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Retail Ignition

RETAIL IGNITION an event from The iris Nursery, the innovation and ventures division of iris worldwide.

Clients often tell us that they’ve got mixed feelings about innovation.

On the one hand, they realize that it’s critical for the survival of their business, and that there are usually plenty of ideas floating around the business.

On the other, many have a growing sense of frustration around delivering ideas and finding the ones that will work for them in their market(s). Or, more accurately, rapidly figuring out which ones won’t work and either adapting or abandoning them.

Our Retail Ignition workshop is focussed on finding business ideas that can be rapidly tested in a series of market experiments. To create and maintain momentum and reduce risk.

Kickstarting specific innovation concepts that can be delivered in the short/medium term.

Curating bespoke combinations of partners to help inspire & deliver ideas for brands. Exploring co-investment models to share the risk and reward.

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Retail Ignition

  1. 1. Copyright © 2014 ß London, 18th September 2014
  2. 2. Welcome & SOME INTRODUCTIONS Copyright © 2014
  3. 3. Copyright © 2014
  4. 4. Copyright © 2014 John Grant Dan THwaites Dave Caygill John Grant – planner, book writer & startup veteran Dan Thwaites– former digital & creative agency head, entrepreneur Dave Caygill – strategic technologist, digital creative, hacker
  5. 5. Copyright © 2014
  6. 6. Benjamin Chilcott CEO Iris Concise Sam Noble, Copyright © 2014 OUR FRIENDS IN THE NETWORK Will Silverwood, MD, Iris Concise Chief Strategy Officer, Iris
  7. 7. Copyright © 2014 BRANDS / BUSINESSES TODAY
  8. 8. Copyright © 2014 THIS MORNING 9:00- 9:40 WELCOME (DAN THWAITES, CO-FOUNDER, IRIS NURSERY) A little bit about Iris Nursery and getting around some of the problems of innovation. 9:40-10:00 MARKET VIEW (STEPHEN MILLARD, CEO E-COMMPLISHED – RETAIL TECHNOLOGY INCUBATOR) Overview of Technology & Investment Trends in the Sector 10:00-10:30 SMART RETAIL (JOHN GRANT, CO-FOUNDER, IRIS NURSERY) New Hybrids between Physical & Digital Retail 10:30-11:00 NO MORE DIGITAL DIVIDE (Facilitated by JOHN & DAN) Discussion around business and the hybrid digital / physical space 11:00-11:15 BREAK 11:15-12:00 INNOVATION DEMOS (DAVE CAYGILL, TECHNOLOGY LEAD, IRIS NURSERY) Presenting a series of micro-demos from selected innovative companies & technologies. 12:00-1pm CHATHAM HOUSE DISCUSSION (Facilitated by JOHN & DAN) Discussion on the overall sector, the business issues within it and where we should focus our attention. 1pm-1:15 Wrap up 1:15- 2pm BUFFET LUNCH & CLOSE
  9. 9. A little bit about iris Nursery Copyright © 2014
  10. 10. Extending Creativity Beyond Communications ! Into business ideas & products Copyright © 2014
  11. 11. Opening up new markets & finding new value in existing markets. ! Often with New partners & commercial Models to bring them to life Copyright © 2014
  12. 12. Copyright © 2014 HELPING Brands Accelerate INNOVATIon ! CO-INVESTING IN INNOVATIVE Ideas ! INCUBATING INNOVATIVE BUSINESSES
  13. 13. Copyright © 2014 Accelerating Innovation Creating & managing bespoke processes for business innovation ! Ensuring momentum through new partnerships & models ! Reducing risk through rapid prototyping & testing
  14. 14. Copyright © 2014 Co-Investing in Innovation Product Innovation to open new markets Product Prototyping, Development & Go-to Market Co-creative Product ENHANCEMENT
  15. 15. Incubating Innovative Businesses We have already invested in 10 startups this year through our fund and are Copyright © 2014 actively seeking more for further investment this year
  16. 16. Copyright © 2014 Curated Connections
  17. 17. A rare combination of creativity, consulting, delivery + global reach helps us create ideas and, importantly, make them happen. Copyright © 2014 GLOBAL INNOVATION NETWORK
  18. 18. Copyright © 2014 Sharing a Quick Glimpse at a Few of our Innovations in Progress SNEAK PEAK
  19. 19. Copyright © 2014
  20. 20. Copyright © 2014 HELPING Brands Accelerate INNOVATIon ! CO-INVESTING IN INNOVATIVE Ideas ! INCUBATING INNOVATIVE BUSINESSES
  21. 21. Copyright © 2014 Challenging Times Growth Disrupted / fragmenting markets SPEED FIXING THE PLANE IN THE AIR
  22. 22. Copyright © 2014 6 Problems with Innovation and WAYS OF WORKING AROUND THEM (+ a couple of new ideas that came up along the way)
  23. 23. Copyright © 2014 Problem #1 Never short of ideas, the challenge is making them happen
  24. 24. Building a “loose ties” ecosystem of partners who can BRING NEW IDEAS TO LIFE Copyright © 2014
  25. 25. Copyright © 2014 IP CREATIVE TALENT MARKETPLACE
  26. 26. Copyright © 2014 Problem #2 When we see a solution, we CAN BRIEF PROSPECTIVE PARTNERS. ! But We don’t know WHAT we don’t know!
  27. 27. Share as much as you can. Even if only the problems. Open source wins. Copyright © 2014
  28. 28. Copyright © 2014 IDEAS SPA… THE IDEAS SPA IP
  29. 29. Copyright © 2014 Problem #3 WHICH IDEAS to take to scale?
  30. 30. SPARK WITH IMAGINATION, FUEL WITH DATA Copyright © 2014
  31. 31. Copyright © 2014 Problem #4 Scale & complexity of our business makes innovation harder to land
  32. 32. Copyright © 2014 Start small, think big Prototypes, MVP, experiments
  33. 33. Copyright © 2014 Problem #5 Innovation can be seen as a distinct activity, rather than something that the business as a whole does to survive.
  34. 34. BUILDING A CULTURE OF SOLVing CUSTOMER PROBLEMS Copyright © 2014
  35. 35. PRODUCT TESTING CONCEPT Copyright © 2014 IP
  36. 36. Copyright © 2014 Problem #6 Securing continuous effective engagement of the people who we need to develop the ideas and make them happen (upstream & downstream)
  37. 37. Inspiration, Co-Creation, Sprints, Competition Copyright © 2014
  38. 38. Copyright © 2014 BACK TO TODAY… A STARTER
  39. 39. …BACK TO TODAY Copyright © 2014
  40. 40. Copyright © 2014 Fuel for the imagination
  41. 41. Copyright © 2014 Therapy
  42. 42. Copyright © 2014 FINDING SOME NEW AREAS TO START TESTING
  43. 43. Copyright © 2014 SOMETHING TO TAKE BACK
  44. 44. Copyright © 2014
  45. 45. Eccomplished Dashboard SeptemberS 2t0e1p4hen Millard, CEO MARKET VIEW
  46. 46. Working exclusively with retail technology innovators Accelerating growth through market validation, growth strategies, funding and value realisation Connecting the eco-system of complementary technologies, partners, retailers and investors Providing a unique combination of expertise, retail knowledge and industry relationships
  47. 47. Powerful forces are re-shaping retail Transformation of the world economy Digital technology Transformation of an outdated model
  48. 48. Change creates opportunity Transformation of an outdated model Retail innovation Speculation
  49. 49. “Digital technology is critical to the success of my business” Disagree strongly Disagree somewhat Agree somewhat Agree 0.36 8% 4% 2% Agree strongly 0.5
  50. 50. Higher levels of investment in innovation is driving significant growth
  51. 51. But don’t think [insert buzzword]-channel - it’s just retail What growth do you anticipate overall and across each channel? What proportion of your revenues do you ascribe to each channel? What growth do you anticipate overall and across each channel? What proportion of your revenues do you ascribe to each channel? Mobile Online In-­‐Store 37% 44% Total 40% 50% 46% 47% 41% 51% 2014 2013 Mobile On-­‐line 38% 17% In-­‐store 45%
  52. 52. 2012 Good logistical efficiency and competitive delivery pricing English is the language of technology development 23% of retail online Purchase protection through credit card purchases Competitive and comprehensive broadband and networks Adoption of debit / credit cards for online purchase Availability of digital / design skills We are a nation of shopkeepers Common tax laws and pricing across UK Legal requirements to accept returns Trusted relationships with retailers 13.5% of retail online 2016
  53. 53. Go global
  54. 54. Retail innovation innovation models !! Reinventing entire industries Disrupting and allowing us to do things we’ve never done before Improving and enhancing how we do things today
  55. 55. Retail’s transformation The new retail reality at home out & in-store about
  56. 56. What’s trending? Data Privacy Payment Personal Location
  57. 57. Eccomplished Dashboard SeptemberS 2t0e1p4hen Millard, CEO
  58. 58. Copyright © 2014 SMART RETAIL
  59. 59. DEEPLY DUMB: RETAIL AND PRIMAL INSTINCTS Copyright © 2014 Neuroimaging research[2] has reported spikes in reward-circuit dopamine activity related to shopping, similar to those seen in addictive behaviors, such as drug use and overeating
  60. 60. Copyright © 2014 “So strong is the endowment effect that we don't have to physically own something for the effect to take hold. The mere suggestion of ownership is enough to get our guns going. One recent study found that people who touched an item felt an increased sense of ownership toward it.” (Peck & Shu, via FastCoDesign)
  61. 61. Copyright © 2014 You're More Likely To Buy Something When Shopping On Your iPad The "Endowment Effect," Which Makes Us Overvalue Items, Is Stronger On A Touch Screen. (Brasel & Gips via FastCoDesign)
  62. 62. Copyright © 2014 “No matter how much smarter or more experienced we have become, there's still something called "retail magic," where someone is able to put something out there in a way that makes us fall in love with it and have to have it.” (PACO UNDERHILL)
  63. 63. “…according to a French study the phenomenon still swings a considerable number of shoppers. Researchers found that lowering the price of a pizza from 8.00 euros to 7.99 euros boosted sales by 15%.” (BBC) Copyright © 2014
  64. 64. After investigating a marked drop in melon sales, a retail psychologist's report for Tesco suggested that the modern preference for smaller breasts, as modeled by the likes of the superwaif Kate Moss, is informing customers' decisions to reject larger melons. The company has instructed growers in Spain to produce Galia melons of no more than 0.55kg, rather than the 1kg melons that were proving slow to sell. A Tesco spokesman insisted that the sales results spoke for themselves. 'Since we introduced the smaller melons two months ago we have sold more than a million.’ (THE GUARDIAN) Copyright © 2014
  65. 65. Copyright © 2014
  66. 66. Copyright © 2014 Ecommerce AS ‘MAIL ORDER’ Digital shopping & digital delivery eg media, travel agency ! vs Digital shopping and physical delivery = 90% of ecommerce? ! -> Surprising implications eg huge advantage if fits through letter box
  67. 67. Mail Order dumb too – RETAIL PORN? Copyright © 2014
  68. 68. BUT (UNLIKE MAIL ORDER?) ECOMMERCE ATTRACTED THE brightest & best Copyright © 2014
  69. 69. Who created SOME OF THE world’s best retail brands (THAT happened to be on web) Copyright © 2014 “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” AMAZON.COM
  70. 70. Copyright © 2014 Amazon’s SMART ideas 1. Customer at the centre 2. Incredible range – the long tail 3. One-Click ordering 4. Customer reviews/recommendations 5. Marketplace 6. Showrooming - & now Firefly 7. Kindle & digital content platforms DEFINITION OF SMART?
  71. 71. BUT It’s still been VERY hard miles Copyright © 2014 After 20 years of Amazon & by 2025 McKinsey predicts 15% Online
  72. 72. WHAT KEEPS TESCO AWAKE AT NIGHT? Copyright © 2014 VS
  73. 73. ALDI RATED 1= WITH WAITROSE FOR QUALITY Copyright © 2014 “…the lobster, scallops and venison I was served by celebrity chef Jean-Christophe Novelli last week at Home House, the private members’ club on London’s Portman Square, was part of a four-course, fine-dining experience created entirely from the products of the German chain Aldi.” INDEPENDENT
  74. 74. THE RETURN of THE own brand Copyright © 2014
  75. 75. Copyright © 2014 & ETAIL NEVER MISSES A TRICK
  76. 76. EVEN BIGGER TREND – CLICKS & BRICKS These click-to-brick retailers report e-commerce sales lifts of three to five times in the built-out markets AT KEARNEY ! Andy Dunn of Bonobos, told Bloomberg only 5% of visitors to their website make a purchase. In its 10 stores, that number is 83%. FORBES Copyright © 2014
  77. 77. Copyright © 2014 Clicks & Bricks Made.com encourages shoppers to digitally interact with physical products using tablets provided in their showroom, which incorporate real-time content, reviews and recommendations. Customers are only asked to identify themselves at end of the experience, in order to have access to the data they created in-store after they leave.
  78. 78. Copyright © 2014 Clicks & Bricks
  79. 79. Copyright © 2014 Clicks & Bricks
  80. 80. Copyright © 2014 Clicks & Bricks JEANSONLINE.COM FIRST IN NL TO OFFER SAME DAY DELIVERY NEW 15 MINUTE ‘EASY FIT & RETURN’ SERVICE ONLINE LOWEST PRICE GUARANTEE
  81. 81. DIGITAL CAN DO DUMB: TEMPTING OFFERS Copyright © 2014
  82. 82. DIGITAL CAN DO DUMB: SPECTACLES Copyright © 2014
  83. 83. Copyright © 2014 shopping is getting smart (WHETHER STORES ARE OR NOT)
  84. 84. Copyright © 2014 CUSTOMER CENTRED IS HAPPENING: DIGITAL BUT ONLY ON MY TERMS OPINION LABS, 2014
  85. 85. SO WHAT COULD SMART SHOPS LOOK LIKE? Copyright © 2014
  86. 86. Copyright © 2014 A FEW SMART SHOP IDEAS Data from interactions with Top Shop “Customise The Catwalk” app were then used to inform merchandising decisions.
  87. 87. Copyright © 2014 A few smart shop ideas Adiverse displays turn a small shop into a Flagship store – able to browse 8000 shoes. In UK rollout an average 40% sales uplift seen.
  88. 88. Copyright © 2014 A few smart shop ideas Debenhams is embarking on a social selling strategy in the build-up to Christmas encouraging customers to share special offers with friends in return for rewards, based on co buying (group rewards, leaderboards…)
  89. 89. Copyright © 2014 Clicks & Bricks Westfield Collect Lounge - collect your items and try them on in a very snazzy private changing room. Even better if it doesn't fit or you don't like it you can return there on the spot. 1 hour free parking too. Not too shabby aye ?" Callie, fromthecornersofthecurve.com
  90. 90. Copyright © 2014 A few smart shop ideas Innovative “magazine style” retailer STORY uses Prism a cloud based analysis platform that turns video footage into heat maps and realtime analytics.
  91. 91. Copyright © 2014 A few smart shop ideas Many stores use tablets to show extended choices, content etc. Saks Fifth Avenue use 3,500 tablets equipped with the Raymark clienteling application, with a customer-specific database including high-resolution images of customers’ past purchases.
  92. 92. Copyright © 2014 A Few Debates Where are we on the smart-dumb scale? To compete in future, where should we be? For the hybrid digital/physical ‘total retail’ era… (centred on the customer not the channel) - What are our challenges? - What are our conflicts? - What are the key opportunities?
  93. 93. Copyright © 2014 NO MORE DIGITAL DIVIDE
  94. 94. Conflicts, OpportunitIes & CHALLENGES Copyright © 2014 NO MORE DIGITAL DIVIDE TALK WITH YOUR NEIGHBOUR ! 10 MINS COMPARE WITH THE TABLE ! 10 MINS SHARE WITH THE GROUP ! 10 MINS
  95. 95. Copyright © 2014 Break
  96. 96. Copyright © 2014 STARTUP ACCELERATION
  97. 97. Copyright © 2014 97 POST IT NOTES brainstorm
  98. 98. Copyright © 2014 launch LEAN AND LEARN 98
  99. 99. THEY DON’t go far before VALIDATING LEARNING OR PIVOTING. 99 Copyright © 2014
  100. 100. MATCHMAKING BRANDS AND STARTUPS. 100 Copyright © 2014
  101. 101. In-Store Data Capture & Electronic Receipts! without EPoS Integration
  102. 102. Ryan
  103. 103. Ryan is a happy customer.
  104. 104. “yReceipts delivers customer visibility and data capture capabilities that replace traditional swipe card-based loyalty schemes and helped us increasing in-store customer data capture 18-fold.” Head of CRM & Loyalty, Mothercare
  105. 105. 100,000 identified customer every week in 200 stores! That’s every 2nd customer! 84% marketing opt-in rate! 65% feedback rate
  106. 106. 107
  107. 107. 108
  108. 108. One store sending 300 digital receipts a week can fill a stadium the size of Centre Court with known customers in a year
  109. 109. 50 stores and you know all of the! 650,000 Royal Wedding visitors
  110. 110. Ryan now knows every person in Hamburg (after 9 months)! 1,837,327 new customer profiles
  111. 111. 7,181,593 sale items
  112. 112. 1,837,327 new customers! bought 7,181,593 products! in 2,979,594 transactions! across 200 stores! served by 6,592 sales assistants
  113. 113. yReceipts puts data where it belongs: in real-time Electronic Receipt Mobile App Feedback System CRM Database Product Review Service Loyalty System Customer Web Login Analytics System Newsletter Database yReceipts Hub No EPOS integration required Receipt Data Customer Data
  114. 114. Join Ryan and many more happy customers in Europe, Australia and the US
  115. 115. thank you
  116. 116. 119 In-Store Digital Media: Reinventing the Retail Space
  117. 117. Click & Collect Click & Collect PHYGITAL
  118. 118. API Basket ID Store ID Checkout details Payment HTML Templates Confirmation & XML Data Feeds IN-­‐STORE SCREEN
  119. 119. 1 2 3 4 5 SHOP THE VIRTUAL INVENTORY ENABLE AN OMNICHANNEL, CONNECTED SCREEN STRATEGY PREVENT “WALK AWAYS” LEVERAGE EXISTING ONLINE COLLATERAL RE-­‐INVENT THE PHYSICAL RETAIL SPACE
  120. 120. DEMO SCREENS
  121. 121. ! “What would physical retail’s role be if it were invented today”?!
  122. 122. Qudini’s Solution
  123. 123. Qudini’s Solution
  124. 124. Qudini’s Solution
  125. 125. Service retail
  126. 126. Service retail • 25% mention! ! • More conversations! ! • 40% reduced walkouts! ! • Increased footfall! ! • Serve faster and better! ! • Increased spend! !
  127. 127. House of Fraser Click and Collect
  128. 128. House of Fraser Click and Collect • Productivity doubled! ! • 2 in queue! ! • 40% reduced walkouts! ! • Aids low resource! ! • Faster more professional! ! • Increase repeat purchasing! !
  129. 129. THANK YOU! ! Imogen Wethered! CEO – Qudini! ! imogen@qudini.com! 07766113002
  130. 130. 150 Shop the visible
  131. 131. 151 What problem are we solving? Lovethelook was set up to find outfits without subjective keywords. People want immediacy. I see it, I want it now Marketers want insight and need to be where their market is Publishers are looking for new income streams. Their images are dead assets
  132. 132. 152 Our solution Technology that automatically finds product/s in any digital image and offers similar, unbiased buying opportunities Automated Automatically finds product/s in any digital image Customization Can be white labeled against a closed list of products Iterative Iteratively learns so accuracy improves over time Not just fashion Not just fashion and interiors. Any product in any image Scalable Can scale up to huge image collections for legacy projects Unobtrusive Works on rollover so doesn’t obstruct user experience
  133. 133. 153 Lovethelook as a service Easily integrated solution for publishers Lovethelook is quickly and easily integrated in any web content allowing rapid monetisation of images. Commission is shared between publisher and Lovethelook. Legacy projects of large image libraries can be quickly implemented due to Lovethelook’s scalability.
  134. 134. 154 Closed catalogue apps Unique solutions that drive engagement We can build branded apps using your catalogue feed so results only feature your product/s. For example street fashion images generate the closest match in your catalogue. This builds brand engagement and offers a unique user experience whilst also driving valuable insight in to buyer behaviour.
  135. 135. 155 Enterprise Saa We can process billions of images Lovethelook is robust and infinitely scalable. We work with and partner some of the world’s largest digital companies dealing with billions of page impressions each month.
  136. 136. 156 Lateral applications Saa We’re not just in fashion and ecommerce We are now using Lovethelook technology in a range of lateral applications including Google Glass. We are also working in sectors such as security, engineering, healthcare and military as well as other ecommerce areas such as interiors.
  137. 137. 157 Leading experts in computer vision and AI Our unique mixture of techniques More in depth learning and recognition than competitors Our advantages Unparalleled scalability and iterative tech
  138. 138. 158
  139. 139. 159 Contact us to request a demo grant@lovethelook.com @lovethelook linkedin.com/lovethelook E4F, Birmingham Science Park, Aston University, Birmingham Lovethelook.com
  140. 140. 160 6RFLDO/HDUQLQJ IRURXURUJDQLVDWLRQ
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  145. 145. 165 0RUHLQIRUPDWLRQ WKLVZRUNHGZHOOFRP #WKLVZRUNHGZHOO JUDQW#VPSRVLXPGLJLWDOFRXN
  146. 146. We create omnichannel customers 166
  147. 147. 167 Most valuable data isn’t being captured Retail Sales © 2014 CloudTags -­‐ Confidential and proprietary 90% Online Sales (intent data is tracked) 10% In-store sales (Intent data not tracked)
  148. 148. Harvey Nichols Video Case Study © 2014 CloudTags -­‐ Confidential and proprietary
  149. 149. 169 MADE © 2014 CloudTags -­‐ Confidential and proprietary
  150. 150. Consistent Results Furniture (MADE) Lifestyle (DropDead Clothing) Pick up Sign up Come back Luxury Department Store (Harvey Nichols) 56% 16% 53% 21% 44% 46% 41% 31% 14% AOV +15% +42% +18% © 2014 CloudTags -­‐ Confidential and proprietary
  151. 151. 171
  152. 152. LOCATION MARKETING 1. LOCATION Registration MAC authentication 2. CONTEXT Location profiling User profiling Social tracking Usage Other profiling 3. RELEVANCE Offers Recommendations Promotions Advertising Content 4. COMMUNICATION SMS/MMS Email Push notifications Vouchers/passbook Social
  153. 153. What YOUR BUSINESS is doing RIGHT, WRONG, NOT FAST ENOUGH, what YOU should TRY and WHAT SHOULD YOU LEAVE ALONE. Copyright © 2014 CHATHAM HOUSE DISCUSSION BREAKOUT GROUPS ! 30 MINS SUMMARISING FINDINGS ! 10 MINS SHARE WITH THE GROUP ! 20 MINS
  154. 154. Copyright © 2014 WRAPPING UP
  155. 155. Copyright © 2014 London, 18th September 2014

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