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9 Retailers Win 2012 Channel Innovation AwardsFor the second year, Retail TouchPoints is proud to present the Channel Innovation Awards. This awardprogram is designed to honor retailers who are achieving cross-channel success in today’s challengingretail environment.2012 Award winners will demonstrate achievements in some or all of the following areas: Sales gains, particularly within emerging channels Meeting consumer demands with convenient cross-channel shopping opportunities Cross-channel marketing Customer recognition, including social media feedback Technology innovationsThis year’s winners run the gamut of industry segments, from specialty apparel and bridal to big box,grocery and specialty soft goods. They are both U.S.- and internationally-based retail companies. Mostof the winners are selling their products via both brick-and-mortar and e-Commerce web sites, inaddition to mobile web sites and other channels.Many of the winners’ latest efforts are centered around mobile-oriented technology innovations, butall winners are successfully integrating the benefits of cross-channel marketing and services to theircustomers, with impressive results.We know you will be as impressed with the 2012 CIA winners as we are!Debbie HaussEditor-in-ChiefRetail TouchPointsCnvationoel InhannsardAw 2
2012 Retail TouchPoints Channel Innovation Award WinnersTable Of ContentsPlatinum Award: Republic4Gold Award: Tesco5Gold Award: S Group and Foodie.fm6Silver Award: Envelopes.com7Silver Award: David’s Bridal8Bronze Award: Marks & Spencer9Bronze Award: Target10Bronze Award: Step211Honorable Mention: Stop & Shop12Cnvationoel InhannsardAw 3
Platinum Award: RepublicRepublic StrengthensMulti-Channel OfferingsCompany: RepublicWeb site:www.republic.co.ukNumber of stores: 103Annual revenue: N/AUK-based fashion retailer Republic has seen acrossthe-board results from an expanded multi-channeloffering. During the past year, the retailer has launcheda number of new multi-channel services, includingClick and Collect. This service is designed to providemore flexible delivery options in addition to improvingthe continuity of service between the web and brickand-mortar store. With Click and Collect, shoppersare able to select the Republic store of their choice astheir delivery address with the purchase available forcollection within three days of ordering. Customersare alerted by SMS text message when the product hasarrived and is ready to be picked up.Republic developed the Click and Collect service withits e-Commerce platform provider, Venda. Since thelaunch in 2011, 10% of all online delivery purchasesare made with the service, according to Republic.Additionally, company data shows that 76% of Republiccustomers now shop both in-store and online. “Theintegrated multi-channel system has encouragedonline customers to visit the store, driving footfall andincreasing the chance for further cross and up sales andinteraction,” according to Nick Rennardson, IT Director.The system also is able to validate in-store web returnsand allocate them to the originating channel.Mobile Optimized Platform SupportsSmartphone ShoppingAdditionally, Republic has implemented a rich,personalized mobile platform with IT partnerTorex. Torex integrated Torex MiRetail Hub withTorex Retail-J POS and Republic’s web and socialplatform. This has enabled the retailer to offer flexiblecollection/delivery options for online and in-storeorders. Now Republic is able to recapture potentiallylost sales when requested sizes or colors are notavailable in a store, by offering in-store ordering withdelivery to a preferred store or the customer’s home.“The value of the flexibility of the solution wasrealized during the transition between two e-Commerceplatform vendors,” noted Rennardson, “as TorexMiRetail Hub provided the bridge between thesolutions, allowing data from each to be used while stillproviding a seamless experience for the customer.”Cnvationoel InhannsardAw 4
Gold Award: TescoNew Mobile Site Boosts SalesTesco Groceries has significantly improvedsales and ROI on mobile efforts, following theimplementation of a new mobile site, powered byUsablenet. Site users are able to browse products,order items for delivery, change delivery times orchange items in real time. The site also providesa running total of items in a shopper’s basket onthe screen. In addition, the site offers an advancedproduct list page, shopping cart with notifications,and a pop-up mini cart.Company: TescoWeb site:www.tesco.comNumber of stores: 6,351Annual revenue:60.9B Euro ( 78.9B)Shoppers also can access the top 50 items theypurchase most often in a site feature called “MyUsuals.” Customers who log in using their loyaltycard password can view their entire purchasehistory. Tesco also provides special eCoupons formobile site shoppers. The mobile checkout functionfeatures industry leading HTML5 capabilities.Tesco also is substantially increasing its budgetfor online shopping, committing close to 200million in 2012/13, according to the company. Todate, Tesco allows customers to order via mobileand pick up in 70% of its UK stores and plans toincrease that coverage to 85% within the year.Further investing in cross-channel efforts, Tescoopened a virtual supermarket in a South Koreasubway station. A wall-length billboard features adigital display that mimicks supermarket shelves.Shoppers scan QR codes to add items intotheir shopping cart, then the completed order isdelivered to the customer’s home within 24 hours.Cnvationoel InhannsardAw 5
Gold Award: S Group and Foodie.fmSocial Shopping PlatformSupports Business GrowthIn the last year, S Group and Foodie.fm’s grocerymarket share in Finland has grown 1.2% to 45.2%,consistent with the company’s overall growth since1990, up from 16%. This growth is in part attributedto the launch of a new e-Commerce platform,foodie.fm, developed by Digital Foodie Ltd.Company:S Group and Foodie.fmWeb site: foodie.fmNumber of stores:22 regional cooperativeswith approximately690 storesAnnual revenue:10.5B Euro ( 13.6B)Within two years from pilot to expansion, thefoodie.fm user base has grown to cover 3.7% ofthe Finnish population. As many as 19% of thefoodie.fm users report that visits to the site hasresulted in increased visits to the S Group andFoodie.fm stores, according to Kalle Koutajoki,CEO of Digital Foodie.S Group and Foodie.fm offer behaviorallypersonalized recipe and product recommendationsto online shoppers, which are integrated intoreal-time assortments and home delivery services.The site provides full assortment and pricetransparency to 900 stores and provides a directlink between the retailer and consumers. Theplatform is available on Facebook, iPad, iPhone,Android and Nokia applications.S Group and Foodie.fm has marketed the platformin conjunction with Nokia and Digital Foodie viaFacebook advertising, print advertising, B2B andB2C newsletters, as well as direct email campaignsand blogs.Additionally, S Group and Foodie.fm havepartnered with SAS Institute, using SAS predictiveanalytics for driving store-based assortmenthandling and value chain management. Foodie.fm is fully integrated with S Group’s real-timeassortments across Finland. The online productassortment is synchronized daily with full pricetransparency. The site also offers detailed nutritionalinformation for more than 15,000 products.Cnvationoel InhannsardAw 6
Silver Award: Envelopes.comSimplified Online ShoppingDelivers Sales LiftBy easing the online registration and accountcreation process, Envelopes.com has reporteda 15.3% sales lift. Recently, the online retailershas implemented a new application that allowscustomers to purchase without registering.Typically e-Commerce sites require user to createan account or login before checking out, whichcan be cumbersome and cause cart abandonment.By simplifying the process, Envelopes.com is ableto save lost sales.Company:Envelopes.comWeb site:www.envelopes.comNumber of stores: 0Annual revenue: 16.6MEnvelopes.com also uses the Bronto WorkflowAutomation Canvas, in order to automatemessages to subscribers. The Bronto solution is adrag-and-drop canvas designed to visually architectcampaign workflow. A set of triggers initiatesdifferent actions. For example, a user can trigger aworkflow when a contact is added, when a contactfield is updated, or when someone texts in akeyword via SMS.Using the Bronto system, Envelopes.com hasdeveloped a “Managed Preferences” function,which prioritizes customers’ favorite products.“Then we are better able to group our customers,”noted Laura Santos, Marketing Manager. Theonline retailer also has found success using Brontoin reorder email campaigns, Santos noted.To promote its offerings, Envelopes.com takesadvantage of social channels, such as an emailsignup promotion on Facebook. Most recently, theretailer is using Pinterest to promote creative waysto use envelopes and highlight event themes suchas weddings and parties.Cnvationoel InhannsardAw 7
Silver Award: David’s BridalEcommerce PlatformTransforms TraditionalStore-Based SegmentCompany:David’s BridalWeb site:www.davidsbridal.comNumber of stores:more than 300Annual revenue: N/AThe bridal business, by nature, is hands on. Andwhile David’s Bridal continues to drive the bulk ofits sales through its 300 stores, recently the retailerhas embraced its online channel to help improveoverall sales. Following the implementation ofa new e-Commerce platform from CrossView,David’s Bridal has seen a close to 40% increasein online sales. Order value has increased andconversions are up.One way the bridal retailer has expanded itscustomer base is by eliminating the need forshoppers to register before completing onlinepurchases. The retailer also is expanding its reach byadding consultative services to its web site throughits Little White Book portal, built on an IBMWebSphere Commerce platform. Shoppers can nowcreate and order invitations, select photography,flowers, honeymoon venues, jewelry and more.Now more interactive, the web site offers avatarmodels that depict how the dresses, shoes andaccessories will look on the bride and her bridalparty. Accessing a shopper’s My Favorites listfacilitated by Coremetrics technology, salesassociates can better assist customers with itemchoices and personalize marketing based onshopping patterns.As a result, overall site traffic has increased 20%on average year-over-year for the past severalyears, the company reported. Pages per visit alsoare on the rise, up to 30 from 20-25 one year ago.Cnvationoel InhannsardAw 8
Bronze Award: Marks & Spencer‘Browse & Order’ FeatureIntegrates Store And Mobile SiteFollowing the successful implementation of a newmobile site with technology partner Usablenet,Marks & Spencer decided to expand its cross-channelcustomer experience. Using Usablenet’s Agile WebServices, the specialty apparel retailer is able to tietogether a number of channels, allowing customer tobrowse in-store, view a wider selection of items online,watch videos, create outfits and purchase online – allfrom inside the store.Company:Marks & SpencerWeb site:www.marksandspencer.comNumber of stores:1,010Annual revenue:9.7B Euro ( 12.6B)Marks & Spencer’s multi-channel shoppingprogram is called Shop Your Way and features anorder and delivery service which allows shoppersto order in-store, online, via smartphones or otherdevices, or by telephone, for delivery in the UK orinternally, or to a particular store.Marks & Spencer implemented a touch screenBrowse & Order system, which allows shoppersto view all Marks & Spencer products from instore screens and iPads. This system is part of anoverall Style Online program, currently accessiblein three Marks & Spencer stores. Style Online usesdigital technology to showcase the latest fashiontrends offered by the retailer. Via 46-inch screens,customers can build outfits, watch catwalk videosand browse products.Once the shopper inserts items into the virtualshopping cart, the system generates a code thecustomer can use to purchase directly from thestore’s Browse & Order screen, or from an in-storeiPad. Orders can then be delivered to a customer’shome or to a specific Marks & Spencer store.To encourage additional cross-channel shopping,Marks & Spencer provides exclusive onlinepromotions, encouraging customers to shop viamore than one channel.Cnvationoel InhannsardAw 9
Bronze Award: TargetInteractive Campaigns TapMulti-Channel ResourcesWith close to 1,800 stores in 49 states, Target isthe third-largest U.S. retailer, according to 2011statistics from Stores.org. The big box retailercompetes with most of the other top-10 retailers,including Wal-Mart, Kroger, Walgreen and Costco.Company: TargetWeb site:www.target.comNumber of stores: 1,767Annual revenue: 67.4BTo remain on top, Target must continue toinnovate. In addition to new store layouts andstore formats, recently the Minneapolis-basedretailer has initiated a number of interactivemulti-channel marketing campaigns, in partnershipwith some of its suppliers, to help boost sales ofspecific products.In one campaign, Target has created a multichannel experience to promote and sell BenjaminMoore paint and Circo children’s beddingcollections. Online, the retailer shows photosof various combinations of bedding collectionsand paint, along with a sample page of BenjaminMoore paint colors.For the mobile site, the retailer is offering QRcodes on in-store signage. When the shopperclicks on the QR code using her mobile device,she is directed to the mobile site showing similarcombinations of bedding and paint options.Another multi-channel campaign was designed topromote a new Nikon camera. In ads, on target.com, in stores and via mobile, Nikon and Targetprovided user reviews, third-party reviews, videosand product information.n Aationovel InnnaChsward 10
Bronze Award: Step2Videos Bring Large-SizeProducts To Life OnlineUsing video to help give customers a morecomprehensive introduction to products, Step2increased conversion rates by 174%, comparedto shoppers who did not view the videos.These statistics were gathered using advancede-Commerce metrics provided by Invodo, thepartner that also produces the videos.Company: Step2Web site:www.step2.comNumber of stores:1 company store(products distributedthrough more than 70retailers worldwide)The videos are available for viewing acrosschannels, including Facebook, QR codes formobile devices, through direct email marketingand on the company’s web site. Step2 is the largestU.S. manufacturer of preschool and toddler toys,selling its products through retailers such asToys R Us and direct to consumer via Step2.com.To promote the consumer adoption of the videos,Step2 developed a large poster for Toys R Usstores, featuring a QR code linking to productvideos. When consumers click on the QR code,they can view the items and watch videos showingchildren playing with the products. This allowsconsumers to make more informed purchasedecisions about products that may be too large todisplay in-store.Step2 uses video conversion tracking from Invodoto measure the impact of the videos on sales.Additionally, Step2 and Toys R Us have been ableto track the impact of videos accessed via QRcodes on in-store or web site sales.To further promote the use of the videos, Step2and Invodo have developed a program that allowsthe videos to be syndicated to retailers’ web sites,both within the U.S. and abroad.Annual revenue: N/An Aationovel InnnaChsward 11
Honorable Mention Award: Ahold USA/Stop & ShopMobile Shopping ScannersProvide Convenience & CouponsCompany:Ahold/Stop & ShopWeb site:www.stopandshop.comNumber of stores:more than 380Annual revenue: 11.7BThe SCAN IT! handheld product scanning systembegan with portable in-store units, but is becomingmore convenient for today’s shoppers with theintroduction of a mobile application. Initiatedsuccessfully in three Stop & Shop stores, themobile application currently is offered in 50 storesand is expected to be available in more than 350locations by mid-2012. The mobile application wasinitially launched for iPhone 3GS or 4G units. Adivision of Ahold, Stop & Shop currently operatesclose to 400 stores in Connecticut, Massachusetts,New Hampshire, New Jersey, New York, andRhode Island.These targeted offers are key to driving basket lift,according to the company, which estimates thatshoppers can anticipate potential savings of 250to 500 annually, based upon receiving 8 to 10targeted coupons per shopping trip.The scanners not only place items in a virtualshopping cart, they also tally prices, providetargeted location-based offers and deliver pastpurchase history. Each offer provided to a shopperis personalized based on that customer’s individualpurchase history, brand preferences, location inthe store and aisle and the current contents of thevirtual shopping cart.n Aationovel InnnaChsward 12
About Retail TouchPointsRetail TouchPoints is an online publishing network for retail executives, with contentfocused on optimizing the customer experience across all channels. The Retail TouchPointsnetwork is comprised of a weekly newsletter, category-specific blogs, special reports, webseminars, exclusive benchmark research, and a content-rich web site featuring daily newsupdates and multi-media interviews at www.retailtouchpoints.com. The Retail TouchPointsteam also interacts with social media communities via Facebook, Twitter and LinkedIn.You May Also Like.click to viewCustomer Engagement AwardsSocial Commerce Survey2012 Outlook Guide411 State Route 17 South,Suite 410Hasbrouck Heights, NJ 07604P: 201.257.8528F: 201.426.0181info@retailtouchpoints.comn Aationovel InnnaChsward 13
The bridal business, by nature, is hands on. And while David's Bridal continues to drive the bulk of its sales through its 300 stores, recently the retailer has embraced its online channel to help improve overall sales. Following the implementation of a new e-Commerce platform from CrossView, David's Bridal has seen a close to 40% increase
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