Attention Retail innovations Q2 Report
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2012 Q2 RETAIL INNOVATIONS 1
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Transcript of Attention Retail innovations Q2 Report
2012 Q2RETAIL INNOVATIONS
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OverviewRetail and the new Customer Journey
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Tradi7onally, companies never place anything between the customer and the transac7on.Today, consumers transact anywhere they have Internet access
Today, consumers expect a social experience when shopping
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Consumers spend more :me online than ever before
In the past two years, consumers have migrated from retail loca:ons to online stores
Now consumers are now shi>ing their desktop ac:vity to mobile ac:vity
Consumer retail behavior has changed.
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In response to the shi> in consumer behavior, retailers have to use technology as a conduit to forge more meaningful rela:onships with their customers and service them at mul:ple touchpoints. Today we’ll focus on five key areas:
-‐ Omni-‐Channel Marke:ng-‐ “Try-‐Before-‐You-‐Buy” Augmented Reality-‐ Product+-‐ Crea:ve Loyalty Programs-‐ “Hyper-‐Localized” Shopping
Retailers must be equipped to compete.
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Omni-‐Channel Marke7ngMobile, Tablet and Pinterest Commerce
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The walls between channels are fading.
Customers benefit from interac:ng with brands where they want, when they want in a distributed non-‐linear customer journey
Customers engage in 10+ different brand touches prior to purchase (e.g. mobile, catalog, in-‐store, iPad, Pinterest, e-‐commerce, direct, email)
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Mobile gives consumers the online advantage in an in-‐store environment (e.g. price comparison)
Many retailers are unfortunately losing customers in their own stores:-‐ 73% of consumers use mobile in-‐store + 53% of those consumers stopped an in-‐store purchase as a result of using their mobile phone*
Mass adop:on of a next-‐genera:on POS program appears to be imminent, awai:ng results from pilot programs
Mobile in-‐store commerce is both a threat and an opportunity for retailers.
* Interac<ve Adver<sing Bureau’s Mobile Phone Shopping Diaries, May 2012
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•eBay’s PayPal has signed on 19 more retailers (e.g. JCP, Toys “R” Us, Foot Locker, Nine West) who will start to accept the online payment system in U.S. stores
•PayPal will allow payments through mobile phones
•Retailers with younger target consumers will benefit, since some of these consumers are not old enough to qualify for credit cards
PayPal powers in-‐store mobile purchases.
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•The virtual grocery store has emerged in Chicago in a pilot program launched by Internet grocer Peapod
•Peapod wrapped the tunnel walls of a subway sta<on with larger-‐than-‐life grocery shelves with popular products from brands like Coca-‐Cola, P&G and Kimberly Clark -‐-‐ all ac<vated via QR codes
•During a previous 12-‐week pilot program in 15 commuter rail pla^orms in Philadelphia, Peapod found that 90% of those consumers who scan returned to Peapod to shop
Peapod launched the U.S.’s first virtual grocery store.
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Tablets drive sales comparable to those made in-‐store*-‐ Tablet AOV: $159.28 (on-‐par with in-‐store)-‐ Smartphone AOV: $134.37
137 million US consumers own smartphones that collec:vely accounted for just 1.5% of online sales last year; less than half the consumers, 61 million, own tablets but they generated more than twice the percentage of sales, 3.2%
Sales data from tablet commerce have pushed retailers to invest in tablet-‐only shopping applica7ons.
* Na<onal Retail Federa<on’s Shop.org & Forrester Research’s 2012 Mobile Commerce Survey
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•The Shopmox iPad app incorporates 26 stores from retailers such as Anthropologie, Gap, Gap Kids, Banana Republic, Urban Ou^icers and Old Navy. Features include: -‐Follow preferred retailers to create a customized bou<que experience-‐No<fica<ons when a “liked” product goes on sale-‐Product recommenda<ons + curated content
Shopmox aims to bring the mall to the iPad through an app that incorporates 26 retailer stores.
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• Following two years of insight into consumer tablet shopping habits, eBay re-‐launched a new version of their free iPad applica<on
• The release follows eBay’s report of a spike in mobile ac<vity on eBay between 2.5-‐3X the normal rate at which consumer conduct transac<ons on their mobile devices during Cyber Monday 2011*
• The app focuses on a window shopping experience with big pictures, flickable photos, quick access to info, and purchase via PayPal within the app environment
eBay launched a new version of its iPad app, centered around a visual window-‐shopping experience.
* WWD’s “Mobile, Tablets Lead Holiday Charge”, December 7, 2011
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• Pinterest has 12MM+ users, growing 146% since January 2012
• Pinterest pins with prices receive 36% more likes than those without*
• On average, orders from Pinterest are double those from Facebook ($80 AOV vs. $40 AOV)*
• Pinterest’s API will soon be made available for developers to build apps using Pinterest data**
Pinterest is now the third most popular social network in the world, based on referral traffic and daily ac7ve users.
** Fast Company, “Pinterest CEO Ben Silbermann Talks New Profile, New Social Tools, Addresses Controversy”, March 13, 2012* Shopify’s Pinterest ecommerce study, May 2012
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•Fashion blogger Chris<ne Mar<nez (1MM followers), travelled to St. Barth to “live pin” a photo shoot for Calypso’s 2012 summer look book
•Calypso saw increased traffic and revenue referrals from Pinterest in the six months leading up to the launch of the lookbook
Calypso St. Barth engaged a fashion blogger to “live pin” a photo shoot on behalf of the brand.
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•Women’s Health invites readers to create “Sparkling Summer” Pinterest boards incorpora<ng images from the adver<ser, Forevermark Diamonds
•While Pinterest doesn’t allow first-‐party adver<sing on its pla^orm, third-‐party publishers are finding crea<ve ways to work with adver<sers
Women’s Health is launching a first-‐ever adver7ser campaign on Pinterest.
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“Try-‐Before-‐You-‐Buy” Augmented RealityTest Products Before Purchase
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The key to a successful AR campaign is to deliver meaningful content for the customer*
Current AR applica:ons include:-‐ Size figng for online shoppers-‐ Displaying product details alongside products-‐ Rendering products in print catalogs in 3D
Global revenues for AR apps are expected to reach $1.5 billion by 2015**
Augmented Reality has evolved beyond stunt marke7ng to a valuable mechanism for brand to consumer communica7on.
** Juniper Research’s Mobile Augmented Reality report, January 2, 2011* Bazaarvoice blog, January 30, 2012
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•Bloomingdale’s transformed six window displays with interac<ve LCD screens, which allowed passersby to virtually “try on” sunglasses
•Shoppers could turn their heads to view the arms of the sunglasses
•Selected favorites were virtually submiced to the Sunglass Style Bar where a salesperson could close the purchase loop
Bloomingdale’s launched interac7ve window displays to allow users to try on sunglasses from the street.
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•One Nordic created an applica<on + “tracking marker” (available online, catalogue and in-‐store), where users could take an image of their home and the app would display the furniture on top of the marker
•Users benefit from being able to see the items in real size, within the space in their homes
•3D modeling enables a 360-‐degree view of the products
One Nordic allowed consumers to preview furniture op7ons in their homes through an AR app.
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Product+Extending the Brand Experience beyond Purchase
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Brands have created digital layers of content, value and experience onto physical products, notably in the CPG, apparel and retail sectors, to increase and customize communica:on with their customers
Digital experiences can entertain and/or provide further u:litarian value to foster brand loyalty
Brands are developing rich digital experiences onto their products to con7nue the engagement with purchasers.
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•As part of Nike’s global “Make It Count” campaign, Nike Mexico launched a Nike+ auc<on Facebook app, where users could bid on Nike products with credits earned as a result of their Nike+ data
•Users earned more credits by running longer distances using Nike+, which tracks users’ runs through sports watches, iPods and smartphones
Nike+ launched an applica7on that converted sweat into currency.
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•Johnson & Johnson launched an augmented reality app that overlays anima<ons of the Muppet characters onto its Band-‐Aid products
•The app is only ac<vated once the camera detects the Muppet-‐branded app, tying product purchase into this digital delight
Johnson & Johnson launched an app that projects anima7ons of the Muppets onto Band-‐Aids.
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Crea7ve Loyalty ProgramsReward Advocates through Social Media
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Forrester cites loyalty programs as one of the reasons online spending will reach $327 billion in 2016, up 45% from $226 billion in 2012*-‐ 12% of online shoppers belonged to loyalty programs, such as Amazon Prime in 2011, up 9% from 2010
61% of consumers enrolled in loyalty programs consistently patron the retailer
Retailers are experimen7ng with loyalty programs that reward consumers in unconven7onal ways.
* Forrester Research’s “U.S. Online Retail Forecast, 2011 to 2016” report, February 27, 2012
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• Plink reported that consumers using the pla^orm are spending 65% more than before at par<cipa<ng brands while visi<ng twice a month instead of once
• Par<cipa<ng brands include Taco Bell, Burger King, 7-‐Eleven, Dunkin’ Donuts, Regal Cinemas, Arby’s, Quiznos, Red Robin and Outback Steakhouse
• Arer an ini<al online registra<on process with their credit or debit cards, users receive Facebook Credits following qualifying retail purchases
• Facebook Credits can be used to purchase virtual goods in Facebook games
Plink reported increased AOVs & in-‐store visits at par7cipa7ng brands.
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Target is now Shopkick’s largest retailer partner, rewarding in-‐store consumers with a variety of prizes.
•Target has rolled out its Shopkick partnership to all of its 1,764 loca<ons in the U.S.
•Customers earn “kicks” by entering stores and scanning products (e.g. electronics, toys)
•Kicks can be redeemed for Target gir cards, Facebook credits + dining gir cer<ficates
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•The reward program links offline spending on American Express’s Serve pre-‐paid cards to in-‐game rewards in Zynga’s Farmville
•Purchases of specific offers will unlock more virtual currency in Zynga games
Zynga teamed up with American Express to provide virtual rewards for purchases.
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“Hyper-‐Localized” ShoppingPersonalized Content for Local Consumers
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Consumers benefit from a more tailored shopping experience that highlights geographically-‐relevant data, including local store deals and product availability
Retailers benefit from localized metrics and learnings, which can be leveraged for further personaliza:on
Retailers are delivering targeted informa7on to consumers, based on geographic loca7on.
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•Sears is tes<ng local, personalized e-‐commerce in key markets through the launch of an online shopping portal, allowing customers to preview local deals beyond those found in the print circulars and on Sears.com
•Shoppers can search their nearest Sears store and browse deals by department, brand or price
•Shoppers can access stores’ real<me inventory to check product availability
Sears launched SearsLocalAd.com, providing customers with access to local deals.
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•American Express pushes daily deals offers through its exis<ng iPhone app to consumers based on their purchase history and loca<on, differen<a<ng itself from exis<ng deal providers like Groupon and LivingSocial
•Offers are ranked by relevancy (as determined by purchase history & loca<on)
•The program, which incorporates offers with large merchants like Dunkin’ Donuts and Baskin-‐Robbins, and small businesses, launched first in New York and Los Angeles
American Express launched “My Offers,” which delivers local recommended offers to consumers’ mobile devices.
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ImpactLeveraging 2012 Q2 Retail Innova<ons
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Brands have successfully deployed tac:cs in a few select markets and started na:onwide implementa:on, strengthening confidence for marketers
For brands without brick-‐and-‐mortars, there lie many opportuni:es to partner with retailers who are pursuing these tac:cs
Retail innova7ons experiments are flooding the global market, providing a wealth of learnings.
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AppendixAddi<onal Case Studies
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Tesco displayed clothing from its exclusive F&F collec<on through specially-‐decorated windows of its smaller London shops, where inventory and space are challenged
Users point their mobile devices at the store windows and view a virtual showcase of the F&F range on the catwalk
Users purchase items on display via their smartphone
Tesco employed virtual window shopping to maximize the experience in its smaller retail loca7ons.
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Gucci sales associates at select U.S., Europe and Asia loca<ons are equipped with iPhones so employees can process sales from anywhere in the store
Home Depot’s “First Phone” devices were rolled out in 2011 to nearly 2,000 of its stores. While the implementa<on was cri<cized by much of the staff, Home Depot intended the devices to provide real-‐<me data on sales, gross margin and inventory, and also to serve as a mobile POS, allowing purchases away from the checkout registers
Retailers are taking a page from Apple stores’ POS process and implemen7ng mobile payments from anywhere in the store.
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Hellman’s installed sorware in cash registers at 100 Brazilian supermarkets that recognized Hellman’s scanned products
The sorware matched the scanned items against a database of recipe and delivered a custom recipe and cooking direc<ons on the receipt
Hellman’s delivered custom recipes to customers on their supermarket receipts.
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