The Digital Store: Transforming The Shopping Experience with Real-Time Offers and Content

The Digital Store: Transforming the Shopping Experience with Real-Time,

Relevant Offers and Content

Ken Fenyo Former CEO at YOU Technology and

VP Loyalty & Digital at The Kroger Co.

•  Key trends

•  How digital is reshaping the shopping experience

•  Keys to success

Today’s Discussion

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Source: Deloitte; US Census Bureau

$700 billion in mobile-influenced retail sales by 2016

Digital is Transforming Shopping

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Source: Industry analysis

1 billion+ in 2013 digital coupon downloads


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35%+ of downloads from mobile phones


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95%+ of downloads from retailer sites/apps


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Source: Progressive Grocer; industry analysis

9 of 10 of the PG Super 50 now offering or

testing digital coupons


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•  Key trends




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Delivering Digital Coupons

Kroger Digital Coupon Center

•  Integrated multi-channel communication

•  200+ aggregated national and shopper marketing coupons

•  Frequent digital merchandising events

•  Mobile app top 2% of iOS downloads

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•  Digital coupon to support in-store event

•  Coupon with QR code featured on front page of circular and store tags

•  Over 50% redemption rate with ~20% of downloads via scan of QR code

Enhancing Traditional In-Store Events

ShopRite Milano Cookie Event

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•  Personalized deals/pricing

•  Digital coupons and circular items sorted by relevance

•  Frequent “themed” emails

•  6 million registered users by end 2013, ~50% of active customer base

Personalizing Prices and Offers

Safeway Just For U

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Developing Next Gen CRM Programs

Target Cartwheel

•  In-store digital coupons

•  Social focus

•  Single mobile barcode to redeem all offers

•  Large pool of % off offers across the store

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Creating New Shopping Tools

Walmart Scan & Go

•  Scan barcodes with mobile phone to add to cart and pay via self-checkout lane

•  Digital coupon integration

•  E-commerce ordering directly from the app

•  Digital receipts

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Engaging Shoppers in Store

•  Early iBeacon test

•  Welcome messages and offers as walk the store

•  Potential privacy concerns

ShopKick-Macy’s iBeacon Test

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•  Pay at in-store sandwich counters, juice and coffee bars, etc. and skip the main checkout lines

•  Testing Square Wallet for mobile payment, offers, menus, digital receipts

Introducing New Ways to Pay

Whole Foods/Square Partnership

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•  Find and purchase items across retailers

•  Google employees pick the items in each store and deliver the next day

•  No perishables

•  Providing Google with own database of retail purchase and other data

Building an Omni-Channel Experience

Google Shopping Express

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•  Key trends




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•  Build relationships vs. distribute coupons

•  Personalize offers and content based on purchase history, location, preferences, etc.

•  Enhance the shopping experience

•  Invest in omni-channel capabilities and partnerships

•  Ensure transparency and shopper privacy

Keys to success

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The Digital Store: Transforming The Shopping Experience with Real-Time Offers and Content

Retail

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