The Cloud Hits the Store How Digital is Changing Games Faster than Rules

Transcription

1 The Cloud Hits the Store How Digital is Changing Games Faster than Rules Presented by: David Marcotte Senior Vice President Insights & Business Intelligence ecrm - March 2011

2 Has it gone too far? 2

3 The Cloud as Democracy with Some Rules Understanding the Great Equalizer Digital: Capabilities that can be delivered via the Cloud to an extreme range of or between communication devices Important: In the Cloud all are Equal Retailer Manufacturer Shopper Lurker 3

4 A Story of Our Times Multi-Channel Failure and Digital Recovery 4

5 Digital Retailing: 20 Years on Source: Kantar Retail research & analysis 5

6 Why Retailers are Pushing: Most Valuable Shoppers Multi-channel guests spend 2x a store-only guest - $1,000/yr multichannel -$551/yr store-only - $94: online-only guest Online platform is critical to Best Buy s transition from: transactional to relationship-based business model Multi-channel customers transact twice as much as single-channel customers, spending 95% more and generating 80% more margin Multi-channel is here to stay CEO, Terry Lundgren Every dollar of online sales influences $5.77 of sales in stores Source: Kantar Retail analysis 6

7 The In-Store Evolution Gears Electronic Solutions Stores are far more expensive than sales forces Otherwise they would do an Apple Module Network Wireless Store or 7

8 The Consumer / Employee as Equal The Unknown Which specific tools, apps will be prevalent Smaller, mobile Vs. What s Certain More personal, integrated Much faster with far more capabilities Everything syncs Information follows you around Intuitive inputs Intelligent agents/ device-directed interaction 8

9 The Consumer as Digital Equal Feb 15 th 2011: 9,987,800 Downloads 9

10 With People You Get Generations Gen Y Boomer Tech-Ability "Gap" (ppt difference in Gen Y %- Boomer % smartphone owners participating in activity past 6 mos.) Source: ShopperScape June

11 Engagement and Generation Greatest Gen: Remote Boomers: Jitterbug 11

12 Engagement and Generation Gen X: Tools Gen Zed: Apps Gen Y: Integration 12

13 In-Between Gen X Needs in Digital are Tools Kraft ifood Assistant App Kraft Big Fork, Little Fork ipad App 13

14 Manufacturer: Lego Digital Box 14

15 Manufacturer: Influencing, Monitoring, Re-launch Influencing: Consumers choice Expectation of Value Retailer selection of key items Monitoring Reputation and risk Viral networking New Uses Relaunch Getting Message back on track Responding to consumer input 15

16 Manufacturer: Making it Viral On Purpose Old Spice was re-launched based on learning from Axe evolution Key to Axe: Cult status Key to Old Spice Renewal of Brand 16

17 Mfgr: How Your Product is Consumed Source: Cruvee/Vintank 17

18 Mfgr: Can You See Who is Your Consumer? Over 1,000,000 mentions of Kendall-Jackson on Twitter 18

19 Source: go.kj.com/mgprsa

20 Mfgr: The Payoff Measuring the impact of Social Media into the context of traditional marketing language Source: go.kj.com/mgprsa 20

21 All: Managing via QR Codes QR Code Source: 21

22 Retail: QR on Street / In Store Best Buy: Preparing for Price Prowlers 22

23 All: Lost of Control via Images Scan Find Buy 23

24 Retail: Great Example of QR Codes 24

25 Mfgr-Retail: The Cross Over Personal Points Incremental Rewards 25

26 The Future Really is Now Red Laser was so 2010 Next is Image Recognition Imposed Virtual Reality Package that Communicates with other Packages and the Shopper 26

27 Future: The Current Hot Thing Image Driven Digital Computing 27

28 Future: Reality Tissot Trying it On Virtually 28

29 Future: Product to Product Conversation The Arrival of the Full Package E-Paper: Xerox product from Paper changes graphically to currents being passed thru it Sing-a-ma-jigs: Fisher Price toy that harmonizes and talks in groups Cooperative Displays: Packages talk to each other and form one big media event at shelf 29

30 Future: The Next In-Aisle Madness Integrated Displays to Full Motion The New Viral Contests: Store to Store to Site to Package to Device 30

31 Kantar Retail Model: How Retailers Leverage Online Fitting Social Media, Information Services with Transactions Relational Transactional Functional Informational Breadth of User Experience Range of Online Offerings Source: Kantar Retail analysis, 31

32 Dave Marcotte Senior Vice President T M Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved 32