Benchmark Practices

The Ultimate Store Of The Future

 Worldwide Best Benchmarking Practices
 Over 50 Companies Studied
 12 Different Industry Sectors
 Paradigm shift from Traditional to Digital World
 Because in 2017 Customer will Shop Anytime,
Anywhere, Anyhow and with Anydevice
 Because Consumers are be SOcial, LOcal, and Mobile
 Because the Profits of your Company will be higher if
these benchmarking policies are followed
 Industry Category : Retail
 Task 1 : Multi-Channel Strategy
Created By Saket Toshniwal :- Master in digital Marketing and CRM, IESEG – 2015-16
Created By Saket Toshniwal
 ADIDAS
-Body Scanner lets you try clothes on virtually
• ”BodyKinectizer“ is a body scanner based on Microsoft Kinect which enables customers
to determine the right size of a product and allows them to dress their virtual body –
whether you in a shop or at home.
• A 3D environment automatically puts the customer into a virtual world directly linked to
the product the customer brought into the fitting room.

Created By Saket Toshniwal https://youtu.be/4HuAqKkzpp0

https://youtu.be/9ItscpgGdMw
The EBay logged mirror the changing room
makeover
It begins by recognizing,
through RFID tags,
clothes that go into the
fitting room. The product
sheets articles are
displayed on the touch
mirror. The customer can
see if other sizes and
other colors exist, and if
they are in stock

https://youtu.be/7QmiXz_Xs1M
 Findbox
3D scanner that helps shoppers find an item

• Findbox identifies
objects carried by
customers and then
suggest suitable
matching products
available on the store’s
shelf or in stock.
• https://youtu.be/pwQ-
vNTl6xM

Created By Saket Toshniwal

• Price Matching Strategy
- Their promise is that they will always give the lowest price, Always.

• Customers want Personalized Experience*

a) 55% want their retailer to use prior purchasing to offer new promotions
b) 45% want their prior purchases to result in new recommendations
c) 43% want their retailer to invite them to event
d) 36% want their retailers to involve them in new product ideas
* Source: IBM Institute of Business Value. Surveyed 26737 Shoppers in 14 Different Countries.

• Exclusivity of Brands
-Having exclusive products and exclusive brands only in your store
does not leave showroomers (showroom-hopper-customers) an room
to try for lower price somewhere else
Created By Saket Toshniwal
Customers are
Interested in New
Retail Concepts that
Improve Shopping
Experience
a) Use in-store digital devices
( e.g. Kiosks, PDA’s in
Shopping cart)
b) Mobile App to support in-
store shopping(Store map,
c) Receive Inspirational
Videos ( How-To videos,
recipes)
d) Find out about new
products via social media,
blog and aided channel
Created By Saket Toshniwal
 Audi
Virtual Reality Helmets To Try Cars
before you buy your next Audi.

https://youtu.be/5dF3oY28Tb0
• "Virtual Reality Audi experience", the customer can see
virtually driving his Audi future and observe all options
(color, equipment, leather interior ...) he has chosen. To
make the illusion perfect, the helmet is equipped with
speakers signed Bang & Olufsen, for example to hear
the sound made by closing the door.
• This virtual reality experience is intended "to high-
growth markets," says the brand (Asia, North
America). It complements the network "Audi City"
concessions that are similar to digital showrooms, with
interactive wall displays including giants
Video Link :
 Thomas Cook
TRAVEL OFFERS TO TEST BEFORE BUYING YOUR TRAVEL
• The idea is to offer
customers to experience a
part of the trip before you
buy. The virtual reality
helmet allows for example to
immerse themselves in flight
over Manhattan by
helicopter or visit a hotel on
the island of Rhodes, rooms
at the pool, going to the
beach.
• Customers become more
convinced to buy the right
travel package.

Created By Saket Toshniwal

Created By Saket Toshniwal
Created By Saket Toshniwal
 OMNI Channel Customer Experience
Shift From Cross Channel to
Omni Channel Example: ZARA - practices this

https://www.youtube.com/watch?v=4udQ4P4E8OM
• Order by scanning
bar-code

• Find Best Prices

and Promotions

• Find recipes to
cook your meal

• Get Predictive Data

on what you
purchase

• Mobile Integration
to guide you in
store

• On-the-move , In-
Example of Connected Store :
the-house, In-the-
https://www.youtube.com/watch?v=FHc8oxOu-ow
store , Everywhere
 IBM is interested in facial recognition
to pierce the emotions of customers
• IBM’S facial recognition as a means to
gather information on consumer
perceptions facing shelf products.
• Do they Look
Surprised? Charmed? Sad? The IBM
camera discreetly filmed
consumers. This prototype is able not
only to identify the sex and age of a
customer, but also to break his
emotions based on facial expressions.
Created By Saket Toshniwal
INVEST ON DIGITAL – MOBILE INTEGRATION

Created By Saket Toshniwal

 RETAILER: ‘GAMESTOP’ – USA
Beacons are new followers
• It imagines use both simple and
very effective beacons,
approaching its smartphone a
video game set on a display, the
customer sees appear on the
screen additional content, such as
video presentation, opinions of
players , screenshots of the
games etc ...
• The experience is very fluid. No
need to take a picture of a QR
code. You just have downloaded
the app GameStop. The
information then appear simply
by bringing the phone's display.
• A mobile app for customers to be
detected by the beacon sensor
located into the branch
• Alerts staff in real time that a
customer has arrived and the
reason of the meeting
Created By Saket Toshniwal
 iBeacon as an opportunity to add another
dimension to customer service

• Special offers and other

incentives sent to customers
when they are in or walk past
a store
• Alerts staff that a customer
has arrived for a pre-ordered
item and can remind the
customer that they are in a
place that has an item on their
digital shopping list.
• Customers who want faster
recognition can upload their
photo onto the mobile
application (iBeacon is an opt-
in service)

Created By Saket Toshniwal

 In-Store Customer
Experience
• Augmented Reality ( as described earlier)
• Customer can just click a picture of their
house upload it in the software and they
can see the alternative products as per
their needs
• Gamification Marketing
• Retailer in clothing for face recognition to
make the customer choose the right
product that suits the personality of the
customer
• Technology Identify the
tastes/preferences of customer and
record in data warehouse for further
upselling and cross-selling
• Guide to nearest store – With the phones
• Ease of Selection of right product at the
right price

https://www.youtube.com/watch?v=4udQ4P4E8OM

Created By Saket Toshniwal

Created By Saket Toshniwal
Restaurant replaces waiters with iPads
• Eatsa – restaurant in San Francisco that has no
waiters. The customer orders on an iPad and
when their name comes up on a transparent
LCD screen box, they pull out the dish from
the box.
• Company Saves Cost and Improved Customer
Experience by Being Fast with Digital Media
• Co-founder Tim Young said, “Eatsa’s really all
about bringing the speed and affordability you
might find in fast food with the nutrition in
fast casual,”
Created By Saket Toshniwal
 Order Ahead on
mobile at
Starbucks

https://youtube/bwk7zmSBg9w

• Using the mobile app, customers will select the items and the location for pickup
and the app will show the approximate wait time before the order is placed.
• When the order is placed, payment is made from the customer’s registered
Starbucks Card.
• The customer then simply walks into the coffee shop, identify themselves and
then collect the order.
US burger chain, Hardee’s,
have launched self service
kiosks in their fast food
restaurants. The kiosks
allow customers to
customise and order a
burger before collecting it
at the counter. The kiosks
use e-commerce
techniques such as cross-
sell to ultimately increase
average order size as well
as reduce waiting times
and let the staff focus on
preparing the food.
https://youtu.be/IyeK_iouRdM
Created By Saket Toshniwal
Single View Of Customer And Data For
World-class Customer Management
Just Remember to K.I.S.S. - “Keep It Simple, Stupid”
– Steve Jobs
Omni Channel Matrix for
Technology

Created By Saket Toshniwal

Created By Saket Toshniwal
 Walmart Inventory
Management
Cross Docking As Inventory Tactic - It
means the direct transfer of products
from inbound or outbound truck
trailers without extra storage, by
unloading items from an incoming
semi-trailer truck or railroad car and
loading these materials directly into
outbound trucks, trailers, or rail cars
(and vice versa), with no storage in
between.

Predicting the right inventory-

state-of-the-art technology and
network design allow Walmart to
accurately forecast demand, track
and predict inventory levels, create
highly efficient transportation routes,
and manage customer relationships
and service response logistics.

Using smart tags, read by a handheld

scanner

Created By Saket Toshniwal

 Best Benchmark Practices
• Investment in supply chain infrastructure and systems will enable real-time
inventory visibility, forecast accuracy, and flexible returns
• Data-centric supply chain with focus on digital era metrics need to be adopted
by retailers so that Online costs need to be measured or else this might amplify
inefficiencies in both offline and online models
• five functional areas: Inventory, Warehouse, Suppliers, Transportation, People
• Supplier collaboration and recycling initiatives with reverse logistics and top
sustainability initiatives.
• Supply chain transformation to enable omnichannel delivery
• Same-day delivery to customers and installation
• Omni Channer Distribution
• Set Up Distributed Order Management ( DOM ) Technology
• Setup Miniature Warehouse Management Systems so that stores become a
mini distribution center for online orders
• Train Al Associates with their “NEW” roles
 Asda – Non Manned Store for Pick and Delivery
•

Customers order their products online then drive to the

unmanned store where they will be able to collect the order from
the automated locker. The customer will activate the locker using
their mobile; one of the ways to do this will be via scanning a QR
code using the Asda mobile app. The locker will then collect the
trays containing the customer order and present to the customer
who can then load into their car.
The 24/7 unmanned store, located just outside Liverpool will pick
it’s orders from a nearby/neighbouring store.
Created By Saket Toshniwal
 Hardis Group
A drone is responsible for inventory

Another amazing innovation presented at the Retail Big Show: a drone that can take
inventory in stores. The device was developed by an Indian company, Wipro. Equipped
with a camera, the UAV travels rays, scans the shelves, identifies missing goods and real-
time warning of shortages.
Created By Saket Toshniwal
Complete
Integration
Of
Marketing
Matrix

See Next Slide

for this

Integrating 8P’s of
Marketing In Channels Created By Saket Toshniwal
Pyramid Of Success for SEO

Customers Become
Brand Advocates – You
Reach Virally

Encourages Customer
To Love Your Brand and
Come Back

Customers Reach
Your Store Faster

Basics

Created By Saket Toshniwal

 Apple Pay
Marks & Spencer, Waitrose
and Boots are among the
first UK retailers to adopt
ApplePay in the UK for it’s
launch.
The NFC sensor on device
means you can tap them
on the Chip & PIN terminal
to make a purchase. Users
of the iPhone 6 will
authenticate using their
fingerprint, whilst Apple
Watch users will enter a
secure PIN when they put
on the watch which then
locks the watch again
when it is removed from
the body.
 Tesco
Convenience Purchases Can Be
Really Quick With Mobile
UK based PowaTag and Tesco joined forces to offer
shoppers at a Tesco Metro branch in London to
take the Meal Deal Express 30 Second Challenge.
In this proof of concept exercise, customers paid
for their Meal Deals with PowaTag and were in and
out of the store in 30 seconds leaving more time to
enjoy their lunch breaks.
The idea behind PowaTag is that customers
download the PowaTag app, register their details
and then using the app, scan a QR code identifying
the product they want to purchase and then leave
the store with purchase in hand. In the background
the app ensures money is transferred from your
account via one of your payment cards that it has
remembered. Customers can then go on and use
the app at participating retailers. Beacons and NFC
also provide other physical ways for people to scan
the product.
The other use of PowaTag is to scan a code on a
website, printed media or even digital sign and the
product will be paid for and then despatched to
your default delivery address.
 CATEGORY

EMPLOYEE TRAINING

Created By Saket Toshniwal

• Well-defined training plan; mandatory to attend
training of at least 80 hours per year. Eg : UCAA
• Make it memorable and situational e.g. Tata
https://www.youtube.com/watch?v=IVxN99KLU1A
• Make it interactive and feedback oriented e.g. Keller
Williams Realty, Inc.
• Enforce the ethics hotline with proper code of conduct
e.g. Wequassett Resort and Golf Club
• Repeat It – It improves commitment and efficiency.
• Train Your Suppliers and Marketplace Venders E.g.
Flipkart Pvt Ltd
https://www.youtube.com/watch?v=QrC_ThzikCM
Created By Saket Toshniwal
• Application Problems- The technology available in one country may not be feasible
for some other country due to people, costs and culture-behavioral issues.
• Creating Omni-Channel Experience is the future of Retail. The Web-To-Store
approach has been successful in the past and will continue in future.
• Customer-First Approach is necessary to build customer retention and build long
term profitability. User Experience is both In-Store and Out-Of-Store. Thus,
connected stores becomes important.
• Augmented reality is the ‘Next Big Thing’ for customer-experience.
• Ambient and Focused Lighting in a store helps to engage customer, make the store
look exceptional and drive sales for the store.
• Using of Data and Technology to Drive Sales –Predictive Demand Analysis
• Supply Chain Management is overlooked by most of the stores. But those leverage
technology to support their stores, Succeed.
• Employee Training is extremely crucial in the connected world.
• Payment options and methods should be easy and quick.
• The Most Successful Companies make things/interfaces that is Simple to Use, Easy to
Understand and Create high utility for its customers.
Saket Toshniwal
Created By Saket Toshniwal
 References
• http://retail-innovation.com/walmarts-drive-through-
format/
• https://www.youtube.com/watch?v=IVxN99KLU1A
• https://www.youtube.com/watch?v=QrC_ThzikCM
• Saatchi & Saatchi Blog – Asda to launch unmanned click
and collect sites
The Telegraph – Asda looks to Click and Collect to crack the
South East
Interactive Investor – Asda unveils £600m investment in
stores
• http://retail-innovation.com/
• http://walmart.com/shipping
• http://starbucks/shipping
Created By Saket Toshniwal