Omni-Channel Retail : Bridging the digital and brick & mortar divide to drive sales & loyalty
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Transcript of Omni-Channel Retail : Bridging the digital and brick & mortar divide to drive sales & loyalty
Bridging the Digital And Brick & Mortar Divide
A Cry for Help…
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“ I need a way to convert my consumers when they are
already in my store!”
Simon Siah
Owner, LifeCycle
Yet… Challenges in Social / Digital Media remain
#1 Drive (Retail) Sales
Driving sales through Social
Media, especially businesses with physical retail
outlets
#2 Leverage on Advocacy
50K ‘fans’ means little, 5K
advocates means the world!
Recognize, Reward and Leverage on
Advocacy
#3 Personalization
& Consumer Insights
X thousands of Fans, but no
individual insights, w/o insights, you
can’t personalize.
#4 Single Experience,
Multiple Devices
Creating a social AND personalized experience for the
consumer regardless of which device and platform
they access from
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The Retail Landscape is Changing… Quickly!
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“Fighting the showrooming trend is retail’s #1 priority problem today”
• 40% of shoppers are showrooming• Small savings makes a difference
• 5% savings = 60% will leave the store• 2.5% savings = 45% will leave the store
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We will have to start downsizing our stores over the next five years as customers shift to e-commerce.
On their smaller stores: “When you combine lower rents, lower build out and a smaller total footprint with high sales per square foot, it’s a very powerful economic model.”Walter Robb, Co-CEO
“We’re looking for more ways to combine our e-commerce business into our bricks-and-mortar stores to create an integrated, multichannel shopping experience for our guests.”Daniel Duty, Director of Enterprise Strategy
“The big box store is not the right concept for the future.”Robert Dutton, CEO
Retailers are reviewing their strategy
6 Reasons Why Consumers Visit the Store
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Successful online stores are moving into retail!
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Pop Up Shops
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“In reality, the physical retail world and an online retail world are increasingly integrated - mobile internet and the in-store experience.”
Ron Johnson, former VP of retail for Apple, CEO of JC Penny
Retail is Evolving
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Shopkick helps retailers drive $110M in sales in the 1st year of operations – IBT, Jan’12
Rewards + Geo-fencing, In-Door & Micro-location
Geo-fencing, In-Door & Micro-location
• iBeacon (iOS / Apple)• Qualcomm’s Gimbal (Android)
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The future role of the store will be very different
Retail’s changing landscape – omni-channel customer experience13
Present… … Future
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Omni-Channel Retailing Retailers• A single customer view across all
platforms - integrating customer and shopping data with behavioural profiling, preferences, etc.
• Personalized content, coupons, promotions, pricing, etc.
• Communication to the consumer at any channel
• Integration of frontend and backend operations
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Consumers • Single brand experience across all
channels• Recognized, intimate, personalized• Consolidated rewards / purchase
Reta
iler
Con
su
mer
Global Retail Survey 2012
• What is the most important goal to become a better omni-channel retailer?• Allow the Customer to purchase, take delivery through channels of their choice• Create a single brand identity across channels
• What’s getting in the way?• Don’t have a single view of the customer across channels
• What’s your biggest barrier?• Consolidate our customer data across channels• Gaining better insight into cross-channel customer behaviour, in order to prioritize
• 24% are budgeting for a single customer interaction platform that crosses channels.
• With Marketing taking the lead role on Omni-Channel
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Website / Mobile Apps
The Problem : Physical Shops, Digital & Social Channels in Silos
CHALLENGE Footfall is a number of
unknown customers. No way of identifying them at
the entrance No engagement while in-
store. Conversion is a mystery.
CHALLENGE ROI – How to drive sales from digital to Shop?
Social Media Brick & Mortar Shop / Outlet / Mall
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Omni-Channel Retail Marketing
Engage, Sell, Reward & Service the Consumer Anywhere Drive footfall & sales from Digital to Physical Shops Single Consumer ID & Interface Single View of Customer Across both Digital and Brick & Mortar Channels Gain Consumer Insights to transactions, Profile, Location Personalized Promos, Up-Sell, Cross-sell
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In-Store Web, Mobile & Social Media
3 Group of Retailers, 1 Common Challenge
• Retailers with full digital marketing suite : social media, mobile apps, digital loyalty and eShop
• Retailers starting small : website, maybe eCommerce and Facebook, and wondering if they should go further.
• Retailers with little emphasis on digital : wondering if they should take the plunge, if so, how far and when to start?
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#1 Challenge
Retail Sales : no significant impact, despite having facebook, eCommerce, digital loyalty, email marketing, etc.
How do I justify the ROI?
Key : Use Customer Data & Insights to Personalize Sales & Marketing
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Consumer Insights on your Database !
Coupon Downloads, Content Views, Transactions, Advocacy Actions, Locations
Personalize Content, Promotions, Coupons, etc.
Consumer Data & Tracking across digital & store channels
Personalization is the future of marketing
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ENGAGE
It’s about the Social Shopper
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Empowered Shopper
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Centered on what your brand is passionate about
Think of a Magazine that best presents your Brand
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A Social Media Campaign about Healthy Living Targeted at Women
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A healthy lifestyle social media campaign
Bu
sin
ess
(W
hat)
1. Engage and sustain customer relations (loyalty)
2. Increase awareness and apply OSIM’s brand message(s) – well being, healthy lifestyle
3. Increase sales of OSIM products targeted at Women.
Soci
al M
ed
ia
(How
)1. Socialize content and touch points through personalization and conversation tools.
2. Build lifestyle-centric spaces online that features women’s lifestyle content created by talents / brand ambassadors.
3. Converge sales channels, promotional activities and product placements/reviews to be linked to social media activities.
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Matching Talents’ Profiles to target Customer Segments
Strictly Confidential & Proprietary ©PepperConn LLP 30
HomemakersYoung mums, mothers to
be, stay-home mums. Care givers, family
focused. Tai-tai lifestyle. Finding purpose without
having to work.
Health Fanatic/ Gal Next Door
Relationship focused. Friends, colleagues,
dating. The one whom people go to for a shoulder to cry on. Health & fitness
Focused.
The Independent Female
Managing all on her own. Living life to its fullest. Will try anything once. Street
smart. Corporate go-getter. Results oriented.
Janie AprilGladys
Executive Lifestyle
• Former air-stewardess• Eligible bachelorette • Social network : 300 friends on FB• Fame Awards finalist 1998, ex-model• Passion: shopping for eclectic fashion and
cosmetics found all over the world• Known to close friends as Beauty Encyclopaedia • Takes on the car sales and real estate industry after
5 years with Singapore Airlines. • Her motto: “Live life to the fullest. Try everything
before you die”• Combats work stress by tanning at the beach with
loads of sun block.• Enjoying a glass of wine over good conversation. • Rich social life and occasional night out at clubs
Name : April Lee
Age : 33 years
Occupation : Realtor
3. Executive Lifestyle Content by April
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Conte
nt
& C
onte
xt - Balancing
work, and personal demands- How to maintain shape and health in a stressed out, time limited environment
Connect
ions - Executive
health clubs- Self improvement workshops / seminars
Convers
ati
ons - Poll on the
best executive lunches- Managing bosses and subordinates- Best time management practices
Convers
ion OSIM self-
maintenance and health products – massage chairs, family products, uZap.
Target audience : PMETs, Middle – Senior management executives
Monthly Themes - Overview
Nov Dec Jan
Monthly Themes Keeping in Shape A time for Family, friends and yourself
A Whole New You
Weekly Themes 1. Shaping up2. My Problematic
Areas3. The Low Down on
Gym Membership4. My uKimono
Angle
1. Christmas – time for giving
2. A time for Family3. A time for Friends4. A time for
yourself
1. Living life to the fullest, in tune with the latest2. Lengths taken to look and feel good3. Best buys and best hangouts4. Latest Fads
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Social Media Program (November)
• November’s Theme : Staying in Shape• Product Focus : uKimono
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April Janie Gladys
Week 1 – Shaping up in transition
Transition from Flying days - Complimenting Active lifestyle though fear of age catching up
Flying daysSlowing metabolic rate
Flying daysPost natal weight loss
Week 2 – My Problematic areas
Good genes, eat lots but yet slim. However, need help with spot reduction.
Help! I’ve got a big butt. Rubba tum tum. My hubby’s waist line will need two uKimonos.
Week 3 – The Low Down on Gym Membership
Alternative and fun ways to work out – dance classes, wake boarding, etc.
Hit the road Janie – marathon training. It’s fresh air, get to see Singapore from a different perspective and it’s FREE!
No Pain, No Pain. Forget about the Gym. I just need to get to those problem areas.
Week 4 – Progress update on uKimono usage. Contest Topic
Progress up on uKimono’s impact on their problematic areas, etc.
Contest : Tell us someone you know who you think really needs uKimono. The most interesting article wins. Suggest starting contest in Week 2 and ending by Week 4.
Channels
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Content - Personal Angle Connections - Lifestyle Content Conversations - Invite response1 Challenges staying in Shape as a busy
executive. No time to hit the Gym. Do you really use that Gym membership? My friends who signed up for memberships don’t use them.
Best suggestions on time saving methods to stay in shape.
Follow up article : try the OSIM ukimomo
Personal Blogs
OSIM Blog Article
OSIM Blog
Personal &
Corporate
E-commerce / sales
Leveraging on your Digital & Social Content to Drive Traffic & Sales to Store
36Source : First Data 2013
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SELL
eCommerce – Tipping Point
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Singapore eCommerce • Market size
• 2010 : S$1.1B (66% from middle income >$4K)
• 2015 : $4.4B
• 1.2 Million Online Shoppers (> 18 yrs)• Average Spend per head : $1,492• 40% from local websites
Singapore is a mobile internet community
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• 7.8M mobile phones, 150% penetration• 43% choose mobile over friends• 39% choose mobile over pc / laptop• 60% multitask on mobile while watching TV• 84% check mobile when they wake up in the middle of
the night
8121% Growth in Instagram Users
July’11 – July’12
mCommerce – Tipping Point
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• Total sales from mobile : 20%• Growth Rate (SG) : 20% monthly• Registered Users (SG) : 900K• Typical customer profile : 27 yrs, 75% female
Source : PayPal
Qoo10 mobile application for Asia Pacific :• 64% are Singaporean users
• 37% of total mobile sales by Singaporeans
• Qoo10 SG holds the highest ratio of sales to country size in Asia.
2013 : half of all online shoppers are mobile shoppers (1M)
2015 : mobile commerce expected to be worth S$3B
Rethink the eShop Strategy
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bestseller list, to create a mass market hit
small royalty on a huge range of products
Rethink your product catalogue online
profitable, successful niche product. Not a product for everyone, certainly, but among those that care and are choosing to pay attention, a fantastic choice.
eCommerce Tips for Retailers
1: Store Locator
2: Product Availability
3: Shipping Options
4: Store Pick-Up
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Four options need to be available close to the product page's call-to-action or "add to cart" button:
Source - http://www.parkeravery.com/pov_eCommerce_Omnichannel_Strategy.html
Can I Reserve On-Line & Collect In-Store
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• 55% of eCommerce carts are abandoned due to high shipping cost
• Address expensive shipping issues by enabling easy collection from store or lockers
• Savings from merchant fees from payment gateways passed on to consumer
Is the product, colour or Size Available at My Nearest Store (if not, where?)
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Can I ship directly to my nearest Store?
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Loyalty = Advocacy
• Your biggest advocates are not your most loyal or biggest revenue contributor
• Biggest advocates are mid tier revenue contributors
• Advocacy metrics are influence, personality and network size
• Rewards for purchase has tangible ROI but does little to increase share of voice
• Reward for Advocacy (Social Rewards)
• Consider gamification tactics and features to reward intangibly
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Engage, Sell, Reward & Service : Omni-channel Mayhem
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Breaking Down the Consumer Journey into 4 Key Functions
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Engage, Sell, Reward & Service : Omni-channel Mayhem
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Retail Analytics / BI
Multiple Enterprise Dashboards and Platforms to manage each one
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Engage, Sell, Reward & Service : Omni-channel Mayhem
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Retail Analytics / BI
How do you link them all into a Single View or Database?
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Engage, Sell, Reward & Service : Omni-channel Mayhem
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Retail Analytics / BI
How do you integrate all of that into your consumer touch points?
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Well… Now you can – from a single platform!
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Omni-channel
Transforms retail into a social &
omni-channel experience.
Engage, Sell, Reward & Service
your customers
In-Store & anywhere.
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In-Store Web, Mobile & Social Media
• News & Promotions
• Coupons
• eCommerce with payment
• Reward Points & Redemption, Membership Card
• Assisted Selling• Personalized
Promotions
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Your Branded Mobile Apps / Web
Powered By
Detects Consumer In-Store
Tao oF shop
Store-Assist App (In-Store)
Personalized
Promotions
Data Capture, Insights
Your Website Powered by Tao of Shop, Facebook, Twitter
Tao of Shop Admin Dashboard
Database
Publish, Sell, Reward
Customer Service & Assisted Selling
All-in-One Digital Solution, we provide you with :• Your own branded mobile apps (Android, iPhone,
Mobile Web)• Integrated webpages into your existing website• Integration with your Facebook & Twitter pages• Your own database, content and account mgmt
Consumer
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Posts, Coupons & Personalized Messages
ADMIN DASHBOARD - POSTS• Create once and publish to all - your Brand’s
Website, Facebook & Mobile Apps• Embed coupons in posts to drive traffic and sales
to eShop or physical outlets• Automatic notifications when customers are
near your outlets - Personalized Messages with Coupons
Tao of Shop In-Door / Micro-Location Detection
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• Detects Consumers’ In-Door Location
• at your Outlets
• or Specified Retailers
• Auto-Push Promotions Upon Entering outlet
• Zonal detection – auto push promotions based on Zones within an outlet
Tao of Shop In-Door / Micro-Location Detection
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• Detects consumers’ in-door location within mall w/o the need for consumer to open app*!
• Auto-push promotions near / upon entering participating outlets, personalize based on :
• Consumer’s Profile, • Transaction history • location
Motorola Access Point
*after initial on-site registration
Personalized Promotions – Zones with Markets
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• Zonal Proximity detection – auto push promotions based on location within Markets
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eShop (Website & Mobile)
ADMIN DASHBOARD - eCOMMERCECreate & manage your product catalogue across your website and mobile apps• Includes Payment Gateway, Orders Management
& Fulfilment • Inventory Management• Option to integrate with POS systems• Easy collection in-store with Membership Card
• Orders Mgmt• Inventory Mgmt
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Rewards Points, Badges, Redemption
• Virtual Membership Card on Mobile app
• Points Tracking• Seniority /
Gamification Badges & Ranks
• Customize Rewards / Loyalty Program – Purchase & Advocacy Actions
• Manage Rewards Points & Redemption from Admin Dashboard
Personalized Service & Assisted Selling
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• Reward points with Purchase at Point of Sale (POS)
• Manage Rewards redemptions
Store-Assist App
Operated by Retail or Sales Staff at Outlets
• Identify customers – scan Virtual Membership card
• Service Customers – access to Details & Transaction history
• Manage Orders for Collection / Delivery
• Coupon Validation
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2 3
We are not selling you technology, but a
Marketing Solution
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Engage Your Consumers Anywhere
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Posts Coupons eShopMessages Rewards
Create, Publish & Sell from a Single Dashboard
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Use Online & Mobile to Drive Traffic & Sales To Your Outlets
Acquire membership & Engage on digital & Social Media
1
3 Engage consumers with QR Coded Ads / Media Drive Traffic to Store
2 Locate Consumers near-by. Auto-push content & Promotions to drive traffic into Store.
Engage Consumers In-Store
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Scans QR codes on Product displays to view videos, download brochures / Coupons
3
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Detect individual consumer’s ID when walking into your shop!
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Earn Points for Shares & Referrals
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• Drive FootFall by Rewarding consumer walk-ins.
2
Earn Points for Shares & Referrals
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Auto-Push Personalized promotions / Coupons Based on each Consumer Profile
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• Consumer Profile• Transaction History• Location
Key : Use Customer Data & Insights to Personalize Sales & Marketing
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Consumer Insights on your Database !
Coupon Downloads, Content Views, Transactions, Advocacy Actions, Locations
Personalize Content, Promotions, Coupons, etc.
Consumer Data & Tracking across digital & store channels
Customer Insights – Who are my Customers?
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Customer Insights – What are my customers viewing, downloading, buying?
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Where?
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Segmentation
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Personalization is the future of marketing
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is Modular! Start with what you need First & Scale later
Choose Your Platforms
Choose Your Services
• Social Content
• Coupons• eCommerc
e
• Rewards• Retail
Targeted Users• Malls• Supermarkets• Specialty Stores• Lifestyle Brands
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Benefits
• F&B
• Fast Food
• Cinemas
• Event Organizers
Some of our clients…
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Gain consumer insights = Personalization + Relevancy
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Full Digital Solution across
All channels
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Identify & engage consumers When in-Store : increase conversion rates
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BOOTH : L11
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Contact us for a demo of our proprietary & patent-pending platform :
Adrian Teo
Founder & CEO
Pepperconn Pte. Ltd.
www.pepperconn.com
tel : 6509 5880 mobile : +65 821 821 97
email : [email protected]
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