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Accenture Omni-Channel Retail Profit 2013
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Accenture Omni-Channel Retail Profit 2013 Accenture Omni-Channel Retail Profit 2013 Presentation Transcript

  • Profit Distribution in Omni-Channel Retail. Milan, 30 May 2013
  • Something about Accenture … Copyright © 2012 Accenture All rights reserved. 2
  • An end-to-end service unique offering Strategy Consulting Process Consulting Technology Consulting Process & System Implementation Infrastructure Operations Application Operations Business Process Operations Accenture As Business Innovation Partner Strategy Process Information Technology Management of Business Processes Change Management Strategy Consulting Management Consulting IT-Consulting Comprehensive Know-how through experts and projects across the e2e value chain Copyright © 2013 Accenture All rights reserved. High implementation complexity through IT and project management Know-How 3
  • Introducing Accenture Interactive the e-commerce CoE Accenture Interactive e-Commerce Centre of Excellence Milan Technology Labs Chicago, Illinois ACIN Chicago Oracle Retail (Lodz) Technology Labs San Josè, California SAP Retail (Bilbao) BI, ERP, Agri (Chicago, ISC) Operations (Madrid ISC) High Performance Business Showcase Murray Hill, New Jersey London, UK Delivery Center (Napoli) CRM, S&M, BI, Planning Supply Chain (Milan ISC) (Barcelona ISC) Technology Labs Beijing, China India Delivery Centers Consumer Goods Value Led (Hyderabad) ERP (Bangalore) Technology Labs Bangalore, India Philippine Delivery Center (Manila) Technology Labs Sophia Antipolis Accenture Customer Innovation Network ACIN Sao Paulo Accenture’s global network of CG&S Industry Solution Centers Global Delivery Network Accenture Tecnology Labs Copyright © 2013 Accenture All rights reserved. 4
  • Omnichannel is a new strategy to follow the digital-customer through a tangled customer-journey. Copyright © 2013 Accenture All rights reserved. 5
  • New customer is now always connected In stores On the go In touch with • Customer journey became dynamic, accessible and continuous. Now it is Non-Stop. social media Online networks • Customers are no longer enter a channel. Instead, they are continuously in the channel. • Thus customer’s focal point is not anymore purchase but evaluation and interaction. Copyright © 2013 Accenture All rights reserved. 6
  • Customer is exploring multi-channel experience Multichannel Customer Journey OFFLINE FOUNDATION Identification of Need SEARCH Natural Search, Paid Search, SEO SEM Search for Solution Standard Display Ads Evaluate Alternatives Product Details PURCHASE LOYALTY Visit to the store Compare Offers Visit to the brand website Copyright © 2013 Accenture All rights reserved. Broadband Video Web TV Affiliate Site Promotional Site Usability & Accessibility Sponsorships, Co-branding Philanthropic Cause Marketing Where to Buy Functionality Branded Storefront Sell Direct on Technical Third-Party Site Platform Mobile Aps QR Codes, GPS RFID POS Text Messaging Behavioral Targeting & Acquisition Cross-sell Engine Retention & WinBack Analytics, Web Site Optimisation PARTNERSHIPS Direct to Consumer Mobile App Social Interaction 19% Rich Media Ads Comparison Sites, Shopping Directories E-COMMERCE Online Registration Time Spent Branded Sites Content Syndication Online Purchase ADVOCACY Landing Page Optimisation WEB SITE Purchase Decision Offline Purchase Search Capability iMEDIA AWARENESS CONSIDERATION DIGITAL CAPABILITIES TO LEVERAGE ONLINE 81% MOBILE Mobile Browser CRM Loyalty Platform Campaigns, Email, Reporting SOCIAL Online Video Communities, Word-of-mouth, Wikis, blogs, Product Answer Forums Buzz, Referrals Crowd Sourcing Innovation 7
  • Driving traffic to store with digital and SO.LO.MO. • Digital customer is using the SOcial LOcal MObile interaction on daily base • In-store price comparison, rating&-review and gamification influence purchase decision and drive additional customer • There are new features to map the malls (even floors) to drive the customer to theirs preferred store. Copyright © 2013 Accenture All rights reserved. 8
  • Business-Case: Google Maps Indoor Copyright © 2013 Accenture All rights reserved. 9
  • Business-Case: Google Maps Indoor Copyright © 2013 Accenture All rights reserved. 10
  • Business-Case: Google Maps Indoor Copyright © 2013 Accenture All rights reserved. 11
  • Single shopping mission across channels ONLINE • The retailing experience is evolving from Multi-channel to Omni-channel • Distinct sales channels are giving way to a single, allencompassing business model • The customer experience could begin and end everywhere • Omni-channel approach builds seamless operations for a consistent experience Copyright © 2013 Accenture All rights reserved. 12
  • Business-Case: in-store comparison Copyright © 2013 Accenture All rights reserved. 13
  • Business-Case: Best Buy in-store comparison Copyright © 2013 Accenture All rights reserved. 14
  • Store format is evolving in shopping environment Customer places order online • Stores role is changing since the customer is being connected 24/7 Customer notified of order status • Various channels in store to purchase from handing a simple, written shopping list to sales assistants to shopping online within the store. Order is delivered to the store Customer collects order at store Copyright © 2013 Accenture All rights reserved. • Enhancing the experience from self-service to assisted service • Reinforcing brand’s appeal exposing brand relevant added content 15
  • Business-Case: Argos full channel activation Copyright © 2013 Accenture All rights reserved. 16
  • Business-Case: House of Fraser omni-fashion Copyright © 2013 Accenture All rights reserved. 17
  • Store format is evolving in shopping environment Customer Collects the order in store • Empower store associates Shop assistant interact with Tablet • Real-time order fulfillment and flexible returns • There is an increased collaboration with operations across channels Customer track the order with Smartphone • Rethink store processes, reconsider talent and manage labor differently. Customer receive order at home Copyright © 2013 Accenture All rights reserved. 18
  • Business-Case: Nike-Fuel purchasing everywhere Copyright © 2013 Accenture All rights reserved. 19
  • Business-Case: Nike-Fuel purchasing everywhere Copyright © 2013 Accenture All rights reserved. 20
  • The evolution of the elastic supply chain • Make visibility and dynamic fulfillment mandatory • Emphasize returns management providing non-stop customer’s path to return is just as fluid as the path to purchase • The management of inventory should be done forward, backward and sideways, in order to have the best flexibility in the supply chain Copyright © 2013 Accenture All rights reserved. 21
  • Business-Case: Celio* showrooming Copyright © 2013 Accenture All rights reserved. 22
  • Enhancement of customer experience on 360° Customer experience teams could be located within marketing and influence merchants from there Customer experience team could be fully embedded in merchandising with an equal voice at the table • Infuse Merchandising with customer advocacy • Customer insight group embedded with Merchandising to incorporate insights at the point and place of decision – eliminate “insight islands” • Trade product centricity offering the right price, assortment, promotion, AND customer experience Separate customer experience function with individual team members matrixed into each merchant buying Team Copyright © 2013 Accenture All rights reserved. 23
  • Business-Case: Nasty Gal a merchandise-experience Copyright © 2013 Accenture All rights reserved. 24
  • Business-Case: Nasty Gal a merchandise-experience Copyright © 2013 Accenture All rights reserved. 25
  • Business-Case: Stories.com e-commerce curation Copyright © 2013 Accenture All rights reserved. 26
  • Business-Case: In-store Augmented Reality fashion Copyright © 2013 Accenture All rights reserved. 27
  • Business-Case: In-store Augmented Reality retail Copyright © 2013 Accenture All rights reserved. 28
  • Business-Case: Google Glasses Copyright © 2013 Accenture All rights reserved. 29
  • Retailers must change the game to remain relevant. They must become seamless themselves. Copyright © 2013 Accenture All rights reserved. 30
  • Omnichannel add a level of Copyright © 2012 Accenture All rights reserved. 31
  • Business strategy transformation in Omnichannel scenario Copyright © 2013 Accenture All rights reserved. 32
  • Business strategy transformation in Omnichannel scenario How to sell more and more to our customers? Which processes do we have to implement to increase our customer spending? How we can verify the success of our online sales strategy? Copyright © 2013 Accenture All rights reserved. 33
  • Business strategy transformation in Omnichannel scenario Target Actions KPI Copyright © 2013 Accenture All rights reserved. 34
  • Business strategy transformation in Omnichannel scenario Visits volume • Acquisition • Re-activation • Viralization Click-through rate? Copyright © 2013 Accenture All rights reserved. Target Actions KPI 35
  • The solution to E-commerce’s main issues Visits volume • Acquisition • Re-activation • Viralization Click-through rate? Copyright © 2013 Accenture All rights reserved. Conversion Target • Offering • Promotions • Delivery • Customer-care Actions Conversion rate? KPI 36
  • The solution to E-commerce’s main issues Visits volume • Acquisition • Re-activation • Viralization Click-through rate? Copyright © 2013 Accenture All rights reserved. Conversion Profitability • Offering • Promotions • Delivery • Customer-care • Product mix • Category mix • threshold Actions Conversion rate? Ticket composition? 37
  • The solution to E-commerce’s main issues Visits volume • Acquisition • Re-activation • Viralization Click-through rate? Copyright © 2013 Accenture All rights reserved. Conversion Channeling Profitability • Offering • Promotions • Delivery • Customer-care • Info-commerce • R&C / P&P • In-store-comp. • SO.LO.MO • Product mix • Category mix • threshold Conversion rate? R.O.P.O. rates? Actions Ticket composition? 38
  • Omnichannel needs a new approach that transforms the organization from silos of technologies and process to a harmonic ecosystem. Copyright © 2013 Accenture All rights reserved. 39
  • Integrating operations for a customer conversation Business Foundation Stores Digital Customer Center Services Merchandising Marketing Supply Chain …eliminate channel boundaries Technology Foundation Channel Operations • Assortment and Pricing are integrated across channels • Marketing presents a cohesive “brand” for the new non-stop customer experience • Ensure visibility and dynamic fulfillment where inventory is managed at enterprise level The Enterprise Copyright © 2013 Accenture All rights reserved. 40
  • Omnichannel redefine functions role and platforms Headquarter Each channel is driving the technology and the process definition. Marketing Planishment Warehouse Store Till Collect in store E-Commerce Planning Marketing E-Commerce PSP Home delivery Copyright © 2013 Accenture All rights reserved. Warehouse Customer Warehouse Store Planning 41
  • Omnichannel redefine functions role and platforms Mobile Drop shipment Store Till Collect in store Shared stock E-Commerce PSP Home delivery Warehouses E-Commerce Store Marketing Planishment Shared stock Planning Copyright © 2013 Accenture All rights reserved. Customer Omnichannel Headquarter Each channel is driving the technology and the process definition. Omnichannel means integration of objectives, methods and platforms. 42
  • The commercial strategy for an Omnichannel journey Cross Channel Commercial Model «Body» «Long Tail» • To reach the business objectvies we need to balance: • The top selling product that drive volumes Sales volume • Niche products that preserve margins • To grant the success of an eCommerce project we need to design a cross-channel strategy to grant: Top seller Niche product with higer margin Product variety Copyright © 2013 Accenture All rights reserved. • Turnover • Profitability 43
  • The commercial strategy for an Omnichannel journey Sources Cross Channel Commercial Model Historical Data Offline Benchmark 1 Online Benchmark Online Search Trend 2 3 • To reach the business objectvies we need to balance: Market Research Price Optimisation Promo Optimisation Profitability Analysis Price management Rules Base Price and Margins Revision of the Sets Flexibility Analysis Simulation Promotional ROI Definition of the Promotional Tactic Promotional Strength Assortment Optimisation Capabilities Assortment Definition 4 Sales Forecasting Baseline Normalisation Forecast of the Volumes of the Sales Copyright © 2013 Accenture All rights reserved. Promotional Uplift Calculation • The top selling product that drive volumes • Niche products that preserve margins • To grant the success of an eCommerce project we need to design a cross-channel strategy to grant: • Turnover • Profitability 44
  • Digital acquisition strategy • We can influence the visitor volume using different acquisition channels and performance strategies. • The conversion rate is influenced by a mix of commercial and UX elements. • The average ticket is influenced by assortment strategies. • Customer reactivation is strategic Copyright © 2013 Accenture All rights reserved. 45
  • Digital acquisition strategy in an omnichannel environment Traffic Customer Thrust Awareness Organic Lead Information • We can influence the visitor volume using different acquisition channels and performance strategies. Reactivation Acquisition Click Through Commercial Levers User Experience Channeling Phisical (store) Digital / Mobile • The conversion rate is influenced by a mix of commercial and UX elements. • The average ticket is influenced by assortment strategies. Conversion Transactions • Customer reactivation is strategic Turnover Copyright © 2013 Accenture All rights reserved. 46
  • Channels A new measurable omnichannel ecosystem Price Pure Player price Couponing Store Service (eg: installation) R&C Product Deatil (newest & best) Mobile Copyright © 2013 Accenture All rights reserved. Unsold stock Category Z Category Y On-line Category X Quality & Service • The omnichannel approach, enabled by technological platforms, set with crossfunctional process, permit to create more efficient commercial strategy. Assortment • The Omnichannel ecosystem will measure the relation between actions (operative cost) and the redemption (returns) singling-out the duly profitability. 47
  • ILLUSTRATIVE A new measurable omnichannel ecosystem Channels Couponing to drive in stores Price Pure Player price Couponing Store Service (eg: installation) R&C Product Deatil (newest & best) Mobile Copyright © 2013 Accenture All rights reserved. Unsold stock Category Z Category Y On-line Category X Quality & Service • The omnichannel approach, enabled by technological platforms, set with crossfunctional process, permit to create more efficient commercial strategy. Assortment • The Omnichannel ecosystem will measure the relation between actions (operative cost) and the redemption (returns) singling-out the duly profitability. 48
  • ILLUSTRATIVE A new measurable omnichannel ecosystem Channels Outlet on-line Price Pure Player price Couponing Store Service (eg: installation) R&C Product Deatil (newest & best) Mobile Copyright © 2013 Accenture All rights reserved. Unsold stock Category Z Category Y On-line Category X Quality & Service • The omnichannel approach, enabled by technological platforms, set with crossfunctional process, permit to create more efficient commercial strategy. Assortment • The Omnichannel ecosystem will measure the relation between actions (operative cost) and the redemption (returns) singling-out the duly profitability. 49
  • ILLUSTRATIVE Leverage on commercial communication synergy • In an Omnichannel environment retailer could use a different approach to improve the declining performance of the traditional strategies. • Digital marketing mix will influence all the target: customer traffic, conversion, and profitability driving customer through the different channels in a measurable way. 2 weeks Flyer 2 weeks Flyer   2 weeks Flyer  Communication effectiveness through flyer Communicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS) Copyright © 2013 Accenture All rights reserved. 50
  • ILLUSTRATIVE Leverage on commercial communication synergy • In an Omnichannel environment retailer could use a different approach to improve the declining performance of the traditional strategies. • Digital marketing mix will influence all the target: customer traffic, conversion, and profitability driving customer through the different channels in a measurable way. 2 weeks Flyer PUSH ACTIVITIES Mobile Digital  2 weeks Flyer  PUSH ACTIVITIES Mobile Digital 2 weeks Flyer PUSH ACTIVITIES Mobile Digital  Communication effectiveness through flyer Communicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS) Copyright © 2013 Accenture All rights reserved. 51
  • So what I need to do to become a real seamless omnichannel leading company? Copyright © 2013 Accenture All rights reserved. 52
  • The next five action to became seamless 1. Omnichannel is not rocket science 2. Acknowledge the burning platform 3. Define customer experiences strategy 4. Identify digital and physical relations 5. Create a new measurable ecosystem Copyright © 2013 Accenture All rights reserved. 53
  • Thank you ! Federico Gasparotto Digital Marketing Offering Lead Accenture Interactive Tel: @: Blog: IM: +39-331-7550490 federico.gasparotto@accenute.com www.gasparotto.biz federico.gasparotto Copyright © 2013 Accenture All rights reserved. 54