Stimulating growth internationally
1 like•175 views
1) The document discusses how data is the bedrock of consumer experience and how retailers can use data to personalize experiences for shoppers. 2) It notes that high performing retailers are more likely than underperformers to prioritize data in key areas like governance, agility, and security. 3) The document advocates that retailers adopt three "shopper-first mandates" - make it fresh by constantly renewing offerings, be where shoppers are through omnichannel presence, and give shopping meaning through loyalty programs and charitable initiatives.
Stimulating growth internationally
- 1. Stimulating Growth Internationally 13th November 2018 Jamie Merrick Director, Industry Insights & Strategy
- 4. Data as the bedrock
- 5. 39 technologies (on average) for consumer engagement
- 6. THERE’S A SOLUTION TO A POOR CONSUMER EXPERIENCE: DATA Awareness Engagement Personalisation Purchase Service DATA ? ?? ??
- 7. LOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE DATA ? ?? ?? IS THE BEDROCK OF CONSUMER EXPERIENCE… DATA
- 8. Especially in digital first shopping SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE Sources: NRF, Salesforce, IBM Ecommerce growth over 2017 peak trading period 18% 39% Mobile order growth YoY, Q3 2018 Site traffic: 60% mobile, 30% computers 63% 2.5 Consumers are creating 2.5 quintillion bytes of data daily
- 9. The role of data is critical but not prioritised SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE Elite Performers: +10% revenue in the past financial year Underperformers: flat or decreasing revenue in past financial year SECURITY GOVERNANCE CULTURE INSIGHTS AGILITY ELITE PERFORMERS VS. UNDERPERFORMERS 1.6x more likely 2.3x more likely 1.4x more likely 1.3x more likely 1.9x more likely 2x higher rates, on average Elite performers focus on data at
- 10. Underperformers lag in 3 key areas SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE 68% 63% 54% Don’t have clearly defined roles and governance for managing consumer data. GOVERNANCE Don’t respond to consumer demands and insights in an agile manner. AGILITY Don’t have rigorous compliance and security to monitor and protect consumer data. SECURITY
- 11. Data is critical for taking advantage of AI SALESFORCE AND DELOITTE, CONSUMER EXPERIENCE IN THE RETAIL RENAISSANCE Sources: PwC, Salesforce, Gartner By 2030, global GDP will increase 14%— $15.7 trillion — because of AI AI is the #1 technology where marketers expect to see the most growth over the next two years. By 2020, of customer interactions will be managed without a human. 85%
- 12. Here’s the proof We analysed data from … 150 million shoppers 250 million visits $550 million worth of orders 320 million shopper clicks to discover the impact of personalisation
- 13. Small share of website visits include a recommendation click You may also like: 6% Visits SHOP NOW
- 14. …but those visits with recommendation clicks are powerful Reflects share of visits, orders, and revenue in which shoppers click or tap a recommendation. 37% Revenue You may also like: 6% Visits
- 15. Recommendations create more engaged shoppers 4.5x Higher Cart Rates 4.8x More Product Views Per Visit 5x Higher Per-Visit Spend Shoppers that click (or tap) a recommendation provide:
- 17. The Squeeze on the Legacy Retailing Model Why do you choose to buy through a specific channel? Customer service (57%) Brands Product quality (60%) Product innovation (58%) Product uniqueness (48%) Marketplaces Price (56%) Product Variety (51%) Product Availability (50%) Inspiration (48%)
- 18. Be FreshBe Where I Am Give It Meaning 3 Shopper-First Mandates: What Shoppers Are Telling Us Make It Fresh
- 19. Be FreshBe Where I Am Give It Meaning 3 Shopper-First Mandates: What Shoppers Are Telling Us Make It Fresh
- 20. Connect to the shopper on their terms and context Web Search Online Marketplaces Website Social Media Source: Global Consumer Survey. Six Countries. March, 2018 N=6000. Values may sum to >100% due to rounding. Where are you most likely to start your hunt?
- 21. Mobile is the Source of Digital Growth Analysis reflects Q1 2018 / Q1 2017, same-site activity Computers | Tablets | Phones Order Growth Traffic Growth
- 22. Benchmarks for mobile visits and orders Source: SF Commerce Cloud Shopping Index Q3 2018
- 23. 83% Used Mobile In-Store (age 18-44, over the last 3 months) 47% Research Some shoppers conduct more than one above activity, thus sum of activities is higher than the whole. Age group: 18-44 27% Buy 59% Compare Prices
- 24. Shoppers prefer self-service Self-Service Always On – Mobile – Easy to Use of customers attempt self-service before contacting a live representative 81% Source: Harvard Business Review
- 25. From timeslot to timely
- 26. Be FreshBe Where I Am Give It Meaning 3 Shopper-First Mandates: What Shoppers Are Telling Us Make It Fresh
- 27. Three Elements of Fresh Constant Renewal Acting with Urgency Developing Unique
- 28. Retailers and brands lose 2nd purchase to marketplaces Q: Imagine you want to buy something you have never bought before. Which would you choose: retailer, brand, or marketplace? Q: Now imagine that you like the product and want to buy it again. Where are you most likely to buy the next time?
- 29. A closer look: who is buying beauty from Amazon?
- 30. Ever-ChangingNew Urgency 32% of product catalogues are new on a monthly basis 75% of site search queries are new each month Half of repeat buyers have made a 2nd purchase within 16days of initial purchase Fast Fashion has given rise to ‘Fresh Retail’
- 31. UniqueCollaborations Limited 36% Collaborations with influencers or other brands 59% Customized products Make It Fresh with Exclusive Offerings 49% Limited-edition products Shoppers are more likely to buy if brands offer:
- 32. Make It Fresh…Collaborations and Custom PUMA x M A C Converse CUSTOM
- 33. Make It Fresh… through Customization and Personalization #5 Overall Mystery Shopping Score, Top-3 for ‘Make It Fresh’ Customized Products In-Store Stride Analysis
- 34. Be FreshBe Where I Am Give It Meaning 3 Shopper-First Mandates: What Shoppers Are Telling Us Make It Fresh
- 35. ServicePurpose Loyalty Shopper-First Mandate #3: Give It Meaning 45% of shoppers are more likely to buy from a brand that offers a charitable donation 9% of shoppers had participated in a unique service experience… … 74% would do it again 66% of shoppers prefer to buy from a retailer that has a loyalty program
- 36. of shoppers are more likely to buy from brands and retailers offering a charitable donation with purchase. 45% Among Millennials and Gen Z: 55% Among baby boomers: 32%
- 37. Sephora blends loyalty and personalisation • Capitalising on “beauty FOMO” • Qualifies loyalty members for valuable experiences, like samples and events • Deep personalisation (Colour IQ, Skincare IQ, Fragrance IQ) • Top-notch in-store app capabilities
- 38. Connecting Service, Marketing and Commerce
- 40. Where shoppers shop Source: Global Cross Border Report 2018 (report link)
- 41. Most popular categories? Source: Global Cross Border Report 2018 (report link)
- 42. Outside in “The US is the largest export market for British online businesses and American shoppers bought an estimated £12.5b of goods from the UK” “China was identified as another key market for British-based online businesses, buying products worth an estimated £5.7b” All in the last 12 months Source: Global Cross Border Report 2018 (report link)
- 43. Two way street
- 44. Research Deep Dive Get the report now: sforce.co/renaissance
- 45. Research in full Get the report now: sforce.co/getshopperfirst