The Retail Revolution

A NEW RETAIL PARADIGM, COURTESY OF THE MILLENNIALS.THE RETAIL REVOLUTION

“People don’t alwaysremember what you say or

even what you do, butthey always remember

how you made them feel.”- MAYA ANGELOU

ADAPT OR DIE!DIGITAL DARWINISM

DIGITAL DARWINISM

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We are entering a new digital economy and to compete successfully in it, business

processes, models and systems need to evolve.

Those who do not adapt to these changes will not be successful.

THE RETAIL REVOLUTION

DIGITAL DARWINISM

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• Brian Solis is a digital analyst, anthropologist and futurist who studies the effects of disruptive technology on business and society.

• He’s studying the way that people embrace technology, from social networks to smartphones to intelligent appliances, and how that contributes to the digital lifestyle that is now synonymous with Generation Y - the Millennials.

• Some companies invest in new technologies without understanding the culture, nuances and relationships that the user has within those communities or how they use the devices.


DIGITAL DARWINISM

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• They aren’t thinking about changing their work ecosystem to adapt to new technologies - they are trying include new technologies within the existing framework.

• Technology is and isn’t the answer to change, it’s the enabler.

http://www.briansolis.com/tag/digital-darwinism/




DIGITAL DARWINISM

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“As technology and society evolve, leaders face the

need to adapt or die.”- BRIAN SOLIS


ONLINE, OFFLINE...OMNICHANNELTHE LINES ARE BLURRING

THE LINES ARE BLURRING

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Due to these technological and societal changes, the lines

between the physical and digital retail channels are blurring.

Millennials just want to go ‘shopping’ - wherever and

whenever they feel like doing so.


THE LINES ARE BLURRING

The majority of Chinese consumers now choose a

digital channel as the first step in researching retail products.

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- PWC TOTAL RETAIL SURVEY 2015


START OFFLINE, FINISH ONLINESHOWROOMING

SHOWROOMING

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‘Showrooming’ occurs when a shopper visits a store to check out a product but purchases online, from

home or another location later.

Shoppers still prefer to see and touch the merchandise they buy, but many items

are available at lower prices online.


ERMAHGERD!

SHOWROOMING

Have you ever intentionally browsed products at a store but decided to purchase online?

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START ONLINE, FINISH OFFLINEWEBROOMING

SHOWROOMING

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‘Webrooming’ occurs when consumers research products online before going into the store for a final

evaluation and purchase.

This form of shopping is globally on the rise and becoming more relevant to

consumers and retailers alike.


WEBROOMING

Have you ever intentionally browsed products online but decided to purchase them in-store?

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COMES TO TRADITIONAL RETAILMOBILE SHOPPING

MOBILE SHOPPING COMES TO TOWN

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Singapore-based online retailer ZALORA opened a pop-up store in Causeway Bay

recently - an interesting move for an online retailer who are looking to grow their brand and sales with an O2O strategy.

Mobile is the bridge because of the ubiquity of the devices among their wider customer base.



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This ‘click-and-mortar’ approach is aimed at easing local (Hong Kong) customers into

the notion of online shopping and the e/m-com experience with an educational,

interactive and personable space.



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In the store, visitors are encouraged to scan a QR code to download the ZALORA

app to their mobiles using the free wi-fi, for an instant 20% discount.



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Shoppers can see, handle and try the clothing on in the store but they don’t take it home! They purchase it in the store via

the app and it is delivered to their home in a couple of days.



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ZALORA are looking to a future where online and offline shopping aren’t two

separate business models.

There will just be ‘shopping’ and it will be an integrated online and offline experience.



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More than 80% of people visiting this pop-up store have never shopped with

ZALORA before their visit.

75% had never even heard of the name before.


WILL SOON BECOME THE NORM‘MAGIC MIRRORS’

MAGIC MIRRORS

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What if retailers focused on using technology to ease customer pain

points and smooth out bumps in the shopping experience, like trying to

flag down a salesperson while undressed in a fitting room?


MAGIC MIRRORS

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What if you took the best from a mobile experience and brought it

into the store?

That’s what Rebecca Minkoff and the eBay Innovations Lab have done.


MAGIC MIRRORS

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On a large wall mounted interactive screen, customers can swipes through collections and ‘looks’,

select the ones they like, request a fitting room, and when it’s ready for

them they are notified by text.


MAGIC MIRRORS

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In the fitting room another mirror allows the customer to choose

different lighting settings, ask for more sizes and styles to be brought over,

select which pieces to buy, and confirm their checkout with a sales associate.


MAGIC MIRRORS

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Customers can also save collections they didn’t buy to a personal profile

that will show what they have tried on and what they bought - allowing the

store and Minkoff brand to tailor recommendations and marketing

communications accordingly.


MAGIC MIRRORS

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Digitally capturing shopping sessions can show what is trending with customers in

different stores, allowing the brand to immediately alter both in-store and online marketing to

reflect those preferences.


MAGIC MIRRORS

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So if they know that in New York people are taking a lot of denim into

the dressing room, they can get hyperlocal with their marketing and

change the imagery on the interactive wall and email marketing.


PHYSICAL RETAIL IS HERE TO STAY

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“People still want to use their five senses, not just the one sense you

use when you’re doing e-commerce.

So physical retail, a showroom, I think will never go away.”

- STEVE YANKOVICH (eBay Head of Innovation)


IT’S YOUR JOB TO UNDERSTAND ME!I AM AN INDIVIDUAL

PERSONALISATION

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My likes and dislikes, wants and needs are unique to my

personality and way I live my life.

Brands need to cater to this and start personalising the experience, service

and offers accordingly.


PERSONALISATION

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This is part of an actual email I get often from my telco provider - Smartone. I am

a 40 year old, single caucasian male. Why in the hell would I want to buy

anything to do with Hello Kitty?

I have been using them for 7 years and they know NOTHING about me.


PERSONALISATION

Smartone, you know me so well...

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PERSONALISATION

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What’s an even worse experience for me as a customer is how hard they make it

to unsubscribe from their eDMs and annoying weekly text messages.


PERSONALISATION

Wait...what?

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PERSONALISATION

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I will now make a concerted effort across multiple social platforms to

express my negative feelings!


HULKSMASH!

PERSONALISATION

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This is the way of the Millennial!


PERSONALISATION

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There are so many options for them to choose from. Give them a bad experience and they won’t just not come back, they

will tell everyone about it.


PERSONALISATION

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So make sure it’s a good experience, because they will tell everyone about that too!

This is the ‘sharing generation’, where positives and negatives

are amplified.


THE CONNECTED CONSUMERGEN-Y ARE ALSO GEN-C

GENERATION C - THE CONNECTED CONSUMER

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This year, people born between ’81 and ’96 are poised to become the new workforce

majority, and by 2025 it will be 75%.



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It is the first fully social generation, and social currency is more

important than ever as a result.



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“With every day that passes, Gen Y becomes far more important to the economy than we can realise. yet the gap between how Gen Y

communicates and connects and how business, educators,

governments et al. approach them is only widening.

- BRIAN SOLIS



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This generation are more likely to find love or be dumped via text or their Facebook wall..


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59% of this generation update their social status in class and watch TV with two or more connected devices



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They believe that other consumers care more about their opinions than companies do - that’s why they share their opinions online,



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Millennials have high expectation of themselves and their jobs and aren’t as motivated by money as much as

previous generations were.


I DON’T JUST WANT ‘STUFF’ ANYMORE

A NEW RETAIL EXPERIENCE

THE NEW RETAIL EXPERIENCE

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In the future of retail, the consumer is king.



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If they don’t receive exceptional customer service

they will go elsewhere.



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This demands a new retail experience that feels less like a

‘path to purchase’ and more like a first date that went really well!

It’s a journey to a relationship.



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- LIQUID AGENCY ‘The Future of Retail’


The Old Way The New Way


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Every tactic must be executed in the pursuit of getting to know the

customer, so that every message is intriguing, appreciative and

continues to draw them into a personalised brand experience.



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Separate the customer from their purchase. The new retail model demands we think of

the customer journey in an entirely new way.


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Leverage the right technology. Technology allows brands to court the customer like never before - to learn

what they do and do not like.


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Share stories that inspire them. Be there for them when they need

something - not when you think they need something.


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It’s not about single sales. Ignite and foster a long-term, mutually beneficial and respectful relationship.


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Relationships = revenue.


OUR CUSTOMERS

SO LET’S START DATING

LET’S START DATING OUR CUSTOMERS

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Retail success us about creating GREAT experiences - just like dating.

How attracted would you be to a date who just talked about themselves all night?


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We need to start asking our customers the right questions.

We need to be interested in them, learn about them and then talk knowledgeably

about what is of interest to them.


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Every touch point along the customer journey is an opportunity to build a

relationship.


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Where, when and how often brands interact with each

customer should be thoughtful and meaningful.


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What is said should give them exactly what they

need in the moment.


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Create experiences that are Relevant, Intimate

and Fun.


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Get to know the customer and execute from that insight! Don’t just blindly insert fancy

technology and tactics that may end up hindering the experience


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Remember this... Like dating, too many calls are

just as bad as too few!


79(LIQUID AGENCY ‘The Future of Retail’)


@nictinworth

THANK YOU.

FOR YOUR READING PLEASURE

LINKS

READING LINKS

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http://www.marketing-interactive.com/china-retail-journey-starts-with-digital/


http://www.shopify.com/blog/14513673-consumers-are-showrooming-and-webrooming-your-business-heres-what-that-means-and-what-you-can-do-about-it

http://www.fastcocreate.com/3041516/master-class/mirror-mirror

http://www.marketing-interactive.com/events/click-mortar-real-answer-retail-industrys-woes/

http://www.briansolis.com/2012/04/meet-generation-c-the-connected-customer/

http://www.slideshare.net/liquidagency/retailing-is-like-dating




















The Retail Revolution

Retail

Transcript of The Retail Revolution