Is the Consumer Experience Broken - NAKU - Dr. Phil Hendrix

1 Helsinki – May 14, 2013 © immr 2013

Is Shopping Broken?– Presentation to NAKU (Helsinki)

May 14, 2013

Dr. Phil HendrixDirector, immr and GigaOm Pro analystwww.immr.org 1 (770) 612,1488phil.hendrix@immr.org@phil_hendrix

the Consumer Experience

Based on report:

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� Grading the Retail Shopping Experience†

� Consumer Experience (CX) End,to,End

� Mobile Impacts on CX†

� Consumer Motivations

� PEERSM Strategies

� Consumer Expectations

Overview

†Source: immr Shopping Survey n = 500 U.S. consumers

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Convenience Stores

Warehouse Clubs

Discount Stores

Grocery Stores

Drug Stores

Department Stores

Consumer Electronics

Home Improvement

Which Stores Are Consumers “Happy” with?

Source: immr Shopping Survey

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Which Stores Are Consumers “Happy” with?

1. Warehouse Clubs

2. Discount Stores

3. Grocery Stores

5. Drug Stores

6. Department Stores

7. Consumer Electronics

4. Home Improvement

Source: immr Shopping Survey *Convenience Stores not tested

Best

Worst

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How Happy Are Consumers with Retailers?

1. Warehouse Clubs

2. Discount Stores

3. Grocery Stores

5. Drug Stores

6. Department Stores

7. Consumer Electronics

4. Home Improvement

On Average:

1 in 4 “Very Happy”

Source: immr Shopping Survey

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1 in 4 “Very Happy”

53% “Very Happy”

vs.

How does that compare to Amazon?

Brick and

Mortar

Source: immr Shopping Survey

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Why Does this Matter?

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Why is Loyalty So Elusive?

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Discover Choose

BuyUse

CX = What Consumers Do

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End,to,End Consumer Experience

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End,to,End View of Customer Experience

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CX: Annoyances and Friction,less Aspects

†Source: immr Shopping Survey

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Mobile Improves Consumers’ Experience

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immr Shopping Study – Pt. 2

20 Mobile Apps

n = 500 Consumers

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Other immr Research Findings

62%“Try to buy things when

they are on sale, even if

it means waiting”

77%“Like to shop for

bargains”

58%“Like to browse in

stores, just to see what’s

new”

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Conclusion

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Consumers’ Motivations

MinimizingFriction

Tim

e

Annoyances

Uncert

ain

ty Cost

Bad o

utc

om

es

Ris

k

EnablingShoulds

Fit

ness

Savin

gs

So

cia

l

Gre

en

Ed

ucati

on

MaximizingWants

Fu

n

Fo

od

Accep

tan

ce

Avoid, minimize, or eliminate

“Satisfice” “Maximize”

En

tert

ain

men

t

Reco

gn

itio

n

“Good for You”(Resolutions)

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In the Ideal WorldI.

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Gears Often Aren’t Aligned

Gaps, disconnects and conflicts

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Symptoms of EDD† †(Engagement Deficit Disorder)

Showrooming

Returns

Churn Rate

Marketing $

Failure Rate

Uncertainty

Time

Risks

Costs

Indifference Regret

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“Terms of Engagement”

Right time

Relevant

Personalized

Rewarding

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Consumer Expectations

What

I Like

Who I

am… Where I

am

What’s

Nearby

What’s

going On

What I

respond to

What I’ve

bought

Where

I’ve been What

I need

Where

I’m going

Source: Dr. Phil Hendrix, How SoLoMo is Empowering Consumers, Transforming Shopping and Disrupting Advertising and Retailing

Trusted Business Partners should know…

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Engaging Customers ���� PEERSM Strategies

†Securely, with full transparency

Reinforce

Surprise/Delight

Remove Frictions

Learn† &Adapt

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Digital Signals ���� Key to Personalization

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Using Metaphors to Innovate CX

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Additional Perspectives†

†Request copies at www.immr.org

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Bio – Dr. Phil Hendrix

Dr. Phil Hendrix

Director, immrwww.immr.org

+1 (770) 612,1488

phil.hendrix@immr.org

@phil_hendrix

Dr. Phil Hendrix is the founder and director of immr, a research and advisory firm focused on

market opportunities afforded by new technologies, and an analyst with GigaOm Pro. He

specializes in helping organizations evaluate and capitalize on opportunities that are new to

customers and new to market. Dr. Hendrix has extensive experience uncovering customer

needs, identifying triggers and hurdles to adoption, and developing strategies that unlock

market opportunities, both B2C and B2B.

As an analyst, Phil focuses on mobile innovation and the implications for companies across

industries. He is a regular contributor at leading industry conferences, including GigaOm’s

Mobilize, Structure:Data, Street Fight (hyperlocal), ad:tech, iMedia Summit, Social Loco and

others. His current work focuses on mobile and its impact on consumer behavior, especially

shopping, M commerce and mobile payment.

As a consultant and advisor, Phil has led significant engagements with startups and Fortune

100 clients in mobile, consumer electronics, and related categories, including financial

services, transportation, insurance and others. He works closely with senior management

and project teams on key issues, including market sizing, segmentation, positioning, and

branding as well as innovation, user experience, and customer retention. Over the course of

his career, Phil has helped clients conceive and successfully launch dozens of new products,

services and businesses.

Before founding immr, Phil was a partner with DiamondCluster (strategy and technology

consultancy), founder and head of IMS (Integrated Measurement Systems), and a principal

with Mercer Management Consulting (now Oliver Wyman). He has held faculty positions at

Emory University and the University of Michigan, where he taught courses in marketing,

research, and buyer behavior for MBAs and executives. While at Michigan Dr. Hendrix also

held a joint appointment as a research scientist in the Survey Research Center, Institute for

Social Research.

Additional information on immr perspectives and reports prepared by Dr. Hendrix is available

at immr and Slideshare, with additional information available at GigaOm Pro.

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immr – Recent and Forthcoming Reports

� Drive Revenue and Customer Loyalty by Engaging Mobile and Social Consumers†

� Engaging Connected Consumers – Strategies for Brands, Retailers and Local

Businesses†

� If Shopping is Broken, Can Mobile Fix it?†

� Raising the Bar – Mobile and Customer Loyalty†

� Social + Location + Mobile: SoLoMo Analytics and the Transformation of Shopping†

� How Consumers Are Using Local Search

� Mobilizing the Enterprise with Custom Mobile Solutions: Pt. 1 and 2

� The Promise of Hyperlocal: Opportunities for Publishers and Developers

� Tuning into Consumers’ Digital Signals

� How SoLoMo is Empowering Consumers, Transforming

Shopping, and Disrupting Advertising and Retailing

� Location – the Epicenter of Mobile Innovation†Forthcoming

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Appendix

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Are Retailers Delighting Consumers?

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Moments of Truth