FT Future of Retail summit


you’ve done that, then customers will either go home and order it online, or buy it then and there in the store, and I’m ok with either of those two things.” He also noted that the advantage of the


bricks and mortar offering is in upselling, and delivering a happier customer with future- proofed technology. In a price-senstive market, Dixons Carphone


Included on the Future of Retail panel was Dixons Carphone chief executive Sebastian James, who believes customers are more willing to pay for after-sales services like installation


“We work with 5,000 small businesses, dealing


worldwide,” Simon explained. “We take traditional values in a modern way, applying scale benefits to smaller companies. The buy, move, sell model has changed. However, we have tried physical sites, to have that experiential element. Telling the story of our partners is an important part of what we do. People don’t buy what you do, they buy why you do it.” The Dandy Lab has experimented with trialling


retail technology such as mobile payment apps and loyalty schemes, trying to understand what customers are doing in store and what new technologies can be used to improve sales. Aimia group chief operating officer David


Johnson discussed the loyalty analytics company’s findings from its consumer study, as well as drivers of customer loyalty. While 67% of customers surveyed feel retailers use data well, more consumers understand the value of their data, and it needs to be used to improve their experience, as complicated, disconnected experiences lead to discontent. He noted that there is a potentially big prize to be gained when using promotions in store in real time, but warned: “When dealing with customers in real time connections, when you get it wrong it’s glaringly obvious.” Google UK country director Martijn Bertisen


charted the changes to the digital world, with consumers shifting from ‘going online’ to ‘living online’, and the pressure to keep up is intense. He noted that it is key to create a fast and seamless mobile experience for customers, but with machine learning and artificial intelligence continuing to drive change, he predicts a ‘mobile first’ approach to become ‘AI first’. He added: “The big mistake in retail is


saying mobile doesn’t connect to sales – you’re just not seeing the value. Cross device behaviour is increasingly important to understand, people search and shop across multiple devices. Change shouldn’t be scary; there is a wealth of opportunity.” The Modern Retailer panel, focused on


‘reorganising for success’ featured AlixPartners consumer and retail practice senior director Nick Neil-Boss and Virgin Megastore Middle East and North Africa president Nisreen Shocair.


34 | www.innovativeelectricalretailing.co.uk


Nick commented: “It is no use spamming users with generic ads online – there is a better way to do it. We have consumer information, so we have a responsibility to use signals in a powerful and useful way.” Nisreen commented: “70% of our customers


are under 29. We see customers moving across channels; I don’t think customers shopping just one channel exists any more. We have lots coming into store for information; we need to be available to service consumers when and where they want.” The panel also highlighted the opportunity


that ‘local digital’ or geopostioning can drive people in store to take advantage of the asset that is staff, and that smart capabilities are now available to much smaller companies than ever before. Good Growth chief executive James Hammersley commented on improving profitability in omnichannel. He said: “Online, you have lots of data – but on what basis do you make a decision? Start with commercial intent. If you use analytics, trust the data.” He added: “Customer data tells you why


customers don’t buy – you can see when and why the purchase failure happened. People do come with an intent to buy; the key element is conversion, not additional traffic. Follow your customers’ agenda to improve your service.”


Making a connection The closing Future of Retail panel featured Dixons Carphone group chief executive Sebastian James, New Look chief executive Anders Kristiansen and Move Now Luxury Brokers & Advisors managing director Philipp Gajzer. Seb James highlighted that where the final sale is made is not important, as long as you as a retailer are there to service it. He explained: “If you’re going to buy a TV, and you’re going to spend a month’s wages on it and you’re going to live with it for five years, the totally rational way to buy is to start online; read reviews, see prices, chat to your partner. Then you want to go into store and have a conversation with someone who knows what they’re talking about. You want to look at it, feel the remote control and do all of those things. Only when


now matches Amazon pricing, and shows other available prices in the market. “All of our colleagues use a price compare app,” Seb commented. “We show everybody’s prices. Later this year, on our own website we will tell you everybody’s price. I think we’re the first retailer to do that. For good or bad, we will tell you if we’re cheaper or more expensive. Interestingly, when we started doing this, we found conversion rates go up, even if we’re a little bit more expensive. Even if we’re five quid more expensive, our conversion rate goes up, and I think it’s because customers come to our site and their fear is not that we’re five quid more, but that we’re fifty quid more, and then they go to Amazon or wherever. We think we’re getting around it with this radical transparency.” He also said that stores should be properly incentivised so they don’t compete against their own online catchment. “We attribute all online purchases in a catchment to the relevant store, regardless of whether the consumer ever set foot there,” he added. Service is a growing consideration for many


customers, he continued. “Customers might not be willing to pay for delivery, but I think customers recognise that if you come and install something, make it work, show them how it works, set it up, test it, they see these as very valuable services and we’re seeing customers more and more willing and able to pay for that,” he explained. “What we love is a complex installation, so


gas, or integrated kitchens – anything that’s complicated we love, because Amazon can’t do it.” 40% of Dixons’ online sales are now click and


collect, and with the service rolling out more widely Seb expects that figure to increase. “That click and collect proposition could become very powerful,” he said. “Where customers do go into click and collect, we always have that conversation which allows us often to cancel that order and order the next one up, certainly to sell more accessories and more services.” The store is certainly far from dead, even in a


world of growing online figures. “We have much more data on our customers


online, but it’s a cold knowledge,” Seb said. “When you have a conversation with a customer in store you’re getting a really more of a sense of who they are as an individual and what really matters to them. I think one of the problems with online is that it’s really hard to create that real warm, resonant, emotional link. In store you can make a real connection very quickly.”


October 2016


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