Omni-Channel (R)etail Evolution

Omni Channel: The (R)etail EvolutionW h a t ?

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Omni-channel means our stores, website and mobile devices are all working in unison- and seamlessly behind the scenes – to the benefit of the customer.

We are driving the customer online and online customers into the stores. We are using mobile to feed both stores and online.

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- Macy’s Inc.

However….


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Omni-channel is to create aseamless unified experience across ALL physical & digital channels.

The Goal: to becomeDevice, Channel & Location agnostic

Omni-Channel is just Multi-Channel/Cross-channel !NOT


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TraditionalE-

Commerce

Multi-Channel

Omni-Channel

The Business model evolution

Customers shop at brick & mortar stores

Customers shop online throughe-commerce websites

Customers shop via multiple channels: retail stores & online

Customers engage anywhere via integrated, seamless experiences

There is a clear trend in many industries toward the use ofmulti-channel approaches to engaging with customers.

But in focusing on multi-channel, companies may be overlookinga more fundamental need—for a seamless, omni-channel

approachthat provides a single, unified experience for the customer

across all channels. #

#Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’

Omni Channel: The (R)etail EvolutionW h y ?

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Because Consumers Shop…

ANYTIME

ANYWHERE

ANY DEVICE


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Browse offline Buy OnlineConsumers are diversifying the way they shop for and acquire goods, becoming increasingly open to buying both online and in-store depending on their needs at time of purchase.

A significant number of shoppers who intend to buy their item in the store, ultimately purchase online – primarily due to price and convenience.

“Showrooming”

Today’s consumer is sophisticated and opportunistic, navigating between store & online environments interchangeably to meet their shopping needs of the moment.- Jill Puleri, Global Retail Leader

(IBM Global Business Services)

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Image credits & Source: IBM Institute for Business Value survey


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Understanding Cross-PlatformConsumer Behavior• A large number of active

consumer are multi-screeners. Most of consumers’ time is spent in front of a screen – computer, smartphone, tablet and TV

• The device we choose to use is often driven by our context: where we are, what we want to accomplish and the amount of time needed

• Smartphones are the backbone of our daily media interactions. They have the highest number of user interactions per day and serve as the most common stating point for activities across multiple screens

The NewMulti-Screen World

Image credits & Source: Google Report ‘The New Multi-Screen World’

Omni Channel: The (R)etail Evolution

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Consumer Touch points

Consumers are already sourcing information in multiple ways- brands need to ensure that they are present where the consumers are looking…

W h y ?


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Lines between offline & online shopping experiences are blurringOnline & offline shopping experiences coexist - across pricing, functionality, and promotions

• Research, View, Purchase: The shopper's journey looks less like a funnel and more like a flight map.

• People are shopping smarter: Shoppers are using online & showrooming to make an informed purchase.

• Trusted connections are coming online: Connections are happening both online and offline. People are sharing their opinion on products not just with a group of friends, but with millions of people.

‘Seamless’ Shopping

Image credits & Source: Google & Ipsos Holiday Shopping Intentions Study

The Path to purchase will have many touch points


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The New, Non-Linear Purchase Journey

Image credits & Source: Retail touch points exposed (Slideshare presentation)

Awareness


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Awareness

Consideration


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Awareness

Consideration

Purchase


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• The customer’s journey is now DYNAMIC:A non-linear path to purchase as consumers enter and exit relationships with brands via much less predictable points, or as they circle back to choices made previously.

• The journey is more INFLUENCED:More content than ever is being put in front of customers, It is available anytime and anywhere, and it can come from or through anyone.

• The journey is CONTINUOUS:The touch points consumers are exposed to are “always on.” Evaluation/discovery & not necessarily purchase is the focal point.

Consumers’ journey has fundamentally changed in3 significant dimensions:

Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’

Omni Channel: The (R)etail EvolutionConsumer

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Old Consumers vs. New Consumers

Lowest Price

Waiting for solutions

‘What’s in it for me?’

Seeking more ‘stuff’

Trusts marketing messages ‘on the box’

Passive recipient of brand

communications

Total Value

Demanding solutions

‘What’s in it for me?’

Seeking meaningful Experiences

Looks at ingredients/information ‘on the back of the box’

Active co-creators of brand content, products & experiences

The new consumer is a value-aspirational, practical purchaser. They purchase with a purpose but are unwilling to make practical trade-offs especially in a touch economy.

Image credits & Source: iqmetrix.com


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Who is the New-Age Consumer?


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Customers are becoming more complex:


• MORE KNOWLEDGEABLE thanks to Internet accessibility and online consumer-created content and social networks.

• MORE DEMANDING due to customers’ redefinition of what value means to them. For example, time-compressed consumers are increasingly prioritizing convenience.

• MORE EMPOWERED, consumers follow their unique requirements and increasingly pursue self-service and multi- channel options.

• MORE COLLABORATIVE, increasingly bring their own devices, apps and other tools from outside the ecosystem of the service provider, and thus increasingly determine not just what services they wish to consume, but exactly how they wish to consume those services.

• MORE INTERACTIVE, as consumers actively engage in online dialogue and content sharing and produce their own content for personal use and online publishing.

• INCREASINGLY ON THE MOVE, thanks to new capabilitiesfor mobile purchase and consumption of content and services anytime, anywhere.

Omni Channel: The (R)etail EvolutionTheir Needs

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The 4 C’s of Consumer needs

CONNECTIONSConsumers expect to connect with brands anytime, anywhere... especially on their smartphones & handheld devices.

CHOICE Today's consumers are not limited by what they can find in a store, or even the goods they find in their own country. They want selection and they want online, mobile and in-store availability.

CONVENIENCETime-starved consumers are expecting the convenience of shopping online or in store, but also the convenience of ship to home, pickup in store, or even pickup at another convenient location.

CONVERSATIONConsumers likely begin their journey on social media looking for conversation, and most importantly look for recommendations. But, it goes beyond search. Consumers are looking for conversation and connection with brands they value."

Omni Channel: The (R)etail EvolutionTheir Needs

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Customers have…Higher Expectations, More Power and Choice

Brands have to…Be engaged in their eco-system

Community + Influence (vs.) Push + Control

Be at a channel of choiceAnywhere, Anytime, Increasingly Self-serve

Be relevantRelevance + Dialogue = Influence on Choice


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Customer Expectations from Brands


Their Needs

KNOW ME Personalized Interactions

“...Recognizes me, my existing subscription; Service & Interaction history with the brand.”

“...Acknowledges and tailors my interactions based on recent actions across channels.”

SHOW ME YOU KNOW ME Targeted Promotions

“...Personalizes offers and target products and promotions at a price that’s right for me given my likes.”

“...Helps me comprehend the benefits in easy-to-understand language tailored to my profile/account type, context and knowledge level.”


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Customer Expectations from Brands


Their Needs

ENABLE ME In Social, Mobile & Retail Channels

“...Makes physical/online shopping and interacting with the brand convenient and hassle-free using my preferred channel.”

“...Allows me to express myself and share my insights, opinions and recommendations.”

“...Equips me with resources that help me validate my choices and provides me with insightful advice on a complete solution for me.”

VALUE ME I want control of my purchase process

“...Grants me complete flexibility to configure my product/service& payment options in a manner that yields maximum value for me.”

“...Rewards me for my loyalty and depth of relationship and the degree of influence I wield on others’ purchases.”

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Omni-Channel Challenges

INNOVATIONInnovation is at the heart of Omni-channel. (R)etail is becoming a melting pot of competition & only the fittest and agile will survive. Innovation can be addressed through simple, meaningful solutions to the basic question: ‘How can we meet & surpass customer needs?’ The solution while addressing this question has to be unique, differentiated and easy for the customer to opt-in.

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H o w ?

Transforming a tired multi-channel retailer into Omni-channel operations requires the business to face up to the following challenges:

CHALLENGE

2 TECHNOLOGYCentral technology applications will be needed across the enterprise to create a unified customer experience. ERP systems need to be capable of integrating with the web, mobile, social and store channels. Third parties need to be tightly integrated with companies at a technology and business level.

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Omni-Channel Challenges

CUSTOMER JOURNEYThe customer’s ‘discovery’, purchase and review/feedback journey is very vital to any brand. Mapping these touch points to the most appropriate channels enables businesses to create the right functionality. Once the primary purpose of a channel is known, it can be then optimized for that purpose.

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CHALLENGE

4 SETTING THE PACETo implement an omni-channel business requires a commitment to action and change. Right from systems to people, processes and training and people: every aspect needs to be aligned to create the desired experience. Each change will take time but will require the right pace:not too fast to accelerate into lapses & not too slow to miss the opportunity to scale.

CHALLENGE


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4 Key factors for Omni-Channel retailing

Source: Retail the Consumer Way (Infographic)

CENTRALIZE Company & Customer DATA• Connect all channels with consistent customer

and product information

• Relevant & targeted promotions and communication across channels; Ensure uniform pricing

• Harness easy-to-use business intelligence tools that allows data analysis across parameters to derive insights

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Powered by technology, analytics, mobility and flexible marketing operations, Omni-Channel offers a tremendous

growth opportunity for companies that can out-innovate and out-execute their ever-expanding list of competitors. And they can

do so by integrating across all functions, products and services, and ultimately, by providing personalized customer interactions

across all channels.


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Support every CHANNEL your customers use

• Be ready to change & adapt with customers as buying process channels continue to develop & evolve

• Give customers accurate inventory information as well as choices for alerts, backorders and reorders

• Provide customers an easy, positive shopping experience: on their mobile device, online and in the store…every time

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For brands/services to provide a truly ‘effective’ Omni-channel experience, they have to allow customers the option to purchase on their own terms –Browsing, Ordering, Delivery & Returns to be enabled both Online and in the Store. Omni-channel should support every combination.1


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Efficiency & control over INVENTORY• Give sales teams visibility & real-time visibility of

stock quantities & allocation/location

• Automate reorder alerts to meet the demand for fast-moving products from across channels

• Ship from closest location- whether store or warehouse or vendor- to handle pickups & restock efficiently

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3 Responsive & flexible ORDER MANAGEMENT• Support flexible procurement & shipment to

fulfill orders and deliver promptly

• Give customers a wide range of payment & shipping options

• Offer full range of shipping and pick up options, whether order is placed online or in store.

We are now as much a media company as we are a design company

because it is all a part of the overall experience- Christopher BaileyCreative Director, Burberry

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Omni-Channel (R)etail Evolution

Marketing

Transcript of Omni-Channel (R)etail Evolution