APPLYING OMNI-CHANNEL TO THE BRAND...

APPLYING OMNI-CHANNEL TO THE BRAND EXPERIENCESetting Priorities to Meet Consumer Expectations

John Stelzer; IBM

© 2014 IBM Corporation

Establishing our terms

The scope of omni-channel retailing

Consumer expectations and Retail implications

Insiders’ view of omni-channel:

Agenda

Troy BrownEVP, E-Commerce and Omni-ChannelZumiez

Ratnakar LavuEVP, Digital InnovationKohl's Department Stores

http://summit14.shop.org/speaker/troy-brown

Multi-Channel = Multiple marketing, selling, and fulfillment channels

Store Create Order Check StatusCancel Order

Initiate/Track Return

Schedule DeliveryChange Order Pickup

Research Product

Create Order Check StatusCancel Order


Schedule Delivery or PickupChange Order

Schedule Store Pickup

Research ProductMobile




Research ProductWeb/Social


Call Center Create Order Check StatusCancel Order




Research Product

Often siloed channels operating independently


Cross-Channel = Enabling the consumer to shop/buy/track/receive/ return purchases via any combination of channels

Store Create Order Check StatusCancel Order


Schedule DeliveryChange Order Pickup

Research Product





Research ProductMobile




Research ProductWeb/Social


Call Center Create Order Check StatusCancel Order




Research Product

May just be a customer-facing façade that’s not supported by seamless backend processes


Omni-Channel = Seamless, end-to-end brand experience delivered consistently across all points and channels of brand interaction

Brand Interaction

Contact Center StoreSocial MobileWeb Delivery/

ServiceMarketing

Post-PurchasePurchasePre-Purchase

Supported by integrated backend processes © 2014 IBM Corporation

Consumers have come to expect seamless omni-channel Retail execution

Source: “Cross-Channel Brand Interaction: Consumer Preferences,” IBM

85%“Expect a seamless experience across all channels for

a retailer”

81%Important to deliver a “consistent brand experience

across all points of interaction”



Omni-channel is important for fostering brand advocacy

92%Delivers a positive overall experience regardless of the

combination of channels

82%Delivers a consistent brand experience across all

points of interaction

Source: IBV U.S. Consumer Study; IBM

Q: How important is each of the following retail capabilities for motivating advocacy?


Top 10 Retail abilities consumers consider most important for choosing one retailer over another

1. Pricing is consistent between online and in-store2. * Offers the ability to locate an out-of-stock item at an in-stock location and have it

shipped to my home3. * I can track order/shipment/delivery status for online purchases via any combination of

channels4. * Offers in-store return of online/mobile purchases5. Assortment is consistent between online and in-store6. Online coupons are redeemable in the store & in-store coupons are redeemable online7. Loyalty program benefits are available online and in-store8. Offers ability to tap a credit card in store to pay for items9. * Offers in-store pickup of online/mobile purchases10. I am able to track my customer service issues across channels

Requires “omni-channel” capabilities* Classic “cross-channel” capabilitiesNon-omni-channel capability

Source: IBV Consumer Study, “Greater expectations: What consumers want from omni-channel”; IBM


But, the “brand experience” extends beyond the purchase


The Brand Experience

• E.g., receiving promotions, ads, and other marketing offers; conducting product research; receiving pre-purchase customer assistance, etc.

• E.g., in-store, online, mobile,call center, etc. checkout/ payment

• E.g., shipped right product, on-time delivery, installation,customer support, problem resolution, in-store pickup/ return processes, etc.

As opposed to the Retail perspective of “pre-sale, sale, and post-sale”


Brand experiences mold the brand relationship


Brand Experiences

Your CompanyCompetitors Elsewhere

Brand Expectations

MetExceeded Unmet

The Brand Relationship

AdvocacyTrust/Loyalty Spend

Satisfaction/Disappointment

Consistency/Inconsistency


The Purchase and Post-Purchase experiences have much greater impact on the relationship with the customer


Q: Which portion of your overall experience with a retailer has the greatest potential to damageyour relationship with that retailer?

16%

38%

46%

Potential To Damage

Pre-purchase

Purchase

Post-Purchase



And, the post-purchase phase of the brand experience is crucialWhich is more important in forming your lasting impression of a retailer?




A large majority of consumers consider the Post-Purchase brand experience important for fostering advocacy



Q: How important is a positive post-purchase experience in determining whether or not you would recommend a retailer to other people? [Very Important/Important]

74%Consider a positive post-purchase experience important

for recommending a retailer to other people

86%Of consumers 13-19 years old consider it important


The Post-Purchase phase is where most consumers have seen their loyalty damaged by a poor experience



Q: If you've ever had your loyalty to a retailer damaged by a poor experience, what part of the poor experience most damaged your loyalty to that retailer?

0% 5% 10% 15% 20% 25% 30% 35% 40%

Post-Purchase

Purchase

Pre-Purchase

37%

31%

11%


Loyalty can be a fragile commodity


Q: Thinking of a retailer that has lost your loyalty, approximately how many poor experiences did it take before you began shopping at their competitor(s)?

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5 No retailer'slost my loyalty

24%

36%

13%

3% 1%

22%

# of Poor Experiences Before Loyalty Was Lost

60%


A positive Post-Purchase experience can recover from a bad pre-purchase experience



Q: How likely is it for a retailer to able to 'recover' from a bad pre-purchase experience by delivering a positive post-purchase experience?

52%Likely to very likely to be able to recover with a positive post-purchase

experience

67%Of consumers 13-19 years old consider it likely to very likely to recover

with a positive post-purchase experience


Key Takeaways


Key Omni-Channel Takeaways

• Omni-Channel spans all points of interaction, all channels, and all phases of the brand experience

• Consumers expect an omni-channel brand experience and will select one retailer over another based on their ability to deliver that experience seamlessly and consistently

• The Post-Purchase phase has the greatest positive or negative impact on the brand relationship

• No one company is doing everything in omni-channel, yet …although many are aggressively pursuing it

• There’s no one starting point or evolutionary path that’s “right” for every company


Key Hint: View the brand experience (at every touchpoint) through the eyes of the consumer

Is it seamless; is it consistent; is it relevant to her; and does it strengthen the brand relationship?


Establishing our terms

The scope of omni-channel retailing

Consumer expectations and Retail implications

Insiders’ view of omni-channel:

Agenda

Troy BrownEVP, E-Commerce and Omni-ChannelZumiez

Ratnakar LavuEVP, Digital InnovationKohl's Department Stores

http://summit14.shop.org/speaker/troy-brown

Thank you.

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