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Lowe's CXLab

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Beth Gordon

on 27 March 2014

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Transcript of Lowe's CXLab


Why should the enterprise care?




Source: 2013 IBM
C-suite Study
The more deeply an enterprise understands its customers, the more likely it is to flourish.
So who are the
"Retail Customers of Today"
and what are they telling retailers?
The Next Generation in Home Improvement: Lowe's & The Customer Experience Lab




By: Lauren Canning, Steven Crane, Runbin Dong, Beth Gordon and Nick Nelson

Introducing a Customer Journey powered by IBM Front Office Research


Per their latest Annual Reports, Lowe’s lags behind Home Depot in KPI’s related to
Customer Insight
and
Customer Engagement
.

What if Lowe’s could offer
smarter
in-store discounts to customers to boost same store sales?























Scenario: IBM and Lowe’s engage in a CXLab
“Quickstart Innovation Lab”
focused on increasing customer insight and in-store experience to boost KPIs.

At the end of three months of brainstorming, meeting, and solutioning, the two teams have a solution ready to roll out to a pilot store in Glencoe, Chicago. The team will monitor the solution’s effect on the Sales per Square foot KPI, and make a decision on scaling at the close of a month’s worth of piloting.

Lowe’s has invested $250,000 in the accelerator.


Home Depot and Lowe’s are
leading brands
with distinct demographic appeal.

With a fusion of art, science and technology powered by IBM Research and GBS

How do we bridge the gap in KPI to become more
competitive
&
capitalize
on the recovery of the housing market?

And retail in particular recognizes the importance of customer data.


Lowe’s Target: $300 by 2015

Per their respective Annual Reports, Lowe’s lags behind Home Depot in KPIs related to Customer Insight and Customer Engagement.

What if Lowe’s could more deeply understand their in-store customer to reach $300 in sales-per-square-selling-foot by 2015?




















The United States home improvement market grew by 9.8% in 2012 to reach a value of $234.2 billion.

Recovery

Recession

Market environment is poised to grow again.
Fickle

Empowered

Demanding

Today’s retail customer is ...

Yet, most CxOs recognize that they don’t understand their customers well today.

Customer influence on the enterprise

Customers are increasingly exerting influence on business strategy in today’s marketplace.

A recent IBM C-Suite study shows that leaders across industries are looking to their customers and using customer data to inform their business decisions.
A 2013 IBM/Kantar Rail study
determined that retail leaders have more access to customer data and consistently use analytics to inform their merchandising activities.

Source: “Consumers, retailers and science" −the 2013 IBM/Kantar Retail global CPG Marketing and trade study based on input from 356 decision makers in the sales organization of the CPG companies.

Consumers are empowered with technology and shopping across multiple channels – reinforcing the need for a
consistent experience
across channels and devices.
IBM Customer
Experience Lab
Lowe's CxLab Engagement
Using big data and customer research, the CXLab focuses on innovative breakthroughs in three areas: 
 
Customer insight
: Applying advanced research capabilities, such as machine learning and visual analytics, to predict differences in individual customer behavior.

Customer engagement
: Creating a system of engagement that maximizes value creation at every touch

Employee engagement
: Enabling the organization to meet customer-driven KPIs by empowering employees to engage in new ways
 





Customer Experience Lab Overview
Source: “Consumers, retailers and science" −the 2013 IBM/Kantar Retail global CPG Marketing and trade study based on input from 356 decision makers in the sales organization of the CPG companies.

Source: “Consumers, retailers and science" −the 2013 IBM/Kantar Retail global CPG Marketing and trade study based on input from 356 decision makers in the sales organization of the CPG companies.

So how does this new

Retail Customer

apply to Lowe’s?

We found Lowe’s Corporate Vision perfectly aligned with the market environment. The key lies in their ability to fully understand their
customers
and to capitalize on this
relationship
.

Source: Lowe's and HD Annual Reports 2009 - 2012
Source: Lowe's and HD Annual Reports 2009 - 2012
Source: MarketLine Advantage
Full transcript