Digital transformation at Canada's top retailers
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A brief overview of the growing importance of the mobile channel to drive online and in-store sales. With Canadian examples from Walmart, Canadian Tire, and Loblaw.
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Digital transformation at Canada's top retailers
- 1. Digital Transformation at Canada’s Top Retailers Brian Jackson
- 2. Digital retail trends Blurred lines between digital and in-store Smartphone shopping aids Augmented reality Buy in-app, pick up in-store Tie-ins for data, personalization, and loyalty programs Retail apps with utility Embracing digital as a work culture
- 3. Moving to a mobile-only world Smartphones - 45.1% of sales > Desktop 45% of sales [q1] Demandware projects 60% by end of 2017 Smartphone penetration to reach 75% before 2020
- 4. Walmart’s new Online Shopping app Launched July 20, 2016 July 2016 is the first month of more mobile web traffic than desktop Walmart’s tech team: back-end Razorfish Canada: front-end Already have a responsive website, but this is for more loyal customers Beta-tested with Walmart employees “You can no longer ask the customer to shop in one particular way.” Interview: Rick Neuman, EVP technology & ecommerce, Walmart Canada
- 5. Utility in-store and out of store Features Bar-code scanner [add a product to your cart] Grocery pick-up in Toronto, Ottawa Favourites list Notifications when prices reduced
- 6. Canadian Tire’s ‘phygital’ retail
- 7. Bricks and mortar and digital Physical store offers: brand, community, trust Digital offers: speed, access, search Together: enhanced in-store experience with interactive experience. Eg. Physical Canadian Tire money is still here, but also stored on the app since 2014.
- 8. Not shy to experiment Wow Guide catalogue has AR app Oculus Rift VR headset used in Edmonton store to design your patio set Made its own POS system Fast Find can give realtime view of product inventory
- 9. Gamified mobile apps Gaming lab in Winnipeg For payments with CT MasterCard at Candian Tire locations Badges reward more interactions with CT Hockey sharp shooter game just for fun Potential path to wider digital wallet applications?
- 10. Using Facebook at Work CT is first Facebook at Work user in Canada. Beta stages. “Nothing is as easy to use as Facebook.” Call centre rep posted about why they didn’t have a certain function, VP saw it and added it “The primary way we’ll communicate with our employees.”
- 11. Loblaw Loyalty PC Plus started in 2013 with apps for iOS, Android, Blackberry Amazon style approach to recommending groceries 1-1 marketing based on what you buy “Broaden your basket.”
- 12. Beyond segments Big data can harvest data at the individual level, go beyond targeting segments Loblaw was inspired by Delta, which adjusted seat pricing for best revenue potential Like building 10 million flyers a week Send customers coupons on things they will actually buy
- 13. Gotta Catch ‘em All $10 on in-game items = 75% sales lift in pizza Draw people in to your PokeStop or ‘gym’ Pokemon Go broke the record for app store downloads in one week. Seeing more engagement than Facebook right now. Shows that you don’t need to drive people to your own app to benefit from mobile engagement.
Hinweis der Redaktion
- My dad used to stuff Canadian Tire money into his glove box Canadian Tire has a retail location within 15 minutes of 90% of Canada’s population
- 3 digital innovation centres: Calgary, Winnipeg, Kitchener-Waterloo Spent $400 million over four years on digital effort
- Putting a fun game in an app gives users more reasons to open it. Try to fight against the tendency to install app, forget it exists. Canadian Tire testing waters here to see if its banking division could own some mobile wallet space.
- Facebook at Work uses the same software as normal Facebook, but it’s a totally separate silo. 5,000 users at CT. Expected that it will be a freemium business model. CT group shared photos of pets, person buying pet supplies turned it into a focus group for new products.
- In 2014 Loblaw expected this to add “hundreds of millions of dollars” in revenue, all through increasing its share of wallet. ‘Mobile coupons’ have boosted response rates to all coupons by double. Reached ⅓ of Canadian households after nine months in market. Transaction data is put in anonymous pool, so no one tracks your name associated with purcases. Automated system crunches billions of transactions behind the scenes. Won a FICO award - “There really isn’t any other retailer out there, not only in Canada, but globally, that’s doing this type of personalization on this sort of scale.” FICO best known for providing credit scoring in the U.S.
- “The second you decide what the customer should be seeing instead of relying on the data (about what they really want) is when you’re not doing personalization, you’re imposing your will on them … It’s direct marketing but it’s not personalization.”
- A manager behind the New York City-based pizzeria told the Post that after he spent $10 USD on in-game items designed to spawn Pokémon at the store, the number of trainers – er, players – who came to visit boosted the restaurant’s business by 75 per cent.