The Future of Retail Webinar by Engagis

Embracing Digital for Improved Service & Profit

The Future of Retail

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.

4,000+30+ 20,000+

99%+ 10 14

Connected Blue

Chip Customers

Individual

Retailers

Connected Devices

Under Management

Uptime Industries Years in Business

The Future of Retail

1. The Rules Have Changed

2. Adapting to Change

3. The Future of Retail

4. Next Steps

Today’s Webinar:

PART 1

The Rules Have Changed

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 elsewhere).

• As of 2015, mobile traffic online has now taken over desktop traffic.

MOBILE TRENDS

Source: Business Insider Australia (2014), Google 2015, Nielsen 2014, eMarketer 2014, PWC 2012, NRF Study (1),

Business Insider Australia (2014)(2), Nielsen (2014)(3)

• Online sales topped $15 BILLION in Australia last year and $1

TRILLION worldwide.

• Asia Pacific is the #1 market for eCommerce Sales.

• Online media influences more than 50% of total retail sales.

• Consumers use an average of 10.4 research sources prior to purchase.

ONLINE TRENDS

Source: Business Insider Australia (2014), Google 2015, Nielsen 2014, eMarketer 2014, PWC 2012, NRF Study (1),

Business Insider Australia (2014)(2), Nielsen (2014)(3)

• 51% of shoppers now use or want to use in-store kiosks for self-service.

• 60% of smartphone owners said they would use their phone to pay in store

if it meant they didn’t have to line up.

• 51% of shoppers are willing to use mobile shopping tools, but less than 5%

of retailers offer them.

RETAIL TRENDS

Source: Business Insider Australia (2014), Google 2015, Nielsen 2014, eMarketer 2014, PWC 2012, NRF Study (1),

Business Insider Australia (2014)(2), Nielsen (2014)(3)

MOBILE TRENDS ONLINE TRENDS RETAIL TRENDS

But while digital is changing the purchase

habits of consumers, over half of Australia’s

businesses have not responded.

MOBILE TRENDS ONLINE TRENDS RETAIL TRENDS

But while digital is changing the purchase

habits of consumers, over half of Australia’s

businesses have not responded.

35% of today’s

attendees

DO NOT HAVE

a mobile

optimised site.

!

Source: Business Insider Australia (2014), Google 2015, Nielsen 2014, eMarketer 2014, PWC 2012

73% of shoppers still prefer to physically interact with products in store before purchasing.

Only 6.5% of total Australian retail spend is currently online…

That leaves over 93% of

transactions still happening in store.

80%of companies believe they deliver ‘superior experience’.

Slide courtesy of Mash Up.

80%of companies believe they deliver ‘superior experience’.

8%of customers agree.

Slide courtesy of Mash Up.

80%of companies believe they deliver ‘superior experience’.

8%of customers agree.

Slide courtesy of Mash Up.

“Yet only 26% of

companies have a well

developed strategy for

improving the

customer experience.”

Adapting to Change

In fact retailers are investing billions to

make their brands eCommerce enabled.

But many are failing to integrate this online

activity into their bricks and mortar retail stores.

PART 2

Adapting to Change

The New Retail

86% of customers will happily pay

for a better customer experience...

Source: McKinsey (2013; Consumers: Life Online)

To create a customer experience that is…

Faster

Easier

Cheaper

More Personal

Adapting to change

PART 3

The Future of Retail

The Rules Have Changed

The CUSTOMER Pathway to Purchase

One Thing Has Stayed The Same

The RETAILER Pathway to Purchase

Omni-Channeling Is The Future

The Retail “Store” of The Future

In the

Home

At the

Store

On the

Go

The Future of RetailCreating 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

Attract

Mobile Marketing

Attract

Mobile Marketing

Attract

Digital Signage

Attract

Digital Signage

4% - 50% Increase in Sales

5% - 15% Increase in Enquiries

40%+ Increase in Message Recall

80% Improved Environment & Experience

35% Reduction in Perceived Wait Times

Source: Digital Signage Today 2014, Lyle Bunn 2014

Attract

Digital Signage - Behavioural Influenced Content

Attract

Digital Signage - Behavioural Influenced Content

Attract

Digital Signage - Behavioural Influenced Content

Entertain

Gamification

Entertain

Gamification

Engage

Solution Finders

Engage

Solution Finders

Engage

Solution Finders

Engage

Solution Finders

Engage

Tablet Solution Finders

Tablet Solution Finders

Engage

Engage

Solution Finders

Transact

Self-Service Kiosks

Transact

Self-Service Kiosks

Transact

Self-Service Kiosks – Through Window

Engage

Interactive Dressing Room

Transact

Mobile POS

Reward

Mobile Loyalty & Rewards

Measure

Capture Every Interaction

Analyse

Analyse the Data

Insights

Build A Customer Profile

Target

Change Behaviour

Personalising the Offer

• 700% increase in conversion ration versus traditional campaigns

• 72%+ of rewards recipients spend more than the amount of the reward.

• 88% of businesses with loyalty programs are more profitable than their

competitors without.

Source: Deloitte Loyalty Plus Research Study 2013, Capgemini Consulting Digital Shopper Study 2012,

DDB Mcdonalds Netherlands.

PART 4

Next Steps

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

Case Studies

Thanks

Leon CondonCEO

Engagis Pty LtdThe Engagement LabLevel 12, 213 Miller StreetNorth Sydney NSW 2060

T +61 2 8039 0651M 0414 266 366E leon.condon@engagis.comW engagis.com

Customer Support 1300 203 810