Why & How Brands Must Go Omnichannel

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How companies can answer to a new uncontrolled omnichannel customer path? How brick and mortar and online business can merge to offer a tailored solution to omnichannel customer path?

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Why & How Brands Must Go Omnichannel

  1. 1. 2 WHY & HOW BRANDS MUST GO OMNICHANNEL Muriel Hug , Floriana Nicastro, Robin Cartier , Adrien Pichard February 7, 2014
  2. 2. 0 TABLE OF CONTENT INTRODUCTION..................................................................................................................................1 I. NEW USES AND THE EMERGENCE OF CONNECTED CUSTOMERS..................................................3 1. MOBILITY ................................................................................................................................3 2. CONNECTED CUSTOMER = WISER CUSTOMER.............................................................................. 4 3. EMERGENCE OF A NEW SOCIAL PURCHASING FUNNEL ....................................................................5 4. M-COMMERCE......................................................................................................................... 6 5. SHOWROOMING .......................................................................................................................7 6. ROPO: RESEARCH ONLINE PURCHASE OFFLINE.......................................................................... 8 II. BRICK AND MORTAR FACING TURMOIL ....................................................................................... 9 1. E COMMERCE QUESTIONING THE MODEL....................................................................................11 2. MOBILITY CHALLENGING..........................................................................................................11 3. INTEGRATE TECHNOLOGIES AND INFORMATION SYSTEMS ............................................................12 III. OMNI CHANNEL DEPLOYMENT OPPORTUNITIES .......................................................................14 1. CONNECTED CUSTOMER..........................................................................................................14 2. A CROSS CHANNEL CUSTOMER .................................................................................................15 3. NON ADAPTED REACTION FROM THE COMPANY ..........................................................................16 4. OMNICHANNEL STAKES ...........................................................................................................17 5. OMNICHANNEL DEPLOYMENT..................................................................................................18 6. OMNICHANNEL SOLUTIONS .....................................................................................................19 IV. OMNI CHANNEL SOLUTION BENCHMARK ..................................................................................22 1. BEST BUY ............................................................................................................................. 22 2. JOHN LEWIS...........................................................................................................................23 3. BURBERRY .............................................................................................................................25 4. NORDSTROM.........................................................................................................................27 5. SEPHORA.............................................................................................................................. 28 6. WALMART ............................................................................................................................ 29 7. MACY S.................................................................................................................................30
  3. 3. 1 the development of the computers automation and process fastness which were made possible thanks to the 3rd industrial revolution: the IT Revolution. doing business, consuming information and interacting; it definitely modified their relationship to shopping. The E-commerce was a revolution first for the brands, by going straightway to their customer; secondly, for the consumers by having the widest choice of product ever. As the equipment rate increases, customers can compare in-store with e-store products and prices on any device. Even when they are shopping in store, they can compare on- line the product in front of them with an infinite range of products priced and designed differently. So Loyalty is more and more fluctuating. The fidelity is no more guaranteed, because of the multiplicity of the offers, combined with the easiness of consumers to s changes shops are facing free and opportunistic clients, who compare offers, lookout the latest specials and promotions at anytime, anywhere and on any device. In fac mobility mix with the gloomy economic situation generates a great volatility of the customers that makes them harder to catch. To thwart those trends, retails stores, shops and wholesaler get the opportunity to implement their strategies on both side of the line by refocusing their strategies on their customers. In fact, at the early, many of those physical stores used to take the opportunity to create their own merchant websites, to sell products on an online platform: multichannel strategy. Without creating a synergy between both sale mediums, customer experience was neglected in favor of a business centric vision. Moreover, the economical context and the long technological appropriation process by the greatest number make managers threatening digital changes and disturb their long/mid-term visions. Even before engaging pilot phases the manager would like to measure the potential ROI of the solutions. But early movers are big names of retailing, and they have reshaped their strategies. They improved their clients experiences and their knowledge through different strategies, Readapting their sales techniques thanks to complementarity of physical and digital channels, they improved the knowledge of their customers; Reinventing the model from mass market to mass customization; the multichannel is a past model.
  4. 4. 2 Since the arrival of Internet in-house, the trend of shopping online has massively increased. This new medium of doing business is the main reason of classic commerce destabilization; in fact 48% of the web users actually buy clothes on e-commerce websites. in France that business represented about 45 billons euros in 20121, user determine the wide range of product as one of the most important fact that make use this channel. 1 EUROGROUP. En route vers le commerce 3.0. | Commerce traditionnel : des lignes qui bougent de façon irréversible | La mobilité, deuxième facteur de déstabilisation P.12 69% of customers are researching online and then purchasing offline 32% of customers are researching in store and then buying online +19% about the European Digital Market growth in 2011 +82% for the average basket of the connected customers y 42% of m-users declared having used a mobile terminal at one stage of their purchasing decision 40% of American consumers do feel lonely and consider that human contact to a salesperson as 30% of the market share will be detained by the e- commerce sector by 2015 By 2018, it is estimated that the total number of stores will fall by 22% in the UK
  5. 5. 3 New Uses and the emergence of connected customers 1. Mobility new medium based on interactivity it completely revolutionized the way consumers and brands interact together. This trend has led the evolution of networks to provide always on high speed connections. Key figures: - Now 73% of the total French population (aged 12 or older) is equipped with 3G enabled devices.2 (CREDOC, 2013) - Next generation 4G networks, allowing ultra-fast access to the Internet are deployed all over the national territory, the objective is to reach 98% coverage of the whole territory within 10 years3. (Arcep, 2014) When launched, this technology will facilitate data intensive uses and contribute raising technical barriers. It is now difficult to imagine that in 2000, e-commerce was still at its very beginning in France. Almost 15 years later, who would argue that e-commerce was just a fad? There are now more than 48 M Internet users in France, according to COMSCORE (2013)4. Information is now instantly accessible according to the ATAWAD principle: Anytime / Anywhere / Any device. Smartphones and tablets are now deeply integrated into our daily routines, the following graph from ComScore shows of how french users combine their different devices all along the day. 2 smartphone, clé 3g/3g+ ou carte data). Source CREDOC (2013). 3 ARCEP. (2014). 4G - le très haut débit mobile. Available: http://www.arcep.fr/index.php?id=8649#c64196 Last accessed 04 Feb 2014. 4 Comscore (2013) France Digital Future in focus. Available: http://fr.slideshare.net/SolocalGroup/com- score-2013francedigitalfutureinfocus
  6. 6. 4 In a recent article from FEVAD (2012) 45% Internet users admitted using Internet in a context of mobility. Consequences of always on Internet access: clients feel generally empowered by their devices. 2. Connected customer = Wiser customer As a direct implication to the fact that clients get instant access to all the informations they need, they tend to be more knowledgeable about the product they are buying. 1/3 of mobile shoppers say they use their phone in-store to avoid having to ask salespersons information. Google, (2013) ecific product. They tend to consider salespersons as slower than a search engine, less comprehensive than a product
  7. 7. 5 FEVAD (2012) | 2020: La fin du e- rce connecté ? Figure 1 Google (2013) Mobile in-store research: How in-store shoppers are using mobile devices5 Thanks to Internet, consumers have found a forum to exchange ideas and voice their opinions. Customer ratings have become common practice and are consulted by 90% of shoppers (FEVAD, 2010). corporate website) are considered as less valuable than individual feedback on a specific product, which in turn is appreciated for its objectivity and honesty. In the same study, 91% of people considered product evaluation as the number one deciding factor for their final purchase decision. 3. Emergence of a new social purchasing funnel To trigger a purchase, all marketers know that they have to reach the consumer at some specific moments, where the customer might be most likely to be influenced. These moments have long been mapped to a linear funnel image: notoriety/ interest / desire / conversion. Today this classic vision fails at addressing the connected customer, and understanding rise of connected customers has seen the multiplication of contact points and devices throughout the client decision journey. As customers get easy access to more information, the decision-making process includes more variables: trust, perceived competitive advantage of your solution over your 5 Google. (2013). Mobile in-store research: How in-store shoppers are using mobile devices. Available: http://ssl.gstatic.com/think/docs/mobile-in-store_research-studies.pdf. Last accessed 05 Feb 2014.
  8. 8. 6 Figure 2 :Source: Brian Solis (2012): Meet Generation C: The Connected Customer6 Here is an illustration of such new decision-making process: Client X discovers a new product on the Facebook wall of one of his friends, which says he likes it. X then goes to Google to find more information, he then reaches a blog that leads him to an e-commerce website. He looks for additional information on a price comparator, a forum, then X then discusses about this brand with friends. X is later on addressed by retargeting banners displaying the articles he spent more time on. X finally decides to visit the closest store he was proposed when using the store locator, but its Sunday and X is now willing to have the product ASAP, so he purchases the article online to get it delivered at his house on Tuesday. 4. m-Commerce m- but many choose to think of mobile commerce While desktop browsing remains steady, it is forecasted that mobile Internet will be the primary source of traffic on the Internet: 6 Available: http://www.briansolis.com/2012/04/meet-generation-c-the-connected-customer/ Last accessed 04 Feb 2014
  9. 9. 7 Figure 3 Number of internet mobil user, worldwild (projection 2015)7 Mobile pages viewed have already doubled between 2011 and 2012 and mobile optimized contents are spreading very fast over the Internet. It now represents over Mobile is now a key entry point for e-retailers, as it is expected to represent 24% of the overall e-commerce revenues by 2016. As an example, m-Commerce in 2012 has registered a 2012) 5. Showrooming As a combination of the increasing role of smartphones (vs feature phones) within the mobile market, and the deployment of high speed 4G networks, customers get instant access to all the information they need. Showrooming is an emerging trend also referred to as the activity of using a smartphone in-store to try and feel a product, assess your interest, and then look for online offers directly from the sales floor in order to cease the best deals (opportunistic approach). EUROGROUP (2013) in its study on mobile shoppers8 noted that 29% of people doing showrooming will effectively end up purchasing online. So not only users can get information about a specific product, they can also compare your offers to your closest competitor. 7 Forester, Research 2010 8 EUROGROUP. En route vers le commerce 3.0. | Commerce traditionnel : des lignes qui bougent de façon irréversible | La mobilité, deuxième facteur de déstabilisation P.15
  10. 10. 8 Figure 4 Main uses of smartphones in-store9 Is show-rooming leading the fall of traditional retailers? 6. ROPO: Research Online Purchase Offline In the meantime, a recent approach is also spreading with the growing impact of e- Commerce over traditional economy. People tend to step back to traditional retail stores when it comes to having a rich client experience, and highly personalized insights. Clients will prepare their purchase and read product specifications online to assess their d qualitative feedback. Here is a scheme that synthesizes both approaches Figure 5 ROPO vs Showrooming. 10 9 Google (2013) Mobile in-store research: how in-store shoppers are using mobile devices
  11. 11. 9 Brick and mortar facing turmoil The traditional retail industry is being struck by a large and continuous movement. Retail sales are constantly rising while store visitors decline. By 2018, it is estimated that the total number of stores will fall by 22% in the United Kindgom (Center for Retail Research, April 2013).11 . Figure 6 : Number of retail stores (1950-2012)12 The trend and its impact are expected to vary depending on the industry as forecasted by Booz & Co (P. Péladeau, O. de Cointet. 2013).13 For France, for instance, the trend would be more accentuated in electronics and appliances retailers as the need for contact with the physical product may be less justified (an average 18% decrease vs 1% in fashion). 10 EUROGROUP "En route vers le Commerce 3-0" (2013) 11 A guide to retailing in 2018 (April 2013).The centre for retail research. 12 Ibid 13 Pierre Péladeau et Olivier de Cointet (2013). Perspective 2020 : quelle place pour la distribution traditionnelle dans un monde digital. Booz&Co.
  12. 12. 10 Figure 7 :Market share of digital sells and the impact on the shops surfaces14 If the number of point of sales is not necessarily at stake, the sales area is highly concerned and therefore potentially involving turnover. Less performing stores implies a less profitable activity that will then implicitly lead to a reduction of sales area leaving more space for m commerce and e commerce activities. manager of Oracle Retail and w Jan 2014).15 Traditional retail is a solid and reliable industry that is today facing the reality of a new vision. As the mono channel funnel is being slowly but surely erased from our radars, retailers have to seize the opportunity to become sophisticated in managing their customer relationship and the entire selling pa"th that leads the frugal consumers to the stores. However, depending on the industry, everyone built its own perception and its own 16. Therefore, it radically modifies the vision and approach that will take part into these high added value modifications. Amongst a panel of 114 professionals and 46 experts interviewed by the CREDOC17 in 2010, 36% considered that the change would be just as 18 14 Booz&Co (2013). Perspectives 2020 : quelle place pour la distribution traditionnelle dans un monde digital 15 John Foley, (January 2014). 10 Technology trends that will revolutionize retail, http://www.forbes.com/ 16 Philippe Moati avec Pauline Jauneau et Valérie Lourdel (2010). Quel commerce pour demain ? La vision prospective des acteurs du secteur, pV. Cahier de Recherche N°271, CRECOC. 17 18 Enquête « rs » (2010) . CREDOC. Base 114 professionnels et 46 experts.
  13. 13. 11 1. E commerce questioning the model E commerce is certainly identified as being the first major destabilizing factor. It is indeed forecasted that up to 30% of the markets share will be detained by the e commerce sector by 2015.19 Sept. 2013)20, e commerce has had one of the most impressive impact on the traditional retail industry over the last few years. Its continuous growth is reaching all sectors and the trend is on permanent progression. Figure 8 : 21 Although one of the major trends is to consider e commerce as an unfair competitor, traditional retailers have eventually decided to embrace the trend and integrate it as a key factor for a successful global strategy. 2. Mobility challenging The second major factor for brick and mortar turmoil is the mobility and its fast growing adoption amongst wiser educated customers and their communities.7 In a context of crisis, the customer wants to arbitrate and permanently strengthen its choices. Its winding purchasing path is much longer and complex than it used to be. Point of sales concerns. 19 Philippe Moati avec Pauline Jauneau et Valérie Lourdel (2010). Quel commerce pour demain ? La vision prospective des acteurs du secteur, pV. Cahier de Recherche N°271, CRECOC. 20 Eurogroup Consulting (Sept 2013). En route vers le commerce 3.0. 21 Ibid
  14. 14. 12 Figure 9 : Global Smartphone traffic to increase 10X by 201922 In 2012, 42% of m-buyers declared having used a mobile terminal at one stage of their purchasing decision and for very different usage (Google, 2012).23 Figure 10 : the mobil is important at every stages of the purchasing decision24 Retailers now share a common concern throughout the globe on how to effectively re engage disenchanted consumers. 3. Integrate technologies and information systems Last point is the fact that e-commerce systems with their corresponding transaction engines have evolved separately from brick-and-mortar that are now facing the complexity of adopting the most adapted and adaptable emerging technologies. Legacy system that have equipped point of sales are generally closed and require a heavy customization in order to integrate information and customer relationship management in the most efficient manner (Executive Research Report, Jan. 2014).25 22 F.Richter (2013). Global Smartphone traffic to increase 10x by 2019. www.statista.com 23 Google (2012). Mobile Study (Think mobile with Google). 24 Eurogroup Consulting (Sept 2013). En route vers le commerce 3.0. 25 The university of Arizona and Demandware ( January 2014). The next of online and offline convergence.
  15. 15. 13 have put huge strains on the ability of a business to effectively respond to the ever changing retail landscape. The result is a duplication of costs from system acquisition to maintenance and support 26 This is an ultimate barrier for traditional retailers to adapt and adopt a clear strategy on how to face the change. 40% of American consumers do feel lonely and consider that human contact to a salesperson as vital when shopping (Treussard, 2014).27 So let them be at the heart of the conversion. As an answer to the previously stated context, more and more retailers have decided to adopt an ongoing Omni channel strategy. 26 Tom Litchford, VP, Retail Technologies ( 22/01/2014). The Evolution of the cash register . 27 Louis Treussard, CEO de l'Atelier BNP Paribas. (02/02/2014) http://www.petitweb.fr/actualites/ne- dites-pas-a-ma-mere-que-je-tiens-une-boutique-elle-me-croit-pianiste-dans-un-bordel/.
  16. 16. 14 Omni channel Deployment opportunities 1. Connected Customer 2005, Procter & Gamble created the concept of moment of truth. In the customer journey, a customer is confronted to different moments of truth: Stimulus will push create an emotion and create a first contact with the brand. Then the customer go to the store, buy a product, first moment of truth, and create another contact with brand. Finally by using the product, second moment of truth, customer and brands create a positive or deceptive relationship. Figure 11 : 28 During years, advertisers aimed to create campaigns that would create stimulus to the tools used by brands to guide the customer into its decision making process. Brands used to have a total control over the traditional path. Now, because of the Internet revolution and the empowerment of social media platforms, brands are confronted to a new source of information for customers: the e- reputation. In fact, Google adapted the Procter & Gamble model to add another moment of truth. The zero moment of truth is the moment when the potential client will look for some information online to make a decision. Figure 1229 So between stimulus and first moment of truth, there is now another contact that is not generated by brands but by users and networks. 28 CAVAZZA, F. (2013). Les marques ne maitrisent plus le premier contact avec les clients. Available: http://www.mediassociaux.fr/2013/12/05/les-marques-ne-maitrisent- plus-le-premier-contact-avec-les-clients/. Last accessed 05th Feb 2014. 29 Ibid
  17. 17. 15 2. A cross channel customer Besides this new moment of truth, customer purchase path has been influenced and modified by Internet . The first destabilization of traditional commerce has been the development of e-commerce thanks to Internet deployment. Compared to traditional commerce, e-commerce allows customers to save time, is available at any time, offers a larger catalogue of products with some exclusive items - and gathers more promotional offers. Nevertheless, e-Commerce has also showed some limits, such as the impossibility to try, to 30 Indeed customers need to balance online and in store to enjoy the corresponding different paths between online and in-store that enter into account in the buying process of the customer. Customers are active on different channels at the same time. The main trend will be the ROPO, when a customer is looking for information online prior to purchasing in store. According to Converteo (Converteo, 2012)31, 69% of customers are researching online and then purchasing offline. Instead, 32% of customers are researching in store and then buying online. The phenomenon is also known as showrooming. Here are the different paths (online and in store) a customer can use along his buying path: Figure 13 : Cross-canal funnels32 30 ZELINE, G. & GUYOT, J.M. (2013). Réflexion sur le commerce 3.0. Paris: EUROGROUP CONSULTING FRANCE. 31 - -canal. Paris : Converteo. 32 SIA PARTNERS (2013). Repenser le parcours client au sein des centres commerciaux, à
  18. 18. 16 According to a digital whitepaper (SYZYGY, 2012)33, the trend is even accelerating: market research company Forrester predicts that connected technology will influence 44% of retail sales by 2016. These connected customers are a real added value if brands know how to adress them. Connected customers who supplement in-store shopping with online research spend as much as 82% more per transaction than non-ROPO consumers, making them an attractive demographic to target. On the other hand, connected customers can be a threat for in-store retail because they are increasingly willing to shop online. In 2011, with a flatlining retail sector, European 3. Non adapted reaction from the company Majority of brands are still using different independent channels for sales and communication without any homogenization. As a logical evolution, brands should evolve to a cross channel model that aims to create bridges between the different channel, creating complementary instead of conflict. Figure 14 : 34 Available : http://transport.sia-partners.com/files/2013/10/Le-caract%C3%A8re-cross- canal-des-consommateurs.jpg Last accessed 05 Feb 2014 33 SCHRÖDER, F. & BACH, J. (2012) Whitepaper Digital POS. Frankfurt : SYZYGY. 34 - -canal. Paris : Converteo.
  19. 19. 17 Figure 15 : 35 4. Omnichannel stakes It is important that brands move to a cross channel , even omnichannel structure, to gather and homogenize all the data collected though independant channel. Mastering data will provide brands with a powerful cross channel database and will help it - Reinforcing and controlling traffic between online and in store By gathering cross-channel data, brands facilitate cooperation between channels and collect useful and powerful information. It allows crossing data on: interest, and gathered data attributed to each customer, gives a global understanding of the customer. 35 Ibid
  20. 20. 18 - Customer intelligence helps personalize customer experience Once data has been collected and gathered, each customer can be identified by information to afford a personalized experience and push personalized offers. For instance, brands can offer a specific push for people planning to buy a specific product when this one is on the store. This customer centric approach helps brands to focus and target the right customer and create a strong relationship with him. Customer knowledge is a key factor of communication and marketing lines and cross channel data will help them targeting the right customer, at the right place with the right message. - Provide customer insights to support sales persons: Thanks to customer knowledge development, the sale force is able to have a better understanding of what their clients are looking for and what would be the right product, service to present them following their interests, backgrounds, budget.. Besides, crossing data between different channels also mean gathering outside and inside company data. The sale persons could have a real time access to the stock of the store, to the products/service to come, the current offer but also complementary information about product/service : a better knowledge of the store and its products. By combining customers and company knowledge, the sale person can be really proactive in his work and real added value for both of the actors. 5. Omnichannel Deployment As omnichannel stakes are huge and determining in future retailer success, a lot of solutions have been developed to answer connected customers and omnichannel trend. Data Optimization Management Because it represents omnichannel basis, the technologies have been developed to collect and optimize data management. For instance, e-CRM merging online and offline databases have been developed to make sense of current data. Galerie Lafayette, as one of the pioneers retailer on this initiative, already began merging both databases through its loyalty card.
  21. 21. 19 Figure 16 : 36 master the Information System along the commercial path. Data Supports Different tool have been developed to support commercial steps, before and during the sale. Among screens and intelligent tablets and smartphone and digital interactive machines seem to be at the heart of development for data support. Figure 17 : 37 Even if digital interactive machines are nowadays the most mature support, Keirus (2012) Within 3 years, 100% of customers will own a smartphone and smartphones and tablets will become universal tools covering all the sales steps. 6. Omnichannel Solutions Omnichannel solution is at its early stage but a lot of initiatives have been taken by brands for mastering this new trend. 36 - cross-canal. Paris : Converteo. 37 CLAUDON, R. & ALIX, T. (2012). Etude digital in store. Paris : Keyrus Management.
  22. 22. 20 A benchmark of major relevant omnichannel solutions will be provided in the following 2013)38: Traffic Generator - Geofencing Geofencing physical stores. - Geolocation / Store Locator Find the closest store to the customer location, even get directions to the the store. - E-couponing Brands are proposing promotional offers on social media, Internet user following the brand can download the offer and redeem it in store. - Other initiatives in traffic generation Availability promotional offers, for an easy consultation on the -catalogue is sent according to the different segmentation profiles identified in the CRM databases) Purchase lists Customer is able to prepare his purchase list from home or anywhere from his mobile for optimize in store path and directly go targeted articles. Shopping experience - Product availability Real-time stock information is available online and allows sales force and customers to know product stock in store. - Check & Reserve The solution allows to know product availability and reserve it, without buying it, to come to store and try them on. - Connected Sales Persons A connected sales person is a seller equipped with digital tools allowing him to give more relevant and efficient advice to customers: technical information, stock, customer - Product information : QR code, bar code, NFC, photo allow customers to get information on the products they are looking at in store - M-payment 38 ZELINE, G. & GUYOT, J.M. (2013). Réflexion sur le commerce 3.0. Paris: EUROGROUP CONSULTING FRANCE.
  23. 23. 21 The main reason of the online commerce increase is time saved compared to buying in store. Lot of solutions have been developed to avoid time waste, check out abandons or dissatisfaction. - Mobile checkout Thanks to mobile support, the sale person is able to scan products, account for the customer basket and check out anywhere in the store Delivery - Click and Collect / instore In contrary to check and reserve solution, click and collect solution allows to know product availability and reserve it , buying it and then to come to store to collect it.
  24. 24. 22 Omni channel Solution Benchmark 1. Best Buy #ULTIMATE SHOWROOM 39 Context: The Richfield, Minn., electronics retailer founded 2004 has been hurt by growing competitors in the last few years. Losses are estimated up to 1.2 billion $ during 2012 (50 billion $ turnover/year on 1400 POS = 18% of the in store market share. Aim: React to the showrooming effect & Increase online revenue and conversion rate. Campaign: A five-points manifesto. Renew Blue (Omni channel retailing at stake) launched nov 2012. Together with a price matching strategy, the aim is to increase inventory to guarantee availability and use Geo fencing capability by pushing deals to the customer when shopping in store. Performance: Online traffic (+1.3% in 2012) + pick up button on the web site (40% of customers are using this option) ROI: Number of clicks on the web site to purchase a product has been cut down to 3 Techno & Support: Geofencing Agency: Placecast through SocialVibef 39 http://www.ropo.fr/2014/01/e-web-to-store-et-le-store-to-web-campagne-publicitaire-BestBuy.html SOURCE: Marketing Evolution Brand Tracker, n=2,804 FY13 Q2 Data
  25. 25. 23 2. John Lewis # SOCIAL CRM Using a mobile app, John Lewis is able to identify its customers and suggest articles they might like according to their purchase history. Context:40 The last few years have arguably been the most turbulent in the history of the British High Street. Retailers such as Jessops, Comet and Blockbuster have gone to the wall. High Street institutions have been forced to contend with unprecedented change in the retail landscape. The impact of the recession has been huge, but the impact of the the way consumers shop - and often to the detriment of the traditional bricks and mortar business. Campaign description: After successfully implementing a pick and collect concept store in 2009, John Lewis decided to invest massively in cross-channel solutions. Andy Street, John Lewis managing director said in 2012: customers buy both online and in shops so the approach is to make it absolutely seamless for them to move from one to the other. So they can research in one place and shop in the other, they can buy in one place and pick up in the other the art of sales is consistent across channels, so the whole approach is to make it channel agnostic. Now that the concept is up and running in around 5000 locations, John Lewis wants to take the experience even a step further, and is now proposing to mobile shoppers My John Lewis, a new service that is able to suggest you products based on your shopping history and your likes. Performance : 40 Bardwell, C. (2012). John Lewis: Multichannel shoppers spend 3.5 times more. Available: https://idc-insights-community.com/retail/retailomnichannelstrategies/john- lewis-multichannel-shoppers-spend-35-times-mo. Last accessed 18th Dec 2013. Brandweiner, N. (2013). John Lewis: How a 150 year-old retailer became an omnichannel champion. Available: http://www.mycustomer.com/feature/experience/john-lewis-how-160-year- old-retailer-became-omnichannel-champion/164763. Last accessed 18th Dec 2013. The Marketing Society UK. (2013). 2012 winner: John Lewis, E-Commerce - Case Study. Available: https://www.marketingsociety.co.uk/the-library/2012-winner-john-lewis-e- commerce-case-study. Last accessed 18th Dec 2013.
  26. 26. 24 John Lewis has long been synonymous with excellent customer service and satisfaction. Since it first opened its doors in 1864, satisfaction has been the key tenet of the retailer's strategy. The last two years John Lewis won UK Customer Satisfaction Awards and Britain's Favourite Retailer Awards the last two years. For its efforts in omni-channel, John Lewis was awarded the Multichannel Retailer of the Year award at the Retail Week Awards, as voted by a panel of judges from the industry. ROI : Mobile is now the fastest growing channel for John Lewis, last year during Christmas period, mobile sales went up by 200%. (Source: Brandweiner) 27% of John Lewis customers research what they want in store and then purchase it online Over 60% of customers research online before going to the store More than 20% of John Lewis customers buy online and collect in store 40% use their phones to interact with the brand when in the store (Source: Bardwell) Technology: Social CRM Support: Smartphone / Loyalty card / e-Commerce website Agency : N/A
  27. 27. 25 3. Burberry #SOCIAL MEDIA MONITORING #CUSTOMER INTELLIGENCE Context: Burberry has progressively set a broad move to digital, whilst keeping a coherent approach to its customers throughout channels. Campaign description: Merging all contact points with its customers to provide a rich client experience, Burberry is now at the forefront of customer intelligence. The company has set high standards for its customer relationship management program: - Social media monitoring. should be able to hear it, so that whenever you tweet something positive or negative, or teams around the world can pick up on that and can start having a dialogue with you in real-time. Angela Ahrendts, former Burberry CEO - Customer 360 A data-driven shopping experience which invites (opt-in feature) customers to digitally share their buying history, shopping preferences and fashion phobias. - Information is then delivered to the employees on the sales floor, via their tablet. Tied to the the world. Performance: - Digital Innovation Award at the 2010 British Fashion Awards - The livestream of the brand opening in China was watched by over a million people online, in 185 countries. - Time to get an answer from a client service representative on livechat: less than 20 seconds. culture within Burberry. Technology is the enabler and I find it incredibly liberating. Burberry is really
  28. 28. 26 music. Of course, there are the clothes and bags, watches, eyewear and fragrances. But -way street - Christopher Bailey, Chief creative officer Technology : Social media monitoring: Radian 6, Buddymedia (Salesforce technologies) In store digitization: RFID tags, Unified CRM between stores and e-commerce website, SAP Hana (Rich CRM analytics) Support: Smartphone / e-Commerce website / Social networks / Live video streams / In store digital experience Agency : Internal digital team.41 41 Fieldworks Marketing. (2013). Burberry takes top spot in 2013's Multichannel & eCommerce Top 100 Movers & Shakers report. Available: http://www.it-director.com/channels/retail/news_release.php?rel=40993. Last accessed 18th Dec 2013. Forbes. (2013). How Fashion Retailer Burberry Keeps Customers Coming Back For More http://www.forbes.com/sites/sap/2013/10/28/how-fashion-retailer-burberry-keeps- customers-coming-back-for-more/. Last accessed 18th Dec 2013 Huffington Post UK. (2011). Burberry: The Best of British Digital Innovation Available: http://www.huffingtonpost.co.uk/2011/09/07/burberry-the-best-of- brit_n_951697.html. Last accessed 18th Dec 2013. Omni- - Available: http://omni-channelretailing.com/item.php?news_id=7299. Last accessed 18th Dec 2013. Robertson, E. (2013). Is Burberry the marmite of multi-channel retailing? Available: http://www.transformuk.com/is-burberry-the-marmite-of-multi-channel- retailing/. Last accessed 18th Dec 2013. Salesforce. (2012). Burberry's Social Story (Video). Available: http://youtu.be/DzBIYwZsut0. Last accessed 18th Dec 2013.
  29. 29. 27 4. NordStrom #MOBILE ¨POS DEVICE #ECRM #LINE DECREASE #SALE INCREASE Context: The first biggest obstacles for customers to buy in store is time wasting. Going to the store, find out your items in the stores, queuing why more and more customers prefer buy online. Campaign: Nordstorm, an American upscale fashion retailer, have found a solution to reduce he store through their smartphone.. Sales associated stand in the store, directly available to mobile payment processing. Thanks to the apps they are also able to check the paperless billing. Performance By enabling checkout anywhere in the store, sales associates can process purchases in seconds, decreasing abandonment rates and increasing sales. ROI As a matter of fact, since implementing their mobile POS system, both the average 15% increase in Q1 2012 revenue compared to the same period in 2011. Techno & Support These mobile POS devices are modified Ipod Touch with merchandise scanner and credit card slider. Built on an Oracle platform, the very lifeblood of the company runs on this highly available, fault tolerant system. Agency Designed by the IT department of Nordstrom, a "secret" team from Apple and a few outside technical developers helped create the basic interface to Nordstrom's proprietary backend POS software. 42 42 http://www.neilstoolbox.com/bibliography-creator/
  30. 30. 28 5. Sephora #SALES FORCEC SUPPORT # CUSTOMER KNOWLEDGE # UPSELL Context Because Sephora has evolved to a self service store, the brand has lost the personalized customer relationship in store. The new objective of this omnichannel solution has been to reconstitute this personnalized relationship by capitalising on customer knowledge. Campaign The seller recognizes the customer through a Sephora fidelity card or his name. An information form appeared summarizing the customer fidelity points, his average basket, nature of products most bought, his contact information, his purchase baskgrounds algorithm. This engine is able to implement and improve from the customers; the sale Performance L'enseigne de cosmétiques Sephora a développé My Sephora, une application accessible aux vendeurs en magasins équipés de l'Ipod Touch de l'enseigne (800 à ce jour). Cette innovation, en test depuis juillet 2011 et déployée graduellement en France depuis le début de l'année dans les quelque 300 magasins de l'enseigne ROI Sephora has been designed by L2 has the company that best exploit mobile possibilities. Techno & Support This application has been implemented on Ipod Touch by Sephora The CRM technology to merge dat Agency / Sephora & ScentSA, now bought by Sephora43 http://www.forbes.com/sites/kellyclay/2012/04/06/nordstrom-sees-15-3-increase-in- retail-sales-following-introduction-of-mobile-pos-devices/ http://www.odysseyinc.com/blog/nordstrom-mobile-point-of-sale/ http://www.quora.com/Nordstrom/What-features-does-Nordstroms-modified-iPod-touch- mobile-POS-system-encompass 43 ttp://www.le-furet-du-retail.com/article-l-appli-conseillere-beaute-my-sephora-le-crm- de-l-enseigne-sur-le-bout-des-doigts-102086132.html
  31. 31. 29 6. Walmart #GEOFENCING # GEOLOCATION # INSTORE M PAYMENT Context: Google says that 89% of shoppers use their mobile phone while shopping for groceries Description: Fall 2012 WalMart launched its own developed mobile application proposing an in- store mode. This app allowing customer to creates its shopping list, and while he is close to a WalMart store, to be geolocated and the app switch to its « shop » mode. Proposing geofencing. A scanning function permitting to customers to purchase straightly without wasting time at cash desk queues, is include in the app. Performance: N/A ROI: Gibu Thomas, Walmart's Global Head of Mobile: More than 50% of our customers have smartphones. About one-third of . It was as high as 40% over the holidays. Mobile app users spend 40% more each month and make two more trips per month. Our highly engaged spend 77% more each month and make four more trips per month than the non-mobile user. Mobile shoppers are some of our most loyal shoppers. Techno & Support: WalMart Agency: N/A Application (examples): Shopping list making + Geofencing ROI: 40% app increase during the holidays Brands using it: Wal-Mart Stores, Inc.44 44 Julie Ask. (2013). WALMART TAKES CONTEXTUAL, PRAGMATIC APPROACH TO MOBILE. Available: http://blogs.forrester.com/julie_ask/13-05-22- walmart_takes_contextual_pragmatic_approach_to_mobile. Last accessed 16th Dec 2013.
  32. 32. 30 7. #CRM 360 #GEOFENCING # SoLoMo Context: BLE (Bluetooth Low Energy), the latest Apple innovation Campaign: - scans are organized in a feed for effortless shopping close to the customer. - Kicks are rewards points. Collected by walking in or scanning items at stores near your customer. Just need to open shopkick at the store's entrance. - Link your Visa or MasterCard card to earn even more kicks when you make qualifying purchases. Redeem kicks for gift cards Technology: ShopKick : Around customer selection of products selected thanks customer intelligence, and when close to a device placed out behind the clothe hunger , ShopBeacon device he is prevent about the presence of the product selected close to him. Category: Shopping Community Name: Shopkick ROI: 5 billion kicks ($20 million) earned by users 7 million gift cards redeemed 50 million products scanned30 million verified store strips Attract high-value demographics (millennials, moms, young families, etc.) Leverage the power of mobile to improve in-store experiences Develop long-term relationships with consumers Capture data on consumer behaviors and resonance of merchandising45 Other Brands using it: Enid Burns. (2013). Walmart's Mobile App Aims for 'Indispensable' Customer Tools . Available: http://www.ecommercetimes.com/story/78109.html. Last accessed 16th Dec 2013 45 Jhon P. Mello Jr. . (2013). Macy's Dips Toes in Brave New Marketing World. Available: http://www.macnewsworld.com/story/79493.html. Last accessed 16th Dec 2013. ShopKick. (2013). ShopKick. Available: http://www.shopkick.com/index. Last accessed 16th Dec 2013.
  33. 33. 31 Old Navy, Best Buy, JCPenney, Crate & Barrel, Sports Authority and Target; Partners with

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