Find a hotel, book a room…from your car!

Here’s a  lovely example of an innovative hotel technology project that we’ve been working on here at MICROS: http://www.youtube.com/watch?v=10U5nN4HD0g

The video shows how we’ve worked with BMW, Assa Abloy/Vincard and Holiday Inn to create a showcase demonstrating how near field communication (NFC) can allow consumers to directly interact with their systems (car navigation system, Internet, NFC, hotel system, door locks, mobile devices/car key or mobile NFC phone).

The concept (and it really works) sees a man in his car. Using the car navigation system, he searches for a local hotel and views the deals that are on offer:

He then makes his choice. By double-clicking the navigation control button, an instant message is sent to the hotel system completing the reservation.

The navigation system guides him to the hotel. Shortly before arrival, the car key receives the access code for the hotel room. That means that the car key acts as the keycard – there’s no need for him to queue up and check-in as normal – and the door lock system sends a message to the hotel system confirming that the valid car key was presented to the reader, so the hotel knows he has arrived.

What do you think about such a scenario? Would you be willing to adapt your check-in procedures to support such innovative customer service?

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Free delivery thresholds – do UK retailers offer them?

On Tuesday night, I noticed a conversation on Twitter regarding free delivery thresholds. Matt Curry, e-commerce guru at Lovehoney, had visited the Charles Tyrwhitt website, filled his basket with £200+ of goods, and then realised that delivery was going to cost him £4.95. This, he felt, was not on.

Over the years I’ve talked to a number of retailers with different views on this. Some have spent a lot of time working out the perfect threshold – the magic number that makes customers spend that little bit more to maximise AOV. Others believe it’s simply a cost they can’t afford. Some actually charge more for delivery the more you spend.

In our 2012 Online Retail Delivery Report we found that 48% of the 253 retailers tested did not offer free delivery if the customer spent over a certain amount. When we first tested this in 2005, 63% of retailers did not offer such a thing.

Of those that did in 2012, a threshold of either £50 or £100 was most popular:

So who charged what? Below is a list of the UK retailers that offered free delivery over a certain order value. As you can see, books and other entertainment products feature heavily in the £10-£20 category. Fashion retailers are spread across the spectrum:

Let us know your thoughts.

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Great merchandising from Brooks Brothers

We liked this example of online merchandising from Brooks Brothers. For 3 days only, they’re offering customers the chance to buy all 42 different coloured polo shirts in a box for $2000. Their homepage looks like this:

If $2000 is a bit steep, you can also click on each individual shirt and be taken directly to the correct page to buy it, with an offer on buying two together.

A great piece of clever merchandising from across the pond – our thanks to the very fab Dan Barker for spotting and sharing it!

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Pubs failing to offer online booking services

Pubs are failing to offer online booking services to guests, according to this interesting article.

This is despite the fact that there are very compelling reasons for why pubs should offer online reservations. Horizons, the foodservice consultancy, and Livebookings provide some very good stats that are well worth considering:

1. Customers want to book online:

  • 67% of consumers expect to be able to book a table on a venue’s website
  • 80% of consumers that research online expect to be able to book online

2. Pubs can ensure that they never miss a potential booking:

  • 14% of online bookings are made outside opening hours
  • 44% of online bookings are taken during busy service times

3. The results are impressive:

  • Livebookings delivered 90,000+ covers to pubs in the last quarter of 2011
  • This is worth more than £1m (based on an average spend of £12.50)
  • This averages out to 150 covers per pub per quarter

At MICROS, we’re definitely seeing much greater uptake of online bookings and reservations. We recently delivered a new website for pub brand Chef and Brewer, which allows visitors to book tables at one of the 135 pubs that they have around the UK. The case study is coming soon, so watch this space.

Chef & Brewer

 

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What happens when deliveries fail? New report: Home Delivery, The Doorstep Experience reveals all

We’re pleased to announce that the 2012 Home Delivery: The Doorstep Experience Report is now available on our website (and it’s free of charge).

This report focuses on the doorstep experience provided by 226 UK retailers and their chosen carriers. Did the retailer tell the customer who would be delivering the goods? Was the driver polite and smartly dressed? What tracking information was provided? And what happened if no-one was at home to sign for the parcel?

The report, sponsored by mobile workforce solution specialists Blackbay, found that:

The failed delivery experience varied hugely:

  • Of 13 orders sent to a flat with no-one home, 3 were left with a neighbour not known to the customer, with no card left to explain where the goods were
  • 5 orders were left outside the flat door
  • 2 drivers left cards for the deliveries to be rearranged
  • 1 driver left a phone message and tried to redeliver next day
  • 2 orders were shoved through the letterbox

Pre-delivery, some retailers stated who would deliver the goods; others did not:

  • Pre-order, 41% of the retailers tested told the customer which carrier would be delivering their goods
  • 99.9% sent an order confirmation e-mail but only 6% mentioned the carrier
  • 81% of retailers sent a despatch e-mail; only 41% mentioned the carrier
  • 11% of the retailers sent pre-delivery text messages, up from 4% last year
  • Text message content varied – some allowed rescheduling but most did not

64% of retailers provided access to detailed order tracking:

  • 89% of retailers offered some order tracking to the customer, even if basic
  • 64% provided detailed carrier tracking
  • 69% of those with detailed tracking sent the customer to the carrier site
  • None of the carrier tracking webpages mentioned the retailer’s name

On the doorstep:

  • Only one of the drivers followed our special delivery instructions
  • 27% of the drivers were described as ‘rude’ or ‘very rude’
  • 137 orders (57%) required electronic proof of delivery, up from 50% last year
  • 36% of the retailers that collected electronic proof of delivery did not surface that tracking information to the customer

Speed & timeliness:

  • 81% of the retailers that gave us a timeframe delivered on time
  • Deliveries were more likely to be on time if electronic POD was collected

Nigel Doust, CEO at Blackbay, said; “This year’s Doorstep Experience Report is once again a mixture of the sobering and the positive. On the one hand we see improvements in online order tracking but pre-delivery text interaction has only increased to 11%, providing a significant opportunity for the industry to improve first time delivery rates.”

“However, the failed delivery experience still leaves a lot to be desired. A quarter of the failed orders were left with a neighbour not known to the customer, with no card to explain what had happened. We still have work to do to make this process as simple, secure and successful as possible for the customer, the retailer, and the carrier.”

Carlo Rimini, Business Unit Director for E-commerce at MICROS UK said; “Our annual Online Retail Delivery Report always shows progress and improvements in how retailers are handling the delivery of online orders. Thanks to Blackbay we’ve been able to produce this extra report looking at what actually happens on the doorstep.”

“Some of the findings are disappointing; the failed delivery experience is still highly unpredictable, many retailers are still not offering detailed order tracking to the customer, and a quarter of the drivers that delivered our orders were described as ‘rude’. However, we believe that carriers and retailers are committed to resolving these issues and we expect to see improvements next year.”

The 2012 Home Delivery: The Doorstep Experience report, sponsored by Blackbay, is available free of charge at www.micros-ecommerce.com/research

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Day Two at Retail Business Technology Expo: the McDonald’s keynote

Mark Fabes, IT Director of McDonald’s UK, was one of the keynote speakers at the Retail Business Technology Expo last week.

He gave a great talk about how McDonald’s are using technology to compete.

  • The first McDonald’s store opened in 1974
  • From 1974-2004 the restaurants went from being cutting edge to mediocre; the interiors of the stores became outdated and the company was receiving poor press
  • Since then McDonald’s has used technology to improve customer experience
  • All new technologies and concepts are piloted in the Milton-Keynes store, making it one of the most innovative McDonald’s restaurants in the UK

He then explained how new technology is being piloted at the Milton Keynes store:

FRONT OF HOUSE

  • Self-order kiosks have been installed to relieve queues and reduce stress
  • 70% of orders are generated through the kiosks and average order value has increased by 20%
  • The kiosks have been introduced as part of a ‘toolbox concept’ – the kiosk, trays, highchairs, microwaves, and condiments all in one place
  • 16 iPads have been installed with free Wi-Fi – customers tend to purchase more drinks as they use these
  • One table in the restaurant is dedicated to games – there are plans to use these tables as a customer order initiation point in future
  • Digital play areas – interactive floor areas allow children to play safely
  • 2 million transactions have been made via contactless payments in less than one year, speeding up the payment process by 2-4 seconds
  • McDonald’s plan to support mobile payment in 2013
  • Handheld devices will be used by staff to visit customers at the table and offer the cross and up-sale of products such as coffee and desserts

DRIVE-THRU

  • The new two-lane drive-thru at the Milton Keynes store has video capabilities to allow staff to communicate more effectively whilst serving
  • On a screen in the serving booth, staff can see an image of the car next to the order number, which improves customer service

BEHIND THE SCENES

  • McDonalds’ will use a single global point of sale with layouts prompting conversational paths and intelligent reminders
  • All staff will receive hospitality training
  • New systems will ensure the restaurant abides by working laws. It won’t allow staff to clock-in if they have completed over-time the week before
  • Crew have access to at least 2 PC’s in the staff room at any one time to organise shifts and access information
  • The staff online portal (called ‘our-lounge’) allows staff communication and motivates them via competitions, e-learning and promotions

If you have seen the Milton Keynes store in action, let us know what you thought.

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Day One, Part Two at Retail Business Technology Expo: Jaeger, Google and more

My last post was a summary of the John Lewis keynote on Day One of the Retail Business Technology Expo.

Here’s a quick summary of the other talks that I attended:

Richard Blunt from Jaeger gave a really good overview on how the luxury brand is turning multi-channel:

  • A totally integrated system allows for unified communications
  • Jaeger’s loyalty card system is linked with their other systems so they know what their customers are buying, where they are buying them and what marketing e-mails to send them regardless of whether they choose to shop in 20 different stores over the year
  • Over 50% of Jaeger customers are part of their loyalty scheme
  • It’s not store vs. the internet, everything must be multi-channel. If an order is placed online and the stock is from a store or collected in that store the sales data will reflect this and the store is credited with the sale
  • ‘Click and collect’ is the perfect opportunity to cross-sell and for multi-buying
  • Jaeger launched their mobile site in November 2011, however haven’t made a smartphone app as they want to understand what they actually want out of their mobile site first
  • All customer interactions used to be separate, but now they are integrated together – telephone, wifi, payments
  • If a customer buys online they should be able to return the item in store. Jaeger’s system allows for all web transactions to show on the tills in store allowing the customer to follow the same returns procedure whether they’ve bought the item online or in store
  • Stores and online should be seamless
  • 20% of Jaeger’s sales are now online
  • Security should be of the utmost importance to all retailers
  • Having wifi in store allows retailers to collect good data about their customers

James Brooke from our friends at 10CMS talked about the impact of the iPad and other tablets and how retailers can take advantage:

  • Tablet adoption will be even faster than mobile devices
  • iPad has 68% of the market share
  • 19% of US adults own a slate
  • Retailers often think interactions on tablets are just scroll>click>buy, however you can appeal to a customer’s visual (sight, images spacial), auditory (sound, voice) and kinaesthetic (proprioceptive) senses through this device
  • Examples:
  • Not so good – Ikea, it is not interactive and just a copy of the catalogue
  • OK – Net-a-porter, it’s like a magazine layout with an e-commerce experience over the top
  • Good – Anthropologie, the customer is drawn into the experience and able to engage with the content, there are applications for shopping for Anthropologie collections, you can rotate and spin models to match clothes, there is a discovery type feel to the app, users can share content on social media, users feel like they can actively engage  with the app
  • By layering the content on a tablet friendly app/web page you can appeal to both sides of a customer’s brain. The left ‘permission’ side which is logical and rational but also the right ‘desire’ side which is emotional and impulsive
  • Allowing users to build and share content online makes the experience more enjoyable and interactive
  • Website Pinterest.com has become a social phenomena, users are able to find things that are interesting, put them onto social media site and get social recognition, passive consumers are then able to absorb this information. ‘Sharers’ get positive re-enforcements for sharing content online. Pinterest can be used to generate ideas for website content and design.

Peter Fitzgerald at Google talked about the impact of mobile and tablet:

  • Over a billion phones are currently connected to the internet
  • On Google, 29% of retail queries are done on a mobile device
  • eBay made $5 billion in 2011 on mobile devices
  • Kiddicare have seen 20% of revenue come via Google Shopper App this year
  • Only 10% of Top 100 retailers have a tablet optimised site
  • The average order value on a tablet is larger
  • Some retailers are averaging 17-20% of visits on certain days from tablets
  • “The future of commerce is non-commerce”

Ashley Payne from Debenhams talked about the importance of data:

  • “Data is the secret sauce of the internet”
  • Good data is not an accident:
  • Plan data in development projects
  • Effort creates lasting values
  • Balance relevant technical and analytical skills
  • Execution is as important as planning
  • Ideally:
  • Projects create actionable insight
  • Insight delivered within development
  • Actionable insight/business impact should always be the priority

Lots of insight at a very good event.

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Day One at Retail Business Technology Expo: the John Lewis keynote

I went to my first ever Retail Business Technology Expo this week and I really thoroughly enjoyed it. There were lots of great seminars on Day One, however the highlight for me was the keynote from Paul Coby at John Lewis Partnership.

Paul gave an interesting insight into his views on retail, as he’s only been working in the retail sector and with John Lewis for just 11 months (he previously worked in the airline industry).

  • “There are no IT projects just business projects”
  • Retail was multi-channel with web, store, mobile etc but now it’s omni-channel
  • Social media is now a channel in its own right
  • Almost 25% of John Lewis sales last year were online, 30-40% more than the previous year
  • 20% of John Lewis online sales are from tablet devices
  • The John Lewis assumption is that the model shift to online with be 40%
  • John Lewis are remaining true to core company values, even in hard economic times and in this retail revolution that technology has caused
  • They believe that V.A.S.T. (value, assortment, service and trust) are all important elements to customers
  • Omni-channel brings your multi-channel elements together – look at the whole customer journey, from when the customer starts researching online, through to to buying in store, getting guidance on the phone, returning products and using social media
  • 29% of John Lewis customers research online and buy in store
  • 16% of John Lewis customers research on their mobile
  • 33% use the John Lewis store finder
  • 10% of UK customers use a ‘click and collect’ service
  • 63% of UK customers research online and buy in store
  • “The future shop will be about service and experience”
  • John Lewis want to build a ‘destination’ for customers; they want their shops to be special and theatrical.
  • The John Lewis Beauty Retreat is being introduced into some stores
  • They also want to make things fun: they are installing a buggy test track in their Oxford Circus store to allow parents to test push chairs over different terrains
  • However, there is a dissonance because of technology use between customers and employees. Why should employees have to work on outdated tills from the 1990s when the customers to the store are able to use great technology like web kiosks? In store staff need good technology to be able to give great service to customers
  • To be able to deliver omni-channel you must be able to know your customers and manage your products across all channels. This can be done by:
  • Immediate innovation – getting things done now, not waiting for months.
  • Strategic platform investments which modernise the business.
  • Strategic visions which can be tracked, known and managed
  • John Lewis are firmly grounded by their principles and values which were set when the shop first opened and this hasn’t changed
  • Technology can be used to deliver innovation and change but whilst still holding on to these main principles and values

It was a great event and I’m looking forward to attending next year!

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ASOS Collects – how does their new delivery service work?

ASOS launched a new delivery service this week called ‘ASOS Collects’. They’re working with the people at Collect+ to allow customers to buy online and have items delivered to a Collect+ outlet, be it a corner shop or supermarket.

We always like to see new delivery services in action, so we decided to give it a go and see how it works.

The customer is able to collect parcels from participating supermarkets, newsagents and corner shops up to 7 days a week at two set price options; next day (£5.95) and standard (£3.95). The parcel is available for collection for up to ten days providing the customer shows a form of ID and the unique code sent to them via e-mail.

Whilst selecting my desired product, the new ‘Collects’ option was displayed on the page under the delivery tab. The information included in the tab was clear enough to convince me to go ahead with the method at a further stage.

When I got to the checkout I was asked to select my billing address and preferred delivery option. Below the Collects service was an information tab and a ‘Find Nearest Store’ button which was an important factor in deciding whether it was a viable delivery option to choose or not.

I was directed to a pop up where I had to enter my postcode and was shown a map view of the nearest stores offering the service, along with which stores offered standard and next day deliveries. It’s great that customers are informed of this at this stage, as many would choose a different store depending on the flexibility they wanted.

I entered my contact details as prompted by Collect+ and chose to enter my mobile number as I’m always on the go and could be near a shop when the item arrived. Collect+ informed me of the steps to follow and what I would need to take with me at the point of collection. I went on to select my delivery type, choosing from the 3 displayed options I had read about initially.

The day after I had made my purchase I was pleasantly surprised to receive both a text message and e-mail from Collect+ notifying me that the parcel had arrived at the newsagents. It informed me that I would have to show the code given to me to the cashier, in addition to a form of ID. A speedy service given that I’d selected the standard option!

Returning to work on Monday morning, I chose to collect my ASOS parcel. As you can see from the photograph there was no indication that the store actually offers a Collect+ service which made it quite difficult to locate amongst the other newsagents nearby but I got there in the end.

When I walked into the store and notified the cashier that there should be a Collect+ parcel waiting for collection, I got the impression that it didn’t happen often as he seemed a little startled. He shouted to his colleague out the back which is obviously where they are stored and I was asked for my name. The ‘account number’ or the code I was sent to via text message was requested and tapped into the Collects+ machine and I was also asked for a form of ID.

After this everything was pretty simple – after signing for the parcel I was given the item and the receipt.

I must say I didn’t find the convenience store the friendliest of places to collect the goods from – I wasn’t actually buying anything from the shop itself and they didn’t seem that familiar with the process. From an ASOS brand point of view there is a possible mismatch between the glamorous website and fab customer service, and then the slightly unfriendly experience in the corner shop.  Although Collect+ allows ASOS to compete with the likes of Oasis and New Look, who can already offer collect from store, the experience in those stores is much more aligned with the retailer’s brand. I’m also not sure whether I would prefer this method of collection to that of a locker collection, as locker collections may be faster and more secure.

Having said all of that, the location of these stores makes the ASOS Collects service very convenient indeed. If I were to regularly use this same shop for my collections then I’d get more comfortable and the shop owners would start to see the benefits – after all, I imagine it’s quite easy to tempt most ASOS customers into buying a copy of Vogue?

Overall, I found the Collect+ process really quick and easy and would definitely recommend it to anyone with a hectic lifestyle who can’t be present for deliveries at home, and like the convenience of picking up their ASOS orders without having to go out of their way.

Try out the ASOS Collect+ service and let us know about your experience!

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Nice new ‘Inspire Me’ tool on Lastminute.com

I really like the new ‘Inspire Me’ tool on Lastminute.com. It’s aimed at customers that know they want to go away on a short break, but don’t necessarily know where they want to go. It’s an idea that would suit hotel chains with multiple properties dotted around the country or the world.

It’s very simple to use. Instead of me having to choose a location and then look through the options, I can go onto Lastminute.com and use the sliders to specify:

  • when I want to go
  • how much I want to spend
  • what my priorities are (shopping, culture, partying etc)

It then presents relevant city break ideas. And it works – my request to go partying somewhere has returned a 3 night stay in Dublin:

Thanks to our friends at Econsultancy for bringing it to our attention.

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