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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
© 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
• PAID SEARCH
• SEO
• DISPLAY
• MOBILE (NOTIFICATION/SMS)
• 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…
© 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. 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. 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. 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