Digital Retailer: Trends, Opportunities & Challenges

1. Digital Retailer:Trends, Opportunities & Challenges Lynette Saunders, Senior Analyst, Econsultancy Lynette.saunders@Econsultancy.com

2. What we do SUBSCRIPTION FACE-TO-FACE TRAINING EVENTS BESPOKE DIGITAL TRANSFORMATION London∥ New York ∥  Singapore 9 econsultancy.com/transformation Econsultancy

3. Need for digital transformation • What are retailers focusing on in 2016 and beyond? • Optimising the customer experience • Data-driven marketing a key focus • Personalising the experience • Driving the conversion Agenda econsultancy.com/transformation Econsultancy 3

4. Need for Digital Transformation Econsultancy 4 econsultancy.com/transformation

5. Challenges connecting to digitally empowered consumers • 20,000 customer journeys / 1,000 brands. • Digital touchpoints - 20% annual increase. • ‘Zero moment of truth’. • Delivering the right message, right time, right channel. Source: Brand success in an era of Digital Darwinism, McKinsey Quarterly, February 2015, Accenture Global Consumer Pulse Survey, 2014 econsultancy.com/transformation Econsultancy 5

6. Photo credit: wikimedia.org More than £150bnof retail sales are now influenced by digital, and that retailers whose services don’t meet customers’ expectations could lose more than £12bn a year. Source: http://internetretailing.net/2015/03/new-five-year-plan-of-investment-for-future-digital-high-street/ econsultancy.com/transformation Econsultancy 6

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8. How retailers are digitally transforming • Clear strategic purpose. • Focus on delivering high quality digital experiences across all devices. • Being open minded to new trends and to question the way things currently work. • Need for creative disruption and testing to see what works – win quick and fail fast. • Delivering customer-led marketing decisions, rather than business/solution-led. 8 econsultancy.com/transformation Econsultancy

9. How retailers are digitally transforming • Focusing on optimising the customer experience. • Personalising the communication a top priority. • Delivering a seamless experience across all touchpoints. • Data is key to delivering future success. • Using technology to shape the retail experience. 9 econsultancy.com/transformation Econsultancy

10. What are retailers focusing on in 2016 and beyond? Econsultancy 10 econsultancy.com/transformation

11. Optimising the customer experience Econsultancy 11 econsultancy.com/transformation

12. Which one area is the single most exciting opportunity for your organisation for 2016? Optimising the customer experience continues to be the most exciting opportunity for retailers. Source: Econsultancy/Adobe Digital Trends Survey 2016 Econsultancy 13 econsultancy.com/transformation

13. “ In 2016 Customer Experience will be among the top 10 critical success factors determining who will win and who will fail in the age of the customer ” Source: http://blogs.forrester.com/customer_experience

14. Over the next five years, what is the primary way your organisation will seek to differentiate itself from competitors? Customer-centric companies gained 43% in performance compared to a 33%decrease for companies who neglected customer experience. Forrester Source: Econsultancy/Adobe Digital Trends Survey 2016 14 Econsultancy econsultancy.com/transformation

15. “Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas.” “We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” Econsultancy 15 econsultancy.com/transformation

16. Customer experience… is the full, end-to-end experience. It starts when you first hear about Amazon from a friend, and ends when you get the package in the mail and open it. Jeff Bezos Econsultancy 16 econsultancy.com/transformation

17. AO.com delivering an excellent ecommerce experience through adopting a customer centric approach • Knowing and communicating their unique value proposition. • Being truly, passionately customer centric. • Exceptional, context driven multi-device experience. • Customer service proposition is second to none. • Harnessing social proof and displaying customer satisfaction. https://econsultancy.com/blog/66768-ao-com-the-best-ecommerce-experience-available-online Econsultancy 17 econsultancy.com/transformation

18. Data-driven marketing a key focus Econsultancy 19 econsultancy.com/transformation

19. Looking ahead five years, which one area do you see as the single most exciting opportunity for your organisation? Focus is moving towards personalised communication through data-driven marketing. Source: Econsultancy/Adobe Digital Trends Survey 2016 Econsultancy 20 econsultancy.com/transformation

20. Segmenting nervous and confident buyers Source: Real-Time Marketing Report Econsultancy 23 econsultancy.com/transformation

21. Segmenting nervous and confident buyers On average there is a 26% uplift in conversion rate coming from real time marketing Source: Real-Time Marketing Report Econsultancy 24 econsultancy.com/transformation

22. Personalising the experience Econsultancy 25 econsultancy.com/transformation

23. Which three digital-related areas are the top priorities for your organisation in 2016? 87% of consumers want more meaningful relationships with brands. Endlemanbrandshare 2014 Source: Econsultancy/Adobe Digital Trends Survey 2016 Econsultancy 27 econsultancy.com/transformation

24. Engaging on a human level Econsultancy 29 econsultancy.com/transformation

25. L’Oreal Paris delivering a personalisedexperience across devices • Delivers personalised, cross-device experiences based on preferences/user data • In theory no two users should receive the same on-site experience. Econsultancy 31 econsultancy.com/transformation

26. Apps that let you see what you look like without applying products Econsultancy 32 econsultancy.com/transformation

27. Shop Direct – transforming a catalogue business into a world-class digital retailer Econsultancy 33 econsultancy.com/transformation

28. Shop Direct moves closer to goal of building the world’s most personalisedshopping experience Econsultancy 34 econsultancy.com/transformation

29. The first personalised video banner that is integrated with consumer datain real-time Econsultancy 35 econsultancy.com/transformation

30. Developing an easier, more engaging experience Mobile 58% of online sales Econsultancy 36 econsultancy.com/transformation

31. Driving conversions Econsultancy 33 econsultancy.com/transformation

32. Most important elements of the digital experience Putting the customer at the centre and focusing on their needs. Source: Digital Experience – Are Brands Meeting Consumer Expectations? Econsultancy 38 econsultancy.com/transformation

33. Using your content to achieve your objectives of selling more products Econsultancy 39 econsultancy.com/transformation

34. Providing customer-focused tools Econsultancy 40 econsultancy.com/transformation

35. Show me… Econsultancy 41 econsultancy.com/transformation

36. Using social proof and promoting products Econsultancy 43 econsultancy.com/transformation

37. Walmart adding value to in-store experience Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur… our customers expect a seamless experience….” -Doug McMillon, president and CEO of Wal-Mart Stores Econsultancy 45 econsultancy.com/transformation

38. Delivery Innovation raising the bar Econsultancy 47 econsultancy.com/transformation

39. Building loyal customers High-retention brands which keep their customers engaged recognise that loyalty is largely based on emotion: the way you feel when you interact with a brand. Be clear what you stand for. Deliver great service every time, and fix things up where you fall short. Don’t be afraid to change the game. And remember to treat your customers well. Consistently deliver a positive experience that delivers on a rational and emotional level. Econsultancy 45 econsultancy.com/transformation

40. Thank you Econsultancy 40 econsultancy.com/transformation