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ServiceDesignDrinks
FJ O R D / A P R I L 2 3 , 2 0 1 4
Service Innovationin Retail
Martin User Experience, Nokia
Katrin PhD Candidate, University of Potsdam
Who are we?
Olga Business Consultant, FuxBlau
Manuel Service Designer, Fuxblau
Where we are today
Where we are today
Who is talking today?
Johannes Wrubel Founder of ///
“The Times, They Are a-Changing!”— B O B DY L A N , 1 9 6 4
smaller type
Retail is broken! Service Design can fix it.
/
Future of Shopping
1. Retail is struggling to face the challenges of digitalization
2. New business models threaten old ones
3. People adopt to new technologies with new behaviours
S TAT U S Q U O :
Some Numbers
Increase of online sales in fashion retail 2007: 4,9%2012: 16,8%
Increase of mobile sales> 1.000.000 mobile transactions in Q1/Q2 2012 = 152% more than 2011 !Increase of mobile devices:
T H AT H AV E I N C R E A S E D :
New Technologies
Mobile Social Communities: Twitter, Facebook, Instagramm
Location Based Services: Foursquare, FB Places, Google Places
Physical World Connectors: NFC, RFID, QR, iBeacon
Mobile Payment:Square, SumUp, Google Wallet
T H AT D R I V E M O B I L E C O M M E R C E :
Treiber: Social Media
Treiber: SoLoMo
Treiber: Digital-Physical-Convergence
New Behaviours
Shop everything everywhere anytime
Use whatever device is there !Get instant social feedback !Buy & Try > Return !Showrooming: choose offline/order online
T H AT D R I V E T H E C H A N G E :
Retail Store Sales in Germany, 2012H O W B A D I S I T ?
$
Quelle: BrandEins 04/13
- 4 %
- 3.000.000.000€€
Retail SalesH O W B A D I S I T ?
Physical StoreP R O : C O N T R A :
Costumer !Experience fashion !Immediate Take-Away
Costumer !Limited Selection !No time to decide !!!!
Company
Higher conversion rates !Lower return rates
Company !Showrooming !High fix costs/ Hard to “scale“
If the average online customer spends 100€ per order !
and the retailer has !
18.000 orders a year:
How much profit will they make?
$
Price QuestionW I N S O M E M O N E Y
Price QuestionW I N S O M E M O N E Y
Costs Minus RestAverage Basket Size 100,00 €
Returning 40 % -40,00 € 60,00 €Cost of Product 40 % -24,00 € 36,00 €
Discounts 10 % -6,00 € 30,00 €Cost of Advertising 10 % of ABS -10,00 € 20,00 €
Shipping 4,90 -4,90 10,93Callcenter/Fulfillment 13,5 -8,10 2,83
Shop Setup 40.000 € -2,22 € 17,78 €Product Shooting 35.000 1,95 15,83
Cost of IT 5 -3 -0,17
Result -60,16 -0,16
18.000 = -2880€Quelle: BrandEins 04/13
$
eCommerceP R O : C O N T R A :
Costumer !“Unlimited” products
Research & Compare
Costumer !Cannot touch and try !Waiting for delivery !!!
Company
Tracking of customer behavior !Instant improvement
Company !High return rate !!No “customer contact”and insights !
So what?
”eCommerce and stores both got their pro’s and con’s. If you know what you want, web shop is the place to go. For some products it’s nice to actually experience them and talk to somebody. !The perfect shopping experience in my opinion would be the combination of on- and offline regarding Information, Ordering, Delivery, Returning and Service in a seamless process - at a reasonable price.“ !Werner Reinartz Professor for Commerce and Customer Management at the „Wirtschafts- und Sozialwissenschaftlichen Fakultät“ of Cologne University
T H E S O L U T I O N I S
//
A N E W C O N C E P T ?
OmnichannelA N E W C O N C E P T ?
“Channel’ means nothing to the consumer – they think in terms of what they’re buying, not how they’re buying it.”
Quelle: h5p://www.harvardbusinessmanager.de/he=/ar>kel/a-‐816329.html
OmnichannelS C E N A R I O S
Omnichannel
1. Store to Web !2. Web to Store
3. Check and Reserve !4. Same Day Delivery
5. Pick-Up Return
S C E N A R I O S :
Omnichannel
Complex customer journeys !Multiple touchpoints
Seamless switch between devices !Blending of offline/online
Best of both worlds
24/7 – EVERYWHERE
C H A L L E N G E S :
Returning
Inspiration
Selecting
Wearing
OmnichannelC H A L L E N G E S : C O M P L E X C U S T O M E R J O U R N E Y S
Purchasing
$
Service DesignH O W I T C A N H E L P :
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
Service DesignH O W I T C A N H E L P :
///
Case „Kate Spade“S T O R E T O W E B / S A M E D AY D E L I V E R Y:
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
Case „Kate Spade“S T O R E T O W E B / S A M E D AY D E L I V E R Y:
Case „NIKE“F R O M P R O D U C T T O E X P E R I E N C E :
D I G I TA L P H Y S I C A L
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
Case „NIKE“F R O M P R O D U C T T O E X P E R I E N C E :
Enabler „Go Try It On“I N S TA N T S O C I A L F E E D B A C K :
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
I N S TA N T S O C I A L F E E D B A C K :
Enabler „Go Try It On“
Case „BONOBOS“W E B T O S T O R E :
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
Case „BONOBOS“W E B T O S T O R E :
Enabler „UPCLOAD“P E R F E C T F I T T I N G O N L I N E :
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
Enabler „UPCLOAD“P E R F E C T F I T T I N G O N L I N E :
Case „Burberry“P H Y S I C A L D I G I TA L M E LT D O W N :
Inspiration Selecting Purchasing Wearing Returning
Home
on the go
Store
Case „Burberry“P H Y S I C A L D I G I TA L M E LT D O W N :
Case „Burberry“P H Y S I C A L D I G I TA L M E LT D O W N :
”Then, there was the back end: one of our key strategies from day one was operational excellence. We wanted to be as admired and as respected for the back end of our business as for the front end. When I started, we had just embarked on a business-wide rollout of SAP.“ !Angela Ahrens, CEO of Burberry
Retail needs to be rethought: beyond online/offline as new integrative business/service models providing the best customer experience!
Exercise Plan the perfect retail experience for a persona
Retail experience map
What examplescan you share?What should thenext topic be?
servicedesignberlin.de
@SD_Berlin
fb.com/servicedesignberlin
