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Transformative Omnichannel Strategies for Manufacturing Industry Gary Jones & Krupa Singampalli Solution Management, Customer Engagement and Commerce

Estrategias para la Transformación Omnicanal

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Transformative Omnichannel Strategies for

Manufacturing Industry Gary Jones & Krupa Singampalli

Solution Management, Customer Engagement and Commerce

© 2011 SAP AG. All rights reserved. 2

Agenda

The Omnichannel Mandate

Trends & Driving Forces

Concrete Business Benefits

Q&A

The OmniChannel Mandate Why does it matter?

© 2011 SAP AG. All rights reserved. 4

WHAT IS THE OMNI CHANNEL MANADATE?

IT IS CUSTOMER ENGAGEMENT AND COMMERCE.

REAL-TIME CUSTOMER INSIGHT, END-TO-END BUSINESS PROCESS EXECUTION, AND HARMONIZED DIGITAL AND PHYSICAL EXPERIENCES THAT………

ENABLE COMPANIES TO DELIVER CONTEXTUAL, CONSISTENT, AND RELEVANT EXPERIENCES REGARDLESS OF CHANNEL OR DEVICE THROUGHOUT THEIR CUSTOMER JOURNEY, IN REAL-TIME.

© 2011 SAP AG. All rights reserved. 5

Customers Are Empowered

Digitally Connected

79% of customers spend at least 50% of total shopping time researching

products online.

Socially Networked

53% of customers abandoned an in-store purchase due to negative online

sentiment.

Better Informed

59% of customers are willing to try a new brand to get better customer

service.

© 2011 SAP AG. All rights reserved. 6

Complex Customer Journey

DISCOVER

SEARCH

RESEARCH

GET HELP

COMPARE

PERSONALIZE

SHARE EVANGELIZE

USE

TRUST

FRIEND

DECIDE PURCHASE

• INTERACTIVE

• E-MAIL

• PAID SEARCH

• SEO

• DISPLAY

• MOBILE (NOTIFICATION/SMS)

• PRINT

• WEB

• COMPANY WEBSITE

• MOBILE

• BRANCH/STORE

• CALL CENTER

• SOCIAL

© 2011 SAP AG. All rights reserved. 7

The Customer Experience

“Eighty-five percent (85%) of customers said they would be willing to pay

more over the standard price in order to ensure a superior customer

experience.

SOURCE: “Customer Experience Report NORTH AMERICA 2010,” Harris Interactive on behalf of RightNow Technologies

55%

10% or more

27%

15% or more

18%

20% or more 25% or more

76%

5% or more

10%

© 2011 SAP AG. All rights reserved. 8

The OmniChannel Business Impact

Customer Experience Leaders Outperform The Laggards

In Average 5 Year Stock Performance

+22% -46%

The Opportunity: Business Benefits From The Leaders

+22% - 46%

+9% CUSTOMER EXPERIENCE LEADERS OUT PERFORM THE LAGGARDS In the last 5 years Customer experience leaders stock value grew 22% compared to average

REVENUES FROM CUSTOMER EXPERIENCE LEADERS Leaders report an higher sales achievement (% of target) with analytics readily available to optimize customer interaction

x5.8 CUSTOMER SATISFACTION COMPARED TO PEERS More analytical companies increase significantly customer satisfaction index when consumer journey is optimized

+15% LOYALTY INCREASE WHEN ADVANCED ANALYTICS APPLIED Higher consumer loyalty when analytics are applied to optimize consumer relationships

© 2014 SAP SE or an SAP affiliate company. All rights reserved. Source: McKinsey 2013 10

© 2011 SAP AG. All rights reserved. 10

A STRATEGIC SHIFT HAPPENING WITHIN THE ENTERPRISE. OMNICHANNEL & DIGITAL ARE A KEY FOCUS OF ENTERPRISE INVESTMENT PRIORITIES:

A Call Center solution 27%

Integration to social network tools and sites 28%

A more modern POS platform 41%

A more modern eCommerce platform 43%

A mobile commerce platform Center solution 51%

Enterprise-wide marketing/promotions platform 51%

Enterprise content management 58%

Distributed order management 59%

Enterprise-wide customer insights 65%

A single customer interaction

platform across channels 66%

Enterprise cross-channel analytics 68%

Enterprise-wide

inventory visibility 84% Enterprise-wide

customer visibility 73%

© 2011 SAP AG. All rights reserved. 11

Customer Engagement and Commerce – Solution &

Platform View

API

web contact

center

digital

goods social mobile print

In store/

branch IoT marketplace

sms/

notifications

Search

kw/ads email

@

digital ads agent

tools

Customer Data Management and Insights

HANA, Infrastructure, Integration

CEC Foundation – HANA/yaaS Cloud Platform

COMMERCE Omnichannel Commerce

Shopping Carts, Orders, Wish

Lists

Search and Merchandising

MARKETING Optimized Marketing

Customer Engagement

Management

Big Data Insights for

Marketing

SERVICE Customer Engagement Center

Self Service

Field Service

SALES Sales Force Automation

Sales Performance

Management

Quote and Order

Customer Experience Management (CxM) | Web Content Management (WCMS)

Subscription Billing

Customer Service

Order Management

Product Information and Content Pricing and Promotions

And more…

The B2B Transformation What is driving the change?

© 2011 SAP AG. All rights reserved. 13

Innovation shifting the B2B Commerce Space

Digitally Enabled Sales

Processes

Omnichannel B2B

Rising Innovation Gap

B2C Best Practices

in B2B

Costs of Challenges

w/ Existing

Technology

Scale & Complexity

Increasing

New Market

Pressures

Tighter Integration

with Business

Partners

Changing Buyer

Behaviors

Consumerization of

B2B New Business

Models

Maturing

eCommerce

Operations

Globalization

Internet of Things

Mobility

Changing Workforce

& BYOD

Business

Diversification &

Acquisitions

© 2011 SAP AG. All rights reserved. 14

© 2011 SAP AG. All rights reserved. 15

B2B Buyer Expectations

Source: B2B Buyer Expectations Are Driving Sellers To Deliver Fully

Functional Omni-channel Experiences Forrester November 2014

52% Expect to purchase > 1/2 online in 3 years

67% Expect Omni-Channel Capability

© 2011 SAP AG. All rights reserved. 16

Consumerization of B2B: B2C Methods

iPad App

Search & Navigation

Merchandising

© 2011 SAP AG. All rights reserved. 17

Recommendations

Forums Click to Call

Ratings & Reviews

© 2011 SAP AG. All rights reserved. 18

Auto re-order

© 2011 SAP AG. All rights reserved. 19

Build and quote

Dealer closes sale on iPad

© 2011 SAP AG. All rights reserved. 20

B2B Customers Want Self-Service Tools In Order To Get

Customer Service Online And On Mobile

Base: 353 online B2B companies around the world

Research Purchase Customer Support

• 62% of customers

want self-service

tools to research

online (vs. 10%)

• 53% of customers

want self-service

tools to research via

a smartphone

• 62% of customers

want self-service

tools to buy online

• 51% of customers

want self-service

tools to buy via a

smartphone

• 58% of customers want

self-service tools to get

customer service online

(vs. 13%)

• 52% of customers want

self-service tools to get

customer service via a

smartphone

Forrester & hybris 2013

© 2011 SAP AG. All rights reserved. 21

Significance for companies looking to transform

© 2011 SAP AG. All rights reserved. 22

Real Business Benefits

Based on hybris annual customer survey.

Reduced

Operating

Expenses

Increased

Order

Accuracy

Improved

Revenue

Generation

Streamlined

Business

Operations

Greater

Value

Delivery

Market

Leadership

© 2011 SAP AG. All rights reserved. 23

Better Customer Experience Management

Based on hybris annual customer survey.

Better Process and Data Management

Thank You!