1. >>APMG 8119: DIGITAL ENTERPRISE REPORT PREPARED FOR: www.thewarehouse.co.nz REPORT TITLE HERE: Customer Experience By:- Shobana Iyer POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE 2014

2. >>APMG 8119: DIGITAL ENTERPRISE Contents -Introduction -SWOT analysis -Strategic options for better customer experience -Evaluation of options -Conclusion and Recommendations

3. >>APMG 8119: DIGITAL ENTERPRISE Largest Retail Group operating since 1982 in NZ 2 nd largest in online shopping (No 1 – Trademe) Immensly trusted and loved by kiwis Known by customers for it’s - Consistent delivery and customer service - bargains and affordable prices - broad range of products - desirable product range - deals/offers Publicly traded on the New Zealand Stock Exchange Primary competitor’s include Farmers, Kmart, Briscoes and super cheap auto to name a few Introduction

4. >>APMG 8119: DIGITAL ENTERPRISE Estimated market valued at $5.37b by 2016 76% shop online seeking for a lower price online and 75% to get a better overall deal Over 50% of New Zealander’s own a smart phone; 63% of them access the Internet on it everyday 9 out of 10 New Zealanders have access to the Internet but only 1 out of 20 sales are online 74% of users having researched a product or service on their device. 33% of smartphone users have made a purchase on their phone. Mobile ads are noticed by 88% of smartphone users 57% have performed a search on their smartphone after seeing an offline ad. Online Retail Shopping Overview

5. >>APMG 8119: DIGITAL ENTERPRISE Online Retail Shopping Overview

6. >>APMG 8119: DIGITAL ENTERPRISE Evaluation areas - www.thewarehouse.co.nz Wide range of products/Categories (One category – Kitchen) Wide range of products/Categories (One category – Kitchen) Red Alert – Online only deals Red Alert – Online only deals Customised/Preference section Emailer The Warehouse Online Shopping – Customer Experience

7. >>APMG 8119: DIGITAL ENTERPRISE Wide product range

8. >>APMG 8119: DIGITAL ENTERPRISE Wide product range

9. >>APMG 8119: DIGITAL ENTERPRISE Wide product range

10. >>APMG 8119: DIGITAL ENTERPRISE Evaluation By this stage the customer (in this case me) has already gone through the following: -Provided email address Anticipation – To see a clear interface with an experience similar to the Retail experience. (Let us also look at a comparison with “Farmers” Interface – Homepage Great range of products to choose from (stationary, Music & Movies, Books, Homeware etc) Interesting Categories Too much happening with NO freedom for the customer Lack of quality and engaging content Poor aesthetics and User interface Crowded website with no clear focus or navigation Showing what they want to show instead of what you would like to see Result – Confusion and Lack of stickiness

11. >>APMG 8119: DIGITAL ENTERPRISE Red Alert – Online only deals page

12. >>APMG 8119: DIGITAL ENTERPRISE Evaluation By this stage the customer (in this case me) has already gone through the following: -Provided email address -Registered will personal details -Chose Product/Category preferences Anticipation – Sounds exciting. Looking forward to viewing the deals and expecting to see deals on home-ware and preferred category Red Alert – Online only deals Lego – TG (Kids/Parents) Sony system speakers – TG (Male) Huggies – TG (Parents) Result – No Conversion Reason/Gap - Deals are not matching customer’s preferences e.g. I chose kitchen and home ware, but they have not yet collected my demographics and hence don’t know if I have kids or no (Gap?)

13. >>APMG 8119: DIGITAL ENTERPRISE Customised/Preference section

14. >>APMG 8119: DIGITAL ENTERPRISE Customised/Preference section

15. >>APMG 8119: DIGITAL ENTERPRISE Customised/Preference section

16. >>APMG 8119: DIGITAL ENTERPRISE Customised/Preference section

17. >>APMG 8119: DIGITAL ENTERPRISE Evaluation Incorrect name and details entered Limited options in Interests section - Give Customer the freedom to choose from a dropdown and allow to add After telling about my interests, there is no content or no links to that section Has plenty of gaps to address and opportunities to seize. And can leverage on building through constant evaluation. No relationship/engagement built with the customer so far

18. >>APMG 8119: DIGITAL ENTERPRISE Welcome experience with Farmers

19. >>APMG 8119: DIGITAL ENTERPRISE Compare experience with Farmers

20. >>APMG 8119: DIGITAL ENTERPRISE Compare experience with Farmers

21. >>APMG 8119: DIGITAL ENTERPRISE Promotions

22. >>APMG 8119: DIGITAL ENTERPRISE Promotions

23. >>APMG 8119: DIGITAL ENTERPRISE Evaluation By this stage the customer (in this case me) has already gone through the following: -Provided email address Anticipation – To see a clear interface with an experience similar to the Retail experience. Interface – Registration Clean, smooth and quick registration process Customer thinks asking for relevant personal details and is comfortable Customer is in a WOW state (Already a Farmer club member, card will be delivered with clearly specified deals and timeline) Good photo/image quality and variety of range in each category (limited categories)

24. >>APMG 8119: DIGITAL ENTERPRISE Highlights - Competition over Warehouse 1.Clear Interface and easy on the eyes Customer freedom - Sort out option 2. Interesting Sections Gift cards and Ideas Promotions (Limited categories but Good product range, clean product display and navigation) 3. Focused and Clearly segmented Product categories (Target Audience) Good variety Affordable and varied price range Good images and product display 4. Relationship already to the next stage through clearly presented steps and enriched customer experience (Farmers card delivered) - Is the card a differentiating factor or the customer experience? Result – Customer engaged and continues browsing for more

25. >>APMG 8119: DIGITAL ENTERPRISE SWOT analysis Strengths -Wide range of products -Website and Buyer volume potential -High customer awareness and loyalty (trusted brand) -Clear brand USP (Bargains) -Strong Alliances and partnerships -Desirable products at affordable prices Weaknesses -Poor product quality concerns -Shipping challenges: Cost, Delivery time, Infrastructure & Operations etc -Too many categories and products can be a drawback as it lacks focus

26. >>APMG 8119: DIGITAL ENTERPRISE SWOT analysis Opportunities -Self-owned asset capabilities for enriching customer experience -Growth of tablet and smartphone markets -Evolving technology and wider market reach -Increased demand for online bargain shopping -Collaborations and Strategic alliances Threats -Competition and Price-war -Changing Consumer trends -Substitute/Specialist products -Environmental challenges

27. >>APMG 8119: DIGITAL ENTERPRISE Strategy Personalize customer experience 1.Introduce Online Retail Advisors /Therapists for added customer value 2.Always look for ideas to enrich customer experience 3.Try to understand what attracts the customer (product range, quality, display, colors etc.) 4.Lead him instead of leaving the customer Engage the customer 1. Create/Innovate interesting and engaging apps - Price compare - An application for customers to compare prices online and in store as well as competition - Cooking/Gardening related apps for women - Sports/Entertainment related apps for men

28. >>APMG 8119: DIGITAL ENTERPRISE Strategy Make the customer journey fulfilling/holistic 1.Create immersive experiences for the customer by engaging in producing innovative, engaging and entertaining content. 2.e.g. Photos, Videos, Blogs, Customer Reviews, best practice and buyer’s guides, online catalogues, ebooks, webcasts and press releases Invest in the right resources and partners to manage consumer analytics, technology and tools 1.Improve/Optimize Search option on the website and product search seamless 2.Gather Consumer insights through customer reviews, research, analytics 3.Utilize the information gathered to build an innovative strategy

29. >>APMG 8119: DIGITAL ENTERPRISE Conclusion Engage Customer Content Resources & Technology Promotions

30. >>APMG 8119: DIGITAL ENTERPRISE Thank You