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3. Jim
Bengier
Global Retail Executive
Sterling Commerce an IBM Company
Troy
Brown
Retail Practice Leader
Demandware, Inc.
Debbie
Hauss
Executive Editor
Retail TouchPoints
4. Agenda for Cross-Channel Brand Interaction 2010 Consumer
Preference Survey
Introductions
Key Results from the Survey
Survey Released at Shop.org Annual Summit
Sterling Commerce’s point of view
Demandware’s point of view
The Future of Cross-Channel
Questions
4 © 2010 IBM Corporation
5. Overview of the 2010 Consumer Preference Survey
2010 versus 2007 consumer expectations
Importance of Cross-Channel to the Consumer
Required Cross-Channel Capabilities
UK versus US Consumer Expectations
5 © 2010 IBM Corporation
6. Consumers Cross-Channel Expectations Have Changed
2007-2010 Comparisons1
Cross-Channel Consumer Expectations 2007 2010
Complete an order anywhere 55% 61%
Modify an order anywhere 65% 74%
Track an order anywhere 56% 87%
Shipping Notice (via any combination of channels) 94% 88%
Shipping Delays (via any combination of channels) 91% 91%
Delivery Notice (via any combination of channels) 78% 79%
Cross-channel return to store 90% 84%
1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce, DemandWare
6 6 © 2010 IBM Corporation
7. They’ve Raised The Bar Even Higher
85% of respondents
“expect a seamless
experience across all
channels for a retailer”. 1
1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce, DemandWare
7 7 © 2010 IBM Corporation
8. And, The “Spoiled” Consumer’s Expectations Have Expanded
Importance Of Cross-Channel Capabilities 1
Notify when item is ready for in-store pickup (important to very important) 91%
A negative experience online gives me a negative impression of the
retailer over all 62%
Notify when frequently-purchased item will be on sale (important to very
important) 59%
Maintain cross-channel customer history (important to very important) 53%
What impact does your online shopping experience on a retailer's
website have on your overall perception of the retailer's brand? 48%
Importance of social media when shopping online or via mobile
(important to very important) 22%
Access product reviews when shopping online or via mobile (important
to very important) 75%
Chat with CSR when shopping online or via mobile (important to very
important) 53%
1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce, DemandWare
8 8 © 2010 IBM Corporation
9. Consumer Expectations in UK Versus US
2010 Comparisons1
Cross-Channel Consumer Expectations UK US
Have high expectations of a seamless cross channel
experience 87% 85%
Want in store pick up/returns 78% 83%
UK consumers less likely to buy extras while picking up at
store 23% 40%
Experience frequent OOS for promotional products 32% 32%
Uncomfortable making purchases on mobile phones 71% 69%
Use mobile to more to assist than to buy
Check product availability 29% 28%
Purchase products 12% 7%
Market “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce, DemandWare
1 Source: place is the most useful mobile shopping app 69% 66%
© 2010 Sterling Commerce intellectual property. All rights reserved. 9 © 2010 IBM Corporation
10. Survey Was Released at 2010 Annual Shop.org Summit
Tuesday Afternoon Invitation Only Executive Summit
– 125 Senior Level Retail Executives
– Key Note Speaker was Terry Lundgren, Chairman and
President of Macy’s
Comments
– Terry referred to the new “Omni” channel and Macy’s IT
budget
– Executives took notes on customer preference
– Everyone was in agreement on the required cross-
channel focus
10 © 2010 IBM Corporation
12. Retail Transformation
Store
Primary shopping venue
Singe touch point
On-Line
Compete against pure play
New customer touch point
Cross Channel
Customers shop
Omni
Integrate Channels
Technology view
New Relationships
© 2010 IBM Corporation
13. Three Key Findings From the 2010 Customer Preference Survey
Meet the “Rewired” consumer
– No longer separate channels, but consumers use
touch points
– Connectivity is the answer
Convenience and flexibility are deciding factors for
the consumer
– 66% consider it important to be able to determine
in-stock availability before visiting a store
Technology in the consumer’s hands is Leading retailers
– Mobile capabilities for price, 30%; specials, 28%;
availability, 26%; item location, 16%
13 © 2010 IBM Corporation
14. Order Management System: The “Brains” of Your Cross-Channel
Fulfillment Must Provide:
Flexible Fulfillment
Management By Exception
Inventory Optimization
Real-time Decision Support (SmartApps™)
Source: AMR, “Unlocking Cross-Channel Benefits Through Advanced Order Management”, September 20, 2009
14 © 2010 IBM Corporation
15. Our Customers Are Investing in Cross-Channel Technology
© 2009 Sterling Commerce intellectual property. All rights reserved. 15 © 2010 IBM Corporation
16. Four Areas Where Retailers Are Investing in
Cross-Channel Technology
Inventory Visibility & Available to Promise
– Consolidate inventory information across multiple systems, enterprises, and participants
– Intelligent sourcing engine optimizes inventory use across the extended enterprise to
provide best Available-to-promise (ATP ) dates
Orchestrate Inventory Fulfillment
– Coordinate complex fulfillment across the extended enterprise
– Provide a single order repository to modify, cancel, track, and monitor the order lifecycle
in real-time
– Configurable, adaptive processes
Returns and Exchanges
– Enable cross-channel returns and exchanges
– Automate returns disposition such as return to stock, return to supplier, or destroy
– Link return requests to original sales orders, to enable lifecycle tracking
Delivery, Service and Scheduling
– Ability to schedule delivery, installation, and other add-on services at time of order
transaction
– Rules-based promising, provider selection and crew allocation
16
– Integrated control of inventory, delivery and services execution © 2010 IBM Corporation
17. What Is the Future of Cross-Channel?
Terminology- “Omni” seems to be taking hold
Technology will continue to lead retailers
Seamless customer experience regardless of start and stop points
17 © 2010 IBM Corporation
18. Demandware
Strongly Branded eCommerce Since 2004
Innovated merchant-centered tools to support
strongly branded customer experiences
Relieved IT burden with first SaaS eCommerce
platform with continuous innovation, full customization
and utility-level reliability
Delivered on a shared success business
relationship that builds long-term partnership
Your Brand. Your Consumer. Demandware.
Copyright 2010Demandware, Inc. - Confidential
19. Demandware
Strongly Branded eCommerce Since 2004
Your Brand. Your Consumer. Demandware.
19 Copyright 2010Demandware, Inc. - Confidential
21. Branded Engagement
Brand Strength In Every Consumer Experience
Merchandising Sales
Marketing Brand Values Service
Brand Promise
Branded Engagement
Expresses your brand Delivers relevant Builds an
through every aspect of experiences emotional and
the consumer across rational bond
experience consumer’s between the
need consumer and your
brand
Copyright 2010Demandware, Inc. - Confidential
22. Branded Engagement
Foundational Considerations
• Focus investment at the branded engagement
application level versus expensive integration
and throwaway custom code
• Flexibly integrate merchandising, sales and
service at the business process level, enabling
rapid response to changing consumer demands
• Unified data underpins the lifecycle of browsing,
consideration, purchasing, service
– Customer, product, orders, inventory
Copyright 2010Demandware, Inc. - Confidential