JDA Innovation Forum: Seamless Omnichannel Campaigns Revenue Model

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Conceiving a revenuel model to get ROI of a Seamless Omnchannel promotional/commercial campaign (integrateing Marketing and eMerchandising)

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JDA Innovation Forum: Seamless Omnichannel Campaigns Revenue Model

  1. 1. Profit Distribution inOmni-Channel Retail.Milan, 30 May 2013
  2. 2. Copyright © 2012 Accenture All rights reserved. 2Something about Accenture …
  3. 3. Copyright © 2013 Accenture All rights reserved. 3An end-to-end service unique offeringStrategyConsultingProcessConsultingTechnologyConsultingProcess &SystemImplementationInfrastructureOperationsApplicationOperationsBusinessProcessOperationsAccenture As Business Innovation PartnerStrategy ConsultingManagement ConsultingIT-ConsultingStrategy Process Information TechnologyManagement of BusinessProcessesComprehensive Know-how throughexperts and projects across the e2evalue chainHigh implementation complexity throughIT and project management Know-HowChange Management
  4. 4. Copyright © 2013 Accenture All rights reserved. 4Introducing Accenture Interactive the e-commerce CoEIndia DeliveryCenters ConsumerGoods(Hyderabad)TechnologyLabsBangalore, IndiaOperations(Madrid ISC)CRM, S&M,BI, Planning(Milan ISC)ACINChicagoACINSao PauloAccenture Interactivee-Commerce Centre ofExcellenceMilanPhilippineDeliveryCenter(Manila)Supply Chain(Barcelona ISC)Technology LabsSan Josè,CaliforniaTechnologyLabsChicago, IllinoisHigh PerformanceBusiness ShowcaseMurray Hill, New JerseyLondon, UKTechnology LabsSophia AntipolisSAP Retail(Bilbao)DeliveryCenter(Napoli)Value LedERP(Bangalore)Oracle Retail(Lodz)Accenture Customer Innovation NetworkAccenture’s global network of CG&S Industry Solution CentersGlobal Delivery NetworkAccenture Tecnology LabsTechnologyLabsBeijing, ChinaBI, ERP, Agri(Chicago, ISC)
  5. 5. Copyright © 2013 Accenture All rights reserved. 5Omnichannel is a new strategyto follow the digital-customerthrough a tangled customer-journey.
  6. 6. Copyright © 2013 Accenture All rights reserved. 6OnlineOn the goIn storesIn touch withsocial medianetworks• Customer journey becamedynamic, accessible andcontinuous. Now it is Non-Stop.• Customers are no longer entera channel. Instead, they arecontinuously in the channel.• Thus customer’s focal point is notanymore purchase butevaluation and interaction.New customer is now always connected
  7. 7. Copyright © 2013 Accenture All rights reserved. 7SEARCHNatural Search,SEOPaid Search,SEMSearchCapabilityLanding PageOptimisationiMEDIAStandardDisplay AdsRich MediaAdsBroadbandVideoWeb TVWEB SITEBrandedSitesAffiliateSitePromotionalSiteUsability &AccessibilityAnalytics,Web SiteOptimisationPARTNERSHIPSContentSyndicationComparisonSites,ShoppingDirectoriesSponsorships,Co-brandingPhilanthropicCauseMarketingE-COMMERCEDirect toConsumerWhere to BuyFunctionalityBrandedStorefrontSell Direct onThird-Party SiteTechnicalPlatformMOBILEMobileBrowserMobile Aps QR Codes, GPSRFID POSTextMessagingCRMLoyaltyPlatformBehavioralTargeting &AcquisitionCross-sellEngineRetention &WinBackCampaigns,Email,ReportingSOCIALOnline Video Communities,Answer ForumsWord-of-mouth,Buzz, ReferralsWikis, blogs,Crowd SourcingProductInnovationMultichannel Customer JourneyDIGITAL CAPABILITIES TO LEVERAGEOFFLINEFOUNDATIONAWARENESSADVOCACYPURCHASECONSIDERATIONLOYALTYONLINEIdentificationof NeedSearch forSolutionEvaluateAlternativesProductDetailsVisit tothe storePurchaseDecisionVisit tothebrandwebsiteCompareOffersOnlinePurchaseSocialInteractionOnlineRegistrationMobileAppOfflinePurchase19% 81%Time SpentCustomer is exploring multi-channel experience
  8. 8. Copyright © 2013 Accenture All rights reserved. 8• Digital customer is using theSOcial LOcal MObile interactionon daily base• In-store price comparison, rating-&-review and gamificationinfluence purchase decision anddrive additional customer• There are new features to map themalls (even floors) to drive thecustomer to theirs preferred store.Driving traffic to store with digital and SO.LO.MO.
  9. 9. Copyright © 2013 Accenture All rights reserved. 9Business-Case: Google Maps Indoor
  10. 10. Copyright © 2013 Accenture All rights reserved. 10Business-Case: Google Maps Indoor
  11. 11. Copyright © 2013 Accenture All rights reserved. 11Business-Case: Google Maps Indoor
  12. 12. Copyright © 2013 Accenture All rights reserved. 12ONLINESingle shopping mission across channels• The retailing experience isevolving from Multi-channel toOmni-channel• Distinct sales channels are givingway to a single, all-encompassing business model• The customer experience couldbegin and end everywhere• Omni-channel approach buildsseamless operations for aconsistent experience
  13. 13. Copyright © 2013 Accenture All rights reserved. 13Business-Case: in-store comparison
  14. 14. Copyright © 2013 Accenture All rights reserved. 14Business-Case: Best Buy in-store comparison
  15. 15. Copyright © 2013 Accenture All rights reserved. 15Store format is evolving in shopping environment• Stores role is changing since thecustomer is being connected24/7• Enhancing the experience fromself-service to assisted service• Various channels in store topurchase from handing a simple,written shopping list to salesassistants to shopping onlinewithin the store.• Reinforcing brand’s appealexposing brand relevant addedcontentCustomerplaces orderonlineCustomernotified oforder statusOrder isdelivered tothe storeCustomercollects orderat store
  16. 16. Copyright © 2013 Accenture All rights reserved. 16Business-Case: Argos full channel activation
  17. 17. Copyright © 2013 Accenture All rights reserved. 17Business-Case: House of Fraser omni-fashion
  18. 18. Copyright © 2013 Accenture All rights reserved. 18Shop assistantinteract withTabletCustomerreceive orderat homeCustomerCollects theorder in storeCustomer trackthe order withSmartphone• Empower store associates• Real-time order fulfillment andflexible returns• There is an increasedcollaboration with operationsacross channels• Rethink store processes,reconsider talent and managelabor differently.Store format is evolving in shopping environment
  19. 19. Copyright © 2013 Accenture All rights reserved. 19Business-Case: Nike-Fuel purchasing everywhere
  20. 20. Copyright © 2013 Accenture All rights reserved. 20Business-Case: Nike-Fuel purchasing everywhere
  21. 21. Copyright © 2013 Accenture All rights reserved. 21The evolution of the elastic supply chain• Make visibility and dynamicfulfillment mandatory• Emphasize returns managementproviding non-stop customer’spath to return is just as fluid asthe path to purchase• The management of inventoryshould be done forward,backward and sideways, in orderto have the best flexibility in thesupply chain
  22. 22. Copyright © 2013 Accenture All rights reserved. 22Business-Case: Celio* showrooming
  23. 23. Copyright © 2013 Accenture All rights reserved. 23Enhancement of customer experience on 360°Customer experienceteams could be locatedwithin marketing andinfluence merchants fromthereCustomer experienceteam could be fullyembedded inmerchandisingwith anequal voiceat the tableSeparate customer experiencefunction with individual team membersmatrixed into each merchant buyingTeam• Infuse Merchandising withcustomer advocacy• Customer insight groupembedded with Merchandising toincorporate insights at the pointand place of decision – eliminate“insight islands”• Trade product centricity offeringthe right price, assortment,promotion, AND customerexperience
  24. 24. Copyright © 2013 Accenture All rights reserved. 24Business-Case: Nasty Gal a merchandise-experience
  25. 25. Copyright © 2013 Accenture All rights reserved. 25Business-Case: Nasty Gal a merchandise-experience
  26. 26. Copyright © 2013 Accenture All rights reserved. 26Business-Case: Stories.com e-commerce curation
  27. 27. Copyright © 2013 Accenture All rights reserved. 27Business-Case: In-store Augmented Reality fashion
  28. 28. Copyright © 2013 Accenture All rights reserved. 28Business-Case: In-store Augmented Reality retail
  29. 29. Copyright © 2013 Accenture All rights reserved. 29Business-Case: Google Glasses
  30. 30. Copyright © 2013 Accenture All rights reserved. 30Retailers must change the game to remain relevant.They must become seamless themselves.
  31. 31. Copyright © 2012 Accenture All rights reserved. 31Omnichannel add a level of
  32. 32. Copyright © 2013 Accenture All rights reserved. 32Business strategy transformation in Omnichannel scenario
  33. 33. Copyright © 2013 Accenture All rights reserved. 33Business strategy transformation in Omnichannel scenarioHow to sell more andmore to ourcustomers?Which processes dowe have to implementto increase ourcustomer spending?How we can verify thesuccess of our onlinesales strategy?
  34. 34. Copyright © 2013 Accenture All rights reserved. 34Business strategy transformation in Omnichannel scenarioKPITargetActions
  35. 35. Copyright © 2013 Accenture All rights reserved. 35KPITargetActionsBusiness strategy transformation in Omnichannel scenario•Acquisition•Re-activation•ViralizationClick-throughrate?Visits volume
  36. 36. Copyright © 2013 Accenture All rights reserved. 36KPITargetActionsThe solution to E-commerce’s main issues•Offering•Promotions•Delivery•Customer-careConversionrate?Conversion•Acquisition•Re-activation•ViralizationClick-throughrate?Visits volume
  37. 37. Copyright © 2013 Accenture All rights reserved. 37The solution to E-commerce’s main issuesActions•Product mix•Category mix•thresholdTicketcomposition?Profitability•Offering•Promotions•Delivery•Customer-careConversionrate?Conversion•Acquisition•Re-activation•ViralizationClick-throughrate?Visits volume
  38. 38. Copyright © 2013 Accenture All rights reserved. 38The solution to E-commerce’s main issuesActions•Product mix•Category mix•thresholdTicketcomposition?Profitability•Info-commerce•R&C / P&P•In-store-comp.•SO.LO.MOR.O.P.O.rates?Channeling•Offering•Promotions•Delivery•Customer-careConversionrate?Conversion•Acquisition•Re-activation•ViralizationClick-throughrate?Visits volume
  39. 39. Copyright © 2013 Accenture All rights reserved. 39Omnichannel needs a new approachthat transforms the organizationfrom silos of technologies andprocess to a harmonic ecosystem.
  40. 40. Copyright © 2013 Accenture All rights reserved. 40Integrating operations for a customer conversationThe EnterpriseChannel OperationsMerchandisingMarketingSupply ChainStores Digital CustomerCenterServicesBusinessFoundationTechnologyFoundation…eliminate channel boundaries• Assortment and Pricing areintegrated across channels• Marketing presents a cohesive“brand” for the new non-stopcustomer experience• Ensure visibility and dynamicfulfillment where inventory ismanaged at enterprise level
  41. 41. Copyright © 2013 Accenture All rights reserved. 41Omnichannel redefine functions role and platformsCustomerPlanningPlanning WarehouseWarehouseWarehouseMarketingMarketingE-CommerceStorePlanishmentTillPSPCollectin storeHomedeliveryEach channel is driving the technology and the process definition.E-CommerceHeadquarterStore
  42. 42. Copyright © 2013 Accenture All rights reserved. 42CustomerE-CommerceHeadquarterStoreOmnichannel redefine functions role and platformsShared stockWarehousesMarketingE-CommerceStorePlanishmentTillPSPCollectin storeHomedeliveryPlanning MobileDropshipmentEach channel is driving the technology and the process definition.Omnichannel means integration of objectives, methods and platforms.OmnichannelShared stock
  43. 43. Copyright © 2013 Accenture All rights reserved. 43Salesvolume«Body»Product variety«Long Tail»Top seller Niche product with higer marginCross Channel Commercial ModelThe commercial strategy for an Omnichannel journey• To reach the business objectvieswe need to balance:• The top selling product thatdrive volumes• Niche products that preservemargins• To grant the success of aneCommerce project we need todesign a cross-channelstrategy to grant:• Turnover• Profitability
  44. 44. Copyright © 2013 Accenture All rights reserved. 44The commercial strategy for an Omnichannel journeyHistoricalDataOfflineBenchmarkOnlineBenchmarkMarketResearchSourcesAssortmentOptimisationPriceOptimisationSales ForecastingAssortmentDefinitionProfitabilityAnalysisRevision of theSetsPricemanagementRulesBase Price andMarginsFlexibilityAnalysisBaselineNormalisationForecast of theVolumes of theSalesPromotionalUpliftCalculationPromoOptimisationSimulationPromotional ROIDefinition of thePromotionalTacticPromotionalStrengthCapabilitiesOnlineSearchTrendCross Channel Commercial Model1 2 34• To reach the business objectvieswe need to balance:• The top selling product thatdrive volumes• Niche products that preservemargins• To grant the success of aneCommerce project we need todesign a cross-channelstrategy to grant:• Turnover• Profitability
  45. 45. Copyright © 2013 Accenture All rights reserved. 45Digital acquisition strategy• We can influence the visitor volumeusing different acquisitionchannels and performancestrategies.• The conversion rate is influencedby a mix of commercial and UXelements.• The average ticket is influenced byassortment strategies.• Customer reactivationis strategic
  46. 46. Copyright © 2013 Accenture All rights reserved. 46Digital acquisition strategy in an omnichannel environment• We can influence the visitor volumeusing different acquisitionchannels and performancestrategies.• The conversion rate is influencedby a mix of commercial and UXelements.• The average ticket is influenced byassortment strategies.• Customer reactivationis strategicClickThroughChannelingTrafficTurnoverCommercialLeversTransactionsOrganic LeadAwarenessInformationAcquisitionCustomerThrustUserExperienceReactivationConversionPhisical(store)Digital /Mobile
  47. 47. Copyright © 2013 Accenture All rights reserved. 47A new measurable omnichannel ecosystem• The omnichannel approach,enabled by technologicalplatforms, set with cross-functional process, permit tocreate more efficientcommercial strategy.• The Omnichannel ecosystemwill measure the relation betweenactions (operative cost) and theredemption (returns) singling-outthe duly profitability.ChannelsStoreR&COn-lineCategoryXCategoryYCategoryZUnsoldstockMobileQuality& ServiceAssortmentPriceProduct Deatil(newest & best)Service(eg: installation)CouponingPure Player price
  48. 48. Copyright © 2013 Accenture All rights reserved. 48A new measurable omnichannel ecosystemChannelsStoreR&COn-lineCategoryXCategoryYCategoryZUnsoldstockMobileQuality& ServiceAssortmentPriceProduct Deatil(newest & best)Service(eg: installation)CouponingPure Player priceCouponing to drivein storesI L L U S T R A T I V E• The omnichannel approach,enabled by technologicalplatforms, set with cross-functional process, permit tocreate more efficientcommercial strategy.• The Omnichannel ecosystemwill measure the relation betweenactions (operative cost) and theredemption (returns) singling-outthe duly profitability.
  49. 49. Copyright © 2013 Accenture All rights reserved. 49A new measurable omnichannel ecosystemChannelsStoreR&COn-lineCategoryXCategoryYCategoryZUnsoldstockMobileQuality& ServiceAssortmentPriceProduct Deatil(newest & best)Service(eg: installation)CouponingPure Player priceOutlet on-line • The omnichannel approach,enabled by technologicalplatforms, set with cross-functional process, permit tocreate more efficientcommercial strategy.• The Omnichannel ecosystemwill measure the relation betweenactions (operative cost) and theredemption (returns) singling-outthe duly profitability.I L L U S T R A T I V E
  50. 50. Copyright © 2013 Accenture All rights reserved. 50Leverage on commercial communication synergy2 weeks 2 weeks 2 weeksCommunication effectiveness through flyerCommunicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS)  • In an Omnichannel environment retailer could use a different approach toimprove the declining performance of the traditional strategies.• Digital marketing mix will influence all the target: customer traffic, conversion, andprofitability driving customer through the different channels in a measurable way.Flyer Flyer FlyerI L L U S T R A T I V E
  51. 51. Copyright © 2013 Accenture All rights reserved. 51Leverage on commercial communication synergy2 weeks 2 weeks 2 weeksCommunication effectiveness through flyerCommunicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS)PUSH ACTIVITIESMobile DigitalPUSH ACTIVITIESMobile DigitalPUSH ACTIVITIESMobile Digital  Flyer Flyer FlyerI L L U S T R A T I V E• In an Omnichannel environment retailer could use a different approach toimprove the declining performance of the traditional strategies.• Digital marketing mix will influence all the target: customer traffic, conversion, andprofitability driving customer through the different channels in a measurable way.
  52. 52. Copyright © 2013 Accenture All rights reserved. 52So what I need to do to become areal seamless omnichannelleading company?
  53. 53. Copyright © 2013 Accenture All rights reserved. 53The next five action to became seamless1. Omnichannel is not rocketscience2. Acknowledge the burningplatform3. Define customerexperiences strategy4. Identify digital andphysical relations5. Create a new measurableecosystem
  54. 54. Copyright © 2013 Accenture All rights reserved. 54Thank you !Federico GasparottoDigital Marketing Offering LeadAccenture InteractiveTel: +39-331-7550490@: federico.gasparotto@accenute.comBlog: www.gasparotto.bizIM: federico.gasparotto

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