Brand value increases across categories

Thought Leadership Shaping Seamless Retail with unique Experience Signatures
SHAPING SEAMLESS
RETAIL wITh
UNIQUE ExPERIENCE
SIGNATURES
Combining the physical, human and digital
Aaron Shields
Strategy Director
aaron.shields@fitch.com
Tim Greenhalgh
Chief Creative Officer
tim.greenhalgh@fitch.com
The search for the elusive seamless retail offer
should begin with an understanding of the Physical,
Human and Digital (PHD) dynamics of each and
every shopping experience. FITCH believes that
retailers and brands will need to look beyond ‘just
digital’ in order to create a ‘unique experience
signature’ to build competitive advantage.
HERE’S SOMETHING we’re sure you’ve heard
before… technology has changed the way we shop
forever. People have more power to shop on their own
terms, thrusting radical change and opportunities upon
traditional retailers and making way for whole new
kinds of retailers to enter the fray.
All these retailers are chasing the Holy Grail of seamless
shopping – a future where multiple shopping channels
work in concert to achieve two main goals for people:
1. Improving the ease of shopping
Solving various pain points from “choice anxiety” to delivery.
2. Making shopping about more than the purchase
Creating joy-filled experiences where people can dream of a better
world for themselves, learn new things, have fun and fall in love
with retailers.
Most retailers are busy creating omni-channel teams,
revising organizational silos and mashing up skills
in e-commerce, retailing and marketing functions.
Because technology is such an important catalyst for
seamless shopping, it has, understandably, stolen much of
the spotlight.
Beyond the “just add water” approach
We see a worrying imbalance taking place at traditional
retailers. We call it the “just add water” approach to bringing
technology in store. It’s typified by placing a tablet-based
catalogue next to a rack of products on display. These
digital devices remain largely ignored in store and aren’t
used for their intended purpose of promoting the longtail
of products from that retailer. Clearly, a more holistic
approach is required to reach consumers whether they’re in
a store, at home or on the move. While e-commerce is a more
mature shopping vehicle, applying technology in stores is in
its infancy.
As we inch closer to a seamless shopping future, we must
appreciate how all the basic building blocks of a retail
experience can combine to improve the ease of shopping,
target different shopper mind states and create distinctive
new experiences. FITCH has distilled the essential
building blocks of any shopping experience into the
following elements:
Physical
A structure that can be visited, be it a traditional
shop, a pop-up store or something more nomadic.
Human
The dynamic interaction that only real people can
provide, whether it is face-to-face, over the phone or
through digital tools like instant messaging. We include
interactions between retail employees and customers,
but also between customers and any other peer
involved in the decision-making or support process.
Digital
Technology tools to help shopping including
broadcast, interactive and personal devices.
Each of the three PHD elements possesses certain
advantages that are impossible to replicate in any other
element. We all get excited about touching products we
love, whether it’s a mobile phone or new dress (Physical).
Sometimes, when we need an opinion or an affirmation
of how we feel about a product, we may turn to a
salesperson or a friend (Human). On the other hand,
there is no way for a physical setting like a store to
replicate the endless product selection that’s available in
the digital setting of an e-commerce shop (Digital).
There are some absolutes that retailers can and should
take advantage of. For example, traditional bricks
and mortar retailers should remember that people still
need to leave the house and take excursions. That’s
an opportunity to make the store visit more enjoyable
and shift the chore-like tasks online if possible. Direct
retailers with a call center need to recognize that scripted
conversations are a poor cousin to dynamic genuine
dialogue with real people.
Planning the seamless experience
Thinking about the advantages specific to each PHD
element helps us plan seamless experiences. The idea, of
course, is to blend these elements to create different ways
for people to shop. But the way we blend the elements
creates big differences in the shopping experiences and
helps define retail brands.
Consider the Human element, for example. The stated
strategy of UK department store John Lewis places
employees at the top of its priorities. Customers feel
confidence and trust in the brand as a result. While the
retailer has a considerable online business, it’s the quality
of the human interaction that creates the difference in
the experience. Similarly, apparel retailer Zappos has
built a $1 billion business on the strength of creating
great interaction between its customers and employees.
But Zappos is exclusively an online retailer. Zappos calls
itself an online service leader and wants to be known for
the absolute best service. While John Lewis and Zappos
play in different channels, they both have recognized
that human interaction is paramount to maintaining a
unique experience and a unique brand.
The way in which each PHD element is deployed
creates another level of difference. For example, Zappos
and the fast fashion retailer Uniqlo both over index on
the human element in the experience they engineer,
but their employees are deployed in different ways.
Zappos employees are highly trained in sales and
problem resolution, and given a wide mandate to delight
customers. Uniqlo floods its stores with employees,
compared to its competition, but these employees are
trained to help customers find what they are looking
for, make easy returns and keep the merchandise
looking great.
The combinations of the PHD elements create a unique
“experience signature” that differentiates and produces
competitive advantages for retail brands. Walmart and
John Lewis both began life as single channel brands.
Both have become multichannel brands. One day, both
will create seamless experiences for their customers. But
the difference in the way these retailers deploy their PHD
elements will continue to define how they are perceived
by people, what kind of purchases will be made and the
level of involvement customers are willing to commit to
the brands.
FITCH is a global design consultancy devoted
to translating brand into consumer experience.
Founded in 1972, FITCH has more than 350 people
working across 14 studios in nine countries.
www.fitch.com
64 BrandZ Top 100 Most Valuable Global Brands 2013 65
Empathetic
Supported
Community
Immediate
Excursion
Immersive
Tactile
hUMAN
PHYSICAL
PHD Elements
DIGITAL
Each PHD element of the
shopping experience has
unique advantages
Perfect
information
Storytelling
Infinite choice
Low cost