Preparing for Distributed Commerce

http://www.marianaromanica.ro/7-trucuri-pentru-un-shopping-de-vis
PREPARING FOR
DISTRIBUTED COMMERCE
Seamless Retail Middle East - Keynote
Samantha Starmer
2 May, 2017

Samantha Starmer – Preparing for Distributed Commerce
WHO AM I?
2/5/2017 2
Formerly VP Global
Digital Experiences,
Ralph Lauren
Also Razorfish, REI,
Microsoft, Amazon
I’m passionate about
creating GREAT
customer experiences,
regardless of screen or
device; online or offline.

LET’S START BY GETTING
ALIGNED…
3Samantha Starmer – Preparing for Distributed Commerce2/5/2017

DIGITAL AND PHYSICAL HAVE COLLIDED
SEPHORA
LEVI’S
LOWE’S
RALPH LAUREN
BURBERRY
UNIQLO

CONVERSATIONAL COMMERCE
5
http://www.guided-selling.org/from-e-commerce-to-conversational-commerce/
Samantha Starmer – Preparing for Distributed Commerce2/5/2017
“Microsoft chief executive Satya Nadella concluded ‘Bots are the new apps’ and will become the primary…channel
between businesses and shoppers…Marc Zuckerberg [said] chatbots will replace contact center agents within the next
decade.”

TOUCH COMMERCE
6
http://www.instyle.com/news/ralph-lauren-interactive-shopping-windows-bloomingdales
http://sigs.cim.co.uk/media/2426/bloom.jpg
"It's very important for us to connect with customers in a unique way…We wanted to create an interactive experience
that would literally make you stop in your tracks with—something theatrical and mesmerizing."

VOICE COMMERCE
7
https://www.forbes.com/sites/jiawertz/2017/02/26/how-artificial-intelligence-can-benefit-e-commerce-businesses/#6b3a19b854b2
http://www.techrepublic.com/article/just-in-time-for-holiday-shopping-e-commerce-gets-ai-upgrade-with-ibm-watson/
“With the help of IBM’s Watson, [The North Face’s] goal is to help online shoppers find the perfect jacket. How? By
asking customers questions using voice input AI technology, such as where and when they will be using the jacket.”

WEARABLE COMMERCE
8
http://www.sitemason.com/files/xXRF8Q/LeeHuman3.jpg/main.jpg
“If an employee works in packaging…[they] can sense how many times they have to bend over during their
shift and provide them with a list of products that can protect their back.”

INTERNET OF THINGS
COMMERCE
9
http://www.theverge.com/2016/1/5/10708380/samsung-family-hub-fridge-mastercard-app-groceries-ces-2016
“The headline feature is a shopping app that's been created by MasterCard. It lets you buy groceries right from the
door, and the intelligent part is that it can combine carts from multiple stores. At launch, you can order from FreshDirect
and ShopRite, and MasterCard says that more stores will be added throughout 2016.“

AUGMENTED REALITY
COMMERCE
10
http://fashionandmash.com/2016/06/14/henry-hollands-lcm-show-instantly-shoppable-thanks-augmented-reality-app/
http://fashionandmash.com/tag/london-fashion-week/
“Augmented reality has the potential to be transformative for the retail industry. Imagine a future where you can point
your phone at a friend’s new outfit with their permission, only for the app to recognise and source that outfit in your size,
and give you the option of having it sent straight to your home.”

VIRTUAL REALITY COMMERCE
11
http://media.ebay.com.au/world’s-first-virtual-reality-department-store
http://www.adweek.com/digital/new-study-says-people-are-more-likely-buy-brands-use-virtual-reality-172557/
“71% of survey respondents feel that VR makes brands seem "forward-thinking and modern…53% said they'd be
more likely to purchase from a brand that uses VR than from one that doesn’t.”

ARTIFICIAL INTELLIGENCE
COMMERCE
12
http://newatlas.com/oshbot-lowes-robot-sales-assistant/34560/
“OSHbot provides information in real time about products and inventory and…pushes store promotions. It speaks
several languages and…can also help with inventory management and allow employees to communicate between
stores.”

COOL!
BUT WE HAVE A
PROBLEM…

WE TEND TO DESIGN FOR ONE OR TWO
CHANNELS
14
http://www.smartinsights.com/mobile-marketing/mobile-commerce/mobile-users-still-not-converting/attachment/conversion-rates-of-online-shoppers-by-device-and-platform-2/
https://ecommerceguide.com/wp-content/uploads/2015/02/responsive-web-design.png
Conversion rates of online shoppers by device and platform - data from Monetate

BUT CUSTOMERS DON’T THINK IN CHANNELS
15
websites
email
text
videos
banner adssocial media
direct mail
broadcast media
print ads
blogs
“…the sales
channel will be
irrelevant and
shoppers will not
care about the
channel or even
realise the
difference because
there will be no
difference.”
- Mark Beresford
https://www.linkedin.com/pulse/immersive-technologies-retailers-mark-beresford

WE DISTINGUISH EXPERIENCES
16
http://www.etonline.com/news/2016/05/24240778/1280_chewbacca_mom_candace_payne_facebook_video.jpg

SUCCESS…

OR NOT
18
http://images.viralnova.com/000/059/803/desktop-1406690090.png

IN MANY PLACES RETAIL IS
STRUGGLING
https://www.pwc.com/us/en/deals/publications/ipo-watch-weekly/disruptors-final.pdf
90% of consumers are Amazon shoppers, accustomed to frictionless, one-click checkout. So
much so that almost 40% of them shop less often at retail stores and 25% shop less often at other
retailers online.

IN THE UNITED STATES…
“The current torrent of closures comes as consumer confidence is strong and unemployment is low,
suggesting that a permanent restructuring is underway, rather than a dip in the normal business cycle.
In short, traditional retail may never recover.”
https://www.nytimes.com/2017/04/15/business/from-zombie-malls-to-bonobos-americas-retail-transformation.html

PART OF MY FORMER TEAM
“It’s been a grim last couple of weeks to work for Ralph Lauren…the fashion house said it would close its Fifth Avenue
flagship store on April 15 and that an undisclosed number of corporate jobs would be eliminated as well."
http://nypost.com/2017/04/13/layoffs-at-ralph-lauren-are-starting-to-pile-up/

RETAIL DISRUPTION IS ONGOING
22
http://the-digital-reader.com/wp-content/uploads/2016/12/amazon-go.jpg, http://www.net-expert.it/wp-content/uploads/2016/12/Shoppable-video.jpg
https://www.pwc.com/us/en/deals/publications/ipo-watch-weekly/disruptors-final.pdf. https://ourconnectedworld.files.wordpress.com/2013/03/nine-west-youtube-shoppable-video.jpg, http://www.geek.com/wp-content/uploads/2016/07/711-drone.jpg
“The magnitude of this disruption is unprecedented; retail is among a wide array of industry sectors fighting the
onslaught. In fact, the retail store of the past may well be dead, as evidenced by the ongoing trend of thousands of store
closures over the last decades. "

DISTRIBUTED WON’T HAPPEN BY MAGIC
https://static01.nyt.com/images/2015/07/13/arts/13PENNTELLJP/13PENNTELLJP-master1050.jpg

OKAY. BUT WHAT DO I DO?

5 PILLARS FOR DISTRIBUTED
COMMERCE
1.HUMAN CENTERED
2.DIGITAL + PHYSICAL
3.CONNECTED & CONTEXTUAL
4.SERVICE ORIENTED
5.FLEXIBLE

1. HUMAN CENTERED
26
“You've got to start with the customer experience and work back toward the technology - not the other way
around."
– Steve Jobs
http://www.todayifoundout.com/wp-content/uploads/2014/11/crowd.jpg

WHY?
https://www.theodysseyonline.com/an-open-response-to-arent-you-tired-of-going-to-disney
Customer Experience Impact Report. Oracle
“86% of consumers will pay more for a better customer experience but only 1% of
consumers feel their expectations for a good customer experience are always met."

NEED MORE CONVINCING?
“If there's one reason we have done better than of our peers…it is
because we have focused like a laser on customer experience.”
Infographics: http://www.clarabridge.com/blog/the-top-14-customer-experience-cx-stats-of-2016/

WE MUST UNDERSTAND THE HUMANS
https://www.youtube.com/watch?v=w3FQcbXQpb8, https://www.nytimes.com/2017/04/12/fashion/store-of-the-future.html
“Those who are using technology and data to create bespoke shopping experiences that recognize every
person is different, and with different needs, are more likely to come out on top.“

HOW?

ESTABLISH EMPATHY
31Samantha Starmer – Preparing for Distributed Commerce
2/5/2017
“The main tenet of design thinking is empathy for the people you’re trying to design for. - David Kelley,
Founder of IDEO"
https://www.pinterest.com/pin/380835712211398649/

KNOW YOUR CUSTOMER & THEIR NEEDS
http://media-cache-ak0.pinimg.com/736x/6e/89/7d/6e897dfd63c84143818af7429ee22221.jpg

THIS CAN BE DONE EVERYWHERE

CONSIDER CO-CREATION
http://www.flickr.com/photos/thinkpublic/4499674785
SOME EXAMPLES:
LEGO
Starbucks
IKEA
DHL
Netflix
Made.com
Manchester City FC
Microsoft
Samsung

2. DIGITAL + PHYSICAL
35Samantha Starmer – Preparing for Distributed Commerce
2/5/2017
http://gopro.com/wp-content/uploads/2012/05/683x426_d04.jpg

PHYSICAL COMMERCE IS NOT OVER
https://www.godaddy.com/garage/wp-content/uploads/2016/06/warby-parker-physical-storefront.jpg, http://images1.phoenixnewtimes.com/imager/u/original/8827772/bonobos_guideshop_fifth_avenue_6h.jpg, https://s1.r29static.com/bin/entry/d06/0,425,2998,1574/x,80/1618358/image.jpg, https://www.pwc.com/us/en/deals/publications/ipo-watch-weekly/disruptors-final.pdf
“The process of discovery in a physical store — 'Oh, look, here’s the perfect gift for hard-to-buy-for Uncle Bob!' —
remains unmatched online. As does an environment in which shoppers are encouraged to interact and enjoy the
products just as they would at home."

WE HAVE TO MANAGE A NEW
ECOSYSTEM
http://the-digital-reader.com/wp-content/uploads/2015/11/amazon-books1.jpg
“While the store of the past may be dead, retailers are already adapting to a new retail ecosystem…a combination of
physical, digital, and complementary service offerings …The physical store is a key component of the new retail
ecosystem."

HOW?

UNDERSTAND ALL TOUCHPOINTS

MAP THE FULL CUSTOMER
JOURNEY
http://www.uxmatters.com/mt/archives/2011/09/images/EffectiveUIJourneyMapExample.jpg

CAN BE VERY LIGHTWEIGHT
41
Text: http://rethinked.org/?p=814
Work from Allan Kempson for Ralph Lauren
“Whether the task at hand is a hair dryer, a weekend retreat in the country, or an annual report, drawing
forces decisions." – Tim Brown, CEO IDEO

3. CONNECTED & CONTEXTUAL
42
http://www.halloweenforum.com/halloween-props/79597-need-help-ideas-new-fence.html

CONCURRENT MULTI DEVICE
USAGE
43
https://storage.googleapis.com/think/docs/twg-how-people-use-their-devices-2016.pdf
https://ssl.gstatic.com/think/docs/multi-screen-world-infographic_infographics.pdf

AND ACROSS THE PHYSICAL
WORLD
44
http://www.cegid.com/uk/wp-content/uploads/sites/2/2015/11/clienteling.jpg, http://screenmediadaily.com/wp-content/uploads/2013/04/showrooming.jpg, http://aumentor.qbcontent.com/wp-content/uploads/2016/03/Mobile-Point-of-Sale-Solutions.jpg, http://www.thefutureofluxury.co.uk/wp-content/uploads/2014/08/Screenshot.png

I LOVE EMBROIDERY!

HMMM - WHERE WOULD I FIND IT?

WHERE IS ISABELLA?!
47
https://vimeo.com/203906678

HOW?

PLAN ACROSS (AND BETWEEN)
CHANNELS

MEASURE ACROSS CHANNELS
50
https://www.thinkwithgoogle.com/infographics/consumer-i-want-to-buy-micro-moments.html

IS IT ALL CONNECTED?
EVERYWHERE?

SHARE, LEARN, WORK TOGETHER

LEARN CONTEXT NEEDS
53
Allan Kempson at REI
Text: http://www.unhcr.org/innovation/10-tweetable-quotes-that-will-spark-your-design-thinking/
“Human-centered design is a philosophy…that assumes that innovation should start by getting close to
users and observing their activities." – Donald A. Norman, Cofounder of Nielsen Norman Group

Samantha Starmer – Building for Your Users
4. SERVICE ORIENTED
2/5/2017 54
https://www.desk.com/blog/what-downton-abbey-taught-me-about-customer-service
“We are working hard to build a service that everyone, everywhere can use, whether they are a person, a company, a
president or an organisation working for change."
- Mark Zuckerberg

Samantha Starmer – Building for Your Users
WE ARE IN A SERVICE ECONOMY
2/5/2017
55
http://www.dachisgroup.com/2011/11/everything-is-a-service/

NEW MAKEUP SERVICE?

I WANT TO TRY!
Featured Sephora not found. Plus, no ability to schedule at my preferred location. So sad.

HOW?

UNDERSTAND SERVICE

WHAT IS THE EMPLOYEE CONTEXT?

BLUEPRINT THE SERVICE NEEDS
http://bridgeable.com/wp-content/uploads/Service-Blueprint.jpg

TRY SERVICE YOURSELF

5. FLEXIBLE
63
http://www.nytimes.com/2016/11/26/fashion/tao-porchon-lynch-oldest-living-yoga-celebrity.html

64
http://weheartit.com/entry/19106728, http://cdn.farmersalmanac.com/wp-content/uploads/2013/12/tornado-2006-420x240.jpg
Text: https://www.forbes.com/sites/michaelkanellos/2016/03/03/152000-smart-devices-every-minute-in-2025-idc-outlines-the-future-of-smart-things
http://www.nbcnews.com/id/43015182/ns/technology_and_science-innovation/t/reasons-will-be-awesome-year, https://www.gartner.com/imagesrv/summits/docs/na/customer-360/C360_2011_brochure_FINAL.pdf
IT’S ALL CHANGING…
By 2025, a $1,000 computer will have the processing power of the human brain; 80 billion devices will be connected to
the Internet; we will manage 85% of the relationship with an enterprise without interacting with a human. AND MUCH
MORE…

65
https://youtu.be/wr28_Pmg1Ag
WILL IT BE THIS?
“Using a combination of RFID and ultrasound…whichever products you touch and pick up in the store are
automatically sent to your app. You have effectively created your in store wish list." (Farfetch)

66
https://youtu.be/wr28_Pmg1Ag
OR THIS?
“In the middle you see a hologram of the product. The customer controls the experience on a touch
device…allows [them] to take elements of products and then add their own style to it." (Farfetch)

67
http://www.theverge.com/a/verge-2021/google-x-astro-teller-interview-drones-innovation
WE DON’T KNOW THE FUTURE
Trying to prognosticate is a very dangerous business. It’s good for people who are on the speaking circuit, but there isn’t
any evidence that anyone is any good at it".
- Astro Teller, Captain of Alphabet’s Innovation Lab

HOW?

TELL STORIES

GET OUT OF YOUR CHAIR
http://www.flickr.com/photos/xian/3763798434

71
https://www.linkedin.com/pulse/lessons-learnt-from-banking-better-user-experience-jensen-https://www.linkedin.com/pulse/lessons-learnt-from-banking-better-user-experience-jensen-loke
Text: http://scottberkun.com/2011/thinking-in-desire-paths/
“There’s an old concept among architects and urban planners called desire paths. If you walk around a college campus,
or urban park, it’s easy to spot the well tread paths between buildings people have made for themselves. …The natural
behavior among people shows you where the optimal path should be."
- Scott Berkun, Author
REMEMBER DESIRE PATHS

72
MOVE BEYOND SCREENS
“We keep moving forward, opening new doors, and doing new things, because we’re curious and curiosity keeps
leading us down new paths.” - Walt Disney.
https://www.wired.com/images_blogs/gadgetlab/2014/01/20140124-GOOGLE-GLASS-FRAMES-0018.jpg
http://opticsgamer.com/virtual-reality-gaming-future
https://stratechery.com/2016/snapchat-spectacles-and-the-future-of-wearables/
http://wallpapercave.com/wp/W3gW73i.jpg
http://www.old-computers.com/museum/photos/sirius_victor-s1_1.jpg
http://masterherald.com/wp-content/uploads/2015/03/apple-macbook.jpg

5 PILLARS OF DISTRIBUTED
COMMERCE
1.HUMAN CENTERED
2.DIGITAL + PHYSICAL
3.CONNECTED & CONTEXTUAL
4.SERVICE ORIENTED
5.FLEXIBLE

THANK YOU!
74
http://www.flickr.com/photos/baking_in_pearls/3960662314
CONNECT:starmer@gmail.com, @samanthastarmer, https://www.linkedin.com/in/samanthastarmer

75
http://www.flickr.com/photos/druclimb/3277540656/
QUESTIONS?

Preparing for Distributed Commerce

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