AUTUMN/WINTER 2016 EDITION 06 - Squarespace
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INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016 ISSUE 06 CONTENTS 03 The Home, The Store, The Person 07 Amazon Echo and Alexa 11 Connected Customers Need a Connected Journey By Neil Caddick 15 Ralph Lauren - Polotech 18 Vinaya 21 Tesco F&F Auto Replenishment 23 Body Labs 27 49ers Stadium App 29 Wrapping Up Rob Smith Managing Director Blueleaf 01 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
WELCOME TO OUR LATEST INSPIRING GREAT RETAIL REPORT, ALL ABOUT CONNECTED COMMERCE. Connected Commerce. What does it mean? What are the possibilities? This IGR focuses on this rapidly growing area of commerce. What makes a good connected experience? Who is using technology such as voice recognition, beacons and RFID effectively? Are we still at the gimmick stage or is it useful for the majority of consumers? There’s a lot to explore in this area and only one thing is certain - it’s very exciting times for retail, especially if you have a physical presence as well as online. One of the key elements to recognise is that I hope you enjoy our latest report. I’m always the technology to power these experiences is open to feedback so please drop me a note with not only possible, but the price of the sensors your thoughts to rob.smith@blue-leaf.co.uk, I’d and connections has fallen so significantly love to hear from you. I’ve been flattered by that it can be cost effective to deploy the feedback received so far so please be kind connected initiatives. The combination of this but also be honest; we want our reports to and consumer adoption of things that are keep helping and inspiring you. very useful to their journey is key for a great connected experience. Thanks and enjoy. blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 02
CONNECTED COMMERCE / THE HOME, THE STORE, THE PERSON HOME THE STORE THE PERSON THE Before we dive into the examples in this report I want to explore the fact that there are three main ways where you or your devices will ‘connect’. These are the home, the store and the person. There’s a lot of spaces in between, like the office, your car and general public spaces but there’s no doubt that the three primary ones are home, store and yourself in terms of retail commerce. 03 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / THE HOME, THE STORE, THE PERSON THE HOME 25% of consumers in Let’s have a quick tour of the home and the UK currently own what’s possible. at least one smart home Connected appliances: monitoring of device. 36% of consumers appliance performance, filters, emptying water and so on, all useful utility-based services. Same say the main barrier for energy consumption, heating etc, not quite as to adoption is cost to commerce-focused though. purchase, followed Connected storage: things like pantries, cupboards, fridges, these have a lot of potential for by 25% who say it is restocking / auto reordering. They also have a content knowledge of products. play, eg recipes based on their contents. Source: Data Select, Ambient sensors / listening: things like survey of 7,000 consumers. Amazon Echo, featured in this edition, also form part of the furniture and the lifestyle. While there’s a lot of opportunity for retail in the home, we need to be aware that for many people, the home is a very private space. So bombardment of advertising messages within the home (unless through a device like a TV) is unlikely to work. The commercial opportunity is more around utility and lifestyle than direct purchase. blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 04
CONNECTED COMMERCE / THE HOME, THE STORE, THE PERSON THE PERSON The person is a really interesting part of the equation. We’re all individuals and so we do things in a great variety of different ways. Who we are: body shapes, preferences, location, wealth, there’s a great many things that can connect and drive with sensors and data. Activity: where we go, how we get there, how THE STORE active we are and what we consume is all a gold mine of information to use for retail and beyond. The store is a whole other matter. There’s a lot of opportunity to personalise a shopper’s journey. There’s a lot to explore in the store and many powerful ways to continue our quest for a Payment: seamless payment via mobile frictionless journey towards getting what device could even get to the point that as you we want. In a world that is angled towards walk out of the store with the goods you are experiences rather than things (at least at time checked out. of writing) retailers will need to work hard to make the purchase an experience in itself and/or align experiences to purchases as enablers According to a recent Connect of experiences. Commerce report conducted by DigitasLBi, 35.1% of fashion Right, let’s dive in. purchases are spontaneous. So imagine the potential here. Finding: apps/augmented reality could easily move you from the front of the store to exactly where your items are located, or could have them ready for you to try on based on your proximity to the store. Choosing: the potential here includes virtual mirrors allowing for assistants to bring different sizes or for you to talk with friends or ask opinions and get recommendations on the fly or make suggestions based on your diary for upcoming events. The DigitasLBi report also discovered that 37.1% of online purchases are not made alone. 05 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
AMAZON ECHO AND ALEXA It’s taken a couple of years, but Amazon’s Echo smart speaker and its accompanying Alexa personal assistant have finally jumped across the pond and landed on UK shores, ready to revolutionise the way consumers act in their own homes. 07 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / AMAZON ECHO AND ALEXA Amazon’s Echo device is a smart speaker system, able to connect via Bluetooth to your music devices. But more significantly, Echo is voice- controlled and wi-fi enabled, meaning you can vocally ask it to play your Amazon Music playlist without connecting it to a device or even pressing one single button. The physical technology is a 9-inch Echo smart speaker, weighing just over a kilogram (smaller Echo Dot speakers are also available). The speaker packs in a 2.5-inch woofer and 1.0-inch tweeter and comes with Amazon’s very own lovely assistant – Alexa – who is most certainly the brains behind the operation. She lives in the cloud, powered by Amazon Web Services, and has the ability to do a lot more than just play your music. Her name is her ‘wake word’, say it at the beginning of a request and, always listening, Alexa will come to life. She can order your favourite pizza from Just Eat, tell you the height of the Gherkin, set a timer, create a to-do list and even request an Uber. Officially launched in the US in 2015, those who own one rave about Alexa’s abilities, with over 40,000 Amazon reviews, 85% of which rate the gadget four or five stars. The e-tail giant also threw some serious marketing dollars at the technology during the Super Bowl earlier this year, with a series of adverts starring Alec Baldwin. Echo is expected to be very popular in the UK too, despite it being quite creepy that Amazon is listening in to the conversations its customers have in their own homes - something which has raised privacy concerns. blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 08
CONNECTED COMMERCE / AMAZON ECHO AND ALEXA What Amazon managed Forrester’s ‘Data Smart Home Devices Forecast 2016-2021’ predicts 7.1 million households in the to prove with its Echo US alone will have a smart home device this year and that number is set to increase to 8.7 million product is there is in 2017 (5.9% of total homes) and a whopping 20.2 million in 2021 (16.3% of total homes). definitely an appetite for voice-controlled Hive and Phillips have seen the onset of this trend for some time and have already signed devices in the home. with Amazon, meaning consumers with the smart home technology can ask Alexa to turn up But what is special about this AI-powered personal the heating or turn off the lights, negating the assistant is that she continues to learn and gets need to visit the necessary smartphone apps to better as third-party developers create more do it yourself. services to integrate with her. Amazon encourages this through its Alexa Skills Kit, which can be accessed by developers wanting to build new ‘skills’ – Amazon’s name for a voice-app. Just Eat, Uber, National Rail, The Guardian, Sky Sports, Jamie Oliver, Skyscanner and Fitbit are just a few of the companies who have announced partnerships with Amazon Echo on launch in the UK. Where Echo and Alexa get really interesting is with the Internet of Things. Users can set up Echo to become the powerhouse for a smart home. 09 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / AMAZON ECHO AND ALEXA And of course, Alexa will happily place an In fact, Google is due to launch its competitor Amazon order on your behalf, using the default speaker/home automation device, Google Home, 1-click payment settings in your account. very soon. The concept of asking your smart fridge to order milk, or having a casual chat with your Amazon clearly wants these devices in people’s oven over temperature settings is finally here. homes. It’s probably the most intelligent real- use case of a smart assistant on the market, And with an intelligent central device, like Echo, yet Amazon is only charging £149.99 for the you can begin to connect your smart home into device, and it even knocked off 50 quid for Prime one frictionless ecosystem, so you only have to members during the first two days of pre-orders. have that meaningful conversation with Alexa removes the need to use your smartphone one device. to place your usual sushi order or check the time in Hong Kong, and speaking out loud is much more natural than using devices like laptops, SUMMING UP smartphones or even smart watches. This truly is a game-changer. The real appeal here is the price. Given the money UK consumers are While Apple’s voice assistant, Siri, has been willing to fork out on Apple goodies, an affordable around for four years, there isn’t a real need £149.99 is sure to encourage widespread adoption to talk to your iPhone – Siri became more of of this product in the UK, as it has over the pond. a novelty value and the technology wasn’t up This presents countless opportunities for retailers to scratch to be able to shout “Hey Siri, play and it also changes consumer perceptions on the my music” from across the room. Meanwhile, affordability of smart tech in general. This opens modern TVs with voice commands from the the floodgates for sure. likes of Samsung, LG and even Amazon with its Fire TV, make it much easier to search through a complex smart TV than using a remote, and this For relevant Amazon Echo and Alexa links visit is actually normalising the behaviour. InspiringGreatRetail.com blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 10
CONNECTED CUSTOMERS NEED A CONNECTED JOURNEY. NEXT GENERATION RETAIL. Technology is changing consumer behaviour. It’s no surprise smartphones are paving the way for the connected consumer with smarter retail apps, smoother e-commerce sites and interactive digital campaigns all delivering better experiences. It’s not smooth sailing though - siloed thinking still remains and retailers have a long way to go to deliver a connected journey for today’s consumer. 11 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / NEXT GENERATION RETAIL SHOPPING IS CHANGING Over the last decade, we’ve transitioned from As the online and in-store experience becomes ‘showrooming’ to ‘webrooming’ and back again - evermore ubiquitous, there’s a need, and a and now smartphones enable customers to shop demand for richer personalised experiences - or engage with a retailer, whenever, wherever but to deliver this the right infrastructure needs they are. So much so that customers rely on a to be in place and for most retailers, there’s unified mobile and in-store experience, using some catching up to do. The CRM, e-commerce their smartphone to access inspirational content, platform, in-store beacons and retail technology recommendations and personalised experiences. need to work seamlessly together to deliver the kind of experience that today’s tech-savvy, connected consumer demands. 71% of in-store shoppers who use smartphones for online research Those retailers that embrace the concept of a say their device has become connected consumer do so across all customer more important to their in-store touchpoints. It’s not just in-store, it’s across all marketing and purchase channels to create shopping experience. a rounded, integrated, connected customer Source: Google Insights, Digital Impact journey. The fuel behind this is content and On In-Store Shopping, October 2014 how it’s used across all platforms - from the catwalk to social conversations and in-store to e-commerce. Content delivers consistency and So, if the bricks and mortar shoppers are using messages that drive engagement and action. their smartphones to find inspiration, research The challenge is bringing it all together. products and seek out promotions whilst in- store, doesn’t the retailer need to revisit how this CONTENT DRIVES INSPIRATION - real-time, personalised shopping experience can AND ACTION be created seamlessly? In recent years there have been a number of retailers embracing the concept of the connected Shoppers would be more likely consumer. They engage with their customers and peers, reinforcing the behaviours today’s savvy to shop in stores that offer consumer is already showing. personalisation (85%), product recommendations (64%) and recommendations based on peer-group purchases (54%). Source: Google Insights, Digital Impact On In-Store Shopping, October 2014 Neil Caddick, Chief Commercial Officer, The Filter blueleaf
CONNECTED COMMERCE / NEXT GENERATION RETAIL For example, Burberry is held up as a digital this are Mr Porter and sister company Net-a-Porter leader within retail and back in 2011, they began with the Yoox Net-a-Porter group favouring ex- to connect digital engagement to sales more fashion editors to lead the way in this strategy. inherently. The ‘Tweetwalk’ campaign took their London Fashion Week show and tweeted The emphasis then becomes engagement and exclusive backstage photos, streamed live keeping consumers interacting with the brand, footage to its Facebook page and handed over its the content and the products. In an e-commerce Instagram account to its most followed user to environment this becomes an even greater deliver more exclusive photos. What’s more, they challenge - delivering the connected journey that enabled their fan base to buy products in-store the customer expects - right there, right then. before general release. Whilst this was primarily For example, Mr Porter delivers editorial content, a social campaign, it was the start of a significant inviting readers to ‘get the look’ alongside in- shift in their digital strategy. By 2014, Burberry depth interviews with high profile celebrities. reported that channels that linked the store and The result is instant purchase intrinsically online grew faster than any other channel. linked with richer, inspirational, magazine-style content. It closes the gap to purchase and drives up revenue for the retailer, and on the flip Customers increasingly moved side, the customer gets a completely seamless, between offline and online connected journey. throughout their purchase DELIVERING A BETTER journey, reflected in the CUSTOMER EXPERIENCE contribution to digital sales of If connected commerce is about delivering a orders via iPads in store (over better through-channel experience, how do you achieve this? The right mix of infrastructure and 25%) and ‘order online, collect technology are a must to deliver a digital-first in store’ (over 20%). strategy. Consumer behaviour is changing fast and expectations are high - retailers need to Internet Retailing, November 2014 deliver a unified, intelligent customer journey. The challenge is bringing it together across all Other retailers have embraced forward thinking systems and channels. This isn’t just a trend, digital strategies, taking editorial style content ever it’s a reality right now. What’s your digital retail closer to the e-commerce channel. Champions of strategy for the connected consumer? 13 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
RALPH LAUREN - POLOTECH This example is really the other way around. Instead of them using connected commerce to drive sales of goods, Ralph Lauren are trialling selling goods that are connected. And they’re not the only ones, Under Armour are doing the same thing and no doubt Nike and a number of others are cottoning on to the possibilities with connected footwear etc. 15 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
XXXXX/XXXXX The trend here is clear. Selling goods that add utility to your life and enable you to have less friction. It’s a pain and it’s time consuming to enter your activities into MyFitnessPal or other apps, so the easier the better. Even better if it’s enhanced with additional information like heart rate and breathing. That’s what PoloTech from Ralph Lauren does. It has a sensor box built into the shirt (so no attaching or slipping or positioning) and it connects to your iPhone (obviously). It’s not just the stats though, they’re also used to guide the wearer through a workout and then suggest the next workout based on how you did on this one. As consumers value ‘wearability’ and prioritise personal style over more technological features, strengthening consumers’ perception of wearable technology as customisable personal accessories rather than ‘techy’ gadgets will be key to boosting adoption. Sara Ballaben, Technology Analyst, Mintel blueleaf
CONNECTED COMMERCE / RALPH LAUREN - POLOTECH This is a great value add as it’s not just a shirt but There’s a lot of potential within this area for a guide at the same time. It’s got about 10,000 retailers. How can all retailers take advantage different possible workout combinations as a of sensors and data to figure things out? result. Now serious runners and cyclists will have Sensors will appear to monitor wear-time or been doing this for a while with Garmins or Polar usage and suggest replacements or better kit monitoring their heart rate and recovery. suited gear based on behaviour. It’s not just But as technology prices drop, items like this will the utility though, there’s a level of status become more commoditised, opening up more associated with wearing this kind of gear for advanced methods in a simple way. a certain demographic and retailers can take advantage of this. Conductive threads woven into the black nylon compression shirt and a lightweight module that snaps into the shirt around the left rib cage relay information to a Bluetooth-connected SUMMING UP smartphone. Gone are the days of tech for the geek, we now have tech for the jock. Technical The readings track a range of stats, clothing has come a long way in terms including heart rate and variability, of both design and cost in recent years. breathing depth and recovery, intensity Now it has the high-end of the high- of movement, energy output and stress street’s stamp of approval, we can levels, steps taken and calories burned. expect to see it a lot more. The free app, available through iTunes, offers live fitness monitoring, reporting and a “push rate,” which measures For relevant Ralph Lauren - Polotech links visit exertion, power and effort. InspiringGreatRetail.com Source: Forbes Magazine 17 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
I’ve been tracking Vinaya for a long time and I’m pleased this edition gives me the chance to write about it. I think they’re occupying a space that’s very underrated as they’re bringing three things together: fashion, technology and individualism. What the heck am I talking about? Vinaya’s CEO and Founder, Kate Unsworth blueleaf 18
CONNECTED COMMERCE / VINAYA STAY CONNECTED, NOT DISTRACTED That’s one of Vinaya’s marketing lines and it really sums them up. They make designer wearables like People will become resistant to all rings and bracelets. These items include sensors and vibration that connect to your phone. What’s the data streams and metrics – they special is that they only alert you that something is want more valuable, actionable going on (email, text etc) based on a highly curate insights. So fitness generation two list of people and things, which you control. is about data, about recombining data to make sense of it and creating something actually useful We want to break unnecessary digital for users. habits to reduce stress and increase productivity. I was inspired to launch Riaan Conradie, Computational Biologist and Founder of LifeQ Vinaya after leaving my job as a technology consultant. I’d send work emails in the middle of the night and One of the biggest problems I’ve always had with was addicted to social media. Most of notifications is the lack of control. Every email us feel overwhelmed by our digital lives, or no email. Every Facebook alert or very few. The ability to curate and control what diverts my and the journey for me was to attention is important to me and a problem that’s re-establish boundaries. been poorly solved so far. Kate Unsworth, CEO and Founder, Vinaya in Drapers 19 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
XXXXX/XXXXX Combine this with the trend of people wanting to experience life and not be continually distracted, and you’ve got something really interesting. Add in the fact that the products they’ve designed are, as far as I can tell, pretty fashionable to the point whereby most people wouldn’t know they’re ‘tech’ and the proposition continues to intrigue. They don’t look like an Apple Watch or a Fitbit, which you can spot a mile off. MENTAL WELLBEING Their new product, Zenta, which is currently in the works, is one that will track even more. It will track stress levels related to your calendar, breathing, sleep and so on, to get a complete picture of your health and mental wellbeing. Note, it is not trying to track fitness and activity so it’s avoiding being a me too, I hope. You can see how this connected world can go into retail too. There’s a lot of products that can match certain lifestyle patterns and help relieve some of whatever is bothering you - and the data is gold dust for personalised recommendations and preferences. SUMMING UP For me, Vinaya is inspiring great retail because they’ve come up with something that hits a new market, that is growing very quickly around mindfulness and wellbeing. They’ve executed it well and have not forgot the all-important appearance and fashion characteristics of the product, which is often overlooked. You can also see how they could help a retail ecosystem develop. For relevant Vinaya links visit InspiringGreatRetail.com blueleaf
TESCO F&F AUTO REPLENISHMENT This is a really nice, simple application of connected commerce that makes a huge difference to both consumers and the retailer. Tesco has started using RFID tags to drive auto replenishment in its F&F fashion range. It’s clever stuff. As the stock comes into the Having accurate stock information is a store it’s all automatically counted through the driver for our whole business. The RFID warehouse shutters, so they know what’s in store and in the stock room. It then also knows partnership with Nedap allows us to what’s on the shop floor. As it gets sold, it gets replenish stock from the Distribution replenished from the stockroom. As that gets Centre more efficiently and accurately, low, automatic orders are placed to replenish making more garment sizes available to the right items in the right sizes. customers and improving their overall in-store experience. Richard Collins, F&F Chief Operations Officer 21 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / TESCO F&F AUTO REPLENISHMENT This has resulted in out of stock issues falling SUMMING UP 75% - 99% in some places meaning product is We’re dealing with two extremely large more available to customers and of course, they numbers here - the number of Tesco stores sell more because it’s there. What I particularly stocking F&F and the cost of lost sales due like about this example is that it’s taken to out-of-stock items. So it’s fair to say this advantage of falling technology costs to solve a is going to have a pretty huge impact on real world, straightforward problem. No fancy their bottom line. This is before we factor in mirrors or fitting rooms, apps or ads, just making customer joy at being able to get their mitts sure the right product is in the right place at the on the desired product. Well done F&F, we right time with efficiency to boot. Good stuff. expect many UK retailers to follow. For relevant Tesco F&F Auto Replenishment links visit InspiringGreatRetail.com Overstocks are responsible for 3.2 percent in lost revenue for the average retailer, and out-of-stocks, 4.1 percent. Source: Retail Wire, September 2016 Tesco F&F Kensington Superstore blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 22
BODY LABS This example is more about new technology than a retailer directly implementing something for connected commerce, but I believe its application is not far off. Body Labs are pioneering the world of 3D body scans to create a true representation of someone’s figure, to then use in many environments, retail being one of them. 23 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / BODY LABS Body Labs technology is able to sizes. It could be a great help in deciding just garner a fully realistic 3D body what sizes to get delivered for a proper trying on scan, complete with wrinkles and session at home, as opposed to just guessing or even discounting certain items outright. I know back fat, that goes well beyond from personal experience, or rather I’ve found matching up points on a body and out, how different ‘tailored’ and ‘slim fit’ can be. actually includes data about the It’ll be no surprise to most, that ‘slim fit’ isn’t different properties of the human really my thing but tailored has a large variety of body. And beyond that, Body Labs fits so this nature of scanning could add to this technology allows you to add motion area immensely. to the 3D body model to see how certain fabrics or materials might The potential benefits of adding fit move or wear in the real world. technology onto their e-commerce Source: Tech Crunch platform are clear. It could help consumers buy with more confidence and it could curb monetary losses from BETTER FITTED ITEMS AND returns. Free returns have in many LOWER RETURNS ways come to be expected and are You can already imagine the applications. increasingly necessary for retailers to Couple knowing the customer’s body size to stay competitive. So getting customers within millimetres, with knowing the clothing dimensions and you can easily see the to buy fewer sizes and nail it on the development of ‘proper’ virtual trying on of first try is a big motivator. clothes. They could even highlight where it might Source: Online Retail Blog Fashionista be tight or loose, invaluable for those in between for Retailers blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 24
CONNECTED COMMERCE / BODY LABS Shop Direct processes up to 50,000 returns per day, seeing a 30% return for clothing. Couple this with the fact that the Financial Times reported that average returned purchase in the UK passes through seven pairs of hands before it is listed for resale and you can see the importance of limiting returns. AGGREGATE KNOWLEDGE OF YOUR CUSTOMERS There’s further innovation here, through aggregate data. What is your average customer’s true dimensions? Do people spend more with you if the items generally fit? Can you tailor certain clothes with certain manufacturers of to our needs. We only need to look at yours to just tweak the fit so it’s best for the Indochino or ASTF (previously, A Suit That majority of your customer base? There’s a lot of Fits) for examples of that. But if we think mass customisation that could be very useful about applying the same principle to faster for buying and merchandising teams to take fashion like dresses, trousers and even items advantage of. like coats, we could have a winner. The same fashion items you want but could never quite MASS CUSTOMISED CLOTHING fit into. Or it was just a tiny bit tight. Let’s take it even further. Manufacturing possibilities are changing all the time with the ability to customise and change product 25 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / BODY LABS SIZE 8 Chest difference 2 inches ZARA Waist difference 3 inches Hip difference 2 inches BRAND BUST WAIST HIP Zara 33.85 26 37 BANANA REPUBLIC Banana Republic 36 29 39 Don’t be surprised if tech companies start 55% of Brits are willing to springing up everywhere to profile body sizes and spend more on clothes that shapes and then sell/use that data across many companies and retailers to help with all the things suit or flatter them. I’ve spoken about here. The key for retailers will Source: Mintel be ensuring they own all their own customer data. HOW CLOSE IS IT? Well, Body Labs setup costs $30k a pop so SUMMING UP it’s going to be a while before loads of fitting I can see a time, in the not-too-distant future, rooms are filled with the technology. But with where these are in every fitting room. OK, I like technology costs coming down all the time, I the idea of my shirts fitting properly, but I’m a wouldn’t be surprised if this gets affordable for rather typical bloke, if I was a true fashionista I’d the bigger retailers, or at least their flagship imagine this is the stuff dreams are made of. Not stores, soon enough. only fit, we’ll have a better understanding of which styles and fabrics suit our shape. This is something There’s some other technology floating around retailers and consumers have been trying to crack using xBox Kinect as the scanning technology. since the dawn of time. It’s sure to lead to us It’s already used for motion capture in games so buying more and returning less. This is a big deal. it stands to reason that it could be used for body scans. The accuracy might not be quite as good as Body Labs, and that’s the key, but it shows that a For relevant Body Labs links visit cheap piece of hardware can do a lot these days. InspiringGreatRetail.com blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 26
49ERS STADIUM APP When beacons are used well, they can add tremendous utility and helpfulness to an experience. This is often what retailers can miss. They think of just offers, messages and notifications and that misses the point, it also teeters into significant spam territory. Just another thing to ignore on our long list of things to ignore. The 49ers have done it differently. Very built in as opposed to just ads, notifications and differently and I love it. The first things, spam. You can also do more things like book although obvious, are still done well. You can your parking, find your spot and so on. get your tickets on your phone and about 30% of all tickets are done this way, making it a One of the lesser-used features is instant replays pretty popular app for this kind of deployment. so you can easily catch up on the action you You just scan your phone at the gate and you’re missed when you went to the toilet. Only 1% of in, with a note of area, row and seat as normal. people actually use this feature though which Here’s where it gets even better - the app then I found quite surprising, maybe they’re too directs you to your seat with an estimated focused on the game. arrival time. Here’s a great thing for the 49ers though, that The beacons get better - I can order food right really finishes off this example of inspiring retail to my seat and see how long it’s going to take - the data! The sheer volume of data they gather to get to me. This is the epitome of Americana from the app is enormous. Real time data too. right here - a ball game, a hot dog and no need How much food is needed right now, what’s most to move from my seat to get it delivered! It’s also popular today? If we show an ad for one thing a great lesson in how an app is much better if does it sell a lot more? So much can be learned. it has some genuine service design and utility Well done the 49ers. 27 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / 49ERS STADIUM APP I know you’ve heard it before, in SUMMING UP observations by everyone from A perfect example of a beautiful marriage Forrester to Gartner, but I believe between customer delight and retailer it can’t be emphasised enough. The upselling. This is tech, data and sales euphoria. ability to collect data about customers in real time and respond to it in real For relevant 49ers Stadium App links time is increasingly what separates visit InspiringGreatRetail.com successful brands from also-rans. H.O Maycotte, CEO, Umbel, in Forbes Magazine blueleaf AUTUMN/ WINTER 2016 INSPIRING GREAT RETAIL 28
WRAPPING UP / ROB SMITH WRAPPING UP Examples of Connected Commerce that are really inspiring great retail are actually still few and far between at the moment, which isn’t entirely surprising. Even large brands like Waitrose are struggling to figure out how to use technology like beacons to really engage, not advertise, to their customers. The easy way out is advertising, but it doesn’t add to the experience or add utility or happiness. The brands that start figuring that out are going Rob Smith to make some very serious headway. And quite a Managing Director few are getting there, albeit slowly. Blueleaf In this report I’ve chosen to showcase retailers that are inspiring me with their connected commerce, not only because they’re doing a great job but also because they’re setting an example. No more out of stock items, no more badly fitting shirts, no running out of milk, no overdoing it on the squash court (OK, that one I can live without) but you get the picture. So, to name just a few, I want to thank these brave brands for their pioneering spirit. The more of this we see, the sooner this will really take off. And personally? I can’t wait. 29 INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
THANK YOU FOR READING OUR SIXTH INSPIRING GREAT RETAIL REPORT. Our next edition, Spring 2017, will be launched in February. From the giants of our industry, to your local boutique, many retailers are doing inspiring things that deserve to be applauded. So if you have a favourite retailer who never fails to inspire, or maybe you work for an inspiring retailer, share your story - hello@blue-leaf.co.uk or #InspiringGreatRetail on Twitter - we await your inspirations. Can’t wait until February? Drop us a note and we’ll sign you up for Checkout; our bite-size, Friday email with three inspiring nuggets of ecommerce news. Wait! There’s more. While you’re at it, why not let us know you’d like to receive Demandware Distilled? Plain, succinct and easy-to-implement tips on how you can get the most from your Demandware platform. @bltweets www.blue-leaf.co.uk #InspiringGreatRetail www.InspiringGreatRetail.com
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