WINNING IN RETAIL IN AN OMNI-CHANNEL ERA - DO YOU KNOW WHAT AMAZON CAN‘T DO?

JUNE 13TH 2014

Welcome into our world of Retail

WHO YOU ARE TODAY

Todays key note speaker on

“What Amazon can’t do” from WD Partners, USA

KEY NOTE SPEAKER

The hottest ticket at NRF in New York, January 2014

Lee Peterson

Martin Lyngaa Simonsen

Welcome into our world of Retail

WHO YOU WILL MEET

Charlotte Wandorf

Anesh Nikolai Naidu

Joachim Lupnaav Johnsen

Johnny Ottesen

Anders Iversen

Nicky Overgaard Pedersen

Nicolai Steen Worziger

Thomas Holm

Bergen Oslo

Stockholm

Malmö CPH

Helsinki

Tallin

ICG Facts

• Strategy & Transformation

• Commercial Excellence

• Operations Strategy

• Planning & Execution Excellence

• Process Improvement

• Sourcing & Procurement

• Strategic Innovation & Execution

• Finance Management

• Change Management

• IT Management

• Leadership, Energy, Assessment

& Development

12 books

published

400+ Consultants

8+ Years of

experience on

average

5 proven

implementation

principles

250+ articles

published

WHAT IS SHAPING RETAIL TODAY?

Less than a minute on the Internet..

6 mill. Facebook views

1.3 mill. Videoes watched on

YouTube

100.000 New tweets on

Twitter

2 mill. Google searches

20 mill. Pics seen on Flickr

320 New accounts on

Twitter

What’s all the omni-channel “fuzz” really about?

A technology revolution at it’s

prime

Multiple end-user touch

points evolving

New ways to win and retain

customers

Seamless integration of marketing & sales – providing customer with consistent offerings across channels

affecting the total operational value chain from A - Z

‘Retailing is no longer an industry but a function to be pursued by all parties’

The business model in retailing is changing

FROM TRADITIONAL VALUE CHAIN… …TO CUSTOMER JOURNEY RETAILING

Create awareness and build attitudes

Generate traffic and create interest

Facilitate and activate purchase

Generate demand for category

Build relations to ensure repurchase

Leisure/ toys

Gaming/ entertainment

FMCG

Durables/ electronics

Apparel/

luxury goods

Fashion/ clothing

Furniture/ design

End-user

IT/telco

To win in retailing, YOU must choose

to do some things and not others and this

must be reflected in your business model

WHERE TO PLAY & HOW TO WIN ?

The STORE as a sales channel

The STORE as a show-room for inspiration

for go-on-line

The STORE as the contact point for

delivery and service

ON-LINE as a sales channel

ON-LINE as inspiration for

go-2-store

ON-LINE as the expanded product

catalogue

You must initially choose which role the store vs. the on-

line channel should play?

The business model dilemma 1

Cannibalization

or

Competition Implement

The business model dilemma 2

Cannibalization

and

Compensation Implement

Building the right mind-set into the organisation…

Increasing ONLINE sales will cannibalize

IN-STORE sales

ONLINE sales facilitates more sales

in more places

STORE will loose traffic

STORE employees will loose part of their

incentive pay

STORE employees will not support the

ONLINE channel

ONLINE will not become an integrated part of the business

ONLINE will move more traffic to STORE

Customers want an ONLINE channel to

research and purchase

Targeted marketing with customer data collected ONLINE

ONLINE will increase the overall revenue

and profit

… will open up to new value adding opportunities

Provide in-store pick-up and returns

ONLINE sales facilitates more sales

in more places

Increase store network profitability

Reduce in-store focus on “bread and butter”

Bring shopper insight to sales staff

Build volume across channels

ONLINE will move more traffic to STORE

Customers want an ONLINE channel to

research and purchase

Targeted marketing with customer data collected ONLINE

ONLINE will increase the overall revenue

and profit

Ship to where the customer prefers

Differentiate the shopper experience

Display an extended assortment catalogue

Simplify purchase and increase frequency

Drive margins on premium offers &

services

Omni-channel performance is coordinating, strategy,

activities & resources across channels

Ad hoc

• Not organized • Experiments • No alignment

(budgets/KPIs) • No role assignments

across channels • Low involvement from

top management

Digital channels

Physical channels

Low

Low

High

Le

ve

l o

f c

us

tom

er

ce

ntr

ic c

oo

rdin

ati

on

*

Engaged

• Top-management attention

• Management drives selected initiatives

• Pilots • Some common

activities organized • Cross channel

resources deployed

Structured

• Align budget and KPIs • Dedicated mng.

responsibilities • Selected development

projects • Channel roles assigned • Targets and

commercial planning across channels

Leaded

• Top management leads change

• Defined targets and performance objectives

• Daily management of resources/activities

• Dedicated roles and responsibilities assigned

Lived

• Clear common strategic focus

• Free flow of resources across channels

• Integrated solutions for marketing, sales & business intelligence

• Organize in omni-channel business units

*) Based on a Forester 2013 report – adapted by implement

Understanding and fulfilling customer needs across channels are keys to succeed and be

profitable at the same time in the digital era

Implement

Deliver an end-user experience from single to multiple

touchpoints in sync with needs and preferences…

Multi-channel commerce

Single-channel commerce

Cross-channel commerce

Omni-channel commerce

Yesterday Today Tomorrow Future winners

FROM SINGLE TO OMNI-CHANNEL

…mastering complexity and costs throughout the

customer’s journey

BUILD AN OPERATIONAL BUSINESS MODEL TO ENABLE SUPERIOR PERFORMANCE

1) Choice: Interact with customers wherever they want to and enable them to buy

2) Consistency: Provide relevant and consistent info & experiences across channels

3) Continuity: Enable graceful handoffs and trigger re-purchase & loyalty

Channels

Pro

cess

es

Today we will focus on how to align channel elements and

the implication of changes to become Omni-channel…

Seamless delivery across

all channels

• Customers see one brand and multiple touch-points operating together

• Retailers coordinate and operate in a differentiated manner across channels

Implement

Remember... your company is the driver of the cost incurred. The customer is the driver and

owner of your future revenue

Roger Martin

“What needs to be true?”

to WIN in retailing?

Seven must win battles to win in the omni-channel era

2 Find growth

opportunities in

customer journey

management

3 Identify new

sources of income

to add more value

to the customers

7 Seek new ways of

sourcing to ensure

a dynamic cost

base

1 Move from multi-

channel to omni-

channel

4 Transform big data

into customer

intelligence

6 Reinvent network

planning and store

formats

5 Manage category

growth