Retail success today is all about developing the tech, tools, and talent to be relevant to the individual consumer. Be sure to also check out Five questions to answer if you want to thrive in the age of “Me-Commerce” on our website: http://mckinseyonmarketingandsales.com/five-questions-to-answer-if-you-want-to-thrive-in-the-age-of-me-commerce

1. TRENDSROCKINGTHERETAILBOAT
MAKINGTHEJUMPTO “ME”
THE“
ME”
PAY-OFF
DOSTORESGETME?
Retail success today is all about developing the tech,
tools, and talent to be relevant to the individual consumer.
“Me-Commerce” and
the Future of Retail
Under Pressure
Consumer
Tech
Revolution
Make Tech Work Harder
Find the Talent
Demographic shifts
MILLENNIALS
will account for
one third of all
retail spending
BABYBOOMERS
are a source of
big spending
growth
across several
major categories,
HISPANICSwill nearly double
their retail spending
in the next ten years
Pervasive
Participatory
Personalized
Prescriptive
Px4
“Let me shop wherever I am.”
of all tablet use
occurs in bed.
“I have a voice now and I
am going to use it.”
“Make it relevant to me.”
“I’m in control of the
shopping process.”
of users have
created content online.
of online buyers
are willing to share
personal information to
receive relevant coupons
of shoppers
use their smartphones
to look for the best
price while in-store
8%
The amount WalMart
drove other retailers
to cut from their cost base.
The amount Amazon is
forcing retailers
to cut from their
costs base today.
of all retail
sales come from
e-commerce
channels
including food
and housewares
2x
92%
73%
21%
50%
The New “Four Ps”
of Customer Behavior
35%
44%
1/3
by 2020
THEN NOW33%
15-
20%
ANALYZE
shopping behavior to
provide tailored product
recommendations
Google/Shopper sciences, Zero moment of macro study, April 2011; www.google.com/think/insights; N = 5,003
USE INSIGHTS
on customer
preferences to improve
supplier negotiations
OPTIMIZE
pricing and promo
scheduling based on
multiple indicators
5-10%
1-2%
1-2% +/-
shopping
volume
increase
reduction
in fixed and
unit costs
point
margin
increase
ACQUIRE IT:
of acquisitions by
Top 5 players
are focused
on IT
GET CLOSE TO IT:
Staples built an e-commerce
innovation center in
Cambridge, MA.,
(near Harvard and MIT)
Great companies get creative about finding talent.
HIRE IT:
85%
1010100
retailers see when they personalize
ad campaigns and offerings based
on purchase history.
The increase in
marketing ROI10%
of all content viewed
on the site based on
of revenues driven by
insights into customer
preferences to
personalized recommendations.
create specialized sites.
EBITDA growth rates
for retailers who focus
on customer analytics vs
their main competitors:
Grocery retailers:
11%
3%
Big box retailers:
10%
2%
75%
50%
Consideration
50%
of shoppers
search online
for a product
of shoppers have
compared products online
Evaluation
38%
Post-purchase
experience
66%
Loyalty
23
of consumers (Skin care)
continue to research brand
choice after purchase
Each US household
belongs to an average of
23 loyalty programs
Purchase
53%
of all retail purchases
are influenced by
digital channels
Bonding
25-45%
telecoms customers go
to stores after purchase
ADVOCATE
EXPERIENCE
BOND
CONSIDER BUY
EVALUATE
of all e-commerce sales
or 1.2% of all retail sales
are estimated to come
via mobile
devices.
15%
Stanford University HARVARD UNIVERSITY
vs
vs
Decode Each Customer
Decision Journey
McKinsey analysis, McKinsey iConsumer research, Euromonitor, Forrester, Kantar, Moody’s, eMarketer, US Bureau of
Economic Analysis, The Bureau of Labor Statistics, The Census Bureau, MarketingProf, Google/Shopper Sciences