Shopping Reinvented: Next-Generation Furniture Retailing

SHOPPING REINVENTED:
NEXT-GENERATION BIG TICKET RETAILING

Rapidly Evolving Market Conditions
Are Changing the Way Consumers
Search for, Evaluate, and Purchase
Goods and Services
ONE OF TODAY’S
GREATEST CHALLENGES…
…WILL DEFINE BIG TICKET
RETAIL TOMORROW

INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSING
UNPRECEDENTED
SHOPPER DATA
Megabyte | Gigabyte | Terabyte | Petabyte | Exabyte | Zettabyte | Yottabyte
INTRO
The Average Consumer is Bombarded
with 34GB of Data per Day
The Average Consumer is Bombarded
with 34GB of Data per Day
Wal*Mart Databases are Estimated to be >2.5PBWal*Mart Databases are Estimated to be >2.5PB
Total Amount of Data in Existence in 2010 = ~1.2ZBTotal Amount of Data in Existence in 2010 = ~1.2ZB
ZettabytePetabyte

ENGAGEMENT IS
MANDATORY
INTRO

SMARTPHONES REACH
THE MAINSTREAM
INTRO

COMPETITIVE SHOPPING…
FROM INSIDE YOUR STORE
INTRO

“IT’S ALL ABOUT ME”
(AND 10,000 OF MY CLOSEST FRIENDS)
INTRO
Shoppers are telling us they want to
Shop Where they Connect…and
Connect Where they Shop

in store sales will be influenced by the Internet in 20121
$1Trillion
SHOPPERS CONTINUE THEIR
RELENTLESS MIGRATION ACROSS
CHANNELS
1- Forrester Research 2009
INTRO

ALL-CHANNEL IS THE
NEW CROSS-CHANNEL
INTRO

NEW BEHAVIORS
NEW EXPECTATIONS
A NEW RETAIL REALITY
NEW TECHNOLOGIES
=
+
+
INTRO

NEW RULES FOR A NEW REALITY
Big Ticket Retailers Must Aspire to Be…
Constantly learning from customer
behavior to anticipate needs,
personalize experiences, stay relevant.
OMNISCIENT
Available anytime, anywhere customers
choose to engage and interact.
OMNIPRESENT
OMNIPOTENT
Always aware of each customer’s
unique history, choices, behaviors,
and expectations.
EVERYWHERE
Able to deliver personalized & seamless
experiences wherever the customer is.
CONNECTED
Able to deliver consistent inventory,
prices, and promotions relevant to each
customer in every channel.
ADAPTIVE
Flexible enough to adapt to ever-
changing technology, expectations,
and market conditions.
ERP Platforms Must Be…
INTRO

13
BACKGROUND LOOKING AHEAD SHOPPING REINVENTED SOLUTIONS APPENDIX
SHOPPING
REINVENTED

‘S’ IS FOR SOCIAL:
SHARING, SERVICE, SHOPPING

Do You Have A Social Strategy?
99%of Surveyed Retailers
Currently Have or Plan
to Have a Facebook
Fan Page1
1 - -eTailing Group and Power Reviews 2009
SOCIAL

91%of Surveyed Retailers
Currently Plan to Use
Twitter for Status
Updates by 2011
1 - -eTailing Group and Power Reviews 2009
SOCIAL
Twitter.com/EscalateRetail

SOCIAL

SOCIAL IS FOR SHARING
YOUR MESSAGE, YOUR
PROMOTIONS, YOUR CATALOG
SOCIAL

SOCIAL IS FOR SHARING
THEIR OPINIONS, THEIR
PURCHASES…THEIR QUESTIONS
SOCIAL

SOCIAL IS FOR SUPPORT
FASTER, CHEAPER, MORE VISIBLE
AND…GOOD FOR YOUR BRAND???
SOCIAL
@ Twitter is a lightning-fast platform that can
help sift through and solve problems quickly
@ Customer service via Twitter often takes less
time and less money than a call center call
@ Twitter is one of the most viral platforms
around, which can turn one happy customer
into an international story

Shoppers expect us to leverage
their networks to create
Social Shopping experiences:
User Reviews, Shop Together, Deal Feeds, Group Buys,
Popularity Lists, Auctions, Social Network Storefronts,
Share-With-Your-Network, etc.
SOCIAL IS FOR SHOPPING
SOCIAL SHOPPING (noun)
COMBINING E-COMMERCE AND TRADITIONAL SHOPPING
IN A SOCIAL NETWORKING ENVIRONMENT
SOCIAL

SOCIAL IS FOR SHOPPING
SOCIAL SHOPPING (noun)
COMBINING E-COMMERCE AND TRADITIONAL SHOPPING
IN A SOCIAL NETWORKING ENVIRONMENT
SOCIAL

Home Décor
Yes I do! Plenty
of room for my
remote controls!
I gave it a “test
run” in the store –
very comfortable!
Great! Go ahead
and order it!
SOCIAL

SOCIAL IS SYNONYMOUS
THE WEB IS NOW CONNECTED
IN A FAR MORE COHESIVE WAY
SOCIAL

SOCIAL IS CATCHING ON WITH THE
BIGGEST HF COMPANIES…
SOCIAL

DEVELOPING A COHESIVE
SOCIAL STRATEGY
It’s cheap (but not free), and relatively easy to
start, but requires commitment and a plan:
SOCIAL
– People: Who are you trying to engage?
Be specific and prioritize them. It can't be everyone.
– Objectives: What are you trying to achieve?
Is it about listening, talking, or energizing?
How will you measure it?
– Strategies: What will it look like when you're done?
Start with the end in mind and visualize how customer
relationships will change.
– Technologies: What are the tools you plan to use?
Hint: Don't pick the tools first.

MAKING GOOD ON THE
POTENTIAL OF MOBILITY

SMARTPHONES ARE FAST BECOMING
DOMINANT WEB ACCESS DEVICE
2013
Cell phones will be the most common
device used for browsing the web
– Browser-equipped phones:1.83 billion
– PC’s & other “old fashioned” computers: 1.78 billion
*Source: Gartner Research
*
MOBILE
2015
Cell phones will become the majority of the
world’s primary browsing device

Of consumers with the ability to
download applications to their
mobile phones have downloaded
shopping applications*
* Thomas/Ferrous Inc. and Q&A Research
MOBILE

HF INDUSTRY HAS THUS FAR BEEN
SLOW TO EMBRACE MOBILITY
• Customer service is an
easy win
– Delivery status
– Repair status
– Product Availability
Ashley Furniture (Carolinas)
~$122 in Revenue for Every
Dollar Spent on SMS
“Secret Sale” Campaign.
MOBILE
• Mobile marketing also has
potential for quick payback
– Promotions
– Contests
– Special Offers

HF INDUSTRY HAS THUS FAR BEEN
SLOW TO EMBRACE MOBILITY
• Customer service is an
easy win
– Delivery status
– Repair status
– Product Availability
Ashley Furniture (Carolinas)
~$122 in Revenue for Every
Dollar Spent on SMS
“Secret Sale” Campaign.
MOBILE
• Mobile marketing also has
potential for quick payback
– Promotions
– Contests
– Special Offers
Rock/Paper/Scissors
• 100 loyalty points
• 66% Response Rate

QR CODE SCANNING MAKES
MOBILE BROWSING EASY
• Quick Response Codes are beginning to
get a foothold in North America
• Cameras on cell phones read the QR code
and navigate browser to a designated URL
– Eliminating clumsy typing of long URLs
QR Code
TEXAS STADIUM, WORLD’S LARGEST HDTV
MOBILE

MICROSOFT TAG: TAKING QR CODES
TO ANOTHER LEVEL
Microsoft Tag
• New design readable by lesser
cameras installed in cell phones
• Cameras can read very small tags
– Preserving expensive catalog real estate
• Only the serial# is actually
embedded in the Tag
– Opens up exciting
analytics possibilities
MOBILE

Ralph Lauren:
Ran a series of ads promoting exclusive US
Open Tennis apparel that linked readers to
product information and opportunities to
purchase on their phone
MOBILE
BRINGING TO LIFE –
WHEREVER CUSTOMERS ARE BROWSING
PRODUCTS

Ford Taurus:
Leading users to a site featuring six different
video clips explaining the exciting aspects of
Taurus’ new technology
MOBILE
WHEREVER CUSTOMERS ARE BROWSING
FEATURES

INSIDE YOUR SHOWROOMS
Empower your customers with the kind of
detailed product information they need to
make an informed buying decision
• Deep Product Details
• Customer Reviews
• Inventory Availability
• Personalized Recommendations
• Personalized Offers
• All-Channel Customer History
• Virtual Living Room
• Loyalty Status
• Related Items and Cross-Sells
• Social Networking
MOBILE
POCKET KIOSK
YOUR BRAND

CASE STUDY: SIMMONS BRINGS THEIR
PRODUCTS TO LIFE IN SHOWROOMS
Simmons:
Now places QR Codes on merchandise
and produced mobile-friendly content to
enrich the showroom shopping
experience.
MOBILE

IMAGINE THE POSSIBILITIES IN YOUR
SHOWROOMS…A QUICK LOOK
MOBILE

GETTING STARTED:
WHAT YOU CAN DO TODAY
• Investigate your customers’ adoption of mobile
phones as shopping tools
• Start small and capture phone numbers
– Contests, rewards, etc.
– Service updates
• Understand how easily your systems can expose
key data elements
– Inventory
– Sales
– Order Status
– Customer
MOBILE

AUGMENTED
ADVERTISING AND
MARKETING

ADDING LIFE TO PRINT…
BY ADDING DIMENSION
Augmented Reality
Bringing print media to life
How it Works
A camera “reads” information
that’s on a physical object
and converts it into digital
content that it lays over the
real-world image that the
camera has recorded
A/R

PUBLISHERS HAVE BEGUN
AUGMENTING…
A/R

AND SEVERAL BIG BRANDS HAVE
BEGUN AUGMENTING…
A/R

AUMENTED REALITY TEST DRIVES
A/R
BMW Z4 “ROAD ART”

AUMENTED REALITY TEST DRIVES
A/R
• Well-coordinated cross-
channel campaign
• Lots of “sizzle”
• High novelty factor
• Extremely engaging
experience

A/R AT WORK…SELLING FURNITURE
A/R
Let’s Take A
Look at a Recent
Wal-Mart Ad for Teen
Bedroom Furnishings

A/R AT WORK…SELLING FURNITURE
A/R

MOBILE DEVELOPERS HAVE
BEGUN AUGMENTING, TOO
A/R

MYDECO.COM: 75,000 ITEMS IN AN A/R
CATALOGUE FOR iPHONE
A/R

INTRO MOBILE SHOP IN HDSOCIAL VISUALA/R CLOSINGA/R

YELP:TAKING A/R TO THE STREETS
A/R

IMAGINE THE POSSIBILITIES
WITH YOUR BRAND…
A/R
What if we applied
similar technology to
furniture retail?
(754 Reviews)
Slumberland Furniture, Lincoln NE
SAME DAY DELIVERY
On All Purchases Before 6:00 p.m.
ULTIMATE SALE!
Through Labor Day!
JUST ARRIVED
New Natuzzi Leather Collections

BIG TICKET RETAILERS ARE
REINVENTING SHOPPING…
CLOSING

2,016 Followers
1,376 Fans
10,000 Readers
http://2modern.com
2modern
CLOSING

THE TIME TO EXPLOIT THOSE
OPPORTUNITIES…IS NOW
• Market conditions, technology, connectivity are
clearly working together to change consumer
expectations and behaviors
• It’s time to take stock of our strategies and look
for ways to evaluate, exploit, and expand the
opportunities inherent in today’s rapidly
evolving consumer landscape…
REINVENT SHOPPING
CLOSING

Escalate Sales Gateway
Escalate COEM
Escalate Enterprise1
Warehouses Suppliers & 3PL Stores
Call Center Smartphone Social ShoppingKioskPoint of Service/COEMB2C & B2B Web
CONNECTED • EVERYWHERE• ADAPTIVE
Escalate All-Channel Commerce
FurnishNet
CLOSING

WHAT WILL WE BE TALKING
ABOUT NEXT YEAR?
CLOSING

Shopping Reinvented: Next-Generation Furniture Retailing

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