Transformando Retail en la era DigitalEzequiel SingerGoogle Enterprise Latin America@ezesinger
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PRE-MODERN PERIOD
pre-1945
RETAIL DEVELOPMENT
1945-1965 1965-1990
CONSOLIDATION OF RETAIL
1990-2000
Retail cambia cada 25 añosEl negocio físico siempre fue el centro de la transformación
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BIG BOX AND CATEGORY
KILLERS
In only a few years [Amazon] has become the business that everyone watches with a degree of apprehension, as well as admiration.Retail WeekJune 11, 2012
El cambio actual es claramente digital
Amazon North American Sales
U.S. Ecommerce Sales
U.S. Offline Retail Sales
Data: Census; Amazon
Sales Growth
Menos visitas físicas
2010 2013
38
17(Nov-Dec)
55%billions
Source: ShopperTrak data for Nov/Dec 2013, as cited in WSJ, Jan 2014.
Pero mas efectivas
2010 2013Source: Mastercard, Nov-Dec 2010 & Nov- Dec 2013, $B
$B offline sales (Nov-Dec)
ecomm +75%
offline +9%
$681$783 Note: there is an
animation
To stay competitive, companies must stop experimenting with digital and commit to transforming
themselves into full digital businesses.
“”
McKinsey & Co., 2014
Source: McKinsey & Co., The seven habits of highly effective digital enterprises, May 2014
Nuevas realidades del comercio
SIEMPRE ABIERTO, EN CUALQUIER LUGAR EN TODOS LADOS.
SIN LIMITES DE REAL ESTATE y HORARIOS LOCALGANAR TODO EL TRAFICO
Antiguamente, las estrategias de marketing competían por el “first moment of truth”
The In-store Experience
Web and Mobile Strategy
Bringing Digital to the Enterprise
Build and Host Applications
Customer Experience
eCommerce Revenue
Store Associate Engagement
Store Operations & Management
Customer Experience
Google transformando Retail
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Supply Chain Visibility
New Product Introduction
Big Data
41% more customers than a year ago have “showroomed”, browsing at least once in store and then buying online.
The Seamless Consumer Retail Survey, November 2013Accenture
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Clientes a un click de comprar en otro lado
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Clientes acostumbrados a buscar
Hayneedle on GoogleFind anything with
ecommerce Search
Search contributed to a 45% increase in our conversion rate, and a 116% increase in search-attributed revenue.Chris Chance, Director of ITSpeedway Motors
Growth of more than 20% in revenue per search with a 12% conversion lift.Brian Moen, CMOHayneedle
We are now in the New Digital Age
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Mass adoption of mobile
Social media and sharing
Frictionless transactions
Easy-to-use expectations
Always connected
Retailers are going Google
Big Box
Branded Goods
Grocery
Apparel
Hospitality
Specialty
All Saints on Going Google
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Improve the In-store Experience
The in-store experience
Web and mobile strategy
Digital Enterprise
Stores are faced with many challenges
High employee turnover
Balancing administrative
tasks
Constantly changing product
assortment
Maintaining store
profitability
High customer expectations
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38% of retail shoppers still cite the seamless customer experience as the main area for retailer improvement
The Seamless Consumer Retail Survey, November 2013Accenture
Improve the in-store experience
Increase Sales Reduce Operations & Labor Costs
Increase loyalty and repeat visits
Store Associate Effectiveness
Store Operationsand Management
Customer Experience
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Associates can’t keep up with the number of products, and number of customers
61% of shoppers believe they have access to more information about products than store associates.Motorola Solutions‘Retail Vision Survey’, May 2012
Improve store associate effectiveness
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Create sense of community in the store Local store promotions and contestsAlert urgent issues e.g. product recalls
Better train employeesCrowd-source best practicesMerchandising shares guidelines across stores
Simplify corporate information distributionStandard portal for HQ-to-store communicationsMaster store calendar and forms library
41% of shoppers were not satisfied with the ability to receive in-stock status while in-store.Motorola Solutions‘Retail Vision Survey’, May 2012
Cesar Ramanauskas, IT ManagerEAT
Our HR Department uses Sites to create internal websites for employees in stores to find all the information they need. Before there were only documents they couldn’t share.
EAT on GoogleSharing the information in-store employees need
Community sharing of best practices offers associates up-to-date product details and support.
CIO Waitrose
Waitrose on GoogleSharing best practices across stores
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Store operations and management is time consuming and labor intensive
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Managers spend more time on administration than on interacting with customers, coaching staff, and looking at the condition of their stores—combined.AT KearneyRetail Success Still Depends on Core Principles2013
Optimize store operations
Automate store processesForms and requestsMobile sales director app
Manage store eventsAutomate event logistics e.g. registration and cateringRecord for on-demand replay playback
Simplify task managementCentralize calendar for daily store tasksAssign and track tasks based on skill set and duration
Streamline field service operationsOptimize service routes with Geo Update the customer on field service status
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Specsavers on GoogleGoogle makes assigning store tasks easier
"Our employees have been using their own iPads, iPhones and Android devices to access their email and calendars. Google Apps is a positive step forward in terms of enabling their working lives."
Nigel Dufty, IT Service DirectorSpecsavers
“In order to focus on his core job - creating new pastries - Mister Hermé records recipes guidelines on video.
They are then shared with our pastry makers in France, Japan and
Middle-East.”
Sabrina Zouzou, CFOPierre Hermé Paris
“We automatized sales consolidation during rush
hours. Before regional directors would make 4000
calls a day to collect this information. Now they are automatically collected and
shared internationally, thanks to spreadsheets and graphs fed by Google Apps
Script.”
Laurent Rousset, CIOCelio
“We automatized merchandising auditing
activating Google+ communities. Stores post
pictures of their implementation. That way
regional directors can control in real time that the shelving that
was decided in the headquarters is in place in each location. This is also a good way
to archive them. ”
Louis de Haldat, CIOJennyfer
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The store faces intense online competition
Comparison shopping on a smartphone while in-store is up 400% over last yearParagoJuly 2013 study
55% of shoppers would purchase if an associate could find another location that had the item.MotorolaWhat’s Driving Tomorrow’s Retail Experience2012
Connect the customer in-store experience
Shopping Center Map Department Store Map
Enable location-based services Monitor customer dwell time in departmentsText message associates when customers need assistanceGoogle Maps indoor mappingSend offers to customers while they are in the store
51% of retailers consider improving customer service as a primary driver for technology investment.Motorola, What’s Driving Tomorrow’s Retail Experience, 2012
Deliver better information with in-store devicesIn-store kiosks reduce wait-timeUse hang-outs to connect with experts at HQ or another storeDigital signage placeholder
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Customers like using Chromebox kiosks - they
resume instantly, are lightning-fast at handling web apps and basically crash-free.
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Improve in-store customer experiencePersonalize the shopping experience
A large Big Box Retail identified potential
revenue increase per store of $880k
annually
Geo Identity Analytics
Where are customers?Where are my locations?Where are our devices?
Who is in my location?Tell me about them.Where did they go?
How many visitors?Where do people spend time?
What paths did they travel?
Deliver web and mobile strategy
The in-store experience
Web and mobile strategy
Digital Enterprise
Deliver on web and mobile strategy
Speed time to market and reduce IT costs
Increase traffic, sales and loyalty
Increase sales and Units Per Transaction
Build and host applications
Customer experience
eCommerce Revenue
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Building with Traditional IT is slow and expensive
Gary Koelling, Director of emerging platformsBest Buy
“Because of theplatform design, an application administrator had to make changes manually, which was time-consuming and prone to errors.”
Build and host applications
Build apps quickly and effectively with Google’s Platform
Host existing web apps on Google infrastructure
Gary Koelling, Director of emerging platformsBest Buy
Our experience transferring Giftag onto Google App Engine really changed how we do things. We can use far fewer developers, and we don’t have to spend any time doing system administration or setting up servers, which allows us to focus on the development and testing new ideas.
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Customers expect engagement at every point of contact
Your business is now operating in an age where customers rule. They like this new-found empowerment, and increasingly expect sellers to connect with them.Entrepreneur MagazineFebruary, 2014
Connect the entire customer experience
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Help customers track deliveries, in real-timeLeverage Geo and Cloud Platform solutions to create custom portal
Drive traffic to your store with a custom mapGeo store locator
Reach out to customers with live video & shopping eventsG+ Hangouts On Air for shopping eventsG+ Helpouts connect customers and experts live, on the web
With eroding store sales, the route for retailers to earn a larger share of wallet is through deeper, omni-channel customer engagement.EKN, The Future of Retail Analytics2013
Celio on GoogleCrowd-sources next year’s product line
Merchandisers gather feedback from store managers and loyalty card holders
Laurent Thoumine, CIOCelio
For the World Cup, our 6,000 employees and our loyal customers have chosen the design for our collections, via the internal network Google+. The fashion department extends to the whole company!
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"Google Apps allows us to do things our way, wherever and whenever we want."
1,250 staff members stay on top of day-to-day operations and build ties with the local community
"Where's My Order" mobile app integrates with Google Maps to show our customers the exact location of the delivery truck carrying their order
Google Compute Engine powers the 3D vision technology that guides our robots through order fulfillment
Paul Clarke, Director of Technology of Ocado
Ocado on GoogleEnabling full digital business transformation
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Ocado on GoogleExceeding customers delivery expectations
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Zales on GoogleBring the expert to you via the web
Bringing digital to the enterprise
The in-store experience
Web and mobile strategy
Digital Enterprise
When you dig deep into what actually generates profits for today’s most
successful retail companies, it turns out they’re simply good at what great
retailers have always been good at: the nuts and bolts of operations.
AT KearneyRetail Success Still Depends on Core
Principles2013
Today, retail operations means more than just the basics
To stay competitive, companies must stop experimenting with digital and commit to transforming themselves into full digital
businesses.
McKinsey & Co.2014
Bringing digital into the enterprise
Deliver products more efficiently
Increase brand equity and competitiveness
Supply chain visibility
New product introduction
Data-driven decisions
Better insight across marketing and merchandising
Communicating through the supply chain is inefficient
Our communication tools weren’t flexible enough to make decisions on the go and we couldn’t guarantee that we were running the same promotions at the same time.
Jaime Garcia, IT Corporate Director of the All Inclusive Collection, Hard Rock Hotels
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Improve supply chain visibility
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Collaborate across the supply chainGoogle Sites, Hangouts, Sheets and Docs
Monitor and track delivery routesGeo for logistics, asset and material tracking
Share delivery locations across devices and departmentsGoogle Geo for visibility into supply chain routes
We can update drivers in real time if the recipient wants to change his delivery address along the way.
Bernard Lemaire, CHROChronopost
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● Track global orders/shipments● Get alerted about potential shipment
disruptions● Live weather, traffic, and social
media integration● Seamlessly manage and re-route
orders
We selected the iSpatial/Google tool due to low cost and high flexibility. The iSpatial tool allows our relatively small Analysis department to effectively analyze all of these problems.
Large CPG Company in North America
iSpatial on Google Supply chain visualization
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Data is a core business asset. It is the difference between having competitive advantage or falling behind.
The future of big data isn’t collecting it.It’s being able to attribute and leverage it to understand and make decisions across your entire business
● Merchandising Effectiveness● eCommerce performance● Marketing ROI● Supply chain ● Store peformance● Customer experience● New Product Analysis
Why care about Data?
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Big Data Solutions
Internal Data Social Data Sensor Data Google & Other 3rd Party Data
HOW CAN I COMBINE ALL OF MY TRANSACTIONAL
DATA WITH OTHER DATA?
HOW CAN I CAPTURE MORE CUSTOMER
INTERACTIONS?
WHAT DO CUSTOMERS SAY ABOUT MY BUSINESS?
HOW CAN GOOGLE DATA HELP ME WITH MULTI-CHANNEL
MODELING?
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Challenge● No way to explore how sales patterns, shopper behavior, and effect of
weather were having on inventory and supply chain.● The company focused on identifying similar storms, classifying them by
severity, and measuring their effects on sales before, during, and after their peaks.
Results● Performed a study that provided new insights into consumers’ behavior
during snowstorms by combining point-of-sale (POS) and government meteorological data, 1.3 bilion rows of data
● Identified top products that ran out of stock or spoiled during storms● Allowed them to predict future impact, adjust supply chain and staffing
Interactions Marketing on GoogleIncrease sales in stores by localizing merchandising
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SOLMO on Google Improving in-store merchandising and sales
A large Big Box Retail identified potential
revenue increase per store of $880k
annually
Combine in-store traffic and Point of Sale data, improve conversion, UPT, and revenue
Geo Identity Analytics
Where are customers?Where are my locations?Where are our devices?
Who is in my location?Tell me about them.Where did they go?
How many visitors?Where do people spend time?
What paths did they travel?
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Introducing new products is a strategic priority
Private Label brands' comparable quality at significantly lower cost ... translates into wider choice for customers and higher margins for retailers.
AccentureHarnessing the Power of Private Label in Retail2012
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Information Week, 1/15/2014
Streamline New Product Introduction
Develop IdeasGather feedback through forms, communities of interest (G+) and Google Moderator
Share and Track Activities and DesignsManage and collaborate on content, both externally and internallyCommunicate with distribution channels
Distribute Content to ChannelShare a final product informationDevelop & Deploy Training Content
Celio on GoogleReducing the cycle time for bringing products to market
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Using Google Drive and Google Sites, we were able to create an extranet that centralizes our manufacturing, textile purchasing and logistics documents. Before, this used to be shared using email, FTP server or external sharing services like Dropbox, creating constant problems with clogged email and version control.
How will you transform retail?
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The retail industry is in the throes of implausible and dynamic change, and
most industry watchers expect the velocity of change to only increase over
the next five years.
In The Store | Web & Mobile | Business Productivity
Retail Solutions Quick Reference Cards
The In-store Experience
Web and Mobile Strategy
Bringing Digital to the Enterprise
Google can help retailers innovate
GSACloud Storage Chrome DevicesGeoApps Big QueryApp Engine
Store Associate Engagement
Store Operations & Management
Customer Experience
The In-store Experience
Build and Host Applications
Digital Customer Experience
eCommerce Revenue
Web and Mobile Strategy
Supply Chain Visibility
New Product Introduction
Big Data
Google can help retailers innovate
Increase Store Sales & Optimize Labor Costs
Lower costs, increase traffic, and Increase online sales
Greater differentiation
Use Cases
Benefits
Bringing Digital to the Enterprise
Better train employees
Crowd-source best practices
Redirect associates to customers in real-time
Store Associate Engagement
Automate store processes
Manage store events
Simplify task management
Streamline field service operations
Store Operationsand Management
Transform the store for managers, employees, and customers
Customer Experience
Shorten customer waiting with in-store kiosks
Deliver relevant offers when customer is near
Help customers navigate the store with maps
Connect with an expert from an in-store device
Increase Sales Reduce Operations & Labor Costs
Increase loyalty and repeat visits
Scenarios
Use Cases
Benefits
Build apps quickly and effectively with
Google’s platform
Host existing apps on Google’s
infrastructure
Build and host applications
Reach out to customers with live video and shopping events
Drive traffic to your store with a custom map
Help customers track deliveries, in real-time
Customer experience
Deliver on your web and mobile strategy
eCommerce revenue
Include search on your site
Lower technology costs
Increase loyalty and customer
satisfaction
Increase sales and Units per transaction
Scenarios
Use Cases
Benefits
Collaborate across the supply chain
Monitor and track delivery routes
Share delivery locations across devices and
departments
Supply chain visibility
Develop ideas
Share and Track Activities and Designs
Distribute Content to Channel
New product introduction
Bringing digital to the enterprise
Data-driven decisions
Include internal, social, sensor, and 3rd party data
in your analysis
Deliver products more efficiently
Increase brand equity and
competitiveness
Better insight across marketing and merchandising
Scenarios
Use Cases
Benefits
Extra Slides
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Radical Shifts in Retail
After years of showrooming and online retail commanding more attention, the data-driven shopping experience is set to land inside brick-and-mortar stores.Entrepreneur MagazineJune 2014
Data-driven Business
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Digital becomes essential to the store
With eroding store sales, the route for brick-and-mortar retailers to earn a larger share of wallet is through deeper, omni-channel customer engagement.EKNThe Future of Retail Analytics2013
Radical Shifts in Retail
Google confidential | Do not distribute
Radical Shifts in RetailFast service is more important than ever
Wait-related issues is the #1 reason retailers lose customers.TimetradeRetail Industry Executive Survey2013
Quote List
"Since we've gone Google, the teams can now focus on their work, like responding quickly to customer requests and around-the-clock product shipping services. This means we now deliver a fun and convenient shopping experience, keeping our customers happy and coming back for more."
Prasad Vootla, Senior Director of Engineering Operations
Snapdeal.com
"Retailers will try to manage the rush of last-minute shoppers with expanded hours, extra employees to stock shelves, and a lot of sales and promotions"
Tracy MullinNRF PresidentCEO Tracy Mullin
Google confidential | Do not distributeGoogle confidential | Do not distribute
Market Insights
Analyze feasibilityAnalyze social media to track trends and opportunities
Visualize target customers and trends with mapsBuild and share business models with sheets
Find ideasUse Analytics on product usage and adoption
Analyze data from social, channel partners, the supply chain and internal systems
Timely and reliable knowledge about customer preferences is most important information necessary for product development.
Harvard Business Review
1. Build a single customer experience
2. Search for a unified transaction platform
3. Have a mobile strategy
4. Understand other CxOs better
5. Big data
6. Need for speed with disruptive technologies
7. Manage security
8. Bring all your data people under one roof
9. Go cloud!
10. Up-skill staff and/or find digitally talented people
Top 10 priorities for Retail CIOs
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Information Week, 1/15/2014
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Stores rely on word-of-mouth to communicate
In retail, things change all the time and emailing about employee schedules, promotional timelines or new merchandise availability meant that the information was quickly out of date and risked employees having inaccurate information.
John Edelman, CEODesign Within Reach
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