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Remarkable Retail

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Brands create an expectation in our heads about how they should act, and the experiences we should have. They set the standard for other brands, irrespective of category.

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Remarkable Retail

  1. 1. Why Remarkable Experiences Matter in Retail A Table19 thinkpiece June 2015
  2. 2. Contents • Our observations so far in 2015 • Why does it matter? • How to deliver remarkable customer experiences • Brands we think that are doing it well
  3. 3. OBSERVATIONS SO FAR IN 2015
  4. 4. Internet use is growing faster than world population
  5. 5. The average UK adult now spends more time using media or communications (8 hours 41 minutes) than they do sleeping (8 hours 21 minutes). Ofcom 2014
  6. 6. Technology is delivering personalised services
  7. 7. Xxxxxxxxxxxxx And bringing content to life
  8. 8. Xxxxxxxxxxxxx And make processes easier or more streamlined
  9. 9. Delivery is more tech-poweredHome delivery has become tech powered
  10. 10. Beacons are gaining traction
  11. 11. Consumers are getting used to the ubiquity of Click & Collect Transport for London processed 10,000 orders at its click-and-collect stations within first 10 months of offering the service
  12. 12. Amazon Prime customers generate twice as much income as non-Prime and are eight times more profitable. In the face of constricting margins, this model allows Amazon to monetise its phenomenal growth. Faster delivery is worth paying for
  13. 13. XxxxxxxxxxxxxWhy does it matter?
  14. 14. REMARKABLE EXPERIENCES MATTER IN RETAIL
  15. 15. It matters for organisations Customer-centric companies gained 43% in their performance metrics in 2014 compared to a 33.9% decrease for companies who have neglected customer experience. Forrester’s Customer Index Searches for the phrase ”customer experience jobs” increased 40% from July 2013 to July 2014. Google Trends Gartner has predicted that by 2017, 89% of marketing leaders expect customer experience to be their primary basis for competitive differentiation Customer experience is seen as the standout imperative for 2015 and beyond, with 22% saying it is the single most exciting opportunity this year. Digital Trends Survey – Econsultancy
  16. 16. It matters to us 56% of consumers say they would be more inclined to use a retailer if it offered a good personalised experience. O2 The Rise of Me-tail 40% of people will abandon a web page if it takes more than three seconds to load. Econsultancy 42% of consumers expect a response on social media within one hour, and 32% think it should be within 30 minutes. Edison From a customers’ perspective, service should appear seamless, and seem effortless, across channels. Business2Community
  17. 17. UNDERSTANDING CUSTOMER NEEDS The key to delivering remarkable experiences?
  18. 18. 10 CUSTOMER NEEDS
  19. 19. BRANDS DELIVERING REMARKABLE CUSTOMER EXPERIENCES
  20. 20. Sephora Never giving your customers a reason not to purchase “It’s not just about selling more makeup, it’s about selling the right makeup” - Bridget Dolan, VP of Innovation, Sephora
  21. 21. “We don’t like to think in silos. We think of the customer experience and then decide on the best technology that supports that experience” - Johanna Marcus, Director of Digital Business Development, Sephora
  22. 22. The Sephora experience One-on-one Color IQ consultations and AR experiences Expertise, product knowledge and technology give customers a personalised service like no other. COLOR IQ / ecommerce Use your unique identification to find products effortlessly in store and online Loyalty programme / email Sign up for Beauty Insider for tier-based rewards. Mobile apps The Pocket Contour app gives personalised makeup advice. Sephora to Go is the brand’s mobile commerce and loyalty app WOW ME HYPER- PERSONALISATION MAKE IT SEAMLESS EMPOWERMENT 80% of transactions go through the Beauty Insider programme ADDED VALUE
  23. 23. Why Sephora’s approach works • Sephora delivers a complete and connected experience, which the business prioritises over using just one platform or execution. • The driving force behind their actions/decisions is based on existing consumer behaviour – it’s more important to satisfy this behaviour, rather than forcing new habits. • Sephora sticks to its ABCs - ‘Always Be Closing’ (the loop) – the experience should give people no excuse not to purchase. • Sephora drives loyalty through the creation of value-add services such as its Beauty Insider loyalty programme and various mobile apps.
  24. 24. Starbucks Rewarding and recognising customers
  25. 25. The Starbucks experience Gamification makes the loyalty programme more engaging Stars, alerts and levels enrich the experience Email drives in store footfall Triggered comms and exclusive offers keep customers engaged Mobile-driven experience gives you more control Customers can pay quickly with the tap of their phone, review their account balance and their rewards easily Turning the feedback model on its head Inviting customers to submit ideas to improve Starbucks changes the traditional feedback model Mobile app generates 6m transactions and 15% sales in the US LIFE ON DEMAND ADDED VALUE INTEGRITY HYPER- PERSONALISATION Immersive experiences Starbucks have also created The Roastery – a place for the real coffee enthusiast to experience reserve quality beans roasted on site. WOW ME
  26. 26. Starbucks rewards loyalty • The app is easy and seamless – pay with your phone, earn rewards that go straight to your phone – no plastic loyalty cards to carry. • Email and mobile work together – emails keep you informed of what’s going on and tell you about upcoming events, exclusive treats, info on your rewards. • Surprise and delight factor: Downloadable goodies (songs etc.) as well as free drinks, food, refills add extra magic to the programme.
  27. 27. IKEA Joining up the online and offline brand experience
  28. 28. IKEA has placed research at the heart of its expansion plans. The Life at Home report was a survey conducted with 8292 people in eight global cities to give the company insight into the morning habits of its customers – the data helps inform future product designs.
  29. 29. The IKEA experience Enriching product categories with content gives items more purpose Products are shown alongside lifestyle features, e.g. an interactive guide to better sleep. A customer-centric approach to product innovation allows IKEA to shift vast quantities of product across the world IKEA wants to better its customers’ lives – through research it develops new product lines such as wireless charging furniture. PROVE YOUR WORTH WOW ME Showrooms let customers experience the product first hand …and get a sense of how it will fit in with their lives Apps empower shoppers to make better purchasing decisions The AR app lets customers see what catalogue products would look like in their own home ADDED VALUE ADDED VALUE Quirky digital tools show off the brand’s irreverent and non- serious side The IKEA Wedding Service combines traditional matrimonial celebrations with video calling I WANT TO FEEL CONNECTED
  30. 30. Brand activations and partnerships deliver unique offline experiences for customers – IKEA events retain the brand’s quirky and playful image.
  31. 31. • In an age where ecommerce dominates consumers’ shopping habits, footfall in IKEA’s stores remains high. Branches are seen as shopping ‘destinations’ that appeal to all age demographics. • Added-value in store services such as car washes, express checkout, children’s play areas, restaurants/cafeterias give customers a reason to extend their shopping time. • The AR app for the 2014 catalogue let customers scan products from pages and virtually place them in their homes. Maintaining a strong brand on and offline • Own research gives them closer connections to their customers and their needs, and allows them to design their products in response to these needs (rather than the other way round)
  32. 32. Argos Shifting perceptions with a seamless experience
  33. 33. Argos is leading the digital retail revolution with its new format stores
  34. 34. The Argos experience Different store formats cater to various customer needs Small format and concession stores make browsing and purchasing through Argos easier and more accessible. MAKE IT SEAMLESS Services are designed to keep customers’ moving through stores effortlessly From browsing on tablets to Fast Track collection, you can be in out and out of an Argos store in minutes. Digital content and product displays Bringing customers closer to the products than ever before – not just limiting experience to tablet or catalogue browsing. WOW ME ADDED VALUE IMMEDIACY Emails deliver highly personalised product recommendations and offers The Birthday Club suggests gifts for your child and sends you a 20% discount six weeks in advance of their birthday.
  35. 35. • Argos is leading the digital retail revolution with its new format stores that bring the convenience of online shopping into the physical realm, and embracing Click and Collect. • Customers can use these stores to browse over 20,000 products via tablets, pre- pay and collect items via a Fast Track service, view product displays and receive advice and support from staff. Why seamless means success • They’re monitoring in-store and social data to inform the customer experience: social data has already told them that men and women had different reactions to the new stores (women liked the new customer service whereas men talked more about the tech)
  36. 36. Using data to support a remarkable experience Disney
  37. 37. Disney World Florida is the most visited vacation resort in the world, with an attendance of 25 million annually
  38. 38. Why the MagicBand project? "On the surface, we had super happy guests, but in reality, we were making them go through so much hassle at the park that down the road, they would simply say, 'No más!' " Disney World isn’t an amusement park: It’s a metropolis. Sprawled across 25,000 acres of central Florida, it contains four theme parks, nearly 140 attractions, 300 dining locations, and 36 resort hotels.
  39. 39. The Magic Band takes the hassle out of navigating, carrying and queuing The Magic Band removes the need to carry cash, keys, passes and ID Use the Magic Band to store photos, make purchases, access your hotel , fast pass rides and restaurant reservations. Organise every aspect of your trip in advance online Plan your trip down to the last detail with the MyDisney Experience Disney characters and theme park attendants know you by name With the Magic Band, Disney characters can greet you by name and restaurant staff know you’re arriving. HYPER- PERSONALISATION WOW ME MAKE IT SEAMLESS EMPOWERMENT Families can customise their bands The band moves from being a functional wearable to a prized keepsake The App Once you’re there you can use the app to navigate the parks, view your itinerary, get alerts for your reservations, [in theory] change your fast passes, get real-time info on ride queues
  40. 40. • Not just a park ticket – the magic band and app allow you to control and tailor your trip starting from as soon as you’ve booked it. • It makes navigating the 45 miles of theme park more feasible and less of an overwhelming experience. • When you’re there, the tech works together to create a seamless experience across all parks, rides, (most) hotels, shops and restaurants. • In theory you don’t need to carry anything – the band acts as park ticket, room key, reservation holder, camera and wallet in one. • Allows Disney to not only control and monitor traffic flow within the park, but gives them valuable data on guests’ preferences, purchases and movements. Creating magic with data
  41. 41. eBay Creating a more personal, curated experience
  42. 42. eBay Collections makes it easy to navigate a world full of things you may like to buy depending on what’s trending or what you’re after “…merchandise isn't alone what people want most, in fact it's the memory that matters more than the material these days and we have to be able to cultivate experiences that really resonate with people.” - Michael Moskowitz, Chief Curator and Editorial Director at eBay
  43. 43. The eBay shopping experience eBay’s business model has evolved: 75%+ listings for ‘Buy it now’ - effectively an additional sales channel for retailers. Data analytics based on customers’ activity and tastes drive communications - and a personalised shopping experience on the app It’s getting the ‘expected’ right: simple ordering, payment and delivery methods. WOW ME LIFE ON DEMAND (HYPER) PERSONALISATI ON IMMEDIACY MAKE IT SEAMLESS MAKE IT SEAMLESS Inspiring shoppers via collaborated collections Keeps people on the site for longer and empowers retailers
  44. 44. • Ebay is responding to the omnichannel challenge by evolving its business model from a pure auction site to selling new goods at fixed price. The ebay experience • It’s getting the simple and expected right: good UX, choice in delivery and payment options. • Ebay Collections are designed to inspire, connect consumers and retailers, and give shoppers a more holistic shopping experience than just purchasing one-offs
  45. 45. Peak Performance Virtual pop-ups bridging the digital and physical divide
  46. 46. The Magic Hour experience Capturing consumer moments on social makes for attractive and highly shareable content #catchMagicHour asks customers to take their best photos just before sunrise or sunset to be in with a chance of winning Peak Performance gear. Time and location-precise pop-ups turn experience into a treasure hunt Be in the right place at the right time to gain access to virtual pop-up shops. WOW ME I WANT TO FEEL CONNECTED The “magic hour” is the period just before sunrise and sunset. Peak Performance challenged its customers to find its virtual pop-up stores with their mobiles at these critical times. All the products in these stores were free – customers simply needed to be in the right place at the right time to claim them. A competition to win €500-1000 worth of products asked customers to capture their magic hour moment and share it on Instagram with #catchMagicHour
  47. 47. • Caters to the “always-on” consumer and shows how m-commerce can be stretched beyond traditional approaches to loyalty. Why is it remarkable? • Brand’s core audience is actually being challenged in a meaningful way – the appeal of the campaign is that it resonates with what they’re already passionate about. • Mobile has been leveraged in a clever and simple way to make the core thought come to life. Technology hasn’t been used for the sake of it.
  48. 48. Selfridges Turning retail into theatre
  49. 49. Selfridges is as much an event space as it is a store, hosting everything from pop-up cinemas and restaurants to crazy golf.
  50. 50. Selfridges continues to be a hub of creative events, brand campaigns and product experiences Drawing attention on the street Selfridges’ highly creative window displays are difficult to ignore Delivering unique seasonal experiences that keep shoppers engaged Lectures, film screenings, culinary lessons, make-up classes and book signings are just some of the events keeping Selfridges relevant and exciting – and connected to the world around them In store activations are as bold and inventive as their standout branding Selfridges is known for its bold attitude, quirkiness and expertise in all things luxury WOW ME I WANT TO FEEL CONNECTED
  51. 51. Selfridges turning retail into theatre • Selfridges today is more than a shop - it's a shopping experience that continues to surprise, amaze and amuse its customers by delivering extraordinary customer experiences. • Selfridges remains a pioneer in innovation and creativity, and is one of the reasons why it’s still considered to be the ‘best department store in the world’
  52. 52. Made.com Making showrooming a pleasurable experience
  53. 53. The Made.com showroom experience Showrooms are designed to inspire and ‘try before you buy’ The spacious and relaxing environment makes a better browsing and ‘imagined living’ experience Tablets are provided to customers – to buy now or do it later Tablets encourage you to add products to a wishlist, or do it seamlessly via scanning product tags. Receive your wishlist by email Triggered email keeps items front of mind and easy to purchase even after you’ve left the store. MAKE IT SEAMLESS WOW ME IMMEDIACY EMPOWERMENT ADDED VALUE
  54. 54. Made.com getting showrooming right • The online and offline experience complement each other. Whilst the online site has videos and back stories about the products, the in-store experience give you the actual experience of sitting on a chair or sofa in person. • Embracing showrooming is a smart and brave move for a furniture retailer. It encourages and empowers people to feel comfortable browsing in-store and buying later
  55. 55. THANK YOU

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