The Final Mile

Marcy Larsen

Microsoft Retail Industry Executive

marcyl@Microsoft.com1

Empowered Workforce

WHERE THE WORLD IS GOING

Today, we live in a

mobile-first, cloud-first world

Empowered Workforce

Head Office

Suppliers

Stores

Consumers

Innovate and adapt in a world of constantly changing business needs

of successful transformations

engage & energize through ongoing

communication and involvement

64%

McKinsey, “The Social Economy”

Get more done across stores, HQ, partners, suppliers

boost in productivity

with social

20-25%

McKinsey, “The Social Economy”

Bring your intranet to life with social, mobile, and business data

Less time spent searching for company

information by using social technologies

35%

McKinsey, “The Social Economy”

Higher Productivity

Lower Turnover37%

64%Give your store workers a voice and encourage them to make a difference

Yammer

Gallup

Consumer experience is paramountThe End to end experience

Slow Retail, Niche Retail, Me Retail, the store as the 3rd room

High, Low but not middle

Clubs are in, shops are out

Less about conversion, creating a convert for life, store is a catalyst for experience

But

Amazon has a patent on store without workers

Prediction for a Reduction in human staff

Robots & Kiosks becoming mainstream

Paid Search cost per a site visit vs. number of stores

Source: SEMRush, L2 Inc, Nov 2015

Step 1 2 3 4 5 6 7 8 9

Social

Search

Web Site

Visit

Contact

Centre

In Person

“Bricks &

Mortar”

Recommendation

Intent

Organic

search

AD Content

20% click on

relevant paid retail

search Ads 1

Call

centres

$16.6 bn

Purchased

online 3

~7% of all AU

retail sales

Local

stores

33%

Additional

re-search

in-store 2

Share on

social

media

4 M

Unique AU Bing

Searchers 2

Click &

Collect

15-50% of

online sales 4

Purchase

In Store

93% of all

retail sales 3

Share on

social

media

Australian retail customer journey

1. Hitwise Paid v Organic traffic Feb 2015. 2. comScore qSearch Explicit Core Search, June 2014. / AU: Nielsen, September 2014.

3. Online Retail Sales Index: In depth report – January 2015. 4. SMH march 2014; 'Click and collect' boost Australian online retailers.

14

Retail Systems Research

Full Study at - http://www.rsrresearch.com/2015/07/16/empowering-the-store-employee-benchmark-2015/

TRANSFORM YOUR EMPLOYEE PRODUCTIVITY

Employee-owned devices Storage and document

management Smart meetings

Collaborative

business intelligence Collaboration

16

https://blogs.office.com/2015/07/21/building-on-a-global-

culture-of-tradition-and-innovation-to-boost-customer-

service-and-artistic-excellence/

Reimagining the client experience to realize

the branch of the future

Using technology to unleash innovation, speed time to market, and gain a competitive advantage

Aligning all channels, sharing expertise across branches, building on existing Lync platform

Top quartile

(very satisfied)

client surveys

Reducing client

service costs

CO

ST

38%of enquiries shifted from branch to video banking channel

Reducedwaiting time33 %

branches

& outlets

employees763 29.5K

ATMs3,382

37

6.7Mclients

ALIGN ACROSS ALL CHANNELS

countries across Africa through Ecobank alliance

18

Productivity solutions inEngage employees, deliver personalized customer experiences, and improve efficiency

Store

Associates

Engage store associates to help

serve customers, reduce turnover

Reach experts faster to answer

customer questions, drive sales

Improve information sharing and

efficiency with role-based portals

Sales and

Marketing

Gain a 360° customer view to

serve omni-channel interactions

Keep marketing teams in sync on

campaign details

Analyze sales performance to

optimize marketing decisions

Buying and

Merchandising

Gain deeper insights to identify

market trends and meet demand

Evaluate supplier proposals,

capture greatest value

Communicate effectively with

suppliers across channels

Store

Management

Gain insights into store

performance

Work effectively from the store

floor to back office

Help personalize the customer

experience to drive store revenue

Store

Operations

Human Resources

Comms

Customer

Best Place to work

Increase employee engagement

Reduce Staff turnover

Product & Brand ambassadors

Streamline Communications

Amplify customer feedback

Latest Product/Program information

Quick response to market, recalls

Re-balance staff to customer knowledge

Best Place to work

Increase employee engagement

Reduce Staff turnover

Product & Brand ambassadors

Streamline Communications

Amplify customer feedback

Latest Product/Program information

Quick response to market, recalls

Re-balance staff to customer knowledge

“Include collaborative design elements that

create more direct communication channels

across process hierarchies so that frontline

employees feel that leadership teams are

hearing their unfiltered voice directly”Gartner, Leverage Digital Workplace

Initiatives to Better Connect Employee and

Customer Experience* *Mike Gotta, Elise Olding, 29 May 2015

2

0

Provide FeedbackDiscover Product Visit Store Consult Expert Purchase Product Review Sales Target Customers

Regional numbers visualized in a map view show lower comparative product

sales in the Southeast.

Information inspiring

action.

Review Sales

“The cloud-based communication and

collaboration tools in Office 365 help to

promote personal mobility and business

agility: the foundation Accor needs to

compete in today’s global economy.”

— Marc Champsaur, VP Internet, Intranet, Franchise and Mobility, AccorDigital Workplace -Retail & Hospitality

EPG | MICROSOFT CONFIDENTIAL23

Social solution for taking ideas from concepts to reality.Made for Office 365: SharePoint, Yammer & Project, SharePoint 2013 On-premise or Microsoft Azure.

Free whitepaper

download from

Microsoft

http://aka.ms/IMF

Share ideas,

knowledge and

content

Find expertise and

knowledge

Augment decision

making with

consensus

Communicate and

collaboration

without barriers

Envision Engage Evolve Evaluate Execute

OUR APPROACH TO DIGITAL TRANSFORMATION

RESULTS

Adopt

Measure

Realize

REIMAGINE

Research

Envision

Design

ROADMAP

Plan

Prioritize

Produce

Imagine and envision the

art of the possible through

business, technology, and

experience perspectives in

parallel

Build desired state to

get from where you

are to where you

desire to be

Deliver business value

and outcomes that result

in business performance

improvement

Unlock innovation with a cohesive platform and skilled partners

Build on what already works Lean on trusted support and expertise

Explore Microsoft to reimagine your stores

28

learn more at…

www.microsoft.com/retail

interested in live events

visit us at…

• Retail Experience Centre –

Redmond

• NRF 2016 – New York

• Our New Sydney Flagship

Store!

Rethinking customer experience

Controlling efficiency of operations

Reimagining the retail value chain

Empowering workforce for efficiencies and service

Delivering relevant and customized service

Proactive store monitoring Predicting propertyMaintenance needs

Enabling Service Innovation

thank you.. come see for yourself

Improving store efficiencies