Your SlideShare is downloading. ×
Agility - Driving Multichannel Success
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Agility - Driving Multichannel Success

1,157
views

Published on

Jason Simpson …

Jason Simpson
From Multi-channel
to Omni-channel commerce

Published in: Technology

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,157
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
57
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Jason Simpson
    From Multi-channel
    to Omni-channel commerce
  • 2. Agenda
    • What’s happening in Multi-channel commerce? (in Europe & the US)
    • 3. Technological advancement & changing consumer expectations
    • 4. Omni-channel behaviour is shaping Multi-channel commerce
    • 5. How channels interact: the role of print
    • 6. Reaction to the shifting environment
    • 7. Brand integrity = Multi-channel strategy
    • 8. What to be ready for; how to be ready
  • The world of Multi-channel commerce…
    • Technology is enabling new channels to market
    • 9. Traditional model = physical stores with print driving footfall and/or mail order business
    • 10. Today = new channels emerging every year
    • 11. Proliferation of media
    • 12. Marketing reach becoming harder
    • 13. Consumers demanding purchasing flexibility and convenience
  • Developments in e-commerce…
    • Now 1.6 billion internet users worldwide
    • 14. UK e-commerce sales totalled £30bnin 2010
    • 15. Accounts for7% of all retail sales
    • 16. Sales predicted to grow to reach £50bn by 2015
    Source: Forrester
    The ‘new now’:
    • Price comparison sites
    • 17. Digital catalogues
    • 18. iPhone/Android apps
    • 19. iPad & other tablets
    • 20. In-store kiosks
    • 21. Social media
    South Africa = 5.3m
  • 22. Developments in mobile commerce…
    • UK mobile internet salesforecast todouble in the next 3 years to £275m
    • 23. Accounts for 4% of online retail spending
    • 24. Just 2.1% of UK‘s adult population currently shop via a smartphone, but nearly 80% of owners have used it to buy something!
    • 25. But smartphone ownership is growing by c100% annually, driven by iPhone, Android and other comparable products
    (source: Verdict & Ovum Research)
  • 26. Developments in mobile commerce…
    • 10% of European shoppers are using their mobiles for product searches, price comparison or purchasing
    • 27. 20% plan to do so, according to a study of 1,500 people in the UK, France, Germany, Italy and Spain
    • 28. The study also found that shoppers who used mobile in some part of the research and purchase process spent 15% to 30% more than those who used just one channel
    (source: IDC/Akamai)
    80% of all web-page views in Japan are via mobile devices!
    UK predicted to mirror this by 2014
    Highly likely that developing nations will leapfrog to this stage
  • 29. Developments in mobile commerce…
    Example
  • 30. Technology convergence
    • The ‘mash-up’
    • 31. Integrating offline and online media
    • 32. Quick Response (QR) Barcodes
    • 33. Augmented Reality
    • 34. RFID & NFC (Near Field Communication)
    • 35. Mobile Apps
  • The Omni-channel consumer
    “The omni-channel shopper wants to use all channels – stores, catalogues, call centre, eCommerce and mobile – simultaneously, not each channel in parallel”
    Hand and Parker (IDC)
    Examples:
    • Price comparison websites, accessed from mobiles whilst in-store
    • 36. Reserve/pay online, collect in-store
  • The Omni-channel consumer…‘InfoLust’
    ‘Consumers are lusting after detailed information on where to get the best of the best, the cheapest of the cheapest, the first of the first, the healthiest of the healthiest, the coolest of the coolest, or on how to become the smartest of the smartest. Instant information gratification is upon us’
    (www.trendwatching.com)
  • 37. Omni-channel consumers are shaping
    Multi-channel commerce…
    McKinsey research 2009
    Clothing retail example
    USD$ average customer spend per year
    3 channels =
    4.4 x higher than print alone
    4.5 x higher than stores alone
    5.6 x higher than web alone
  • 38. How does print fit into the Multi-channel mix?
    What we thought we knew:
    • Shopping is heavily influenced by printed matter
    • 39. The “shop in the home” works
    • 40. Multi-channel is here & increasing revenue
    • 41. The print catalogue is part of life in UK & US
  • Who are Verdict Consulting?
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 42. today's consumer
    where we’re headed
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 43. 1980sCarefreeconsumption
    1990sCarelessconsumption
    Late 2000sCarefulconsumption
    2010sConsideredconsumption
    Today’s consumer: the mindset shift
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 44. Today’s consumer: considered consumption
    Quantity
    I buy lots of things: some I need, some I don’t…
    Quality
    I buy things I that I really want…
    Product
    It’s mainly about the product…
    Holistic
    It’s about the product and the background to the product…
    Price
    I want everyday low prices…
    Value
    I don’t mind paying for good things…
    Impulse
    I buy things without thinking about them…
    Thoughtful
    I buy things I like, but I think about what I am buying…
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 45. B2C Research
    For this research a catalogue is defined as:
    • A traditional mail order catalogue
    • 46. A more modern catalogue or brochure
    • 47. Lifestyle magazines from retailers in which the primary aim is promotion or selling (magalogue)
    • 48. Retail inserts & circulars
    • 49. Leaflets & postcards not included
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 50. 1999
    £9,503m
    2009
    £4,393m
    The traditional view – a changing landscape
    Size of traditional mail order catalogue market
    ?
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 51. The modern scenario
    Lost in a sea of cross-channel confusion
    Telephone
    Online
    Stores
    Cats, Mags, Inserts
    Affiliates
    Kiosks
    C2C
    Social networking
    Mobile
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 52. Perceptions have changed
    The stigma’s
    gone – they’re totally different now
    They’ve changed, they’re a really nice read
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 53.









    The influence of the catalogue today
    20.8%
    regularly use a catalogue to directly buy products
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 54. The purchase decision process
    Think
    Research
    Buy
    Return
    Physical
    92.9%
    84.2%
    74.5%
    83.5%
    63.7%
    Online
    70.7%
    69.1%
    69.0%
    66.3%
    40.4%
    Catalogue
    53.9%
    53.8%
    86.1%
    37.4%
    53.8%
    21.8%
    9.5%
    News/mags
    32.2%
    12.8%
    5.7%
    31.0%
    31.0%
    0.7%
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 55. Omni-channel consumers are shaping
    Multi-channel commerce…
    McKinsey research 2009
    Clothing retail example
    USD$ average customer spend per year
    3 channels =
    4.4 x higher than print alone
    4.5 x higher than stores alone
    5.6 x higher than web alone
  • 56.









    The influence of the catalogue today
    53.9%
    regularly use a catalogue in the purchase process
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 57. The underlying reasons for usage
    It’s nice to sit and relax – to sit on a sofa and flick through
    36.4%
    35.9%
    30.4%
    29.6%
    I can see how the clothes will look on my children
    21.7%
    They’re good at product placement
    Seeking
    inspiration
    Gathering
    ideas
    Browsing for
    fun
    Checking
    product details
    Comparing
    prices
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 58. The Multi-channel consumer
    Catalogue to online
    £215
    Online
    £369
    • 58% of online sales are driven by the catalogue
    Catalogues
    £81
    Online to store
    £257
    Stores
    £2,079
    • 85% of catalogue sales are checked out online or in store
    Catalogue to store
    £240
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 59. The monetary value: sectors
    Percentage of spend in each sector influenced by catalogues
    74.7%
    £31.0bn
    73.2%
    £15.9bn
    69.4%
    £8.6bn
    67.4%
    £8.5bn
    63.5%
    £6.8bn
    53.9% baseline
    54.8%
    £9.5bn
    45.2%
    £4.5bn
    43.0%
    £1.4bn
    14.6%
    £18.1bn
    Clothing
    Electricals
    DIY
    Furniture
    Homewares
    Beauty
    Books
    Music/film
    Food
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 60. Where is print used and viewed?
    Catalogue browsing
    The charts below shows the percentage of people who browse catalogues in the various situations and locations.
    At home
    89.4%
    At work 8.9%
    While
    traveling
    9.1%
    In store
    24.8%
    On holiday 3.0%
    While
    waiting
    14.4%
    At a
    friend's
    home
    14.1%
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 61. Catalogue dynamics – shop in the home
    +
    Average time spent browsing catalogues:
    8 hours per month
    Average household receives
    2 catalogues each month
    5% of households receive more than 5 catalogues each month
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 62. B2C research summary
    Traditional views of the catalogue do not hold true
    Catalogues are critical influencers, at the critical points
    We live in an omnichannel world
    Driving spend, through channels of choice
    Private & Confidential, Copyright Pindar & Verdict Consulting 2010
  • 63. Further evidence
    Why the catalogue is so important…
    Of those, 80% found their purchase in a catalogue and then went online to order.
    70% of those surveyed shopped from home last year.
    Experian, 2009
  • 64. Further evidence
    • Digital ‘page-turning’ catalogue deliver enhanced sales
    B2C example launched last February:
    • 3 x higher shopping basket values compared with website-only shoppers
    B2B example launched last February:
    • 2 x higher shopping basket values compared with website-only shoppers
  • How are retailers responding?
    • Retailers are embracing new channels in order to maintain mindshare
    • 65. Focus in IT has been on logistics and ERP/CRM – single customer view
    But:
    Consumers do not see channels, they see brands. Therefore, brand and service level consistency across all channels is important for maintaining customer loyalty.
    Sharing product and customer data across channels is vital to achieving a consistent customer services and brand message.
    A single, central repository is required to provide a single view of the data. But many retailers are still not managing important processes at a multichannel level. (DataMonitor, Sep 2009)
  • 66. The challenges associated with Multi-channel marketing
  • 67. TheMulti-channel challenge
    • Getting the rightinformation about the rightproduct to the rightcustomer through theirchannel(s) of choice
    • 68. Ensuring consistency of product data & pricing
    • 69. Duplicationof effort across channels
    • 70. Speed to market slow due to complexity
    • 71. Logistical/back-end issues such as:
    • 72. Returns (buy online, return to store)
    • 73. Stock availability across channels
    • 74. Single customer view (channel agnostic)
  • Web
    Web
    database
    hand-
    written
    note
    <XML>
    suppliers
    Release
    Release
    Rlease
    Release
    Release
    ERP/main
    MFG
    Author
    Approve
    Release
    Analysis
    Clean
    Input
  • 75. Web
    Web
    database
    hand-
    written
    note
    <XML>
    suppliers
    Release
    Release
    Release
    Release
    ERP/main
    MFG
    Author
    Approve
    Release
    Analysis
    Clean
    Input
  • 76. Web
    Web
    database
    hand-
    written
    note
    <XML>
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    ERP/main
    Release
    Release
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    hand-
    written
    note
    Author
    Approve
    Approve
    Author
    Release
    Analysis
    Release
    Analysis
    Clean
    Input
    Input
    Clean
  • 77. Web
    Web
    database
    hand-
    written
    note
    <XML>
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    ERP/main
    Release
    Release
    Flyers/circulars
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    Create
    hand-
    written
    note
    Author
    Approve
    Approve
    Author
    Approve
    Author
    Release
    Analysis
    Release
    Release
    Analysis
    Analysis
    Clean
    Input
    Input
    Clean
    Clean
  • 78. Web
    Web
    database
    hand-
    written
    note
    <XML>
    Tablets/phone
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    ERP/main
    Release
    Release
    Flyers/circulars
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    Create
    hand-
    written
    note
    Enrich
    Approve
    Author
    Approve
    Approve
    Author
    Approve
    Author
    Integrate
    Release
    Analysis
    Release
    Release
    Release
    Analysis
    Analysis
    Clean
    Input
    Input
    Clean
    Clean
    Manually
    embed
    references
  • 79. Web
    Web
    database
    hand-
    written
    note
    Create
    Create
    <XML>
    Approve
    Tablets/phone
    Author
    Author
    Analysis
    Release
    Release
    Release
    Input
    Input
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Packaging/POS
    ERP/main
    Release
    Release
    Flyers/circulars
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    Create
    hand-
    written
    note
    Author
    Approve
    Approve
    Author
    Approve
    Author
    Enrich
    Integrate
    Approve
    Release
    Release
    Release
    Release
    Analysis
    Analysis
    Clean
    Input
    Input
    Clean
    Clean
    Manually
    embed
    references
  • 80. Web
    Approve
    Approve
    Web
    database
    Email
    hand-
    written
    note
    Create
    Create
    <XML>
    Approve
    Tablets/phone
    Author
    Author
    Analysis
    Release
    Release
    Release
    Input
    Input
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Packaging/POS
    ERP/main
    Release
    Release
    Flyers/circulars
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    Create
    hand-
    written
    note
    Author
    Approve
    Approve
    Author
    Approve
    Author
    Enrich
    Integrate
    Approve
    Release
    Release
    Release
    Release
    Release
    Analysis
    Analysis
    Author
    Clean
    Input
    Input
    Clean
    Clean
    Manually
    embed
    references
  • 81. Web
    Approve
    Approve
    Web
    database
    Email
    hand-
    written
    note
    Create
    Create
    <XML>
    Approve
    Tablets/phone
    Author
    Author
    Analysis
    Release
    Release
    Release
    Input
    Input
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Packaging/POS
    Rest of company
    ERP/main
    Release
    Release
    Flyers/circulars
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    Create
    hand-
    written
    note
    Author
    Approve
    Approve
    Author
    Approve
    Author
    Enrich
    Integrate
    Approve
    Release
    Release
    Release
    Release
    Release
    Analysis
    Analysis
    Author
    Clean
    Input
    Input
    Clean
    Clean
    Manually
    embed
    references
    Product Information Anarchy
  • 82. Web
    Approve
    Approve
    Inefficient process due to:
    • Searching and gathering of images/data
    • 83. Brand consistency checking
    • 84. Repetitive operational tasks
    • 85. Complex process and duplication
    • 86. Copy proofing multiple times
    • 87. Reformatting refreshed text
    • 88. Inefficient language localisation process
    • 89. Constant verifying
    • 90. Re-checking legal information
    • 91. Manual pricing and re-checking
    • 92. Cumbersome approval process
    • 93. Unproductive communication
    • 94. Time sensitive re-work
    Etc, etc….
    Web
    database
    Email
    hand-
    written
    note
    Create
    Create
    <XML>
    Approve
    Tablets/phone
    Author
    Author
    Analysis
    Release
    Release
    Release
    Input
    Input
    suppliers
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Release
    Packaging/POS
    Rest of company
    ERP/main
    Release
    Release
    Flyers/circulars
    Release
    Release
    MFG
    <XML>
    Catalog
    Create
    Create
    hand-
    written
    note
    Author
    Approve
    Approve
    Author
    Approve
    Author
    Enrich
    Integrate
    Approve
    Release
    Release
    Release
    Release
    Release
    Analysis
    Analysis
    Author
    Clean
    Input
    Input
    Clean
    Clean
    Manually
    embed
    references
  • 95. Web
    Email
    Tablets/phone
    Release
    suppliers
    Packaging/POS
    PIM
    Solution
    Rest of company
    ERP/main
    Flyers/circulars
    Catalog
  • 96. The benefits of Agility multichannel publishing
    • Create consistent product promotions for web, print and in-store marketing
    • 97. Publish content to websites within hours of product creation and convert your business to ‘web first’ publishing
    • 98. Reduce production times for printed promotions by up to 75%
    • 99. Free up designers time to use their creative minds and design more pages
    • 100. Reduce the number of errors and review cycles by up to 90%
    • 101. Do more marketing, with the same resources (or less)
    • 102. Turn your product information into a strategic asset:
    > Be ready to exploit emerging channels
    > Speed to market = competitive advantage
  • 103. The challenge is recognised
  • 104. PIM is a crucial foundation
    Retail Systems Research May 2010
    Retailers asked to comment on which business initiatives hadthegreatest positive impact in improving customer satisfaction across all channels
    Ensuring product information and pricing is up to date and consistent across channels
    Enabling cross-channel fulfillment
    Cross selling and personalized promotions
    Synchronizing customer and inventory information across channels
    Same day shipping & simple, consistent returns
    Information sharing with merchandise vendors on product features and availability
    Enabling real time views of cross-channel inventory
  • 105. The purchase decision process
    =
    =
  • 106. Driving multichannel success…
    +
    =
    (Multichannel
    Success)

×