Blog: Keith Kelsen 

Keith Kelsen (bio)
Chairman & CEO
5th Screen Digital

Tuesday, 27 May 2014

Part 3 of 4

Until recently, 90% of all purchase decisions were made at the store shelf. Now, the moment of truth is no longer at the store shelf. It’s about buying anything, anytime, anywhere. According to a recent PriceGrabber Survey, 13% of consumers shop online. And of those who still shop in stores, over half also shop on-line or use their smartphones to shop in-store.

So what has changed? Not too many years ago, the sales process was linear. The shopper would view an ad, probably on TV or in a magazine, go to the store, compare options, choose the best option and buy the item. Now, the sales process is non-linear and cross-channel, creating the phenomena of Web-First for many shoppers. But this has resulted in a chaotic landscape of inter-connected channels. And today’s empowered consumer demands a seamless brand experience across all channels. They will only shop where they find it. This is causing a major business disruption for retailers, brand marketers and agencies alike and the rapid transition to omnichannel retailing.

The challenge now is to create a technologically enabled, compelling shopping moments that culminate in lasting, consumer-brand relationships.

To accomplish this, the brand and the retailer must develop an integrated plan built around ”A deep view of the customer at all stages of interaction.” This is OMNICHANNEL RETAILING and includes:

Mobile POS – A recent RIS survey found that 87% of retailer’s plan to deploy POS on a tablet over the next few years

Save the Sale transactions when products are not in stock or not carried in the store

Clientelling for uninterrupted relationship-building and on-going exchange with the customer

Business Analytics to allow associates to inform the shopper in-store of their purchase history, order status and product specs

Most retailers and brands are still driven by the 4P’s – Product, Price, Promotion and Place. Today, they must shift from the 4 P’s to the 4 C’s in the new omnichannel world:

Connections:  In an omnichannel world, retailers need to connect very early in the consumer journey, when they first start researching online. And the shopper expects to continue that connection in-store.

Choice: Store-based retailers must connect their virtual shelf to the store shelf to enable “seamless” shopping.

Convenience: Today’s time-starved consumers are expecting the convenience of shopping online in-store.  Also, they demand the convenience of ship to home, pickup in store or even pickup at another location.

Conversation: Shoppers are looking for conversation and connection with brands they value. Continuing the conversation AFTER the initial sale is critical for today’s brands and retailers.

Studies show that sales opportunities are lost when the consumer can’t get assistance or find a product. Products out-of-stock, products in-stock but not found, or items not carried in the store can reduce store sales by as much as 20%. Lack of sales associate availability can reduce store sales by up to six percent.

The best way to overcome these issues is through in-store Gaming Digital Destinations. This shifts the store’s focus away from simply making a sale to cultivating an immersive brand experience. It also connects physical space to the digital shoppers and brings a level of discovery, fun and education to the in-store experience.

Next article we will dig into the emotional connection of Gamification.

Posted by: Admin AT 01:46 pm   |  Permalink   |  0 Comments  |  
Tuesday, 20 May 2014

Part 2 of 4
Consumers today are more demanding and frustrated than ever with their in-store shopping experience.  And evoking a positive reaction to motivate a shopper to buy a product in a retail store is extremely difficult.

Independent research firms KRC & Vanson Bourne reported in a recent survey of 5,000 adults between the ages of 18 and 69, that there is an overwhelming agreement amongst shoppers that retail ads and promotions do not resonate. And the channels most likely to be LEAST APPEALING are ads through mobile apps, email, online and in-store. However, over three-quarters agree that they would be more likely to purchase from a retailer again if they provided offers targeted to their interests, wants or needs.

Furthermore, around half of those surveyed are prepared to share online preferences and shopping behavior in exchange for receiving ads or promotions that are more targeted to their personal interests and needs.

Almost all would be willing to share at least one piece of personal information if it means they receive more customized offers. And 78% of shoppers would be willing to share their email address.

To attract and converse with today’s “Digital Everywhere” shopper, the store must meet the consumer on their own turf by providing true ”Digital Destinations.” Digital Destinations are a well calibrated combination of psychological, emotional and social ingredients that engage the shopper’s persona, augment the retail store’s physical environment and enhance the brand’s image.  And at the heart of these digital engagements is “Gamification.” Gamification is the study of how games can be designed and used to engage shoppers and create a more stimulating, fun and persistent shopping experience.  For more than a century consumers have been exposed to games when they shopped.  These ranged from Green Stamps to redeeming a free gift for cereal box tops.

Gamification – A chance to win from genres of games, providing the psychological motivation to play and win

“Gaming Digital Destinations” are captivating, fun, bold engagements within the store that carry on beyond the four walls of the space to provide a truly omnichannel experience. At the same time, they create an entertaining experience that motivates the shopper to come back to the store to play again and again.

The Gaming Digital Destinations involve not only the larger screen experience but also the consumer’s mobile screen and the associate’s tablet. And it continues at home leveraging the relationship created at the Gaming Digital Destination.

Gamification relies on an understanding of human psychology to inspire and motivate shopping behavior. The key psychological, emotional and social ingredients of Gaming Digital Destinations include:

Emotional Drivers – Creating a connection with the consumer by triggering one or more of the eight psychological drivers: Self-Creation, Mastery, Dreaming, Security, Playtime, Sport, Sanctuary and Connection

Selfie-Sharing – Creating a two-way conversation between the brand and the digital shopper

Personalization – Using unique visual choices that align products with the distinctive persona

Using these key ingredients, the retailer and the brand can engage the digital shopper to have fun on their in-store Gaming Digital Destination and when the consumer leaves the store, continue that conversation on their pocket screen and home screen — anywhere, anytime.

Next week I will highlight Omni Channel and Gaming Digital Destinations.

Posted by: Admin AT 02:44 pm   |  Permalink   |  0 Comments  |  
Wednesday, 14 May 2014

Part 1 of 4

According to the Forrester Group, ecommerce accounted for eight percent of total retail sales in the U.S. during 2012.  By 2017, it is expected to account for a full ten percent of all retail sales. This still leaves 90% of retail sales generated in the retailer’s store.

But shoppers today are more demanding and frustrated than ever with their in-store shopping experience.  This dissatisfaction comes from increased competition, including on-line sales, that drives the need for higher service levels and greater differentiation.  A recent study found that 80% of the retail CEO’s surveyed believe they now deliver a GREAT customer experience.  Unfortunately, only 8% of their customers AGREE.

To attract and converse with today’s ‘Digital Everywhere’ shopper, the store must meet the consumer on their own turf by providing a true “Digital Destination.”  Digital Destinations are captivating, fun, bold engagements within the retail environment.  They also carry on beyond the four walls of the store by enhancing the Omni-channel experience. They create an entertaining experience where the shopper is motivated to come back to the store to engage again and again.

Digital Destinations are an elusive blend of psychological, emotional and social ingredients that engage the shopper’s persona, augment the store’s physical environment and enhance the brand’s image.  And the heart of any effective Digital Destination is ”Gamification.”

Gamification is the study of how games can be designed and used to engage shoppers and create a more stimulating, fun and recurring shopping experience. It relies on an in-depth understanding of human psychology to be able to inspire and motivate shopping behavior. It is a formulated combination of one or more psychological driver, personalization and selfie-sharing.

An effective Gaming Digital Destination must motivate shoppers to take time out of their time-starved lives and connect with the brand; then continue that connection on their pocket screen or online at home. But each retail vertical holds its own unique challenges so there isn’t a one-size-fits-all.

In the next four weeks, I will write about the framework for developing effective in-store Gaming Digital Destinations including a major brand case study.  I will explain how brands and retailers can meet the digital shopper on their own turf by creating in-store Digital Destinations that are bold, engaging and unique.  I describe the process required to connect emotionally with the shopper and keep an ongoing conversation once they leave the store. It is a Win-Win for the retailer, brand and shopper.

The math is simple; to maintain equivalency, a 10% growth in eCommerce only requires a 1% lift in store sales.

Posted by: Admin AT 09:47 am   |  Permalink   |  0 Comments  |  
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