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Omni-Channel (R)etail Evolution

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More than a buzz word or a trend. Omni-Channel retail is a real opportunity for businesses to adapt, scale-up and tap into their potential customer universe. A simple overview of the changing (R)etail …

More than a buzz word or a trend. Omni-Channel retail is a real opportunity for businesses to adapt, scale-up and tap into their potential customer universe. A simple overview of the changing (R)etail landscape, consumer, purchase trends and what businesses need to align to go the Omni-channel way.

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  • 1. Omni Channel: The (R)etail EvolutionW h a t ? SECTION 1 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. - Macy’s Inc. However….
  • 2. Omni Channel: The (R)etail EvolutionW h a t ? SECTION 1 Omni-channel is to create a seamless unified experience across ALL physical & digital channels. The Goal: to become Device, Channel & Location agnostic Omni-Channel is just Multi-Channel/Cross-channel! NOT
  • 3. Omni Channel: The (R)etail EvolutionW h a t ? SECTION 1 Traditional E-Commerce Multi-Channel Omni-Channel The Business model evolution Customers shop at brick & mortar stores Customers shop online through e-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 of multi-channel approaches to engaging with customers. But in focusing on multi-channel, companies may be overlooking a more fundamental need—for a seamless, omni-channel approach that provides a single, unified experience for the customer across all channels. # #Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
  • 4. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 Because Consumers Shop… ANYTIME ANYWHERE ANY DEVICE
  • 5. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2
  • 6. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 Browse offline Buy Online Consumers 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) Image credits & Source: IBM Institute for Business Value survey
  • 7. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 Understanding Cross-Platform Consumer 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 New Multi-Screen World Image credits & Source: Google Report ‘The New Multi-Screen World’
  • 8. Omni Channel: The (R)etail Evolution SECTION 2 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 ?
  • 9. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 Lines between offline & online shopping experiences are blurring Online & 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
  • 10. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 The New, Non-Linear Purchase Journey Image credits & Source: Retail touch points exposed (Slideshare presentation) Awareness
  • 11. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 The New, Non-Linear Purchase Journey Image credits & Source: Retail touch points exposed (Slideshare presentation) Awareness Consideration
  • 12. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 The New, Non-Linear Purchase Journey Image credits & Source: Retail touch points exposed (Slideshare presentation) Awareness Consideration Purchase
  • 13. Omni Channel: The (R)etail EvolutionW h y ? SECTION 2 The New, Non-Linear Purchase Journey • 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 in 3 significant dimensions: Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
  • 14. Omni Channel: The (R)etail EvolutionConsumer SECTION 3 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
  • 15. Omni Channel: The (R)etail EvolutionConsumer SECTION 3 Who is the New-Age Consumer?
  • 16. Omni Channel: The (R)etail EvolutionConsumer SECTION 3 Customers are becoming more complex: Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’ • 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 capabilities for mobile purchase and consumption of content and services anytime, anywhere.
  • 17. Omni Channel: The (R)etail EvolutionTheir Needs SECTION 4 The 4 C’s of Consumer needs CONNECTIONS Consumers 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. CONVENIENCE Time-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. CONVERSATION Consumers 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."
  • 18. Omni Channel: The (R)etail EvolutionTheir Needs SECTION 4 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 choice Anywhere, Anytime, Increasingly Self-serve Be relevant Relevance + Dialogue = Influence on Choice
  • 19. Omni Channel: The (R)etail Evolution SECTION 4 Customer Expectations from Brands Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’ 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.”
  • 20. Omni Channel: The (R)etail Evolution 4 Customer Expectations from Brands Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’ 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.” SECTION
  • 21. Omni Channel: The (R)etail Evolution 1 5 Omni-Channel Challenges INNOVATION Innovation 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. SECTION 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 TECHNOLOGY Central 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. CHALLENGE
  • 22. Omni Channel: The (R)etail Evolution 3 5 Omni-Channel Challenges CUSTOMER JOURNEY The 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. SECTION H o w ? CHALLENGE 4 SETTING THE PACE To 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
  • 23. Omni Channel: The (R)etail Evolution 5 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 SECTION H o w ? 4 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.
  • 24. Omni Channel: The (R)etail Evolution 5 4 Key factors for Omni-Channel retailing Source: Retail the Consumer Way (Infographic) 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 SECTION H o w ? 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
  • 25. Omni Channel: The (R)etail Evolution 5 4 Key factors for Omni-Channel retailing Source: Retail the Consumer Way (Infographic) 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 SECTION H o w ? 2 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.
  • 26. 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 Bailey Creative Director, Burberry