Retail is undoubtedly reverting to “under construction”. Customer’s expectations are changing, malls and shops are closing down, others are opening up and doing better than ever. Many brands are investing in customer experience, shaping them into something unforgettable for their store visitors.
How should stores navigate all the trends? How can they ensure customer’s come back for more?
This Snapshot explores the current state of retail, where it is going, customers’ expectations and best practices along the customer journey followed by implications for retailers.
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2018: The Year Of Brick-and-Click
1. UNDERSTAND TODAY. SHAPE TOMORROW.
WHAT TO DO TO WIN
CUSTOMERS IN RETAIL
2018: THE YEAR
OF BRICK & CLICK
1
the latest installment of our: Snapshot Series
LHBS // 2018: THE YEAR OF BRICK & CLICK
2. ABOUT.
At LHBS, we believe in continuously observing and learning from
what’s happing in the market.
We’ve created our Snapshot Series to provide insights on platforms,
industries and companies. Using best practice examples, we explore,
analyze and share how businesses are adapting to new trends.
Moving from insightful data to best practices to inspiring thought
starters for brands, Snapshots can be a guide to bring meaningful
innovations to life in different areas of business.
This issue explores retail trends and customer’s expectations along
the customer journey, followed by best practices for each step.
We hope you enjoy this deck and find inspiration for your innovation
process.
UNDERSTAND TODAY. SHAPE TOMORROW. 2
Discover Define Develop Deliver
UNDERSTAND TODAY. SHAPE TOMORROW.
LHBS // 2018: THE YEAR OF BRICK & CLICK
3. UNDERSTAND TODAY. SHAPE TOMORROW.
INTRODU
CTION.
Retail is undoubtedly reverting to “under construction”. Customer’s
expectations are changing, malls and shops are closing down, others
are opening up and doing better than ever. Many brands are investing
in customer experience, shaping them into something unforgettable
for their store visitors.
How should stores navigate all the trends? How can they ensure
customer’s come back for more?
This Snapshot explores the current state of retail, where it is going,
customers’ expectations and best practices along the customer
journey followed by implications for retailers.
LHBS is a marketing & innovation firm with offices in Berlin and
Copenhagen. We help clients to understand today's emerging
customer expectations and to shape their business offerings for
tomorrow.
http://www.lhbs.com
Fabiola Lewandowska
Strategy Consultant at LHBS
lhbs.com | fl@lhbs.com
INTRODUCTION
3
LHBS // 2018: THE YEAR OF BRICK & CLICK
4. CONTENT.
UNDERSTAND TODAY. SHAPE TOMORROW.
Chapter 2
WHAT IS
HAPPENING
IN RETAIL?
Chapter 3
HOW IS THE RETAIL
CUSTOMER JOURNEY
CHANGING?
Chapter 1
CONTENT
4
LHBS // 2018: THE YEAR OF BRICK & CLICK
WHAT SHOULD
RETAILERS DO
ABOUT IT?
6. UNDERSTAND TODAY. SHAPE TOMORROW. 6
WHAT EVERYBODY
THINKS IS HAPPENING
WITH RETAIL…
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
7. By 2022,
analysts estimate,
that…
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 7Source: Time
1
out of
4
malls in the U.S.
could be out of
business
8. “Young customers look at classic malls
in an antiquated way.
They see it as: that was my parents’
thing, and it’s not my thing.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 8Source: Time
9. Just a few brands who closed most
of their US shops in 2017
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 9Source: USA TODAY
10. The internet has taken away many
of consumers’ reasons for visiting
physical stores in the first place.
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 10
11. UNDERSTAND TODAY. SHAPE TOMORROW. 11
WHAT DOES IT MEAN?
IS RETAIL A THING
OF THE PAST?
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
12. UNDERSTAND TODAY. SHAPE TOMORROW. 12
…OF COURSE NOT, NOW
LET’S TAKE A CLOSER
LOOK AT WHAT’S
REALLY HAPPENING
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
13. RETAIL IS “UNDER CONSTRUCTION”
“The retail industry will change
more in the next 10 years
than they have over the past 40.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 13Source: Accenture
14. “Online-first businesses such as Shoes of Prey, Warby
Parker, Birchbox and Amazon have opened physical
locations for the majority of customers who like to
touch, feel and try on products before proceeding
with a purchase.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 14Source: Entrepreneur
15. “Online retailer Bonobos has a chain of 21
‘Guideshops’ that don’t carry inventory for purchase.
Instead, customers can walk in or make a fitting
appointment, then have their merchandise delivered
to their home or office.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 15Source: Entrepreneur
16. “The National Retail Federation reported a
3,6% growth in retail sales in 2016
and they were expecting more growth in 2017.
Most successful retailers: ZARA, T.J. MAXX, Dollar
General, Sephora, Walmart.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 16Source: Time
17. “Digital wave is underway
that could bring a cumulative
US$2.95 trillion in value by 2025
for the retail industry.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 17Source: Accenture
18. UNDERSTAND TODAY. SHAPE TOMORROW. 18
WHAT ARE RETAILERS
DOING NOW TO BE
AHEAD OF THE GAME?
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
19. UNDERSTAND TODAY. SHAPE TOMORROW. 19
LHBS // 2018: THE YEAR OF BRICK & CLICK
Source: Accenture
Using digital to
understand and connect
with consumers
Rapidly adopting game
changing technologies
Testing new business
models
Getting to know the three
must-have capabilities to
thrive over the next
decade
Mastering the traditional levers:
• Cost
• Choice
• Convenience
• Internet of Things
• Autonomous Vehicles/Drones
• AI & Machine Learning
• Robotics
• Digital Traceability
• 3D printing
• AR & VR
• Blockchain
• Sharing Economy - the next
generation rental market
• Personalization economy -
“surprise me” subscriptions
• Replenishment Economy -
automated replenishment
• Services Economy - “do it for
me”
• The partnership mindset
• Last mile delivery
• Advanced data sciences
WHAT IS HAPPENING WITH RETAIL
20. UNDERSTAND TODAY. SHAPE TOMORROW. 20
HOW ARE STORES OF
THE FUTURE GOING TO
LOOK LIKE?
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
21. “We actually don’t call them ‘stores’ anymore—we call
them ‘town squares.’ In these 'town squares,’ aisles will
be ‘avenues’ and trees will provide customers shade from
overhead fluorescents.
The company dreams its flagship stores will become
‘gathering places,’ complete with classes on coding,
music, and photography.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 21Source: The Atlantic
- Apple executive speaking about their store of the future -
22. "Retailers are, very consciously, promoting in-store
‘experiences.’
It’s a reaction to the fact that buying is now something
that can be done anywhere, and that reaction can be
detected in a linguistic shift.”
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 22Source: The Atlantic
23. Shopping malls are now becoming
lifestyle spaces offering:
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
UNDERSTAND TODAY. SHAPE TOMORROW. 23
Concerts
& Events
Learning
Courses
Dining
Experiences
Walkable Hang-out
Spaces for Urban
Feeling
Working and
Living Spaces
24. UNDERSTAND TODAY. SHAPE TOMORROW. 24
WITH THE CHANGING
NATURE OF RETAIL,
THE RETAIL CUSTOMER
JOURNEY IS EVOLVING
AS WELL
LHBS // 2018: THE YEAR OF BRICK & CLICK WHAT IS HAPPENING WITH RETAIL
25. CHAPTER TWO
UNDERSTAND TODAY. SHAPE TOMORROW. 25
HOW IS THE RETAIL CUSTOMER
JOURNEY CHANGING?
LHBS // 2018: THE YEAR OF BRICK & CLICK
26. The retail customer journey
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 26
AWARENESS CHOOSING TRANSACTION DELIVERY AFTER SALES
27. UNDERSTAND TODAY. SHAPE TOMORROW. 27
-1-
AWARENESS
Now, the Internet is the place to get to know products
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGINGLHBS // 2018: THE YEAR OF BRICK & CLICK
28. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
of consumers say digital
makes browsing in-
store easier
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
28
55 %
45 %
45%
Source: Navigating the new digital divide - Deloitte Digital , Capegemini
of electronic product
shoppers said the internet
is important during the
‘awareness’ phase
21 %
79 %
79%
What do retail customers expect?
29. (ONLY)
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 29Source: Capegemini
41%
of shoppers want to be
identified through digital
devices (such as their
mobile phones) when
entering a physical store
30. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
SK-II is Using WeChat
to Get Customers to
Their Stores
By sending out promotions and invitations to
special events directly to their customers on
WeChat, skincare brand SK-II is driving customers
to their physical locations.
Explore the Sign
SK-II is trying to increase sales by pushing its
customers offline and into stores. To achieve their
goal they’ve begun hosting in-store events such as
free “perfect PITERA” treatments where customers
can get skin tests and beauty consultations. By
sending out invites to their events directly on
WeChat to their many followers, SK-II hopes to
convert their sizeable online presence into sales.
30
LHBS // 2018: THE YEAR OF BRICK & CLICK
31. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
The Holiday Mall-Bot
This holiday season sees a new Mall of America
chatbot being offered to shoppers for an easier
day out at the mall.
Explore the Sign
The Mall of America’s newest chatbot aims to make
people’s holiday trip to the shops easier, smoother
and more personalized. The chatbot has been made
available on the Mall’s website, mobile app, Facebook
page and on Amazon Alexa as a skill (developed with
Satisfi Labs), and enables users to ask questions
before they arrive. It can be used whilst in the store
for directions, specific offers at stores, gift ideas and
event information.
31
32. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Nike’s Flagship Store Of
The Future
Nike’s newly planned flagship store for NYC will
be all about innovations for products and services,
and data-driven assortments.
Explore the Sign
The sports retailer is planning a new flagship store in
New York City.
The flagship will host Hyperlive, Nike’s small-format
retail concept. It is the concept behind the curated
local assortment, inspired by the sporting trends of
the city. New services include speed lockers for
pick-up and returns and a sneaker bar offering
style advice. The last floor will be exclusive to
NikePlus members. It includes a personal shopping
appointment with a Nike Expert who advises on the
products that best meet the athlete’s training goals.
32
33. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Zalando's Gift Shopping
Voice Assistant
Zalando have launched their trial solution to
buying clothes as gifts with a voice assistant from
Google.
Explore the Sign
Clothing retailer Zalando teamed up with Google to
develop a gift finder which is controlled by voice. It
begins with more broad questions, and then asks
clarifying questions. Suggestions can then be
delivered directly to the customer’s device.
The speaker is to be placed in store, which reflects
their acknowledgment that they “must be where the
customer is” - Nicolas Borg, Head of strategic
development at Zalando. This is being treated as a
trial, and so they can observe how customers interact
with this technology.
33
34. UNDERSTAND TODAY. SHAPE TOMORROW. 34
-2-
CHOOSING
Customers pay attention to price and product specs, and often come prepared to
the store from online research
They don’t mind using digital in-store, so long as its beneficial for them
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGINGLHBS // 2018: THE YEAR OF BRICK & CLICK
35. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Shoppers who frequently
research products online,
then purchase in store
(68% vice versa)
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
35
9 %
91 %
91%
Source: InReality
LHBS // 2018: THE YEAR OF BRICK & CLICK
36. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
of shoppers would be
willing to share their
online shopping carts
with in-store employees
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
36
41 %
59 %
59%
Source: TimeTrade / Entrepreneur
LHBS // 2018: THE YEAR OF BRICK & CLICK
37. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
In-store displays that go
unnoticed by shoppers
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
37
12 %
88 %
88%
Source: POPAI
LHBS // 2018: THE YEAR OF BRICK & CLICK
38. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
of shoppers would like to
use a mobile app to
support in-store shopping
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
38
56 %
44 %
44%
Source: Capegemini
LHBS // 2018: THE YEAR OF BRICK & CLICK
39. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
IKEA In-Store Shopping
Companion
The home furnishings retailer built in-store app to
ensure that digitally savvy customers can bring
along their tablet or mobile devices while
shopping for inventory in its bricks-and-mortar
locations.
Explore the Sign
IKEA Canada is improving the shopping experience
by helping its customers to create lists, check off
collected items and find product locations from their
mobile devices. It caters towards the time-strapped
consumers that demand efficiency and an easy way
to access current offers, in-store maps, item
locations and stock availability. “The new IKEA Store
App will bring IKEA’s retail space alive,” said Tanya
Bevington, corporate communications manager at
IKEA Canada.
39
40. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Target’s In-Store Tech
Upgrades
In time for the holiday season, Target have
introduced a new app for store staff, quicker self-
checkouts, faster WiFi and bug-fixing back-end
bots.
Explore the Sign
Target’s investments in their in-store technology is all
with the goal to make the customer shopping
experience seamless.
They introduced a new app to help customers find
and buy products online that they can’t find in-
store, on the spot on their portable devices called
“myCheckout.”
They also upgraded the systems of their self-
service checkouts and doubled the speed of their
in-store WiFi for customers.
40
41. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Tech-Enabled Fashion
Store
Reformation, a fashion brand, is redesigning its
store inspired by brands from Silicon Valley like
Apple and Tesla.
Explore the Sign
The new Reformation store will offer its customers
an efficient experience by digitalizing the shopping
atmosphere with touchscreen monitors and smart
dressing rooms.
The best-selling pieces are installed in the front and
center of the store while touchscreens let
customers explore the looks they like and select
them to be delivered to a dressing room. In the
room customers can request additional sizes, colors
and styles and choose the lighting and music to their
own taste.
41
42. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Nordstrom’s New Store
Has No Merchandise
This new retail concept by Nordstrom stocks no
merchandise, instead offering services and
experiences.
Explore the Sign
Named the “Nordstrom Local,” the store’s new
concept is to offer only services, advice and
experiences rather than aiming to sell products. This
includes nail beauty counters, tailoring, style advice
and even a bar. Visitors are able to try items on, but
can only order them online. They are able to pick up
deliveries later the same day at the location, but no
merchandise will be stocked on the premises.
Employees at the “Nordstrom Local” also help
customers discover their style by creating
personalized, digital boards of recommendations.
42
43. UNDERSTAND TODAY. SHAPE TOMORROW. 43
-3-
TRANSACTION
In-store technology can make a difference
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGINGLHBS // 2018: THE YEAR OF BRICK & CLICK
44. LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 44Source: Capegemini
OPPORTUNITY:
Many shoppers browse and search
online but decide on buying the
products only after seeing or trying
them on
45. ‘Shoppers want in-store technology that
can help them find products, track
spending and pay for products.’
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 45
46. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Shoppers that want to
use a mobile application
to pay for in-store
products rather than a
register
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
46
57 %
43 %
43%
Source: Capegemini
47. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
of consumers say e-
commerce apps help them
save time at the store
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
47
46 %
54 %
54%
Source: BI Intelligence
BUT
49 % 51 %
51%
they make only half of their
purchases in apps
48. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
A Pop-Up Of Co-
Creation And Tech
Calvin Klein partner with Amazon Fashion for a
series of pop-up shops with technology and
customization at the core.
Explore the Sign
For a next level shopping experience, Calvin Klein
teamed up with Amazon Fashion to set up tech-
enabled pop-up stores. Visitors are able to either
purchase items in the store or simply scan the item
bar codes using the Amazon App to have them
delivered to their homes.
Within the stores, there are also customization
stations where customers are able to have products
embroidered with personalized designs. They also
have spaces for content creation encouraging
shoppers to create their own social media clips.
48
49. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Facial Recognition
Payment Café
Alibaba opened a concept café where customers
can pay by facial recognition, meaning no queuing
for the cashier.
Explore the Sign
When a customer requests their order at Alibaba’s
new café, instead of then queuing to pay, their face is
simply scanned by the screen at the counter or as
they walk through a one-meter long scanner, and the
price of their purchase is instantly deducted from
their Alipay account.
Clerks still prepare the food and drinks, but payment
is done completed digitally. Other features of the
store include a screen where visitors can select
products, and they appear immediately on their
mobile in virtual “baskets.”
49
50. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Lush Now Accept
Bitcoin
Cosmetics retailer Lush have begun accepting
Bitcoin payments to enable global growth and
fairness to customers in all countries.
Explore the Sign
Lush, a cosmetics retailer begun accepting bitcoin as
a form of payment in their online store. Bitcoin is
unaffected by global foreign exchange fluctuations,
and so everyone ends up paying the exact same
amount for their products, no matter which country
they’re in.
They also hope the use of a decentralized, global
currency will open up more opportunities, for
example, reaching a global market, connecting with
global suppliers and collaborating with rural charity
groups in need of support.
50
51. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
China’s Store Of The
Future
A startup in China has beaten Amazon to the
punch and premiered a staffless convenience
store.
Explore the Sign
Bingobox is a Chinese startup who has recently
opened their second staffless convenience store.
After a few months of testing in a smaller city, their
new store is located in Shanghai and is causing a stir.
The store works by partnering with WeChat to
identify customers as they enter and helping them
pay directly on the app on the way out.
51
52. UNDERSTAND TODAY. SHAPE TOMORROW. 52
-3-
DELIVERY
Customers want to have flexibility with the delivery method and full access to the
progress of the delivery
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGINGLHBS // 2018: THE YEAR OF BRICK & CLICK
53. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Shoppers who think
smartphones are
important to follow
product delivery
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
53
58 %
42 %
42%
Source: Capegemini
54. “Shoppers have grown fond of having
the city at their fingertips.”
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 54Source: McKinsey
55. “ As same-day delivery stands to
outgrow instant delivery by ten to one, it
could unlock an opportunity worth more
than $200 billion for retailers
in Europe and North America over the
next decade.”
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 55Source: McKinsey
56. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
#UniqloToGo
Uniqlo clothing brand is launching vending
machine concepts across airports and malls.
Explore the Sign
Uniqlo has unveiled the first Uniqlo To Go vending
machine in Oakland airport with plans to roll them
out across other airports and malls in the US.
The vending machines are designed to offer
customers an "on-demand experience" of Uniqlo's
basics clothing line.
56
57. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Walmart Installs Giant
Vending Machine
Walmart installed a giant vending machine to
make it easier for customers to pick up online
grocery orders.
Explore the Sign
Walmart is testing the self-service kiosk in the
parking lot of a shopping centre.
Customers purchase and pay for the groceries
online, Walmart employees store the order in bins
in the kiosk for customers to pick up without
interacting with employees.
To receive the order, customers need to type in a
code and the groceries appear within a minute. The
service entails no fees but minimum oder lies at $30.
57
58. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Target Test A Drive-
Thru Store
Picking up orders in Minneapolis just got easier
with Target’s “Drive Up” store.
Explore the Sign
For those who dislike walking around a store just for
the convenience of not having to wait for purchases
to be delivered, Target’s new store could be the
answer. They’re testing a new store in Minneapolis
where online shoppers can select and buy what
they want after selecting the “Drive Up” option
within the Target app, and then hit the “I’m on My
Way” button.
Store employees will then get the order together
ready for collection and customers can simply drive
through the store to pick up their order. No waiting
times and no leaving the car.
58
59. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Drone Delivery For
Rural China
JD.com, one of China’s biggest online retailers, will
build 185 drone airports to ensure e-commerce
delivery to rural areas.
Explore the Sign
The drone deliveries will work two ways. They will
bring products to rural southwest China as well as
help distribute rural products, hoping to deliver
agricultural products from Sichuan to anywhere in
China within 24 hours, cutting some costs by 70%.
The new airports are the retailer’s push into the huge
rural Chinese market which is twice the size of the
United States.
59
60. UNDERSTAND TODAY. SHAPE TOMORROW. 60
-3-
AFTER SALES
Customers expect multi-channel availability of support with whatever query they
might need answered
HOW IS THE RETAIL CUSTOMER JOURNEY CHANGINGLHBS // 2018: THE YEAR OF BRICK & CLICK
61. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Shoppers who want to be
able to easily return
products using digital
channels regardless of
where the product is
purchased
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
61
50 % 50 %
50%
Source: Capegemini
62. LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 62Source: Capegemini
The majority of shoppers said that
the website is very important for
the after sales care
63. 55 %
45 %
UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Customers who would
take their business to a
competitor within a week
of experiencing poor
customer service
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
63
21 %
79 %
79%
Source: Access
64. “In a KPMG survey,
half of the loyalty customers polled
said they would do ‘almost anything’ to
earn more rewards in at least one
program.”
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UNDERSTAND TODAY. SHAPE TOMORROW. 64Source: KMPG
65. “The average Amazon Prime member
spends nearly 5x more
than a non-Prime member.”
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
UNDERSTAND TODAY. SHAPE TOMORROW. 65Source: Business Insider
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LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Zalando Introduces
Loyalty Program
Zalando Zet
Zalando is launching an Amazon Prime-like paid
membership program named as Zalando Zet.
Explore the Sign
The program Zalando Zet will be run by invite-only.
“Customer will get benefits along the customer
journey such as early access to sales, and can
contact stylists and experts via telephone or
Facebook chat to answer fashion related questions,”
Zalando said in a press release. “Members further
benefit from faster delivery, including same-day,
dedicated customer service, and the new return-
on-demand service, which enables customers to
have their returns picked up within two hours at a
time and location of their convenience.”
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67. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Sephora’s New
Community Forum
Cosmetics brand Sephora has launched the Beauty
Insider Community forums for chatting about all
things beauty.
Explore the Sign
Sephora have recently launched what people are
calling their own Reddit, it’s a platform of forums for
“Beauty Insiders” (who they call subscribers to their
loyalty program) to connect and discuss everything
related to hair, make-up and fashion.
There’s also a gallery page, where customers can
post photos of their favorite beauty looks with step
by steps of how others can recreate the look. They
also include links to the products available to buy at
Sephora, with reviews, and other users can leave
comments and questions.
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68. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Estée Lauder’s CRM
Services Accessible Via
WeChat
Estée Lauder made it easy for fans to engage with
the brand by offering various customer-centered
services via WeChat.
Explore the Sign
Estée Lauder offered various services via their
WeChat channel, such as easy enrollment to their
loyalty program, receiving personalized beauty
solutions and even a system for scheduling in-
store appointments to integrate the customer’s
experience. There is also an interactive game which
gives users the opportunity to win brand products.
WeChat gave Estée Lauder the possibility to
communicate individually with customers with
personalized content.
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LHBS // 2018: THE YEAR OF BRICK & CLICK HOW IS THE RETAIL CUSTOMER JOURNEY CHANGING
Return Items Happily
Happy Returns is the new business making returns
of online purchases easier, and has set up shop in
Los Angeles.
Explore the Sign
Happy Returns is a network of return locations for
items people have purchased online, and who don’t
wish to travel to a post office to post them back. They
simply drop off the items at the “Happy Bars” with
the workers here, named the “Returnistas,” and go
about their day.
The Happy Bars accept items from participating
retailers, and are in convenient locations such as
malls. The process is very consumer-friendly, and the
Returnistas have a dedicated app with which they
can connect to the backend of the participating
retailer, pull up the customer’s previous orders and
receive all necessary information.
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70. CHAPTER THREE
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WHAT SHOULD RETAILERS
DO ABOUT IT?
LHBS // 2018: THE YEAR OF BRICK & CLICK
71. UNDERSTAND TODAY. SHAPE TOMORROW. 71
ONE
Customers today are very well informed and savvy - always
ready to utilize multiple resources to find better products,
options and prices.
Consistency across channels is key.
Retailers should continuously make sure that they are
presenting themselves and their products and prices
consistently across channels, not to leave their customers with a
need to search further or create opportunities for them to leave.
WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK
72. UNDERSTAND TODAY. SHAPE TOMORROW. 72
TWO
Customers today are likely to buy from the store if they’ve had
the chance to use digital when browsing and looking for things.
In-store shopping should have digital at it’s core.
With customers having unlimited shopping options now,
retailers should make their shops more experiential. Offering
the entire end-to-end journey together with ‘sampling’
opportunities of products creates an unforgettable brand
experience.
WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK
73. UNDERSTAND TODAY. SHAPE TOMORROW. 73
THREE
Mobile shopping may soon have the greatest impact on retail
experiences.
Embrace mobile shopping as part of the retail experience in store.
Retailers should come up with ways of how to use mobile shopping
for their benefit. They should utilize it to tap into the shopping
journey at critical purchase decision points, capturing every
opportunity to offer options best fitting to the individual,
ultimately increasing profits through a better customer
experience.
WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK
74. UNDERSTAND TODAY. SHAPE TOMORROW. 74
FOUR
Most customers still enjoy touching, experiencing and trying on
products before deciding to buy them.
Re-model shopping to a full and immersive experience that will
keep your customers entertained and curious for more.
Retailers should focus on what e-commerce cannot give to the
buyers and turn it into something spectacular; for example human
interaction with knowledgable and dedicated staff as well as
other shoppers. Take care not to leave customers feeling guilty
when they choose not to buy.
WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK
75. UNDERSTAND TODAY. SHAPE TOMORROW. 75
FIVE
Customers expect easy and reachable after-sales channels with
qualified and knowledgable staff.
The journey does not stop at transaction. After-care is now
one of the key steps in the customer journey.
Retailers should invest their efforts into providing a great
experience even after the sale is done. Having any subsequent
issues or queries dealt with by a knowledgable and dependable
contact will enhance your credibility and trustworthiness,
ensuring customers will return for more.
WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK
76. UNDERSTAND TODAY. SHAPE TOMORROW. 76
SIX
Retailers understanding and anticipating their customer’s needs
and also having a clear view on their own business vision,
purpose and capabilities can create great experiences for the
customers.
Know your customer and know yourself.
The great customer experience is made at the intersection of
what retailers know about their customers and what is their
true competence.
77. UNDERSTAND TODAY. SHAPE TOMORROW.
Discover
ABOUT.
Define Develop Deliver
LHBS is a marketing & innovation firm with offices in Berlin &
Copenhagen. We work with legacy organizations to adapt their
customer value proposition to meet emerging customer
expectations. Together with our clients we discover business
opportunities and deliver integrated customer offers for products,
services, experiences and communication.
http://www.lhbs.com
ABOUT
UNDERSTAND TODAY. SHAPE TOMORROW. 77
DISCOVER DEFINE DEVELOP DELIVER
UNDERSTAND TODAY. SHAPE TOMORROW.
LHBS // 2018: THE YEAR OF BRICK & CLICK
78. LHBS Put the Title of the Report here
HUB.
UNDERSTAND TODAY. SHAPE TOMORROW.
This report has been created with the help of signmesh.
signmesh innovation hub is a tailored dashboard of curated insights and
business cases to keep your company ahead of the learning curve and
inspire ongoing innovation.
signmesh.com
SIGNMESH
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