Abbie Lane Rachel Eades Charlotte Cai n Taymina Cabrita Emily Norris
// 1327 Words // 1103 Words // 861 Words // 891 Words // 1044 Words
Word count: 5,226 MODULE NAME / FASH20032 MODULE LEADER / MICHELLE HUGHES
// N0423568 // N0418597 // N0433014 // N0379472 // N0430188
The Big Idea
List of References
n a world concerned with the virtual, augmented reality of online platforms, we wanted to provide an exciting in-store experience to rival the ease of online shopping. Through the use of cutting edge technology, loyalty schemes and innovative retail spaces, we hope to provide a physical shopping experience that encompasses all of the benefits of shopping online. Our aim is to encourage in-store purchases for
Liberty London. As a heritage brand and iconic British store, the physical retail experience is a fundamental aspect, which should prove innovative and personal in order to encourage consumer loyalty. We aim to merge the online and offline worlds through innovative technological methods including: geo-fencing, i-beacons, interactive tables, fingerprint payments and a ‘wishlist’ element that
uses recognition technology. We also hope to improve consumer loyalty by introducing after-purchase rewards. This will include a personalised birthday scheme, ‘Secret Saturday’ app, biannual in-store events and the invitation to cultural-related brand activity based on the individual consumers purchase history. Written by Abbie Spencer-Lane
Figure 3 ASAP54 App Advert
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72% of people in the UK own a smartphone- growing by 14% in ten months’ (Styles, 2013). Highlighting the growing importance of technology in today’s society, this suggests that smartphones could be a crucial platform for retail environments. This suggestion is often feared by retailers, due to smartphones being a general distraction, deviating consumers away from purchasing (Skeldon, 2014) and providing consumers with the resources to quickly review and find cheaper alternatives online (Ltd., 2014). However, welcoming them into retail can prove very advantageous. Telecoms journalist Paul Skeldon suggests that ‘By providing targeted online offers, vouchers or coupons that can be redeemed in-store, they can help ensure in-store mobile consumers are converted to in-store customers’ (2014). Therefore, it seems apparent that the device behind the fall for in-store sales could also prove to be the solution.
Figure 4 ASAP54 App in Vogue
Figure 2. Smart Rewards Mobile App
Smartphone’s can help to encourage in-store sales in a variety of ways. Geo-fencing is able to instantly target consumers as they approach the retail environment, sending promotional offers or vouchers to the potential consumers’ smartphone and consequently enticing them into the store. This technology has made vast improvements, with ‘Google recently’ releasing ‘tools to help developers…determine more accurate locations faster and without draining the smartphone’s battery; can determine if the user is walking, cycling, or driving; and can set up location-based triggers when someone enters or exits a geofenced area’ (Morley, p.113, 2011). Such technology is already being used by certain retailers, and is set to be a major retail trend this year (Whitehead, 2014). As figure 2 shows, one company already utilising this technology is ‘The Swan Shopping Centre in Eastleigh’ which ‘rewards shoppers with
points towards discounts, prizes and offers when the physically visit the centre or share content with their friends’ (Whitehead, 2014). This shows that geofencing technology can even be paired with retail loyalty schemes, rewarding customers for merely entering the store Furthermore, Apple’s recent technological-creation of iBeacons has the potential to change the liberty shopping experience. Described as ‘an indoor positioning system designed for the retail environment’, iBeacons enable messages to be sent instantaneously to customers’ in-store (Mchugh and Yarmey, p.23, n.d.). Therefore, alerts about certain products or promotionsfor example sales or last chance to buy sections- can be sent to the customers mobile if they are in close proximity to them. This holds the potential to redirect a shoppers attention back to purchasing, guiding them
through their retail experience. Another equally intriguing, evolving smartphone trend incorporates the use of ‘visual recognition technology to identify clothes’. The mobile app Asap54 (see figures 3 and 4) is already profiting from this new technology. The app allows shoppers to ‘take a picture of clothing on their smartphone and then be linked to a retailer where they can buy that piece or something similar’ (Hickey, 2014). Visual recognition technology could be used by retailers to aid the transition from online to in-store purchasing by allowing customers to create the equivalent of an online ‘wishlist’ of their favoured items whilst in-store by taking photographs. By placing this exclusively online advantage in to physical retail spaces, in-store purchasing could be increased. Written by Abbie Spencer-Lane
uxury retailers such as Alexander McQueen have started to embrace interactive tables as part of their retail experience (see figure 1). These interactive tables allow customers to ‘search, watch and share past McQueen shows and catwalk looks’ (McQueen, u.d.). Interactive tables allow and prompt consumers to find further details about products by placing them on top of the interactive surface. This results in an efficient way for consumers to learn more about products and could potentially make searching for product information on smartphones- which can result in finding cheaper alternatives - irrelevant.
New innovations to improve the ease of the payment process are currently at the forefront of retail technology. Jessica Winch reports that ‘supermarket shoppers in France have welcomed new technology that allows them to pay for goods by having their fingerprints scanned’. The supermarket held a trial period, after which ‘94% of participants said they were willing to use the payment option for all their in-store purchases’. WorldPay furthered this research by surveying 2,159 shoppers on the topic. ‘Almost half of those surveyed said they would like to have biometric payments, such as fingerprint, palm or iris scanners’ (Winch, 2013). It is therefore apparent that the public are willing, and intrigued by the prospect of biometric payments- an easier, less time consuming alternative to traditional payment methods. Written by Abbie Spencer-Lane
Fig 1. Alexander McQueen Interactive Table
Appelrouth and Edles (p. 465, 2008) wrote of how ‘a basic reward people seek in their associations is social approval’. This infers that people yearn for validation from others; and this is where social media proves essential for retailers. Much like Liberty London, Michael Kors has successfully established itself as a lifestyle brand. WGSN reports on how ‘Michael Kors has become one of the most successful fashion brands on social media, consistently portraying an aspirational jet-set lifestyle and seamlessly weaving in accessible products throughout’, therefore suggesting that the lifestyle nature has aided their social media success. WGSN
progress to imply that one of their reasons for success is that their social media strategy ‘provides a space for fans to take part in an intimate conversation about their own Michael Kors experiences, products they love and how they have incorporated the brand into their lives’ (So, 2014). It therefore appears imperative that customer’s are willing to engage with a brand on social media. WGSN contributor Veronica So then elaborates on the brands success by stating that ‘It has also pushed its posts heavily using paid media, achieving enormous success as the first advertiser on Instagram’. Therefore, prompting customers to post pictures from
their in-store wishlists on to Instagram for example, could prove beneficial, promoting both store products and customer satisfaction. Instagram itself appears to be a very advantageous social media platform to utilise at the moment, as another WGSN report suggests that it could be ‘the world’s most powerful social media platform’ boasting ‘the highest consumer engagement of the social media platforms, 15 times that of Facebook’ (Arthur, 2014). Therefore, it would appear that encouraging consumer engagement on Instagram in 2014 is a vital investment for retailers to consider. Written by Abbie Spencer-Lane
LOYALTY SCHEMES Figure 5 Boots Advantage card
oyalty schemes are a successful marketing method to help encourage customers to buy more often. According to Phillip, B (2013) , it costs a business about 5-10 times more to acquire a new customer than it does to sell to an existing one, and on average current customers spend 67% more than a new ones, sense why loyal customers remain loyal to a brand. Liberty could modify their current loyalty scheme from a simple points system to offering further benefits, which could easily be linked to the
Liberty’s app that will be further discussed. The Tesco Clubcard and Boots Advantage Card (see figure 5) appear to have been the most successful loyalty card schemes in the UK. Each allows you to collect a certain amount of points in relation to how much you spend in store. Tesco also offer your points in favour of trips and treats. Taking inspiration from these schemes, Liberty’s could do a similar style in that the points could offer exclusive discounts and treats such as afternoon tea in the café. Combined with the 13
i beacons, the new Liberty Loyalty Card would allow a deep level of understanding to each customer. By tracking their buying habits, you could send out personalised emails or letters, similar to Tesco. They would be based on your buying habits and would encourage the customers to buy more or to ‘get the latest picks’ which are tailored to them. This tailoring will have a definite increase in customer engagement. Written by Emily Norris
THE INTERNATIONAL CONSUMER 14
ith Liberty’s store considered a popular tourist destination, the brand increasingly benefits from the rise in foreign visitors; the UK saw a 5% rise in foreign visitors in 2013. In 2012, global design consultancy Fitch reported that in today’s society shopping enthusiasm is most strongly felt in emerging markets including China, India and Brazil (FITCH, 2012). Although Liberty is a renowned British institution, it is vital that the brand does not surpass the importance of targeting international customer segments. To expand Liberty London’s overseas consumer base, the store will increase their international payment options in store. Currently only accepting MasterCard, Visa, American Express, Delta, and Maestro credit and debit cards, Liberty will start to accept China’s CUP card. +Tourists from China and the Middle East increased by 10.5% in 2013, and with Britain’s new visa policy for Chinese visitors (Financial Times: Online), it appears that the visitor number will continue to increase. Following Selfridges’ introduction to accepting the CUP card in 2009, it was reported that the bankcard increased the number of Chinese tourists by 130% in its 2009/10 financial year (Gill, 2013). Written by Rachel Eades
s figure 6 illustrates, Liberty identifies its primary competitors as established Londonbased department stores including Selfridges, Harrods, John Lewis and Harvey Nichols (Gill, 2013). Liberty aims to differentiate its brand identity by drawing on the historical and traditional in-store aesthetic and stocking a more specialist range of merchandise. Whilst brands such as Selfridges and John Lewis tend to push their personal branding at their customers, Liberty is more reserved in doing so and thrives off the element of exclusivity (Gill, 2013). Written by Rachel Eades
As personalization continues to be an important factor in retail branding (Pollack, 2014) it is clear that all major department stores are asking their consumers to participate in the development of their products, shopping and online experiences. In terms of loyalty schemes, most stores provide a â€˜reward schemeâ€™ card, such as Harrods Rewards and My John Lewis. Resembling Libertyâ€™s current loyalty card, each scheme shares similar factors including earning points for every pound you spend, being informed of promotions and events in advance and entry into prize draws.
PERCEPTUAL MAP// High use of technology
Low use of technology
Figure 6. Liberty Perceptual Map, completed by Rachel Eades.
ith its London flagship store being the second largest shop in Britain, Selfridges thrives off its energetic and busy location. Whilst Liberty positions itself to the more premium and high-end market, Selfridges targets itself to a wider audience with a high disposable income (Gill, 2013). Recently named the ‘World’s Best Department Store’ at the Global Department Store Summit (Bearne, 2014), Selfridges excels in delivering innovating in-store experience and customer service.
For example, this will be executed through the use of social media sites Weibo and We Chat, Google+ and Instagram. Ms Kay explained that Selfridges incorporates six different marketing campaigns per year. The technologically driven brand ensures it delivers a wide variety of in-store pop-up shops, events, visual merchandising collaborations, marketing and social media campaigns to ensure the store uses the marketing themes to entice all customer market segments (See Apendix 4).
Through an interview with Hazel Kay, Head of Marketing at Selfridges, it was understood that Selfridges is looking to incorporate more innovative methods of embracing Britain’s tourists and multicultural society, as overseas shoppers account for a quarter of sales made at the London store (See Apendix 4).
Selfridges proposes that in-store shopping should be a fun and exciting experience (Gill, 2013)). The recent SS14 campaign, Board Games, attracted customers to visit the store by opening a Skatepark (figure 7) in the Old Selfridges Hotel in association with mobile brand HTC.
Figure 8. Selfridges Click and Collect
Figure 7. HTC One Skatepark
Available to anyone, the park opened seven days a week for six weeks and had no entry charge. The skatepark was a success in that it attracted over six thousand visitors in the first four weeks. Similarly, Liberty could perhaps incorporate a more unique yet traditionally British scheme to draw in a younger consumer market segment. Furthermore, Selfridges integrates modern technology into the retail environment, for example the ‘Jeanius Bar’ in the store’s Denim Studio. A digitally-enhanced table that displays the entire range of Denim merchandise aside from look books and fitting guides (LS:N Global, 2013). Aside from in-store activity, November 2013’s introduction of a drive-thru Click-and-Collect service (see figure 8) continued to merge the brand’s online presence and consumer engagement within the store (Thompson, 2013). Offering thirty minutes free parking for shoppers collecting orders increased the opportunity for impulse purchases, a factor that all retail brands must consider. 19
Written by Rachel Eades
Figure 9. Survey Results Infographic
21 By Taymina Cabrita
Figure 9. Survey Results Infographic
Figure 10. Consumer Profile A
Figure 11. Consumer Profile B
23 By Taymina Cabrita
fter carrying out extensive secondary research and generating a number of initial ideas as to how we feel Libertyâ€™s should integrate an engaging loyalty scheme, we used the findings from our primary research to give us the go ahead on which ideas to push further.
THE BIG IDEA 24
As Appendix 3 shows, we conducted an observational study in the Liberty’s store and found that out of the 120 customers whom entered the shoe department within a 20 minute period, 79 of those customers had their mobile device in their hands whilst shopping. This high proportion of actively tech-savvy consumers came as no surprise to us, as being apart of Generation Y ourselves, we are equally as involved in integrating our mobile devices at most touch points in our daily routines. Nevertheless, we observed a varying age of shoppers, and this behaviour was present throughout the sample. However, whilst we recognise this growing trend in
in-store mobile phone integration, through our research we have also identified that Liberty’s target market continue to place importance on the physical in-store shopping experience (see Appendix 2). We believe that these two brand touch points can be merged, leading to an enhanced customer shopping experience, whilst equally providing an integrated and rich range of experiences that can satisfy the shoppers’ needs. This will be achieved through a plan to drive the consumers into the store via smartphone technology, as well as via the introduction of interactive in-store technologies. We feel that our proposals will be viable and in keeping with Liberty’s customer-base, whilst equally attracting 25
new innovation-seeking customers along the way. A study carried out by Fitch further supports our thoughts. An extract reads: “Bricks and mortar stores are in no danger of going away soon. Our research shows that shoppers across the world still see physical stores as the most preferred shopping channel” (Fitch, n.d.). Conclusively, we have identified an overriding theme of the store being the physical “anchor” for the consumer to visit, and so our proposals will facilitate this idea. This is our big idea. Written by Charlotte Cain
Figure 12. Liberty app mock-up
Figure 13. Geo-fenced reward notification
s a means of engaging the Liberty’s consumer before the physical retail experience, we have opted to use geo-fencing as a means of drawing them to the store. Geo-fencing technology defines a virtual boundary around a real-world geographical boundary (Turtle Jet Inc, 2013). This software uses the global positioning system (GPS) to define geographical boundaries, which allows the administrator to set up triggers that when a device enters certain boundaries, a push notification is sent to the device (Rouse, 2013). This is displayed through figure 12. We propose that Liberty’s use Xtify capabilities to utilise geo-fencing. Xtify works on methods of continually tracking mobile consumers to provide messaging at the highest moment of relevance (Martin, 2013). The consumer will see messaging come through the Liberty’s app (if they have it) when receiving a notification of a current offer; alternatively, it can be pushed through their mobile’s Internet server based on their search history. This technology allows for push notifications to be transmitted to a mobile device without the need of the customer actually opening the app (see figure 13). The Xtify system would allow Liberty’s to fine-tune their messages to each individual customer when they enter the Liberty’s geo-fence. When mobile shoppers are viewing Liberty’s website, different messages can also be sent based on whether the consumer is at home, in the store or even in a competitor’s store. The result of opening a notification within a certain radius to the Liberty store results in a reward for the consumer, and the system also allows easy sharing of that message to other platforms like Twitter.
G EO A study carried out by Mintel illustrates the importance of utilising smart phones to encourage purchases: “Whilst over two-thirds have turned down a mobile purchase due to a specific barrier, Mintel’s consumer research shows that at least 70% of smartphone owners could be encouraged to buy items via their mobile. This suggests that the current proportion of smartphone purchasers (49%) has by no means reached its saturation point, with an additional 21% of smartphone owners declaring an interest in m-commerce.” (Mintel,
2012) Utilising geo-fencing could therefore put Liberty’s at the forefront of innovative retailers whom are utilising mobile technology, whilst also boosting sales revenue.
Written by Charlotte Cain
ontinuing our approach to utilise modern-technology to enhance the shopping experience, IBeacons will be used as a primary tool in enhancing the customer’s satisfaction during their visit to the Liberty store. Named the ‘next generation of geo tagging,’ the small, wireless pods use BLE (Bluetooth Low Energy) and have a range of up to 50 feet. IBeacons and smartphone devices are able to transmit signals of relevant data to each-other. With the technology allowing the consumer to have a direct link with the retail space, this allows for new possibilities in store.
Continuing our approach to utilise modern-technology to enhance the shopping experience, IBeacons will be used as a primary tool in enhancing the customer’s satisfaction during their visit to the Liberty store. Named the ‘next generation of geo tagging,’ the small, wireless pods use BLE (Bluetooth Low Energy) and have a range of up to 50 feet. IBeacons and smartphone devices are able to transmit signals of relevant data to each-other, demonstrated in figure 14. With the technology allowing the consumer to have a direct link with the retail space, this allows for new possibilities in store. Wireless (Bagdare,R. 2013) state that iBeacons ‘Revolutionise Bricks and Mortar.’ Liberty would benefit from the beacons being able to track the customer’s shopping habits across all departments. This would allow the store to ensure it has an efficient layout as well as gain more information on that consumer for personalised targeting. It could also test the staffing levels, provide the customer with further information of a certain product and even link to the Liberty app. Macy’s in New York have already embraced iBeacons. The Shopkick app users can browse products, get directions to the correct department and even save items to a wish list. Next time you are in store or online you are then able to access items from your wish list to purchase at any time. We have created a mock-up of how Liberty London could utilise this facility as shown in figure 15. Recently, Macy’s have also connected the app
Figure 15. Liberty Wishlist Mock-Up
to enable the use of PayPal for in-store payments. This would save having to pay at the till and the consumer needing a card. Tierney (2013) explains that the use of Omni-Channel interactive technology is key to promote consumer engagement. The iBeacons are also able to link up to RFID (Radio Frequency Identification) tagging. Through the instant connection between the iBeacons and each consumer’s smartphone app, Liberty is enabled to track the consumer’s shopping habits. The customer recognition will not only allow them to feel embedded
within the store but it will also allow Liberty to gain a deeper understanding of how to target their consumers through more specific and personal methods. Alongside the link to the Liberty app, the iBeacons could allow you to browse further information on a product, pre pay or save. Dispersing specific information on a product via iBeacons would enhance the store experience. The iBeacons would run seamlessly alongside the interactive table, both working together to eliminate people waiting for a assistants advice and ensuring that each customer can get everything from the
Figure 14. Estimote Ibecons device
Liberty’s store. Kennith Cole and Timberland are two examples of brands that are currently using iBeacons in the UK’s retail market. Both companies have reported an increase in purchases within store. Liberty looks towards iBeacons to merge the offline and online sectors of the store together, aside from incorporating technology into every department. The pre-payment option could also save customers time, allowing them to pay, browse some more or have a coffee and pick their item up on the way out to save waiting for the wrapping service. Written by Emily Norris 29
P E R C H 30
Figure 17. Perch Interactive for Liberty Table Mock-up
Figure 16. Perch interactive table for Kate Spade
urthering our aim of increasing the number of repeat visits to the store, a factor in allowing customers to be a part of a cohesive store experience will be through the use of interactive tables. Liberty will collaborate with Perch Interactive, a sister company to the digital design studio Potion; both companies create unique interactive tables to enhance the retail and brand experience. Switching bricks and mortar from offline to online, they blur the lines between digital and physical for an immersive shopping experience. Perch is currently in many stores in New York and their tables can be suited to any type of market from skincare to sports shoes. One of the most suited examples would be Kate Spade’s store in SoHo, NY (see figure 16). Interactive table displays aim to capture the attention of people browsing inside the store and encourage impulse purchases. Following the current trends associated with the accessories or clothing within the section of the store, the digital technology will maintain a connection to the retail displays. The integration of technology will appear exciting and innovative to customers, encouraging them to become engaged with
the story behind the items they are interested in. We have constructed a mock-up of an interactive table that Liberty’s could introduce to their in-store retail space (see figure 17). The personalised digital space may also invite consumers to consider purchasing items they would normally dismiss. Furthermore, it could spark and increase in return visits and attract new consumers through word-of-mouth reviews. If sales representatives are busy, the Omni channel will allow the customer to engage on a personal level, which will enhance store experience. “The Perch experience draws on the best of what
kiosks can offer, without detracting from the natural connection between a shopper and the product,” said Perch Co-Founder and CEO Jared Schiffman. This allows the interaction between the store and consumer to be seamless as they are in control. The use of an interactive table could potentially really increase the number of customers through the store as well as enticing return visits. The table could be placed in key areas such as Fragrance, Shoes and accessories and beauty to allow for an augmented reality experience that engages the consumer. Written by Emily Norris
FINGERPRINT PAYMENTS T
o simplify and speed up payment methods, Liberty will use biometric technology to allow the consumer to complete a transaction entirely through fingerprint recognition. At the point-of-sale, customers will be able to place their finger or thumb onto a screen and complete their payment almost instantaneously. Loyalty scheme members will be able to sign up to the fingerprint payment option by registering on the in-store sensors located at customer services. Liberty will register the fingerprint scan and credit or debit card details into their system so that the customer’s fingerprint will replace the card’s traditional PIN or required signature during future transactions. Given the growing concerns of identity theft, biometric authentication would provide Liberty’s consumer with an increasing number of benefits including reducing the need to carry any physical money or other identifiers and the decline of checkout delays (Bonnington, 2014). An individual’s biometric ID is personal to themselves and extremely difficult to copy, therefore the use of fingerprint recognition will dramatically increase the security and safety of the Liberty store. The authentication will also benefit the brand through lower transaction fees and increased productivity within store. Loyalty scheme members will be made aware of biometric payments through push notifications linked to their Liberty app, emails and text messages. Once the member has signed up, however, the notifications will automatically stop to avoid annoyance. Written by Rachel Eades
Figure 18. Customer Birthday Card Mock-up
Following our consumer interviews and in-store observations, we have pin-pointed that Liberty thrive off their brand’s personal connection to their customers. During our store visit, particularly in the womenswear and fragrance departments, we were approached by engaging and polite staff. They took a real interest into getting to know our preferred purchases, and in doing so they gave us a thoughtful opinion and advised us what to wear. We also noticed this whilst watching the Channel 4 documentary that staff often telephone their customers to give them information – this is an extremely rare and refreshing approach in customer service. (Channel4.com, 2014) Over 90% off applicants said they had made a purchase in-store / online after receiving an email or push notification informing them of a current promotion / sale that is on (See Appendix 1).
Applicants mainly wanted freebies/money off through the reward scheme (See Appendix 1). All applicants said it was important to them having a reward scheme tailored personally to them. “It shows the company know and understand what I like, and pay attention to that, and that is SO key, Exceptional customer service is all about addressing the customer’s needs.” “It would, if the business gives me certain points and deals on items I buy often, this makes me continue to buy those products, even if I don’t necessarily need them at that moment, because I know I’ll save money in the future, I’ll buy them there and then.” Drawing from this connection between the brand and consumer, we have devised a birthday scheme dedicated to Liberty’s loyal VIP customers. Each consumer will receive a personal hand written birthday card from
Liberty every year (see figure 18). People are becoming more obsessed with recording and analysing themselves and it is important that businesses do this with consumers (Wolf, 2014). “Consumers know their information is valuable and are choosing to privatise their details and sell it back to brands” (The Future Laboratory, The personal information economy, 2014) Knowing how crucial this is, depending on the client’s purchase history, we are able to analyze where their most expenditures are and give them a gift that stays in keeping with their personal preferences. A range of different gifts could be sent, for example: a voucher for a spa treatment; a basket of Liberty’s branded products or a voucher for the customer’s most-visited department. Written by Taymina Cabrita
BIRTHDAY SCHEME 33
hrough our proposed Liberty’s app, we also want to add a “Secret Saturday” feature. This would allow app users to receive a promotional code every Saturday entitling them to a free gift with any purchase at the checkout that weekend (see figure 19). We took inspiration for this idea from the success of Sephora’s Fan Friday app, which similarly provides fans with a promotional code to receive a free gift with a purchase (Mintel, 2013) To achieve an integrated marketing campaign, Liberty’s Facebook, Twitter and Instagram followers will be reminded of these app-exclusive promotions, in a bid to encourage them to use the platform. A trend amongst retail apps is the practical one for shoppers. These utility apps help build trusting relationships with users so that they feel the reliability of the brand when shopping both in-store and online (Mintel, 2012). By going down this route via the “Secret Saturday” app feature, it always Liberty’s to tap into The Consumer Decision Journey (Harvard Business Review, 2010). The idea is that the consumer will consequently enter an open-ended relationship with the Liberty’s brand post-purchase, and further enter the loyalty loop, (see figure 20) advocating the app to friends and family.
In the eventuality that the user forgets to open the app to receive the weekly app-exclusive promotion, Liberty’s geo-fencing technology via Xtify’s capabilities will push the notification to the user’s mobile device upon them entering the store’s geo-fence boundary. As Mintel’s Paul Davies outlines: “The prediction is that by 2020, mobile will be the most common communication channel used by retailers” (Mintel, 2012), and so it is of the upmost importance that Liberty’s respond to this and consider implications of the app as outlined. Using geo-fencing technology alongside the app will result in a more consistent and integrated smartphone loyalty campaign. Written by Charlotte Cain
Figure 19. Secret Saturday app mock-up
Figure 20. The consumer decision journey diagram
ith the increasing view that retail brands including Liberty are defining themselves by their customer base rather than their product merchandise (Pollack, 2014), it is important to incorporate the consumer’s lifestyle into the retail business model. However, Liberty should aim to acknowledge the UK’s multicultural society and move away from the traditional Christian holiday calendar. Directly linking to the consumer’s interests, cultural and annual dates and events will be built into Liberty’s loyalty scheme and in-store activity. For example, a Liberty loyalty member that has recently purchased a number of sportswear products would be entered into a competition to win tickets to Wimbledon, or a handmade card pop-up shop could appear in-store in the run up to Easter or Mother’s Day. Drawing on seasonal dates provides Liberty’s retail activity with a contextual purpose. We believe this will capture the attention of consumers as they can relate to the reason behind each retail marketing method, and ultimately entice them into the store on a more frequent basis (see figure 21 on pages 36-37). Written by Rachel Eades
CULTURAL CALENDAR OF EVENTS FOR THE 2014/15 FINANCIAL YEAR DATE CULTURAL EVENT POTENTIAL BRAND ACTIVITY APRIL 13th April London Marathon Competition in collaboration with a sports brand and location based advertising. 18th April Good Friday Easter activity for children within the store. 20th April Easter Sunday Easter discount for Liberty Loyalty members. 24th April St. George’s Day British themed visual merchandising. MAY 5th May May Day Bank Holiday Bank Holiday competition to win a spa day or cruise, 11th May International Mother’s Day Pop-up card store and card-making in-store activity in the run up to Mother’s Day. 17th/18th May Diving: World Championships, London Cinema screening event or a competition to win tickets. 24th May Summer Half Term Starts Children’s activity in store. 25th May Monaco Grand Prix - Monte Carlo Cinema Screening and in-store games simulator. 26th May Spring Bank Holiday 40% Discount to members that have bought over 6 items in a month. JUNE 12th June World Cup Starts World Cup themed pop-up exhibition and football screenings in store. 14th June Trooping the Colour Children’’s workshop 15th June Father’s Day Pop-up shop 17th - 21st June Racing: Royal Ascot Millinery Event - hat style and fitting event & a competition to win a day at Royal Ascot 23rd June Wimbledon Starts Competition to win tickets to members that often purchase sports goods. 25th June Glastonbury Starts Artist singing and acoustic music event. 28th June Ramadan Begins (Muslim) JULY 6th July Wimbledon Ends A digital-lead treasure hunt for tickets and a Competition for frequent sportswear customers. 3rd - 6th July British Grand Prix - Silverstone Competiton to win tickets. 11th July T in the Park Competition to win festival tickets. 13th July World Cup Final Pop-up store selling merchandise to attract international consumers. 23th July Summer Holidays Start Seasonal Book Signing 27th July Ramadan Ends (Muslim) Restaurant event. 29th July Eid al-Fitr Gift pop-ups and sweet-making workshops for Liberty Loyalty members. AUGUST 1st August Edinburgh Festival Fringe Starts Theatrical Themed Visual Merchandise Displays 2nd August Oi Xi (Sometimes called Chinese Valentines Day) Interactive Table Event 25th August August Bank Holiday Discounted in-store spa treatments. 25th August Edinburgh Festival Fringe Ends In-store evening drama show and dinner. 31st August Summer Holidays End Collaboriation with a cruise company prior to the end of the Summer holidays. SEPTEMBER 7th September Italian Grand Prix Competition to win tickets. 24th - 26th September Rosh Hashanah (Jewish New Year) Cooking Classes In-store. OCTOBER 3rd - 4th October Yom Kippur (Jewish) Window displays and restaurant deal competitions for loyalty members. 4th October Eid al-Adha Social Media competition - asking consumers to post their photos to win a prize. 5th October Grandparents Day/ National Teddy Bear Day Children’s activity in store. 16th - 19th October Frieze Art Fair Creative workshops in-store, pop-up shop, artist book signing. 23rd October Diwali “The Festival of Lights” Lantern making event and travel competition. 31st October Halloween Costume-making workshops, Loyalty Scheme members invited to participate in a murder-mystery event. 38
POTENTIAL BRAND ACTIVITY
NOVEMBER 1st November All Saints Day Pop-up food shop. 5th November Guy Fawkes Night Liberty Loyalty Members Firework Display and dinner. 9th November Remembrance Sunday Visual merchandising and charity event. 27th November Thanksgiving USA USA Takeover, inclusing a pop-up diner and limited edition USA Liberty prints released. DECEMBER 16th December Hanukkah Starts Menorah lighting in-store. 20th December (Sat) Christmas Holidays Start Family arts and crafts activities. 24th December Hanukkah Ends Final day of Menorah lighting 24th December Christmas Eve Santa’s grotto and reindeer petting. 25th December Christmas Day N/A. 26th December Boxing Day In-store sale extravaganza, with further offers for loyalty scheme members. JANUARY 1st January New Years Day Palm readers and fortune tellers in-store. 6th January Epiphany School choir singing hymns in-store. 25th January Burns Night Scottish delicacy tasting. FEBRUARY 8th February Nirvana Day Reflective space in-store. 14th February Valentine’s Day Competition entry for a romantic gettaway with every purchase over £50. 19th February Chinese New Year Competition for a 10-day trip around China. MARCH 1st March St David’s Day School choir singing hymns in-store. 3rd March Clean Monday - Beginning of Lent Push the sale of motivational/self-help books. 4th March Shrove Tuesday / Pancake Day Luxury pancak pop-up store. 5th March Ash Wednesday Push the sale of motivational/self-help books. 17th March St Patrick’s Day Free Irish themed gift with any green purchase in-store. 30th March Mothering Sunday Weekend card making sessions for children leading up to the day.
By Rachel Eades
SEASONAL IN-STORE EVENTS
ollowing on from Liberty’s marketing relation to the cultural calendar, we aim to promote four seasonal event periods per year, specifically aimed at Liberty loyalty members. Over a short time period, each department will hold a specific event to their most frequent customers. After observing the treatment of loyal customers through a tallied observation of primary research, we are fully aware that Liberty aims to be able to consistently inform their members of new products specifically catered to themselves. Therefore, the seasonal events will be tailored towards their loyalty members, adding another exclusive element to the loyalty scheme in the hope that it will gain an increase in member numbers. Clients will be invited to a particular ‘department event’ based on their purchase history. Even though these events are very exclusive, it is always important to gain
more interest so each invitee receives a plus one and the option to request for more tickets if desired. Therefore, the events will be more socially-orientated and the client is more likely to attend having been given the option to have a plus one. Expecting around 200 visitors for each departments event, we want them to be as exciting and enticing as possible, incorporating elements of the cultural calendar to generate theme ideas. For example, aside from a competition to win Wimbledon tickets, the sportswear department could hold a British sports themed drinks event (see figure 22). Having collaborated with Nike, the two brands could collaborate on the event management, generating more press coverage. Brand ambassadors, celebrities, bloggers and press will be invited to each event in order to gain widespread brand recognition and a potential increase in store visits from a range of different target markets.
Furthermore, an event specifically catered to the beauty department could invite clients to teach themselves how to apply the cosmetics and beauty products via Perch interactive tables (see figure 23). This process is effective in engaging the client in an interactive way. It is personalized to the client and an efficient way to learn about the products. We predict in the current moment of technology trends and serge’s, that customers will be interested in trying out this new advanced technology which will boost numbers. The purposes of these events are really to keep important clients in the know of new products and gain some new ones. It is a way of keeping the store a stimulating modern atmosphere and boosting sales of new products. Enticing the perfect Liberty shopper into the store whilst creating a buzz. Written by Taymina Cabrita
Figure 22. Store layout mock-up
Figure 23. Perch Interactive Table
E VE NTS
iberty is renowned for its unique, heritage experience, reflected in part by their iconic patterns. Therefore, the launch event for iBeacons will aim to incorporate both of these qualities into an interactive evening of art and visual stimulation. The main aim of this event is to introduce geofencing and iBeacons to consumers, making them less sceptical of this potentially invasive technology. The event - exclusive to customers signed up to the Liberty loyalty scheme- will provide an innovative, unique experience that sparks the interest of potential consumers via social media feeds throughout the night. On arrival, attendees will be prompted to choose a colour to act as a visual representation of their journey throughout the event. This concept is influenced by a piece of interactive surveillance art called ‘You Are Here’ by artist Scott Snibbe (see figure 24). ‘You Are Here tracks and displays the paths of people travelling through a large public space. The system displays the aggregate paths of the last few hundred visitors overlaid with blobs representing the people currently being tracked’ (Snibbe, 2004). As they move around within the event, their individual journeys will be mapped onto a large digital screen on the ceiling of the event (see figure 24). By the end of the evening, this should create a vibrant, colourful piece of artwork that
all attendees have contributed to by simply attending. This pattern will then be printed onto exclusive Liberty scarves, which will be sent to the guests’ homes after the event. The reasoning behind the journey mapping is simply to aid interaction, whilst directly highlighting the invasive component of ibeacons in a positive way, in order to diminish scepticism towards it. By creating something fun, interactive and visually appealing using ibeacons, positive attitudes through association towards them will hopefully be created. The next stage of the event is the interactive print making room. Inspired by Topshop’s ‘Create Your Own T-shirt’ idea (see figure 25), which involved ‘large
IBEACONS LAUNCH EVENT
Figure 25. Leah Harper wearing a t-shirt she designed herself at Topshop instant print t-shirt
E N T V Figure 24. Event mock-up featuring ‘You Are Here’ artwork by Scott Snibbe
touch-screen devices’ that ‘invite you to swipe your way through a huge choice of print patterns, as well as a wild array of smaller individual images to layer on top’. This concept was described by Susan Postlethwaite, ‘director of the MA course in Fashion Futures at the London College of Fashion’ as ‘a really exciting way forward for design’ as it ‘means that people can produce things that they really want’ (Harper, 2013). This yearning for individualism is something that Henry Young suggests is apparent, particularly during purchase. He mentions that ‘almost all, if not all, material things we buy’ we do so due to ‘the characteristic of wanting to stand out above another’ (Young, 2004). Therefore, we decided to enable attendees to get involved in creating their
own prints using existing elements of Liberty patterns. Thus, allowing individualism and engagement to flourish throughout the event. Attendees will create these designs using interactive tables so that they can scroll through the various patterns and design elements with ease, to create a completely unique design. This design will then be uploaded directly onto the surrounding walls. By the end of the night, a room covered with unique patterns will have been produced, creating a visually stimulating environment that evolves and changes throughout the night, reliant on attendee interaction. These patterns created will then be used as wallpaper in43parts of the Liberty store, urging those who attended the event to visit the store. By allowing guests
direct control over the surroundings, consumer loyalty can hopefully be promoted through involvement with the Liberty London brand and retail environment. By directly approaching the privacy issue that occurs with iBeacons and creating engaging art out of it, the exciting possibilities of this invasive technology are put forward to consumers. Hopefully, this translates into a unique event that will generate talk and make people want to attend; therefore acting as an incentive for the public to sign up to the Liberty loyalty scheme.
Written by Abbie Spencer-Lane
e have devised Liberty as ‘the anchor’, a journey’s end for a widespread consumer base, ranging from tourists to Londoners. Understanding that the Liberty store is not easily accessible for our entire target market, we aim to make Liberty a primary destination for anyone to visit when they do come to London. Drawing on old London heritage, the Liberty retail journey entails a modern path to a historical haven. Through the uses of new and current technology we have aimed to create a course with a direct route into the home of Liberty Of London. The advantages
of in store visits can boost sales, popularity, ambience and general interest and attention. We have studied the heritage of the brand and made sure to keep elements of tradition – not letting the modern techno trends take over the majestic Tudor building. The loyalty and rawness of the original members of the store are magnified through our loyalty schemes. With this keeping in mind we have created and updated efficient and easy means to shop. Exemplifying the notion of coming into the Liberty store. Written by Taymina Cabrita
Figure 26. Oscar Wilde
“Liberty is the chosen resort of the artistic shopper.” - Oscar Wilde (see figure 26)
Covert observation of Liberty London in-store consumer behaviour. Observing the following behaviours: customers with phones in their hands customers approached by sales assistants customers waiting for a busy sales assistant (See appendix 3)
To collect information on in-store consumer behaviour at Liberty London in order to gain a better understanding of how consumers behave in-store, so we can establish ways to enhance their in-store experience.
Saturday 17th May 2014 12- 12.20pm
Liberty London store shoe department
120 Liberty London customers shopping in the shoe department. Convinience sample.
Covert observation of Liberty London consumers completing an in-store purchase. Observing the following behaviour: Customers without a Liberty Loyalty card at check-out Customers that paid in cash Customers that paid on card Customers that sought advice from an assistant before they made a purchase. (See appendix 3)
To identify the way in which customers at Liberty London purchase products, in order for us to gain a better understanding of how to improve the in-store purchasing experience for customers.
17th May 2014 12.30- 12.50 pm
Liberty London, beauty department.
44 Liberty London customers that purchased a product in the beauty department. Convinience sample.
Online, anonymous questionnaire on attitudes towards loyalty schemes. (See appendix 1)
To identify and further our understanding of consumer views on loyalty schemes in order to enable us to create a new one/ adapt existing loyalty schemes.
4th- 27th May 2014
Online (surveymonkey.com) 36 members of the public. 17 males, 19 females aged 20- 57 Snowball sample (asked friends and family to pass along to others) Posted on reddit.com to the general public (advertised for Liberty consumers only to answer)
Questionnaire on Liberty in-store experience (See appendix 2)
To identify and further our understanding of Liberty consumer attitudes towards interactive tables and biometric payment methods, and what they would like from their Liberty in-store experience.
17th May 2014
20 Liberty London customers found walking out of the store. 12 females, 8 males Convinience sample.
S T R E N G TH S
People didn’t know their shopping behaviour was being observed so our findings should be accurate.
May have only recorded data from a certain type of consumer at Liberty London as it was only for 20 minutes at one point on a saturday, in the shoe department so it may not be representative of all consumers.
A relatively large number of consumers were observed making the findings more representative. Only 1 person was observing, therefore they may have missed some behaviour. A small number of behaviours (3) were being observed so the likelihood of the observer missing data was lessened. Only observing for 20 minutes means that the observer was likely to maintain concentration for the duration and not miss behaviours.
Only behaviour recorded was that relating to the 3 behaviours identified before the research was conducted- this could mean that important data could have been missed. Lack of qualitative data- could have improved our understanding of the reasoning behind the behaviour observed.
Gave us a good understanding of consumer behaviour in Liberty London shoe department, and highlighted a potential problem of busy sales assistants for us to provide a solution to. People didn’t know that their purchasing behaviour was being observed so our findings should be accurate.
May have only recorded data from a certain type of consumer at Liberty London as it was only for 20 minutes of one point on a saturday, in the beauty department so it may not be representative of all consumers.
A small number of behaviours (4) were being observed so the likelihood of the observer missing data was lessened.
Only 1 person observing, therefore they may have missed some behaviour.
Only observing for 20 minutes means that the observer was likely to maintain concentration for the duration and not miss behaviours.
Only behaviour recorded was that relating to the 3 behaviours identified before the research was conducted- this could mean that important data could have been missed. Quite a small number of consumers were observed therefore making the results less representative.
Gave us a good understanding of the purchasing behaviour of customers in the beauty department of Liberty London and highlighted a preference for card payments over cash, suggesting that Liberty customers may be open to the idea of biometric payments as they don’t have to carry cash around. Gained qualitative data so we recieved a better understanding of what consumers want from loyalty schemes and their reasons behind this.
Lack of qualitative data- could have improved our understanding of the behaviour observed by asking consumers why they chose a certain method of payment, or why they did/ didn’t use a loyalty card.
36 responses gives the results validity.
Those who answered weren’t necessarily Liberty consumers, therefore the results aren’t directly representative of what the Liberty London consumer wants from a loyalty card. However, some of the responses (such as wanting discounts and “freebies” from a loyalty scheme) were mentioned by nearly all of the participants, suggesting that the results could potentially be applicable to Liberty consumers.
Using two different sampling methods allowed us to gain a variety of participants, making the results more generalisable.
The snowball sampling method could have limited the type of participants that answered, as it is likely they would have all been from the same cukture/ background.
Gained qualitative data allowing us to better understand the reasoning behind why customers would/ would not use interactive tables in store.
20 respondents is not a significantly large number, so the results may not be generalisable to all Liberty consumers.
Allowed us to see if Libery consumers would be open to in store technology, and if they feel it would benefit their shopping experience.
Did not gain qualitative data in regards to biometric payments. We could have benefited from asking customers why they would/ would not be interested in fingerprint payments, or if/ why they would perfer these methods over traditional methods.
All the respondents were Liberty consumers, so our results were specific to their waants/ needs. We would have hopefully caught people in their “hot state” as they had just left Liberty, therefore resulting in more honest responses.
As participants were answering the questionnaire in the presence of the researcher, they may have felt required to answer in a certain way in order to please the researcher. Therefore, the results may not be completely honest.
Written by Abbie Spencer-Lane
APPE ONLINE SURVEY RESULTS
LIBERTY IN-STORE PHOTOS
SELFRIDGES INTERVIEW TRANSCRIPT
IN-STORE SURVEY RESULTS
SURVEY MONKEY RESULTS ///
Infographic by Taymina Cabrita
IN-STORE QUESTIONNAIRE RESULTS
IN-STORE OBSERVATION TALLY RESULTS I sat in Liberty London’s shoe department between 12pm – 12:20pm on Saturday 17th May and observed consumers’ behaviour as they shopped. In the time I was sat there, 120 customers came into the department. I collected results for the following: BEHAVIOUR HOW MANY? Customer had phone in their hand 158 Customer approached a sales assistant 90 Customer waited for a busy sales assistant 70 I then spent a further 20 minutes in the beauty department nearby a cash desk from 12:30pm – 12:50pm, whereby I observed 22 customers complete a transaction.
BEHAVIOUR HOW MANY? Customer didn’t have a Liberty loyalty card when prompted at checkout Customer paid in cash 6 Customer paid on card 38 Customer sought advice from an assistant before they made a purchase
Conducted by Charlotte Cain
INTERVIEW Conducted by Rachel Eades
As part of our primary research, we were able to get into contact with Hazel Kay, Head of Marketing at Selfridges. We had an informal telephone interview with Ms Kay, which helped us to grasp an idea of how London department stores are looking at targeting their consumer. 1. How do you split up your yearly campaigns? We have six main marketing campaigns per year. These each last for around 6 weeks and we tailor all of our in-store events, visual merchandising, pop-up shops and social media themes to the current campaign. For example, the Boardgames campaign, which has just finished, generated a lot of new customers with the opening of our skatepark in association with HTC. Over six thousand people entered the skate park in its first three weeks, and so our creative ideas that go alongside the usual store campaigns are extremely important in increasing our customer base. Our average consumer is 35 years old, and so we need to make sure each campaign period targets people of all ages. We are currently working on our October and November campaign, which will be called Masters of the Universe. 2. Which departments have the highest sales figures? It varies from year to year. Currently our beauty and food departments are doing very well, and the womenâ€™s fashion figures need to increase slightly. We review the trade for each department every week, and if a certain departmentsâ€™s figures are down then we try to be extremely quick at thinking up an idea to help increase the purchase numbers. 3. How often do you have in-store events? All the time! Each department sorts out their individual events, and so thereâ€™s always something going on. We tend to collaborate with brands we have in-store, often hosting collection launches or restaurant events. We also have a lot of book signings and spokesperson talks. Our current campaign is The Beauty Project, for which we are hosting a wide range of events from our exclusive Fragrance Lab pop-up to Beauty expert advice from make-up brands such as BareMinerals. 4. What kinds of loyalty schemes are currently in place? A We have a Selfridges Account card which allows customers to receive event invitations early and extra discounts and sales. However, the Selfridges gift cards tend to be far more popular amongst consumers. 5. How important do you feel social media is in bringing customers into the store? A Social media is very important for us to let our customers know what it happening in-store on a daily basis. Using sites including Pinterest, Twitter, Facebook, Instagram and Google+, we understand that the tone of voice is key in enticing the customer. With Selfridges being a fun and upbeat brand, we want to ensure our social media presence is a more personal and friendly tone. 6. Which social media sites are the most useful to the store? We have recently noted that Google+ is one of the best forms of social media for showing how-to videos. Therefore, we are thinking of tailoring our Google+ platform purely for the beauty department. Although it could be used to show fashion films, it has been proved that beauty and make-up tutorials are watched more frequently, and so we will show our fashion films on other platforms such as Instagram. We are also planning on utilising social media platforms Weibo and We Chat to entice our international consumer. I expect that many brands will start to use Weibo more in the near future. 7. Which forms of new technology do you utilise within the business? Connecting online with offline is a key tool in targeting new customers. We try and bring an interactive element into as much of the store as possible. For example, last year we showcased interactive technology in our Nike window displays, which featured kinetic energy to connect with the speed and heigh of passers by. We also use interactive tables within our pop-up spaces. In our Denim Studio, we currently have the Jeanius Bar; this touch-screen interactive table has street style images, fit guides, runway images and an interactive catalogue of all Denim products available for purchase. 8. Which types of consumer do you tend to target the most? With our average customer at an age of thirty-five, we do target groups of all ages. We stock a widespread range of brands, meaning that there is something for everyone within store. However, our international consumers currently account for a quarter of the sales within our London flagship store, and therefore we are looking at branching out our branding to international consumers and tourists in a more personal and direct way. 61
62 Written by Emily Norris
SWOT ANALYSIS ON OUR BIG IDEA
STRENGTHS Maximum contact, building customer relationships Impulse purchases Push notifications through geofencing can bring about a sale that wouldn’t have existed without it “Destination” idea is in keeping with the Liberty brand ethos WEAKNESSES People can find loyalty schemes based on past purchases very intrusive Store isn’t accessible to consumers outside of London as such Consumers might find push notifications annoying Consumers might ignore push notifications OPPORTUNITIES Cultural calendar targets a variety of consumer segments, whilst building lifestyle into the brand Deviates consumers away from the solely online world, and merges the two Can bring in younger consumers Introduction of international bank cards could increase tourism Not many department store are pushing technologies like iBeacons, so Liberty’s could lead the way Seasonal events could drive positive PR and media coverage THREATS Advanced technology (like iBeacons) might discourage older consumers Fingerprint payments might pose a concern to some consumers High technology could take away the focus on the heritage driven values of the brand Could become too much of an experience, with consumers just seeing it as a show-room (dip in sales)
PEST ANALYSIS ON OUR BIG IDEA
POLITICAL Change in Chinese legislations has made it easier for Chinese citizens to move to the UK ECONOMICAL Maintenance of technological systems International customers often benefit from the discrepancies amongst international currency valuations People’s disposable income/spending habits SOCIAL Tourists from China and the Middle East increased by 10.5% in 2013 Liberty x Nike collaboration – a response to the trainer craze
TECHNOLOGICAL Technological advances are becoming cheaper and more widespread Unlike SWOT, this strategy is more directly aimed at the external macro environmental factors that might be affecting the position of Liberty’s, the reasons behind growth or decline in the market and also identify new directions for the business as a whole.
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