My Shopping, My Way

My Shopping, My Way

My Shopping, My Way Are You Ready for the Tech-Shaped Consumer? Cisco Internet Business Solutions Group (IBSG) Lisa Fretwell, Jon Stine, Andy Noronha January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1 Agenda Executive Summary According to the Research A Significant Opportunity Achieving the Potential Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2 Executive Summary Consumers behavior and expectations are being rapidly shaped

by technology This situation is accelerating retail commoditization Cisco IBSG research indicates retailers can increase sales, grow conversion rates, and preserve margins by creating mashops that combine web-like experiences with the store shopping experience The research also shows retailers should focus on calculating shoppers (56% of population) rather than extreme shoppers (11% of population) Several leading retailers are already creating mashop experiences To begin, understand the experiences needed to enhance your brand promise, create a technology-based platform to deliver the needed experiences, and reassess / adjust Retailers that fail to embrace mashop experiences will be more susceptible to commoditization Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3 Three Transitions Impacting Retail Technology Adoption Mobile shopping clicks with consumers, retailers Tribune, 11/10 A Chicago high-tech edge on

Black Friday 11/10 Generational Impact Bust of the baby-boomer economy: generation spend tightens belt Theyre Seeking Deals Shoppers flock back to the mall to hunt deals Gen X and Y pave way to economic recovery Black Friday gains, but consumers stay nervous CNBC, 1/10 The Wall Street Journal, Adweek, 3/10 The New York Times, 11/10 12/10 MSNBC, Sources: The New York Times, MSNBC, Chicago Tribune, The Wall Street Journal, CNBC, Adweek (all 2010) Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group

4 1 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. According to the Research Cisco Public Internet Business Solutions Group 5 Why Cisco Conducted the My Shopping, My Way Shopper Survey Consumers using more technology to help shop Tested hypotheses about the future of shopping Survey goals: Understand how / why consumers use technology Learn how technology is shaping consumers behavior / expectations Test delivery of technologyenabled shopping experiences that empower customers Source: Cisco IBSG, 2010 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6 Technology Commoditizing Retail Due to

Increased Data Access / Transparency Calculating Shoppers (56%) Gen Y (32%), Gen X (39%), Boomers/Silvers (29%) Extreme Shoppers (11%) Gen Y (58%), Gen X (30%), Boomers/Silvers (12%) Deal-seeking time 66% 73% higher than 2 years ago 51% 61% Deal-seeking time to increase in 2 years 23% 42% Have used group buying sites 31% 56% Have used retailer Facebook sites 33% 60% Have used couponsharing sites 18% 65% Use iPhones / Android devices Source: Cisco IBSG Research & Economics Practice, 2010. Note: U.S. respondents.

Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7 Top Reasons Consumers Use Technology for Shopping 1. Find lowest price: 63% 2. Save time: 47% Common top reasons for using technology in shopping 3. Find best selection: 26% Find best-quality product: 25% Source: Cisco IBSG Research & Economics Practice, 2010. Note: U.S. respondents. Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8 Technology Is Reshaping How Shoppers Make Buying Decisions Which of the following are the three most important sources of information that you use to help make buying decisions? 60% 50%

40% 30% 60% Online reviews more important than in-store employees, traditional media, and social networking 29% 20% 29% 27% 24% 23% 21% 19% 14% 10% 0 Friends / Online Customer Data on Family professional reviews mfg. sites reviews (onlineonly Sample Size = 1,000 U.S. consumers retailer sites)

In-store product displays Online reviews (storebased retailer sites) In-store employees Print 11% Customer Customer reviews reviews on on blogs, social message networks boards 10% TV Source: Cisco IBSG Research & Economics Practice, 2010 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9 And How They Access Information What is your experience with using each of the following technologies to

look for product or pricing information before you purchase? 90% 80% 70% Percent of U.S. respondents who regularly use or have tried it 85% 80% 76% 60% 50% 45% 40% 43% 36% 35% 30% 27% 20% 23% 10% 0 20% 12% PC at home

Sample Size = 1,000 U.S. consumers Kiosk / touch screen in store Mobile device at home Gen Y (1829) 9% Mobile device in store Gen X (3049) Source: Cisco IBSG Research & Economics Practice, 2010 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group Boomers / Silvers (50+) 10 2 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. A Significant Opportunity Cisco Public Internet Business Solutions Group 11 New Technology-Based Shopping

Concepts Mash Up Virtual / Physical + Physical (stores) = Mashop Virtual (web) Mashop Experiences Empower Shoppers in Your Store Personalized product offers One-click mobile payments Multi-touchpoint social media customer care Shelf-edge access to deep, net-like knowledge Virtual expert adviser Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 12 Cisco Technology Can Be Mashed Up To Deliver Mashop Solutions Mashops Cisco Solutions Cisco Digital Media Suite (DMS) +

interactive signage + content distribution network (CDN) + medianet Shelf-edge access to deep, net-like knowledge Personalized product offers DMS + interactive signage + CDN + Wi-Fi + context- / locationbased services Virtual expert adviser Cisco TelePresence + Unified Contact Center (UCC) + Cius + medianet One-click mobile payments PCI solution for retail + Wi-Fi + POS integration + web Multi-touchpoint social media customer care Cisco SocialMiner + UCC + Wi-Fi + context- / location-based services + network + interactive signage Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group

13 Why Shoppers Prefer Mashop Experiences + Physical (stores) = Mashop Virtual (web) Physical availability Peer reviews / ratings See, touch, smell Feature and functionality comparisons Price comparisons Try it, use it Human interaction Detailed product information, specifications, videos Combined physical / virtual experience Recommendations Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public Internet Business Solutions Group 14 Mashops Offer Self-Discovery In the Store To Drive Sales Information from Web (55% Interested) Shopper preference 65%: touch screen at shelf 54%: touch screen in aisle Shopper value 28%: comparative pricing 25%: detailed information Pilot indications Shelf-edge conversions: 8%+ Personalized Offers (54% Interested) Shopper preference 73%: touch screen at shelf 60%: store-entrance kiosk Shopper value 48%: relevant offers Pilot indications Increased traffic from loyalty program participants Source: Cisco IBSG Research & Economics Practice, 2010 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public Virtual Video Adviser (44% Interested) Shopper preference 53%: tablet PCs 44%: TelePresence Shopper value 41%: real expert 28%: convenience Pilot indications Cross-channel customers increase 2x, spend 3x Internet Business Solutions Group 15 Leading Retailers Already Creating Mashop-Type Experiences Best Buy Connected Store Web / physical / mobile experiences in store Shopper self-discovery Endpoint options John Lewis Multichannel ordering / multiendpoint delivery Store: staff / kiosks / web / contact center / mobile Home Improvement Retailer Mashed-up web, physical, video experience Design services in store

Cisco IBSGs View Shoppers like control / self-discovery Shoppers get best prices / quality, save time Pilots show increased sales from conversions, upselling, cross-channel spend Opportunity to rethink store operating model Sources: Best Buy, 2010; John Lewis, 2010; Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 16 Mashop Solutions Will Drive New Operational Models Specialty / Service-Based Mass-Merchandisers Self-discovery Multistore experts Mobile checkout / warranty Self-discovery Self-checkout / warranty Range / Space

Exhaustive / personalized range Inspirational experiences Larger range, smaller stores Virtual ranges at many touchpoints Smaller stores Virtual pop-up retail Fulfillment Buy online, pick up in store Try before you buy / pick up Micro slots / same-day delivery Direct supplier delivery Multichannel ordering Multipoint delivery Pricing Dynamic cross-channel pricing Dynamic cross-channel pricing Real-time customer view Self-managed customer view Labor Productivity CRM Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public

Internet Business Solutions Group 17 3 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Achieving the Potential Cisco Public Internet Business Solutions Group 18 Three Development Phases Established: Shopping with Technology Shopper preference Self-checkout Loyalty offers Price check / lookup Self-scanning Web Product search Price comparison Peer reviews Personalized offers One-click checkout

Emerging: Shopping Shaped by Technology Empowering: Technology Ingrained in Shopping Net-like behaviors reach store Mash up virtual into the physical Mobile Internet Location-based services Comparison apps. Social networks Augmented reality Group consumption Interactive touch screens In-store online ordering Digital signage Self-checkout Loyalty offers Price check / lookup Self-scanning Examples

Deep search / finding Peer reviews / comparisons Virtual expertise Personalized, locationbased offers Social customer care Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 19 Looking Ahead: Target Demographics Should Guide Your Roadmap In-Store / At Home Shopping with Technology All About Mobility Shopping Shaped by Technology Mashop Solutions Technology Ingrained in Shopping Now This year Now This year

1-2 years Now Bypass mobility-centric phase? 1-2 years Gen Y Gen X Boomers / Silvers Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 20 Looking Ahead: Segments / Competition Should Also Guide Your Roadmap In Store / At Home Shopping with Technology All About Mobility Shopping Shaped by Technology Todays Baseline Food

The Store Self-checkout Loyalty offers Price check / lookup Self-scanning The Web Product search Price comparison Peer reviews Personalized offers One-click checkout Smartphones Digital signage Smartphones Digital signage Social media Nonfood Mashop Solutions Technology Ingrained in Shopping Location-based offers Personalized offers One-click mobile checkout Social customer care Deep search at shelf edge Shelf-edge peer reviews / comparisons Virtual expertise: store, web, on the go Interactive / immersive experiences

Social customer care Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 21 Key Business and Technology Questions To Ask for My Shopping, My Way 1. Brand Promise 2. Customer Experience Whats the differentiating brand promise? Where are customers digitally active? Which net-like experiences will deliver brand promise in stores? Whats the tech roadmap? 4. Business Value 3. Operations How can mashop solutions reinvigorate your store? How can they increase basket size, stock turnover, margins? How will shopper self-discovery optimize labor allocation? How can labor be reallocated / optimized?

Which infrastructure improvements will be required? How will CRM be delivered to all touchpoints? Source: Cisco IBSG, January 2011 Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 22 I expect the Internet experience in the store and the store experience on the Internet. Cisco IBSG 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 23

Recently Viewed Presentations

  • Neuromedicine Interdisciplinary Clinical & Academic Program | NICAP

    Neuromedicine Interdisciplinary Clinical & Academic Program | NICAP

    General Announcements. Final evaluations will be posted on the website on Monday, July 22nd and are due by August 2nd. Dr. Jacqueline has optional 1:1 meetings open the week of July 22
  • PROC_CODEBOOK: An Automated, General Purpose Codebook Generator

    PROC_CODEBOOK: An Automated, General Purpose Codebook Generator

    Arial Wingdings Calibri Times New Roman Courier New Capsules Default Design 1_Capsules PROC_CODEBOOK: An Automated, General Purpose Codebook Generator PROC_CODEBOOK.SAS Sample Code PDF file created by PROC_CODEBOOK USING PROC_CODEBOOK.SAS ORDERING VARIABLES IN THE CODEBOOK TITLES AND FOOTNOTES PROC_CODEBOOK syntax The...
  • Shaker's Resident Educator Program

    Shaker's Resident Educator Program

    Program Overview & Timeline. Ohio's Resident Educator (RE) Program. Ohio's RE Program is the only one like it in the US. Created to combat teacher turnover within the first 5 years of their career.
  • WHY ATMs/PARTNERSHIPS? DARCA Workshop 2017 Colorado Water ...

    WHY ATMs/PARTNERSHIPS? DARCA Workshop 2017 Colorado Water ...

    Need a Seller Willing to Make Long-Term Commitments * ATM agreements require partnerships among farmers for scale Selling water rights is profitable and relied upon for retirement Water transfers run counter to farm operations and historical practices ATMs require motivation...
  • 53-751-02 E-Commerce SELL-SIDE - HEC Montréal

    53-751-02 E-Commerce SELL-SIDE - HEC Montréal

    Challenge for suppliers Objectives (source Microsoft) Blake Ives' Customer Service Life Cycle Diapositive 15 PHASES OF THE CSLC PHASES OF THE CSLC Technology to Create Sell-Side MAIN FUNCTIONALITIES Building a store: Turnkey approach Build Your Own Approach Architecture Necessary Software...
  • Evolution  The process of biological change by which

    Evolution The process of biological change by which

    Gradualism emphasizes slow changes on Earth over long periods of time, while catastrophism emphasizes change through natural disasters. In 1831, what ship did Darwin take that enabled him to travel around the world for 5 years collecting specimens and making...
  • The NIMH RDoC Initiative: What Does it Mean

    The NIMH RDoC Initiative: What Does it Mean

    April 29, 2013. In a few weeks, the APA will release its new edition of the DSM. ... Symptom-based diagnosis, once common in other areas of medicine, has been largely replaced in the past half century as we have understood...
  • Stereotype Activation and Leadership Efficacy: Understanding ...

    Stereotype Activation and Leadership Efficacy: Understanding ...

    Biased Perceptions and Evaluations Women are presumed to be less competent leaders than men and less worthy of the leadership position across a variety of contexts Women are evaluated less favorably when they demonstrate behaviors that fulfill prescriptions of the...