drivers for each shopper archetype
you target 3. Develop experiences which match these drivers at
EVERY journey step FUTURELAB
51. 19/03/2014(cc) Andreas Kollmorgen Preparing for the
changing retail reality Secure the basics Offer complete and
relevant experiences Focus technology on the customer
FUTURELAB
52. Embrace technology Consider technology To enhance the
experience To become more lean To challenge conventions
FUTURELAB
53. Embrace technology Look beyond the apps Customer vs.
Shopping cart analytics Customer contacts Support functions
Management CEO Customer Reality Seamless Experience Single view of
the customer FUTURELAB
54. Embrace technology Look beyond the apps Customer vs.
Shopping cart analytics Data Discovery Predictive modeling Customer
Intelligence Voice of customer Voice of business Voice of employee
Voice of market FUTURELAB
55. Different customers, different styles Selecting a handset
Managing Services Simple enough but not too simple Tariffs Billing
Remarkable practice Use technology to offer differentiated/relevant
experiences FUTURELAB
56. Remarkable thought Point of inspiration: Sharing Data? SVP
Digital Business, LOral Group Brands and retailers need to let go
of their antagonistic negotiation model and instead focus on
working together to maximise retail floor sales and profit. Both
stand to gain. Experiment: Joint initiative LOral-Carrefour make-up
kiosk FUTURELAB
57. PART ONE Key shopper trends and how they affect retail PART
TWO How to prepare for the changing retail reality. PART THREE A
few words on payment FUTURELAB
58. A few words on payment I Thought Long and Hard
(cc)BrianHillegas
59. A few words on payment And it was tempting to go visionary
Disney electronic wristbandMobile (NFC) wallets Implants
(Barcelona) FUTURELAB
60. A few words on payment And it was tempting to go visionary
FUTURELAB Points on Kindle, tomorrow?? Alternative currency Pay
with sweat More airmiles than dollars? 1/3 of coffees purchased Its
money Jim, but not as we know it
61. A few words on payment But pragmatism rules Offer every
payment option Lithuanian customers desire. Belgium 1. Credit card
2. Online bank transfer Germany 1. Invoice & pay afterwards
(58%) 2. Credit Cards (34%) 3. Variety of others United Kingdom 1.
Credit card (40%) 2. Debit card (35%) 3. Paypal (21%)ONLINE
(cc)FrankBlais FUTURELAB
62. Two questions to ask yourself How can I simplify?
FUTURELAB
63. Two questions to ask yourself Who owns the customer? other
locations ?? FUTURELAB
64. PART ONE Key shopper trends and how they affect retail PART
TWO How to prepare for the changing retail reality. PART THREE A
few words on payment Demographics Technology Mindset Ensure the
basics Complete & relevant experiences Focus technology on the
customer Offer what your customers seek Always try to simplify Make
sure you keep owning your customers FUTURELAB