NRF 2014 Retail Trend Report: Bring your omni-channel strategy to life with in-store technology

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Information about NRF 2014 Retail Trend Report: Bring your omni-channel strategy to life...
Technology

Published on July 9, 2014

Author: t1visions

Source: slideshare.net

Description

This year's NRF show introduced new and emerging technologies that are elevating retail to the next level. Much of this is geared to enhance the customer's experience - who is now demanding more than ever before. In case you missed #NRF14, we've compiled our notes and observations into our NRF 2014 Retail Trend Report - now available for download.

In the report, you'll find:

Key trends from 2013 and what it means for 2014
The Rise of the 'Shipping Wars' and how Retailers can adapt
How to create frictionless experiences for customers
Interactive in-store solutions to augment your omni-channel strategy

First Look: ! What to Expect in Retail in 2014 Notes, Observations, and Key Trends from NRF 2014

2013 was a great year for eCommerce •  Average YOY growth = 29% •  Trending upward: 2014 eCommerce expected to reach $300b •  Online-influenced sales grew significantly – Web-research driven / pre-shopping behavior that leads shoppers to the physical store – 2013 estimated at $1 trillion; 2014 expected to increase 2  

2013 Holiday Recap •  November was extremely strong •  50% of holiday shopping is actually for SELF (not others!) •  Growth in early December softened •  Huge spike in last minute shopping –  Dec. 22-23 were strongest days –  Largely due to extended / “guaranteed” shipping promises made by retailers –  Aggressive shipping plans promised by retailers were overconfident: many retailers had to refund purchases they couldn’t deliver on time •  Cyber Shoppers deliberately avoid stores during the holidays –  Consumers spend greater portion of wallet share online in Q4 –  Email is still highly effective in communicating promotions / deals for consumers – driving a lot of traffic to purchase in Q4 3  

So What Happens Next… •  “Delivery Wars” are just beginning –  Couriers –  Drones (4-5 years…) –  Same day delivery –  Shipping rates will drive competition in Retail •  Consumers EXPECT low shipping costs or won’t make a purchase unless retailer is offering free/ discounted shipping… 4  

Shipping as the “Achilles Heel” of Retail •  USPS is in dire straights –  Major carriers still rely on USPS •  USPS delivered 30% of FedEx shipments in 2013 holiday season •  USPS must change / adapt: –  Declining volume and rising expectations from consumers for faster / more affordable options are driving these changes –  Cost Reductions: •  Retail shared deliveries with neighboring stores •  Clustered delivery boxes •  Fewer delivery days in the week –  Cost Increases: •  First Class •  Parcels – very profitable for USPS – and relatively inelastic for retailers since they MUST get packages to consumers •  Business Delivery (catalogs, magazines, direct mailers…expect these cost contracts to rise) 5  

Shipping’s Savior: the Physical Store In-Store Pick-up + Ship-to-Store options –  Reduces cost pressure –  Reduces time pressure –  Brings consumers back to the physical store 6  

eCommerce will drive traffic to Stores •  Given the shipping challenges retailers face, 2014 will present opportunities for the retailer to reconnect with consumers via in- store pick-up programs •  How will retailers capitalize on these visits? –  Must blend the online and physical store –  Create a seamless experience that connects eCommerce with pick-up and store visits –  Omni-channel investments will insulate retailers from becoming casualties of the “Shipping Wars” 7   inTouch™ Retail Table w/32” Ultra HD 4K touchscreen inTouch™ 80” Interactive Wall

What about mobile? •  9% of all 2013 sales were made via mobile phone (excluding tablets) –  Mobile experience is overwhelmingly disappointing –  Strong numbers suggest consumers are willing to suffer through poor mobile experience to make purchases from their phones •  Retailers are slated to invest in mobile in 2014 – need to reduce friction between mobile / eCommerce / in- Store experiences 8  

Frictionless Experiences •  Mobile = 1st Screen; Reality = 2nd Screen – Mobile is the most important screen, but it’s not the only one… •  Experiences on mobile / in-store must complement one another •  Omni-channel = looking at this system as one whole; connecting the dots between mobile / eCommerce / in-Store 9  

Contextually Aware Marketing •  51% of consumers want mobile apps that recognize their location within a store and send relevant discounts and promotions •  80% want mobile apps that will be useful to them when they want to make a choice between products •  Mobile experience should tie- in to physical experience: create links to blend these two and better the overarching brand experience 10   Welcome back, Kim! Check out our newest sandals… they’ll go great with the capris you picked out last week. Just for visiting us today, we’d like to offer you 15% off! Customize messaging, product recommendations, and promotions via mobile.

Dynamic Digital Signage •  Digital Signage is an opportunity to tailor messaging to specific customer •  Mobile phones and Loyalty cards as identifiers –  QR / NFC / BLE tie-ins •  Recognition Tools –  Gender / Emotion / Age recognition can work twofold: •  Dynamic content creates personalized experience for customer •  Provides demographic data on customers entering store / what content they are identifying with 11  

Experiences > Sales •  In-Store Interactive Solutions –  Physical Tables, Walls, Signage that customers can directly interact with –  Empowers retail associates with the tools they need to deliver better experiences to the customer –  PSFK’s Future of Retail Report •  Technology Tables increase sales 10% per location •  Associates knowledgeable about inventory in-store AND online via in-store technology tables 12  

Data, Data, Data •  If it’s not measured, it’s meaningless… –  Identify key metrics before implementation –  Identify solutions that can measure activity and in-store shopping behaviors and patterns for ongoing analysis 13  

Conclusions for 2014 Retail 1.  Shipping = opportunity to bring shoppers back to the store via in- Store Pick-Up Program •  Retailers must capitalize on this by blending online environment with in-store environment for a cohesive brand experience 2.  Mobile = opportunity to augment in-store experiences with contextually-aware messaging and promotions for shoppers 3.  Digital Signage = opportunity to present dynamic content by automating demographic recognition or allowing for shoppers to opt-in via mobile or loyalty card 4.  In-Store Interactive Solutions = opportunity to increase interactions AND provide tool to store associate to improve the customer’s experience by blending online/mobile/in-store channels in one central place 5.  Metrics = Everything. The more data, the more you can customize the end experience. 14  

Learn more about our retail experiences: t1visions.com/markets/retail 15  

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