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Me-Commerce & the Future of Retail

DO STORES GET ME? = "Me-Commerce" and the Future of Retail Retail success today is all about developing the tech, tools, and talent to be relevant to the individual consumer. TRENDS ROCKING THE RETAIL BOAT Under Pressure THEN 33% NOW amazon Walmart The amount Amazon is forcing retailers to cut from their costs bases today. 15- 20% The amount Wal-Mart drove other retailers to cut from their cost base. Demographic shifts HISPANICS BABY BOOMERS will nearly double their retail spending are a source of big spending growth across several major categories, 2x in the next ten years including food MILLENNIALS 92% will account for one-third of all retail spending %24 and housewares 73% by 2020 Consumer Tech Revolution 8% of all retail sales come from e-commerce channels of all ecommerce sales 15 or 1.2% of all retail sales are estimated to come 2$ via mobile devices. The New "Four Ps" of Customer Behavior DY4 Pervasive 1% of all tablet use "Let me shop wherever I am." Occurs in bed. Participatory 50% of users have created content online. "I have a voice now and I am going to use it." of online buyers Personalized 35% are willing to share personal information to receive relevant coupons "Make it relevant to me." Prescriptive 44° of shoppers use their smartphones to look for the best "I'm in control of the price while in-store shopping process." MAKING THE JUMP TO “ME* Decode Each Customer Decision Journey 1010100 Evaluation 38% of shoppers have compared products online Consideration EUALUATE Purchase 50% 53% of shoppers search online of all retail purchases are influenced by digital channels for a product CONSIDER BUY BOND Loyalty ADVOCATE 23 EXPERIENCE Post-purchase experience 66% Each US household belongs to an average of 23 loyalty programs of consumers (Skin care) continue to research brand choice after purchase Bonding 25-45% telecoms customers go to stores after purchase Make Tech Work Harder ANALYZE: shopping behavior to provide tailored product recommendations 5-10% shopping volume increase reduction USE INSIGHTS: on customer preferences to improve supplier negotiations: 1-2% in fixed and unit costs %24 OPTIMIZE: pricing and promo scheduling based on multiple indicators: 1-2% point margin increase +/- Google/Shopper sciences, Zero moment of macro study, April 2011; www.google.com/think/insights; N = 5,003 Find the Talent Great companies get creative about finding talent. HIRE IT: ACQUIRE IT: GET CLOSE TO IT: Massachusetts Institute of Technology 85% Massachusetts Institute of Technology Stanford University HARVARD UNIVERSITY of acquisitions by Top 5 players Staples built an ecommerce innovation center in UNIVERSITY OF OXFORD are focused E E UNIVERSITY OF CAMBRIDGE Cambridge, MA., (near Harvard and MIT) on IT THE “ME" PAY-OFF 10% The increase in marketing ROI retailers see when they personalize ad campaigns and offerings based on purchase history. EBITDA growth rates for retailers who focus on customer analytics vs their main competitors: Grocery retailers: of all content viewed 11% O 3% VS personalized recommendations. Big box retailers: 10% 2% GILT Uses insights into Customer preferences to create specialized sites, which drive Vs ~50° of revenues. @McK_MktgSales McKinsey&Company http://www.pinterest.com/McKMktgSales/ A mckinseyonmarketingandsales.com McKinsey on Marketing and Sales %24 %24

Me-Commerce & the Future of Retail

shared by visually on Jul 17
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To demonstrate the trends in retail and capabilities that retails need to develop to compete successfully. This includes data on customer behavior and examples of best practice performance by various ...

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