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Understanding the impact
of the omni-channel consumer
decision journey
In Europe, online retailers are expanding
14 times faster than conventional outlets
Mature markets
Online sales
9.5% or more of domestic retailing
Online sales
6.5% - 9.5% of domestic retailing
Mid range markets
2
3
Adapting to an Omni-channel
Sales Environment
In the past companies needed
to optimise their sales only in
“real stores”
Now it becomes crucial to optimise the
assortment also for the different online
retail channels and to think about both
online and mobile devices
PAST
In-store optimisation
CURRENT
Cross-platform
optimisation
Both manufacturers and retailers need
to adapt in order to stay relevant
4
Digital strategyIn-store strategy
From the 1st moment of truth
to a zero moment of truth
5
PAST
1st moment of truth
CURRENT
Zero moment of truth
Key learnings have come from a
number of different methodologies
6
Decision
Journey Mapping
Self Declared Behavioural
Passive
Monitoring
A – Z
Scenario Testing
Data
Integration
A
B
Z
7
5 Key Learnings that can help you
manage your presence across the
consumer decision journey
Online &
Offline
Tipping
Point
Multiple
Touch points
Content
Control
Price
Comparison
Consumers shop offline when:
8
Learning 1: Consumers exhibit different
reasons to shop online versus offline
Immediate
needs
For convenience
(already in / near the
store, etc.)
Want to experience
the product
9
Learning 1: Both channels are important to
provide a comprehensive decision journey
Need to
save time
Wider selection
of products
Consumers shop online when:
For convenience
(can shop at any time)
10
Learning 2: 1/3 of consumers reach their
tipping point at their first touch point
Especially when
shopping online,
the zero moment
of truth (ZMOT)
is crucial
11
0%
2%
4%
6%
8%
10%
12%
1 4 7 10 13 16 19 22
ProbabilityofChoice
Order in the Search List
While it has become less important than it was
10 years ago, the #1 organic listing is still
clicked on most often (32.8%)
Learning 2: Search positioning
can often be the first touch point
HIGH
SEARCH
POSITIONING
INCREASED
VISIBILITY
CUSTOMER
CONSIDERATION
!
Learning 3: On average, consumers still have
4 touch points before making a purchase
Ask friends
& family
Product
information at
specialty retailers
User-generated content
(videos on YouTube,
reviews, etc.)
Online
searches
12
13
Learning 4: Products clearly showing the
product have higher probability of choice
Online there is more freedom to play with creative imagery
13
ONLINE
Help shoppers see the benefits
of your product
BRICK & MORTAR
There is only the “real product”
Fresh
cream
Fresh
cream
500 g
14
Learning 5: Price comparison engines give
the opportunity to attract new customers
Google Shopping
Learning 5: Good reviews
command a higher price
15
-80%
-40%
0%
40%
80%
120%
160%
5 6 7 8 9
Impactonpreferenceshare
Average review score
base price
+10%
+20%
If your review score
increases with 2.5, you
can increase your price
with 20% without losing
preference share
16
5 Key Learnings that can help you
manage your presence across the
consumer decision journey
Consumers
view online
& offline
channels as
complementary
paths, meaning
both should be
given equal
importance
It is vital to
understand the
first potential
consumer
touch point,
to ensure you
capitalise on a
key opportunity
to win their
favour
There are a
plethora of
potential touch
points across
decision
journeys, and
understanding
which are most
important can
signal where to
focus efforts
and budget
Many content
constraints that
exist in a
physical store
are eliminated
online, giving
an opportunity
to better
manage what is
communicated
Price is
continuing to
grow in
importance, but
there are ways
to alleviate
pressure to
avoid entering
a constant
pricing war
Scott Garrison
Manager
Based in London
Tel: +44 208 222 7714
Twitter: @ScottDGarrison
Mini Kalivianakis
Director Client Solutions & Partner
Based in Rotterdam
Tel: +31 10 282 3551
https://nl.linkedin.com/in/kalivianakis
Contact us
skimgroup.com
@SKIMgroup
SKIMgroup
SKIMgroup

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Understanding the impact of the omni-channel consumer decision journey

  • 1. Understanding the impact of the omni-channel consumer decision journey
  • 2. In Europe, online retailers are expanding 14 times faster than conventional outlets Mature markets Online sales 9.5% or more of domestic retailing Online sales 6.5% - 9.5% of domestic retailing Mid range markets 2
  • 3. 3 Adapting to an Omni-channel Sales Environment In the past companies needed to optimise their sales only in “real stores” Now it becomes crucial to optimise the assortment also for the different online retail channels and to think about both online and mobile devices PAST In-store optimisation CURRENT Cross-platform optimisation
  • 4. Both manufacturers and retailers need to adapt in order to stay relevant 4 Digital strategyIn-store strategy
  • 5. From the 1st moment of truth to a zero moment of truth 5 PAST 1st moment of truth CURRENT Zero moment of truth
  • 6. Key learnings have come from a number of different methodologies 6 Decision Journey Mapping Self Declared Behavioural Passive Monitoring A – Z Scenario Testing Data Integration A B Z
  • 7. 7 5 Key Learnings that can help you manage your presence across the consumer decision journey Online & Offline Tipping Point Multiple Touch points Content Control Price Comparison
  • 8. Consumers shop offline when: 8 Learning 1: Consumers exhibit different reasons to shop online versus offline Immediate needs For convenience (already in / near the store, etc.) Want to experience the product
  • 9. 9 Learning 1: Both channels are important to provide a comprehensive decision journey Need to save time Wider selection of products Consumers shop online when: For convenience (can shop at any time)
  • 10. 10 Learning 2: 1/3 of consumers reach their tipping point at their first touch point Especially when shopping online, the zero moment of truth (ZMOT) is crucial
  • 11. 11 0% 2% 4% 6% 8% 10% 12% 1 4 7 10 13 16 19 22 ProbabilityofChoice Order in the Search List While it has become less important than it was 10 years ago, the #1 organic listing is still clicked on most often (32.8%) Learning 2: Search positioning can often be the first touch point HIGH SEARCH POSITIONING INCREASED VISIBILITY CUSTOMER CONSIDERATION !
  • 12. Learning 3: On average, consumers still have 4 touch points before making a purchase Ask friends & family Product information at specialty retailers User-generated content (videos on YouTube, reviews, etc.) Online searches 12
  • 13. 13 Learning 4: Products clearly showing the product have higher probability of choice Online there is more freedom to play with creative imagery 13 ONLINE Help shoppers see the benefits of your product BRICK & MORTAR There is only the “real product” Fresh cream Fresh cream 500 g
  • 14. 14 Learning 5: Price comparison engines give the opportunity to attract new customers Google Shopping
  • 15. Learning 5: Good reviews command a higher price 15 -80% -40% 0% 40% 80% 120% 160% 5 6 7 8 9 Impactonpreferenceshare Average review score base price +10% +20% If your review score increases with 2.5, you can increase your price with 20% without losing preference share
  • 16. 16 5 Key Learnings that can help you manage your presence across the consumer decision journey Consumers view online & offline channels as complementary paths, meaning both should be given equal importance It is vital to understand the first potential consumer touch point, to ensure you capitalise on a key opportunity to win their favour There are a plethora of potential touch points across decision journeys, and understanding which are most important can signal where to focus efforts and budget Many content constraints that exist in a physical store are eliminated online, giving an opportunity to better manage what is communicated Price is continuing to grow in importance, but there are ways to alleviate pressure to avoid entering a constant pricing war
  • 17. Scott Garrison Manager Based in London Tel: +44 208 222 7714 Twitter: @ScottDGarrison Mini Kalivianakis Director Client Solutions & Partner Based in Rotterdam Tel: +31 10 282 3551 https://nl.linkedin.com/in/kalivianakis Contact us skimgroup.com @SKIMgroup SKIMgroup SKIMgroup