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1、1Guide to Next.2023RETAIL ISSUE 22Guide to Next.How retailers can create the most impact in the coming yearon their business and their shoppers.20233Guide to Next.TABLE OF CONTENTS04142433The Race for Retail Media NetworksSustainable Supply ChainThe Return to In-Store ShoppingRetail in Web 3.04Guide
2、 to Next.5Guide to Next.The Race for Retail Media NetworksAUTOMATION,PERSONALIZATION AND CLOSED-LOOP ACTIVATION:HOW TO STAND OUT IN THE RACE FOR RETAIL MEDIA NETWORKSRetailers have traditionally relied on product sales for most of their profits.Now,the drastic rise in e-commerce and industry profita
3、bility challenges has prompted them to turn digital real estate and customer data into ad sales,providing abnormally high returns for the industry.While traditional retail media has been around since the first brick-and-mortar retail stores,the significance of the term has changed in the last five y
4、ears to focus on digital retail media networks(RMNs),or retail data monetization.RMNs have already proliferated across the retail industry,but what will determine their future success,and which networks will come out on top?6Guide to Next.What is a retail media network?Retail media refers to any adv
5、ertising or media thats located near the pointof sale(i.e.,within a physical store or on an e-commerce platform).This could be a cardboard cutout in a grocery store or a“suggested product”ad on Amazon.Retail media networks are the digital platforms created by retailers that allow brands to purchase
6、ads directly through them,either on a retailers owned e-commerce website,in a physical retail store,or on a third-party like Facebook,Google or even connected TV,which is referred to as off-site advertising.While retail media networks could include physical ad placements,their growth areas right now
7、 are primarily digital,or at the intersection of digital and physical.7Guide to Next.How do retail media networks work?RMNs allow retailers to monetize their customer data through large scale advertising.From Walgreens to Sams Club to Ulta,many of the largest retailers have recently announced and ad
8、vanced their own retail media platform offerings.RMNs range from in-house platforms with unique self-service capabilities to private marketplaces where data from multiple retailers is uniquely available to specific advertisers.Many of these advertisers are already longstanding retailer partners or s
9、uppliers,but others are digital natives that can provide a net-new revenue stream.SELF-SERVICE RETAIL MEDIA NETWORKSSelf-service retail media networks allow brands to choose their own advertising campaign parametersincluding location and audience attributesbased on an internal pricing algorithm.For
10、example,Albertsons Media Collective created its own self-service offering,and Walmart Connects partnership with The Trade Desk allows it to do the same.“The self-service capability is a huge shift and change,”said Ray Velez,global chief technology officer at Publicis Sapient.“You dont have to meet w
11、ith the team.You dont have to make advertising consistent with a predefined set of activities for the year,but rather run campaigns much more fluidly.”According to Velez,over time,RMNs will continue to migrate toward more in-house and self-service models that aid both local and national advertisers.
12、Its more efficient for ad buyers as they get full control of their spendincluding closed-loop reportingwhile also allowing retailers to scale.8Guide to Next.Why are retail media networks growing?In the past,retailers were very hesitant to monetize their transaction and loyalty data,creating a gap in
13、 an advertisers ability to deterministically measure the efficacy of a campaign.The market shift away from cookie-based audiences corresponds with retailers increasing comfort with using their first-party data for advertising.This creates a unique opportunity for retailers to become publishers,direc
14、tly capturing more ad dollars through strategic data monetization via retail media networks.The result is a major uptick in the overall number of networks themselves,with several new networks created every year.And despite a slower growth in retail media ad spend in 2022,eMarketer is still predictin
15、g$80 billion dollars in spend for 2024.On many platforms,including Apples,marketers ability to track consumers via third-party cookies has already been diminished.In 2023,Google will follow in the footsteps of most other platforms.These changes create a higher emphasis on first-party customer databo
16、th for the retailer and the advertiserincreasing the value of a retailers data monetization opportunities for their owned and operated properties.Deterministic closed-loop measurement is the biggest perk driving the value of retail media networks compared to other digital advertising.RMNs can connec
17、t digital advertising campaigns to actual purchases at an individual level,which Google and Facebook cant inherently offer without the retailer sending their transaction files to those third parties.Another retail media network benefit is the retailers ability to bridge customer in-store shopping ha
18、bits with their online purchasing patterns,offering another unique differentiation from other channels.There are three things that are really driving this resurgence in retail media.The impact of third-party cookies and signal loss,the potential for closed-loop measurement and the linkage of online
19、and offline purchases with a digital persona.“”RAY VELEZ,GLOBAL CHIEF TECHNOLOGY OFFICER9Guide to Next.$13.39200222023$13.39$31.4953.3%53.4%31.4%26.2%19.3%17.2%14.9%13.4%10.1%Digital retail media ad spending%change%of digital ad spending$41.37$52.21NOTE:digital advertising that appears on
20、 websites or apps that are primarily engage in retail ecommerce or is bought through a retailers media network or demand-side platform(DSP);examples of websites or apps primarily engaged in retail media networks include Amazons DSP and Etsys Offsite Ads;includes ads purchased through retail media ne
21、tworks that may not appear on ecommerce sites or apps.Source”eMarketer,Oct 2021For example,as digital signage continues to grow within physical channels,retailers are striving to monetize those screens by using their first-party data assets.Many retailers are adding in-store digital signage as a med
22、ia network channel option to their offering,expanding their ability to speak to customers at critical decision moments.“How do I automate the sales of digital signage in my stores as part of a retail media network?How do I ensure consistent customer experiences in-store and online with signage in a
23、way thats intuitive for customers?These are questions clients will continue to ask,”Velez said.The future of retail media is no longer about defining the value or creation of retail media networksits about taking them to the next level through digital transformation.How will retailers make their net
24、works stand out in 2023 and beyond?US DIGITAL RETAIL MEDIA AD SPENDING,2019 2023NOTE:digital advertising that appears on websites or apps that are primarily engage in retail ecommerce or is bought through a retailers media network or demand-side platform(DSP);examples of websites or apps primarily e
25、ngaged in retail media networks include Amazons DSP and Etsys Offsite Ads;includes ads purchased through retail media networks that may not appear on ecommerce sites or apps.Source”eMarketer,Oct 202110Guide to Next.Facing a drop in brand loyalty after the emergence of COVID-19,consumer packaged good
26、s(CPG)brands are looking for solutions to stand out to customers in any way they can.While initially RMNs could stand out with the quantity of customers and traffic to their e-commerce sites,retail media quality is becoming the best way to lure in marketers.Retailers like Ulta and Sams Club,with str
27、ong legacy loyalty programs that store years of high-value customer purchase data,can offer advertisers information to personalize ad placement and content.“The digital ads that brands were buying are not as effective anymore,”Velez said.“Third-party cookies have depreciated,and its going to get wor
28、se.If you build a media network,the revenue gain is amplified by reversing signal loss and creating more signal through additional impression opportunities with customers.The increased impressions improve customer understanding and make loyalty more effective.”Using loyalty programs to create better
29、 value for retail media networksThe top six retail media trends for 202311Guide to Next.There are many different channels that retailers havent yet integrated into their networks,like digital signage,connected TV,Google,TikTok and many others.“Many retailers are prioritizing on-site because of the a
30、bility to maintain control over their first-party audience data,creative and destination.However,when retailers run an off-site advertising campaign that drives more traffic back to their owned and operated properties,it increases their monetizable inventory and adds more signal into their customer
31、identity graph,”Velez said.Walmart recently partnered with Roku to offer TV commerce,or shoppable ads,on their programs.Although this isnt yet a major channel for retail media networks,its a future avenue that other retailers will soon followbringing more data to personalize the customer experience.
32、“Consumers are getting more and more demanding.They dont have time to come in and browse around your site.They want things very specific to them,”said Sudip Mazumder,senior vice president and retail industry leadat Publicis Sapient.Expanding into larger retail media marketplacesOffering programmatic
33、sell-side retail media inventoryOften,RMNs have not yet connected on-site and off-site audiences to programmatic demand-side platforms(DSPs).However,as retailers are increasing their self-service platform capabilities,some are considering opening a portion of their retail media inventory to programm
34、atic buys.This means the process of buying ad space will be fully automated for some advertisers on most successful RMNs moving forward.According to Mazumder,the gold standard after self-service will be AI and machine learning algorithms that can determine the“next best step”for consumers through ad
35、 recommendations.So far,Amazons recommendation algorithm is the most advanced when it comes to personalization,and other successful retailers will continue to advance their platforms in this direction.Transitioning to retail media network platforms led in-houseFor over a decade,retailers outside of
36、Amazon have slowly transitioned to in-house models to create networks with staying power instead of relying on third-party companies to run their networks.This gives retailers more control and capability to scale their networks for the future.According to Velez,if you outsource your network to a thi
37、rd party,they dont build out your internal capabilities,and it might put you in a hole when it comes to advanced functionality.In the short term,outsourcing can help build,launch and operate retail media networks.As RMNs advance along the maturity model and become a core part of the business,retaile
38、rs can think about decoupling from their outsourced relationship to own the entire end-to-end solution.Successful in-house integrated technology stacks and organizations can ensure that your personalized offers are synchronized with media network impressions across all customer touchpoints.12Guide t
39、o Next.While in-store retail media has traditionally ranged from cardboard displays to video screens,RMNs are working to integrate interactive digital touchpoints to create a closed-loop omnichannel measurement system for networks.These touchpoints range from interactive kiosks,Wi-Fi tracking,smart
40、end caps or any type of physical ad unit that can connect to a customer profile.They allow retailers to track customer behavior and purchases through more interactive data exchanges and connect them to online purchases and profiles.“Solving for identity in-store is still a challenge that retailers a
41、re striving to overcome.Even being able to match credit cards or other attributes with identity at the physical point of sale makes a huge difference,”Velez said.Creating closed-loop measurements for retail media by adding in-store touchpoints13Guide to Next.Retail media networks are built on custom
42、er data,and retailers will continue to improve the quality ofthis data.This effort will increase the value of advertising real estate for CPG companies and other marketers that are using RMN data to connect with their customers.Retailers that dont already have consolidated CDPs with 360-degree custo
43、mer profiles will look to create them.Those that do will further integrate their data into a golden customer record and connect it to their retail media offerings.CDPs that have 360-degree customer profiles will have the data co-ops and technologies to future-proof against signal and cookie loss.Thi
44、s is also an important opportunity to look at the connection between customer data and modern privacy,progressive consent,and preference management technology.This is critical to continuing to hold customer trust and stay compliant with the changing privacy and regulatory landscape.The shift from ad
45、vertising to personalization in retail media RMNs will continue to evolve with trends through investing in their digital capabilities,especially as more networks enter a saturated market.So,whats the key for retailers to stand out among other networks?Personalization.RMNs that can get the right prod
46、uct in front of the right consumer at the right time will prove much more valuable to brand advertisers.“You might be selling your own branded products against advertiser products as well.So,whats important is thinking about your advertising as a personalized experience for the consumer,not just ad
47、units,”Velez said.Improving customer data quality through customer data platforms(CDPs)and customer 360 profiles14Guide to Next.15Guide to Next.Sustainable Supply ChainIn the past,supply chain sustainability was a“nice-to-have”for many retailers.Understanding the origins of every product and materia
48、l was certainly optimal but not always realistic or necessary.Today,mounting consumer interest and regulatory pressure around sustainability mean retailers are investing in technology to provide accurate supplier disclosures,reduce emissions and decrease waste.But the road to meeting consumer and re
49、gulatory standards isnt perfectly clear.There are many ways to achieve the elusive idea of“sustainability,”and each retailer has unique challenges regarding environmental,social and governance(ESG)goals.How are top retailers getting closer to their net-zero goals through supply chains in 2023?It sta
50、rts with increasing supply chain visibility.THE KEY TO RETAILERS SUSTAINABILITY GOALS16Guide to Next.What is supply chain visibility?Supply chain visibility is an accurate view of the entire supply chain from end to end.This means seeing where individual products and materials are in the supply chai
51、n journey and where they come from,including all external partners.17Guide to Next.Internal supply chain visibility vs.external supply chain visibility In the past,supply chain visibility focused on internal oversight of the end-to-end supply chain,but its now taken on a much broader meaning that in
52、cludes external stakeholders,like consumers.It starts with raw sourcing,and it doesnt end when the customer purchases the product.For example,what do consumers do with the packaging?If consumers return products,where do they end up?The entire lifespan of the product and packaging itself has become i
53、ncreasingly relevant to retailers and consumers alike.Increased visibility,especially real-time visibility,is a top concern for the retail industry in 2023.INTERNAL VISIBILITY THROUGH SUPPLY CHAIN CONTROL TOWERSPre-COVID,many retailers had less visibility over the supply chain journey,and major disr
54、uptions werent as frequent.Now,retailers have the impetus to gain greater control and knowledge of the entire supply chain through technology and overall digitization.IoT technologies like RFID tags,supply chain control towers,blockchains and data platforms have given retailers more visibility than
55、ever before.EXTERNAL SUPPLY CHAIN VISIBILITY THROUGH TRANSPARENCY TO CONSUMERSConsumers and regulatory bodies are also interested in the end-to-end supply chain,especially when it comes to sourcing.Customers want to know if the products theyre buying are coming from sustainable suppliers that practi
56、ce ethical labor standards.Not only are retailers focusing on tracking products in the first place,but they also have to figure out the best way to communicate that information to consumers.18Guide to Next.Why is supply chain visibility important now?From ESG targets to supply chain volatility,there
57、 are a variety of emerging external conditions creating pressure and incentive for retailers to gain end-to-end visibility in 2023.In the past year,U.S.state and federal governments have considered regulations related to supplier and carbon emissions disclosures for CPG companies and retailers.THE S
58、ECS CORPORATE CLIMATE RISK DISCLOSURE RULEIn March 2022,the U.S.Securities and Exchange Commission(SEC)proposed a rule requiring all publicly traded companies to disclose materials emissions made by a companys suppliers,detailed plans for meeting emissions offset pledges,and reliance on offsets.Whil
59、e this rule is not currently in effect,it could require emissions data from Tier 1 and Tier 2,3,4 or 5 suppliers.This means that not only would retailers need to have accurate supplier information,but emissions information as well.THE FASHION SUSTAINABILITY AND SOCIAL ACCOUNTABILITY ACTIn January 20
60、22,the New York State Senate unveiled an act requiring fashion retailers or manufacturers doing business in the state to conduct“good faith”supply chain mapping and disclose at least 50%of their suppliers across all tiers of production.The act would also require these businesses to publicly set and
61、track ESG targets,including employee wages,greenhouse gas emissions,and the use of recycled materials.These proposals represent a growing push for retailers to verify ethical and sustainable labor practices across the boardand a need for them to pick up the pace.OF FASHION FIRMS CURRENTLY NAME THEIR
62、 SUPPLIERS PUBLICLY SINCE JUNE 2022.21%only19Guide to Next.Customers and companies want to know where products are coming fromand if theyre being produced using non-standard practices.Theres an element of react or act before its too late.“”SATYENDRA PAL,GLOBAL OMNI FULFILLMENT PRACTICE LEAD AT PUBLI
63、CIS SAPIENTRETAILER NET-ZERO EMISSIONS GOALSMany retailers are chasing ambitious“net-zero”carbon emissions goals through lowering carbon emissions and buying offset credits by 2030,2040 or 2050.According to the Science-Based Targets initiative(SBTi),45 major global retailers have committed to a net-
64、zero target,up from just 13 in 2021.Other retailers are focused on different sustainability targets,such as reducing greenhouse gas(GHG)emissions by a certain percentage within a set timeframe.Fifty-two retailers have committed to non-net-zero targets as of 2022,up from 40 in 2021.However,only a sma
65、ll portion of retailers are on track to meet those goals.The rest are looking for tangible ways to make progress in the coming year.CONSUMER DEMAND FOR SUSTAINABLE SOURCINGConsumers are growing wary of“greenwashing,”empty promises or green labels with no action behind them.They want to know where pr
66、oducts are coming from and how they can be reused or recycled to reduce waste.Research shows that consumers do care about ethical sourcing and would even pay more for it.In the next year,its time for companies to combine innovation,sustainability,and profit goals,starting with supply chain visibilit
67、y and transparency with consumers.20Guide to Next.Three ways retailers will improve supply chain visibilityin 2023 Retailers will continue to make strides in supply chain visibility this year through technology and transparency alike.While significant near-term production changes are overwhelming,ef
68、forts to analyze and disclose supply chain practices can make an arguably greater impact.21Guide to Next.With growing regulatory and consumer concern toward reporting emissions,retailers are looking past their own ESGs and into their suppliers sustainability.Both blockchain and cryptocurrency techno
69、logy are growing tools that can power end-to-end visibility,by allowing external parties,like vendors and suppliers,to plug in data.“Blockchain is essentially a decentralized trust agent,”said Erid Haderaj,Product Manager at Publicis Sapient and Web3 consultant.“You can,in real time,track your data
70、and ensure theres no kind of misconduct or malicious actors,because once its on the blockchain,it cant be tampered with.”For example,in a grocery supply chain,farmers,shipping agents,packers and retailers could input quality product data into a cloud-based system,offering more protection over food p
71、erishability and helping avoid food waste.Supplier transparency through blockchainand cryptocurrencyWhile many people think that cryptocurrency needs a monetary value,it can also be used to tokenize physical products on the blockchain.Every single product moving through the supply chain could be att
72、ached to certain digital tokens.“Retailers can create a digital twin of their inventoryor some type of APIthat can grab product information and transfer it into a Web 3.0 environment,”said AJ Dalal,Managing Director,Data&Web3 Strategy at Publicis Sapient.“Using a cryptocurrency to tokenize and move
73、things across the supply chain allows you to have real-time inventory updates.”In the future,the supply chain verification process could become even more automaticthrough geospatial information using satellite imagery of a particular deforestation area,or the provenance of raw materials,which would
74、all be represented in these digital tokens.22Guide to Next.A key part of the end-to-end supply chain is what happens to the products when theyre sitting on shelves.Retailers were weighed down by excess inventory in 2022 and are looking for permanent solutions to better forecast demand in 2023.Not on
75、ly is food and other product waste unsustainable,but its also not profitable.Artificial intelligence and machine learning for demand forecastingArtificial intelligence(AI)will be a crucial element of accurate demand forecasting for retailers in the future,and more and more retailers will begin to in
76、vest once theyve implemented better tracking across the supply chain.Walmart,for example,has invested in technology to automatically scan and count stock as soon as it arrives at consolidation centers.“In the past,retailers had supply chain visibility from external vendors,purchase orders and more,”
77、Pal said.“But if you only care about when things are landing,you only know if something is going to be delayed when its actually delayed.And by then,its too late.”The sooner retailers invest in this technology,the better the algorithms will become for the futureand the more sustainable supply chains
78、 will become.23Guide to Next.In 2023,circular supply chains will become the normstarting with consumer transparency.A circular supply chain ends with recycling or reusing a product instead of throwing it away.This can happen through the retailer,through the consumer or through a joint effort.Compani
79、es can build better relationships with their consumers by telling“product stories”and involving their consumers in the entire journey of the productfrom suppliers to sustainable disposal.Many retailers have pledged to design their own branded products with sustainable packaging as part of a circular
80、 economy.While the shift in packaging design is crucial,its also important that retailers communicate recycling options to consumers in a meaningful way.“Companies can use blockchain to reward customers for certain actions,”Haderaj said.“A retailers app can verify that a product has been recycled by
81、 using AI to analyze a picture that a customer submits.For example,for every five bottles a customer recycles,they could receive a token for a 10%discount on the next product.By employing blockchain technology,the retailer can easily see how many tokens each person holds in real time.”Retailers can
82、use this technology to collect more meaningful data on where products go at the end of their supply chainsand work with customers to become more sustainable together and remain relevant through the entire customer journey.While visibility and transparency alone will not immediately reduce carbon emi
83、ssions next year,they are essential in determining future production changes that will achieve ESG goals.Consumer transparency and involvement with circular supply chains24Guide to Next.25Guide to Next.The Return to In-Store ShoppingTHE RETURN TO IN-STORE SHOPPING:HOW TECHNOLOGY IS FUELING CUSTOMER
84、EXPERIENCEToday,a consumer has access to an infinite number of products right at their fingertips.With a computer or phone,they can shop for hours without leaving home,so why would they?Interestingly enough,the end of COVID-19 lockdowns led to a departure from couch surfing and return to in-store sh
85、opping.According to Publicis Sapient research,almost nine in 10(88%)of consumers prefer to shop in-store for some items.The top three customer reasons for shopping in-store instead of online are to browse products,touch products and try on clothing.But one thing is clear:Now that online shopping has
86、 brought new expectations of convenience,the next era of in-store retail has a higher standard to meet.A proliferation of new commerce channels has prompted many retailers to go back to the drawing board and re-evaluate what the original in-store channel should look like.“You need to create somethin
87、g that engages customers in a new way in order to draw them into the store when they could just buy online,”said Sara Alloy,North America Retail Experience Industry Lead at Publicis Sapient.“Retailers are going to have to think bigger and consider whats important to customers now to engage them and
88、give them a reason to shop in-person.”How will top retailers meet customers appetites for the in-store experience?Behind the flashy pop-ups and buzzworthy concepts is a strong foundation of interconnected technology.26Guide to Next.At the end of the day,customers still enjoy going to the storethey j
89、ust have higher expectations.Certain well-accepted frustrations of the past,like long checkout lines,confusing store layouts or carpets from the 1980s may be reason enough to find a new retailer or switch to Amazon.62%of customers say they would stop shopping at a retailer if the experience is unple
90、asant.Often,these best-in-class store experiences do one of two things:create efficiency or create engagement.Brands recognize they are competing on experience.When a customer has a really good in-store shopping experience with a brand,that sets the bar higher for everywhere else they shop.“”JACKIE
91、WALKER,RETAIL EXPERIENCE STRATEGY LEAD PUBLICIS SAPIENTWhat will a best-in-class store experience look like in 2023?27Guide to Next.MAKING THE IN-STORE RETAIL EXPERIENCE MORE EFFICIENT Customers are now browsing,buying,picking up and returning merchandise through various interaction points,and their
92、 choices are often made based on what is most convenient in that particular circumstance.Targets drive-up pickup option is seamless for customers and has been scaled to all their store locations.Customers can rely on it,and it makes their shopping journey simpler.A key bottleneck point when shopping
93、 brick-and-mortar is the point of sale,and with e-commerce,customers have gotten used to a faster and easier checkout.At most grocery stores today,customers or checkout clerks still have to scan each item individuallyand for produce,even enter in each product code themselves.Many grocery retailers a
94、re testing a checkout-free system that would allow customers to just walk out or scan their entire cart at once,providing an experience almost as seamless as hitting the“Deliver”button after grocery shopping online.MAKING THE IN-STORE RETAIL EXPERIENCE MORE ENGAGING There are also many opportunities
95、 for retail stores to up their game on engagement compared to e-commerce shopping.In the past,stores have relied on associate-led or conversation-based engagement strategies.Today,with staff shortages,many stores are turning toward more technology-based experiences to connect with customers in-store
96、.According to Publicis Sapient research,76%of customers engage with retailer apps in-store to locate products and look for reviews,deals or clothing fit information.For example,Home Depots mobile app allows users to see store maps to navigate to different items,scan product barcodes to read product
97、reviews,take photos of items in their home that they need to replace and reverse image search to find the same products in-store.The app also integrates AR,so customers can visualize how certain furniture items would fit in their own space.Wawa is another retailer thats mastered in-store engagement
98、with its ordering kiosks.The kiosks allow customers to quickly and easily browse through menu options to build custom hoagies,get prompted to add certain items to their order and see seasonal promotions.The PetSmart app goes even further through personalized content and an in-app game called“Treat T
99、rail”that allows users to rack up coupons and rewards.After uploading personal pet information,the app curates customized checklists and articlesbased on the type of pet to deeply engage users.Some brands have looked to larger-scale experiential installations in physical retail.And while some of the
100、se experimental flagship store experiences can be incredibly engaging for customers,most of them are difficultto scale.“When retailers are thinking about activations in their stores,they have to consider how to impact the largest number of customers possible.It really has to be a deliberate choice t
101、o heavily invest in experiences that can only ever scale to a small subset of stores.”JACKIE WALKER,RETAIL EXPERIENCE STRATEGY LEAD PUBLICIS SAPIENT28Guide to Next.CONNECTING PHYSICAL AND DIGITAL SHOPPING EXPERIENCES TOGETHER The best retail in-store experiences are both efficient and engaging when
102、e-commerce and brick-and-mortar blend together.This means that at each stage of the customer journey,whether thats browsing on social media,entering a retail store or shopping on a retailers website,customers have a blend of personalized shopping offers and experiences that are fully cohesive.One pi
103、ece of this is consistent branding across channelsfrom the website,to the app,to the print marketing and merchandising in the store.Keeping consistent,authentic branding in-store and online creates a better customer experience.This relates to marketing offers,too.Customers that normally shop at a re
104、tailer online still expect to be known as customers when they enter a new channel,like the store.The key to building loyalty for retailers is matching experiences across channels to amplify the strengths of each and unify the brand.RFID technology embedded in loyalty cards,like store credit cards,re
105、tains customer information and allows retailers to identify when a customer is in a store and prompt in-store kiosks to display relevant ads.“The longer we can keep customers engaged with a brand,the more likely it becomes that the customer will not only convert once but will become a repeat custome
106、r,”Alloy said.“Retailers have improved tactics to re-engage customers who abandon carts online,but there is more work to be done to extend high-touch customer service in an automated and scalable way when customers are engaging with retailers through multiple channels.”29Guide to Next.Five areas of
107、the in-store experience that deliver the most valueFrom store layout,to point of sale,to checkout,retailers are working to modernize their technology and improve every touchpoint for the customer.There are five key interaction points where retailers can re-think standard methods of operating in a ne
108、w era of in-store shoppingand which will bring the most value:30Guide to Next.The rise in popularity of e-commerce has provided an interesting view into customer shopping behavior and needs that retailers have never had access to.While certain aspects of online shopping dont need to be replicated in
109、 an in-store setting,others are worth experimenting with.For example,many customers use their online shopping carts as virtual wish lists.They will fill a cart with items,basically bookmarking them to go sift through them later to determine which items theyll actually purchase.“When customers are sh
110、opping in-store and physically loading a shopping cart,it is very different than online“Add to Cart”behavior,”Alloy said.“In an online cart,its a bit easier to compare and discard itemsand watch the order totalthan it is with physical merchandise.”Replicating digital shopping behaviorAnother example
111、 of this customer behavior is influencer interaction and styling when it comes to clothing.Online,customers can easily see different outfit options for certain products styled by different models and influencers.In stores,retailers are still relying on mannequins to show off products.Retailers have
112、the opportunity to use mobile apps,as well as cart or dressing room design,to enable customers to replicate this online behavior in-store.By connecting a mobile app to in-store inventory,customers could build their“cart”on their mobile phone and even get a fitting room started,which would allow them
113、 to see their cost total,save their cart history and see clothing on real body types.31Guide to Next.Digital product informationSmart inventoryIn the age of the internet,customers are used to being more informed than ever before.E-commerce sites,online forums and news articles alike offer customer r
114、eviews and feedback to factor into purchase decisions.While in-store shopping relies on instant gratification as a sales tactic,many customers still look for a higher level of product information and social proof.Retailers can use different technology pieces such as digital kiosks,QR codes or even A
115、R mobile apps to provide product details.Smart,or intelligent,inventory is an often-overlooked aspect of the back-end store experience that becomes really important at the intersection of physical and digital shopping.Today,many customers want to look at real-time e-commerce and in-store inventory a
116、t the same time.In fact,72%of customers say theyve checked store inventory online before visiting to ensure the location has what they want.One of the biggest advantages of in-store shopping is speed and immediacy,so a customer might choose to come to a store because theyre looking for a specific pr
117、oduct right then and there,and they dont have to pay for shipping.“How annoying is it when you as a customer look on the website,see you can order something for pickup,and then two hours later,the retailer emails you canceling your order because they didnt actually have the item at the store?”Walker
118、 said.Also,many customers will make an additional,unplanned purchase while they are in the store to pick up their buy online,pick up in-store(BOPIS)order,and the same is true of their online shopping habits.While 46%of customers shop with something specific in mind and only buy that item,36%will get
119、 inspired to purchase more while shopping.OF CUSTOMERS SAY THEYVE CHECKED STORE INVENTORY ONLINE BEFORE VISITING LOCATION.72%32Guide to Next.Sales associate interactionsMany products,like running shoes or sports equipment,could be sold better with an explanation from a human expert.However,modern te
120、chnology has the ability to elevate those interactions for both the sales associate and the customer.“We have reached a point where we can make it much easier for employees to better serve customers with digital tools,”Alloy said.“Armed with the right data,employees can have much better interactions
121、 with customers and create far more value.”Some retailers are integrating tablets into the sales experience,providing sales associates with key customer information.This not only helps customers make more informed decisions,but also makes it easier for any sales associate to continue a conversation
122、with a customer based on previous interactions,especially as retailers struggle with staffing.Online shopping has much higher return rates than in-store shopping,and many customers are taking those returns in-store,creating disruption.While many retailers are improving the in-store return experience
123、 for customers,its still a key area thats ripe for change.“The interplay between the online experience and the store experience when it comes to buy online,pick up in-store(BOPIS)and buy online,return in-store(BORIS)still has a lot of room for improvement,especially when combined with the rise of in
124、-store traffic and staffing shortages,”Walker said.“There is more work for employees to deal with the needs of customers coming in from online,and the tools and processes in place dont make those interactions seamless,which can have a negative effect on experience for all customers in-store.”At the
125、very least,its key for retailers to allow customers to return products to stores even if theyve purchased them online,with no added cost,and vice versa.Over 70%of customers say theyd be likely to stop shopping at a retailer that charged for shipping back return items.On top of that,customers no long
126、er expect to wait in a long line for returns.Contactless returns or quick drop-offs are better alternatives.As we look to the future of brick-and-mortar retail,there is more value to be found at the intersection of physical and digital.Many experiences are better in-store,and retailers need to embra
127、ce the natural propensity of customers to browse,experience products tangibly and be inspired in ways that just arent possible when shopping online.There is also plenty of work to be done to improve the store associate experience,which directly impacts the ability to better serve customers.“Its not
128、really about thinking of the next big,cool thing,”says Walker.“Its about application at scale and better meeting customer needs.”Returns optimization33Guide to Next.34Guide to Next.Retail in Web 3.0WHAT DOES RETAIL LOOK LIKE IN WEB 3.0?HOW RETAILERS ARE APPROACHING NFTs,VIRTUAL REALITY AND AIAs we h
129、ead into 2023,some retailers are wondering:Is the metaverse/Web 3.0 hype dying down?When Mark Zuckerberg announced Facebooks name change to“Meta”and shared his vision for a“metaverse,”the buzz and excitement around virtual societies and decentralized technology dominated industry conversations.Now,a
130、s most consumers still have yet to explore the space,the initial hype is waning.According to recent Publicis Sapient research,about half of U.S.consumers ages 18 34 have accessed the metaverse,but nearly half of the younger demographic is still unfamiliar with the concept.However,that doesnt mean th
131、at investment or business opportunities are dying with it.In fact,now is the time that the biggest players in the metaverse and Web 3.0 space are testing virtual experiences,improving baseline technology and building talent to dominate the future internet.35Guide to Next.The metaverse of the present
132、 is not the metaverse of the futureAccording to AJ Dalal,Managing Director,Data&Web3 Strategy at Publicis Sapient,in five to seven years,the metaverse will not be tied to a specific world,like Decentraland or Roblox.Instead,the metaverse will be an extension of any experience layer.Any website or di
133、gital experience will have an augmented reality/virtual reality(AR/VR)component and will exist on the new Web 3.0 iteration of internet technology.“Right now,we are seeing the first wave of innovationof companies risking it all to solve a problem,”Dalal said.“The death of this wave,like the death of
134、 AOL or MyVista,for example,opens the door for the second wave,where innovation will have sustainable growth.”What does this mean for retailers?Rather than investing too heavily in any one metaverse or blockchain platform,its time to test different experiences,evaluate Web 3.0 applications and look
135、for friction points in their customer experience that these applications could solve.Retailers can expect to grow exponentially in three key areas in 2023 when it comes to Web 3.0 and the metaverse:non-fungible tokens(NFTs),AR/VR and artificial intelligence/machine learning(AI/ML).Its time to test d
136、ifferent experiences,evaluate Web 3.0 applications and look for friction points in their customer experience that these applications could solve.36Guide to Next.What does Web 3.0 mean for retailers?The third era of the web,or Web 3.0,doesnt currently exist today and,in fact,is still just an idea of
137、what a different,improved internet could look like.While many experts have thoughts on exactly what problems exist with shopping today that could be fixed in Web 3.0,broad solutions have yet to be actualized.Most ideas for Web 3.0 are based on two principles:ownership and decentralized authority.Tod
138、ay,digital assets,as well as personal data,are owned by large media and tech companies.While these companies rely on selling this data to advertisers,creators and consumers alike who contribute the data have little say in how any of this system works.In a decentralized model,they would take more con
139、trol,or ownership,of this data.Similarly,media conglomerates have become“walled gardens,”meaning that they dont interact with each other,creating friction between different siloed monopolies.Many experts currently building Web 3.0 are attempting to use NFTs,blockchains and AI/ML to decrease this fri
140、ction and spread out ownership and authority among users.37Guide to Next.What could Web 3.0 solve for retail?Shopping will likely become more seamless for shoppers,making products more findable.For example,internet searchability could be improved in Web 3.0 using blockchain-based search engines.Curr
141、ently,when a consumer starts a product search on Amazon and doesnt find what theyre looking for,they have to start the same product search over again on Google Shopping or W,for example.In the future,its possible that consumers could save their searches and carry them through the different retailer
142、websites theyre browsing.In fact,20%of consumers predict theyll soon be able to take their profiles and data between metaverse games,according to Publicis Sapient research.Another potential application of Web 3.0 could improve the management of customer data.Content creators and casual users alike a
143、rent currently compensated for videos or personal data by social media networksat least not in a meaningful way.In addition,64%of consumers also worry that their data and information will be collected if they use the metaverse.One proposition for Web 3.0 social networks is the ability to choose when
144、 and how users share their data with companies in exchange for some sort of value,including payment for content creators.However,Web 3.0 is still just a nebulous collection of these specific use cases,nascent technology and idealistic projections.Retailers can find it difficult to determine exactly
145、how their business should change and how to prepare for it.64%OF CONSUMERS WORRY THAT THEIR DATA AND INFORMATION WILL BE COLLECTED IF THEY USE THE METAVERSE.OF CONSUMERS PREDICT THEYLL SOON BE ABLE TO TAKE THEIR PROFILES AND DATA BETWEEN METAVERSE GAMES20%38Guide to Next.How can retailers visualize
146、the future Web 3.0?One way to think about the future Web 3.0 is a comparison with the creation of the iPhone and its subsequent influence on society.Just as the Nokia of the past doesnt compare to the iPhone of the present,the future of shopping will look quite different than the emergent Web3 use c
147、ases that retailers are experimenting with today.But that doesnt mean that experimentation and investments arent important.Retailers can prepare for several aspects of the future of shopping that will also see significant growth in the next year.“In that announcement,Steve Jobs explained how the iPh
148、one basically took what 10 devices could do and combined it into one,”Dalal said.“Think of everything that the iPhone has unlocked in our lives over the last two decades.It impacts how we do everything.What we are exploring right now with Web3 could be comparable to that innovation.”39Guide to Next.
149、Currently,only a small percentage of the population owns NFTs.NFTs became popular through specific digital art and currency uses,which havent yet translated to broader applications.Most people arent paying for goods and services with Bitcoin or Ethereum either,and they havent purchased tokenized col
150、lectibles.Only 14%of U.S.consumers ages 1834 own NFTs,and the percentage lowers to 7%for the general population,according to Publicis Sapient research.While retailers should still prepare to accept cryptocurrency for purchases and develop digital tokens for physical products,NFTs will become much mo
151、re useful in loyalty programs and inventory management.In fact,one quarter of consumers in the same study believe that brands will soon embed loyalty points and rewards within NFTs.Loyalty programs are a major effort carried out by most retailers.Loyalty points exist as a debt as owed products or se
152、rvices to customers.Currently,tracking and securely validating loyalty points and rewards Consumers and brands have realized that NFTs need to offer some type of value proposition.What are customers currently engaging with that could be improved with Web3?“”AJ DALAL,MANAGING DIRECTOR,DATA&WEB3 STRAT
153、EGY across e-commerce and physical stores in real time can be quite difficult.This is a space where blockchain technology would be especially helpful,and many retailers are starting to jump in.Starbucks,for example,has one of the worlds largest and most successful loyalty programs.The chain recently
154、 announced its foray into NFTs through its loyalty programs,where members will be able to redeem NFTs for special products and experiences.However,its important to note that using NFTs to build out a loyalty program cant solve every problem.“If your loyalty program is not delivering A+results,what w
155、ill change with Web3 technology that will deliver A+results?And is that underpinned by a proper strategy and utility?”Dalal said.of consumers believe that brands will soon embed loyalty points and rewards within NFTs.How the use of NFTs will change for retail25%40Guide to Next.How AR/VR wearables wi
156、ll developAnother Web3 space that should see significant growth over the next year is AR/VR,which will be especially relevant to the retail shopping experience.Two of the biggest obstacles to the wide-scale adoption of this technology are the hardware and experience,which still arent up to par with
157、many consumer standards.Often NFTs are also gaining traction in inventory management.With NFTs,retailers can code all physical products as digital twins in Web 3.0,tying online inventory with warehouse inventory and cross-store inventory to see where physical products are at all times.Before diving
158、in,retailers should carefully consider which blockchain technology to use.Because Web 3.0 technology is still in its early days,its possible certain companies will develop faster and end up dominating others.Brands should test multiple blockchains by setting objectives and testing performance before
159、 choosing a blockchain and fully investing in it.metaverse worlds and AR experiences can be glitchy with poor image quality.Most VR headsets are also a bit too bulky for daily wear.Luckily,the technology is drastically improving.Apple is rumored to release its first VR headset next year,and Sonys PS
160、VR 2 is heading down the pipeline as well.As this hardware and its accompanying experiences improve,AR and VR can begin to influence how customers purchase products.20%of U.S.consumers between ages 18 and 34 currently own a virtual reality device,and 40%said theyd be likely to purchase one within th
161、e next year,according to Publicis Sapient research.Some retailers,like luxury clothing house Hugo Boss,have already started to dive in.The company is testing AR to create digital mannequins with customers exact body measurements to try on clothing virtually.Amazon has launched a similar feature for
162、shoe try-on,where customers can use their phone camera to see how a pair of shoes would look on their feet from different angles.This use is also applicable to furniture.About 40%of U.S.consumers between ages 18 and 34 are interested in trying on clothes in the metaverse and visualizing other 3D pro
163、ducts before making purchases.“We are at the beginning of the journey in mass producing AR and VR hardware at affordable prices,which means retailers should prepare to double down on this technology,”Dalal said.While the technology isnt fully optimized,retailers can experiment with app features and
164、other experiences to see what works best and how customers engage.This will help them prepare for a future where AR/VR is the norm in a shopping experience.41Guide to Next.While much of the work dedicated to improving the web experience is focused on Web 3.0,the use of AI/ML has the ability to drast
165、ically impact the current state of Web2,and its something retailers should invest in moving forward.Before Web3 becomes a reality,well likely experience a hybrid version of Web2,like Web2.5,and AI/ML will likely be able to take on work faster with limited resources.One of the biggest use cases for A
166、I already is targeted advertising,where automation is already efficiently powering thousands of minor decisions to personalize ad experiences online.Other uses for AI are currently still in their beginning stages but are steadily improving.For example,while most advanced AI-powered chatbots can hold
167、 conversations with customers,they still havent reached the level of service of a human employee.Similarly,AI writers or content generators can help optimize content and even generate copy for them in some instances.Still,these chatbots cant yet create longer stories or articles on their own.How AI/
168、ML will impact the future of Web 2.0While most retailers shouldnt rely on AI to generate photos,text or hold all conversations with customers,the technology will likely improve enough to be able to take over the majority of these responsibilities in the future.However,many retailers and tech startup
169、s have already started to experiment in the AI space with personalized shopping.Pinterest acquired a shopping app called THE YES,which allows customers to browse through pieces by swiping right or left while a supporting AI learns customer preferences and curates better selections.Rather than creati
170、ng increasingly complex filters to facilitate the shopping experience,retailers could rely on AI to create intelligent shopping algorithms to deliver individualized experiences.According to Dalal,while AI is helping to support functions like this in Web 2.0,much of the workforce could then transitio
171、n to building out new shopping experiences fit for Web 3.0.“There are a lot of AI applications that can be used to foster growth in Web3 and maintain the existing world of Web2.People talk about how their jobs will be at risk,but thats not really the case.Your job may just shift to focus on Web3,and
172、 AI/ML can continue content for Web2,”Dalal said.Retailers can embrace this innovation by testing and experimenting with NFTs,AR/VR,metaverse experiences and AI/ML today while still knowing that these technologies are in their infancy and will continue to evolve.42Guide to Next.Just as e-commerce an
173、d Web 2.0 have transformed the retail industry,Web 3.0 is poised to do the same more excitingly.While many experts are focused on the initial hypeand even fearsurrounding the buzzword,a significant opportunity to make the shopping experience better lies ahead.“Its like rolling a snowball down Mount
174、Everest.Shoppers wont be limited to a phone,laptop or other device,and we can take digital shopping across all of our senses,including touch,hearing and sight.This is a monumental opportunity in our world,”Dalal said.Retailers can embrace this innovation by testing and experimenting with NFTs,AR/VR,
175、metaverse experiences and AI/ML today while still knowing that these technologies are in their infancy and will continue to evolve.Whats most important for retailers is understanding the current limitations of Web3 technology yet still choosing to solve a business use case and build a new architectu
176、re around it.Preparing your company for Web 3.043Guide to Next.Next starts now.To get started,please visit Or contact us anytime:SUDIP MAZUMDERRetail Industry Lead,North America GUY ELLIOTTRetail Industry Lead,EMEA&APAC 44Guide to Next.Publicis Sapient is a digital business transformation partner he
177、lping retailers like Carrefour,Pandora and Falabella get digitally enabled,both in the way they work and the way they serve their customers.As digital pioneers with 20,000 people and 50+offices around the globe,our experience in technology,data sciences,consulting and customer obsession enables us to evolve our clients businesses with products and services that put shoppers first.2022 Publicis Sapient Corporation