Retail CXO Roundtable - Strategies For Digital Transformation


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Retail CXO Roundtable - Strategies For Digital Transformation

  1. 1. Retail  CXO  Roundtable   Strategies  for  Digital  Transforma1on  
  2. 2. About  Retail  TouchPoints  ü  Launched in 2007ü  Over 25,000 subscribersü  To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP
  3. 3. Agenda  •  IDC  Maturity  Model  •  Customer  Centricity  •  Social  Media/Integra1on  •  Omni-­‐Channel  •  Innova1on  
  4. 4. Speakers  Moderator   Speaker  Andrew  Gaffney   Ivano  OrHs  Publisher/Editor   Head  -­‐  Interna1onal  Retail  TouchPoints   IDC  Retail  Insights  Panelist   Panelist  Dwight  Moore   Richard  Clarke  Global  Industry   VP  Global  Retail,    Director,   Fujitsu  Manufacturing,  Retail  
  5. 5. New Rules for RetailDelighting the Customer at the Boundaries of Supply Chain Optimization and Engagement Orchestration
  6. 6. The New ConsumerBehaviors become habits.Habits become experience. © IDC Retail Insights Visit us at 6
  7. 7. The New Customer Journey OmniChannel Momentsof Participation §   Con1nuos   Research   §   “We  stock  what  you  will   buy”     Discount  /   Browse   Reward   “The  new  archetypes  of   OmniChannel  customers  –   digitally  connected  and   instrumented,    lifestyle  driven   SHmolous   Transact   and  inspired  by  unique   experiences  with  their  preferred   brands  simultaneously  across  all   of  the  available  sales  channels   Follow  up   and  customer  touch  points”    
  8. 8. The future is now
  9. 9. Macy’s – ‘Online Inside’•  292 stores as distribution centers for online orders•  POS "search and send" inventory promising and shipping•  Online social-shopping inside stores on "Nexus" kiosks •  Customer ratings and reviews •  Shopping list •  Facebook friends sharing•  Expanding "Beauty Spot" kiosks•  Bringing endless aisle capabilities on mobile devices•  item-level RFID for inventory visibility and autoreplenishment (850 stores)
  10. 10. Virtual Stores – ‘OnlineOutside’§  Tesco, Woolworths,, Ocado, John Lewis, Sears, Peapod, §  High traffic locations §  “virtual” displays on walls §  QR codes for each item §  Mobile app §  New delivery options
  11. 11. IKEA Catalogue – Store at Home
  12. 12. Omnichannel Case Study: John Lewis §  OmniChannel shoppers spend 3.5 times more than single channel shoppers §  27% of John Lewis customers research what Online they want in store and then purchase online Inside §  Over 60% of customers research online before going to the store §  Online Takes 25% of All Sales While increasing Sales in Store Too Seamless §  Click-and-Collect Sales Have Doubled Year- experience on-Year Since 2009, and Accounts for Over 20% of Online OrdersOnline Delivery §  M-Commerce Sales Have Doubledstore §  Mobile Use in Store Plays a Pivotal Role in Providing the Complete Omnichannel experience
  13. 13. How will you enable OC businesstransformations? 5 Key Actions.. Goal: intelligently leveraging, orchestrating and efficiently executing OmniChannel moments of customer participation into the brand experience§  POS become SOP - Store Operations Platforms§  Retail needs a new platform - O3§  OC Real-time Intelligence Foundation§  OC Execution Excellence (fulfilment, promo, merchandising, ...)§  New business performance metrics/KPIs © IDC Retail Insights Visit us at 13
  14. 14. Retail needs a new platform - O3 Goal – Customer Experience Optimization Foundational technology enablers – Cloud, Big Data, Social, Mobility O3 Platform – central information repository, store technology (mobile, self, sensors, RFID,..) & process orchestration Intelligence Foundation Four Functional Domains – Commerce, Marketing,Source: IDC Retail Insights, 2012 Fulfilment, merchandise
  15. 15. OC Commerce & Marketing Maturity Model Continuos Experimentation of New Channel InitiativesMaturity Level Phase 0: Phase 1: Phase 2: Phase 3: Phase 4: Phase 5: EXPERIMENTATION FOUNDATION CONVERGENCE PRECISION IMMERSION OPTIMIZATION Context-Aware OCExperience Customer Offer/Loyalty OC Basket of Offer/Loyalty Targeted Real-time Personalization Goods OC Basket of Value Segmentation OC Offer/Loyalty Offering multiple Lifetime Next Best Value-Add Service Cross channel On-Demand Differentiation channels Cross channel Assortment Action Dialogue services (Click & Support Services Self-Learning OC collect; loyalty,..) OC Customer “Zero” OOS Online Inside Experience Participation Real-time Thin/smart clients Data Foundation Technology capabilities Embedded touchpoints; POS = Single Application Applications for a O3 Platform (all gateway to the StoreTechnology Intelligence O3 optimization and customer facing channels) other channels emerging Model (including location) omnichannel OC Fulfilment and Single transactional technologies experience Architecture best Predictive Analytics merchandising engine (store, integration practice Advanced customer mobile, online) Sensors Inventory/RFID intelligence Social integration Omnichannel SC, Fulfilment and DC Omnichannel Single Message Embedded Store/Online structure Customer-centric OmnichannelProcess & inventory merchandising Marketing Defining the OC Price Culture People integration Customer Business Case Optimization OC CRM Continuos OC OC KPIs Experience OC Business OC Promotions Process Identification Innovation Performance Optmization Management Management
  16. 16. Essential Guidance – A RoadmapCost Containment Productivity Platforms Omnichannel Revenue30% -> 10% 60% -> 40% 10% -> 50%Justified based on Justified based on the Justified based on astandard ROI. Includes: option value of scale. straight business case. Includes: Includes:•  Operational Waste •  O3 Platform •  Mobile Commerce•  Insurance Loss •  Cloud •  Social Commerce•  Energy Management •  Big Data •  Ecommerce Conversion Rates•  IT Support Costs •  Mobility •  On-Line Inside (the store)•  Indirect Expenses •  Social Business •  Expanded Private Label Use Savings to Fund: Create Ability to Support More:
  17. 17. Thank You! Question?Ivano OrtisHead – IDC Retail Insights (office)+39-3480092223 (mobile)Join me & your peers in the conversations in ourIDC Retail Insights Community
  18. 18. BECOME A CUSTOMER COMPANY:CONNECT WITH YOUR CUSTOMERS IN A WHOLE NEW WAYDwight MooreGlobal Industry Director, Manufacturing and
  19. 19. Winning Customer-Centric Retail Strategies 1.  360  degree  view  of  the  customer  across  channels.   2.  Bridge  social,  online  and  in-­‐store  experiences  into  a   seamless,  loyalty-­‐inducing  conversa1on.   3.  Drive  employee  empowerment/educaHon  through   collaboraHon.   4.  Transform  shopper  experience  innovaHon  into  a   core-­‐competency.  
  20. 20. Burberry Increases Productivity with Burberry World$2B Luxury clothing retailer9,500 employees, 444 storesBurberry WorldCustom collaboration platform for employees withgroups, profiles, and feeds
  21. 21. Connecting with Customers In a New Way Social 9,500   Supply  Chain   Employees   Customer World  for   Profile Partners   Social  Clienteling   VIC  Experience   Burberry   Body   World Customer  Service:   Mobile  Apps:     The  Burberry   Runway  to   Experience   Reality   Back  Office     Social   Integra1on   Media   Stores  
  22. 22. Social Media IntegrationRichard Clarke, VP, Global Retail, FujitsuJanuary 2013
  23. 23. Key Issue #1 – Getting Engagement “Social media is a free, massive focus group, taking place in real time. And it is taking place with or without your permission.” Rick Bendel Global Chief Marketing Officer Walmart …retailers don’t have customer engagement and process control INTERNAL USE ONLY 24 Copyright 2013 Fujitsu America, Inc.
  24. 24. Key Issue #2 – Measurable Value1.  Direct f-commerce has delivered mixed results – some sites removed2.  More retailers are trying to convert ‘fans’ into brand advocates (‘likes’, ‘fan first offers’, ‘focus groups’)3.  ‘Social clienteling’ is combining social, mobile and data analytics tools to drive personalised marketing4.  In store integration will follow – ‘checking in’ sites and instant customer service …retailers need to balance social engagement with brand promotion INTERNAL USE ONLY 25 Copyright 2013 Fujitsu America, Inc.
  25. 25. Top – 2012 Fashion Week•  UK fashion brand – 300+ stores, 39 countries•  2 million+ people in 100 countries tuned in to ‘shoot the show’ (200m ‘exposed’ to content)•  Facebook fashion fans – via an integrated camera – were able to capture and customise key looks•  Everything in the video (clothes, music and cosmetics) could be bought and shared across every platform, channel and device Topshop Partner with Facebook on Technology - Creating Fashion First - YouTube …showing how to convert ‘likes’ into customer satisfaction and business value INTERNAL USE ONLY 26 Copyright 2013 Fujitsu America, Inc.
  26. 26. – social commerce INTERNAL USE ONLY 27 Copyright 2013 Fujitsu America, Inc.
  27. 27. – social commerce INTERNAL USE ONLY 28 Copyright 2013 Fujitsu America, Inc.
  28. 28. INTERNAL USE ONLY 29 Copyright 2013 Fujitsu America, Inc.
  29. 29. Thank  You—Con1nue  the   Conversa1on  •  Visit  Fujitsu  booth  #1033  at  the  Social  Clienteling  Tas1ng   Sta1on  •  Schedule  a  free  CRM  Transforma1on  Planning   Workshop