The Future of Shopping: How New Technologies Disrupt Retail & What Opportunities It Creates for Entrepreneurs Join us for this exclusive discussion of new technology trends that threaten to disrupt online shopping as we know it. In this interactive, engaging and very provocative talk, Michael Weissman, CEO of Synqy Corporation will explain the current digital path to purchase, who’s trying to control this process and what to do about it. DISCOVER what business opportunities this brings - in new technologies, new business models, new marketing approaches FIND Out about a quiet rise of unexpected competition - Google, which may end up controling the entire digital path to purchase LEARN practical steps and tools to help you take advantage of unprecedented changes in online shopping and grow your business SPEAKER: Michael Weissman Chairman and CEO of Synqy Corporation co-author of The Paradox of Excellence With 25 years of high technology marketing experience with large companies and start-ups—and 15 of those years in senior executive positions— Michael Weissman is currently Chairman and CEO of Synqy Corporation ( www.SYNQY.com )—a leading Internet marketing technology that adds deep interactivity and engagement to digital images. As a brand marketing consultant, Weissman has advised some of the most successful companies in technology including Apple, Amazon, Adobe, HP, Intel and Symantec. He is also co-author of The Paradox of Excellence, which has been published in 7 languages.

1. The Future of Retail
How to put it back together when it all falls apart

2. Outline
• Macro view
• Implications
• Causes
• Recommendations

3. 30,000” view

4. WHAT IS RETAIL?

5. Ecommerce Value Chain
Customer
perspective
Seller
perspective
Selection
Finding the
right product
quickly
Customer
acquisition &
merchandising
CMS
Buy
Fast, simple &
affordable
transaction
1-click ordering
Process order
Easy to pay the
way want to
pay
Cart
Get it
shipped
Convenient
delivery &
cost
Warehouse &
logistics
Get support
Easy to try,
return, or work
through issues
Omni-channel
support

6. Ecommerce Value Chain
Selection
SINGLE RETAILER
Benefits of scale
- Purchase power
- Selection
- Logistics efficiencies
Buy Process order Get it
shipped
Get support

7. Yet… Retail is breaking

8. Becoming disaggregated
Discovery
Buy
Selection
Transact
DeliverySupport
Share

9. PLACE

10. Changes in
Distribution
Drive
Innovation

11. Instacart

19. Where can it head?
• Robotic sorting
• Robotic delivery
• Autonomous cars

20. Moving to Omni-Channel

21. INSIGHT | WHAT HAPPENS WHEN RETAIL
IS NO LONGER A PLACE?

22. DISCOVERY & SEARCH

23. © 2013 SYNQY
CONTENT CONSUMPTION WAS CENTRALIZED
80% of adults could be reached
with 3 TV ads in 1965.
Today, it would take 117
commercials in prime time.
- Former CMO, P&G

24. Path to purchase used to be linear

25. Most time was in store
Actively shopping After the exchange
Preparing to shop

26. Retailers are too-transaction centric
• Didn’t focus on path to
purchase (P2P)
• Missed most of the
shopping process
• Less opportunities to create
ROI and monetization
Only
focused
here
Missed opportunity
Missed
opportunity
15 different sites over 5-6 weeks Lots of content
Actively
shopping
After the exchangePreparing to shop

27. Discovery time in-store is declining
34% drop
Shoppers are going
elsewhere to learn
about what to
purchase.
This raises
acquisition costs,
too.

28. Money is made along the path to
purchase not, just at transaction
Discover Purchase Use
Marketing $$ Margin $$ Repeat/Upsell $$

29. Ad revenue has dropped 50% in 6 yrs
50% drop
Advertisers
know retailer
circulars don’t
work like they
used to.

30. The Purchase Path is now convoluted

31. The number of touch points is
growing exponentially.

32. © 2013 SYNQY
CONTENT IS EXPLODING
Breaking through is harder than ever
“We generated more
content in the last 2 days
than we did from
beginning of time until
2003”
– Eric Schmidt,
Google
2003TodayBeginning of time
2 Days today > 6,000 years

33. © 2013 SYNQY
CUSTOMERS MORE DISTRACTED THAN EVER
Source: Google

34. © 2013 SYNQY
CONSUMERS DON’T READ, THEY SCAN
Read only 8% of the article (32 words)
40%
view
½
story
http://www.slate.com/articles/technology/technology/2013/06/how_people_read_online
_why_you_won_t_finish_this_article.html
Only 40% see more
than ½ the article
And they only read 20%
of what they see.
Source: Jacob Nielsen

35. © 2013 SYNQY
USERS DON’T CLICK ON WHAT THEY DON’T
SEE
(only 10-20% of links get seen)
50% never
read past
here.Above the
fold The good stuff –
the interactive
content and links
are here.

36. © 2013 SYNQY
AND THEY RARELY GET TO THEIR CTA
DESTINATION
Most customers are lost
quickly when asked to
click away from what
they are doing
0%
20%
40%
60%
80%
100%
120%
1 2 3 4 5 6 7 8
Number of clicks
33%
11%
3.7%
1.2% 0.41% 0.14% 0.05%
% of
customers
still with you

37. Marketing $ are moving from retailers
to online properties like Google
Discover Purchase Use
Marketing $$ Margin $$ Repeat/Upsell $$

38. Product Listing Ads – big trend

41. Internet Scavenger Hunt
BUY

42. MARKETING TRANSPORTATION$100B

43. Marketing dollars are substantial…
$83
Google Ad
dollars per
order*
$10 margin
per order
Source: Google average ad cost @ 3% convert rate,
Margin assumption of 50%
8x
bigger

44. Retailers are getting commoditized
Price becomes differentiator

46. Who is this retailer?

47. Who is this retailer?

48. Let’s skip search
altogether!

49. INSIGHT | WHO CONTROLS SHOPPER?

50. DIGITAL SHELF

51. How will we disrupt merchandising?
Discovery
Buy
Selection
Transact
DeliverySupport
Share

52. HOW WILL YOU CUT
CUSTOMER ACQUISITION COSTS?

53. Add value through proximity
$$
Path to purchase
POS
The closer to the time
and place of purchase,
the more valuable the
marketing investment

54. Persuasion is weakest at the shelf

55. Brand Storytelling and
product marketing are
separated

56. Limited retail usability innovations
2002 2014

57. Object of Desire

58. Object of Desire
The desire comes from the
marketing and brand work

59. Ecommerce Today
No persuasive
brand content
How Brands Market

60. Object of Desire
Great content is stripped
when it goes to resellers

61. Object

62. INSIGHT | RETAILERS ARE
COMMODITIZING BRANDS

63. Commoditized shopping experience

64. Commoditized shopping experience

65. There’s very little other differentiation
Section Attribute TRU Amazon Walmart Target
Details &
Description
Product details ✔ ✔ ✔ ✔
Product description <50 word ✔ ✔ ✔ ✔
Quick bullet facts about product ✖ ✔ ✔ ✖
Rich-media
content
Roll over image/zoom ✔ ✔ ✔ ✔
30 Second video commercial ✔ ✖ ✖ ✖
Customer
and shipping
information
Customer Question & Answer ✔ ✔ ✔ ✖
Customer reviews ✔ ✔ ✔ ✔
Featured/related items ✔ ✔ ✔ ✔
Fast shipping options ✔ ✔ ✔ ✔
Local store search ✔ N/A ✔ ✔
Price comparison/financing options ✖ ✔ ✔ ✖

66. INSIGHT | RETAILERS ARE
COMMODITIZING THEMSELVES

67. Enthusiasm gets lost, not amplified

68. What Happens Without
Impulse Buying?

69. Merchandising
Matters.

70. Didn’t deliver right content
• Most shoppers still go to
vendor websites for
information
• Over 50% of shoppers who
abandon shopping carts go
to visit vendor websites
Lack of vendor information is driving nearly 40%of cart abandonment
100%
of carts
70%
abandon 56%
Of abandons leave
to visit vendor’s site
for informa on
39%
of cart loss due
to missing info

71. Sources: LivePerson, IBM/CoreMetrics
100% of
shopping
carts
32%
Buy
The cost of stripping
away the content

72. Sources: LivePerson, IBM/CoreMetrics
100% of
shopping
carts
68%
Abandon
32%
Buy
The cost of stripping
away the content

73. Sources: LivePerson, IBM/CoreMetrics
100% of
shopping
carts
32%
Buy
41%
Other reasons
27%
Seek rich
vendor content
The cost of stripping
away the content

74. Transactional info, not lifecycle info
• Focused only on one
small sliver of time
and narrow content
• Didn’t think end-to-
end or whole
consumer lifecycle
BEFORE
TRANSACTION
DURING
AFTER
How-to Guide
User Manual Coupons &
Discounts
Promo ons
Tes monials
Demo Video
Customer FAQs
Product Detail
Support Social Sign-up

75. Win the discovery phase with more
relevant content
Discover Purchase Use
Give them a reason to
shop you in this phase

76. Content Enhances Discovery
VENDOR PRODUCT
REGISTRATION
VENDOR-BASED
PRODUCT SUPPORT &
CONTENT INFORMATION
PROMOTIONAL INFO
BUYER’S GUIDES &
EXPERT ADVICE
LIVE VENDOR CHAT
AUTHENTIC UNBOX VIDEOS
AND USER PHOTOS
INTERACTIVE MARKETING
MATERIALS
CAUSE
MARKETING
MATERIALS
RICH-MEDIA
SHARING
HOW-TO
TUTORIALS
AWARDS

77. INSIGHT | RELEVANCE WINS DISCOVERY

78. COMPARISON SHOPPING

79. HOW WILL YOU FIGHT SHOWROOMING?

80. THE PATH
ISN’T CLEAR

81. AMAZON FIREFLY

82. Google Value Chain
Selection Buy Process order Get it
shipped
Get support
PLA
Adwords
Express
Wallet Wallet
Express
Express ?
44% of transactions today in ecommerce

83. Where are you?
Advice: Be careful with your partnerships

84. INSIGHT | SCALE MATTERS AGAIN.

85. © 2013 SYNQY
ENCOURAGED YET?

86. THE VENDOR
PERSPECTIVE

87. WHAT HAPPENS WHEN 3-4 BIG
RETAILERS CONTROL EVERYTHING?

88. Vendors need a toxin. Retailers too.
Need a way out.

89. Vendors need
to protect their
channel.

90. As Google search goes local,
National brands lose control

91. Vendors must transform discovery
Discovery
Buy
Selection
Transact
DeliverySupport
Share
• Lowers the Google tax
• Increase flatter retail
• Shortens path to purchase
• Can move location of retail

92. INSIGHT | IT’S THE NETWORK. STUPID.

93. HIDDEN PROBLEM.
Product marketing content
doesn’t flow to resellers.

94. PRODUCTS FLOW

95. PRODUCTS FLOW
Content Doesn’t
Flow

96. Work gets
replicated

97. Problem
• Gathering the rich media content
• Organizing and managing it
• Keeping it current
• Displaying the content across sites,
platforms and apps
Too hard and
expensive for
companies to
do themselves

98. INSIGHT | IT’S THE NETWORK. STUPID.

99. NOW WHAT?

100. EMBRACE THE COMPLEXITY

101. Turn Pointers to Engagement into
Places of Engagement

102. Built engagement everywhere

103. LEVERAGE
THE POWER
OF THE
NETWORK

104. Introducing SYNQY

105. Introducing SYNQY

106. Introducing SYNQY

107. Introducing SYNQY

108. Introducing SYNQY

109. Introducing SYNQY

110. Introducing SYNQY

111. Rich, interactive
brand content
Improves your
results and
product pages
Curates together
Live
Feed
How it works

112. SEE IT IN ACTION

113. Sources: LivePerson, IBM/CoreMetrics
100% of
shopping
carts
32%
Buy Upside of fixing
91%
growth
41%
Other reasons
27%
Seek rich
vendor content
SYNQY can
deliver real
financial
results

114. Everybody Wins
Shoppers
Get better experience
Resellers
Increase revenue per visitor
Brands
Improve persuasion at the
pivotal moment of truth

115. UPDATE ONCE – CORRECT
EVERYWHERE

116. See more
clearly

117. Hassles eliminated
• Simplify shopping
• No more wasted time
• Discovery is comprehensive

118. DYNAMIC &
RESPONSIVE

119. Costs Eliminated
Gets rid of manual
efforts to keep content
current and relevant

120. INSIGHT | PARTNER OR PERISH

121. WHAT IS RETAIL?

122. Summary
• Retail is disaggregating
• Product discovery sits as
pivotal way to survive
• Key is to partner with
vendors
• Think network, not static
• Ride the change to survive

123. Thank you
michael@synqy.com
925-200-1047

124. Q&A | LET’S DISCUSS