Retail CXO Roundtable - Strategies For Digital Transformation
Retail CXO Roundtable Strategies for Digital Transforma1on
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Agenda • IDC Maturity Model • Customer Centricity • Social Media/Integra1on • Omni-‐Channel • Innova1on
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 Salesforce.com
New Rules for RetailDelighting the Customer at the Boundaries of Supply Chain Optimization and Engagement Orchestration
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”
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)
Virtual Stores – ‘OnlineOutside’§ Tesco, Woolworths, Well.ca, Ocado, John Lewis, Sears, Peapod, Klikkapromo.it § High traffic locations § “virtual” displays on walls § QR codes for each item § Mobile app § New delivery options
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
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
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
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:
Thank You! Question?Ivano OrtisHead – IDC Retail Insights Internationaliortis@idc.com+39-02-28457344 (office)+39-3480092223 (mobile)Join me & your peers in the conversations in ourIDC Retail Insights Community
BECOME A CUSTOMER COMPANY:CONNECT WITH YOUR CUSTOMERS IN A WHOLE NEW WAYDwight MooreGlobal Industry Director, Manufacturing and Retaildwight.firstname.lastname@example.org@dwightpmoore
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.
Burberry Increases Productivity with Burberry World$2B Luxury clothing retailer9,500 employees, 444 storesBurberry WorldCustom collaboration platform for employees withgroups, profiles, and feeds
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 burberry.com Stores
Social Media IntegrationRichard Clarke, VP, Global Retail, FujitsuJanuary 2013
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.
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.
Top Shop.com – 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.
Topshop.com – social commerce INTERNAL USE ONLY 27 Copyright 2013 Fujitsu America, Inc.
Topshop.com – social commerce INTERNAL USE ONLY 28 Copyright 2013 Fujitsu America, Inc.
INTERNAL USE ONLY 29 Copyright 2013 Fujitsu America, Inc.
Thank You—Con1nue the Conversa1on • Visit Fujitsu booth #1033 at the Salesforce.com Social Clienteling Tas1ng Sta1on • Schedule a free CRM Transforma1on Planning Workshop