Agility - Driving Multichannel Success

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Jason Simpson
From Multi-channel
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Agility - Driving Multichannel Success

  1. 1. Jason Simpson<br />From Multi-channel <br />to Omni-channel commerce<br />
  2. 2. Agenda<br /><ul><li>What’s happening in Multi-channel commerce? (in Europe & the US)
  3. 3. Technological advancement & changing consumer expectations
  4. 4. Omni-channel behaviour is shaping Multi-channel commerce
  5. 5. How channels interact: the role of print
  6. 6. Reaction to the shifting environment
  7. 7. Brand integrity = Multi-channel strategy
  8. 8. What to be ready for; how to be ready</li></li></ul><li>The world of Multi-channel commerce…<br /><ul><li>Technology is enabling new channels to market
  9. 9. Traditional model = physical stores with print driving footfall and/or mail order business
  10. 10. Today = new channels emerging every year
  11. 11. Proliferation of media
  12. 12. Marketing reach becoming harder
  13. 13. Consumers demanding purchasing flexibility and convenience</li></li></ul><li>Developments in e-commerce…<br /><ul><li> Now 1.6 billion internet users worldwide
  14. 14. UK e-commerce sales totalled £30bnin 2010
  15. 15. Accounts for7% of all retail sales
  16. 16. Sales predicted to grow to reach £50bn by 2015</li></ul>Source: Forrester<br />The ‘new now’:<br /><ul><li> Price comparison sites
  17. 17. Digital catalogues
  18. 18. iPhone/Android apps
  19. 19. iPad & other tablets
  20. 20. In-store kiosks
  21. 21. Social media</li></ul>South Africa = 5.3m<br />
  22. 22. Developments in mobile commerce…<br /><ul><li>UK mobile internet salesforecast todouble in the next 3 years to £275m
  23. 23. Accounts for 4% of online retail spending
  24. 24. Just 2.1% of UK‘s adult population currently shop via a smartphone, but nearly 80% of owners have used it to buy something!
  25. 25. But smartphone ownership is growing by c100% annually, driven by iPhone, Android and other comparable products</li></ul>(source: Verdict & Ovum Research)<br />
  26. 26. Developments in mobile commerce…<br /><ul><li>10% of European shoppers are using their mobiles for product searches, price comparison or purchasing
  27. 27. 20% plan to do so, according to a study of 1,500 people in the UK, France, Germany, Italy and Spain
  28. 28. The study also found that shoppers who used mobile in some part of the research and purchase process spent 15% to 30% more than those who used just one channel </li></ul>(source: IDC/Akamai)<br />80% of all web-page views in Japan are via mobile devices!<br />UK predicted to mirror this by 2014<br />Highly likely that developing nations will leapfrog to this stage<br />
  29. 29. Developments in mobile commerce…<br />Example<br />
  30. 30. Technology convergence<br /><ul><li>The ‘mash-up’
  31. 31. Integrating offline and online media
  32. 32. Quick Response (QR) Barcodes
  33. 33. Augmented Reality
  34. 34. RFID & NFC (Near Field Communication)
  35. 35. Mobile Apps</li></li></ul><li>The Omni-channel consumer<br />“The omni-channel shopper wants to use all channels – stores, catalogues, call centre, eCommerce and mobile – simultaneously, not each channel in parallel” <br />Hand and Parker (IDC)<br />Examples:<br /><ul><li>Price comparison websites, accessed from mobiles whilst in-store
  36. 36. Reserve/pay online, collect in-store</li></li></ul><li>The Omni-channel consumer…‘InfoLust’<br />‘Consumers are lusting after detailed information on where to get the best of the best, the cheapest of the cheapest, the first of the first, the healthiest of the healthiest, the coolest of the coolest, or on how to become the smartest of the smartest. Instant information gratification is upon us’ <br />(www.trendwatching.com)<br />
  37. 37. Omni-channel consumers are shaping <br /> Multi-channel commerce…<br />McKinsey research 2009<br />Clothing retail example<br />USD$ average customer spend per year<br />3 channels =<br />4.4 x higher than print alone<br />4.5 x higher than stores alone<br />5.6 x higher than web alone<br />
  38. 38. How does print fit into the Multi-channel mix?<br />What we thought we knew:<br /><ul><li>Shopping is heavily influenced by printed matter
  39. 39. The “shop in the home” works
  40. 40. Multi-channel is here & increasing revenue
  41. 41. The print catalogue is part of life in UK & US</li></li></ul><li>Who are Verdict Consulting?<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  42. 42. today's consumer<br />where we’re headed<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  43. 43. 1980sCarefreeconsumption<br />1990sCarelessconsumption<br />Late 2000sCarefulconsumption<br />2010sConsideredconsumption<br />Today’s consumer: the mindset shift<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  44. 44. Today’s consumer: considered consumption<br />Quantity<br />I buy lots of things: some I need, some I don’t…<br />Quality <br />I buy things I that I really want…<br />Product<br />It’s mainly about the product…<br />Holistic<br />It’s about the product and the background to the product…<br />Price<br />I want everyday low prices…<br />Value<br />I don’t mind paying for good things…<br />Impulse<br />I buy things without thinking about them…<br />Thoughtful<br />I buy things I like, but I think about what I am buying…<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  45. 45. B2C Research<br />For this research a catalogue is defined as:<br /><ul><li>A traditional mail order catalogue
  46. 46. A more modern catalogue or brochure
  47. 47. Lifestyle magazines from retailers in which the primary aim is promotion or selling (magalogue)
  48. 48. Retail inserts & circulars
  49. 49. Leaflets & postcards not included</li></ul>Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  50. 50. 1999<br />£9,503m<br />2009<br />£4,393m<br />The traditional view – a changing landscape<br />Size of traditional mail order catalogue market<br />?<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  51. 51. The modern scenario<br />Lost in a sea of cross-channel confusion<br />Telephone<br />Online<br />Stores<br />Cats, Mags, Inserts<br />Affiliates<br />Kiosks<br />C2C <br />Social networking<br />Mobile<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  52. 52. Perceptions have changed<br />The stigma’s <br />gone – they’re totally different now<br />They’ve changed, they’re a really nice read<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  53. 53. <br /><br /><br /><br /><br /><br /><br /><br /><br /><br />The influence of the catalogue today<br />20.8%<br />regularly use a catalogue to directly buy products<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  54. 54. The purchase decision process<br />Think<br />Research<br />Buy<br />Return<br />Physical<br />92.9%<br />84.2%<br />74.5%<br />83.5%<br />63.7%<br />Online<br />70.7%<br />69.1%<br />69.0%<br />66.3%<br />40.4%<br />Catalogue<br />53.9%<br />53.8%<br />86.1%<br />37.4%<br />53.8%<br />21.8%<br />9.5%<br />News/mags<br />32.2%<br />12.8%<br />5.7%<br />31.0%<br />31.0%<br />0.7%<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  55. 55. Omni-channel consumers are shaping <br /> Multi-channel commerce…<br />McKinsey research 2009<br />Clothing retail example<br />USD$ average customer spend per year<br />3 channels =<br />4.4 x higher than print alone<br />4.5 x higher than stores alone<br />5.6 x higher than web alone<br />
  56. 56. <br /><br /><br /><br /><br /><br /><br /><br /><br /><br />The influence of the catalogue today<br />53.9%<br />regularly use a catalogue in the purchase process<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  57. 57. The underlying reasons for usage<br />It’s nice to sit and relax – to sit on a sofa and flick through<br />36.4%<br />35.9%<br />30.4%<br />29.6%<br />I can see how the clothes will look on my children<br />21.7%<br />They’re good at product placement<br />Seeking<br />inspiration<br />Gathering<br />ideas<br />Browsing for<br />fun<br />Checking<br />product details<br />Comparing<br />prices<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  58. 58. The Multi-channel consumer<br />Catalogue to online<br />£215<br />Online<br />£369<br /><ul><li> 58% of online sales are driven by the catalogue</li></ul>Catalogues<br />£81<br />Online to store<br />£257<br />Stores<br />£2,079<br /><ul><li> 85% of catalogue sales are checked out online or in store</li></ul>Catalogue to store<br />£240<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  59. 59. The monetary value: sectors<br />Percentage of spend in each sector influenced by catalogues <br />74.7%<br />£31.0bn<br />73.2%<br />£15.9bn<br />69.4%<br />£8.6bn<br />67.4%<br />£8.5bn<br />63.5%<br />£6.8bn<br />53.9% baseline<br />54.8%<br />£9.5bn<br />45.2%<br />£4.5bn<br />43.0%<br />£1.4bn<br />14.6%<br />£18.1bn<br />Clothing<br />Electricals<br />DIY<br />Furniture<br />Homewares<br />Beauty<br />Books<br />Music/film<br />Food<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  60. 60. Where is print used and viewed?<br />Catalogue browsing<br />The charts below shows the percentage of people who browse catalogues in the various situations and locations.<br />At home<br />89.4%<br />At work 8.9%<br />While<br />traveling<br />9.1%<br />In store<br />24.8%<br />On holiday 3.0%<br />While<br />waiting<br />14.4%<br />At a <br />friend's<br />home<br />14.1%<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  61. 61. Catalogue dynamics – shop in the home<br />+<br />Average time spent browsing catalogues:<br />8 hours per month<br />Average household receives<br />2 catalogues each month<br />5% of households receive more than 5 catalogues each month <br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  62. 62. B2C research summary<br />Traditional views of the catalogue do not hold true<br />Catalogues are critical influencers, at the critical points<br />We live in an omnichannel world<br />Driving spend, through channels of choice<br />Private & Confidential, Copyright Pindar & Verdict Consulting 2010<br />
  63. 63. Further evidence<br />Why the catalogue is so important…<br />Of those, 80% found their purchase in a catalogue and then went online to order.<br />70% of those surveyed shopped from home last year.<br />Experian, 2009<br />
  64. 64. Further evidence<br /><ul><li>Digital ‘page-turning’ catalogue deliver enhanced sales</li></ul>B2C example launched last February:<br /><ul><li>3 x higher shopping basket values compared with website-only shoppers</li></ul>B2B example launched last February:<br /><ul><li>2 x higher shopping basket values compared with website-only shoppers</li></li></ul><li>How are retailers responding?<br /><ul><li> Retailers are embracing new channels in order to maintain mindshare
  65. 65. Focus in IT has been on logistics and ERP/CRM – single customer view</li></ul>But:<br />Consumers do not see channels, they see brands. Therefore, brand and service level consistency across all channels is important for maintaining customer loyalty. <br />Sharing product and customer data across channels is vital to achieving a consistent customer services and brand message. <br />A single, central repository is required to provide a single view of the data. But many retailers are still not managing important processes at a multichannel level. (DataMonitor, Sep 2009)<br />
  66. 66. The challenges associated with Multi-channel marketing<br />
  67. 67. TheMulti-channel challenge<br /><ul><li>Getting the rightinformation about the rightproduct to the rightcustomer through theirchannel(s) of choice
  68. 68. Ensuring consistency of product data & pricing
  69. 69. Duplicationof effort across channels
  70. 70. Speed to market slow due to complexity
  71. 71. Logistical/back-end issues such as:
  72. 72. Returns (buy online, return to store)
  73. 73. Stock availability across channels
  74. 74. Single customer view (channel agnostic)</li></li></ul><li> Web<br />Web<br />database<br />hand-<br />written<br />note<br /><XML><br />suppliers<br />Release<br />Release<br />Rlease<br />Release<br />Release<br />ERP/main<br />MFG<br />Author<br />Approve<br />Release<br />Analysis<br />Clean<br />Input<br />
  75. 75. Web<br />Web<br />database<br />hand-<br />written<br />note<br /><XML><br />suppliers<br />Release<br />Release<br />Release<br />Release<br />ERP/main<br />MFG<br />Author<br />Approve<br />Release<br />Analysis<br />Clean<br />Input<br />
  76. 76. Web<br />Web<br />database<br />hand-<br />written<br />note<br /><XML><br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />ERP/main<br />Release<br />Release<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />hand-<br />written<br />note<br />Author<br />Approve<br />Approve<br />Author<br />Release<br />Analysis<br />Release<br />Analysis<br />Clean<br />Input<br />Input<br />Clean<br />
  77. 77. Web<br />Web<br />database<br />hand-<br />written<br />note<br /><XML><br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />ERP/main<br />Release<br />Release<br />Flyers/circulars<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />Create<br />hand-<br />written<br />note<br />Author<br />Approve<br />Approve<br />Author<br />Approve<br />Author<br />Release<br />Analysis<br />Release<br />Release<br />Analysis<br />Analysis<br />Clean<br />Input<br />Input<br />Clean<br />Clean<br />
  78. 78. Web<br />Web<br />database<br />hand-<br />written<br />note<br /><XML><br />Tablets/phone<br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />ERP/main<br />Release<br />Release<br />Flyers/circulars<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />Create<br />hand-<br />written<br />note<br />Enrich<br />Approve<br />Author<br />Approve<br />Approve<br />Author<br />Approve<br />Author<br />Integrate<br />Release<br />Analysis<br />Release<br />Release<br />Release<br />Analysis<br />Analysis<br />Clean<br />Input<br />Input<br />Clean<br />Clean<br />Manually <br />embed<br />references<br />
  79. 79. Web<br />Web<br />database<br />hand-<br />written<br />note<br />Create<br />Create<br /><XML><br />Approve<br />Tablets/phone<br />Author<br />Author<br />Analysis<br />Release<br />Release<br />Release<br />Input<br />Input<br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Packaging/POS<br />ERP/main<br />Release<br />Release<br />Flyers/circulars<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />Create<br />hand-<br />written<br />note<br />Author<br />Approve<br />Approve<br />Author<br />Approve<br />Author<br />Enrich<br />Integrate<br />Approve<br />Release<br />Release<br />Release<br />Release<br />Analysis<br />Analysis<br />Clean<br />Input<br />Input<br />Clean<br />Clean<br />Manually <br />embed<br />references<br />
  80. 80. Web<br />Approve<br />Approve<br />Web<br />database<br /> Email<br />hand-<br />written<br />note<br />Create<br />Create<br /><XML><br />Approve<br />Tablets/phone<br />Author<br />Author<br />Analysis<br />Release<br />Release<br />Release<br />Input<br />Input<br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Packaging/POS<br />ERP/main<br />Release<br />Release<br />Flyers/circulars<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />Create<br />hand-<br />written<br />note<br />Author<br />Approve<br />Approve<br />Author<br />Approve<br />Author<br />Enrich<br />Integrate<br />Approve<br />Release<br />Release<br />Release<br />Release<br />Release<br />Analysis<br />Analysis<br />Author<br />Clean<br />Input<br />Input<br />Clean<br />Clean<br />Manually <br />embed<br />references<br />
  81. 81. Web<br />Approve<br />Approve<br />Web<br />database<br /> Email<br />hand-<br />written<br />note<br />Create<br />Create<br /><XML><br />Approve<br />Tablets/phone<br />Author<br />Author<br />Analysis<br />Release<br />Release<br />Release<br />Input<br />Input<br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Packaging/POS<br />Rest of company<br />ERP/main<br />Release<br />Release<br />Flyers/circulars<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />Create<br />hand-<br />written<br />note<br />Author<br />Approve<br />Approve<br />Author<br />Approve<br />Author<br />Enrich<br />Integrate<br />Approve<br />Release<br />Release<br />Release<br />Release<br />Release<br />Analysis<br />Analysis<br />Author<br />Clean<br />Input<br />Input<br />Clean<br />Clean<br />Manually <br />embed<br />references<br />Product Information Anarchy<br />
  82. 82. Web<br />Approve<br />Approve<br />Inefficient process due to:<br /><ul><li> Searching and gathering of images/data
  83. 83. Brand consistency checking
  84. 84. Repetitive operational tasks
  85. 85. Complex process and duplication
  86. 86. Copy proofing multiple times
  87. 87. Reformatting refreshed text
  88. 88. Inefficient language localisation process
  89. 89. Constant verifying
  90. 90. Re-checking legal information
  91. 91. Manual pricing and re-checking
  92. 92. Cumbersome approval process
  93. 93. Unproductive communication
  94. 94. Time sensitive re-work </li></ul>Etc, etc….<br />Web<br />database<br /> Email<br />hand-<br />written<br />note<br />Create<br />Create<br /><XML><br />Approve<br />Tablets/phone<br />Author<br />Author<br />Analysis<br />Release<br />Release<br />Release<br />Input<br />Input<br />suppliers<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Release<br />Packaging/POS<br />Rest of company<br />ERP/main<br />Release<br />Release<br />Flyers/circulars<br />Release<br />Release<br />MFG<br /><XML><br /> Catalog<br />Create<br />Create<br />hand-<br />written<br />note<br />Author<br />Approve<br />Approve<br />Author<br />Approve<br />Author<br />Enrich<br />Integrate<br />Approve<br />Release<br />Release<br />Release<br />Release<br />Release<br />Analysis<br />Analysis<br />Author<br />Clean<br />Input<br />Input<br />Clean<br />Clean<br />Manually <br />embed<br />references<br />
  95. 95. Web<br />Email<br />Tablets/phone<br />Release<br />suppliers<br />Packaging/POS<br />PIM <br />Solution<br />Rest of company<br />ERP/main<br />Flyers/circulars<br />Catalog<br />
  96. 96. The benefits of Agility multichannel publishing<br /><ul><li>Create consistent product promotions for web, print and in-store marketing
  97. 97. Publish content to websites within hours of product creation and convert your business to ‘web first’ publishing
  98. 98. Reduce production times for printed promotions by up to 75%
  99. 99. Free up designers time to use their creative minds and design more pages
  100. 100. Reduce the number of errors and review cycles by up to 90%
  101. 101. Do more marketing, with the same resources (or less)
  102. 102. Turn your product information into a strategic asset:</li></ul> > Be ready to exploit emerging channels <br /> > Speed to market = competitive advantage<br />
  103. 103. The challenge is recognised<br />
  104. 104. PIM is a crucial foundation<br />Retail Systems Research May 2010<br />Retailers asked to comment on which business initiatives hadthegreatest positive impact in improving customer satisfaction across all channels<br />Ensuring product information and pricing is up to date and consistent across channels<br />Enabling cross-channel fulfillment<br />Cross selling and personalized promotions<br />Synchronizing customer and inventory information across channels<br />Same day shipping & simple, consistent returns<br />Information sharing with merchandise vendors on product features and availability<br />Enabling real time views of cross-channel inventory<br />
  105. 105. The purchase decision process<br />=<br />=<br />
  106. 106. Driving multichannel success…<br />+<br />=<br />(Multichannel <br />Success)<br />

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