Building a Successful Omnichannel Strategy for Physical Stores

© 2016 Openbravo Inc. All Rights Reserved. 1
Building a Successful Omnichannel Strategy for
Physical Stores
July 21st, 2016

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Today’s Presenter
Geoff Nairn
Enterprise Solutions Specialist
@ Openbravo

!  Introduction
!  What is Omnichannel
!  Physical stores still
matter
!  Key Takeaways
!  Q&A
Agenda and Goals

"  Customers now expect a much more
interactive, intimate and connected
shopping experience whether instore or
online.
"  There are many more touchpoints, which
gives many more opportunities for brands
to interact.
The Transformation of Retailing

The Omnichannel Shopper
▪  Convenience, to
buy, pay, receive
and return how
they prefer
▪  Speed, to receive
ordered products
or information
▪  Personalization, on
each interaction
with the brand
21%
more
profitable
Source: PwC
Source: EKN Research

E-commerce Boom Continues
!"
% change
% of total retail sales
Retail E-commerce Sales Worldwide
Source: emarketeer
Trillions dollars

Times Change
In 2015, online shoppers in the US
spent $3.07bn on Cyber Monday,
16% up on 2014.
Source: ;Adobe DigitalIndex
Yesterday Today

53%
25%
12%
62%
17%
9%
46%
21%
10%
55%
17%
8%
in store PC mobile device
Preferred Purchase Method
Apparel & footwear
Furniture & homeware
Sports equipment
DIY
The Continuing Importance of the Physical Store
Source: PwC

Online-Only Retailers Going Physical

#  82 percent of millennials prefer bricks and mortar stores
#  Millennials can be very loyal if actively engaged as valuable customers
Engaging the Millennials
#  68 percent of millennials demand an integrated, seamless
experience regardless of the channel

Generation Z Shoppers
•  80% of teens say free shipping and delivery is important
•  77% want special sales or discounts
•  50% prefer a flexible return policy
•  38% try to use rewards when they shop
•  29% join frequent shopperSource: E&Y

#  Convenience and
proximity
#  Efficiency
#  Inspiration
#  Instant gratification
#  Discovery
#  Entertainment and
social interaction
#  Experiencing brands
and products
Strengths of Bricks-and-mortar stores
Source:McKinsey

Traditional bricks
and mortar stores E-tailers
Multichannel
retailers Omnichannel
Putting the Customer at the Center
Source:Deloitte

The Retail IT landscape is constantly evolving and customers
are increasingly demanding experimental experiences. Some
of the benefits of having physical stores and related to the
concept of providing a seamless cross-channel shopping are:
Create a more emotional connection by appealing to the five
human senses, and that’s possible with face-to-face service
• Physical stores act as distributed
fulfillment centers,
$ serve online orders from stores
$ So retailers are embracing ship-from-
store more than ever before
$ service same day delivery at low cost
• Offer click-and-collect
• Increase up-selling opportunities
Benefits of Physical Stores

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Adoption of In-store Omnichannel Capabilities
Source: EKN

BusinessImpact
Ease of Implementation
Associate
Ordering
In-Store
Pickup
Ship from
Store
Three key In-store Omnichannel Capabilities

Ship-from-Store Benefits
Source:Teradata
For the Customer
#  Expanded product assortment
#  Fewer out of stock / back order scenarios
#  Fast delivery (expectation of 80% within 1
day; 96% within 2 days)
#  Products “always available” when
desired
For the Retailer
#  10-40% incremental e-commerce
revenue
#  Increase inventory sell through
#  Decrease markdowns
#  Optimize store assets and labor
10-20%
Revenue
uplift

Buy-Online-Pickup-in-Store Benefits
Source:Teradata
For the Customer
#  Convenience of online shopping
#  Same day pickup
#  No shipping costs
For the Retailer
#  37% purchase additional products while
picking up in-store
#  Leverage store assets
#  Increase foot traffic and upsell opportunity
#  Demonstrate unique and differentiated
guest experience
37%
Purchase
additional
products

Excel at Customer Service
!  Train your employees so they become
real “ninjas”
!  And empower them with the best
technology
!  So they deliver the best possible
customer service

Inventory Visibility in Openbravo
In-store stock information
and in other stores

Assisted Sale in Openbravo
Information to
associates about
applicable
discounts and
promotions.
Search by product
characteristics.
Information about
complementary
products and best
sellers.

Up and Cross-Selling with Openbravo

Mobile is now Central to Omnichannel
!  Consumers use mobile
devices as an integral
part of the shopping
journey !
!  Equipping sales
associates with in-store
mobile devices is a
prerequisite for a
successful omnichannel
strategy

■ Ensure product data quality and
consistency across all assisted and non-
assisted sales channels with centralized
management of all your products,
prices and promotions.
■ Provide accurate inventory
information regardless of the channel
and gain single view of customer
activity across channels.
■ Integrate seamlessly with the e-
commerce platform of your choice or
leverage existing connectors with
solutions like Magento or Prestashop.
■ Prepare your stores to become
multichannel hubs and benefit
from new opportunities like in-store
fulfillment.
Openbravo offers Omnichannel Readiness

Reimagining Retail
The experience of being in a store could become
the most important product a retailer sells.

Key Takeaways
▪  Omnichannel customers are more valuable but
demand higher speed, convenience and
personalization
▪  Customers now expect retailers to offer
Omnichannel capabilities such as Buy Online, Pick
up in-Store or In-store Fulfillment
▪  Product information needs to be consistent across
channels and leveraged to personalize
assortments by channel and customer profiles
▪  You need enterprise-wide inventory visibility
▪  Choose technologies that help you evolve to
omnichannel at your own pace

Any Questions?
You can submit additional questions or
comments after the webinar on Twitter.
Hashtag: #obravowebinar
#obravowebinar

Web: www.openbravo.com/contact
Email: info@openbravo.com
Spain Office: +34 932 725 947
France Office: +33 (0)1 70 08 73 62
India Office: +91 33 4004 7358
Mexico Office: +52 559171 1841
Thank you very much
for your attention

Building a Successful Omnichannel Strategy for Physical Stores

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