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More than a buzz word or a trend. Omni-Channel retail is a real opportunity for businesses to adapt, scale-up and tap into their potential customer universe. A simple overview of the changing (R)etail landscape, consumer, purchase trends and what businesses need to align to go the Omni-channel way.
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Omni Channel: The (R)etail EvolutionW h a t ?
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Omni-channel means our stores, website and mobile devices are all working in unison- and seamlessly behind the scenes – to the benefit of the customer.
We are driving the customer online and online customers into the stores. We are using mobile to feed both stores and online.
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- Macy’s Inc.
However….
Omni Channel: The (R)etail EvolutionW h a t ?
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Omni-channel is to create aseamless unified experience across ALL physical & digital channels.
The Goal: to becomeDevice, Channel & Location agnostic
Omni-Channel is just Multi-Channel/Cross-channel !NOT
Omni Channel: The (R)etail EvolutionW h a t ?
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TraditionalE-
Commerce
Multi-Channel
Omni-Channel
The Business model evolution
Customers shop at brick & mortar stores
Customers shop online throughe-commerce websites
Customers shop via multiple channels: retail stores & online
Customers engage anywhere via integrated, seamless experiences
There is a clear trend in many industries toward the use ofmulti-channel approaches to engaging with customers.
But in focusing on multi-channel, companies may be overlookinga more fundamental need—for a seamless, omni-channel
approachthat provides a single, unified experience for the customer
across all channels. #
#Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
Omni Channel: The (R)etail EvolutionW h y ?
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Because Consumers Shop…
ANYTIME
ANYWHERE
ANY DEVICE
Omni Channel: The (R)etail EvolutionW h y ?
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Omni Channel: The (R)etail EvolutionW h y ?
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Browse offline Buy OnlineConsumers are diversifying the way they shop for and acquire goods, becoming increasingly open to buying both online and in-store depending on their needs at time of purchase.
A significant number of shoppers who intend to buy their item in the store, ultimately purchase online – primarily due to price and convenience.
“Showrooming”
Today’s consumer is sophisticated and opportunistic, navigating between store & online environments interchangeably to meet their shopping needs of the moment.- Jill Puleri, Global Retail Leader
(IBM Global Business Services)
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Image credits & Source: IBM Institute for Business Value survey
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Understanding Cross-PlatformConsumer Behavior• A large number of active
consumer are multi-screeners. Most of consumers’ time is spent in front of a screen – computer, smartphone, tablet and TV
• The device we choose to use is often driven by our context: where we are, what we want to accomplish and the amount of time needed
• Smartphones are the backbone of our daily media interactions. They have the highest number of user interactions per day and serve as the most common stating point for activities across multiple screens
The NewMulti-Screen World
Image credits & Source: Google Report ‘The New Multi-Screen World’
Omni Channel: The (R)etail Evolution
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Consumer Touch points
Consumers are already sourcing information in multiple ways- brands need to ensure that they are present where the consumers are looking…
W h y ?
Omni Channel: The (R)etail EvolutionW h y ?
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Lines between offline & online shopping experiences are blurringOnline & offline shopping experiences coexist - across pricing, functionality, and promotions
• Research, View, Purchase: The shopper's journey looks less like a funnel and more like a flight map.
• People are shopping smarter: Shoppers are using online & showrooming to make an informed purchase.
• Trusted connections are coming online: Connections are happening both online and offline. People are sharing their opinion on products not just with a group of friends, but with millions of people.
‘Seamless’ Shopping
Image credits & Source: Google & Ipsos Holiday Shopping Intentions Study
The Path to purchase will have many touch points
Omni Channel: The (R)etail EvolutionW h y ?
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The New, Non-Linear Purchase Journey
Image credits & Source: Retail touch points exposed (Slideshare presentation)
Awareness
Omni Channel: The (R)etail EvolutionW h y ?
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The New, Non-Linear Purchase Journey
Image credits & Source: Retail touch points exposed (Slideshare presentation)
Awareness
Consideration
Omni Channel: The (R)etail EvolutionW h y ?
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The New, Non-Linear Purchase Journey
Image credits & Source: Retail touch points exposed (Slideshare presentation)
Awareness
Consideration
Purchase
Omni Channel: The (R)etail EvolutionW h y ?
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The New, Non-Linear Purchase Journey
• The customer’s journey is now DYNAMIC:A non-linear path to purchase as consumers enter and exit relationships with brands via much less predictable points, or as they circle back to choices made previously.
• The journey is more INFLUENCED:More content than ever is being put in front of customers, It is available anytime and anywhere, and it can come from or through anyone.
• The journey is CONTINUOUS:The touch points consumers are exposed to are “always on.” Evaluation/discovery & not necessarily purchase is the focal point.
Consumers’ journey has fundamentally changed in3 significant dimensions:
Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
Omni Channel: The (R)etail EvolutionConsumer
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Old Consumers vs. New Consumers
Lowest Price
Waiting for solutions
‘What’s in it for me?’
Seeking more ‘stuff’
Trusts marketing messages ‘on the box’
Passive recipient of brand
communications
Total Value
Demanding solutions
‘What’s in it for me?’
Seeking meaningful Experiences
Looks at ingredients/information ‘on the back of the box’
Active co-creators of brand content, products & experiences
The new consumer is a value-aspirational, practical purchaser. They purchase with a purpose but are unwilling to make practical trade-offs especially in a touch economy.
Image credits & Source: iqmetrix.com
Omni Channel: The (R)etail EvolutionConsumer
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Who is the New-Age Consumer?
Omni Channel: The (R)etail EvolutionConsumer
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Customers are becoming more complex:
Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
• MORE KNOWLEDGEABLE thanks to Internet accessibility and online consumer-created content and social networks.
• MORE DEMANDING due to customers’ redefinition of what value means to them. For example, time-compressed consumers are increasingly prioritizing convenience.
• MORE EMPOWERED, consumers follow their unique requirements and increasingly pursue self-service and multi- channel options.
• MORE COLLABORATIVE, increasingly bring their own devices, apps and other tools from outside the ecosystem of the service provider, and thus increasingly determine not just what services they wish to consume, but exactly how they wish to consume those services.
• MORE INTERACTIVE, as consumers actively engage in online dialogue and content sharing and produce their own content for personal use and online publishing.
• INCREASINGLY ON THE MOVE, thanks to new capabilitiesfor mobile purchase and consumption of content and services anytime, anywhere.
Omni Channel: The (R)etail EvolutionTheir Needs
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The 4 C’s of Consumer needs
CONNECTIONSConsumers expect to connect with brands anytime, anywhere... especially on their smartphones & handheld devices.
CHOICE Today's consumers are not limited by what they can find in a store, or even the goods they find in their own country. They want selection and they want online, mobile and in-store availability.
CONVENIENCETime-starved consumers are expecting the convenience of shopping online or in store, but also the convenience of ship to home, pickup in store, or even pickup at another convenient location.
CONVERSATIONConsumers likely begin their journey on social media looking for conversation, and most importantly look for recommendations. But, it goes beyond search. Consumers are looking for conversation and connection with brands they value."
Omni Channel: The (R)etail EvolutionTheir Needs
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Customers have…Higher Expectations, More Power and Choice
Brands have to…Be engaged in their eco-system
Community + Influence (vs.) Push + Control
Be at a channel of choiceAnywhere, Anytime, Increasingly Self-serve
Be relevantRelevance + Dialogue = Influence on Choice
Omni Channel: The (R)etail Evolution
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Customer Expectations from Brands
Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
Their Needs
KNOW ME Personalized Interactions
“...Recognizes me, my existing subscription; Service & Interaction history with the brand.”
“...Acknowledges and tailors my interactions based on recent actions across channels.”
SHOW ME YOU KNOW ME Targeted Promotions
“...Personalizes offers and target products and promotions at a price that’s right for me given my likes.”
“...Helps me comprehend the benefits in easy-to-understand language tailored to my profile/account type, context and knowledge level.”
Omni Channel: The (R)etail Evolution
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Customer Expectations from Brands
Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’
Their Needs
ENABLE ME In Social, Mobile & Retail Channels
“...Makes physical/online shopping and interacting with the brand convenient and hassle-free using my preferred channel.”
“...Allows me to express myself and share my insights, opinions and recommendations.”
“...Equips me with resources that help me validate my choices and provides me with insightful advice on a complete solution for me.”
VALUE ME I want control of my purchase process
“...Grants me complete flexibility to configure my product/service& payment options in a manner that yields maximum value for me.”
“...Rewards me for my loyalty and depth of relationship and the degree of influence I wield on others’ purchases.”
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Omni Channel: The (R)etail Evolution
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Omni-Channel Challenges
INNOVATIONInnovation is at the heart of Omni-channel. (R)etail is becoming a melting pot of competition & only the fittest and agile will survive. Innovation can be addressed through simple, meaningful solutions to the basic question: ‘How can we meet & surpass customer needs?’ The solution while addressing this question has to be unique, differentiated and easy for the customer to opt-in.
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H o w ?
Transforming a tired multi-channel retailer into Omni-channel operations requires the business to face up to the following challenges:
CHALLENGE
2 TECHNOLOGYCentral technology applications will be needed across the enterprise to create a unified customer experience. ERP systems need to be capable of integrating with the web, mobile, social and store channels. Third parties need to be tightly integrated with companies at a technology and business level.
CHALLENGE
Omni Channel: The (R)etail Evolution
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Omni-Channel Challenges
CUSTOMER JOURNEYThe customer’s ‘discovery’, purchase and review/feedback journey is very vital to any brand. Mapping these touch points to the most appropriate channels enables businesses to create the right functionality. Once the primary purpose of a channel is known, it can be then optimized for that purpose.
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H o w ?
CHALLENGE
4 SETTING THE PACETo implement an omni-channel business requires a commitment to action and change. Right from systems to people, processes and training and people: every aspect needs to be aligned to create the desired experience. Each change will take time but will require the right pace:not too fast to accelerate into lapses & not too slow to miss the opportunity to scale.
CHALLENGE
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4 Key factors for Omni-Channel retailing
Source: Retail the Consumer Way (Infographic)
CENTRALIZE Company & Customer DATA• Connect all channels with consistent customer
and product information
• Relevant & targeted promotions and communication across channels; Ensure uniform pricing
• Harness easy-to-use business intelligence tools that allows data analysis across parameters to derive insights
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H o w ?
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Powered by technology, analytics, mobility and flexible marketing operations, Omni-Channel offers a tremendous
growth opportunity for companies that can out-innovate and out-execute their ever-expanding list of competitors. And they can
do so by integrating across all functions, products and services, and ultimately, by providing personalized customer interactions
across all channels.
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4 Key factors for Omni-Channel retailing
Source: Retail the Consumer Way (Infographic)
Support every CHANNEL your customers use
• Be ready to change & adapt with customers as buying process channels continue to develop & evolve
• Give customers accurate inventory information as well as choices for alerts, backorders and reorders
• Provide customers an easy, positive shopping experience: on their mobile device, online and in the store…every time
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H o w ?
For brands/services to provide a truly ‘effective’ Omni-channel experience, they have to allow customers the option to purchase on their own terms –Browsing, Ordering, Delivery & Returns to be enabled both Online and in the Store. Omni-channel should support every combination.1
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4 Key factors for Omni-Channel retailing
Source: Retail the Consumer Way (Infographic)
Efficiency & control over INVENTORY• Give sales teams visibility & real-time visibility of
stock quantities & allocation/location
• Automate reorder alerts to meet the demand for fast-moving products from across channels
• Ship from closest location- whether store or warehouse or vendor- to handle pickups & restock efficiently
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H o w ?
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3 Responsive & flexible ORDER MANAGEMENT• Support flexible procurement & shipment to
fulfill orders and deliver promptly
• Give customers a wide range of payment & shipping options
• Offer full range of shipping and pick up options, whether order is placed online or in store.
We are now as much a media company as we are a design company
because it is all a part of the overall experience- Christopher BaileyCreative Director, Burberry
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