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Cross-channel retail, David Hogg, IBM
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Cross-channel retail, David Hogg, IBM

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David Hogg is an IBM Commerce Solutions Lead NE IOT. David will review how world leading retailers are leveraging cross channel retail to maximise sales growth and customer satisfaction. He will …

David Hogg is an IBM Commerce Solutions Lead NE IOT. David will review how world leading retailers are leveraging cross channel retail to maximise sales growth and customer satisfaction. He will address how consumer expectations are changing, what is best practice in the store and the call centre, and how mobile applications are maturing as well as how social networking enhances cross-channel retailing.

Published in: Business, Technology

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  • 1. Smarter Retailing For The Smarter Consumer27 September 2011David Hogg © 20112011 Corporation © IBM IBM Corporation
  • 2. Agenda  Retail Trends  Cross-channel Retail Best Practice  Recommendations To Maximise Growth2 © 20112011 Corporation © IBM IBM Corporation
  • 3. E-commerce outlookWhere we’ve come from Average annual growth rate for online retail spending, 2000 to 2009 36.0% 28.9% 21.2% Source Verdict Research © 20112011 Corporation © IBM IBM Corporation
  • 4. E-commerce outlookCustomer acquisition and loyalty Percentage of consumers regularly shopping online 2003 2009 2013 17.0% 59.4% 66.2% Source Verdict Research © 20112011 Corporation © IBM IBM Corporation
  • 5. Methodology No e-commerce / web site for less than 3 years Your grade = Stupid / Remedial5 © 20112011 Corporation © IBM IBM Corporation
  • 6. Methodology 15% yoy growth You have a web site, maybe mobile enabled Your grade = C / rather average6 © 20112011 Corporation © IBM IBM Corporation
  • 7. 7 © 20112011 Corporation © IBM IBM Corporation
  • 8. Methodology 85% yoy growth  You have a mature web site, may mobile enabled  You have cross-channel integration to store, call centre and CRM applications  You have s single view of inventory  You have cross-channel marketing processes  You are piloting social networking  You are piloting complex mobile applications Your grade = A+/ very “Smart”8 © 20112011 Corporation © IBM IBM Corporation
  • 9. 9 © 20112011 Corporation © IBM IBM Corporation
  • 10. Methodology The future?  You have a business strategy encapsulating e-commerce in the core  Your IT delivery is flexible and can execute tactical business requests10 © 20112011 Corporation © IBM IBM Corporation
  • 11. 11 © 20112011 Corporation © IBM IBM Corporation
  • 12. E-commerce outlookConsumers are “smarter” and have higher expectations 2000s 2010s Is the website fully transactional? Finalising a transaction is fast Can I search for it? Tell me what I should buy Will it be delivered soon? I want it tomorrow How much is delivery? Delivery is included Is it possible to return a purchase? Return postage is included How much extra discount can I get / Is this the cheapest I can get it? what extra value is offered Source Verdict Research © 20112011 Corporation © IBM IBM Corporation
  • 13. Who is the smarter consumer? + + Instrumented: Interconnected: Intelligent: They have They use They have instantaneous access clearly defined multiple to information about expectations of technologies to retailers, products what they want and other consumers’ interact with other consumers from their experiences through technology and with retailers retailer now and in the future 13 © 20112011 Corporation © IBM IBM Corporation
  • 14. Consumer’s expect a seamless cross-channel experience and it pays forRetailers to deliver Research Schedule Check Status Initiate/Track Store Create Order Change Order Delivery Cancel Order Pickup Product Return Research Schedule Delivery Check Status Schedule Initiate/Track Call Center Create Order Change Order or Pickup Cancel Order Product Store Pickup Return Research Schedule Delivery Check Status Schedule Initiate/Track Web Product Create Order Change Order or Pickup Cancel Order Store Pickup Return Research Schedule Delivery Check Status Schedule Initiate/Track Mobile Product Create Order Change Order or Pickup Cancel Order Store Pickup Return 85% of consumers “expect a seamless experience across all channels for a retailer”1 Multi-channel shoppers spend 30% to 50% more than their single-channel counterparts, forcing traditional merchandising activities to deliver a truly transparent connection between all customer touchpoints. 21 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce,2 Source: Gartner, The 2010 Retail Handbook for Becoming Demand Driven 14 © 20112011 Corporation © IBM IBM Corporation
  • 15. IBM’s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND SERVICES Innovation and business value Market and customer mgmt Operating and Organization Models Innovating and aligning business models to Aligning sales, marketing and operations Designing operations, supply chain and the drive value to the customer to engage with customers organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service • Trading Partner Mgmt • Predictive Analytics/Modeling • B2B & B2C Cross-channel • Delivery & Service • Supplier Management • Behavioral Segmentation commerce Scheduling • Supply Chain Visibility • Cross-channel Campaign Mgmt • Distributed Order Orchestration • Customer Self Service • Logistics Management • Search Optimization, Ad • Fulfillment and Supply Chain Enablement • Inventory Optimization Targeting Optimization • Reverse Logistics • Marketing Resource Mgmt • Mobile Commerce • Case Management • Retail Store Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social analytics | Web analytics | Master data mgt Workload Optimized Systems Systems, Storage and Software focused on agility, integration and automation to drive relevant business outcomes15 © 20112011 Corporation © IBM IBM Corporation
  • 16. Agenda  Retail Trends  Cross-channel Retail Best Practice  Recommendations To Maximise Growth16 © 20112011 Corporation © IBM IBM Corporation
  • 17. 17 © 20112011 Corporation © IBM IBM Corporation
  • 18. Head Consultancy – Paul Jervis-Heath “opportunities for growth in the retail industry” Sales Growth (2007-10) from integrated customer experience (ICS)18 © 20112011 Corporation © IBM IBM Corporation
  • 19. Extending multi-channel commerce to the Store addresses some of the most challenging problems faced today… Lost sales due to stock-outs Expand assortment without expanding physical store footprint Deliver on customer expectation for seamless cross-channel experience Expand fulfillment options and sell higher-margin services Increase inventory turns and reduce markdowns19 © 20112011 Corporation © IBM IBM Corporation
  • 20. 20 © 20112011 Corporation © IBM IBM Corporation
  • 21. 21 © 20112011 Corporation © IBM IBM Corporation
  • 22. 22 © 20112011 Corporation © IBM IBM Corporation
  • 23. 23 © 20112011 Corporation © IBM IBM Corporation
  • 24. 24 © 20112011 Corporation © IBM IBM Corporation
  • 25. 25 © 20112011 Corporation © IBM IBM Corporation
  • 26. When questioned about social networks, 33% of consumers said that they are likely to ‘follow’ a retailer … …but there is a value exchange required for those willing to follow a retailer Most important reasons for ‘following’ a retailer Rank Reason 1 Being able to trial new products (free samples) 2 Receiving preferred consumer status* 3 Influencing product development or changes 4 Providing feedback to retailer on customer service or store experience 5 Learning news or industry trends 6 Interacting with other consumers 7 Sharing feedback and reviews with people in my social networkNote: *’preferred status’ referred to things such as access to special promotions or advance sales noticesSource: IBM Institute for Business Value Analysis, Retail 2010, n=32,087 26 © 20112011 Corporation © IBM IBM Corporation
  • 27. 27 © 20112011 Corporation © IBM IBM Corporation
  • 28. 28 © 20112011 Corporation © IBM IBM Corporation
  • 29. 29 © 20112011 Corporation © IBM IBM Corporation
  • 30. 30 © 20112011 Corporation © IBM IBM Corporation
  • 31. Agenda  Retail Trends  Cross-channel Retail Best Practice  Recommendations To Maximise Growth31 © 20112011 Corporation © IBM IBM Corporation
  • 32. Recommendations To Maximise Growth  To achieve above average growth – cross channel retail is your near term objective  Establish a business strategy that encompasses all aspects of e-commerce  Buying  Marketing  Selling  Servicing  IT must select flexible “e-commerce platforms” to support tactical business requirements  Embrace Social Media - it will become the most important personalised consumer touch point for cross channel marketing and promotions  Develop Mobile applications to assist consumers shopping (not simply an order capture platform)32 © 20112011 Corporation © IBM IBM Corporation