Consumer Experience [CX] Evolution - Full Report - Latitude

Retail 2019
January 2019
CONSUMER EXPERIENCE EVOLU TION

This is just the start…
The following is an excerpt from our larger, 2019 Consumer Experience Evolution report.
To receive the full report, a live presentation, or request more information, please
contact us via the information below.
Thanks for reading! We look froward to talking with you soon.
General Info
Learn more online - lat.co
New Business
Erin Crosier
ECrosier@lat.co
Research & Innovation
Carter Jensen
CJensen@lat.co

Consumer Experience [CX] Evolution
Carter Jenen // Latitude
Lat.co
Introduction
In your grandparent's day, innovation described the model-T Ford, a vaccine for polio, penicillin, the electric guitar, and putting an
astronaut on the moon. As often as people talk about innovation, they seem to have forgotten its true meaning.
Innovation signifies an object or idea that enhances life instead of flooding it with headaches, distraction, confusion. And yet, all too
often, that’s exactly what happens when marketers and companies throw tech at the consumer in the name of innovation.
Innovation done for the sake of innovation means little unless guided by the realization that true innovation simplifies life and allows
humans to be, well, more human.
If companies, whether brick-and-mortar retailers or digitally-native startups, want to remain relevant to the consumer in the digital
age, they need to realize that innovation means simplification.They also need to keep in mind that today’s consumer is highly
connected and different from consumers of the past in how they shop and in what they expect from their shopping experience.
Even with the rise of ecommerce, brands must recognize that physical retail still has a place. Unless customers change their desire to
physically interact with products as part of a memorable experience (unlikely), the physical component will always find a place in retail.
If willingness leads a company to innovate by blending physical and digital to elevate user experience and meet expectations, the
company will find success. If not, they’ll join the rest of the companies in the dust that either ignored or misunderstood the true
meaning of,“innovation.”

We are told that innovation is the most
important force in our economy, the one
thing we must get right or be left behind…
Text Excerpt from :
New York Times

But that fear of missing out has led us to
foolishly embrace the false trappings of
innovation over truly innovative ideas that
may be simpler and ultimately more effective.
Text Excerpt from :
New York Times

1. The Connected Consumer
2. Online Commerce Evolution
3. Retail Revival
4. A New World of Consumer Experience (CX)
ExperienceConsumer

No matter how many smartphones there are or how advanced they become, they still can’t
extend the day beyond 24 hours.That, regardless of technology, remains the same. And, while
technology can’t change this, it can augment, for better or worse, how people spend those fixed
hours each day.To remain relevant, brands need to ask themselves about how they can optimize
the consumer’s connection with technology in a way that contributes to the health and
productivity of their everyday lives. In essence, tech needs to fit more seamlessly into the
consumer’s lives, not just fit into more hours of the day.
The Connected Consumer

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Analysis show that multitasking leads to a 31-hour
day for the average American adult… 12 of which are
spent consuming tech and media.
Analysis show that multitasking leads to a 31-hour
day for the average American adult… 12 of which are
spent consuming tech and media.

1. Behaviors averaged over 7 days.
2. Other includes browsing websites, offline reading, cinema, out-of-home, etc.
WORK &  
WORK RELATED
5:22
7:03
6:27
SLEEP
OTHER NON-WORK ACTIVITIES
cooking & housework,  
personal & household care, leisure,
ﬁtness, community & other activities,
eating & drinking
MEDIA AND CONSUMER  
TECH ACTIVITY
video, audio, messaging & social
media, gaming, other2
AVERAGE DAY BY ACTIVITY PER ADULT (AGE 18+)1, U.S., 2017, HOURS:MINUTES
4:55
2:14
1:20
1:07
2:31
12:07
Source:Activate Tech & Media Outlook 2019

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Technology to the rescue from itself.

Evolved Interfaces
Simplified Customized

Amazon Echo Installed Base
0
10MM
20MM
30MM
40MM
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
InstalledBase,USA
0
10K
20K
30K
2015 2016 2017 2018
NumberofSkills
Amazon Echo Skills
2015 2016 2017
Source:Mary Meeker Internet Trends 2018

95%
95%
70%
80%
90%
100%
2013 2014 2015 2016 2017
WordAccuracyRate
Google Threshold for Human Accuracy

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Why do we see this growth?
Considered the new UI
‣ Simplified
‣ Minimal Learning Curve
‣ A few words vs. 30+ Taps
‣ Visual feedback
‣ Etc.
EX PAN DED CASE STUDY

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Personalization
New Streams of Data =
+ Enhanced Engagement
+ Deepened Experiences

Music VideoNewsfeed Discovery
170MM
Spotifys
125MM
Netflixes
2.2B
Facebooks
200MM
Pinterests

100MM+
Snap Map
MAUs
17MM**
Nextdoor
Recommendations
20%
UberPOOL Share of All
Rides, Where Available*
100MM+
Waze
Drivers
Real-Time
Social Stories
Often Real-Time
Local News
Real-Time
Transportation
Real-Time
Navigation

Note: Positioning represents year of either product announcement or launch date. List of devices is representative, not exhaustive.
1. Motion detection became available early 2015.
2. Connects with existing Nest Cameras. Works with Google Assistant as of April 2018.
more useful across more activities
2014 2015 2016 2017 2018E
OUTDOOR
VIDEO
DOORBELL
ONE
INDOOR
VIDEO
DOORBELL1
CAM PAN
PLUS
IQ
STICK UP CAM
MINI
MAX
2
HELLO
DOORBELL
GOOGLE3
HOME HUB
3
SMART SPEAKERS AND CAMERAS—SMART HUBS
SMART CAMERAS
SMART SPEAKERS
LINGLONG
DINGDONG
XIAOYU
(LITTLE FISH)
GENIE X1
ALIGENIE 2.0
QROBOT (2ND GEN)
LITTLE FISH VS1
BEANQ
TINGTING SENGLED
Source:Activate / WSJ Tech

Home Entrance
• Keyless entry
• Notiﬁcation when family members
are home
• Secure drop-offs
• Secure entry for maintenance
workers
Living Room
• Early emergency detection (e.g. ﬁre, water leak)
• Video feeds with friends and family
• Intercom system
• Smart home hub
Kitchen
• Early emergency detection (e.g. gas leak)
• Cooking recommendations
Garage
• Smart home controller
• Monitoring car in garage
Bedrooms
• Style recommendations
• Smart home controller
Home Gym
• Digital personal trainer
(e.g. corrects form)
Baby’s Room
• Smart remote baby
monitoring

Latitude Case Study Excerpt - C. Jensen
Learn More @ lat.co
Ever the innovator, Snapchat recently rolled out a feature that
allows users to identify products and then shop for them
online. By pressing down and holding on a product seen
through their phone’s camera, Snapchat users can view an
“Amazon card” that contains simple product info. Clicking on
the card opens up the user’s Amazon app or Amazon.com
where Snapchat users remain only one click away from
purchasing the item they just identified.
Snap’s Visual Search

Learn More @ lat.co
This takes place without the app user going to the store,
researching the product using Google or Amazon’s search
bar, or even exiting their Snapchat app. With its new feature,
Snapchat uses technology to give shoppers easier access
to information and presents it to them in a place they
already spend significant time each day. Snapchat
leverages the strength it already has--an advanced camera
feature--to make shopping easier for the customer. For the
customer and Snapchat alike, that’s a win, not a distraction.
Snap’s Visual Search
LEARN MORE GET IN TO UCH

Lat.co
In Conclusion
While still in it infancy, new technology, such as voice recognition and smart vision, give companies the
ability to augment the consumer’s experience of daily life for the better. Companies that use existing and
emerging tech to these ends will continue to attract consumers looking for ways to live better and less
stressful lives, not more complicated ones. In the end, the ability of technology to meet the needs of the
consumer matters more than the technology itself. Whether it’s voice or vision, technology that intrudes
less and elevates user experience deserves credit as true innovation.

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‣ Consumer connections are saturated
beyond benefit.
‣ New platforms bring simplicity and
personalization, improving the overall user
experience.
‣ Brands must rapidly adapt to reach in an
effective way on current and new platforms
of choice.
Retailer / Brand Next Step

Lat.co
With the widespread use of mobile technology, ecommerce found a permanent place in the world of retail. For
today’s customer, online shopping provides ease, comfort, and efficiency. But, for all its popularity and for how
much it changed consumer expectations, people still fill the checkout lines of traditional brick-and-mortar
retailers, and not just on Black Friday.
This begs the question: with all the innovation of online shopping, what does physical retail still have to offer?
As it turns out, it offers quite a bit, especially if it takes a page out of the ecommerce playbook and uses
technology to streamline the customer’s path-to-purchase.
Evolving Online Commerce

E-Commerce Sales + Y/Y Growth
0%
4%
8%
12%
16%
20%
$0
$100B
$200B
$300B
$400B
$500B
2010 2011 2012 2013 2014 2015 2016 2017
E-Commerce Sales Y/Y Growth
E-CommerceSales,USA
Y/YGrowth

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Growth & Evolution
Beyond a simple click and buy, e-commerce now covers a
large, more wholistic portion of the path to purchase.
eCommerce will grow faster than physical retail to
reach $6T globally by 2022.

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Search &
Discovery
Research LoyaltyTransaction
(& Fulfillment)

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Search &
Discovery
(& Fulfillment)
54% of product searches start on Amazon

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45% of teens now say they are
online on a near-constant basis.
Text Excerpt from :
Pew Research Center

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Mobile & Connectivity
Reaching Nearly 100%
Saturation in the US
Social
Dominating user time and
investment beyond gaming and
general communications.

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An increasing focus on a select few media
platforms are forcing the hands of e-commerce
brands at all steps of the consumer journey.
Social Media
‣ Massive User Base
‣ Minimal Barrier to Entry
‣ Information & Customization
‣ Optimized UX
‣ Immersive Media Environment
‣ Familiarity
‣ Security and Privacy*

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Baby Photos / Engagements /
Your Racist Uncle Ads
Brand Love / Familiarity
ecommerce or Amazon
In-Store/ Physical Retail

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Social Commerce
The ability to make a product purchase from a third-
party company within the native social media
experience.
For example, you can browse and compare products on Facebook and then make the
purchase on Facebook itself vs. going to the company’s site to make the purchase.

Lat.co
Text Excerpt from :
GlobalWebIndex
Search &
Discovery
(& Fulfillment)

The world of wholistic social commerce has
been in development over the last 5+ years
but now, today, these platforms can own the
complete user journey.
The days of brands using social platforms for
only top- of-funnel hype are long gone.

Lat.co
Facebook Live Brings in
Commerce Shopping
‣ Facebook Live is testing a feature for merchants to
demonstrate and describe products for viewers to buy.
‣ Users can simply take a screenshot of a product shown in
the videos and use the Messenger chat app to send the
image to the merchant.
‣ Once the message is received, the vendor can transact the
purchase all via the Messenger platform.
‣ The test group of independent sellers in Thailand have
found success in the new 'Live' to offer products such as
cosmetics, handbags and clothing.
Broadening the focus on commerce.
Facebook Live's test of video shopping is a logical progression for the social
network as it seeks to add more video content and expand its e-commerce
features.
As QVC, which merged with the Home Shopping Network last year, and other
similar video-based selling platforms have demonstrated for years, live video
demonstrations of products are an effective sales and marketing tool.
Merchants can get immediate feedback from viewers who respond to a call to
action with a direct purchase or with more questions about the products
being demonstrated.

Learn More @ lat.co
Shopping via
Instagram Stories
When was the last time you shopped on Instagram? If you just thought to yourself,
“well, never,” you’re not alone. But, with over 300 million people using Instagram
stories every day, merging the social experience of Instagram with online shopping
makes sense.
Out of those 300 million plus users, thousands use Instagram stories to discover
and learn about products each day. Until now, the only missing aspect of online
shopping from Instagram was the ability to, well, actually shop.

Learn More @ lat.co
Shopping via Instagram Stories
By allowing users to discover, learn, and now shop for products with a
simple click, Instagram stories’ shopping experience changes that and
completes the path-to-purchase.The feature meets people where they’re
already at—on Instagram and that’s the beauty of it.
For their part, Instagram makes it easy for brands to participate. And, for
those that do, they receive access to thousands of new impressions in a
space with a guaranteed audience who has easy access to product
information and the ability to click “purchase.”
People might not be spending as much time at traditional retailers any
more, but they are on Instagram. So, why not meet them there?

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The new shopping channel can now be thought of as
the Pinterest of shoppable posts on Instagram:
consumers can tap on the channel (which will appear at
the top of the Explore page, like other ones already do)
and see shopping posts from brands they already follow
and ones the algorithm thinks they will like as well.
The update isn’t that surprising considering Instagram
also announced that more than 90 million users tap on
shopping posts to see the product tags.
Shopping & Explore

If Ecommerce is so great… Why does my
Sunday shopping experience still look like this?

Sources: Activate analysis, Activate 2018 Consumer Tech & Media Research Study (n=1,948), Bloomberg, Company press
releases, Company sites, Coresight Research, eMarketer, Euromonitor International, Hexa Research, IBISWorld, Institute of
High
HighLow
by Auto, Jewelry and Furniture
APPAREL &
SHOES
20%
BEAUTY & 
PERSONAL CARE
10%
SPORTING
GOODS
26%
CONSUMER  
MEDIA
69%
FURNITURE  
15%
AUTO & PARTS
4%
GROCERY
3%
Consumer Out-of-Pocket Spend per Purchase
AverageShoppingTime
Low
FUTURE ECOMMERCE
BATTLEGROUNDS
JEWELRY
18%
TOYS & GAMES
52%
CURRENT
ECOMMERCE BATTLEGROUNDS:
Low online penetration
despite low product complexity
% 2017 share of online retail
sales in product category
PRODUCT CATEGORY SEGMENTATION MATRIX

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‣ Convenient, fast, and accurate delivery
‣ Quality products (e.g. fresh)
‣ Competitive and transparent prices
‣ Efficient replenishment / subscription models
‣ Tech for more immersive shopping experience
‣ Wider selection (e.g. access to niche products)

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Advancements in technology
now make these categories
within reach.

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“As more and more people use Amazon
Prime and are used to next day or same-day
shipping, every retailer is facing increasing
consumer expectations.”
—CEO David Gilboa

Learn More @ lat.co
Text Excerpt from :
Retail Dive / Retailer of the Year - 2018
Target in 2018
Feeling the effects of changing consumer expectations and behavior,
Target witnessed declines in its sales, quarter after quarter. Rather than
fold to the pressure,Target accepted the challenge of the digital age and
invested 7 billion dollars into the development of both brick-and-mortar
and digital assets.The goals blend the best of digital and physical
commerce in a way that delivers a more convenient shopping experience
for the customer instead of inundating them with a gush of new tech.The
results? Target reversed its fortunes and achieved record setting traffic
and sales growth.
As they retool for success in the digital age,Target now focuses on an
expanded retinue of “cheap chic” owned brands, small stores that fit the
local vibe, and increased convenience in delivery options for the customer.

Learn More @ lat.co
Text Excerpt from :
Retail Dive / Retailer of the Year - 2018
Target in 2018
Target’s list of 2018 accomplishments also include:
‣ Rolling out a reservation and curbside pickup system
‣ Partnering with Shipt to offer same-day shipping
‣ Remodeling stores to fit evolving consumer expectations
‣ Debuting eight new private brands
‣ Cutting the ribbon on 28 small format stores, curated to local
taste (with 130 set as the goal for 2019)
‣ Consolidating both the Target and Cartwheel apps for mobile
devices

Tools of Empowerment
Expensive, right?

Lat.co
Standard Cognition

Learn More @ lat.co
To ride a bike you’re thinking about purchasing, you need to visit a
store, but to look at a 3D rendering of the bike you’re thinking
about purchasing, you only need Shopify.
Thanks to its recent adoption of augmented reality (AR)
technology produced by Apple, Shopify allows businesses to snap
a few pictures and easily create 3D models of their goods before
uploading them to their online stores. From there, online
shoppers visiting the store through Safari can view the 3D model
by looking through the camera on their smartphone or tablet.
Shopify AR

Learn More @ lat.co
Shopify AR
To make things easier, the customer can do it all without
downloading a separate app. An AR model won’t replicate
the sensation of actually riding a bike. But, the technology
gives online shoppers the next best thing — a way to
visualize how the bike (or any other item) fits into their life by
first visualizing how it fits into their living room.The best
part? Shopify delivers the experience to the customer
without the hassle of going to the store or exiting the online
store.

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Source:
TBD / ENTERED
As ecommerce gains momentum and consumers change their expectations as a result, physical retailers
face the realization they must also change their ways to meet consumer expectations. Customers now
figure that if Amazon can deliver them goods with ease and affordability, why can’t other retailers and
brands do the same? In the end, there’s no reason they can’t. New tech, used correctly, can augment the
physical retail experience to meet consumer expectations.
In Conclusion

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‣ E-commerce is continuing to grow but, more
importantly, evolve.
‣ Brands must focus on platforms of choice by
their consumer.
‣ New tools are enabling brands of all sizes to
embrace new technological advancements.

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Today, technology has an effect on every point along the path-to-purchase and there’s no mystery
why. Online tools augment every step along the user journey with smartphones specifically acting
as the glue that binds brand touchpoints together.
Consumer adoption of ecommerce and mobile technology shows customers want tools that
enhance rather than complicate their retail experience. Since consumers ultimately choose for
themselves the experiences they want most, using tech to ease and elevate the consumer
journey matters more than anything else a brand can do to remain relevant.
Physical Retail Revival

-6%
-3%
0%
3%
6%
$0
$1B
$2B
$3B
$4B
2000 2002 2004 2006 2008 2010 2012 2014 2016
Volume Growth Y/Y
Physical Retail Sales + Y/Y Growth, USA
PhysicalRetailSales,USA
Y/YGrowth

Amazon solved buying but
killed shopping in the process.
-Emily Weiss, CEO Glossier

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Traditional Retailers
Innovating to meet the new
demands of the current customer.
DTC Brands
Online brands look to cut through
the saturated landscape by
creating in-demand retail
experiences.

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Search &
Discovery
Research Transaction
(& Fulfillment)
Loyalty

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It’s Beyond Apps & Websites
Source:
TBD / ENTERED
Mobile smartphones continue to gain attention not because
of the fancy brand apps but the fact that these devices have
proven to be the glue that binds together brand touch-
points for the shopper.
These computers in pocks have provided a hub for data
collection, payment, store and location-based experiences,
convenient purchasing and much more.

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As online tools now have the ability to augment and
improve every step of the use journey, physical
retailers must do the same to keep pace with
evolving consumer expectations.

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Enhancing every step of retail experiences with new
technologies.
Augmented Retail
Augmented Humanity ->

Learn More @ lat.co
GH Labs
GH Lab, a pop-up boutique store in the Mall of America, lifts the
best products off the pages of Good Housekeeping Magazine and
allows the customer to interact with them in a way that goes
beyond looking at a picture.
Curated to feel more like a living space than a showroom floor, the
sections and rooms of GH Lab allow customers to better visualize
themselves using each product.To simplify the experience, GH Lab
features one top-ranked item from each product-category rather
than inundating customers with an overwhelming set of options.
What’s that mean? Well, you’re only going to find one blender at GH
Lab, but you can count on it being the best one out there.

Learn More @ lat.co
GH Labs
Good Housekeeping adds value to the physical retail
experience by testing, reviewing, selecting, and curating, the
most practical and functional products and presents them
in an authentic space. When it comes time to purchase,
Amazon contributes their own value-adding component to
the shopping experience.

Learn More @ lat.co
GH Labs
After deciding to purchase an in-store item at GH Lab, shoppers
add the product to a digital cart rather than a physical one by
scanning product’s “smile code” using their Amazon app. From
there, Amazon ships the product directly to the customer’s home.
Liberated from the fear of dragging their heavy shopping bags
around the Mall for the rest of the day likely encourages some
customers to purchase items they wouldn’t otherwise.
By combining physical product interaction with a digital
checkout, GH Lab provides easier and guaranteed access to
products for the customer, creating a more convenient shopping
experience. GH Lab represents a fusion of digital and physical
retail that uses technology to meet customer needs and enhance
the retail experience.

Learn More @ lat.co
Target + Augmented Reality
While they still have some catching up to do with Amazon and Ikea,
Target’s recent foray into augmented reality (AR) utilizes this new
technology in a way that gives online shoppers something they
couldn’t find before—a view of what a product looks like in their
home. Using their smartphone’s camera in combination with Target’s
mobile app allows customers to drag 3D renderings of items, like
couches and lamps, from the online store and place them into their
home.
Original Source
Mobile Marketer

Learn More @ lat.co
Original Source
Mobile Marketer
Target + Augmented Reality
Although a bit clunky at times, the AR feature
demonstrates Target’s initiative to blend physical and
digital retail in a way that leads to a more convenient
user experience and meets changing consumer
expectations. In the same way that Target offers
customers an easy and enjoyable experience in their
brick-and-mortar stores, the company intends to deliver
the same sense of value to meet the shifting
expectations of shoppers in their digital space as well.
Target’s adoption of AR proves that, even as it works out
the kinks.

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For the Sake of Digital
Text Excerpt from :
SalesForce / 2018
Experiences augmented by digital touchpoint that
look to enhance, rather than complicate the path to
purchase.

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‣ Augment each step in the consumer journey with
technology to better match the increasing
expectation of today’s consumer.
‣ With this;however, ensure all additions and
‘improvements’ are in the name of creating a
better experience, not adding friction or barriers.

Lat.co
Direct To Consumer (DTC) Brands
A form of commerce that involves a direct transaction between
manufacturer and buyer, often enabled through mobile and digital
channels, that allows brands to cut out the retailer 'middlemen'.

Lat.co Image Source:Sup[ply Chain Brief

Learn More @ lat.co
New Technologies DSC’s
Success Possible
A video on Youtube, a social media platform to spread it to millions, and
an affordable subscription to an online ecommerce platform— what
do these ingredients all have in common? After coming together in
2012, they led to the success of Dollar Shave Club (DSC).That’s all it
took for this small online replenishment/subscription company, selling
razors for a dollar a month, to successfully disrupt a 3.5 billion dollar
industry. No celebrity ads. No multi-million dollar budgets. Simple tech
available at a low cost (Amazon Web Service) and no cost (Youtube and
Facebook) launched an online business that Unilever later purchased
for one billion dollars. One billion dollars exchanged for a company
created out of a small initial investment, some creativity, and highly
accessible tech that just about anyone can afford and learn how to use.

Learn More @ lat.co
New Technologies DSC’s Success Possible
The success of Dollar Shave Club proves businesses can succeed in
the digital age by using technology without serious investment. It
also highlights the type of shopping experiences customers prefer
most in the age of digital retail.Yes, over 25 million people watched
Dollar Shave Club’s launch video because it made them laugh. But,
thousands of people eventually subscribed to DSC's monthly service
because they liked the idea of buying a quality product and having it
automatically shipped to them each month without having to think
about it, write a reminder, or visit the store. Dollar Shave Club
achieved success by offering a product and service that used
technology to simplify the user experience and conform to consumer
expectations.

Learn More @ lat.co
New Technologies DSC’s Success Possible
The lesson companies can take from DSC is this — if
they want to find success in the digital age, a funny video
is a good start, but an elevated user experience made
easier through technology is more important than
anything. Innovation means using technology to simplify,
not complicate.

Lat.co
Now, with more online brands in the ether than once imaginable,
digitally native direct-to-consumer darlings have realized that a
physical footprint (a small and highly curated one) is essential to
cutting through the noise, building brand awareness and giving
customers a tangible experience they'll remember.
— Retail Dive, December 2018

Lat.co
850+ stores / 5 Years

Learn More @ lat.co
Text Excerpt from :
TBD
“Stale” — a term retail owners often avoid when describing their own
industry but one willingly embraced by Mark Ghermezian to explain his
motivation for creating Fourpost.
Ghermezian, whose family owns the Mall of America where Fourpost
recently opened, claims Fourpost breathes new life into the all-too-
common “stale” retail experience for customers and brands alike. It
does so by providing space for local, emerging, and digitally-native
brands with limited reach to show off their stuff and give customers
the chance to touch, feel, test, and interact with their products and
learn from product experts in real time.
Fourpost @ MOA

Learn More @ lat.co
The 10,400 foot store showcases products ranging from home
decor and beauty to beer, cheese, and candles.These aren’t huge
brands with vast marketing budgets or products on the shelves of
large retailers across all 50 States. Despite that, each brand finds
a place at Fourpost.There, they interact with customers while
customers discover and interface with unique and authentic
brands, that, while popular online or in their small circles, might
otherwise remain hidden and out of reach.
Fourpost @ MOA
LEARN MORE GET IN TOUCH

Lat.co
We understood one reason that all
stores had started to look the same
was that the process for opening a
physical store, especially in New
York, is nearly impossible.
— SHOWFIELDS Co-founder and CEO Tal Nathanel via PSFK

Learn More @ lat.co
Text Excerpt from :
TBD
The Market @ Macy's
No one thinks of a tech-company when they think of Macy’s, nor do they
think of retail giant when they picture Facebook.
Realizing this for themselves, Macy’s and Facebook recently teamed up to
leverage each other’s strengths by piloting a shop-in-shop style retail pop-
up. What does that mean? Essentially, Macy’s provides the physical retail
space to give customers the best interactive experience that brick and
mortar retail has to offer while Facebook provides customers with
information about in-store products to assist them in making informed
purchases. Companies working together to leverage the strengths in what
they do best? Now that’s teamwork.

Learn More @ lat.co
Overall,The Market @ Macy’s demonstrates the tech-
industry’s desire to leverage the real life interaction a
customer gets with a product while shopping in a physical
retail space—an experience Facebook can’t replicate no
matter how it designs its own online social commerce
platform.
For Macy’s, the deal represents a desire to use tech in a way
that enhances the consumer experience by giving them
increased access to information in a traditional brick-and-
mortar venue. Working together, both companies have
something to gain with, again, the customer emerging as the
ultimate winner.
The Market @ Macy's

Learn More @ lat.co
Text Excerpt from :
TBD
With more options on where to shop than ever, customers
decide for themselves what they prefer. Everyone else can
either adapt to shifting customer preferences and
standards by offering a more customer-friendly experience
or be left in the dust. For Facebook and Macy’s, adaptation
seems like the option both have in mind.
The Market @ Macy's

Lat.co
Text Excerpt from :
TBD
Luggage brand Away recently debuted its growing product line
at nine Nordstrom Pop-In locations across the U.S. and Canada.
Between Jan. 11 and Feb. 24, shoppers can buy Away's
polycarbonate suitcase in four sizes, as well as packing cubes
and leather stickers.The line includes new colors and some new
takes on classic colors, the company noted.
The collection, which is also available on Nordstrom.com/POP,
also offers accessory products in the beauty and wellness and
travel space, like travel kits, facial towelettes, neck pillows, eye
masks and guide books, among many other knickknacks.
Away @ Nordstrom’s
Text Excerpt from :
Retail Dive

Lat.co
Success of these DTC Brands Comes
from Two Key Areas
A digital-first
foundation.
Exclusive focus
on the in-store
experience.

Lat.co
Text Excerpt from :
Mobile Marketer

Learn More @ lat.co
Text Excerpt from :
Mobile Marketer
No matter how much it feels like shopping in a “walk-in vending
machine” Dirty Lemon’s New York store deserves a toast for its
simplicity.
Dirty Lemon

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Text Excerpt from :
Mobile Marketer
Dirty Lemon
Dirty Lemon, a high-end health-drink merchant that
gained its start in the digital world, utilizes a simple
and widely adopted piece of technology — text
messaging— to create a drastically simplified
shopping experience.
After selecting a drink, the customer uses their phone
to scan a QR code on the bottle, which auto-generates
a text message containing the product information.
From there, the customer sends the text, exits the
store, and moves on with their day. No need to visit a
cashier. Dirty Lemon receives the text and
automatically bills the customer’s credit card.

Learn More @ lat.co
Text Excerpt from :
Mobile Marketer
Dirty Lemon
Without getting too fancy, reinventing the wheel, or
using new technology the customer doesn’t trust or
understand, Dirty Lemon utilizes familiar tech to
augment the user experience, making shopping easier
and quicker. Some call it a walk-in vending machine.
We call it innovation.

Learn More @ lat.co
While technology enabled speed and efficiency, it forgot the
human desire to touch, feel, and experience a product
physically and in real time. Realizing physical retail and digital
technology both contain aspects that satisfy customer needs,
Nike’s new store in New York City,The House of Innovation,
combines the best elements physical and digital retail have to
offer.
Nike NYC

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Nike NYC
Like any other brick and mortar retail space, customers
can shop entirely unplugged. However, unlike traditional
retailers, the Nike mobile app unlocks the full capabilities
of the store.
For the customer, using the Nike app in-store allows for
less wait time, better in-store assistance, and increased
access to product information and customization services
offered on location.
By offering the best shopping experience in combination
with the app, the store itself makes people want to
download and use the app in order to unlock the full
experience for themselves. And, while the app grants the
customer further convenience while shopping in the Nike
store, it also collects valuable information from customer
by assessing their in-store behavior.

Learn More @ lat.co
Nike NYC
For Nike, that information proves essential in allowing the company
to better serve customer needs and supply products the customer
will most likely find valuable. By designing a store that elevates the
retail experience for the customer through the use of specific
technology, Nike creates physical retail experience customers want
to have. Rather than choosing one method of retail over the other,
the House of Innovation blends both experiences in a way that
capitalizes on the strengths each one has to offer.
For the customer, the store provides the best of both worlds,
physical interaction with products and all the convenience of online
shopping.

Lat.co
While Amazon revolutionized online shopping, simplified the user experience, and changed consumer
expectations in the process, not every site has to look like Amazon to find success among consumers of
the digital age. With their use of technology to enhance their customer’s experience, direct-to-consumer
(DTC) brands set great examples for retailers to learn from. With their roots in online and tech-enabled
shopping, DTC companies constantly think about how to use digital tech to make the consumer’s lives
and shopping experiences easier and more memorable.
In order to remain relevant to today’s consumers, retailers need to ask how they can learn from the ways
fast and nimble DTC brands curate their digital and physical shopping experiences to meet customer
demands. While asking the right questions and learning from others doesn’t guarantee success in and of
itself, it’s certainly the first step a company can take towards success in the future. Luckily for everyone,
examples aren’t too hard to find.
In Conclusion

Lat.co
‣ Look to DTC brands as a point of
inspiration and opportunity.
‣ Ask yourself - What could be possible with
full control of the customer journey?
‣ How do retailers look to act more like DTC
brands?

As technology of today has put the consumer in control and iconic brands loose hold as the
traditional forms of mega-advertising fall to the wayside, new and emerging brands who focus on
the holistic form of consumer experience, or CX, begin to take hold. From discovery through
fulfillment, today’s consumers expect the world as it are tase expectations that brand titans of
this day and age need to surpass in order to stay alive in the rapidly changing world of retail today.
The New Consumer Experience

Lat.co
How much did you pay attention to
the Super Bowl this year?

Lat.co
Big Ideas ->
Wholistic Consumer Experiences

Lat.co
Consumer Experiences [CX]
Customer experience is defined as your customer’s
perceptions – both conscious and subconscious – of their
relationship with your brand resulting from all their
interactions with your brand during the customer life cycle.
Gartner, 2018

Lat.co
Search &
Discovery
(& Fulfillment) Loyalty
BaselineCustomerExperience
Baseline Customer Experience
The baseline customer experience signifies the
consumers expectation when interacting with your
brand.Today, this baseline is not simply dictated by
direct competitors but, new and completing services
looking to disrupt traditional ways of doing business.

Lat.co
I N CON TR OL
Transparency and
manipulation available at
every step of the purchase
process.
ON DEMAND
Online offerings have
created 24/7 availability
with full, proactive
solutions gaining speed.
PERSONA LIZED
Complete customization
at every brand touchpoint
creates efficiencies and
loyalty.
PU RPOSEFUL
Brands are responsible for
standing for something
bigger as consumer dollars
parallel their beliefs.
Today’s Consumer Expectations

Lat.co
“If two taps from my cell phone
can get a car to show up to my
front door, then why is buying
glasses so hard?”

Lat.co
Search &
Discovery
(& Fulfillment)
Loyalty
Category:Outdoor Apparel
Consumer Expectation Baseline:Med-High
Reasoning:Expanding brand channels have made
discovery and fulfillment seamless while startups
continue to enter the field, owning discovery
through emerging channels such as Instagram,
interesting/specialized design detail or brand
personality, etc.
Experience Gap:While technical gear is fun to look
at and dream about it’s hard to research,
understand and identify what’s perfect for you.

Lat.co
Search &
Discovery
(& Fulfillment)
Loyalty
Category:Household Paint
Consumer Expectation Baseline:Low
Reasoning: The process of testing and buying paint
for household tasks has not changed in 100+ years.
Today, customers still rely on swatches and other
traditional methods to research and execute their
purchase.
Experience Gap:Currently, none. Customers do not
expect anything beyond this experience as there is
nothing in the category, at this time, that is
disrupting this process.

Lat.co
Search &
Discovery
(& Fulfillment)
Loyalty
Category:Household Paint
Consumer Expectation Baseline:Low
Reasoning: The process of testing and buying paint
for household tasks has not changed in 100+ years.
Today, customers still rely on swatches and other
traditional methods to research and execute their
purchase.
Experience Gap:Currently, none. Customers do not
expect anything beyond this experience as there is
nothing in the category, at this time, that is
disrupting this process.
Categories that have low consumer expectations
can look to new and emerging tools to rapidly
disrupt industries.
A New Consumer Baseline That
Now Must Be Met

Lat.co
The ways in which customers connect with brands
continues to evolve at a rapid pace.
It is our job, as creators, to leverage these new
methods to better foster these connections in a way
that is impactful to the wholistic consumer experience.

Lat.co
‣ Map out the relationship between your
brand and your customer to determine
where you may fall short.
‣ Determine the tools and resources you
need to leverage in order to sure-up any
gaps.
‣ Identify the potential for disruption.
How can your brand continue to elevate
expectations?

Lat.co
In Conclusion
The way in which brands and consumers connect continues to evolve rapidly. In
addition, channels and mediums that once had a specific purpose shift, taking
their place on different parts of the consumers overall relationship with a brand.
Through these transformations, industries will die, change and be disrupted. As
players within this game we must keep a constant pulse on the consumer, the
industry and the technologies that are forcing this ever going hand of change.

Lat.co
Learn More & Connect
We, at Latitude, maintain a constant pulse on the changing world around
us. We would love to chat more about how we maybe be able to translate
this expertise into impactful work for your brand…
Research & Innovation
Carter Jensen
CJensen@lat.co
General Info
Learn more online - lat.co
New Business
Erin Crosier
ECrosier@lat.co

Lat.co
Contributing Authors &
Research Resources
Research Lead
Carter Jensen
Research & Writing
Connor Beck

146
Retail 2019
Thank you!
Carter Jensen / @CarterJensen
cjensen@lat.co
CONSUMER EXPERIENCE EVOLU TION

Appendix
Resources & Next Steps
Expanded Case Studies
Sources & Links

Lat.co
Next Steps / Conversation Starters for Marketers, Brands and Retailers
Understand the new consumer of today.
Ask yourself…
How can you maintain a focus on the new, fast-moving
generation?
How can you shift their new-found power in the
direction of your preference?
How do you ensure your message is not tuned-out?
Ensure you are meeting the new baseline
expectations of commerce
Ask yourself…
What barriers to your brand can you eliminate?
Are you adding unnecessary frill in hopes of seeming
‘up-to-date’?
Do you have an understanding of the new retail tools of
today?
Navigate the consumer journey?
Ask yourself…
Do you know how consumers are accessing your
brand?
Are your tools and methods of outreach focused on the
right platforms?
Are you over-complicating steps within the process?
Standing out Though Wholistic Consumer
Experiences
Ask yourself…
Are you meeting the new baseline of consumer
expectations?
Are you creating positive brand experiences through all
consumer touch-points?
Are you elevating old retail to create the impact that is
now possible and imperative today?

Learn More @ lat.co
If it works online, why confine direct-to-consumer products to the
internet?
That’s exactly what the digitally-native oral healthcare brand, Quip,
realized. After raising $40 million through its existing investors, Quip
increased it’s access to new markets through a partnership with
Target that allows the brand’s online-only products to enter the
traditional brick-and-mortar space for the first time.
For Target, the partnership demonstrates the traditional retailer’s
desire to appeal to younger generations by offering them digitally-
native brands they’re already familiar with.
Quip + Target

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For many online-only brands, the partnership between Target and
Quip signifies a realization that branching out into physical retail
makes sense in order to make up for the limitations inherent to
digital shopping, grow their businesses, reach more customers, and
offer more services.
For Target and Quip, both companies offer each other value that
leverages their existing strengths, established customer bases, and
infrastructure. Not only does the partnership represent the merging
of traditional brick-and-mortar retail with digital retail in a way that
capitalizes on the strengths of both, it also leads to a better
shopping experience for the customer.
Quip + Target

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Target offers the physical experience. Quip offers the
brand appreciated by digitally-savvy generations. Both
companies gain from the partnership with the
customer being the ultimate winner in the end.
Quip + Target

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Enter into a clean, brightly-lit brick apartment—a historic fire
station in San Francisco’s Russian Hill neighborhood—and
you might guess you’re walking into a fashionable friend’s
dream apartment.You might be. Or, you might be entering a
3,000 square-foot retail space where everything in the
apartment—from the backpack and the coat rack it hangs on
to the light fixture over the dining room table—is for sale.
Welcome to Batch, a retail space that allows customers to
interact with products as if they were interacting with them in
their own living space. Batch terms this experience
“contextual commerce.” As part of the experience, Batch
provides customers the opportunity to physically interact
with brands they could only otherwise find online, giving the
customer access to a whole new set of information.
Batch

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‘What does the fabric feel like? How does the lamp light up
the room? How do the sunglasses look on me in the mirror?’
And, while all this visualization helps customers make more
informed purchases, a presence at Batch allows online-only
brands their first opportunity to collect real-life, as opposed
to online, customer feedback. For both brands and
customers, the experience at Batch amounts to a win-win.
Batch
LEARN MORE GET IN TOUCH

Lat.co
‣ GlobalWebIndex // 2019 Trends Report —
‣ CNBC // Walmart will soon… — https://cnb.cx/2B0eCI7
‣ Retail Dive // Retailer of the Year - Target 2018 — http://bit.ly/2UurYoT
‣ Retail Dive // 2017, 2018, 2019
‣ Gartner / L2 // What happened to Target? — http://bit.ly/2UobizD
‣ SalesForce // Shopper-First Retailing — https://sforce.co/2GmboF5
‣ Mobile Marketer // How 'brick-and-mobile' is transforming in-store shopping. — http://bit.ly/2Gd7Gxd
‣ Shopify - Facebook Shop - https://goo.gl/wFxRYz
‣ eMarketer - http://bit.ly/2NMGhAP
‣ L2 Inc - http://bit.ly/2pZEb73
‣ Marketing Drive // Burger King trolls McDonald's with geolocation stunt — http://bit.ly/2G94dj7
‣ PSFK // Spotify Accompanies Album Drop With Dedicated Popup Store — http://bit.ly/2Ga37ng
‣ The New York Times // End the Innovation Obsession — https://nyti.ms/2GfNn25
‣ 2018 Trends Briefing // Sparks and Honey
‣ Ogilvy / 2018 Trends
‣ L2 // Omnichannel Report 2018
‣ Ron Howard // S23 & Nike
‣ Mintel // 2018 Consumer
‣ Isobar // 2019 Trends Report - 2019 Trends
‣ Fast Company // Netflix CEO Reed Hastings:Sleep Is Our Competition
‣ Wired // Here's how Nike, Alibaba and Walmart are reinventing retail - http://bit.ly/2Ezb7N6
‣ Timeshifter, Inc - PR Newswire // New Timeshifter App Helps You Tackle the Underlying Cause of Jet Lag - https://prn.to/2EOSJiz
‣ Stratechery - Dollar Shave Club and the Disruption of Everything // http://bit.ly/2ELwIRP
‣ Digiday - Warby Parker’s David Gilboa:‘Every retailer is facing increasing consumer expectations’ // http://bit.ly/2EPSZOc
‣ Pew Research Center - Teens, Social Media & Technology 2018 // https://pewrsr.ch/2LGXEn9
‣ Forbes - The Rise Of Experiential Commerce // http://bit.ly/2LHtGzm
‣ Gartner - Gartner Surveys Confirm Customer Experience Is the New Battlefield // https://gtnr.it/2LJ6qRH
Sources

Consumer Experience [CX] Evolution - Full Report - Latitude

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