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Panasonic Toughpad FZ-R1 User's Manual

1. The Economist Intelligence Unit Limited 2015 3 John Lewis Partnership plc Interim results for the half year ended 26 July 2014 John Lewis Partnership Available at http www johnlewispartnership co uk media press y2014 press release 11 september 2014 john lewis partnership plc interim results for the half year ended 26 July 2014 html and Macy s Inc Reports Third Quarter Earnings of 61 Cents Per Diluted Share an Increase of 30 over Last Year Macy s Available at http phx corporate ir net phoenix zhtml c 84477 amp p irol newsArticle amp ID 1988760 Tesco and Morrisons see sales slide BBC News January 9th 2014 Available at http www bbc co uk news business 25664398 The Intelligence Economist Unit 66 Consumers value speed simplicity quick responses to questions and reliable delivery rather than worrying about whether they shop online orin store 29 5 Ts the Internet killing traditional shopping malls WWL August 28th 2014 Available at http www wwl com pages 19787977 php 6 Bloated US retailers must cut stores to survive FT December 16th 2013 Available at http www ft com cms s 0 e5df2eac 6443 11e3 98e2 00144feabdc0 html axzz3LzWMe2rtB 7 America s Shopping Malls Are Dying A Slow Ugly Death Business Insider January 31st 2014 Available at http www businessinsider com shopping malls are going extinct 2014
2. The company is trialling ideas including drive through pick up of orders and mobile phone checkout at stores to avoid queues Wal Mart shows both how retailers must respond to customer demands for more flexible and speedy service and how traditional retailers must rethink the use of their store networks Physical stores are not obsolete Rather they are nowa core pillar of an omnichannel strategy even if fewer people actually buy their goods there edge to retailers battling the price advantages of an online seller such as Amazon which is largely reliant on people being around for home delivery But stores are also looking to new technology both to encourage people to buy things in store and to foster the advantages of bricks and mortar for product research Leading omnichannel retailers such as Macy s John Lewis and indeed Apple are experimenting with technology that makes it easier for people to shop in store As wellas arming assistants with tablet computers so that they can workin partnership with online sales they are looking for ways to allow people to bypass the long queues at peak hours from payments apps such as Apple Pay that allow people to pay over their The Economist Intelligence Unit Limited 2015 Intelligence Unit 1 Walmart Announces New Large Scale Centers Dedicated to Filling Online Orders Walmart October 1st 2013 Available at http news walmart com 2013 10 01 walmart announ
3. but it will continue to have a huge impact on the business of individual retailers Put another way some will lose sales heavily while others will learn to compete across the board and thrive Some retailers are taking a phased approach to this M amp S for example talks of an evolution from being a bricks and mortar retailer to a multichannel company selling over different platforms and eventually to an omnichannel retailer integrating all of the different platforms not only for sales but also in terms of its marketing effort logistics and branding see case study below Intelligence Unit 8 US Department of Commerce Quarterly Retail E Commerce Sales 3rd Quarter 2014 US Census Bureau News Available at http www census gov retail mrts www data pdf ec_current pdf Home Depot Earnings Driven by Big Ticket Items The Wall Street Journal August 19th 2014 Available at http www wsj com articles home depot raises outlook after earnings rise 1408443787 mobile y 10 Marks amp Spencer launches online drive The Telegraph May 1st 2014 Available at http www telegraph co uk finance newsbysector retailandconsumer 10802873 Marks and Spencer launches online drive html Case study Marks amp Spencer s aspiration to become omnichannel Go back to 2009 and Marks amp Spencer M amp S looked to be in some trouble as it announced the appointment of a new boss Marc Bolland The 150
4. m w Other C level executive please specify o More than one C level executive share this responsibility equally please specify Don t know not applicable Ai bei What level of maturity has your organisation achieved in customer experience management retail respondents gt Our primary focus is on building relationships with customers to increase satisfaction 35 Our primary focus is on acquiring customers to drive sales w bi Our primary focus is on building customer loyalty and preventing churn Our primary focus is on converting customers into brand advocates ambassadors 1 i ther please specify Don t know not applicable Which of the following statements best describes your organisation s current approach to aligning the customer experience across channels and function retail respondents We are developing a holistic approach to shaping the customer experience and have unified some complementary channels and or functions but have not yet achieved a seamless experience 37 We promote collaboration among customer facing functions to ensure consistency across channels but we have not yet attempted systematic linkages among channels or functions We have established a seamless omni channel experience across the entire customer journey supported by structured communications among all customer facing functions 1 We are starting internal discussions on how to align the customer experi
5. N w o m o Ea o gt Ho mm D ER E E Si EN EI E Si Si E E dg fa E E R 3 Wo B Bs D z E A E E e W a WC T Bio Ho ou ao gt imo 2 Ms E E o ix 3s W oO N N Ee ns a bi Le ns a np Ei nN GC e w E GC N N a 24 22 24 18 11 16 Laptop 27 28 20 9 10 Tablet 16 18 13 10 27 The Economist Intelligence Unit Limited 2015 EN The Intelligence Economist Unit Creating a seamless retail customer experience How has the quality of your overall experience as a customer changed over the past three years respondents gt My experiences have become worse 7 My experiences have become better My experiences have not changed E Not sure Thinking of the ideal customer experience which of the following elements are most important to you ger SSS 3 a Fo sg x o a 8 a o 0 2 S 88 S age Lo o OO D 39 E TT Ei Ls e o 2 SS ES bd Ed bd o D 2 O bi 3 co D a A N Simple purchasing processes Ki gt D ility to track orders in real time w Ka Clarity and simplicity of product information across channels gt bility to interact with the company over multiple channels eg in person e mail online mobile phone gt cess to more in depth product information in stores through technology gt D ility to interact with the company via multiple channels 24 7 1 Consistency of product information across channels 1 A more pe
6. accounted for just 6 6 of total retail sales in the third quarter of 2014 although this was up from around 4 five years ago And there is little sign that people will stop going to the shops for basics such as clothes and food any time soon People still want to see and try certain goods before buying them For some retailers such reasoning remains compelling discount supermarkets such as Germany s Aldi and Lidl concentrate on achieving economies of scale in store to undercut bigger rivals They have largely ignored online and smartphone sales because they would dilute their core offering a relatively limited number of goods stacked high and sold cheap However for other retailers the new technology has already had an impact well beyond its size Simply put online and increasingly also mobile technology is changing the way people shop and retailers must be up to speed regarding these new platforms to compete Partly this is because online will continue to take an increasing proportion of the market in the UK for example online retail sales accounted for almost 11 of total sales in the third quarter 2014 compared with under 7 in the US but these shares are expected to double or even triple over the next two decades Indeed the US online retail growth trajectory is likely to be even more impressive than the UK story because the US share is starting from a lower base but in a more developed economy Hence m
7. or negative comments Source The Economist Intelligence Unit survey September 2014 The Economist Intelligence Unit Limited 2015 3 Creating a seamless retail customer experience Case study Wal Mart shows how physical stores remain a core pillar of an omnichannel strategy Only one bricks and mortar retailer makes it into the top five for customer service in our survey Wal Mart of the US which has embraced omnichannelLas a way to compete with Amazon and in response to changing shopping habits For now its online sales remain small However itis experimenting with a host of initiatives designed not just to integrate its big store presence with its online one but also to make shopping easier and quicker and to make its store network useful to today s connected consumer Wal Mart got into e commerce more than a decade ago but it remains a small part ofits business net sales were US 473bn in the year to end January 2014 of which online accounted for just US 10bn or 2 Even in absolute terms the world s biggest retailer remains a minnow among web sellers with Amazon outselling it by a factor of around seven to one So when Wal Mart decided to go omnichannel it was not trying to transform itself into an Internet seller Rather it was trying to combine its biggest asset a large store network with new technology to avoid having its customers poached by dedicated online sellers Function of physical
8. s choice by 9 am the next day Lacking a physical store network online companies are looking to team up with general retailers to plug the gap with click and collect which is proving popular as a way for working people to bypass the problem of having to be at home to receive a delivery eBay decided to trial this in the UK one of the most developed click and collect and online retail markets through a tie up with Argos a catalogue cum online retailer with around 650 stores nationwide where close to one third of online orders are via its click and collect service Analysts expect click and collect to soar in popularity as it becomes more established the retail consultancy Verdict for example expects the UK market to grow by more than 80 from today s levels to 6 5bn by 2019 That is prompting retailers to experiment with new collection methods including lockers and Creating a seamless retail customer experience for food chilled lockers at train stations Some supermarkets such as Wal Mart in the US are experimenting with dedicated drive through collection points for online orders at existing stores see case study on the next page In essence this is a response to consumer demands to be able to shop whenever they want and to pick things up at their convenience There is plenty of overlap between online and traditional retailers in areas such as click and collect as they respond to the problems of online
9. across all channels Ability to engage customers in real time 24 7 Don t know not applicable o Which of the following features does your organisation currently provide Please select all that apply of retailers that use mobile applications as channel to interact with customers Information from mobile applications is integrated with other channels a KI Mobile applications are customised and branded KA w Mobile applications provide location specific product information 46 Don t know not applicable 4 The Economist Intelligence Unit Limited 2015 31 The Intelligence Econ asdi Unit Creating a seamless retail customer experience Which of the following capabilities does your organisation currently provide Please select all that apply of retailers that use bricks and mortar premises or kiosks as channels to interact with customers CO a bi Ss D E a Lo Ki Lo o oO Lo Shop and ship in stores KI Store pickup of online purchases Online viewing of in store inventory w Promotion of new merchandise through technology such as digital signage w a Price matching using online resources Mobile point of sale 14 Facial recognition to target appropriate eg age gender etc messaging to in store customers Which of the following methods does your organisation use to support a consistent omni channel experience for customers Please select all that apply ret
10. as part of a wider rationalisation of the company s fragmented distribution chain And some flagship stores are embracing multichannel with assistants wielding tablet computers so that they can use the website to offer in store customers a wider product choice and kiosks to allow people to self serve online This development has not turned M amp S into a state of the art omnichannel retailer yet there is no sign of beacon technology to guide people around purchases and the store for example and many of the smaller stores use only parts of the new approach for lack of space But enough has been done to forge a multichannel future for M amp S including the use of online technology to increase international sales in markets for example some of the smaller EU countries where it lacks a store presence seamless customer journey only one third of retailers have customised their online content for different devices such as tablet and mobile phone use Perhaps even more tellingly most two thirds still look at simple sales volumes as a way of measuring performance and largely ignore longer term questions such as the length of customer engagement only 27 of retail respondents For customers increasingly used to shopping over a variety of platforms the effects of this can seem absurd One retailjournalist tells the tale of how he tried to buy a Star Wars figure online from a big retailer The retailer simply sent him whicheve
11. is changing the mix of sales away from physical stores Miya Knights senior research analyst at IDC an American market research company points to a study which suggests that the UK has over 20 more store space than it needs for today s sales levels while 15 of US shopping mall store space is expected to shut over the next five years This shift while being accelerated by the rise of online shopping would have happened anyway Shopping malls have been built apace in the US The Economist Intelligence Unit Limited 2015 since the 1950s for example and there is now simply too much shopping space for people s wallets to support making rationalisation inevitable According to the International Council of Shopping Centres ICSC for every American shopper there is 23 8 sq ft of shopping mall space compared with 5 sq ftin the UK 3 9 sq ftin Japan and 2 7 sq ftin Germany No new enclosed malls have been built since 2006 in the US and the financial crisis of 2008 09 has hit consumer confidence and spending power hard enough to make mall closures inevitable Howard Davidowitz chairman of the retail consultancy Davidowitz amp Associates expects up to half of America s shopping malls to fail within 15 to 20 years The direct impact of online sales on the malls has been limited so far but itis significant Overall Creating a seamless retail customer experience online retail sales excluding travel and financ
12. n co Di a M n n ot EI 3 a Et D EI ke h Bi 3 cs 3 S s a ke E Ki e Q EI 3 n DI o EI Lo a E Lo PE S 3 bi ki oOo x Ss oO oO a D ov uv bd Di bi oO wn bd VH bd a E OH E CO m m m Lo gt Du Du E Di D 2 g cH M EI EI oe a o o x o o 2 h Ed E h h 5 w o o Bi 3 S Wi 8 E S g a gei a D s a E Ei Ei Q ES E Er Es 2 ai SG bd a 3 3 oO 5 D D D o o a a T S 5 a a a 2 EN S 3 S Q 2 Q w Ei 2 w bi E E a 2 3 a lt S a bi 3 a S o Ei D e R Ka DI e Ed o T ch Bs lt E o Fi a 3 D o o D 8s ES B m E EA EA F 4 D E o bai S o St z S h E Ser d a HP A ai H o o bi E EI a Ei z E c w a E Es S 2 E E 3 E le oO Di OO gQ Ei Bad a e ES CO Ey Ki e 2 a d N N A N N N N A H o S a an E 2 lee E o D Ki Ki E OO Si Es m pn In your opinion which of the following industries has achieved the greatest success in providing an excellent customer experience retail respondents Retail Banking Telecommunications Consumer goods manufacturing Airlines Other please specify 0 Don t know 34 The Economist Intelligence Unit Limited 2015 While every effort has been taken to verify the accuracy of this information The Economist Intelligence Unit cannot accept any responsibility or liability for relian
13. on an old platform ill suited to modern retailing Mr Bolland has spent heavily on sorting out the problems refreshing the product range and the stores to reinvent M amp S as a mid priced competitor to John Lewis accepting that the average age of M amp S customers is around 50 As part of this the company has spent some 150m launching its own website and moving towards omnichannel On the company s own figures only 6 7m of its 34m annual customers shop with M amp S both in store and online Some 8 3m shop only in store And rather remarkably some 19m 56 of the total only shop in store with M amp S but shop with competitors online If M amp S can make its huge customer base shop online as well Intelligence Unit as in store and join things up to make it easier to buy items spotted in a shop over the website then sales could surge To gear up for the launch of its own website M amp S recruited technical and online experts This gave us internal development capacity says Amanda Glover senior corporate PR manager at M amp S adding that it is now easier to update extend and upgrade the new platform M amp S also appointed a single person to take charge of omnichannel retailing The website went live at the start of 2014 after having learnt some lessons from online specialists such as eBay including the use of newsletters and collections to grab customers attention and loyalty Initially the results
14. to avoid upsetting customers but also to exploit the new opportunities from new technology According to our survey online retailers are regarded as being the best for customer service led by Amazon and eBay This is not What obstacles stand in the way of improving your organisation s customer experience Please select up to two of retail respondents executive survey organisation 27 information systems 27 Lack of senior management e vision and leadership Inflexible technology and application infrastructure 24 Lack of consolidated 360 degree view of the customer across touchpoints 2 Lack of employee incentives for collaboration 16 Source The Economist Intelligence Unit survey September 2014 12 The Economist Intelligence Unit Limited 2015 surprising since these companies were set up as web companies and have the systems and understanding to integrate other platforms from telephone to smartphone apps However as an omnichannel approach starts to blur the boundaries between online and physical retailer so can traditional retailers be seen as taking the same steps as online specialists and online companies as trying to replicate a physical store presence M amp S is spending heavily on publishing for example after relaunching its website at the start of 2014 It collates collections and has launched e magazines to foster brand loyalty among its online customers the same approach t
15. to 100 owing to rounding or the ability of respondents to choose multiple responses Consumer survey Which of the following devices do you own or have access to Please select all that apply respondents Laptop Smartphone voice and internet KI Landline phone 74 Desktop computer Si Mobile phone voice and text A Koj None of the above o The Economist Intelligence Unit Limited 2015 19 Eco Fe SC ep Gea Creating a seamless retail customer experience Which of the following channels do you use to learn about and compare products Please select all that apply respondents gt Search engine tools Company websites Ask family friends Independent websites A a Television radio w Bricks and mortar premises N Newspapers magazines bai E mail w co Printed catalogues w A Mobile applications Company social media pages Phone N A Live chat m Hi Kiosk a one of the above g Approximately how much time in a typical week do you spend online for personal purposes respondents gt More than 50 hours 21 to 50 hours 16 to 20 hours Di A 11 to 15 hours Di A 6 to 10 hours 2 to 5 hours One hour None Ki 20 The Economist Intelligence Unit Limited 2015 The Intelligence Creating a seamless retail customer experience Ecanaimiet Unit Approximately how many purchas
16. to experiment with using their physical stores purely as a place for people to browse rather than buy The UK The Intelligence Economist Unit retailer House of Fraser for example is trialling showroom stores that do not stock any products Instead people must order online Some branches will become simply display points for certain items and a place to order and collect items bought online Other retailers are using in store technology both to join up their multi platform activities and to gather information about their customers allowing them to tailor their offerings more effectively The DIY chain B amp Q for example is experimenting with fixed kiosks where people can access its website over a tablet in store and with equipping its sales people with tablets so that they can offer wider advice on the spot 17 Bar codes onits in store products allow customers to scan them for more information B amp Q is also using technology to garner information on customers offering free in store Wi Fi so that it can see where and when they go toa store through their logins as well as loyalty cards that allow it to track online and mobile purchases Work remains to be done for B amp Q before it can extend this to a detailed picture of in store purchases but itis laying the foundations to be able to give customers personalised offers based on their shopping habits Physical and online retailing starts to converge with click an
17. 1 IR T 8 Creating a seamless retail customer experience Thinking of the ideal customer experience which of the following elements are most important to you Please select up to three respondents consumer survey or complaints 47 Ability to track orders in real time Clarity and simplicity of product information across channels Ability to interact with the company over multiple channels e g in person e mail online mobile phone Access to more in depth product information in stores through technology o Ability to interact with the company via multiple channels 24 7 Consistency of product information across channels A more personalised experience with relevant offers and recommendations based on my interests Ongoing engagement with the company after the purchase has concluded Customised offers based on my preferences revealed on different channels Company representatives recognise me as a regular customer across all channels Consistency of creative imaging across channels Source The Economist Intelligence Unit survey September 2014 The Internet has not increased the absolute level of retail sales according to Ben Silcox head of data and digital at Havas EHS a UK based marketing consultancy Mr Silcox points out that in the UK and the US retail sales have continued to fluctuate broadly in line with consumer demand and spending power Therefore in terms of the overall market the Internet
18. The Intelligence Economist Unit A report from The Economist Intelligence Unit Creating a seamless retail customer experience SPONSORED BY Panasonic The Intelligence Economist Unit Contents About this report 2 Executive summary 3 Introduction 5 1 The new reality 7 2 The journey to omnichannel 12 Conclusion 17 Appendix Survey results 19 The Economist Intelligence Unit Limited 2015 d The Intelligence Economist Unit Creating a seamless retail customer experience About this report Creating a seamless retail customer experience is an Economist Intelligence Unit EIU report sponsored by Panasonic It uncovers what the future of the customer experience could look like in retail and how retailers can create a seamless friction free experience for consumers The report draws ona global survey of 491 senior executives and 2 403 consumers as well as desk research and in depth interviews with ten senior executives consultants and experts In August September 2014 the EIU surveyed 491 senior executives 62 of whom 13 are in retail Of the retailers surveyed around one third 35 are C level executives or board members and the vast majority 89 work in IT The retail respondents come from across the world with 55 based in North America 35 in Europe and the remaining 10 in the rest of the world Around two thirds 68 of the retailers surveyed record annual sales of over US 500m The EI
19. U also surveyed 2 403 consumers aged between 18 and 65 from across the world with 8 each from the following countries Australia Brazil Canada China France Germany India Japan Mexico Russia the UK and the US Our thanks are due to the following experts for their time and insight during the in depth interviews listed alphabetically Julie Carlyle head of retail EY Richard Cope senior trends consultant Mintel Amanda Glover senior manager PR Marks amp Spencer Miya Knights senior research analyst IDC Peter Massey managing director Budd e David McCorquodale head of retail KPMG UK Valerie Nygaard senior director of buyer experience eBay e David Oliver head of retail consulting PwC Bill Price president of Driva Solutions and formerly Amazon s first vice president of global customer service e Ben Silcox head of data and digital Havas EHS The report was written by Michael Kapoor and edited by Martin Koehring 2 The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience The Intelligence Economist Unit Executive summary People have changed the way they shop Rather than going to the nearest store to research and make a purchase many will now research online and buy in store or vice versa Moreover especially with mobile technology becoming more popular people expect to be able to shop whenever they want and wherever they are Retai
20. ail respondents E commerce platforms HI A A A Ki LW Di Lo T Ed E P P P Be RS S B Z E a oi a D EN EN gt Vi ot 5 a a o be o D ei E E 3 E g el o o 3 a a S E E g o br oO Si 2 E 3 Sh Ei 3 a ei 2 a 3 g D E 3 EA E Ed D 3 D E bd o 3 3 Ei gt a a R S D Ed S p 3 E g t D a a a E 2 ad ES i i w v a a 8 z P 3 EI E KA D o oO Ri 3 d p Q 3 oO 8 E Ka oO Di Q E D 3 Lo a a Di 2 a w A A E In store analytics N x Use of offline messages to drive digital activity N A Use of in store technology such as digital signage to reinforce offers promoted through other channels Si bi bi GC Di a bd T a m Ki QR codes to provide product information in store via smartphone Geo aware applications oo F w a oO Di Kai D D H ke o gt an S s a bi S Di o ES S Di z oO 32 The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience Which of the following methods does your organisation use to respond to customer complaints or negative comments Please select all that apply retail respondents We have an integrated customer response unit that handles all complaints and negative comments A Ki We provide feedback forms on our websites 44 We monitor social media posts and respond to complaints or negative comments in the relevant
21. al signage to reinforce offers promoted through other channels Site retargeting QR codes to provide product information in store via smartphone Geo aware applications Source The Economist Intelligence Unit survey September 2014 The Economist Intelligence Unit Limited 2015 The Intelligence Economist Unit 66 Most retailers still look at simple sales volumes as a way of measuring performance and largely ignore longer term questions such as the length of customer engagement 29 11 The Intelligence Economist Unit 12 Network Rail plans 300 station pick up points for online shoppers The Guardian June 18th 2014 Available at http www theguardian com business 2014 jun 18 network rail doddle online shoppers pick up points Creating a seamless retail customer experience The journey to omnichannel Like executives in other industries retail executives blame silos within their organisation for the failure to join up their various sales channels see chart below Many are still focused on big store networks built up over decades and have treated new sales channels such as online as a separate business Sorting that out can mean a deep restructuring of the entire organisation and perhaps a painful one if rising online sales mean that fewer physical stores are necessary But retailers which are moving towards omnichannel highlight that fundamental change is necessary not only
22. any bricks and mortar retailers will lose market share if they do not have a good presence in e commerce But an equally important shift is that people now use a variety of means to make a purchase researching online before buying in store or vice versa They expect to be able to shop how and when they like and willspurn retailers that do not offer them a choice of shopping platform The implications of this for retailers are significant Not only must they be up to speed on the basic technologies they must also join up their presence on the various individual platforms so that customers can switch between them or use them simultaneously such as buying something on their smartphone that they previously spotted in store By itself this can be a huge challenge web and telephone sales for example were often developed as separate business units therefore joining them together can mean a major change in organisational structures and IT systems This is an important The Economist Intelligence Unit Limited 2015 1 US Department of Commerce Quarterly Retail E Commerce Sales 3rd Quarter 2014 US Census Bureau News Available at http www census gov retail mrts www data pdf ec_current pdf Retail Sales Office for National Statistics Available at http www ons gov uk ons rel rsi retail sales index html The Intelligence Economist Unit shift that can require major investment and take a significant amount
23. ation about the status of my order shipment x m x ei E p 5 gt Ss Q a 3 D RE E o 3 3 EI 2 3 a E S D Sg 3 Be Q o E Ki E bei oO Lo d E D a ch lt o D N h Personalised offers reflecting my preferences Post transaction follow ups to ensure my satisfaction Di N Other please specify Not sure The Economist Intelligence Unit Limited 2015 The Economist Intelligence Unit 23 The Intelligence Economist Unit Creating a seamless retail customer experience When you have an outstanding experience with a company what is your typical response Please select all that apply respondents gt H Kal lt a P E a BH E D 2 Ey 3 2 G o S D dE E 2 r E E E EI EN E D z a e Ei E ES 3 Ki lt bt e E E w o o a ae E ia Q Ige H DN 3 lt D vi A EI Ki Ei Lo Ki D O o 3 3 2 3 o EI D v e 9 pul 3 2 2 D n T gt D 5 Se gt D Q Ei 3 5 D 3 lt EI Ki D K a Ei EI o lt Ki gt E D o o lt o 3 H N Ei Di oO gt z oO o K Ei Lo DI Q o 3 3 3 Ei E Se gt bi o o 3 5 D E lt x n Ei Ei a is w oO c a d E a o o 3 3 ka DI Di 3 2 W 5 o a 3 ES Di oO Lo s t a g ba D 2 El m Ko ei E bi Di E D ot D Do nothing Not sure When you have a bad e
24. business outcomes Customer experience council Gap analysis comparing marketing promises with services delivered Other please specify None of the above Don t know not applicable Which of the following technologies does your organisation currently use to deliver a seamless customer journey Please select all that apply retail respondents gt Integrated databases of customer information visible to all customer facing functions 3 Web based interfaces to provide customers with a single window into the business relationship 3 Employees equipped with mobile or fixed devices such as tablets or displays w Kal Big Data tools to monitor customer interactions in real time 35 Predictive analytics to identify pain points and anticipate consumer needs 35 Websites and online content customised for different devices desktop tablet mobile etc Other please specify E Don t know not applicable The Economist Intelligence Unit Limited 2015 29 The Intelligence anasi Unit Creating a seamless retail customer experience retail respondents Database technologies to integrate customer information EE Advanced analytics to achieve customer insights Big Data tools to integrate different types of information Database technologies to provide single inventory and offers across channels Mobile or fixed devices such as tablets or displays Other please specify Don t know not applicable Which of the fo
25. ce by any person on this report or any of the information opinions or conclusions set out in this report The Intelligence Economist Unit LONDON 20 Cabot Square London E14 4QW United Kingdom Tel 44 20 7576 8000 Fax 44 20 7576 8500 E mail london eiu com NEW YORK 750 Third Avenue 5th Floor New York NY 10017 United States Tel 1 212 554 0600 Fax 1 212 586 1181 2 E mail newyork eiu com HONG KONG 6001 Central Plaza 18 Harbour Road Wanchai Hong Kong Tel 852 2585 3888 Fax 852 2802 7638 E mail hongkong eiu com GENEVA Rue de l Ath n e 32 1206 Geneva Switzerland Tel 41 22 566 2470 Fax 41 22 346 93 47 E mail geneva eiu com
26. ces new large scale centers dedicated to filling online orders 20 Wal Mart A Pro in Physical Store Retail Logistics The Wall Street Journal June 18th 2013 Available at http online wsj com articles SB100014241278 873235668045785533000755 47368 21 Ts the Internet killing traditional shopping malls WWL August 28th 2014 Available at http www wwl com pages 19787977 php 15 The Intelligence i Economist Unit Creating a seamless retail customer experience 66 Stores are also looking to new technology both to encourage people to buy things in store and to foster the advantages of bricks and mortar for product research 99 16 smartphones and then collect goods without queuing to kiosks allowing people to browse and pay over a large screen and sometimes to experiment with different outfits Then there is the increasing popularity of beacon apps which allow people to scan a product find out about it and its price and be directed to where it is located in store The technology is developing apace but physical stores will remain an important part of the shopping experience whether the product ends up being delivered in store to the customer s home or to the local railway station I The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience A spate of recent technology has changed the way people shop As they grow used to buying things o
27. d in even the biggest store Their old one stop shopping argument looks tired But for all these problems some of the best performing retailers are department stores such as Macy s and John Lewis both of which have outperformed the general retail let alone department store market in their home markets of the US and the UK respectively In both cases they were early adopters of online sales channels and then an omnichannel approach rejigging their operations to abolish distinctions between channels and using in store technology heavily so that customers can use their smartphones to access information while visiting a store for example The success of these initiatives can be seen in their financial results and also in the results of other retailers that have fallen behind here Marks amp Spencer M amp S launched a big drive into omnichannelat the start of 2014 after struggling with its fashion sales in particular and falling behind with its online service see case study below Meanwhile the big UK supermarket chain Morrisons belatedly launched home delivery after it saw like for like sales falling over the crucial Christmas period The results of our surveys of consumers and business executives suggest that more retailers are playing Morrisons style catch up than Macy s style innovation Consumers make little distinction between the various platforms on offer today and theyjudge companies squarely on the
28. d collect Equally striking perhaps are the similarities in approach between physicaland online retailers to making the delivery and collection of items easier our survey found that prompt and reliable delivery is one of the top three aspects cited by respondents when asked to choose the industries that provide the best customer experience A big advantage of Amazon for example is that is has an efficient centralised warehouse distribution network aimed at fulfilling online orders quickly and cheaply This is one of the basic areas for physical retailers to tackle when they become omnichannel M amp S has set up a dedicated warehouse for e commerce orders as part of the The Economist Intelligence Unit Limited 2015 66 Many retailers are still focused on big store networks built up over decades and have treated new sales channels such as online as a separate business 29 Mixing bricks with clicks The Economist May 23rd 2013 Available at http www economist com news business 21574018 some online retailers are venturing high street mixing bricks clicks 1 B amp Q upgrades to become a leader InternetRetailing October 7th 2014 Available at http internetretailing net issue internetretailing magazine september 2014 volume 8 issue 6 bq upgrades to become a leader 13 The Intelligence Economist Unit 66 Problems are often at a basic if big level Less than
29. ence across channels and functions Our customer facing functions are each responsible for improving the customer experience within their own domains We do not recognise improving the customer experience as an important goal Other please specify o Don t know not applicable 28 The Economist Intelligence Unit Limited 2015 The Intelligence Creating a seamless retail customer experience Economist Unit How strongly does your organisation engage customers at the following stages of the customer journey Please select one from each row retail respondents Hi Very strong engagement BW Strong engagement Mj Significant engagement Mj Low engagement ll No engagement Don t know not applicable Perceiving need for product service 11 42 27 11 5 Researching product service options 8 34 37 11 6 Selecting the product service 13 E 27 15 E Conducting the purchase transaction 15 40 26 E Delivery of product service 18 40 24 10 5 Use of product service 10 34 34 16 3 Maintenance repairs returns 11 26 35 15 6 Becoming an influencer 11 27 35 10 8 Which of the following methods does your organisation currently use to map key customer journeys and identify pain points Please select all that apply retail respondents Customer and employee surveys Analysis of transactions and complaints data Feedback from social media Consultations with front line employees Advanced analytics to identify the impact of various journeys on
30. es have you completed using online channels in the past year respondents gt More than 20 2 11 to 20 6 to 10 2to5 24 CO Ei bi None Do you agree or disagree with the following statements about your purchasing practices Please select one from each row respondents Cresp Agree Disagree I Don t know not applicable I use online channels to research my selections of some products services even when I plan to purchase in person at a store 89 7 4 Iuse social media blogs and other online channels to learn about experiences of other consumers with products services or companies 64 27 8 I use social media blogs and other online channels to share my experiences with products services or companies 46 43 12 When researching a potential purchase I look for expert reviews on the internet 73 18 9 When researching a potential purchase I look for consumer reviews on the internet 84 10 6 Iuse a mobile device to look for products services or suppliers near my location 56 34 10 I go to a store to see a product I have researched online prior to purchasing 75 18 H While in a store I comparison shop check for the best price on my smartphone ER 37 12 On average how frequently do you use the following channels to interact with a business concerning an actual or potential purchase Please select one from each row respondents Cate Hi very frequently Frequently M Occasionally Rarely I Never Don t know not applicable Di
31. face Ki a bd oO gt gt Di Di lt lt o o D D O O o o a a Es a a bd bd EI a 3 3 ac KZ lt lt G G lt lt oO oO a a Q ie o 3 a a gt gt E E s S DI DI E gd E E E ca E Ki a e SG El iv 9 d E bd bd E un Lo a Di Bs lt Ka kel Di Di E Di Se o EI w lt S o E 3 ko Q E a lt b E a 3 2 a J Lo E E 3 ZS Pe E a SS Q E Q E a Ki S ZS 3 at 2 5 2 g 8 x 3 oO D N a O mD VI A ma rey A E Hu 68 19 13 We have not yet implemented major initiatives to improve the customer experience but we plan to do so within two years 44 47 10 Creating a more holistic customer experience is not a priority for our organisation 42 48 10 The Economist Intelligence Unit Limited 2015 27 The Intelligence Economist Unit Creating a seamless retail customer experience Which position within your organisation other than the CEO has primary accountability for executing strategies to improve the quality of the customer experience retail respondents H ES bi Ka o lt d Va O 3 bi EI CH a p D o 5 fon ER E m x bi a bi Ss D oO So a en D o o bd 2 ES lt ry Chief Marketing Officer Chief Information Officer Chief Operations Officer Chief Technology Officer Chief Sales Officer Chief Procurement Officer Our CEO retains this responsibility personally
32. forum A o We monitor social media posts and respond directly to consumers A kl Each channel management team handles its own complaints and negative comments 34 We do not respond to customer complaints or negative comments 3 Don t know not applicable 3 How does your organisation measure the outcomes of its consumer experience strategy Please select all that apply retail respondents Sales volume The Economist Repeat purchases Customer lifetime sales value Length of customer engagement N N Customer influence on others Contribution of each channel against cost of sale Other please specify 0 We do not systematically measure customer engagement outcomes Don t know not applicable The Economist Intelligence Unit Limited 2015 Intelligence Unit 33 Les ee deng Creating a seamless retail customer experience Economist What are your customers most frequent complaints Please select up to two retail respondents Dissatisfaction with the product Order fulfilment problems 27 Dissatisfaction with customer service Service scheduling m w Failure to integrate customer information across touchpoints 11 Failure to integrate information across multiple contacts Salesperson lack of knowledge about products services brand my history with the company Dissatisfaction with warranty returns processes Don t know not applicable H Es Di L E
33. half of retailers have set up an integrated customer response unit for example 29 John Lewis retail warehouse is not sexy but it delivers The Telegraph December 13th 2010 Available at http www telegraph co uk finance newsbysector retailandconsumer 8197646 John Lewis retail warehouse is not sexy but it delivers html 16 Argos extends eBay tie up to bring click and collect service to 650 stores The Guardian July 3rd 2014 Available at http www theguardian com business 2014 jul 03 argos ebay click and collect service 650 stores 7 Convenience is king as click amp collect expenditure is set to hit 6 5bn by 2019 Verdict September 17th 2014 Available at http www verdictretail com convenience is king as click collect expenditure is set to hit 6 5bn by 2019 18 Carrefour reveals omnichannel challenges Kantar Retail June 28th 2014 Available at http www kantarretailiq eu ContentIndex PublicNewsDisplay aspx id 6300 25 amp key WDXcfcl 2BkY72WDd8h 08510 3D 3D 14 relaunch ofits online services see case study in previous chapter and John Lewis set up a giant distribution centre when it launched its omnichannel offensive back in 2009 As well as allowing the timely cost effective fulfilment of online orders it allowed John Lewis to pioneer click and collect services back in 2009 10 with guaranteed delivery of an online order to a store of the customer
34. hat eBay is using to create a shop window for its online only customers We re plugging the gaps left by being an online retailer without a store presence says Valerie Nygaard senior director of buyer experience at eBay Equally both Amazon and eBay are teaming up with retailers to offer click and collect services in an attempt to compete with the convenience of traditional retailers store networks Online retailers are also starting to pilot their own physical stores and both online and physical retailers are launching out of hours collection points for example at railway stations Retailers both web and traditional are working hard to make online shopping easier for people away from home Online retailers can be strong on many aspects of omnichannel with a well integrated presence online both over the phone and in mobile apps and reliable systems for payment and delivery But they also have some major flaws compared Creating a seamless retail customer experience with traditional retailers people cannot see and try out goods before buying they need to be at home to take delivery and can facea bewilderingly large choice of products without the filtering done by physical displays in bricks and mortar stores Therefore online retailers are trying to fillthese service gaps while traditional retailers are trying to catch up with the online specialists for joined up remote services Both eBay and Amazon
35. have launched homepage collections on related item ideas and use data analysis to suggest goods to buy based on a consumer s shopping history These are attempts to filter the huge selection of goods on offer on the one hand and to offer a more personalised service on the other Retailers are sitting on a huge amount of information about their customers says Julie Carlyle head of retail at professional services firm EY This is especially true of online retailers which can trace every purchase back to an individual whose address and buying patterns they know The challenge remains to sift through such a vast amount of information effectively Technology is starting to become available to help here and both online and traditional retailers are increasingly exploiting it to make online shopping easier Mobile apps such as Virtusize a virtual fitting solution developed in Sweden enable people to see how well clothes will fit and try on a selection of clothes remotely as online retailers attempt to tackle people s reluctance to buy fashion online without first trying things on Traditional stores such as Macy s and M amp S are following a similar approach with both collating collections on their homepages to prompt online buyers and using editorial content to foster their loyalty Both have introduced in store kiosks allowing customers to use the new technology to broaden their in store options Some retailers are starting
36. ial services accounted for less than 7 of total US retail sales in the third quarter of 2014 8 However online does dominate some sectors such as music and book sales and is increasingly important for items such as sports shoes This shift is fuelling a move away from shopping as a social activity with teenagers less likely to spend their weekends browsing in the local mall According to Shoppertrak a research firm shop visits have fallen at an annual rate of more than 5 in every month for the past two years fuelling the demise of the shopping mall This is a major shift in the retail landscape that will undermine companies which do not respond convincingly by being able to sell online and over mobile devices as well as in store Perhaps the most graphic example of this is the US bookseller Borders which filed for Chapter 11 bankruptcy in 2011 It had failed to react to a changing market continuing to expand its physical store network launching an e reader too late and outsourcing its web operation to Amazon an arch rival for online sales By contrast the bookseller Barnes amp Noble survived by developing its online and e reader operations in tandem with its physical store presence in an early example of a joined up approach to today s retail market The overall size of the retail market might not be impacted by the growing popularity of Internet shopping says David Oliver head of retail consulting at PwC
37. ing a product 57 13 6 19 Za Purchasing a product 52 114 28 202 Tracking delivery order fulfilment 54 18 9 8 5 6 Obtaining information about product use oo 58 15 6 10 4 5 Returns or warranty issues 41 10 4 21 14 9 Conveying compliments or complaints In your opinion what obstacles prevent companies from providing the ideal customer experience Please select up to three respondents A lack of interest in customer satisfaction A uo Lack of rigorous training in customer service A m N o Di o e ZS S o 5 v KE oO E a Di Ee a o D 7 Ei EN E E E a 5 D E H E E EI ON o E Er a a o ES SG S S EN EN E ES E e gt Bec H D CO a D Q bei v bo Ss D D GC a 5 E Ed lt a o Es E 1 c a 1 E a oO SW Mec Me a We a a ka 2 g o EI a bi S bi D bi bo Lo E 3 lt 3 A g 3 z 5 E E bi EI Ki Qa Ka a 3 D a a a E bi bg bi Di 3 3 D ka 3 D oO a bi g a S 3 E vi E gt E wa 3 a Di D 5 z 4 a Lo ES o lt bi 3 Ki E K ch lt bi D T S g 3 N ES w Not sure Be more consistent in the way they deal with me as a customer eg remembering my past purchases and service problems 3 Be more consistent in the products and promotions they offer in store online and on different internet sites Other please specify I None of the above l Not sure 26 The Economist Intelligence Unit Limited 2015 Creating a seamless retail cus
38. ir overall performance They value speed simplicity quick responses to questions and reliable delivery rather than worrying about whether they shop online or in store see chart below And they will walk away from companies that fail to satisfy these demands Omnichannel blurs distinctions between physical and online retail For retailers this is particularly important The Internet has removed old barriers faced by customers such as geography says Peter Massey managing director of Budd a customer experience consultancy Our survey results suggest that traditional retailers have some work to do to convince people that they are as good as the likes of Amazon for customer service Consumers do recognise that retailers are at the forefront here narrowly voting them best sector for customer experience ahead of consumer goods and banking But they single out online rather than traditional retailers for praise only Wal Mart makes it into the top five for customer experience ina list headed by Amazon and eBay Itis a gap that traditional retailers need to close as omnichannelstarts to blur the distinctions between physical and online retail and as changing shopping habits promise severe disruption to traditional shops Some sub sectors such as books and electronics have already been taken over by online sellers leading to the collapse of big chains such as Borders and Comet But the impact will be broader than that
39. lers have little choice but to react to behaviour that has already changed and to consumers who are increasingly intolerant of being told that they must fit in with a seller s choice of time and location In practice this can mean some major changes for retailers whose operations are often organised around a physical store network with separate businesses covering areas such as online and telephone sales Companies need to reorganise to abolish the distinction between individual business units Staff incentives and targets need rethinking so that they take account of wider sales including online rather than simply measuring the performance of an individual store or sales channel And there needs to be investment in information technology IT so that all the various platforms are unified from a user s point of view In this report The Economist Intelligence Unit EIU asked retailers and analysts what has been done already and what needs to be done to become omnichannel meaning notjust whether retailers are using a variety of sales platforms from physical stores to online and smartphone apps but also whether they have joined up the various technologies being used so that customers enjoy a seamless shopping experience wherever and however they buy We also separated out the retailers who responded to the global survey to get a snapshot of industry opinion The main findings include the following Many big retailer
40. llowing channels does your organisation currently use to convey messages to customers Please select all that apply retail respondents gt Company websites Ki i E mail Bricks and mortar premises Phone wu Newspapers magazines N Printed catalogues E o Branded social media pages A Television radio Social media broadcasting w N Mobile applications Lo earch engine tools Independent websites Live chat Kiosk Don t know not applicable 30 The Economist Intelligence Unit Limited 2015 The Intelligence Creating a seamless retail customer experience Meore Unit Which of the following channels does your organisation currently use to interact with customers Please select all that apply retail respondents Desktop laptop oriented websites 73 Bricks and mortar premises Tablet and mobile oriented websites 47 Mobile applications w KI Kiosks Other please specify B Don t know not applicable Ki Which of the following features does your organisation currently provide Please select all that apply of retailers that use desktop laptop oriented websites or tablet and mobile oriented websites as channels to interact with customers Web pages customised for desktop tablet and mobile use EI o Consistent product information available across all channels Customers can purchase and return via any channel 7 All products services available
41. nline or over their smartphones as well as in store retailers must respond by becoming omnichannel In reality few if any are genuinely omnichannel at the moment although many are working hard to become so Online specialists lack a store presence while traditional retailers are starting to integrate their physical and online presence but they often have much more work to do The first step is to make sure that the various platforms in wide use today are up to speed individually For a surprising number of retailers basic work remains to be done Take a look at two of the bigger UK retailers for example M amp S only launched its own website in 2014 while the supermarket chain Morrisons had to turn to an outside company to belatedly launch home delivery also at the start of 2014 Such tardiness is not as surprising as it seems given that online retail still accounts for a relatively small albeit rising share of the overall market in many countries Hence many companies were not wrong in assuming that the bulk of shopping would continue to be done in store and that money spent on launching expensive new systems might yield little immediate return Indeed for some companies such as the discount supermarket chains the argument that they should concentrate on The Intelligence Economist Unit realising economies of scale through big shops anda limited number of products remains strong That said most retailers a
42. o evolve rapidly there is already far too much physical retail space for example and the problem will increase as online sales go up And partly it is because new technology continues to be developed apace increasing the possibilities for retailers both online and in store While online specialists trial launching their own stores and develop apps that allow people to try on outfits remotely a handful of big shops are starting to trial such technology in store so that people can enjoy the advantages of online and physical retail simultaneously That makes shopping more convenient but so far talk of The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience a truly personalised retail experience remains optimistic Online offerings are often crudely tailored based on recent purchase history rather than a detailed analysis of the wealth of personal information now available to shops The days when stores will recognise their customers as they come through the door and truly tailor their offering individually are becoming less fanciful technologically but they are still many years away in reality As retailers have already discovered to their cost online and mobile sales are not trends they can ignore if they want to remain competitive in the longer term A a 5 The Intelligence Creating a seamless retail customer experience Eege vr Appendix Survey results Percentages may not add
43. of time On this level many big retailers believe they are catching up sometimes after a thoroughgoing review of their online presence and systems lasting several years However progress on the wider questions remains uneven If more people shop online do they need fewer physical shops Ifthe shift is towards a hybrid approach to shopping using several different platforms does this change the role of the physical stores away from purchasing and towards browsing and The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience testing Can newtechnologies help with this and should physical stores now assume the need for apps to help people choose matching outfits for example The answers to these questions remain up for debate but the growing consensus among big retailers is that they must now be present across the various platforms available today and join them together seamlessly from the customer s point of view In this report we ask what they need to do and whether they are actually doing it Creating a seamless retail customer experience The Intelligence Economist Unit The new reality Across the world department stores are struggling from the failed UK retailer Woolworths to the loss making JCPenney in the US they are finding that the Internet has challenged their raison d tre a wider variety of goods is available online and at better prices than can be house
44. r figure was in stock rather than the one he asked for or that was illustrated on the site Like physical stores refusing to accept returns from online orders customers simply do not understand or accept behaviour like this and they will stop doing business with Tesco s Star Wars online lottery Retailinsider com Available at http www retailinsider com 2014 01 tescos star wars online lottery html 10 through loyalty cards and the like Moreover well under one in five 16 use barcode scanning in store to provide product information Meanwhile in terms of technologies used to deliver a The Economist Intelligence Unit Limited 2015 the offending companies Changing things is possible but it will not happen without a strong commitment from senior management and some heavy outlays of cash and time S Creating a seamless retail customer experience Which of the following methods does your organisation use to support a consistent omnichannel experience for customers Please select all that apply of retail respondents executive survey E commerce platforms Loyalty programmes Search engine optimisation Training for staff to offer consistent messaging Tracking customer behaviour and preferences across channels Mobile payment platforms Integration of creative elements across channels In store analytics Use of offline messages to drive digital activity Use of in store technology such as digit
45. re now at least working on forging a convincing online presence and are recognising the growing importance of other platforms such as mobile and social media Partly this is because online channels will become increasingly important sales channels in their own right But even for sectors such as groceries where online might remain small the adoption of hybrid shopping habits means that companies must answer customer demands to be able to switch between channels as and when they like In practicalterms this means a major effort and reorganisation for retailers not just spending heavily on IT to unify systems and create single customer databases spanning store web and mobile It also means rejigging team structures and even financial reporting in order to move away from the old single channel approach for example stores sales and towards one that accepts that all of parts of the puzzle contribute to overall sales Both John Lewis and more recently M amp S now account for performance ona regional rather than a store basis to factor in the effect of online sales Many big retailers would say that they are working towards such basic integration although it could take years to make this happen The Economist Intelligence Unit Limited 2015 17 The Intelligence Economist Unit 18 Becoming fully omnichannel remains a work in progress Partly this is because retail has yet to catch up with shopping habits that continue t
46. rsonalised experience with relevant offers and recommendations based on my interests Ongoing engagement with the company after the purchase has concluded Customised offers based on my preferences revealed on different channels Company representatives recognise me as a regular customer across all channels Consistency of creative imaging across channels l Other please specify Not sure What proportion of the companies you deal with currently provide you with a great customer experience respondents 51 to 100 31 to 50 21 to 30 11 to 20 11 10 or less 1 Not sure 1 None 22 The Economist Intelligence Unit Limited 2015 Dreating a seamless retail customer experience Which industries do you think provide the best overall customer experience Please select up to two respondents gt Retail DI A Consumer goods Banking z bd D fo E gt bi EI aS KH D o wa oO wv ei bd Q Di a D Q Ei 3 3 E a Si ER Ei k 5 a KA 2 fo un E E oO 5 Thinking of the industries that provide the best customer experience which aspects impress you most Please select up to four respondents gt Easy online ordering process uw A Accurate and relevant product information Fast delivery of ordered products Hassle free returns process Prompt response to complaints Simple in store purchase process N A Regular inform
47. s are working towards omnichannel but progress remains modest Online continues to account for a relatively small share of the total retail market but big retailers increasingly accept that they must offer a good service across different platforms and join them together effectively However our survey found that many retailers have yet to carry out basic steps such as adapting their websites to mobile apps Few have hired a person to take overall charge of the customer journey or have unified their customer service across platforms suggesting very little progress towards omnichannel retailing The Economist Intelligence Unit Limited 2015 The Intelligence Economist Unit Asin other sectors retailers blame internal silos for slow progress Our survey respondents blame internal organisational factors rather than technology for the lack of progress towards omnichannel Reorganising a company and introducing fresh IT systems to unify the various platforms in use can be expensive and take years hence some time lag is inevitable However there is also fierce internal opposition to store closures despite rising online sales and excess store capacity Omnichannel changes the function of retail stores and retailers are starting to respond Consumers increasingly combine different platforms when making a purchase researching online before buying in store or over a smartphone or vice versa This hybrid approach means that s
48. selling An omnichannelapproach can help to join things up If you look away from the more advanced retailers the problems are often ata basic if big level In June 2014 the giant French retailer Carrefour listed its main omnichannel challenges as the creation of a single unified customer relationship management database between all of its divisions linking loyalty card information to its website and smartphone apps usage data and combining internal data such as loyalty and website usage with external factors such as the weather It took M amp S more than two years to develop the systems to back up its omnichannel ambitions and even the biggest global retailers regard it as a work in progress Our survey found that less than half of retailers have set up an integrated customer response unit for example see chart below Which of the following methods does your organisation use to respond to customer complaints or negative comments Please select allthat apply of retail respondents executive survey We have an integrated customer response unit that handles all complaints and negative comments o We provide feedback forms on our websites 40 We monitor social media posts and respond to complaints or negative comments in the relevant forum 2 We monitor social media posts and respond directly to consumers 2 Each channel management team handles its own complaints and negative comments We do not respond to customer complaints
49. stores is changing Traditional retailers face an additional challenge to streamlining their online sales platforms of course They are also sitting on big store networks which will need rethinking as more shopping goes online Green Street Advisors a research firm in the commercial property industry reckons that about 15 of US malls will either close or be converted into non retail space over the next decade for example Fundamentally the switch in consumer habits towards a hybrid shopping approach means that the function of stores will change according to David McCorquodale head of retail at KPMG UK Some of these changes are already becoming evident with click and collect offering an obvious In the US Wal Mart has more than 4 000 stores within five miles of two thirds of the population It plans to turn these in combination with other distribution centres into what it calls its next generation fulfilment centres Itis actually a simple idea Rather than fulfilling web orders from big warehouses sometimes hundreds of miles away they route them from a nearby store whose employees pick out the goods and transport them to houses a few miles away It is quick cheap and has helped the company to launch same day delivery services But it was far from easy or cheap to organise Wal Mart spent some US 430m on order management systems to enable the move and had to retrain staff to manage the stock effectively
50. tomer experience Een The Intelligence Unit Executive survey In your opinion how does your organisation rate on each of the following performance indicators compared with its peers Please select one from each row retail respondents Hl well above average Ml Somewhat above average Ml Average on par with peers I Somewhat below average Well below average Profitability 19 34 35 8 Revenue growth 13 35 EZ 13 Market share 19 27 37 13 Customer satisfaction 27 40 24 5 Customer loyalty 27 40 19 10 Do you agree or disagree with the following statements about your organisation s strategy for improving the customer experience Please select one from each retail respondents p HB Agree Disagree M Don t know not applicable Our senior leaders have designated improvement of the customer experience as a key strategic priority 77 15 8 We have adopted specific strategies designed to improve the customer experience 81 13 a We have created new executive roles and responsibilities designed to make the organisation more customer centric 39 44 18 We have taken action to support customer interactions with cross functional approaches in all of our customer facing activities We believe that it is important that our message to customers remains consistent at every stage of the relationship 84 m ei Ku We believe that new technologies have a vital role to play in improving the customer experience both online and face to
51. tomer reveiw site respondents gt lt es zZ o You mentioned posting negative comments about a company or brand on a social media site or customer review site Which of the folowing statements best describes the response you received respondents gt There was no response to my post 42 A company representative posted a solution that resolved my issue A company representative posted a solution that did not resolve my issue A company representative offered an apology and or a request for broader feedback A company representative contacted me directly to offer a solution and or request that I revise my post Other customers responded to my post with their own complaints about the company or brand Di A Other customers responded to my post with positive comments about the company or brand Other please specify The Economist Intelligence Unit Limited 2015 The Economist Intelligence Unit 25 The Intelligence Economist Unit Creating a seamless retail customer experience Which of the following communication channels do you prefer to use when interacting with companies at each stage of an actual or potential purchase Please select one from each row respondents E Desktop Laptop Internet Tablet mobileInternet Mobile application Face to face M Phone M E mail Social media Identifying a need 57 13 4 13 6 D Understanding product options prices 58 16 5 12 5 4 Select
52. tores will increasingly be used for browsing and research before the customer decides when to buy and over which The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience platform Retailers are starting to use in store technology in response to this allowing people to bypass queues by using payment apps research products through kiosks or beacon technology and using their website to broaden the range of products available in store Online and traditional retail practices are starting to merge Our survey found that online retailers such as Amazon and eBay are rated best for customer experience Now traditional retailers are following their example to join up online and mobile services with their in store offering and are developing their websites to offer eBay style collections and personalised selections Online retailers meanwhile are starting to launch their own stores to plug a big gap in their offering and are teaming up with traditional retailers to launch click and collect services Creating a seamless retail customer experience The Intelligence Economist Unit Introduction From the bare figures retailers could be excused for questioning the importance of the online revolution For all the talk even in the most developed markets online accounts for only a small proportion of sales In the US for example online retail sales excluding travel and financial services
53. were disappointing with online trading falling after a slightly clumsy relaunch The new website was only lightly marketed and existing customers had to re register on the new site causing confusion and a short term fallin usage Nonetheless the new website works well enough it can be easily updated and developed and is centralto M amp S becoming Our survey suggests that many retailers are still at a very early stage where omnichannelis concerned and havea surprising amount of work to do to become in M amp S terms a convincing multichannel retailer Retailers only at early stage of omnichannel Retailers such as M amp S and John Lewis for example which aspire to become omnichannel tend to appoint a single person to be in charge of the customer journey But of the retailers we surveyed less than half 39 had taken this step compared with around half of respondents across allindustries In terms of methods to support a consistent omnichannel customer experience see chart below only one third of the retailers we surveyed track customer behaviour across channels meaning they are simply failing to exploit the wealth of customer information they have worked hard to garner Creating a seamless retail customer experience more convincingly multichannel as it gears up for a genuinely omnichannel future Distribution has been rethought with e commerce orders including click and collect froma single giant warehouse
54. xperience with a company what is your typical response Please select all that apply respondents Stop doing business with the company 71 Tell friends and family in person or by email Complain to the company in person by phone or by email 2 Post a comment on a social media site Post a comment on the company s website Post a review on an independent website In the past year how many companies have you stopped doing business with due to a negative experience respondents gt 10 or more 5 to 10 2to5 2 Oo ne None 37 Not sure 24 The Economist Intelligence Unit Limited 2015 Creating a seamless retail customer experience You mentioned that you stopped doing business with at least one company in the last year due to a negative experience What aspect of that experience annoyed you most Please select up to three respondents gt Slow response to enquiries or complaints 38 Inaccurate or misleading information about the product 35 Delays in delivering the product or providing the service 5 D CO a 2 S D g bk Lo o S a Ei g Si g ES 3 2 5 w E N w Lack of accessibility of company representatives Unsatisfactory returns process Complicated or unreliable ordering process 17 Failure to keep track of my information Other please specify Not sure Have you ever posted negative comments about a company or brand on a social media site or cus
55. year old British retailer was still the biggest clothes seller in the country and its relatively upmarket food sales were healthy But the problems were mounting reflected in a slide in general merchandise including fashion sales and indeed in the company s reputation for value and quality Mr Bolland responded with a three year plan including a major investment into becoming an omnichannel retailer Results still look shaky in the three months to June 2014 clothing sales fell by 0 6 with online sales down by 8 1 following a lightly marketed relaunch of the company s website But the future looks much brighter with a drive into omnichannel promising not just an increase in online sales but also a much broader more modern in store experience In many ways the core problem was one of identity in fashion M amp S was unsure whether it was competing against new arrivals such as Primark appealing to a young price The Economist Intelligence Unit Limited 2015 sensitive audience or against the more upmarket John Lewis department store appealing to richer older folk The search for younger trendier buyers on top of the traditional older clientele fed a plethora of sub brands which simply confused shoppers The quality of both merchandise and stores was mixed with some heavy discounting to appeal to the youngsters The product range and supply chain were both too complex And the website was outsourced to Amazon based

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