Value View

The CEO Perspective: Omnicustomer RetailingCatching Up With Customer Expectations

Leading retailers are providing the omnicustomer experience with the help of today’s technology innovations: • Know me: Master data management and unified commerce processes provide a single view of customers, products, pricing, and

orders across multiple demand and delivery channels. • Advise me: Real-time data enables retailers to interact with their customers and gather data on shopping behaviors and preferences

at every touch point. Personalized and relevant experiences can be delivered by analyzing purchase patterns; customer profile and characteristics; engagement through social media, Web sites, and other mediums.

• Let me choose: Comprehensive commerce processes empower retailers to connect with customers, the supply chain, and the finance organization.

Let’s face it. The omnichannel experience is at the core of every retail strategy, and omnicommerce is becoming more and more mainstream. However, it’s not enough for retailers to change their business models as customer expectations are demanding more than what omnicommerce can provide. As a result, the omnicustomer experience is emerging as a new requirement. This strategy offers customers the intimate brand relationship they crave through personalization and approachable brand engagement – whether they are researching a product or making a purchase across multiple devices.

Based on the analysis of top food and drug companies in the 2013 NRF list of global retailers, customer expectations are much further ahead of retailer’s realities.

Figure: Customer Expectations – Ahead of Retail Reality

Cus

tom

er In

timac

y an

d En

gage

men

t

Source: SAP Performance Benchmarking – “Outside-In Analysis of 50 Food and Drug Retailers in 2013 NRF Top 250 Global Retailers List”; 20 out of 50 retailers were not considered for analysis because of inability to assess if they were omnichannel from an outside-in perspective.

63% Are omnichannel 27% Are omnicommerce 10% Are omnicustomer

Customer Expectations

Retail Reality

Omnichannel “Inform me”

“I can find information on products and purchase in

multiple channels.”

Omnicustomer“Know me, advise me, and let me choose”

“My retailer knows my preferences, follows my purchase path, provides valuable advice, and lets me tailor

my shopping and delivery experience.”

Omnicommerce“Make buying easy”

“I can choose where and how I buy across all channels.”

Each approach provides different customer experiences:

Illustrative example*

Omnichannel “Know me”

Omnicommerce “Advise me”

Omnicustomer “Know me, advise me, and let me choose”

Customer • View items online or on a mobile device

• Purchase item through multiple channels

• Participate in a coherent customer loyalty program

• Buy online and ship the purchase to your home

• Complete order and request to pick up the item at the store

• Pause and resume the shop-ping experience at different points within channels

• Receive customer-specific marketing aligned with browsing behavior and purchase history

• Post recipe on social media and receive retailer response • Load shopping list on smartphone and retailer responds in

meaningful way • Order items through an interactive display • Receive promotions based on geolocation data • Start purchase online and complete order on smartphone

* While this is a hypothetical example, customers are experiencing these capabilities today. Turn the page to read how leading companies are providing similar experiences.

Studio SAP | 31938enUS (14/06) © 2014 SAP AG or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Real-Life Examples of the Omnicustomer Experience

www.sap.com/contactsap

The companies below are creating an omnicustomer experience with the latest technology innovations. To get the full story about these real-life examples, scan the appropriate QR code.

Learn more about retail technology innovations by visiting the SAP® Solution Explorer site.

Galeries Lafayette, a European department store retailer, focuses on the omnicustomer experience.

“We just listen to our customers and do what they want. And what the customer wants today is to be able to buy from any channel, interact with any channel, and still be able to be recognized as a Galeries Lafayette customer.”

Alexandre Aubry, CIO at Groupe Galeries Lafayette

eBay and SAP partner to bring innovative solutions to customers.

“I just want to say how excited we are to be partnering with you and the entire team from SAP and Ariba to bring innovative solutions to your customers and to our customers around the world. Bringing the best of SAP and Ariba® Network’s capabilities along with eBay and Paypal’s inventory and global platform. Together we have enjoyed innovating for your customers and customers all over the world.”

John Donahoe, President and CEO eBay

SAP and BMW Group Research are working on the future of the connected car.

One of their objectives is to create a marketplace for drivers by integrating vehicle-related services into cars. Service providers – such as parking garages, gas stations, and restaurants – can be grouped together on a virtual marketplace. Drivers receive tailored, localized offerings when they enter the neighborhood of these businesses.

The Société de Transport de Montréal (STM) developed a loyalty program to immediately reward customers and redefine the customer experience.

Using rich transactional data and a network of partners, STM suggests opportunities for culture, sports, entertainment, and shopping during the customer’s daily commute. Only two days after its introduction, the program’s mobile app was ranked as one of the top Canadian lifestyle mobile apps.

Select sequence: 1:15:25 – 1:16:22

Click on the link or scan the QR code.

Click on the link or scan the QR code.

Click on the link or scan the QR code.

Click on the link or scan the QR code.