Presentación Ezequiel Singer - eCommerce Day Guayaquil 2014

Transformando Retail en la era DigitalEzequiel SingerGoogle Enterprise Latin America@ezesinger

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PRE-MODERN PERIOD

pre-1945

RETAIL DEVELOPMENT

1945-1965 1965-1990

CONSOLIDATION OF RETAIL

1990-2000

Retail cambia cada 25 añosEl negocio físico siempre fue el centro de la transformación

Google confidential | Do not distribute

BIG BOX AND CATEGORY

KILLERS

In only a few years [Amazon] has become the business that everyone watches with a degree of apprehension, as well as admiration.Retail WeekJune 11, 2012

El cambio actual es claramente digital

Amazon North American Sales

U.S. Ecommerce Sales

U.S. Offline Retail Sales

Data: Census; Amazon

Sales Growth

Menos visitas físicas

2010 2013

38

17(Nov-Dec)

55%billions

Source: ShopperTrak data for Nov/Dec 2013, as cited in WSJ, Jan 2014.

Pero mas efectivas

2010 2013Source: Mastercard, Nov-Dec 2010 & Nov- Dec 2013, $B

$B offline sales (Nov-Dec)

ecomm +75%

offline +9%

$681$783 Note: there is an

animation

To stay competitive, companies must stop experimenting with digital and commit to transforming

themselves into full digital businesses.

“”

McKinsey & Co., 2014

Source: McKinsey & Co., The seven habits of highly effective digital enterprises, May 2014

Nuevas realidades del comercio

SIEMPRE ABIERTO, EN CUALQUIER LUGAR EN TODOS LADOS.

SIN LIMITES DE REAL ESTATE y HORARIOS LOCALGANAR TODO EL TRAFICO

Antiguamente, las estrategias de marketing competían por el “first moment of truth”

The In-store Experience

Web and Mobile Strategy

Bringing Digital to the Enterprise

Build and Host Applications

Customer Experience

eCommerce Revenue

Store Associate Engagement

Store Operations & Management

Customer Experience

Google transformando Retail


Supply Chain Visibility

New Product Introduction

Big Data

41% more customers than a year ago have “showroomed”, browsing at least once in store and then buying online.

The Seamless Consumer Retail Survey, November 2013Accenture


Clientes a un click de comprar en otro lado


Clientes acostumbrados a buscar

Hayneedle on GoogleFind anything with

ecommerce Search

Search contributed to a 45% increase in our conversion rate, and a 116% increase in search-attributed revenue.Chris Chance, Director of ITSpeedway Motors

Growth of more than 20% in revenue per search with a 12% conversion lift.Brian Moen, CMOHayneedle

https://www.youtube.com/watch?v=hXTZow98ZSI

We are now in the New Digital Age


Mass adoption of mobile

Social media and sharing

Frictionless transactions

Easy-to-use expectations

Always connected

Retailers are going Google

Big Box

Branded Goods

Grocery

Apparel

Hospitality

Specialty

All Saints on Going Google


http://www.youtube.com/watch?v=U4-utqNR2W4

Improve the In-store Experience

The in-store experience

Web and mobile strategy

Digital Enterprise

Stores are faced with many challenges

High employee turnover

Balancing administrative

tasks

Constantly changing product

assortment

Maintaining store

profitability

High customer expectations


38% of retail shoppers still cite the seamless customer experience as the main area for retailer improvement

The Seamless Consumer Retail Survey, November 2013Accenture

Improve the in-store experience

Increase Sales Reduce Operations & Labor Costs

Increase loyalty and repeat visits

Store Associate Effectiveness

Store Operationsand Management

Customer Experience


Associates can’t keep up with the number of products, and number of customers

61% of shoppers believe they have access to more information about products than store associates.Motorola Solutions‘Retail Vision Survey’, May 2012

Improve store associate effectiveness


Create sense of community in the store Local store promotions and contestsAlert urgent issues e.g. product recalls

Better train employeesCrowd-source best practicesMerchandising shares guidelines across stores

Simplify corporate information distributionStandard portal for HQ-to-store communicationsMaster store calendar and forms library

41% of shoppers were not satisfied with the ability to receive in-stock status while in-store.Motorola Solutions‘Retail Vision Survey’, May 2012

Cesar Ramanauskas, IT ManagerEAT

Our HR Department uses Sites to create internal websites for employees in stores to find all the information they need. Before there were only documents they couldn’t share.

EAT on GoogleSharing the information in-store employees need

Community sharing of best practices offers associates up-to-date product details and support.

CIO Waitrose

Waitrose on GoogleSharing best practices across stores


Store operations and management is time consuming and labor intensive


Managers spend more time on administration than on interacting with customers, coaching staff, and looking at the condition of their stores—combined.AT KearneyRetail Success Still Depends on Core Principles2013

Optimize store operations

Automate store processesForms and requestsMobile sales director app

Manage store eventsAutomate event logistics e.g. registration and cateringRecord for on-demand replay playback

Simplify task managementCentralize calendar for daily store tasksAssign and track tasks based on skill set and duration

Streamline field service operationsOptimize service routes with Geo Update the customer on field service status



Specsavers on GoogleGoogle makes assigning store tasks easier

"Our employees have been using their own iPads, iPhones and Android devices to access their email and calendars. Google Apps is a positive step forward in terms of enabling their working lives."

Nigel Dufty, IT Service DirectorSpecsavers

“In order to focus on his core job - creating new pastries - Mister Hermé records recipes guidelines on video.

They are then shared with our pastry makers in France, Japan and

Middle-East.”

Sabrina Zouzou, CFOPierre Hermé Paris

“We automatized sales consolidation during rush

hours. Before regional directors would make 4000

calls a day to collect this information. Now they are automatically collected and

shared internationally, thanks to spreadsheets and graphs fed by Google Apps

Script.”

Laurent Rousset, CIOCelio

“We automatized merchandising auditing

activating Google+ communities. Stores post

pictures of their implementation. That way

regional directors can control in real time that the shelving that

was decided in the headquarters is in place in each location. This is also a good way

to archive them. ”

Louis de Haldat, CIOJennyfer


The store faces intense online competition

Comparison shopping on a smartphone while in-store is up 400% over last yearParagoJuly 2013 study

55% of shoppers would purchase if an associate could find another location that had the item.MotorolaWhat’s Driving Tomorrow’s Retail Experience2012

Connect the customer in-store experience

Shopping Center Map Department Store Map

Enable location-based services Monitor customer dwell time in departmentsText message associates when customers need assistanceGoogle Maps indoor mappingSend offers to customers while they are in the store

51% of retailers consider improving customer service as a primary driver for technology investment.Motorola, What’s Driving Tomorrow’s Retail Experience, 2012

Deliver better information with in-store devicesIn-store kiosks reduce wait-timeUse hang-outs to connect with experts at HQ or another storeDigital signage placeholder


Customers like using Chromebox kiosks - they

resume instantly, are lightning-fast at handling web apps and basically crash-free.


Improve in-store customer experiencePersonalize the shopping experience

A large Big Box Retail identified potential

revenue increase per store of $880k

annually

Geo Identity Analytics

Where are customers?Where are my locations?Where are our devices?

Who is in my location?Tell me about them.Where did they go?

How many visitors?Where do people spend time?

What paths did they travel?

Deliver web and mobile strategy



Digital Enterprise

Deliver on web and mobile strategy

Speed time to market and reduce IT costs

Increase traffic, sales and loyalty

Increase sales and Units Per Transaction

Build and host applications

Customer experience

eCommerce Revenue

http://www.google.com/about/datacenters/inside/streetview/


Building with Traditional IT is slow and expensive

Gary Koelling, Director of emerging platformsBest Buy

“Because of theplatform design, an application administrator had to make changes manually, which was time-consuming and prone to errors.”


Build apps quickly and effectively with Google’s Platform

Host existing web apps on Google infrastructure

Gary Koelling, Director of emerging platformsBest Buy

Our experience transferring Giftag onto Google App Engine really changed how we do things. We can use far fewer developers, and we don’t have to spend any time doing system administration or setting up servers, which allows us to focus on the development and testing new ideas.


Customers expect engagement at every point of contact

Your business is now operating in an age where customers rule. They like this new-found empowerment, and increasingly expect sellers to connect with them.Entrepreneur MagazineFebruary, 2014

Connect the entire customer experience


Help customers track deliveries, in real-timeLeverage Geo and Cloud Platform solutions to create custom portal

Drive traffic to your store with a custom mapGeo store locator

Reach out to customers with live video & shopping eventsG+ Hangouts On Air for shopping eventsG+ Helpouts connect customers and experts live, on the web

With eroding store sales, the route for retailers to earn a larger share of wallet is through deeper, omni-channel customer engagement.EKN, The Future of Retail Analytics2013

Celio on GoogleCrowd-sources next year’s product line

Merchandisers gather feedback from store managers and loyalty card holders

Laurent Thoumine, CIOCelio

For the World Cup, our 6,000 employees and our loyal customers have chosen the design for our collections, via the internal network Google+. The fashion department extends to the whole company!


"Google Apps allows us to do things our way, wherever and whenever we want."

1,250 staff members stay on top of day-to-day operations and build ties with the local community

"Where's My Order" mobile app integrates with Google Maps to show our customers the exact location of the delivery truck carrying their order

Google Compute Engine powers the 3D vision technology that guides our robots through order fulfillment

Paul Clarke, Director of Technology of Ocado

Ocado on GoogleEnabling full digital business transformation

http://www.youtube.com/watch?v=zn1RvJ_Hjbg


Ocado on GoogleExceeding customers delivery expectations

Google Confidential and Proprietary Google confidential | Do not distribute

Zales on GoogleBring the expert to you via the web

Bringing digital to the enterprise



Digital Enterprise

When you dig deep into what actually generates profits for today’s most

successful retail companies, it turns out they’re simply good at what great

retailers have always been good at: the nuts and bolts of operations.

AT KearneyRetail Success Still Depends on Core

Principles2013

Today, retail operations means more than just the basics

To stay competitive, companies must stop experimenting with digital and commit to transforming themselves into full digital

businesses.

McKinsey & Co.2014

Bringing digital into the enterprise

Deliver products more efficiently

Increase brand equity and competitiveness

Supply chain visibility

New product introduction

Data-driven decisions

Better insight across marketing and merchandising

Communicating through the supply chain is inefficient

Our communication tools weren’t flexible enough to make decisions on the go and we couldn’t guarantee that we were running the same promotions at the same time.

Jaime Garcia, IT Corporate Director of the All Inclusive Collection, Hard Rock Hotels


Improve supply chain visibility


Collaborate across the supply chainGoogle Sites, Hangouts, Sheets and Docs

Monitor and track delivery routesGeo for logistics, asset and material tracking

Share delivery locations across devices and departmentsGoogle Geo for visibility into supply chain routes

We can update drivers in real time if the recipient wants to change his delivery address along the way.

Bernard Lemaire, CHROChronopost


● Track global orders/shipments● Get alerted about potential shipment

disruptions● Live weather, traffic, and social

media integration● Seamlessly manage and re-route

orders

We selected the iSpatial/Google tool due to low cost and high flexibility. The iSpatial tool allows our relatively small Analysis department to effectively analyze all of these problems.

Large CPG Company in North America

iSpatial on Google Supply chain visualization


Data is a core business asset. It is the difference between having competitive advantage or falling behind.

The future of big data isn’t collecting it.It’s being able to attribute and leverage it to understand and make decisions across your entire business

● Merchandising Effectiveness● eCommerce performance● Marketing ROI● Supply chain ● Store peformance● Customer experience● New Product Analysis

Why care about Data?


Big Data Solutions

Internal Data Social Data Sensor Data Google & Other 3rd Party Data

HOW CAN I COMBINE ALL OF MY TRANSACTIONAL

DATA WITH OTHER DATA?

HOW CAN I CAPTURE MORE CUSTOMER

INTERACTIONS?

WHAT DO CUSTOMERS SAY ABOUT MY BUSINESS?

HOW CAN GOOGLE DATA HELP ME WITH MULTI-CHANNEL

MODELING?


Challenge● No way to explore how sales patterns, shopper behavior, and effect of

weather were having on inventory and supply chain.● The company focused on identifying similar storms, classifying them by

severity, and measuring their effects on sales before, during, and after their peaks.

Results● Performed a study that provided new insights into consumers’ behavior

during snowstorms by combining point-of-sale (POS) and government meteorological data, 1.3 bilion rows of data

● Identified top products that ran out of stock or spoiled during storms● Allowed them to predict future impact, adjust supply chain and staffing

Interactions Marketing on GoogleIncrease sales in stores by localizing merchandising


SOLMO on Google Improving in-store merchandising and sales

A large Big Box Retail identified potential

revenue increase per store of $880k

annually

Combine in-store traffic and Point of Sale data, improve conversion, UPT, and revenue

Geo Identity Analytics

Where are customers?Where are my locations?Where are our devices?

Who is in my location?Tell me about them.Where did they go?

How many visitors?Where do people spend time?

What paths did they travel?


Introducing new products is a strategic priority

Private Label brands' comparable quality at significantly lower cost ... translates into wider choice for customers and higher margins for retailers.

AccentureHarnessing the Power of Private Label in Retail2012


Information Week, 1/15/2014

Streamline New Product Introduction

Develop IdeasGather feedback through forms, communities of interest (G+) and Google Moderator

Share and Track Activities and DesignsManage and collaborate on content, both externally and internallyCommunicate with distribution channels

Distribute Content to ChannelShare a final product informationDevelop & Deploy Training Content

Celio on GoogleReducing the cycle time for bringing products to market


Using Google Drive and Google Sites, we were able to create an extranet that centralizes our manufacturing, textile purchasing and logistics documents. Before, this used to be shared using email, FTP server or external sharing services like Dropbox, creating constant problems with clogged email and version control.

How will you transform retail?


The retail industry is in the throes of implausible and dynamic change, and

most industry watchers expect the velocity of change to only increase over

the next five years.

In The Store | Web & Mobile | Business Productivity

Retail Solutions Quick Reference Cards




Google can help retailers innovate

GSACloud Storage Chrome DevicesGeoApps Big QueryApp Engine


Store Operations & Management

Customer Experience


Build and Host Applications

Digital Customer Experience

eCommerce Revenue


Supply Chain Visibility

New Product Introduction

Big Data

Google can help retailers innovate

Increase Store Sales & Optimize Labor Costs

Lower costs, increase traffic, and Increase online sales

Greater differentiation

Use Cases

Benefits


Better train employees

Crowd-source best practices

Redirect associates to customers in real-time


Automate store processes

Manage store events

Simplify task management

Streamline field service operations

Store Operationsand Management

Transform the store for managers, employees, and customers

Customer Experience

Shorten customer waiting with in-store kiosks

Deliver relevant offers when customer is near

Help customers navigate the store with maps

Connect with an expert from an in-store device

Increase Sales Reduce Operations & Labor Costs

Increase loyalty and repeat visits

Scenarios

Use Cases

Benefits

Build apps quickly and effectively with

Google’s platform

Host existing apps on Google’s

infrastructure


Reach out to customers with live video and shopping events

Drive traffic to your store with a custom map

Help customers track deliveries, in real-time

Customer experience

Deliver on your web and mobile strategy

eCommerce revenue

Include search on your site

Lower technology costs

Increase loyalty and customer

satisfaction

Increase sales and Units per transaction

Scenarios

Use Cases

Benefits

http://www.google.com/about/datacenters/inside/streetview/

Collaborate across the supply chain

Monitor and track delivery routes

Share delivery locations across devices and

departments

Supply chain visibility

Develop ideas

Share and Track Activities and Designs

Distribute Content to Channel

New product introduction

Bringing digital to the enterprise

Data-driven decisions

Include internal, social, sensor, and 3rd party data

in your analysis

Deliver products more efficiently

Increase brand equity and

competitiveness

Better insight across marketing and merchandising

Scenarios

Use Cases

Benefits

Extra Slides


Radical Shifts in Retail

After years of showrooming and online retail commanding more attention, the data-driven shopping experience is set to land inside brick-and-mortar stores.Entrepreneur MagazineJune 2014

Data-driven Business


Digital becomes essential to the store

With eroding store sales, the route for brick-and-mortar retailers to earn a larger share of wallet is through deeper, omni-channel customer engagement.EKNThe Future of Retail Analytics2013

Radical Shifts in Retail


Radical Shifts in RetailFast service is more important than ever

Wait-related issues is the #1 reason retailers lose customers.TimetradeRetail Industry Executive Survey2013

Quote List

"Since we've gone Google, the teams can now focus on their work, like responding quickly to customer requests and around-the-clock product shipping services. This means we now deliver a fun and convenient shopping experience, keeping our customers happy and coming back for more."

Prasad Vootla, Senior Director of Engineering Operations

Snapdeal.com

"Retailers will try to manage the rush of last-minute shoppers with expanded hours, extra employees to stock shelves, and a lot of sales and promotions"

Tracy MullinNRF PresidentCEO Tracy Mullin

Google confidential | Do not distributeGoogle confidential | Do not distribute

Market Insights

Analyze feasibilityAnalyze social media to track trends and opportunities

Visualize target customers and trends with mapsBuild and share business models with sheets

Find ideasUse Analytics on product usage and adoption

Analyze data from social, channel partners, the supply chain and internal systems

Timely and reliable knowledge about customer preferences is most important information necessary for product development.

Harvard Business Review

1. Build a single customer experience

2. Search for a unified transaction platform

3. Have a mobile strategy

4. Understand other CxOs better

5. Big data

6. Need for speed with disruptive technologies

7. Manage security

8. Bring all your data people under one roof

9. Go cloud!

10. Up-skill staff and/or find digitally talented people

Top 10 priorities for Retail CIOs


Information Week, 1/15/2014


Stores rely on word-of-mouth to communicate

In retail, things change all the time and emailing about employee schedules, promotional timelines or new merchandise availability meant that the information was quickly out of date and risked employees having inaccurate information.

John Edelman, CEODesign Within Reach

Presentación Ezequiel Singer - eCommerce Day Guayaquil 2014

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Transcript of Presentación Ezequiel Singer - eCommerce Day Guayaquil 2014