Store 4.0 Innovation Insights
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Samantha Starmer is a former VP of Global Digital Experiences who is now passionate about creating great customer experiences across channels. She discusses how retail is being disrupted by new technologies like chatbots, voice shopping, augmented reality, and concept stores without staff. However, the physical store is not dead and remains important for discovery and experiences. Store 4.0 requires focusing on five pillars: starting with the customer, staying integrated across channels, breaking out of silos, using technology wisely, and focusing on the customer experience.
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Store 4.0 Innovation Insights
- 1. Innovation for STORE 4.0 Samantha Starmer 6 March, 2018 1 1 Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer
- 2. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer WHO AM I? Formerly VP Global Digital Experiences, Ralph Lauren Also Razorfish, REI, Microsoft, Amazon Masters degree instructor, conference chair, writer and speaker I’m passionate about creating GREAT customer experiences, regardless of screen or device; online or offline. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 2
- 3. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer RETAIL IS DISRUPTED “The magnitude of this disruption is unprecedented; is among a wide array of industry sectors fighting the onslaught. In fact, the retail store of the past may well be dead...” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 3
- 4. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer “Microsoft chief executive Satya Nadella concluded ‘Bots are the new apps’ and will become the primary…channel between businesses and shoppers…Marc Zuckerberg [said] chatbots will replace contact center agents within the next decade.” 4 CHAT BOTS… H&M Nordstrom eBay Burberry
- 5. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer VOICE SHOPPING… “Even an 85-year-old woman can use this voice technology. That’s why there is a very strong likelihood of this becoming the default way to shop. …it is the ultimate convenience because there is zero interface.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5
- 6. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer MOTION RECOMMENDATIONS… “If an employee works in packaging…[they] can sense how many times they have to bend over during their shift and provide them with a list of products that can protect their back.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 6 XOEye Technologies XOEye Technologies
- 7. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer INTERACTIVE MIRRORS… “The interactive fitting rooms help Polo connect, emotionally and digitally, with consumers…and technology and human touch are equal elements of Polo.” http://wwd.com/business-news/retail/gallery/ralph-lauren-oak-labs-debut-interactive-fitting-rooms-10281433 Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 7 Ralph Lauren
- 8. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer INTERACTIVE SHELVING “giving [customers] a visual language to understand the scents they were smelling and identifying complimentary fragrances for exploration. The result is an elegant shopping experience that … is seeing 25% product lift and 16x ROI..” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 14 Jo Malone
- 9. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer INTERNET OF THINGS… 9 “…buy groceries right from the door, and the intelligent part is that it can combine carts from multiple stores…” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer Samsung
- 10. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer AUGMENTED REALITY SHOPPING… 10 “Imagine a future where you can point your phone at a friend’s new outfit with their permission, only for the app to recognise and source that outfit in your size, and give you the option of having it sent straight to your home.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer Ikea
- 11. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer VIRTUAL REALITY SHOPPING… “71% of survey respondents feel that VR makes brands seem "forward-thinking and modern…53% said they'd be more likely to purchase from a brand that uses VR than from one that doesn’t.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 10 Dior
- 12. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer ROBOT SHOPPING… “provides information in real time about products and inventory and…pushes store promotions. It speaks several languages and…can also help with inventory management and allow employees to communicate between stores.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 11 Lowe’s
- 13. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer CONCEPT STORES… “Unlike traditional brick-and-mortar stores, the concept store cultivates an experience that cannot be re-created online.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 12 Samsung
- 14. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer SO MUCH FANCY TECHNOLOGY… “Using a combination of RFID and ultrasound…whichever products you touch and pick up in the store are automatically sent to your app. You have effectively created your in store wish list." Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 13 Farfetch
- 15. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer STORES WITHOUT STAFF (!) “You enter by scanning your phones at a turnstile…inside, hundreds of cameras track your movements, working with in-shelf weight sensors to determine which products you’ve taken and which you’ve only looked at. Then you simply walk out the door.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 15 Amazon
- 16. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer WHAT DOES THIS ALL MEAN? Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 16
- 17. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer THE PHYSICAL STORE IS NOT DEAD “According to the latest U.S. Census data released in August 2017, 90 percent of all retail purchases in America were made in brick-and- mortar locations during the last quarter.” “The process of discovery in a physical store — “Oh, look, here’s the perfect gift for hard-to-buy-for Uncle Bob!” — remains unmatched online. As does an environment in which shoppers are encouraged to interact and enjoy the products just as they would at home.” - PwC Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 17
- 18. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer IT’S MORE IMPORTANT THAN EVER “What is the impetus for taking this step “backwards” into the 20th century? Well, these companies have discovered that even with an (essentially) limitless online catalogue, the experience of browsing their catalogues online doesn’t compare to the act of literally walking down the aisles of a physical store. It is no substitute for the physical discovery process we take for granted.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 18 Amazon (Whole Foods)
- 19. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer STORE 4.0 – All of these. And more. Sephora Levi’s Lowe’s Burberry Uniqlo “While the store of the past may be dead, retailers are already adapting to a new retail ecosystem…a combination of physical, digital, and complementary service offerings …The physical store is a key component of the new retail ecosystem.” Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 19
- 20. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer STORE 4.0 NEEDS TO BE AN ATTITUDE, A WAY OF WORKING… NOT A TECHNOLOGY 20 SO WHAT SHOULD WE DO?
- 21. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5 PILLARS FOR STORE 4.0 1.START WITH THE CUSTOMER 2.STAY INTEGRATED 3.BREAK OUT OF YOUR SILO 4.USE TECHNOLOGY WISELY 5.FOCUS ON THE EXPERIENCE Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 21 These pillars will benefit you regardless of your channel, market, country, size of business or level of digital innovation.
- 22. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 1. START WITH THE CUSTOMER “If there's one reason we have done better than of our peers…it is because we have focused like a laser on customer experience.” - Jeff Bezos “You've got to start with the customer experience and work back toward the technology - not the other way around." – Steve Jobs Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 22
- 23. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 1. START WITH THE CUSTOMER – Do Your Research* Contextual Research Competitive Research Employee Research Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 23 * Not just market research!
- 24. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 1. START WITH THE CUSTOMER – Thoughts & Actions Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 24
- 25. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 1. START WITH THE CUSTOMER – Co-Creation SOME EXAMPLES: LEGO Starbucks IKEA DHL Netflix Made.com Manchester City FC DEWALT Microsoft Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 25
- 26. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 2. STAY INTEGRATED Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 26 Ralph Lauren
- 27. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 3. STAY INTEGRATED – Are all of these connected? Business Planning Fulfillment Call Center Technology Services Store Employees Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 27
- 28. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 3. STAY INTEGRATED – Map journeys and touchpoints Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 28
- 29. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 3. STAY INTEGRATED – Break out of your silo Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 29
- 30. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 4. USE TECHNOLOGY WISELY Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 30 Nike
- 31. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 4. USE TECHNOLOGY WISELY – Support vs Lead Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 31 Sephora
- 32. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 4. USE TECHNOLOGY WISELY – Tell stories Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 32
- 33. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 4. USE TECHNOLOGY WISELY – Prototype, Test, ADJUST Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 33
- 34. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5. FOCUS ON THE EXPERIENCE Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 34 PetSmart
- 35. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5. FOCUS ON THE EXPERIENCE – Examine trouble spots Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 35
- 36. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5. FOCUS ON THE EXPERIENCE – Build a strategy Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 36
- 37. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5. FOCUS ON THE EXPERIENCE – Surprise & Delight Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 37
- 38. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 5 PILLARS OF STORE 4.0 1.START WITH THE CUSTOMER 2.STAY INTEGRATED 3.BREAK OUT OF YOUR SILO 4.USE TECHNOLOGY WISELY 5.FOCUS ON THE EXPERIENCE Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 38
- 39. Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer THANK YOU! Please be in touch! Samantha Starmer – Store 4.0 starmer@gmail.com, @samanthastarmer 39
Editor's Notes
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- We are seeing many examples (some useful, some not) of interactive shopping windows, shelves and other ways for digitally enabled touch commerce.
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- While the ‘internet of things’ still hasn’t fully taken off in the ways futurists have proclaimed for years, products like this Samsung fridge are coming out that allow you to make purchases via the product itself. As they get smarter, they will likely predict your shopping needs and make orders for you.
- Augmented reality is also coming to commerce, with the ability to overlay furniture in our own homes or virtually try on an outfit. Image recognition can allow us to immediately copy our favorite fashionista’s outfit.
- And recently eBay helped to create a fully virtual reality commerce site. I’ve actually tried a few early versions created by others, and it made me seasick, but once we are watching movies and playing video games with our VR googles on, we may not want to leave to do our shopping.
- And roboticized, artificial intelligence commerce is already hear. This is an example from the Lowe’s Innovation lab of a robot sales associate live now at an Orchard Supply Hardware store in California.
- We need to be thinking through the full ecosystem.
- Hi - I’m Samantha and I’ve been in digital with a lot of retail experience since the pretty early days of Amazon. Most recently I was at Ralph Lauren. I’ve been teaching and presenting on customer experience for a long time and I’m incredibly excited about the challenges and opportunities of the Store of the Future – Store 4.0
- We need to be thinking through the full ecosystem.
- And roboticized, artificial intelligence commerce is already hear. This is an example from the Lowe’s Innovation lab of a robot sales associate live now at an Orchard Supply Hardware store in California.
- We need to be thinking through the full ecosystem.
- A number of retailers (Warby Parker, Bonobos, Casper mattresses) who started as online pure plays have now entered the physical shopping space. Physical is not dead. In fact, those of us who have focused on digital need to expand our skills and attention to the physical space.
- I don’t think anyone can argue that not only have the lines between digital and physical have blurred, they have pretty much full on collided. So many retailers, even some of the most ‘traditional’, are spending a lot of time and money on trying to figure out what this digital everywhere situation means for commerce.
- We’ll spend some time on 5 keys for building great customer experiences – all of these have been successfully used within an agile environment.
- First, and most important. Focus on humans!
- Think about what service you are trying to provide or improve with whatever technology epic or sprint you are working on. Yesterday, David Leach gave good examples of how uber and Airbnb have done this and how focusing on the services and any gaps vs. just thinking about technology has been so beneficial for those companies and others. Services are key.
- Think about what service you are trying to provide or improve with whatever technology epic or sprint you are working on. Yesterday, David Leach gave good examples of how uber and Airbnb have done this and how focusing on the services and any gaps vs. just thinking about technology has been so beneficial for those companies and others. Services are key.
- Consider trying co-creation – collaborating directly during design and solutioning with internal and/or external end customers
- And you look at a company like Amazon and how ubiquitous they have become. For all sorts of reasons of course, but not least because of their focus on making their services as easy as ‘one click’.
- Ensure that things are connected throughout your organization. is the Marketing connected? Do the call center and the store employees understand the latest campaign or promotion? Are the technology and fulfillment infrastructures set up to support?
- Touchpoint and journey mapping are very helpful tactics for telling stories that focus on human consumers. They are exceptionally useful for aligning various stakeholders from across a brand or business on the actual customer experience, gaps, pain points and opportunities.
- Touchpoint and journey mapping are very helpful tactics for telling stories that focus on human consumers. They are exceptionally useful for aligning various stakeholders from across a brand or business on the actual customer experience, gaps, pain points and opportunities.
- All of this requires staying flexible. Like this 97 year old yoga expert.
- All of this requires staying flexible. Like this 97 year old yoga expert.
- There are true benefits to using rough prototypes (or unfinished working code) vs. something more polished.
- There are true benefits to using rough prototypes (or unfinished working code) vs. something more polished.
- Flexible with roles, flexible with goals. Remember that even with all of these customer centered tips you might end up developing something that isn’t quite right. That’s okay! Even more reason to keep watching your customers behavior and continuously tweaking.
- Flexible with roles, flexible with goals. Remember that even with all of these customer centered tips you might end up developing something that isn’t quite right. That’s okay! Even more reason to keep watching your customers behavior and continuously tweaking.
- Flexible with roles, flexible with goals. Remember that even with all of these customer centered tips you might end up developing something that isn’t quite right. That’s okay! Even more reason to keep watching your customers behavior and continuously tweaking.
- Flexible with roles, flexible with goals. Remember that even with all of these customer centered tips you might end up developing something that isn’t quite right. That’s okay! Even more reason to keep watching your customers behavior and continuously tweaking.
- We’ll spend some time on 5 keys for building great customer experiences – all of these have been successfully used within an agile environment.