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Designing the New Shopper Experience

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LABS PRESENTS E R U he T T U F F O IL A T E R 16 20 Volume 6 | Published November 2015 | © PSFK 2015 DESIGNING THE NEW SHOPPER EXPERIENCE SUMMARY REPORT @PSFK | #FutureOfRetail


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GET THE FUTURE OF RETAIL 2016 The 6th annual report delivers insights on how to design the new shopper 
 experience to build value, drive sales 
 and boost loyalty. -10 actions every retailer can adapt to redefine the shopper experience -20 key trends driving change in the marketplace -Future service concepts for top brands -Perspectives from leading retail experts across the globe Download a full copy of the report at: psfk.com/future-of-retail


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ABOUT PSFK LABS PSFK Labs is an idea generation service. We leverage the research skills and editorial reach of PSFK.com to offer innovation and thought leadership services to the world’s most future forward companies, helping them to develop new products, services and ways to interact with their consumers. PSFK Labs has worked with Apple, BMW, Google, Nike, Red Bull, Samsung, Target and many other leading brands. The team also brings to life the themes of our Future of Retail reports with ideation workshops and immersive trend tours. If you are interested in seeing a presentation of this report or would like to understand how PSFK can help your team ideate new possibilities for your brand, contact us at sales@psfk.com


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ABOUT THE REPORT Over the last five years we have witnessed a radical shift in shopper behavior fueled by the seismic impacts of mobile and social. For our sixth edition of The Future of Retail report, I wanted to provide new guidance to all of the companies actively lining up their omnichannel shopping experiences in place. Piers Fawkes Founder & Editor-In-Chief PSFK.com & PSFK Labs Companies must look beyond traditional systems and devices and focus on the design of an intuitive and customized shopper experience. They must provide both utility and education to their customers with a narrative and program rich retail experiences that drive sales. This report will help us all to understand the opportunities for developing a shopper narrative and apply the lessons to their work so we create a new era of engaging, relevant and vibrant retail. LABS


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DESIGNING THE NEW SHOPPER 
 EXPERIENCE In a multichannel marketplace, with infinite information available at the tap of a screen, brands both big and small selling through Facebook, Pinterest and Instagram, and mobile alerts promising the next and the newest, today’s consumers are flooded with more options of what to buy and where to buy it from than ever before. Emerging technologies and their impact on consumer expectations require companies to take a different approach to retail, regardless of channel or platform. Scott Lachut President of Research & Strategy, PSFK Labs While utility and relevance form a solid foundation, retailers and brands must strive to deliver more to truly capture the hearts and minds of today's shopper. By tapping into an ecosystem of partners and a community of fellow customers, they can create a powerful halo effect, generating value for all who participate. In the Future of Retail 2016 report, PSFK describes the 10 Pillars of the New Shopper Experience and the key trends that are driving their adoption in the marketplace. Through the exploration of innovations in service, technology and design we highlight the ways leading retailers, brands and startups are responding to the demands of consumers and differentiating themselves from the competition. Expert insights and analysis offer further guidance as you look to inspire your organization and develop a forward-looking retail strategy.


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THE NEW SHOPPER EXPERIENCE Winning the hearts and minds of today’s shoppers can’t be accomplished with oneoff tactics, marketing campaigns or pointsbased rewards. Instead brand and retailers must develop a broader process that considers the core needs of shoppers, delivering utility, value and meaningful interactions at every point along their journey. The graphic below visualizes four key stages in the shopper experience lifecycle, showing how the 10 pillars identified in our study inform and build off one another to create a comprehensive strategy for driving increased engagement, repeat sales, word of mouth and lifetime loyalty. @PSFK | #FutureOfRetail


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10 PILLARS DELIVERING THE NEW SHOPPER EXPERIENCE ENHANCING THE PURCHASE PATH CREATING A VALUABLE COMMUNITY CREATE CONFIDENCE PERFECT PARTNERSHIPS ELIMINATE OBSTACLES OPTIMIZE OWNERSHIP BUILDING BETTER RELATIONSHIPS CULTIVATE COMMUNITY DEMOCRATIZE ACCESS ELEVATING THE TOP TIER RECOGNIZE & PERSONALIZE PROMOTE TRANSPARENCY @PSFK | #FutureOfRetail ENCOURAGE ADVOCACY DELIVER DELIGHT


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CREATE CONFIDENCE Providing shoppers with the tools and advice to help them discover new products and choose the option best suited to their lifestyles and needs. @PSFK | #FutureOfRetail


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CREATE CONFIDENCE Pirch Home Goods Retailer Lets Customers Get Up Close And Personal With Products @ThePirch


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CREATE CONFIDENCE Sephora Online Matching Service Guides Customers Towards Their Ideal Perfume @sephora


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CREATE CONFIDENCE Key trends to inspire confidence in shoppers Product Immersion - create opportunities for customers to get hands-on with products to decide which option is the best fit for them. Guided Recommendations - use one-to-one expertise or automated services to help people narrow down available choices, models and styles. @PSFK | #FutureOfRetail


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ELIMINATE OBSTACLES Saving customers time and effort along the purchase path through streamlined technology and services. @PSFK | #FutureOfRetail


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ELIMINATE OBSTACLES Macy’s + Hointer Scan Garments To Deliver Them Straight To The Fitting Room @Hointer @macys


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ELIMINATE OBSTACLES Starbucks Order & Pay Customers Place Orders And Pay For Coffee Without Having To Wait In Line @starbucks


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ELIMINATE OBSTACLES MikMak Shoppable Videos Update Infomercials For The Mobile Phone @MikMakTV


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ELIMINATE OBSTACLES Key trends to eliminate obstacles in the purchase path Anywhere Purchase Platforms - leverage emerging tools to allow shoppers to quickly discover and buy products anywhere they encounter them. Shop Ahead - provide digital services that allow customers to plan out and optimize every store visit before they go. One-Click Transactions - streamline the checkout process with services that automatically recognize shoppers and their preferred payment method. @PSFK | #FutureOfRetail


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DEMOCRATIZE ACCESS Opening the door for consumers to take advantage of services and experiences that were previously too exclusive or expensive. @PSFK | #FutureOfRetail


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DEMOCRATIZE ACCESS Stitch Fix Service Allows Anyone To Access A Personal Shopper @StitchFix


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DEMOCRATIZE ACCESS Rebecca Minkoff Fashion Retailer Creates Virtual Reality Runway Show @RebeccaMinkoff


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DEMOCRATIZE ACCESS Key trends to drive shopper access Customer Concierges - enable one-to-one relationships between customers and members of staff to deliver more personalized service and experiences. Aspirational Experiences - experiment with immersive 360degree and real-time video technologies to open new possibilities for how audiences experience a brand and its products. @PSFK | #FutureOfRetail


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RECOGNIZE & PERSONALIZE Putting systems in place for remembering and acting on the purchase history and preferences of customers, and tailoring those experiences over time. @PSFK | #FutureOfRetail


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RECOGNIZE & PERSONALIZE Walgreens Pharmacy Employs Shopper Data And Context To Anticipate Needs @Walgreens


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RECOGNIZE & PERSONALIZE Moda Operandi Streamlined CRM Solution Helps Personal Stylists Deliver High Touch Service @modaoperandi


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RECOGNIZE & PERSONALIZE Key trends to build a personalized shopping experience 360-Degree Service - provide members of staff with tools that enable them to build and act on the preferences of shoppers to deliver more personalized service and experiences. Predictive Assistance - develop sophisticated platforms that leverage known preferences and behaviors alongside key contexts to deliver relevant information and services that anticipate shopper needs. @PSFK | #FutureOfRetail


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PROMOTE TRANSPARENCY Being upfront with consumers about the policies and processes that underlie the products and services that they’re buying into. @PSFK | #FutureOfRetail


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PROMOTE TRANSPARENCY Waitrose Loyalty Scheme Allows Members To Pick Their Own Deals @Waitrose


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PROMOTE TRANSPARENCY Amazon Elements Product Line Allows Customers To Track Items From Creation To Expiration @Amazon


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PROMOTE TRANSPARENCY Key trends to give shoppers transparency
 Reciprocal Relationships - develop opt-in experiences that give consumers insight and control over their personal information, and deliver greater value around its use. Storied Products - give customers a behind the scenes look at the sourcing of products and their impacts. @PSFK | #FutureOfRetail


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GET THE FUTURE OF RETAIL 2016 The 6th annual report delivers insights on how to design the new shopper 
 experience to build value, drive sales 
 and boost loyalty. -10 actions every retailer can adapt to redefine the shopper experience -20 key trends driving change in the marketplace -Future service concepts for top brands -Perspectives from leading retail experts across the globe Download a full copy of the report at: psfk.com/future-of-retail


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PERFECT PARTNERSHIPS Creating additional value for customers by collaborating with like-minded companies to deliver expanded offerings. @PSFK | #FutureOfRetail


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PERFECT PARTNERSHIPS Virgin Hotels x Gap Hotels Group Partners With Apparel Retailer To Offer Reserve Ahead In Room Feature @VirginHotels @Gap


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PERFECT PARTNERSHIPS Instacart x AllRecipes Add An Entire Recipe’s Ingredients To Grocery List With A Single Click @Instacart @AllRecipes


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PERFECT PARTNERSHIPS Key trends to build brand partnerships Cross-Channel Rewards - build an ecosystem of partners and perks that reward engagement in broader variety of ways. Additive Experiences - enhance the experience of shopping and/or ownership by connecting with partners to deliver premium services, content and perks. @PSFK | #FutureOfRetail


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OPTIMIZE OWNERSHIP Building a responsive support network that provides expert service and educates consumers after a purchase is made. @PSFK | #FutureOfRetail


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OPTIMIZE OWNERSHIP Patagonia Branded Pickup Truck Tours Country On Apparel-Mending Mission @Patagonia


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OPTIMIZE OWNERSHIP Enjoy Product Experts Hand Deliver Electronics For Personalized Set-Up @goEnjoy


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OPTIMIZE OWNERSHIP Key trends to optimize ownership Cultivated Expertise - create educational initiatives that teach consumers new skills, while extending the usefulness of product offerings. Always-On Support - leverage a mix of text, video and AI services to provide real-time access a network of experts to troubleshoot problems and provide advice. @PSFK | #FutureOfRetail


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CULTIVATE COMMUNITY Creating opportunities for consumers and fans to come together around the halo of a brand to build value on top of existing products and services. @PSFK | #FutureOfRetail


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CULTIVATE COMMUNITY Björn Borg + Sprinter Underwear Brand Launches Dating Application Powered By Fitness Points @bjornborg


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CULTIVATE COMMUNITY Audi Unite Co-Leasing Program Lets Drivers Share The Benefits Of Ownership At A Reduced Cost @audi


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CULTIVATE COMMUNITY Key trends driving community engagement Cultural Hubs - set aside space within stores to push complementary services and experiences that go beyond core product offerings, creating marketplaces for relationships, not just products. Collaborative Marketplaces - experiment with new ways to make products a catalyst for shared connections - whether through knowledge, experiences or ownership. @PSFK | #FutureOfRetail


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ENCOURAGE ADVOCACY Tapping consumers for their knowledge and feedback to create opportunities for them to advocate on your behalf. @PSFK | #FutureOfRetail


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ENCOURAGE ADVOCACY Sony First Flight Crowdfunded Platform Allows Brands To Test Future Products @Sony


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ENCOURAGE ADVOCACY Chevrolet Car Buyers Given A Direct Line Of Communication To Vehicle Owners @chevrolet @whatsapp


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ENCOURAGE ADVOCACY Key trends to encourage community-led advocacy Shopper-Led Exchange - create opportunities for shoppers to share their advice and experiences with a community of other shoppers. Crowd Buy-In - utilize the power of community-based platforms to launch new ideas and solicit feedback from an engaged audience of fans. @PSFK | #FutureOfRetail


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DELIVER DELIGHT Providing unexpected perks and promotions that reenergize existing relationships and build on the broader brand promise. @PSFK | #FutureOfRetail


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DELIVER DELIGHT Kenneth Cole Exclusive Invite Allows Shoppers To Text To Open A Store Whenever They Want @kennethcole


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DELIVER DELIGHT Nike 45 Grand Secret Gym Offers An Invite Only Experience For Social Media Influencers @nike


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DELIVER DELIGHT Key trend to deliver delight Insider Exclusives - offer one-of-a-kind rewards and experiences to a top-tier group of customers and influencers to generate excitement and grow broader appeal. @PSFK | #FutureOfRetail


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THE NEW SHOPPER EXPERIENCE Winning the hearts and minds of today’s shoppers can’t be accomplished with oneoff tactics, marketing campaigns or pointsbased rewards. Instead brand and retailers must develop a broader process that considers the core needs of shoppers, delivering utility, value and meaningful interactions at every point along their journey. The graphic below visualizes four key stages in the shopper experience lifecycle, showing how the 10 pillars identified in our study inform and build off one another to create a comprehensive strategy for driving increased engagement, repeat sales, word of mouth and lifetime loyalty. @PSFK | #FutureOfRetail


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10 PILLARS DELIVERING THE NEW SHOPPER EXPERIENCE ENHANCING THE PURCHASE PATH CREATING A VALUABLE COMMUNITY CREATE CONFIDENCE PERFECT PARTNERSHIPS ELIMINATE OBSTACLES OPTIMIZE OWNERSHIP BUILDING BETTER RELATIONSHIPS CULTIVATE COMMUNITY DEMOCRATIZE ACCESS ELEVATING THE TOP TIER RECOGNIZE & PERSONALIZE PROMOTE TRANSPARENCY @PSFK | #FutureOfRetail ENCOURAGE ADVOCACY DELIVER DELIGHT


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GET THE FUTURE OF RETAIL 2016 The 6th annual report delivers insights on how to design the new shopper 
 experience to build value, drive sales 
 and boost loyalty. -10 actions every retailer can adapt to redefine the shopper experience -20 key trends driving change in the marketplace -Future service concepts for top brands -Perspectives from leading retail experts across the globe Download a full copy of the report at: psfk.com/future-of-retail


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LABS PRESENTS E R U he T T U F F O IL A T E R 16 20 Volume 6 | Published November 2015 | © PSFK 2015 DESIGNING THE NEW SHOPPER EXPERIENCE SUMMARY REPORT @PSFK | #FutureOfRetail


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