The document discusses identifying the role of online channels within a multichannel strategy. It recommends a three step process: 1) Understand customers, their missions and needs; 2) Understand channel strengths and weaknesses; 3) Blend understanding to create a customer-focused strategy. The role of online needs consideration as part of understanding channels and applying value at the right touchpoints for customers during their purchase journeys. Charts show how customer purchase selections vary across and within categories online.

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Identifying the role of ‘online’
within a multichannel strategy
MARK WALKER
Senior Client Director, dot.com
dunnhumby

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What will I cover today?
● Customer paths to purchase and missions
● The use of insight to place customers at the heart of your strategy
● A way to consider the role of channels, particularly online, within
your plan
● How to bring it all together to create an effective customer led
strategy

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Last year, we spoke about how shoppers make product
selections online

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Relative index of products by
purchase selection method
0
50
100
150
200
250
Decaf Standard Tea Bag Speciality Tea Bags Speciality Tea
Favourites Search Department
We see that online purchase paths vary across and
within categories

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How do we apply this knowledge to identify the role of
online within a multichannel strategy?
It starts with remembering that customers are on
missions - and simple ones at that.

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Customers don’t typically carry out their missions through
neat, easily defined, channels…
…but in a way that suits them, creating touch points and experiences along the way.

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To customers, these are individual and highly relevant
missions and experiences, so how do you join it up?
My tips &
information
My
promotionsMy
offers
My
games
My
advertising
My
search
My
inspirations
My
usuals
My
prices
My
recipes
My recom-
mendations

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What are their
missions?
What behaviours are they
showing?
What problems and
issues do they face?
What are their needs
within your brand or
product space?
Step 1: understand and segment your customers
irrespective of the channels they use

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Insight led performance benchmarks and
objectives for customer segments
Clarity on what value your brand or products
can deliver to customers and where
The right customer segment priorities
Enabling you to set clear,
strategic, customer objectives
This will give you:

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Step 2: understand customer behavior within and
between channels, and the handoff between them
DIGITAL
MARKETING
MOBILE
CLICK ‘N’
COLLECT
STORE
WEBSITE
CATALOGUE

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Strategic opportunities can be mapped against channel
strengths and weaknesses using a simple audit

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RETAIL
ENGAGEMENT
• Ability to create theatre
• Ease of product
merchandising
BRAND AND
PRODUCT
• NPD
• Value positioning
• Brand content
RETAILER
CAPABILITY
• Technical constraints
• Strategic direction
• Customer base
CUSTOMERS
• Missions
• Under-performing
segments
• Barriers to purchase
PROMOTIONAL
ACTIVITY
• Participation drivers
• Mechanics vs channel
• Seasonal events
CURRENT
TECHNOLOGY
• Mobile/ Apps
• Responsive design
• Store design
FUTURE
TECHNOLOGY
• Chat bots
• VR/ AR
• Smart home tech
COMPETITOR
CAPABILITY
• Channel competency
• Brand and trade
messaging
Strategic opportunities can be also be viewed within
the audit from a variety of perspectives

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Step 3: blend your understanding to bring your
multichannel plan together
Robust customer segment
benchmarks and monitoring,
driven by insight
A focused brand and
product strategy including
great, consistent, content
Understanding of the strengths
& weaknesses of the channels
in delivering customer value
Clear view of customer
segments and issues they face
on their missions

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This allows you to apply value at the right touch points
during customers’ purchase paths

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The role of online needs careful consideration
as part of a multichannel strategy:
1. UNDERSTAND YOUR CUSTOMERS,
their missions and needs
2. UNDERSTAND YOUR CHANNEL
strengths and weaknesses
3. BLEND YOUR UNDERSTANDING to
create a customer focused strategy
In summary:

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MARK WALKER
mark.walker@dunnhumby.com
Thank You