Thanksgiving weekend has traditionally been highly lucrative for retailers, but this year saw another drop in spending specifically on Black Friday. In the meantime, online shopping continues to soar, and the weeks leading up to Thanksgiving weekend provided consumers with deep-discount sales. In short, the weekend itself is becoming less valuable to the average consumer. But how does consumer sentiment match up with this shift in behavior? How do perceptions of the 2014 holiday season differ from those of years past and consumers’ initial expectations?
As part of our recent research efforts, we leveraged Forrester’s Technographics® 360 multimethodology research approach to gain a better understanding of consumers’ shopping habits (using our ConsumerVoices Market Research Online Community) and to track online conversation and sentiment relative to Black Friday and Cyber Monday leading up to the holidays and afterwards (using NetBase aggregated social listening data).
Here in the US, all signs point to winter: Daylight savings has just begun; specialty holiday drinks have been added to cafe menus; and several cities have already witnessed the first snowfall. And with the arrival of the chilly season comes preparation for the mad rush of holiday shoppers.
Although the holiday retail season is shorter this year, given fewer days than average between Thanksgiving and Christmas, consumer expectations of retailers during this holiday season are greater than ever. When it comes to online retail specifically, consumers seek out – and have come to expect – great deals and free shipping throughout their holiday gift hunt. In fact, Forrester’s Consumer Technographics® data shows that shipping cost is the most important factor in a consumer’s decision to purchase from a retail website (such as Amazon.com or Gap.com):
I love Europe. I especially love the fact that in a very real sense there is no “Europe” as such: The UK experience is not the German experience, which is not the French experience, which is not the Italian experience, and so on.
Yet all of these countries are so close together that once I’m over there, I can visit a variety of very different cultures and architectures more easily than I can travel from Boston to Denver. And in any given city, just walking between buildings from one business meeting to another can make me feel like I’m on vacation. Then there’s the food . . .
Although European variety is amazing, it can also create challenges. On a recent trip, I was in London, Rome, Milan, and Budapest within a two-week period. That often brought me into contact with people in service industries — like taxis, restaurants, and hotels — who had very different ideas of what “service” means than I do.
I began to wonder: Do the locals also find some of this service subpar, or am I just being a parochial American? As it turns out, our recent research shows that European customer experience as judged by local customers does vary wildly depending on country and industry, ranging from truly great to truly awful.
Which is one reason why I’m so excited by Forrester’s upcoming Forum For Customer Experience Professionals EMEA on November 17th and 18th in London. We recruited speakers from companies with customers who say that they’re already doing a standout job as well as speakers from companies that are in the midst of tackling tough CX challenges.
What lies ahead for the retail store? Yesterday, Forrester published a report that predicts the answers to key questions about the future of the retail store: Which digital technologies currently on the periphery of the store environment will make the leap to the sales floor? How will retailers know which technologies have potential and which will remain gimmicks?
In the report, we outline the utility and predicted chronology of several technologies, including:
Proximity technologies. Retailers will know when and where an associate is needed, by whom, and for what purpose.
Wearable technologies. Associates will access the relevant data to provide optimum customer service with minimum intrusion.
Facial scanning technologies. Retailers will know their in-store customers’ histories, preferences, intentions, and needs and will cater the store experience to them.
Smart countertops. Retailers will embrace consumers’ propensity to do product research while shopping in-store and enhance the utility and experience at the same time.
3D printing. Retailers will make the inventory they need on-site or once it’s been purchased.
For more on Forrester’s take on the usefulness of these and other technologies, and to see our predictions of when we’ll see them enter the retail store, see the report (client access required).
Which technologies do you think will realistically make it into retail stores of the future?
Beacons have a great deal of disruptive potential as they bridge the digital and physical worlds. I quite like this quote from Steve Cheney, SVP at Estimote: “Beacons as a platform are really a wedge into ‘appifying’ the physical world. They give context to a physical space. They are a way of actually extending the network intelligence to the edge again, something that has been missing since the desktop era. Beacons are truly a way of giving your smartphone eyes—place dumb signs around you and let your phone discover and read them.”
Beacon technology offers new opportunities for marketers across a wide range of industries and verticals. In particular, they enable marketers to:
Engage consumers in their mobile moments via in-app interactions.
Improve the customer experience.
Understand customer behaviors by leveraging analytics.
One of my first jobs was as a sales associate at a clothing store, after which mall shopping lost any of the leisurely appeal it once held. I still find myself folding clothes I didn't unfurl and fixing hanger hooks to all face the same direction.Chalk it up to knowing how the sausage is made, or perhaps a logical side effect of working in eCommerce research, but I do most of my shopping online these days.
The store shopping experience hasn’t changed much since my time as a sales associate. But that’s all about to change. We’re at the beginning of a retail transformation: The growing percentage of retail revenues driven by eCommerce and the influence of digital technologies on consumer behavior and expectations alike means that retailers are being forced to reevaluate the value proposition of the store. The result? A digitally enhanced retail store.
Today, a mix of technologies are coming together to marry the online and offline experiences to revolutionize in-store shopping and the role of the physical store. However, we’re still in early stages. Many of these initiatives remain in experimental phases, and glaring success stories are few and far between. Despite the rarity of iron-clad business cases for these initiatives, eBusiness professionals and their colleagues in store operations are forging ahead.
Together with eCommerce technology analyst Adam Silverman, I recently published a report laying out the current state of digital store initiatives and the promising opportunities a digital store overhaul represents for retail. Some of the ways retailers are transforming retail stores include:
A long list of European pure player retailers were put through a rigorous Shop Experience Audit by GfK to identify a short list of five players that six jury members evaluated. The short list of candidates included Net-a-Porter, ASOS, Amazon, Zalando and Yoox.
It's been a tough choice because all candidates are very strong players. But, we the jury persevered and evaluated the candidates based on innovation, customer engagement and consistent multitouchpoint presence. Here are the winners:
Winner Gold: ASOS. Jury Assessment: ASOS goes beyond purely generating sales. They work to be present at their customers’ moment of need at every stage in the customer life-cycle, including engaging customers so they come back again. Their content and communication is consistent, as is their presence across devices. They have strong growth from international sales and a multi country presence. They've also launched innovative features like the 'fashion finder' function and a pilot program for changing rooms at pick up points.
Since joining Molton Brown, shortly after its purchase by the Kao Corporation, Amy has modernised the brand and business operations, particularly in the areas of eCommerce, eCRM, and other digital marketing programmes. She has also successfully leveraged resources across the Kao organisation to help accelerate Molton Brown’s growth outside of the UK home market, and more recently has been working with the other Kao brands to better leverage digital assets and talent within the Kao organisation in EMEA and the Americas.
In the run-up to the Forum, I caught up with Amy and asked her these questions to uncover some of her messages for the marketing leaders attending our London event. Do join us on May 13-14 to hear Amy's full story!
Europeans spend €5 in-store for every €1 spent online after researching products via digital touchpoints. Digital activities influence a significant proportion of physical store sales. Yet, many eBusiness professionals tend to evaluate their digital efforts in terms of online sales generated and struggle to measure the value of a website and digital activities in terms of the overall influence on the shopper journey.
The key for eBusiness professionals is to recognize the influence that digital has on purchase decisions across the customer lifecycle and keep consumers within their own ecosystem, no matter where the final transaction takes place (in the physical store, on their website or via their mobile app).
But how can you quantify the influence of your digital presence on physical store sales?
For several years we have published the cross channel retail sales forecasts in the US and for the first time Forrester has developed a European version focused on seven European markets: UK, France, Germany, Netherlands, Italy, Spain and Sweden. The forecast projects the growth of cross channel sales - sales that are influenced by the digital touchpoints but where the purchase is completed in a physical store.
A few key takeaways from a European perspective include:
The Infrastructure and Operations (I&O) role is changing significantly: I&O pros are increasingly helping to drive business strategies with the technologies they choose and implement. Business leaders tell Forrester that technology is too important to leave to technology managers alone; they are pushing their I&O colleagues to explore the business value associated with the technologies they choose, implement, and manage. I&O pros, in turn, tell us that their jobs are changing. As one I&O pro put it, “I’ve been an infrastructure manager for 15 years, but only in the past 3 have I been asked to construct a business plan and be part of the business planning team.”
Figure: Burberry's Technology-Powered Flagship Store In London
For I&O pros in retail and related verticals like hospitality (or for anyone involved in creating in-person experiences), we’ve just released a report to help aid this transition. Along with my co-author Michele Pelino, we’ve just released the report “Infrastructure Will Drive The Retail Store Experiences Of The Future.” The report asserts that I&O pros have an important role to play in helping their companies engage shoppers in experiences that will drive loyalty and spending.