WEBINAR Screening The World How Digital Signage Displays

WEBINAR Screening The World: How Digital Signage, Displays, And Magic Mirrors Drive Business Value J. P. Gownder, Vice President, Principal Analyst January 26, 2016. Call in at 12: 55 p. m. Eastern time

We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

Agenda › Screening the world › The era of distraction › Transforming customer and

We’re getting accustomed to seeing screens everywhere Apple i. Pad menus at New York

They’re becoming ubiquitous Gas station forecourt interactive display © 2016 Forrester Research, Inc. Reproduction

And they’re getting bigger Interactive directory at Boston Logan Airport © 2016 Forrester Research,

Some look kind of like robots. . . TSA projection screen announcer © 2016

. . . while others are actual robots! The Lowe’s OSHBot © 2016 Forrester

But many more are QSRs The FDA ruled that all QSRs must provide nutritional

Advertising drives many implementations © 2016 Forrester Research, Inc. Reproduction Prohibited 12

Signage leads to two types of value creation › Information overload (1970, Stanley Milgram) › The Paradox of Choice › Cognitive effects: • The mere-exposure effect • The habituation effect © 2016 Forrester Research, Inc. Reproduction Prohibited 14

The mere exposure effect: Just by being exposed, people grow more interested The mere-exposure effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them. © 2016 Forrester Research, Inc. Reproduction Prohibited 15

But the mere-exposure effect has diminishing returns — like hearing a song © 2016

This counterpoint to the mere-exposure effect is psychological habituation Habituation is a process that decreases a behavioral response to a recurring stimulus. We become inured to these stimuli, and ultimately do not “see” them effectively. © 2016 Forrester Research, Inc. Reproduction Prohibited 17

Interest level The psychology of impressions 110 1125 25 + 1 2 3 1 Mere-exposure effect 2 Diminishing returns 3 Habituation effect Number of impressions © 2016 Forrester Research, Inc. Reproduction Prohibited 18

Digital signage can solve these cognitive biases › Use the mere-exposure effect to your advantage. › Overcome the habituation effect with dynamic, frequently-changing content. © 2016 Forrester Research, Inc. Reproduction Prohibited 19

Signage creates two types of value for your business › Digital customer experience (DCX)

And displays enable four key scenarios across DCX and DOX © 2016 Forrester Research,

Branding: make a real-world impact › Canada’s Scotiabank Plaza in Toronto • Interactive content, marketing content • Social media • News (headlines, stocks, and weather) and entertainment (including live broadcasts) © 2016 Forrester Research, Inc. Reproduction Prohibited 23

Inform: from the mundane to storytelling › Spaulding Rehabilitation Center • Video content of scores of patients who have recovered from catastrophic injuries • Mundane information like events, menus, and employee of the week announcements • Wayfinding can be a key scenario here © 2016 Forrester Research, Inc. Reproduction Prohibited 25

Inform WAYFINDING IS A COMMON INFORM SCENARIO © 2016 Forrester Research, Inc. Reproduction Prohibited

Interact: drive customer actions › Uniqlo (Japanese retailer) in China: • Magic mirror display • We. Chat social media campaign • Results: more than doubled We. Chat followers and increased sales of clothing items 30% © 2016 Forrester Research, Inc. Reproduction Prohibited 27

Interact Mc. DONALD’S KIOSK ORDERING, COMMON IN FRANCE, IS EXPANDING IN 2016 France 2015

Work: integrate work processes and safety into worker-friendly displays › High Liner Foods, the leading North American processor and marketer of value-added frozen seafood, employs many hourly production workers. › Use entertainment/sports news to capture attention › Shows HR, weather, inventory levels, schedules © 2016 Forrester Research, Inc. Reproduction Prohibited 29

DCX scenarios address customers along points in the customer journey › Discover › Explore

Whole Foods in Alpharetta, Georgia: Digital signage drives CXP © 2016 Forrester Research, Inc.

Digital signage experiences for education and upsell § Expand your palate — Allows shoppers to discover products they might like based on their individual taste preferences. For example, tapping the tile “tastes like dark chocolate, ” reveals a coffee and wine product recommendation. Tapping the “I like” tile for curry or BBQ ribs reveals a relevant beer pairing for each. § Celebrate your passion — An Instagram feed of photos of favorite pairings from the Avalon, GA community using #WFMAvalon. § Become a connoisseur — Educates and assists customers by answering questions such as, “I’m having a party; how much wine should I buy? ” or “How do I make a cheese plate? ” © 2016 Forrester Research, Inc. Reproduction Prohibited 32

Showrooming is for real A whopping 41% of customers who price check on their

On the other hand, design and technology innovations can alleviate it › Digital signage › Interactive self-help kiosks › “Click and collect” spaces › Intentional flow designs © 2016 Forrester Research, Inc. Reproduction Prohibited 34

DOX helps the employees who serve customers be more effective › Freeing up time for customers › Driving communications strategies › Improving safety and productivity › Empowering new levels of collaboration © 2016 Forrester Research, Inc. Reproduction Prohibited 35

Lower repetitive workloads with dynamic shelf pricing © 2016 Forrester Research, Inc. Reproduction Prohibited

Displays can be dynamic or less so © 2016 Forrester Research, Inc. Reproduction Prohibited

Four technical considerations when choosing a digital signage solution © 2016 Forrester Research, Inc.

There are hundreds of vendors (HERE’S JUST AN INITIAL SNAPSHOT) © 2016 Forrester Research,

Digital displays act as automated sales associates and coworkers › A key connection between digital and physical worlds › The face of intelligent customer service robots › A meeting facilitator, note-taker, and participant © 2016 Forrester Research, Inc. Reproduction Prohibited 42

Please download and read my reports! The Digital Signage And Display Opportunity In 2016 Put Your Digital Business On Display For Customers And Employees Alike The Future Of Jobs, 2025: Working Side By Side With Robots Automation Won’t Destroy All The Jobs, But It Will Transform The Workforce — Including Yours © 2016 Forrester Research, Inc. Reproduction Prohibited 43

Thank you J. P. Gownder jgownder@forrester. com Twitter: @jgownder forrester. com

DIGITAL TRANSFORMATION 2016 May 10– 11, 2016 • JW Marriott Orlando Grande Lakes • Orlando Your customers, your products, your business operations, and your competitors are fundamentally digital. Both business leaders and technology innovators must transform to a thoroughly digital business or face becoming digital prey. New this year: DIGITAL TRANSFORMATION brings these groups together to help you collaborate and successfully transform your organization. Attendees will learn how the newest digital platforms and emerging ecosystems can accelerate their journey, and we'll identify best practices, ideas, and behaviors. © 2016 Forrester Research, Inc. Reproduction Prohibited 45