Helping customers understand how to use electronic devices better can produce profits by increasing purchases from early or late adopters, thereby winning the wallet share of digital learners.
etail orchestration services add value to physical products by creating both virtual and physical customer experiences that combine aggregation, assembly and education. When designed and deployed correctly, orchestration services bridge the knowledge gap by helping customers learn more about the products they purchase. One of the best examples of orchestration is the Genius Bar found in Apple’s retail stores. Other examples include personal shopping and wardrobe services provided by leading retailers like Macy’s, Nordstrom and Neiman Marcus; wine and cooking classes offered by upper-end grocers; and virtual kitchen design services tested at select Home Depot locations. With few exceptions, including Best Buy’s Geek Squad, few consumer electronics (CE) retailers offer orchestration services.
Cisco Internet Business Solutions Group (IBSG) calculates that orchestration services can increase revenues for a $10 billion big-box CE retailer by $440 million. The incremental increase in revenue is driven by three variables: a 0.5 percent lift in traffic; a 1 percent increase in customer conversions; and a 1.5 percent growth in market basket size. Given these findings, how can retailers design and deliver orchestration services that win the wallet share of digital learners? The first step is to better understand customers by analyzing device ownership and usage. Taking a dual-lens approach will provide unique insights for your specific situation. The next step is to identify your own
Design and deliver orchestration services to win.
learner segment by: defining your objective; exploring the three elements of orchestration; designing multichannel variants of your orchestration services; establishing corporate-wide “expertise management” as a strategic capability; and enlisting the support of store associates. O
Cisco Internet Business Solutions Group (IBSG) conducted a web-based survey of 1,100 respondents in the United States and produced a report written by Jon Stine and Jeff Loucks titled “Orchestration Services Increase Revenues for Retailers.” This article was excerpted from that report. More information is available at www.cisco.com/ibsg.
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Table of Contents for the Digital Edition of Retail Merchandiser - September/October 2012