THRIVING IN CHAOS JAN MAULDIN
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1 THRIVING IN CHAOS JAN MAULDIN
2 Video goes here:
3 CUSTOMERS!
4 WHAT DO WE DO NOW?
5 CUSTOMERS!
6 Customer Journey
7 Customer Journey
8 Our Customers Rack Room 53% made purchase in last 12 months Best customer: 7 purchases annually Have shopped in the past 118 days 75% have 1 or more kids 68% married 65% have total HH income: <$50K Age range: Off Broadway 56% made purchase in last 12 months Best customer: 5 purchases annually Have shopped in the past 128 days 69% have 1 or more kids 65% married 76% have total HH income: <$50K Age range: 39-59
9 Today s Consumers Are increasingly value-conscious driven Inhabit a portable, digital world Crave immediacy and instant gratification Seek stronger self-expression and peerto-peer engagement Display a fragmented (shop anywhere) but seamless (pick up anywhere) engagement style
10 THE STATE OF RETAIL
11 The Democratization Of Retail RISE OF DIGITAL TRANSFERS POWER FROM RETAILER TO CUSTOMER CUSTOMERS SHOP DIFFERENTLY Have pre-determined what to buy by the time they reach the store s front door Have specific, personalized actions in mind, fueled by information/inspiration they trust NOT CONTROLLED by retailer
12
13 The State Of Retail The majority of retailers are putting up aggressive ecommerce growth numbers between 20 and 30% Total retail $3,155 $3,313 US total retail revenues (billions) $3,479 $3,635 $3,799 Total ecommerce Total mcommerce $8 $12 $17 $22 $27 $226 $252 $278 $304 $ Total retail growth 6% 5% 5% 4% 4% Total ecommerce growth 12% 12% 10% 9% 8% Total mcommerce growth 129% 62% 40% 29% 21%
14 The State Of Retail 2015 Rack Room/Off Broadway ecommerce Revenue 2015 actuals: $8.2M RR:$5M OB: $3.2M.9% of total business 2016 projections: $12M RR: $8M OB: $4.0M 1.3% of total business
15 6.5% Digital and Mobile influence ON THE RISE of retail sales were online 93.5% through brick-and-mortar stores
16 Digital Influence The degree to which in-store sales are influenced by digital at some point in the shopping journey. Everyone is always online, there is no offline. It is not about the digital business, it is just business. It s not about ecommerce, it is simply, commerce.
17 % Do their research online Select the stores and departments they want to visit CUSTOMERS of customers interact with brands or products through digital before arriving at the physical store Identify the products they want to purchase
18 The State Of Retail Digital is the great competitive equalizer Since 2009, the volatility of market share increased every year The top 25 established retailers have lost nearly 2% of their combined market share
19 Digital and Mobile Influence on in-store sales
20 Digital influenced 64 % of in-store retail sales in 2015
21 The Impact Of Social 4x Consumers who use social media during their shopping process are 4X MORE LIKELY than non-users to spend more or significantly more 6x Consumers who consider themselves somewhat or very influenced by social media are 6X MORE LIKELY to spend significantly more than non-users (42% vs. 7%) due to their digital shopping experience
22 INFLUENCE THE INFLUENCERS
23 A FEW SIMPLE TRUTHS
24 a few SIMPLE TRUTHS in this chaotic retail world 1. Operating the physical and digital businesses separately is inhibiting focus 2. The digitally-enabled customer experience requires reinvention
25 a few SIMPLE TRUTHS in this chaotic retail world 3. Understand the transformed role of marketing Marketing must master CREATING AND ADAPTING an online environment that ENTICES the consumer, ENCOURAGES her participation and BENEFITS the bottom line.
26 UNDERSTAND THE TRANSFORMED ROLE OF MARKETING 1. Truly embody customer centricity into our marketing 2. Create a well-designed experience 3. Create content that delivers
27 STORYTELLING
28 Understand The Transformed Role Of Marketing STORY TELLING The Brand Shift is away from telling people our stories, to empowering our customers to tell the story for us Instead of talking AT our audience, create experiences worth sharing
29 Understand The Transformed Role Of Marketing STORY TELLING The Brand Earn the right to share their voice, then curate the story they tell Produce something remarkable Nurture our own media based on the goodwill we will earn
30 Understand The Transformed Role Of Marketing When we tell stories that connect to people and to their lives, they will: follow us like us download us tweet us share us with friends and embrace anything we represent
31 Understand The Transformed Role Of Marketing STORY TELLING The Brand Brands are built from the heart and are authentic, passionate and sustainable. They come from a place of love and passion within the human spirit.
32 The Off Broadway Brand Story It s about fashion It s about surprise and delight It s about obsession It s about trend-right styles, the brands you love, at a great value
33 The Rack Room Brand Story It s about family It s about the every day, ordinary and extraordinary, moments that matter in life It s about trust, respect, and authenticity It s about REAL PEOPLE
34 OURBrands Telling stories about our brands in unique and compelling ways is still the end game
35 THEBrand Experience is the brand. Customers are the brand. You are the brand.
36 Thriving in Chaos Disruption is the new reality The market place is very noisy and increasingly competitive New sales/marketing/ engagement platforms are launching every day
37 Thriving in Chaos Context and relevance is key Reciprocal and mutually empowering relationships between brand, retailer and shopper/consumer will drive future relevance
38 Thriving in Chaos All brand and retailer activity seen as part of the experience Today, one bad, or good experience, can impact 1000 s by way of social media Expectations and experiences are changing
39
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