Connected Retail

9. © 2014 9 $16 Billion $210 Billion $29 Billion $298 Billion SOURCE: Forrester Research Online Retail Forecast, 2012 to 2016 (US) FOUR YEARS FROM NOW, IN-STORE WILL STILL COMPRISE MORE THAN 90% OF ALL RETAIL SALES

10. © 2014 10 TO MEET THE EVOLVING EXPECTATIONS OF THE OMNICHANNELING CUSTOMER RETAILERS HAVE BEGUN FIGHTING TO RETAIN RELEVANCE Replacing print signage with digital displays Installing self-service check-out Adding price and coupon scanners Offering touch-screen way-finding and registry

14. © 2014 14 CONNECTED RETAIL OFFERS RETAILERS THE OPPORTUNITY TO DIGITALLY – ENHANCE THE STORE’S FOUNDATIONAL STRENGTHS ► Immediacy ► Convenience ► Control ► Collaboration ► Sensory Interaction ► Guidance

15. © 2014 15 CONNECTED RETAIL IN-STORE EXPERIENCEVIRTUAL PHYSICAL Fully integrated, digitally enhanced, in- store experiences that engage customers at the intersection of the virtual and physical world.

16. © 2014 16 IN-STORE EXPERIENCE ENVIRONMENT CUSTOMER PRODUCT ASSOCIATE BREAKTHROUGH INNOVATIONS WILL EXPLOIT THE UNIQUE ADVANTAGES OF THE PHYSICAL STORE ENVIRONMENTS that inspire, adapt, curate and evolve in real time PRODUCTS that do more than simply sit on a shelf, but feature augmented packaging and digitally enhanced merchandising that can be activated and viewed through consumer- controlled devices ASSOCIATES who are brand experts, equipped with mobile-based, collaborative tools and access to consumer and inventory information CUSTOMERS who are given free reign to connect to virtual and in-store data that can be mashed, customized and socially shared while still shopping in-store

18. © 2014 18 APPLE HAS A FULLY INTEGRATED CONNECTED ECOSYSTEM Apple orchestrates every aspect of the end-to-end ‘Apple experience’ across every touch point to become the world’s leading retailer (driving sales per square foot over $6,000)

19. © 2014 19 LENS CRAFTERS LEVERAGES CONNECTED PRODUCTS LensCrafters has deployed a “Magic Mirror” that allows customers to scan physical products and see what they might look like on their reflection in the mirror – perfect for customers who can’t see without their original glasses on.

20. © 2014 20 NORDSTROMS WAS SURPRISED BY CONNECTED SHOWROOMING Nordstrom introduced an app in the fall that executives expected people would mostly use remotely to order items while they were watching TV or waiting for a train. But in addition, customers use the app while shopping at Nordstrom rather than approach the sales staff.

21. © 2014 21 ADIDAS HAS CREATED A CONNECTED ENVIRONMENT Adidas recently launched digital product displays that are tightly integrated with physical product displays. This allows on-line only inventory to have a visible place within the store environment.

22. © 2014 22 WAL-MART HAS INTRODUCED A DYNAMICALLY CONTROLLED CONNECTED AISLES Wal-mart has embedded CMS-driven messaging through its in-aisle experiences, which is generating a viewership of 120 to 130 million per month. That’s the fifth highest video viewership behind NBC, ABC, CBS and Fox.

23. © 2014 23 LEGOS LET’S CUSTOMERS SEE THE FINISHED FUN WITH CONNECTED PACKAGING Legos shows kids and parents what the final Lego product in the box they are holding will look like when built. No code required, the system uses image recognition to create a 3D animation around the top of the box that, with gesture recognition, let’s customers carry the model in their hands.

24. © 2014 24 MARKS & SPENCER HAS CREATED CONNECTED EXPERIENCES Marks & Spencer has recently launched a magic mirror fitting room that comes to life when RFID-enabled products are tried on. The fitting room blends digital content and sales associate tools with the physical product and fitting room environment to create a fully-enabled connected experience.

25. © 2014 25 A CONNECTED EXPERIENCE FULFILLS TWO ORGANIZING OBJECTIVES AT THE POINT OF ENGAGEMENT BUSINESS OBJECTIVE What is the business problem we’re trying to solve or the opportunity we’re trying to take advantage of? SHOPPER DESIRE What will motivate shoppers to engage the experience in-store? ENVIRONMENT ASSOCIATE PRODUCT SHOPPER IN-STORE EXPERIENCE

26. © 2014 26 A CONNECTED EXPERIENCE CREATES A REASON TO ENGAGE IN-STORE ENVIRONMENT What will draw the shopper’s attention to the experience within 3 seconds of crossing the threshold? How should it relate to the rest of the in-store environment? How will it remain dynamic and fresh to avoid desensitization? ASSOCIATE What will the role of the Associate be in the experience? What is the experience for the Associate ? PRODUCT How will we enable product interaction? How will shoppers interact with products in-context? How will in-experience products relate to in-store inventory? Where/when will transactions take place? SHOPPER What is the singular action we want shoppers to take at the end of their experience? What elements of the experience can they retain and share using their personal technology? What will make the experience relevant and memorable after they leave the store? ENVIRONMENT ASSOCIATE PRODUCT SHOPPER IN-STORE EXPERIENCE

27. © 2014 27 IN-STORE EXPERIENCE A CONNECTED EXPERIENCE IS LOCALLY CONNECTED WITHIN THE STORE local ENVIRONMENT How will local messaging be introduced and maintained? ASSOCIATE How will Associates access information about extended SKUs? How will the experience adapt to localized inventory? PRODUCT How will products reflect in- store exclusivity, pricing or shipping options? SHOPPER How will the experience adapt to preferences expressed within other channels? How will shoppers be enabled to share their experience at the point of impulse? How will shoppers be rewarded within the experience? ENVIRONMENT ASSOCIATE PRODUCT SHOPPER IN-STORE EXPERIENCE

28. © 2014 28 A CONNECTED EXPERIENCE CAN BE ACCESSED AND SHARED BEYOND THE STORE ENVIRONMENT What elements of the experience will be standardized across locations? ASSOCIATE How will Associates be supported with a “single view” of the shopper? PRODUCT How will consistency of product information be maintained? SHOPPER How will loyalty be rewarded across all Beyond experiences? How will shoppers be alerted to enhancement and/or changes to the experience? ENVIRONMENT ASSOCIATE PRODUCT SHOPPER IN-STORE EXPERIENCE localglobal

29. © 2014 29 THERE MUST BE A CONNECTING POINT AT THE CENTER OF EVERY IN-STORE EXPERIENCE localglobal account information product information service information promotional messaging social sharing account history local community localized messaging market segmentation registries personal preferences local inventory extended aisles universal SKUs local promotions behavioral targeting loyalty rewards mobile apps ENVIRONMENT ASSOCIATE PRODUCT SHOPPER IN-STORE EXPERIENCE

30. © 2014 30 ► Fundamental consumer behavior hasn’t changed; its just become more enabled ► Expectations are being defined and reshaped by every moment of interaction ► In-store engagement must connect customers to richer, omni directional experiences – that leverage the store’s unique strengths ► Connected Retail is the opportunity to connect consumers to more at the point of virtual and physical engagement CONNECTED RETAIL SOME FINAL THOUGHTS

Connected Retail

CharlesSayers.com

Connected Retail