Online-Offline Convergence - First Data

Universal CommerceOnline-Offline ConvergenceOrganizations Are RethinkingHow They Do BusinessDuring their discussions, the Innovation Exchange members returned again and again tothe opportunities that online-offline convergence is bringing. Organizations that rethinkhow they do business can take advantage of the new tools and information availableto them, including more robust customer data, almost-infinite technology growth,innovative marketing concepts, broad partnership prospects, and so much more.How are consumer behaviors shaping the future of commerce?TroyDicksonAlisaI don’t think we’ve yet scratched the surface of all the new doorswe’ll open by converging online and offline experiences. Just afew short years ago, none of us would have envisioned what Tescois doing in subway stations in Seoul today.I agree that we’re just scratching the surface of what’s possible.The opportunity speaks to the notion of empowered consumers,and being able to merchandise to them in all sorts of differentmodalities and venues that are outside of going to a singlephysical place. We have the power to virtualize merchandising,promotion, and advertising.Innovations will be driven, first and foremost, by customer insightgained through online, offline, and mobile interactions. Tesco’sunderstanding of their customers, knowing that they spend a greatdeal of their time on public transportation, fueled the concept ofmaking virtual store shelves available, in the subway station. Theymake customers’ lives easier and as a result, they sell more.Subway Stations Are Homes toTesco’s Virtual Supermarkets andCustomers Are Eating It UpAfter researching the way Koreanswork, live, and shop for groceries, Tescodevised a virtual store sales strategy.The company set up large billboardposters in subways. The posters arevibrantly lighted, highly colorful, life-sizephotographs of grocery store shelveswith detailed images of productsarranged on the shelves exactly the waythey would be in the store.Commuters heading home from workare able to do their grocery shopping inthe subway using a mobile app on theirsmartphones. Customers add products totheir virtual carts using QR codes, chargethe purchases to card accounts on theirsmartphones, and then they head totheir homes. Typically, the groceriesarrive at a consumer’s home about thesame time he does.Customer insight-led innovation involves two dimensions:First, you need to understand transaction data from inside yourfirewall. What do your systems of record reveal about customer behavior in-storeand online? Second, you need to understand social sentiment. What are yourcustomers talking about in the social sphere? What are they interested in? Whatare they shopping for online? Many companies are starting to use crowd sourcingfor product development and testing.Technology aids in both, and is at the fingertips of companies today. However, Idon’t want to make it sound easier than it is. Even your own transactional data maybe housed in different places.“Innovations will be driven ...by customer insight gainedthrough online, offline, andmobile interactions. ... Theymake customers’ lives easierand as a result, they sell more.”Alisawww.firstdata.com/innovationexchangeSponsored by©2012 First Data Corporation. All rights reserved.11