The Revolution Will Be Televised! Navigating retail in fast-changing times Robin Bevan, Managing Director, Javelin Group
5 Hallmarks of winning retailers ANALYTICS BOLDLY DIGITALLY- EMPOWERED JOINED-UP, NIMBLE, EVERYWHERE INNOVATIVE COMMITTED C-SUITE TALENT MULTI-SPEED IT
THE ERA OF LIVING SERVICES AND THE IMPORTANCE OF LOVE
Transforming retail for the digital era Our focus: transforming and equipping retailers for the digital era Strategic questions in the digital era Retailers, brand-owners, & B2Bs worldwide Org. transformation Channel strategy Customer experience Technology plan Stores & estate Investment & ROI
Vertical skill-set Retail strategy advisory + systems integrator Strategy Experienced team of >250 retail professionals Channels Vertical retail focus across all channels STORES OMNI-CHANNEL MOBILE ECOMMERCE Digital retail is at our heart Stores Omni Operations Technology Analytics
Digitally- Enabled Digital Commerce Marketing The Digital Enablers Digital Content & Services
Changing business model Sales online (%) & EBIT (%), top 10 UK non-food retailers (excl. pure ecom) 20 ECOMMERCE PARTICIPATION % 15 10 EBIT % 5 0 2006 2015 Financial Year Source: Accenture Analysis of CapIQ, Internet retailer, Annual Reports
Digital Inside
Digitally-Committed C-Suite
Sum - Inside
Analytics Everywhere
The analytics journey Data Advanced Implement Data Sources Visualise Management Analytics
A variety of disparate data-sets Internal External
Technology is enabling exciting data collection & advanced analytics
Analytics everywhere: a brief history
Analytics everywhere: a brief history
Analytics everywhere: a brief history
Advanced analytics Sales Example: Location planning & property eCommerce & Finance & HR multi-channel Space optimisation Catchment analysis ‘Car park’ report Competitor mapping Location Customer planning & insight & property marketing Distributed ‘Valuation Office’ reporting Sales forecasting intelligence across the retail enterprise Impact analysis Property management dashboards Warehousing & Buying & logistics merchandising Site assessment reports Store performance dashboards Store Contact centres Store clustering operations Network optimisation
Advanced analytics What to do Prescriptive next? Business Value What will Predictive happen & when? What & why is Descriptive it happening? Analytical complexity
Flexibility: Accenture’s ‘Analytics Insight Platform’
Boldly Innovative
In 2015 Amazon spending $13.3bn on R&D (c.10% of revenues & +28% YoY) Sum - Inside
Future tech impacting retail & commercial spaces Virtual Reality Blockchain Autonomous Vehicles Artificial Intelligence Robotics/Drones IoT & Connected Devices Custom Manufacturing/3D Digital Traceability Printing
Retail innovation: 8 key trends 1. Excite & inspire the 2. Engage & educate the 3. Offer seamless consumer consumer shopper experience 4. Understand the 5. Deliver endless aisle consumer / shopper & to create upsell / cross- personalise the offer sell opportunities 6. Provide the best 7. Form retail 8. Expand down value service irrespective of partnerships to chain by offering channel differentiate offer services
Future Scorecard | Variables | Current Scorecard Score Disruptive Technology Example: go Amazon Go is a next generation store concept that allows customers to pick up items and leave the store without waiting at a register. Customers are empowered with: Convenience Control Enabling Disruptive Technologies: IoT & Artificial Digital Connected Intelligence Traceability Devices 26
Disruptive Technology Example: eBay and Australian retailer, Meyer, have created the world’s first virtual reality department store: a completely immersive shopping experience. Customers are empowered with: Convenience Choice Enabling Disruptive Technologies: Artificial VR / AR Intelligence 27
Disruptive Technology Example: ECE Future Labs’ Digital Mall app. Customers can get information on the product ranges available in the shopping centre – anytime, anywhere. Customers are empowered with: Convenience Choice Control Enabling Disruptive Technologies: IoT & Artificial Connected Intelligence Devices 28
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4 Future resilience | Westfield London - Smart Parking Smart Parking – Westfield London Disruptive Technology Example: Smart Parking is a innovative idea to give Westfield shoppers quicker access to the centre and better value parking for long stay visits. Customers are empowered with: £ Experience Value Convenience Enabling Disruptive Technologies: IoT & Connected Devices 30
Sum - Inside
W E’VE COME A LONG WAY 2010s LIVING SERVICES 2000s MOBILITY 1990s WEB & INTERNET
LIVING? THEY ARE TAILORED AND LIVE AROUND THE INDIVIDUAL – FLEX TO MEET EACH PERSON’S NEEDS AND PREFERENCES THEY EVOLVE : THEY CONSTANTLY LEARN MORE ABOUT OUR NEEDS, INTENTS, PREFERENCES, AND CHANGE IN REAL TIME THEY ARE VERY PROXIMATE TO US IN THE ENVIRONMENT – THINK WEARABLES AND NEARABLES 34
WHY NOW? GROWTH OF CONNECTED DEVICES SENSORS NETWORK CONNECTIVITY THE CLOUD BIG DATA EVOLUTION OF UI CONSUMER EXPECTATIONS 35
THINK ENVIRONMENTS, NOT INDUSTRIES
VIDEO
A BRAVE NEW WORLD F O R B R A N D S A N D R E TA I L E R S ?
BECOMING A LIVING BRAND WHAT KIND OF ROLE? STANDALONE CURATOR PARTNER PLATFORM The brand keeps The brand filters The brand The brand delivering its and selects experiences are aggregates third service with no partners to deliver accessible through parties and visible a curated third party delivers a holistic partnerships experience platforms experience
BECOMING A LIVING BRAND WHERE & WHEN? NEW TOUCH-POINTS NEW INTERACTIONS NEW CONTEXTS You don’t control the experience With new contexts for interactions Gestures, voice interactions, AI… The anymore. Customers decide when there will be new engagement days of point and click are gone and where to interact with brands opportunities for smart brands How are you going How is your tone of voice How will you be ready to engage to be available going to sound? Will you have a customers in new contexts and anytime, anywhere? signature gesture? needs?
I T ’ S N O L O N G E R E N O U G H T O C R E A T E S O M E T H I N G T H A T P E O P L E L I K E Y O U M U S T B U I L D E X P E R I E N C E S T H A T P E O P L E L O V E
B U T L O V E I S C O M P L E X H O W D O Y O U D E F I N E L O V E F O R A B R A N D E X P E R I E N C E ?
THE RESEARCH REVEALED 5 DIMENSIONS FOR MEASURING CUSTOMERS' FEELINGS TOWARD A BRAND EXPERIENCE E S F R H FUN RELEVANT ENGAGING SOCIAL HELPFUL Holds Provides Is efficient, Identifies Connects people’s clear and with people with easy and attention in customized adapts over individual each other an information needs and time entertaining wants way
EXPERIENCE LEADERS SET THE PACE FOR OTHER BRANDS THE FOLLOWING COMPANIES GARNER THE MOST BRAND LOVE FOR ONE OR MORE DIMENSION: FUN RELEVANT ENGAGING SOCIAL HELPFUL Experience leaders are high-scoring top of mind brands They set the experience expectations on specific dimensions These are the brands consumers recall as their most loved They are all digital
FOCUS ON UK RETAIL
Fun THE SHAPE OF LOVE IN RETAIL UK WE PLOTTED FIVE TOP RETAILERS IN THE UK ACROSS THE FRESH DIMENSIONS OF Relevant Helpful OUR LOVE INDEX Helpful, Relevant and Engaging dimensions drive each brand’s experience, giving the retail industry a unique shape Engaging Social
Fun AMAZON IS WINNING AT LOVE IN RETAIL Relevant Helpful The performance of the retail disruptor, AMAZON, demonstrates each of our retailers have work to do if they’re to maintain their position Engaging Social
BUT…YOU’LL ALWAYS BE Fun COMPARED TO THE BEST Retailers have a lot to do if they’re to Relevant Helpful meet their CUSTOMER’S LIQUID EXPECTATIONS. SOCIAL dimension is a big area for improvement, along with FUN How do you add fun, and social Engaging Social while still being on trend, engaging, relevant, super helpful?
Industry challenges continue to put pressure on sales & profits Slow Global Recovery Changing Customers Massive Overcapacity Disruptive, Fragmented Competition Steeper Tech. Adoption New, Demand-Reducing Shifting Costs Accelerating Price Curves Business Models Deflation
TO SURVIVE YOU MUST BE LOVED
THANK YOU
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