The relevance of Stores for Digital Shoppers

The relevance of

Stores for

Digital Shoppers

Kees Jacobs

September 2014

2 © 2013 Capgemini. All rights reserved.

All-Channel Experience | 2014

Consumers increasingly weave in and out of multiple channels, including stores, during the “All-Channel Shopping Journey”

Source: Capgemini Digital Shopper Relevancy Study, 2012;

Personal

ConvenientRelevant

Engaging

Flexible

Value for Money

Rewarding

Novel

Innovative

Exciting

Caring Trusting

Moments of Truth

Shoppers are no longer loyal to an individual channel

but rather to an experience across all channels



It‟s important to follow your customer‟s voice

56% of companies

described themselves as customer centric. Only

12% of their customers

agreed



Access Experience Price Product Service

Friendly and clean

store Easy to reach stores

Easy to navigate

stores Compelling

promotions Freshness/ Quality

Maximum opening

hours

Availability

(no stock-outs)

No damaged goods

in store

Inspirational

Atmosphere

Customer Service

Complaints

handling /

return policy

Loyalty program

Wide and deep

assortment

Competitive pricing

Traditional

Relevancy

Criteria for

Physical Channels

Dynamic Pricing

Mobile in-store

Shopping support

Advanced /

visualized product

information and

(usage) advice

Product

Comparison

e-Commerce

(mobile, social,

web)

Flexible delivery-

options ( home,

store-pick-up etc.)

Personalized

Pricing

Additional

Relevancy

Criteria for

Digital Channels

Personalized offers

Technology-

enabled staff –

support in-store

Interactive service

via digital channels

(e.g. click-to-chat,

social media)

Wider and deeper

assortment

Solution Pricing

Inspirational

Content

Community

engagements

(share

experiences)

Social Shopping

Location-based

pricing

Price

Comparison

Illustrative

Digital Shopper Relevancy is about understanding shopper needs

and perceptions across 5 Key Attributes



How Can You Be Most Relevant to Digital Shoppers?

Successful companies dominate on one attribute, differentiate on a second and compete

at parity on the remaining three

4

3 3

5

3

Access Experience Price Product Service

2. Differentiate on a compatible

value attribute

3. Maintain parity on others

1. Dominate on one value attribute

Illustrative



But: what is relevant for your Digital Shoppers ?

technology-enabled consumers

shopping journey

18 countries*18,000 consumers

foo

d

fashionall-channel experience

health & personal care

DIY

ele

ctr

on

ics

digital channels

tab

lets

smartphones

kio

sks

e-commerce

social media

access

experience

pric

e

product

serv

ice

appsweb

Canada

USA

Mexico

Brazil

Sweden Finland

China

India

Australia

RussiaGermanyFrance

Italy

UK

Spain

Portugal

Japan

Netherlands



There is no „one‟ digital shopper

Reluctant Digital Shopper (11%)

Not comfortable using technology; prefer

physical stores

Value-Conscious Digital Shopper (29%)

Prefer in-store shopping, but comfortable

using the Internet & email

Socially-Engaged Digital Shopper (41%)

Heavy users of digital technologies and

comfortable using Social Media

True Digital Shopper (19%)

Purchases online most frequently, use

apps, sacrifice personal data for

customized deals.

We found 4 distinct behaviour patterns in mature markets



Sweden is in the middle-group in terms of „digital shopper savvyness‟



Most important 2nd most

important

3rd most

important4th most important 5th most important

6th most

importantLeast important

Australia Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Canada Traditional store Internet site Email In-store technology Social media Smartphones Phone – call center

Finland Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

France Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Germany Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Italy Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Japan Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

Netherlands Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Portugal Internet site Email Traditional store In-store technology Social media Smartphones Phone – call center

Spain Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Sweden Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

UK Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

USA Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Brazil Internet site Traditional store In-store technology Email Social media Smartphone Phone – call center

China Internet site Traditional store Smartphones In-store technology Email Social media Phone – call center

India Internet site Smartphones Email In-store technology Social media Traditional store Phone – call center

Mexico Internet site Traditional store In-store technology Social media Email Smartphone Phone – call center

Russia Internet site Traditional store In-store technology Email Social media Smartphones Phone – call center

Total Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

In the early phases of the shopping journey, internet has surpassed

stores as preferred channel

Importance of different channels to learn about products and promotions :



Nevertheless, physical stores still reign – for now

However, in the future, the majority

of shoppers (51 percent) say they

will spend more money online than

in-store.

In addition to the smartphone‟s

ubiquitous growth, in-store digital

interactions (eg via kiosks) are

popular amongst shoppers,

suggesting that the introduction of

more technology into retail stores

would be a welcome shift for the

consumer.

Store is still the favored destination; 72% of shoppers saw the store as important or very

important compared to 67% for the Internet

Only 14 per cent of shoppers strongly indicate that physical stores have become less important

for them.

The relevance of the physical store in the purchase and payiment of a product

11 Copyright © Capgemini 2014. All Rights Reserved

ClientAssist | 2014

How should stores anticipate digital shopper behaviours ?


ClientAssist | 2014

For example via Clienteling: merging in-store and digital customer engagement

CLIENTELING (N)

- A CAPABILITY TO MANAGE PERSONAL

CUSTOMER ENGAGEMENT IN A WAY THAT

DRIVES TRAFFIC TO YOUR STORE, PROVIDES AN

EXCEPTIONAL IN-STORE SHOPPING EXPERIENCE

AND KEEPS YOUR CUSTOMERS COMING BACK

FOR MORE.

The store is the best place to work “all senses”

ClientAssist Engage Customers Across Clicks and

Bricks to Improve Sales and Loyalty


ClientAssist | 2014

A new and differentiating approach to Clienteling: ClientAssist

Cloud-Based

Integration Platform

Mobile Clienteling

Technologies In-Store Single View of Customer

Single View of the Customer

Focus on the Store Via Proven Hothouse Methodology

Actionable

Insights & Campaigns


ClientAssist | 2014

This requires more than „throwing technology into the store‟

Store managers and store staff

feel uncomfortable with digital

tools and perceive it as a threat

Resistance From Stores

to Digital Changes

After the initial push, stores return

to old ways of working

Benefits Disappear After

Initial Focus

Stores do not understand how to

maintain relationships with

customers beyond transactional

interactions

Lack of Customer Focus

Costly new technology-driven

initiatives are continually tested

but in many cases never rolled out

further

Pilots Hardly Make It to

Full Rollout


ClientAssist | 2014

The best way to prove succes is via a Hothouse: a bottom-up change approach that enables direct, small-scale „doing and learning‟

Agile Implementation

(scrum-team iterations)

Piecemeal Scope

(create optimal conditions)

Focus on Quick Results

(managing high impact)

Collaborative Approach

(multiple disciplines

with common focus)

Deep Customer Insights

(contextual understanding)

Regional Scope

(focus on selected customers)

Where the top-down vision and strategy meets the bottom-up change mobilisation

Grow Share of Heart: increase loyalty by truly taking care of customers

Grow Share of Wallet: increase spending of current customers

Grow Share of Market: attract new customers, grow current customers

Showing the tangible business value in real-life !

Mgt.

Central

Ops

Region

Channel

Customer

Traditional Hothouse

The relevance of Stores for

Digital Shoppers

[email protected]

THANK YOU !

Date post:	18-Nov-2014
Category:	Internet
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