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The Future of Retail Embracing Digital for Improved Service & Profit Leon Condon, CEO, Engagis

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The Future of Retail Embracing Digital for Improved Service & Profit Leon Condon, CEO, Engagis


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Engagis is a recognised leader in customer & staff engagement solutions and digital display technology. Established in 2001 with offices in Sydney, Melbourne & Auckland.


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4,000+ 30+ 19,000+ 99%+ 10 13 Connected Blue Chip Customers Individual Retailers Connected devices under management Uptime Industries Years in Business


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Key Learnings How to Empower Your Customers and Staff How to Create Personalised & Contextual Offers How to Measure Engagement How to Develop an Effective Digital Strategy


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The Future of Retail Today’s Webinar:


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The Rules Have Changed Customers no longer shop exclusively in bricks and mortar stores. Whether at home, on the go or in store, shoppers are now using multiple channels to search, compare and transact.


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The Rules Have Changed Smartphone Penetration rocketed from 19% in 2007 to 84% in 2014. 94% of shoppers research products and services on their smartphone. 47% now actively engage in Showrooming (viewing products in-store then buying them cheaper elsewhere). The number of Australian online stores DOUBLED between 2010 and 2012, making us the leading country in the world with regard to the most new e-commerce stores. Online sales topped $15 BILLION in Australia last year and $1 TRILLION worldwide. Source: Business Insider Australia (2014), Google 2014, Nielsen 2014, BandT 2013, PWC 2012) The days of ignoring digital are gone.


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The New Customer 51% of shoppers are willing to use mobile shopping tools, but less than 5% of retailers offer them. 51% of shoppers now use or want to use in-store kiosks for self-service. 60% of smartphone owners said they would use their mobile phone to pay in-store if it meant they didn’t have to wait in line. Source: NRF Study (1), Business Insider Australia (2014)(2), Nielsen (2014)(3) The way customers communicate with each other is vastly different to how retailers communicate with their customers.


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The New Retail Based on price alone, retailers can’t compete with online. HOWEVER 73% of shoppers still prefer to physically interact with products in-store before purchasing. Only 26% of companies have a well-developed strategy in place for improving the customer experience. 6.5% of total Australian retail spend is currently online… Source: Business Insider Australia (2014) (1), Forbes 2014 (2), NAB Online Retail Sales Index 2014 (3), Mediapost (4) Online media influences more than 50% of in-store sales.


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80% of companies believe they deliver ‘superior experience’. Slide courtesy of Mash Up.


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80% of companies believe they deliver ‘superior experience’. 8% of customers agree. Slide courtesy of Mash Up.


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But while digital is changing the purchase habits of consumers, 80% of businesses have not responded. e.g. don’t yet have mobile-optimised websites.  (Source: BandT 2013) But Are You Ready? 54% of attendees don’t have mobile optimised websites.


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Summary – The Rules Have Changed The shopping process has changed Consumers clearly do not exclusively use either online or offline channels but rather navigate across devices at different stages of the shopping process. What was once a sales message is now a conversation People today find and share information in their own way, in their own time. Consumers now demand an integrated experience Delivering customer engagement anytime, anywhere, from the shopfront to your customer’s home, is a key part of offering an integrated experience today.


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The New Retail 86% of customers will happily pay for a better customer experience. The new retail currency is the customer experience. Source: McKinsey (2013; Consumers: Life Online)


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Retailers are investing billions to make their brands e-commerce enabled. But many are failing to integrate this online activity into their bricks and mortar retail stores. Adapting to change What’s the solution?


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Retailers must offer the benefits of Online… In-Store. To create an experience that is faster, easier, cheaper and more personal.  Adapting to change


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What Customers Want Customer expectations have changed, they now want a shopping experience that is: Faster Easier Better Value More Personal How Retailers Can Respond In response, retailers need to identify customers early, get to know them and make offers that are: Timely Relevant Contextual Targeted


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  The CUSTOMER Pathway to Purchase One Thing Has Stayed The Same   The RETAILER Pathway to Purchase


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Omni-Channeling Is The Future Digital Displays Touchscreens Video Walls Sales Apps Self-Order Kiosks Sensors (NFC, RFID) Smartphones Tablets Interactive Glasses Interactive Watches Mobile Loyalty Personal Computers Smart Phones Tablets Interactive TVs


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The Retail “Store” of The Future In the Home At the Store On the Go


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The Future of Retail Creating Connections along the Pathway to Purchase Digital Signage Electronic Shelf Labels Digital Ticketing Location Based Advertising Gamification Interactive Gaming Video Walls Touch Screens Augmented Reality Mobile Apps Solution Finders Digital Catalogues Staff Tablets Digital Wayfinders Secure Merchandising Remote Activation Online Ordering Mobile Ordering Self-Order Kiosks Mobile POS Systems Mobile Loyalty & Rewards Staff Communication Portals Staff Training Systems Audience Tracking Shopper Insights Portals


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ROI of the Digitally Connected Business ATTRACT (Digital Signage) + 32% Increase in Traffic + 30% Increase in Sales TRANSACT (Assisted / Self-Ordering) + 22% Increase in Sales REWARD (Mobile Rewards & Loyalty) + 72% of rewards/gift card recipients spend more than the amount of the reward. Source: Engagis 2014


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Attract Digital Signage From $48/wk Pricing based on Total Cost of Ownership of 40” Display, 100+ sites over 3 years


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Attract Intelligent Digital Signage


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Attract Mobile Loyalty From $25 /store /wk Indicative pricing based on Total Cost of Ownership, 100+ sites over 3 years


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Entertain Interactive Gaming / Gamification


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Engage Interactive Dressing Room


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Engage Solution Finders From $26/wk Indicative pricing based on Total Cost of Ownership, 100+ sites, 3 years


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Attract > Engage Solution Finders


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Attract > Engage > Transact Self Order Kiosks


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Attract > Engage > Transact Interactive Shopping Windows


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Engage > Transact Mobile POS


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Transact Scan as you Shop


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Measure Capturing Every Interaction Passers By Walk Ins Message Recall Product Lifts Product Interactions Catalogue Searches Transactions Offers & Redemptions


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Analytics via Shopper Insights Portals Analyse


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Engagement Scorecard


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Offers and Campaigns Using the Data


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Reward > Attract Mobile Loyalty From $25 /store /wk Indicative pricing based on Total Cost of Ownership, 100+ sites over 3 years


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Case Studies


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Key Learnings How to Empower Your Customers and Staff How to Create Personalised & Contextual Offers How to Measure Engagement How to Develop an Effective Digital Strategy


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Developing a Strategy Understanding what you CAN do vs what you SHOULD do


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Strategy Define objectives Map your customer’s pathway to purchase Identify touch points and explore relevant technology options Review ROI Provide a detailed technology road map addressing business goals Solution Design and Prototyping Prepare a fully interactive demonstration of the recommended solution Rapid Pilot Testing Build > Measure > Learn > Improve Next Steps


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Why Digital? Why now? The dramatic reduction in the cost of hardware The speed and quality of internet connections The availability of rich, compelling content The customer’s avid acceptance of technology The ability to measure all interactions


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Key Learnings How to Empower Your Customers and Staff How to Create Personalised & Contextual Offers How to Measure Engagement How to Develop an Effective Digital Strategy


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Creating the Connected Experience “In the near future all forms of digital media will be seamlessly and expertly embedded into retail environments, creating an unparalleled shopping experience that puts the customer first.” - Bob Greenberg, CEO R/GA


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Leadership in Digital Communications and Customer Engagement Thank You


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Leon Condon CEO Engagis Pty Ltd ABN 98 098 945 469 Level 5, 144 – 148 Pacific Highway North Sydney, NSW 2060 T +61 2 8039 0651 M 0414 266 366 E leon.condon@engagis.com W engagis.com Customer Support 1300 203 810


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