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Retail
Acceleration
April 2016
Digital Transformation
The Extremes
For retailer who have bet too much on real state, cost-cutting is
as tempting as it is dangerous. Four quick routes to the bottom
ROADS TO RUIN
Globant - *Source: I F**king love this company, by Bayard Winthrop and Randy Komisar
CHOICE 1
SHUT
DOWN
STORES
CHOICE 2
REDUCE
MARKETING
BUDGET
CHOICE 3
REDUCE
STAFF
CHOICE 3
MAKE
CHEAPER
PRODUCTS
REDUCE
ACCESS
REDUCE
INTEREST
REDUCE
INTER-
ACTION
REDUCE
QUALITY
REDUCE
SALES
DEATH
Reduce cost
by removing
obsolete
expenses
UNSUNK COST
Rent
OLD NEW
Insurance utilities, etc
Hourly staff
Inventory,
Write-off, Markdowns
Marketing costs to drive
People to stores
Product,
Service, Brand Values
Invest in
product,
service and
brand values
RETAIL PRICE
$89 $59 $89
Getting free from Brick and mortar can give retailers substantial
savings to plow into other parts of their business
Digital Jargon
Globant Proprietary
?
then What
Why,
What’s in it for me?
Your
Save money by reducing the opportunity
costs and competitive jeopardy caused by
your current sub-standard customer
journeys
New revenue created by the new business
models made possible by frictionless
journeys
Globant Proprietary
“why” is:
Macy’s steps up
its online
investments
Mobile sales
double for
Macy’s in fiscal
2015
The web is a bright
spot in a tough
quarter for Macy´s
Terry J. Lundgren CEO &
Chairman at Macy's
“Our business is a rapidly evolving in response to changes in the
way customers are shopping across stores, desktops, tablets and
smartphones, we must continue to invest in our business to focus
on where the customers is headed, to prepare for what's next.”
* Source: Macy´s annual report
The world of retail is
changing and even the
once untouchable
stalwarts of the industry
are feeling the heat.
* Source: Macy´s annual report
The retailer has been hit by factors such as the rise of rivals like
T.J Maxx and weak mall traffic
Macy´s comparable sales have been in decline
2012 2013 2014 2015
3,7%
1,90%
6,70%
-3%
Comparable sales include sales at stores open at least a year
and e-comerce
Measurable Change
More importantly Macy’s is placing its bets on omnichannel which is really a focus
on creating cohesive full ecosystem journey’s for customers.
A familiar example:
the tip of the
iceberg
* Source: Public Internet
Specific self-centric UI
Various media
Decentralized decisions
Multiple data sources
The WebStore CRMs Finance ERP
Globant
Reality Check
Globant Proprietary
Smart Digital Journey Engine
Store ERPs CRMs Finance Fulfillment
big data fast data
Maximizing the interaction - the first Journey
SystemsofRecordSystemsofEngagement
Globant Proprietary
The beginning of a journey...
* Source: public internet
When thinking about the experience becomes part of the experience… magic delivered!
* Source: public internet
Customer Delightedness is a Never-Ending Journey that Yields Competitive Differentiation
Digital touchpoint take part in ongoing conversations between the
brand and consumers. Create holistic journeys of direct interaction.
Adding surprise, based on anticipating of the customer’s potential
needs. (Yes, we can do that today!)
In an environment of Play which evolves with observation and
behavioral analysis.
Globant Proprietary
Sell Experiences and Lifestyle over Products
A Digital Journey
Enabling Acceleration…
simultaneously creates value for the customer and the business
A Digital Journey is a discrete path of smart, relevant and context aware
interactions, where content is generated by or delivered to a customer, while she/he
is interacting with a product or service. This content anticipates and satisfies needs
while engaging, surprising and thrilling users.
The anticiation and absence of friction and the introduction of surprise creates an
emotional connection with lasting impact.
Globant Proprietary
But how can we get many
diverse teams working
together effectively?
Making it all work
Architecture
Let’s “Podify”
Engineering
Business
Design
Globant Proprietary
journeys through pods
Some quantitative results enabling
Design Iterations
1/2
Velocity
3X
Conversion
3X 30%
Lower cost per
point
Globant Proprietary
Globant Proprietary
Learn more...
sentinel.globant.com On Amazon.com...
Gracias!
@aangelani

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Presentación Andres Angelani - eCommerce Day Santiago 2016

  • 2. The Extremes For retailer who have bet too much on real state, cost-cutting is as tempting as it is dangerous. Four quick routes to the bottom ROADS TO RUIN Globant - *Source: I F**king love this company, by Bayard Winthrop and Randy Komisar CHOICE 1 SHUT DOWN STORES CHOICE 2 REDUCE MARKETING BUDGET CHOICE 3 REDUCE STAFF CHOICE 3 MAKE CHEAPER PRODUCTS REDUCE ACCESS REDUCE INTEREST REDUCE INTER- ACTION REDUCE QUALITY REDUCE SALES DEATH Reduce cost by removing obsolete expenses UNSUNK COST Rent OLD NEW Insurance utilities, etc Hourly staff Inventory, Write-off, Markdowns Marketing costs to drive People to stores Product, Service, Brand Values Invest in product, service and brand values RETAIL PRICE $89 $59 $89 Getting free from Brick and mortar can give retailers substantial savings to plow into other parts of their business
  • 4. then What Why, What’s in it for me? Your Save money by reducing the opportunity costs and competitive jeopardy caused by your current sub-standard customer journeys New revenue created by the new business models made possible by frictionless journeys Globant Proprietary “why” is:
  • 5. Macy’s steps up its online investments Mobile sales double for Macy’s in fiscal 2015 The web is a bright spot in a tough quarter for Macy´s Terry J. Lundgren CEO & Chairman at Macy's “Our business is a rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones, we must continue to invest in our business to focus on where the customers is headed, to prepare for what's next.” * Source: Macy´s annual report
  • 6. The world of retail is changing and even the once untouchable stalwarts of the industry are feeling the heat. * Source: Macy´s annual report The retailer has been hit by factors such as the rise of rivals like T.J Maxx and weak mall traffic Macy´s comparable sales have been in decline 2012 2013 2014 2015 3,7% 1,90% 6,70% -3% Comparable sales include sales at stores open at least a year and e-comerce Measurable Change
  • 7. More importantly Macy’s is placing its bets on omnichannel which is really a focus on creating cohesive full ecosystem journey’s for customers.
  • 8. A familiar example: the tip of the iceberg * Source: Public Internet
  • 9. Specific self-centric UI Various media Decentralized decisions Multiple data sources The WebStore CRMs Finance ERP Globant Reality Check Globant Proprietary
  • 10. Smart Digital Journey Engine Store ERPs CRMs Finance Fulfillment big data fast data Maximizing the interaction - the first Journey SystemsofRecordSystemsofEngagement Globant Proprietary
  • 11. The beginning of a journey... * Source: public internet
  • 12. When thinking about the experience becomes part of the experience… magic delivered! * Source: public internet
  • 13. Customer Delightedness is a Never-Ending Journey that Yields Competitive Differentiation Digital touchpoint take part in ongoing conversations between the brand and consumers. Create holistic journeys of direct interaction. Adding surprise, based on anticipating of the customer’s potential needs. (Yes, we can do that today!) In an environment of Play which evolves with observation and behavioral analysis. Globant Proprietary Sell Experiences and Lifestyle over Products
  • 14. A Digital Journey Enabling Acceleration… simultaneously creates value for the customer and the business A Digital Journey is a discrete path of smart, relevant and context aware interactions, where content is generated by or delivered to a customer, while she/he is interacting with a product or service. This content anticipates and satisfies needs while engaging, surprising and thrilling users. The anticiation and absence of friction and the introduction of surprise creates an emotional connection with lasting impact. Globant Proprietary
  • 15. But how can we get many diverse teams working together effectively? Making it all work
  • 17. journeys through pods Some quantitative results enabling Design Iterations 1/2 Velocity 3X Conversion 3X 30% Lower cost per point Globant Proprietary