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The Era of Omni-Channel Commerce, and the Marketing Evolution that Changes Everything


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The era of Omni-Channel Commerce is finally upon us. Learn more about this important evolution and what’s driving it. Equally important is the changing role of marketing – both as a driver of customer engagement and as agent of organizational change. Six areas will impact a company’s success in Omni-Channel, and marketers need to be at the center of them. Learn more about them, and about a few companies that are well on their way to success.

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The Era of Omni-Channel Commerce, and the Marketing Evolution that Changes Everything

  1. 1. The Era of Omni-ChannelCommerce… and, the Marketing Evolutionthat Changes Everything!By Donna M. IucolanoFounder & Principal ConsultantSpinach Candy, LLC
  2. 2. What’s Driving My Perspective• Digital retailing and interactive marketing professional since 1994.• Worked in high-profile, senior executive roles starting, leading andmanaging digital businesses in 3 industries – gifting, children’spublishing, and women’s apparel.• Co-founder of, the world’s largest trade association fore-commerce – now part of the National Retail Federation.• Today, manage a strategic digital business and marketing consulting,interim management and business development company.
  3. 3. Your Customers Live in anIncreasingly Omni-Channel andSocial World … Do You?
  4. 4. How Close Are You?Imagine if You Could …Deliver relevant content that influences customer behavior toyour customers and prospects based on what they are doing that moment where they are located And, their history with youThis real-time interaction is what marketers have beenwishing for forever.
  5. 5. Now .. We Can!And, need an evolved mindset to realize it.Omni-Channel is … Channel and device agnostic Truly customer-centric What today’s customer wants and expects To be achieved by an evolution in marketing, as well astechnology All about CONVERGENCE!
  6. 6. Omni-Channel is More Than Multi-ChannelOnce upon a time … not too long ago … it was enough for yourbrand to have a presence in multiple channels, both online andoff-line. Those days are over! A multi-channel strategyis about managing a seriesof separate touch pointsthrough various channels. An omni-channel strategyis about integrated touchpoints that together createan uninterrupted, immersiveexperience that is channel anddevice agnostic, and drivesengagement, purchase, andloyalty.
  7. 7. What Makes Omni-Channel Different?Connectivity, Consistency, Channel Neutrality Leverages the always Connected Consumer Requires an always Connected Enterprise Lets consumers experience the whole brand,not a channel or individual touch-points Requires consistency across all retailchannels Enables customers to start their experiencevia one channel / device, and continue orfinish via others Enables marketing to be more efficient(with offers relative to a specific consumer based onpurchase patterns, social network affinities, Web sitevisits, loyalty programs, and other data miningtechniques across bricks-and-mortar, Web sites,mobile, TV, catalog, etc.)
  8. 8. What Are We Converging?Everything … Everywhere Online and off-line Inbound and outbound Old media and new media Customers and technology Behavior and results Data and strategy Employees and divisionsObjectiveMore profitableand committedcustomerrelationships
  9. 9. Omni-Channel Drivers#1 – The Growth of E-Commerce –Worldwide and in the USA
  10. 10. Growth of E-Commerce in 2012$1 Trillion Worldwide and Growing! B2C e-commerce sales grew 21% to $1 trillionfor the first time 2013 sales are projected to grow 18.3% to$1.3 trillion worldwide, Asia-Pacific will surpass North America to becomethe worlds No. 1 market for B2C ecommerce sales. Sales in North America grew by almost 14% to a world-leading$365 billion in 2012 – a figure expected to increase 12% to $409 billionthis year. Despite strong growth, North America’s share of global sales will dropfrom 33.5% last year to 31.5% in 2013 as Asia-Pacific surges ahead.Source: eMarketer
  11. 11. Growth of E-Commerce in 2012, cont’d.Position of the USA Online shoppers in the US spent $226 billionin 2012 The U.S. will remain the single country withthe largest share of worldwide B2C e-commercespending, at almost 29% in 2013. The U.S. market is increasingly dependent on a strong holidayseason. Consumers spent $42.3 billion online in November andDecember, a 13.7% increase over $37.2 billion spent during theholiday shopping season in 2011 This will grow to $327 billion in 2016 – an increase of 45% over 2012.In 2016, e-retail will account for 9% of total retail sales. China is closing the gap fast. In 2016, China will have 22.6% of theworldwide market, vs. 26.5% in the US.
  12. 12. Omni-Channel Drivers#2 – The Growth of Mobile Commerce(as a Sub-Set of E-Commerce)
  13. 13. Growth of M-Commerce in 2012Mobile Commerce is Growing Rapidly; TabletAdoption is the Driver Beating Smartphones Customers are more connected than ever before. Smartphone and tablet penetration has grown dramatically. Mobile Commerce grew by 81% to almost $25 billion last year in theUS alone. Mobile devices accounted for 11% of total US retail e-commercesales in 2012, and future growth is expected to push mobile sales to a15% of all US retail e-commerce sales this year. Heavy usage during holidays when customers were looking for deals. This year, US consumers will spend $24 billion shopping on theirtablets, and that figure will nearly double by 2015.
  14. 14. Omni-Channel Drivers#3 – The Growth of Social Networking andthe Hyper-Connected Customer
  15. 15. Social Media ManiaMaturing, believe it or not. Social media and social networking are growing up fast. Almost 20 years old. Part of the fabric of people’s every day lives and a global phenomenon.Being driven by … More people using smartphones and tablets to access social media. Emergence of new social media networks that catch on.And, by simultaneous use while doing something else. While watching TV to comment about shows or to research products in ads. While shopping (in store or online) to look for deals, coupons, reviews. While on public transportation and in cars (regrettably). While crossing the busy streets in New York City and elsewhere. While in the bathroom (ugh!).
  16. 16. Social Empowerment = InfluenceFacebook is Driving Purchase Behavior Facebook has greatest impact on purchasebehavior. 47% of Americans using socialnetworks said that Facebook has the greatestimpact on purchase behavior (up from 24% in2011). 54% of Facebook members have used thesocial network via a phone, and 33% use aphone as their primary way to accessFacebook Facebook is the most addicting social network.23% of Facebook’s users check their account5 or more times DAILY.Source: Edison Research
  17. 17. Social Empowerment = Immediate GratificationA 24/7 Hyper-Connected Experience is Becomingthe New Normal Twitter was the fastest growing social network in 2012, but has littleimpact on purchase behavior – only 5%. Users that follow brands on social media is on the rise. From 2010 to2012 the percentage of Americans following any brand on a socialnetwork increased from 16% to 33%. The fastest growing segment in social media is 45-54 year-olds. 55%of Americans 45-54 now have a profile on a social networking site. 22% of Americans use social networking sites several times per day
  18. 18. Social Empowerment = Creative ExpressionPinterest Rising Pinterest was the darling of 2012 Most powerful, intuitive and appealing experience Had the largest year-over-year increase in audience and time spentof any social network , across PC, mobile web and apps Overwhelmingly female audience -- 70+%, between 25 and 54 Top Interests: fashion, entertainment, crafting, gardening, and home Spend most when follow thru on a purchase for item first seen onsocial media – more than 2x Facebook ($179 vs. $80 per order)It’s just for pinning now, but stay tuned … with their loyalty andconversion P-Commerce could be next!Source: Nielsen and Fast Company
  19. 19. 6 Areas That Will Impact YourSuccess in Omni-ChannelAnd, What Marketing Leader Can Do
  20. 20. 1. Marketing PhilosophyGetting beyond multi-channel to customer-centric Most companies believe their marketing is customer-centric The reality is they think in terms of ad hoc, channel specific marketing effortsand quick wins, low hanging fruit vs. holistic and long-term customer value.What Marketing Leaders Need to Do:Think Like Customers• What do they need(even when theydon’t know theyneed it)?Become Silo-Busters• Be Channel &Device Agnostic• Connect marketingelements togetherto keep drawingcustomers inDevelop a DeepUnderstandingof Interactions• Insights withoutPrejudice• Create consistencyand immersion
  21. 21. 2. Marketing StrategyLet customers (help) define your strategy Use insights, patterns and trends to find “gaps” of opportunity within thecustomer experience Design an omni-channel strategy that complements and enhances theexisting customer experience.What Marketing Leaders Need to Do:Research• Go beyond personasand demographics• Know interests;emotional, aesthetic,and functional needs• Know the competitionso you can beat themAssessment• What’s holding youback?• Think about assetsavailable, channels,team skills, partneropportunities, orgstructure, managementDefine Goals• Increase sales• Deepen customerengagements• Change perceptions• Re-organization• Cultural changes
  22. 22. 3. Customer ExperienceEvolve to Responsive Web Design Design approach aimed at creating sites and marketing efforts that provideoptimal viewing experience across devices (PCs, smartphones, tablets, etc.) Ensures easy reading and navigation with a minimum of resizing, panning,and scrolling — across a wide range of devicesWhat Marketing Leaders Need to Do:Be the CustomerAdvocate• See yourself as thecustomer does• Stop tinkering withexisting design efforts• Showcase bestexamplesEmbrace DesignThinking• Typography matters• Use larger images• Don’t be afraid of whitespace• Lose the Flash• Facilitate sharing• Content is still kingEmbrace Change• RWD is flexible andadaptable• Test and learn• Iterate frequently
  23. 23. 4. Path-to-PurchaseThe shopping funnel is dying! Customers are bouncing around, and in-and-out of different channels, acrossmultiple devices Customers are being influenced by people that are in and out of their socialnetworksWhat Marketing Leaders Need to Do:Stop TrackingIrrelevant Metrics• Like last clickattribution• Look at total spendand overall resultsCreate a New Visual• The funnel will evolveto a spider web of sorts• How many touchpoints are neededbefore your customertakes action?Understand theCustomer’s EntireJourney• Monitor key metricsand holisticperformance indicators
  24. 24. 5. Organizational ExecutionHighly integrated, aligned organizational execution isneeded for omni-channel success Invest time educating people, and secure buy-in from all parties , internal andexternal, before starting the transition to an omni-channel approach Internal “rewards” and “punishments” need to be re-evaluatedWhat Marketing Leaders Need to Do:Educate & Lead• Be a champion for thenew approach withinyour organization• Find others evangelists• Identify ownership• Highlight need forcoordination, flexibilityand interdependencePlanning• Evolution won’t happenover-night• Identify possibilities• Identify obstacles• Quantify risk of notmoving in this directionExecution• Keep “relevance” asthe guiding force• Fail fast and keeptrying new things tosucceed• Testing budget needed
  25. 25. 6. Data and AnalysisOn-going analysis of customer interactions … Builds on your initial customer research. Provides an evolving picture of customer behaviors and preferences. Covers typical metrics, and often, integrated reports using 3rd party dataWhat Marketing Leaders Need to Do:Know What YouWant to Track• Raw data is notenough• Beyond simple ROIAccurately CaptureData from All Sources• What is the necessarylevel of detail?• Holistic look atnumbers to see howdifferent data influenceeach otherReporting• Flexible, configurablereporting platform• Access to up-to-datereports that enablereal-time campaignupdates• Dedicate resource(s)who make analysis apriority
  26. 26. Companies On Their Way toOmni-Channel SuccessIn Your Own Neighborhood
  27. 27. Companies to WatchAmerican Eagle Outfitters• $3 billion retail apparel brand fortweens, teens and young adults• Omni-channel leader in a globalstudy by Kurt Salmon, the globalretail and consumer goodsconsultancy• Huge focus on mobile, and inengaging their young target• Re-building entire organizationfrom top to bottomWalmart• Multi-national retail discount chain• $440+ billion• Focus on mobile, same-daydelivery and competing withAmazon
  28. 28. Companies to WatchSephora• French brand and chain ofcosmetic retail stores• $900 million in revenue• Carry 100+ brands plus their ownprivate label• Early adopter of Responsive WebDesignWalgreens• Largest retail drugstore chain in theUSA• Aiming to be much more than ourlocal drugstore• Very large TV campaign toutingtheir efforts• $70+ billion in revenues
  29. 29. Final ThoughtsOmni-Channel success requires Omni-ChannelMarketing which is less like a campaign and morelike an on-going conversation O-CM represents a shift in “how” successful brands will approach today’sdynamic marketplace. O-CM is grounded in a foundation of strong brand and strong customerrelationships despite its dependency on new and emerging technologies O-CM has the power to create relevant, immersive and convergedexperiences that will increase customer acquisition, improve conversion,ensure retention … and build your brand!Don’t forget to discuss your Omni-Channel Evolution with marketingpartners, like Bronto – they can and will help you!