Bricks-and-Mortar Online OnlyVS

How  to  Win  the  Omni-­‐Channel  Battle

CMA Webinar September 12, 2013

Simon RodrigueVice  President,  eCommerce  &  General  Manager  Walmart.ca,  Walmart  Canada

Brian ClareyVice  President,  Client  PartnershipsNurun

Today’s Speakers

Introduction

Keeping up with the consumer

of  retailers  say  multichannel  customers  are  signiCicantly  more  proCitable47%

of  retailers  say  consumer  expectations  have  outpaced  their  ability  to  deliver  cross-­‐channel  experiences51%

SOURCE: OMNI-CHANNEL 2013: THE LONG ROAD TO ADOPTION, RETAIL SYSTEMS RESEARCH, JUNE 2013

IMAGE CREDIT: YELLOW, THE NOUN PROJECT

Mobile shoppers are empowered shoppers

of  consumers  use  devices  in-­‐store84%

of  consumers  are  smartphone  shoppers79%

SOURCE: MOBILE, IN-STORE RESEARCH, GOOGLE SHOPPER MARKETING AGENCY COUNCIL, APRIL 2013

IMAGE CREDIT: MATTHIEU MERCIER, THE NOUN PROJECT

Handling newcompetitive (online)pressures

Canadian  online  shoppers  have  made  purchases  from  retailers  outside  of  Canada

68%

SOURCE: FORRESTER RESEARCH INC., JULY 2013IMAGE CREDIT: MICHAEL LOUPOS, THE NOUN PROJECT

Handling newcompetitive (offline)pressures

American  retailers  are  quickly  invading  the  Canadian  market

IMAGE CREDIT: JULIE SODERBERG, THE NOUN PROJECT

Maximizing every interaction

The  biggest  attitudinal  shift  (from  14%  only  a  year  ago  to  25%  now)  comes  from  retailers  who  now  believe  that  the  value  of  the  digital  channels  is  that  they  provide  consumers  with  ‘everything  you  need  to  know’  to  make  the  best  purchase  decisions.”

SOURCE: OMNI-CHANNEL 2013: THE LONG ROAD TO ADOPTION, RETAIL SYSTEMS RESEARCH, JUNE 2013

Technology as unifier

SOURCE: OMNI-CHANNEL 2013: THE LONG ROAD TO ADOPTION, RETAIL SYSTEMS RESEARCH, JUNE 2013

Biggest  organizational  challenges  to  omni-­‐channel  success:3• Don’t have a single view of

customers across channels• Inventory and order management

not integrated• Store systems are too difficult to

change and adapt

IMAGE CREDIT: FRANCISCA AREVALO, THE NOUN PROJECT

Takeaways

Get the basics right

I  think  some  people  will  think,  ‘Well,  we  can  just  go  out  and  buy  it,’  but  buying  technology  is  just  the  starting  point,  you  still  have  to  put  into  place  the  return  policies,  the  delivery  policies.”Darren Meister, Associate ProfessorThe Richard Ivey School of Business

SOURCE: CROSS-BORDER ONLINE SHOPPING EMBRACED BY CANADIANS, HUFFINGTON POST, MAY 5, 2013

Get the basics right

• Pricing transparency• Inventory visibility• Enhanced levels of service

Basics  to  ensuring  that  you’re  maximizing  the  opportunity3

IMAGE CREDIT: EDWARD BOATMAN, THE NOUN PROJECT

The  Canadian  consumer  is  heavily  engaged,  and  basically  is  an  active  participant  in  the  Internet  economy  and  I  think  our  companies  need  to  follow  suit.”

Colin McKay, Head of Public Policy & Government Relations, CanadaGoogle

Focus on consumersnot channels

SOURCE: CANADA ONLINE SHOPPING, E-COMMERCE LAGS G20 PEERS, HUFFINGTON POST, MARCH 19, 2013

Focus on consumersnot channels

• Map your customer’s path to purchase

• Align features and functionality along their path

• Define a content strategy to drive the experience

Thought-­‐starters  to  consider3IMAGE CREDITS: PATRICK; ADAM MULLIN; EDWARD BOATMAN; JORIS HOOGENDOORN; JUAN PABLO BRAVO; ED GRAY, THE NOUN PROJECT

Context anddata drive utility

Use  smartphones  to  Cind  information  while  shopping  rather  than  seeking  out  employees  for  help

33%

SOURCE: MOBILE, IN-STORE RESEARCH, GOOGLE SHOPPER MARKETING AGENCY COUNCIL, APRIL 2013

IMAGE CREDIT: MATTHIEU MERCIER, THE NOUN PROJECT

Doing new thingsin new ways

Omni-­‐channel  removes  ‘channel’  from  the  equation  and  instead  focuses  on  brand  touchpoints  and  the  overall  brand  experience.  In  so  doing,  it  creates  a  sense  of  brand  relationship  that  heightens  customer  satisfaction  and  engenders  increased  trust.”John Stelzer, Worldwide Industry LeadIBM Retail Smarter Commerce

Organize foromni-channel

SOURCE: WHEN IS OMNICHANNEL NOT OMNICHANNEL, RETAIL INFO SYSTEMS NEWS, SEPTEMBER 3, 2013

Unified technicalplatform

Changes  that  will  increase  your  chances  of  omni-­‐channel  success3• Design a single view of

customers across channels • Integrate inventory and order

management• Change store systems to

adapt to omni-channel opportunities

Test and learn

We’re  focused  on  creating  in-­‐store  experiences  and  testing  new  technologies  that  make  smartphones  an  even  more  useful  shopping  companion  for  guests  in  our  stores.”

Eddie Baeb, Corporate CommunicationsTarget

SOURCE: TARGET TIGHTENS FOCUS ON MOBILE, MOBILE COMMERCE DAILY, AUGUST 30, 2013

Thank youQuestions?

Bricks-and-Mortar vs. Online Only How to Win the Omni-Channel Battle