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RetailAcceleration
April 2016
Digital Transformation
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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 1SHUTDOWN
STORES
CHOICE 2REDUCE
MARKETINGBUDGET
CHOICE 3REDUCESTAFF
CHOICE 3MAKE
CHEAPERPRODUCTS
REDUCEACCESS
REDUCEINTEREST
REDUCEINTER-ACTION
REDUCEQUALITY
REDUCESALES
DEATHReduce 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
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Digital Jargon
Globant Proprietary
?
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then WhatWhy,
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:
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Yes, they are responding with a round of store closures but only 14 poorly performing stores from its over 800 store network...
Macy’s steps up its online
investments
Mobile salesdouble 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
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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
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More importantly Macy’s is placing its bets on omnichannel which is really a focus on creating cohesive full ecosystem journey’s for customers.
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A familiar example: the tip of the iceberg
A familiar example:the tip of the iceberg
* Source: Public Internet
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Specific self-centric UIVarious media
Decentralized decisionsMultiple data sources
The WebStore CRMs Finance ERP
Globant
Reality Check
Globant Proprietary
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Smart Digital Journey Engine
Store ERPs CRMs Finance Fulfillment
big data fast data
Maximizing the interaction - the first Journey
Syst
ems
of R
ecor
dSy
stem
s of
Eng
agem
ent
Globant Proprietary
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The beginning of a journey...
* Source: public internet
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When thinking about the experience becomes part of the experience… magic delivered!
* Source: public internet
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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
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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
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But how can we get many diverse teams working together effectively?
Making it all work
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Architecture
Let’s “Podify”
Engineering
Business
Design
Globant Proprietary
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journeys through pods Some quantitative results enabling
Design Iterations
1/2
Velocity
3X
Conversion
3X 30% Lower cost per
point
Globant Proprietary
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sentinel.globant.com/
Globant Proprietary
Learn more...
sentinel.globant.com On Amazon.com...
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Gracias!@aangelani