Naba Banerjee, Product at Samsclub.com leads a session retail and ecommerce product-led transformation

1. Digital Transformation
through the Product Mindset
Nabarupa Banerjee Sams Club (Walmart)
1

2. The Biggest Little Startup
Within Wal-Mart

3. We are the pioneers of Multi Channel Innovation
2017 IRT Retailer
Innovation Awards

4. We innovate and transform @ Billion $$$ Scale

5. 5
How do we do this?

6. By Moving from the IT Mindset to the Product Mindset
IT MINDSET PRODUCT MINDSET
Exists to serve the perceived needs of the
business
Exists to serve the needs of the customers
Requirements based on opinions Data driven requirements based on product
discovery
Prioritization done on first come first serve
basis or to temper internal agendas
Prioritization tied back to key customer metrics
Functional silos Cross functional teams and shared goals
Teams focused on “shipping” projects Teams focused on driving results
Team moves on to next project leaving no time
to iterate based on learnings
Team iterates on their work based on qualitative
and quantitative learnings

7. 7
1. What are the real people problems we are
trying to solve?
2. How will we know that we have solved the
problems?
3. How will we test, learn and iterate to
improve?
The Product Mindset – The three most important questions to ask…
Problem Outcome Results Test/Iterate

8. 8
What were some of our real
people problems?

9. 9
Problems Our Customers Articulated Hypothesis
They don’t like standing in checkout lines
Our customer are busy and don’t have the time to
stand in long lines for checkout every time they
shop
They do not like finding their favorite items
out of stock
Customers like the option of being able to order
items online if unavailable in store and have it
shipped to them later
They don’t see the value of membership
Customers are unable to discover all the great
values, products and services available at their
local store by themselves
Our business from our customer’s lens

10. Problem 1: Top customer pain points revolved around the time they
spent in checkout
10
“The lines for checkout were
too long and not enough
cashiers to check people out.”
“..Took twice as long to
checkout than to collect my
items”
“My only complaint is
the exit. Lines are way
too long”
On average, customers spent 12 minutes waiting in line
30% more transactions on weekends = 30% more waiting time
Problem#1 Outcome Results Test/Iterate
Biggest Negative Impact on NPS

11. Solution:
Scan & Go

12. Problem#1 Outcome Results Test/Iterate
We eliminated checkout lines through digital transformation…

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App Rating - iOS App Rating - Android
Opinion lab feedback: 95%+ positive; NPS score: 90
Scan & Go helps members save time by skipping checkout lines. And they
love it!
“This app is the Bomb! Fast and easy! Wish I
could give it 6 stars“
“I'm out the door...no waiting. Costco doesn't
have anything on this one”
“Walking past lines on a holiday
weekend makes me feel so good”
“Life saver for people who have children with
disabilities! We will never shop any other way”
Rating and Reviews
85% of customers keep coming back
50% of customers absolutely new to our digital platform
Problem#1 Outcome Results Test/Iterate
Feb’16 Sep’17
..leading to increase in acquisition, retention, sales & NPS
Scan & Go Adoption Sales

14. 14
 Reduced fraud risks
 Implemented guest checkout to
eliminate login friction
 Implemented a robust platform
Problem#1 Outcome Results Test/Iterate
We learnt from the data and iterated a few versions

15. 15
Problem#2 Outcome Results Test/Iterate
Problem 2: Customers do not like finding their favorite
items out of stock
“The store has few signs or a listing of where
products are located so it is very hard to find
the product you are looking for”
“I couldn’t find the items I buy
frequently“
“Online , it said there were 6 available.
There were none on the shelves”
Our customers had a disrupted shopping
experience due to out of stock items
1 in 4 customers couldn’t find an item for
their basket
NPS for in stock merchandise 10 pts lower
than overall shopping NPS

16. Solution:
Endless Aisle Kiosks

17. Initial in bay kiosk and marketing
Learning Impact
Discoverability Not enough associate/customer
engagement
Proactive
Monitoring
Associates could not
troubleshoot when kiosk went
down.
Ease of Use Customer confusion and
reduced sessions
Multi-functionality Customer expectation mismatch
Associate
This a powerful sales tool for my
club to increase our dotcom sales
This is so easy, my
grandmother could use it!
I didn’t know
Samsclub.com had all
of this
Customer
Problem#2 Outcome Results Test/Iterate
Original customer problem not solved although we got an
opportunity to learn more

18. New stand with interchangeable
marketing slots and small footprint
Metrics Stats
Weekly sessions Goal: 100
Actual : 138
Conversion Goal: 0.5%
Actual: 0.15%
% of cost made up
from pilot
8%
Items typically
bought from kiosk
Mattresses, Playsets, Living room
sets
Problem#2 Outcome Results Test/Iterate
We measured the performance of the kiosks nevertheless to
understand customer behavior

19. Pallet jack opening
hidden in base
Optimized scanning guide
Version N: Search accessed all categories on
Samsclub.com and is present on all pages
Easy navigation to specific categories
Ratings and reviews prominent
and clickable on product page
Health check dashboard provides sortable,
exportable, data on the health of each kiosk at chain
Conclusion: Product-Market fit
not achieved
Problem#2 Outcome Results Test/Iterate
We tested versions based on interaction data and usability studies
N1
N2
N3
N4
N5

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“This does not seem like a fun place to shop.”
“..I don’t think this is a fit for me”
“How do I know I am getting a good
deal?”
“I didn’t go to the club enough”
Traits of our lapsed customers
Do not buy fresh
Buy fewer categories initially
Low awareness of key offerings
Problem#3 Outcome Results Test/Iterate
Problem #3- People don’t see the value of membership

21. Solution:
New Member
Treasure Hunt

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Associate hands out the flyer,
talks about the program
Member visits
samsclub.com/play,
enters email
New member signing up
@ Membership desk
Member choose
desired coupons which
get loaded to the
account
Member plays New
Member Treasure Hunt
and explores the club
Member scans
membership card
Online account created.
Instant Savings eligible.
Member gets welcome
email
IS gets applied
during check-out
during first visit
Problem#3 Outcome Results Test/Iterate
Combining Behavior Science and Gamification to help
members discover value

23. • NMTH members shopped in more unique categories
• NMTH members shopped more often
• Higher % of NMTH members shopped in their 1st visit
• Higher% of them made at least a repeat purchase
• Higher 1st visit penetration in select categories
HighlevelgoalsAddl.goals
• NMTH members spend lower than control but higher overall
… Statistically
significant
Statistically
significant
Statistically
significant
Statistically
significant
Problem#3 Outcome Results Test/Iterate
The program has moved the needle on most leading
indicators of renewal
All metrics compared to control

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Problem#3 Outcome Results Test/Iterate
We used lean methodology to run numerous experiments to create
a highly optimized member experience…

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• We can now operate faster with greater impact and improved
technology ROI
• We’re taking a product mindset from digital to the in-club experience
• We’ve had success with .com, mobile, Scan and Go, and some aspects
of the in-club membership experience
• We will build on that success, extending to a whole new membership
experience, simplified returns, and more to come…
In Conclusion…By leveraging the product mindset…