solving omni-channel transformation with customer centricity
TRANSCRIPT
Solving Omni-Channel Transformation with Customer Centricity
eCommerce Brazil 2015
Lisa Butler Vice President, Enterprise Solutions Enablement eBay Enterprise + Magento
Global Trends
Total Retail Sales Total retail sales worldwide, 2013-2018, in trillions and % change
Note: excludes travel and event tickets | Source: eMarketer, Dec 2014, 22 countries
2013
Total retail sales
2014 2015 2016 2017 2018
$21.189 $22.492
$23.927 $25.366
$26.827 $28.300
6.4% 6.1%
6.4% 6.0% 5.8% 5.5%
% Change
eCommerce Retail Sales Retail eCommerce sales worldwide, 2013-2018, in trillions, % change and % of total retail sales
Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets | Source: eMarketer, Dec 2014
2013
Total retail sales % Change
2014 2015 2016 2017 2018
$21.189 $22.492
$23.927 $25.366
$26.827 $28.300
25.9%
22.2% 20.9% 18.6% 16.4%
13.3%
% of total ecommerce retail sales
5.1% 5.9% 6.7% 7.4% 8.2%
8.8%
Retail Sales Worldwide Top 10 countries, ranked by retail eCommerce sales worldwide, 2016-2018, in billions and % change
China*
2016
US** UK** Japan Germany
2017 2018
Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets; *excludes Hong Kong; **forecast from Sep 2014 | Source: eMarketer, Dec 2014
% Change
$714
.58
27.0
%
$871
.79
22.0
%
$1,0
11.2
8 16
.0%
$394
.43
13.0
%
$442
.55
12.2
%
$493
.89
11.6
%
$104
.22
11.0
%
$114
.64
10.0
%
$124
.96
9.0%
$88.
06
11.0
%
$96.
87
10.0
%
$106
.07
9.5%
$82.
93
12.9
%
$91.
97
10.9
%
$99.
33
8.0%
Retail Sales Worldwide Top 10 countries, ranked by retail eCommerce sales worldwide, 2016-2018, in billions and % change
2016
France
2017 2018
South Korea Canada Russia Brazil
% Change
$46.
13
8.2%
$49.
71
7.8%
$53.
26
7.1%
$40.
43
10.0
%
$44.
07
9.0%
$47.
82
8.5%
$33.
05
14.9
%
$37.
61
13.8
%
$42.
67
13.5
%
$23.
40
23.4
%
$26.
88
14.9
%
$30.
91
15.0
%
Source: eMarketer, Dec 2014
$21.
34
13.5
%
$23.
79
11.5
%
$26.
17
10.0
%
Mobile Share of eCommerce Transactions Japan
South Korea
UK
Spain
US
Germany
Netherlands
Italy
France
Russia
Brazil
0% 10% 20% 30% 40% 50%
Q1 2015 Q4 2014
Glo
bal A
vera
ge: 3
4%
www.criteo.com/media/1894/criteo-state-of-mobile-commerce-q1-2015
Mobile Growth is Driven by the Smart Phone Japan
South Korea
UK
Spain
US
Germany
Netherlands
Italy
France
Russia
Brazil
-2% -1% 0% 1% 2% 3% 4% 5%
www.criteo.com/media/1894/criteo-state-of-mobile-commerce-q1-2015
% m
obile sales from sm
artphone, 1Q2015
Smartphone Tablet
90
99
44
56
53
45
39
55
37
65
41
Consumer Expectations
87% of shoppers initiate
browsing on their smartphone
at home
81% of shoppers use
more than 1 device to browse
41.2% of all online traffic
Cyber Monday came from
mobile
55-72% of shoppers use mobile in store
SecureNet: The Way We Pay, Jan 2015 | eBay Enterprise: How To Leverage Multiple-Device Shoppers, Feb. 2015
With Over
720 Commerce variations
Merchant Opportunities
Supply Demand
Web
Mobile
Stores
Customer Service
Marketplace
Stores
Dropship Network
Merchant DC
Third Party DC
Omni-channel shoppers are 3-4x more valuable than single channel shoppers–both in terms of revenue an loyalty
eBay Enterprise: How To Leverage Multiple-Device Shoppers, Feb. 2015
Biggest Tech Barriers to eCommerce Growth What are some of the most significant tech-related challenges you face in growing your
eCommerce business (Company Trends)
Integration with current/ legacy systems
Building a personalized shopping experience
Multi-device optimization
Cost
Technical optimization e.g. page load speed
Limited capability of current eCommerce solution
Lack of technical knowledge/ capability
Scalability (including upgrade compatibility & hosting)
Catering for multiple markets/ languages
0% 20% 40% 50%
2014 2015
10% 30%
Econsultancy & Neoworks | Technology for Commerce Report | April 2015
Top Retail Order Management Investment Drivers
“Please identify the top three reasons for investing in a retail order management system.”
First Second Third
To support buy-online, pick-up-in-store program
To enable us to fulfill online orders from our physical stores
To support the rollout of additional web distribution centers (DCs)
To support shipping to store
To enable a single view of inventory across channels
To enable a single view of customer orders across channels
To enable store associates to place orders from the online channel
To enable omnichannel returns
18% 12% 10%
9% 17% 12%
16% 13% 9%
11% 12% 14%
9% 10% 13%
6% 7% 8%
3% 11%
3% 5%
With Omnichannel excellence becoming an imperative, retailers and brands are rushing to operationalize increasingly complex cross-channel order processing and fulfillment scenarios
• Complete overhaul of operational infrastructure
• 70,000 units available online to 1 million units
• Triple digit growth
Relevant Content for Omni-Channel
Fractional Marketing: Providing Relevant, Constant Content, June 27, 2014 - By Michael Penney - Email Marketing Strategy
Browse and/or click, but didn’t buy
Confirmation, and post purchase communication
Dynamic Recommendation
Abandoned cart Social Media Intro
Have you ever intentionally browsed products in a store but decided to buy on line?
Have you ever intentionally
browsed products online but decided to buy in store?
0% 40% 80% 100%
PwC’s Annual Global Total Retail Consumer Survey February 2015, 19,068 Respondents
20% 60%
Yes No
Convenience Showrooming vs web-rooming
• 2008 Click & Collect • Online orders grow 19% • 56% of online orders
are C&C • Store growth from 42-65
“The role of the shop is absolutely critical in providing the online sales”
- A. Street, Managing Director
Convenience Click and collect
http://www.deloitte.co.uk/tmtpredictions/click-and-collect-booms-in-europe/
Excellent Customer Service Over the next five years, what is the primary way your organization
will seek to differentiate itself from competitors?
Customer service/ customer experience – making it easy, fun, valuable and/or pleasurable to shop from us
Product service/ quality
Product service/ choice
Mobile – becoming a ‘mobile first’ company that absolutely
caters to the mobile shopper/ buyer
Convenience – fast delivery, in-store pickup, multiple payment mechanism, buy online return-to-store etc.
Price
0% 20% 40% 50%
Econsultancy/ Adobe Quarterly Digital Intelligence Briefing | 2,146 Respondents
10% 30%
Aspiration vs. Reality
Forrester Research, Relevant Customer Experience, January 2015
80%
11%
Aspire to be customer experience leaders Deliver Excellent Experience
Service Expectation
Zendesk, Omni channel Customer Service Gap, 2013
Shifting from Acquisition to Retention
54% Of businesses prioritize meeting revenue targets
63% Of businesses prioritize
acquiring new customers
• A customer’s typical 2,500 choices are increased to 15,000 choices
• Transformed 450 stores into a network of many distribution centers
• Improved store conversion
• Increased loyalty
• Increased endless aisle transactions
Customer Service Store Associate Application
Social
• Product • Sales • Marketing • Public Relations • Community • Crisis • Support
wikipedia.org/wiki/Social_media
Social
purchases through social recommendations
26% induced
2/3 impact
on point of purchase
10% more
purchases based on recommendations from 2013
McKinsey, Getting a sharper picture of social media’s influence, Jacques Bughin, July 2015, 20,000 EU Respondents
Brazil Social Media
Google+
Tumblr
0% 20% 40% 50% 10% 30%
Number of visitors in millions
60%
Percolate, Global Marketers Guide to Brazil, 2015
Social and Internet Growth
2011
Social media users (millions) % of internet users
56.1
66.2
78.3
88.3
97.8
104.2 110 71%
74% 79% 82% 86% 87%
89.2%
2012 2013 2014 2015 2016 2017
Percolate, Global Marketers Guide to Brazil, 2015
Social Linked to Television
Percolate, Global marketer’s Guide to Brazil., 2015
12pm
Comments about TV more than double during the hours when novelas and soccer matches are aired
1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm
Personalized Experiences
Staying Top of Mind with Customers
A rich opportunity to create experiences that are informed not only by what they do but also by what they directly tell you that they want
• Deals and promotions • Communications and website features
that personalized the experience for the user based on past behavior
• More effective were the tools that allowed the customer to set the controls
Shrink Distance
1
Shrink Time
2
Own The Journey
3
Achieving & Scaling Excellence
• Integration with physical stores to pick up and return online orders in store
• Integration to loyalty • 200k orders on BF through CM • 24% increase in conversion • 130% increase in mobile traffic
The Number One Focus
Consumers’ Shopping Journey Is … … Self Directed … Self Serviced … Self Actualizing
Customer experience is the currency of commerce The consumer controls the exchange rate
Brain
The “Omni-Channel” Challenge
$
Customer Experience Profitability Metrics
I leave you with these questions
• What does your customer need next?
• How does it effect your brands relationship when delivered?
• Does your company have the right business practices in place to drive innovation?
• Are you surrounded by the best support systems both from a technology and creativity perspective?
Thank You