Endless Aisle Virtual Merchandising In An Omnichannel Marketplace

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Endless Aisle:
Virtual Merchandising in an
Omnichannel Marketplace

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#CCS14
Panelists Kim Zimmermann
Managing Editor
Demand Gen
Report
MODERATOR
Alen Puaca
Creative Director
iQmetrix
Perry Kramer
Vice President
Boston Retail Partners

Comprehensive Retail Consulting
6©2014 Boston Retail Partners. All rights reserved
Endless Aisle:
Virtual Merchandising in an
Omnichannel Marketplace
Perry Kramer, Vice President

Agenda
 About Boston Retail Partners
 Unified Commerce
 POS/Customer Engagement Survey
 Customer Engagement
 Mobile
 Digital Catalog
 Considerations and Conclusion

About Boston Retail Partners

Retail experts with retail backgrounds
Built with unique professional profile
 Managed by industry-recognized leaders
 Recruit experienced retail professionals with process, technology and operations skills
 Recognized expertise in all facets of strategy, selection and deployment of Point of Sale,
CRM/Loyalty, Customer Engagement, Order Management, Merchandising and Supply
Chain solutions
Trusted advisors of acknowledged industry leaders
No exclusive partnerships or alliances with software or hardware providers
 Home Depot
 TJ Maxx
 Family Dollar
 Lowe’s
 Sports Authority
 Dick’s Sporting Goods
 Tire and Battery Corp
 Brooks Brothers
 Michaels Stores
About Boston Retail Partners

White Papers
Speaking Engagements
Webinars/Articles
Industry-leading Surveys
Thought Leadership

Retail Experience

Unified Commerce

Unified Commerce puts the Customer at the
Center of the Universe
Social Media
Website
Email
Apps
Mobile
Website
SMS
Direct MailCatalog
Employees
Checkout
Kiosk
Signage
Adver sing
Customers now
have the freedom
to achieve their
goals throughout
the shopping
process…
…using
whichever
channels and touch
points they prefer.

Unified Commerce Platform
Unified Commerce Enterprise
BICRM
FIN
INV
MFG
Customer
Devices
Associate
POS
Web Site
Customer
Communication
Unified
Commerce
Middlewar
e
Customer/
Associate
Stations
Social Media
Integration
Rules Engine

POS/Customer Engagement Survey

Survey Methodology
 15th consecutive year
 Survey more than 500 top North American
retailers
 Broad selection of Tier 1, 2,
and 3 retailers
 60% of respondents fall into
Specialty retailer category
Drug Store
2%
QSR/ Restaurant
2%
Convenience and
Fuel
5%
General
Merchandise
(Mass Merchant/
Department)
12%
Grocery, Food, and
Beverage
11%
Specialty - Hard
Goods (Books,
Electronics,
Furniture, Home and
Garden, Sporting
Goods, etc.)
27%
Specialty - Soft
Goods (Accessories,
Apparel, etc.)
32%
Other
9%
Company Category

The customer experience is the driver
0% 20% 40% 60% 80% 100%
Guided selling/clienteling
Real-time monitoring and execution
Mobile point of sale
Self service options
Personalized selling
Store as a fulfillment center
Unified commerce platform (store, mobile, web)
Real-time retail (promotions, pricing, inventory,
analytics)
Customer-facing technology in the store
Importance to Organization
1=Most Important
1 2 3 4 5 6 7 8 9
70% of retailers
responded that
their #1 priority
related to Endless
Aisle philosophy

Customer Engagement

0% 20% 40% 60% 80% 100%
Social media profile
Information about friends and family
Customer-specific offers and discounts
Customer-specific messaging
Product recommendations
Customer attributes
Shopping history
Purchase summary
Contact information
Transaction lookup
Customer Information Available
Pre-checkout
During checkout
After checkout
Not available
Available customer information
Identifying the customer before they have
made their purchasing decision offers retailers
the ability to influence the decision
51% of the
retailers have the
ability to identify
customers
before checkout

0% 20% 40% 60% 80% 100%
Personalized promotions based on real-time location,
weather, or other analytics
Made-to-measure
Schedule appointment for store visit
Self-service inventory availability check
At-home services
Electronic receipt
Self-service price check
Electronic gift cards
Customer Services
Implemented
Implement in <2 years
Implement in >2 years
No plans to implement
Offering personalized services
Personalized services to help customize the
shopping experience for customers
40% have
implemented or
will implement
ability for self-
service inventory
locating

0% 20% 40% 60% 80% 100%
Virtual closet/room/garage, etc.
Branded persona-based user interface for point of
sale
Scan and deliver - the customer purchases an
item by scanning the barcode with the actual item
delivered to their home (or other desired location)
Virtual inventory - the ability for a store to sell
items without actually carrying the inventory within
the store
Future Customer Services
Implemented
Implement in <2 years
The next-level customer experience
Tech-savvy, always online customers change
the way retailers need to interact

Mobile

0% 20% 40% 60% 80% 100%
Customer-owned mobile devices (Apple
iOS, Android, Windows Mobile)
Customer stations (flat panel display,
AppleTV, touchscreen, etc.)
Kiosks
Mobile devices
Notebook/laptop computers
PCs/desktop computers
Tablets
Traditional registers
POS Hardware Devices in 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Slow death of traditional registers
80% have mobile devices accounting for at
least 20% of their POS/Customer Engagement
tools

Digital Catalog

Customer-facing technology expands
0% 20% 40% 60% 80% 100%
Mobile wallet
Mobile loyalty identification
Geolocating
Personalized recommendations
Prior purchase visibility
Smartphone app
Mobile coupons, specials, promotions
Digital catalog
Product information (price, location, availability, research)
Shopping list/wish list
Customer-facing Mobile Services
Implemented
Implement in < 2 years
40% of retailers have
a digital catalog and
additional 25 % plan to
have one. 40% have
mobile search for
product by location
and availability

Delivery options
0%
5%
10%
15%
20%
25%
30%
No cross-channel
delivery services
Buy online, ship to
store
Buy online, pick up
in store
Buy online, ship
from store
Other
Delivery Possibilities
Delivery option
expansion helps
brick-and-mortar
retailers compete
against online
giants

Considerations and Conclusion

Endless Aisle Considerations
To successfully integrate virtual inventory and Unified
Commerce into your business model, significant process
changes must be mapped out and piloted. Areas impacted will
include:
Social Media
Website
Email
Apps
Mobile
Website
SMS
Direct MailCatalog
Employees
Checkout
Kiosk
Signage
Adver sing
 Store operations
 Commission processing
 Labor management
 Replenishment and fulfillment
 Returns and reverse logistics
 WMS slotting and picking
 Custom product delivery and order

Endless Aisle is the Future
 We are at a strategic inflection point where the
network is taking center stage, this enables an
integrated world where consumers drive self
checkout on their smart phone, interact with
their friends in real-time on purchase
decisions, and receive discounts and
personalized pricing as
they are shopping, creating a
cohesive customer experience.
Social Media
Website
Email
Apps
Mobile
Website
SMS
Direct MailCatalog
Employees
Checkout
Kiosk
Signage
Adver sing

Perry Kramer
Vice President
(617) 899-7543
pkramer@bostonretailpartners.com
www.bostonretailpartners.com

About iQmetrix
Founded in 1999, iQmetrix is a leading
provider of retail management and
customer experience technology.
75% of top independent wireless retailers
in North America use RQ retail
management system (12,000 doors)
$9,404,705,267 in retail sales processed
through RQ in 2013
RQ Retail Management System
XQ Interactive Retail
Business Intelligence
Commerce Platform

① Today’s Consumer
② Omnichannel
③ Endless Aisle / Virtual
Merchandising
iQmetrix agenda

Connected
Empowered
Busy
High Expectations
Entertained
Face of Today’s
Consumer?

How is she shopping?
Sources: IAB: “Showrooming: Empowering Consumer electronics shoppers”, 2013, Forrester Consulting: “Customer desires Vs. Retail capabilities”, 2014, Zogby
analytics survey, 2013, Ominco: technology driven shopping, 2013, IAB: “Showrooming: Empowering Consumer electronics shoppers”, 2013
62%
71%
of multichannel shoppers feel it’s
important to view the in-store inventory of
products
> 60%
tech savvy customers would choose
to shop in-store because of online
services in stores
Comparing prices
Comparing prices
65%
65% of consumers are demanding
“more product variety” out of their
shopping experiences.
The most important reasons for US
consumers to shop online
Price 74%
of shoppers who use their mobile
phones in the store say it makes
them more likely to buy the product
65%

Shopping with smartphone in-store
Sources: Zogby analytics survey, 2013, eMarketer, 2013, Forrester Consulting: “Customer desires Vs. Retail capabilities”, 2014, Zogby analytics survey, 2013, Ominco:
technology driven shopping, 2013, IAB: “Showrooming: Empowering Consumer electronics shoppers”, 2013
92%
of 18 – 24 year olds want
discounts/coupons via text or
smartphone apps
12.3M – 53.2M
2010 - 2014
US mobile coupon users rise
Comparing prices
70%
of smartphone shoppers use a
store locator to plan their
shopping trip
44%
US shoppers access their smartphones
in store for shopping and purchasing
most of or all the time
46%
Compare best prices - the most
important reason for use of mobile
phone in store.

Technology has changed
the way people shop
• Unprecedented and instant
access to product info,
pricing and inventory
• Increased need for
convenience and efficiency
• Higher expectations of in-
store experiences and
brand experience

Omnichannel?
Seamless shopping experience across
channels and touch points
Anytime, any place, anywhere

“The store, in essence,
is becoming a physical web site.”
Doug Stephens, Retail Prophet
Virtual Merchandising

iQmetrix.com/products/XQ/whitepapers
1. Online In-store
2. Checkout Anywhere
3. Relationship
4. In-store Edutainment
5. Social Hub
5 Checkpoints
for Next Gen Retail Stores

5W’s of Virtual Merchandising?
Virtual merchandising is online in-store. It is bringing
the elements of online shopping into physical
environment.
Key benefit
Increase product selection and
availability by displaying unlimited
number of products.
“Endless Aisle”

How to Offer Virtual Merchandise?
Back End
• Unified Product Catalog (online/in-store)
• Unified Inventory (with integrated suppliers)
• Drop-ship in-store

Customer Facing
•In-store interactive
screens in multiple
form factors
•Rich product info,
engaging media
•“Lifestyle features”
•Integration with staff
and/or consumer’s
mobile devices
•Location awareness
How to Offer Virtual Merchandise?

Key Takeaways
① Consumer is shopping anytime and anywhere
② Retailers use technology to deliver unified shopping
experience
③ In-store Virtual Merchandising can significantly
improve both customer experience and the bottom
line
AlenPuaca Creative Director
AlenP@iQmetrix.com
Tara Bartlett Director of Marketing
TaraB@iQmetrix.com
iQmetrix.com | 1.866.iQmetrix

#CCS14
Q & A // Panelists Kim Zimmermann
Managing Editor
Demand Gen
Report
MODERATOR
Alen Puaca
Creative Director
iQmetrix
Perry Kramer
Vice President
Boston Retail Partners

#CCS14
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Endless Aisle Virtual Merchandising In An Omnichannel Marketplace

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