the omni channel experience for retailers - elavon.com · what is the omni-channel experience?...
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Our Team
Lori MillsClient Executive
Strategic Markets
Nicole BrownClient Executive
Strategic Markets Lisa KaminskiClient Executive
Strategic Markets
Bridget StoverSenior Director
Strategic Markets
Kim SwansonClient Executive
Strategic Markets
Jamie MongerClient Executive
Strategic Markets
Karen AaronHead of Strategic Markets, Retail
Dana StreetClient Executive
Strategic Markets
What is the Omni-Channel Experience?
It’s a seamless shopper experience throughout all channels (in-person, online, on mobile), built on integrating all experiences on all platforms. Focuses on the shopper rather than the channel and uses data to give the shopper a more personalized experience in order to build better customer relationships.
Source Harvard Business Review: https://hbr.org/2016/03/in-the-future-of-retail-were-never-not-
shopping?referral=03759&cm_vc=rr_item_page.bottom
The Future of Retail…..We’re Never Not Shopping!
Why eCommerce Now?
73% of consumers use multiple channels during their shopping journey
7% consider themselves “online-only”
20% were “in-store” only shoppers
We now refer to these consumers as omni-channel customers
Why Omni-Commerce?
Source Harvard Business Review: https://hbr.org/2016/03/in-the-future-of-retail-were-never-not-
shopping?
Omni-channel customers are more valuable:• Spent an average of 4% more on every shopping occasion
in the store • Spent 10% more online than single-channel customers• With every additional channel they used, the shoppers
spent 9% more money in the store
Omni-channel shoppers are more loyal. Within six months after an omni-channel shopping experience, these customers had logged 23% more repeat shopping trips to the retailer’s stores and were more likely to recommend the brand to family and friends
https://hbr.org/2017/01/a-study-of-46000-shoppers-shows-that-omnichannel-retailing-works
Omni-Commerce Buying Behavior
In-store vs online pricing
Today’s consumers expect to shop and purchase anytime and everywhere • If the in-store price is higher they can order it at the cheaper
online price and collect their goods at the “Click and Collect” counter in store
• The online price becomes the in-store price
Retailer store profit depends much more on total basket than item price. Key differentiators have become speed and service, not just price.
Matching competitors’ online prices in-store can help booster the highly profitable market basket of add-on sales and services – and you keep a customer.
With the growing price parity between online and stores, the retail store is becoming an omni-channel distribution point as much as a point of sale.
https://www.retailwire.com/discussion/should-retail-prices-in-store-be-the-same-as-online/
Online Shopping vs. In Store?
Source: Demandware 2016 Study
Mobile Now Mobile Forecast
Mobile Payment Drivers:• Merchants’ acceptance of Mobile Payment technology is growing to keep pace with
Shoppers demand through 2020. • 66% of consumers view connected devices as a way to pay for things while going about their
day-today activities: eating breakfast, commuting, cleaning up after dinner, cooking and taking care of the kids.1
Mobile Payment Key Facts: • Number of users is +49% over 5 years. 1
• By 2021, 31% of all transactions will be Mobile Wallet Payments1
• Transaction Values also increases from $27.67 to $189.97 over six years as more shoppers adopt the behavior.2 (Almost 7x increase!)
• As of May 2017 66% of shoppers rarely or never carry and use cash for purchases. 3
• 83% of consumers say using connected devices to pay willsave time and/or reduce their frustration in making a payment. 1
Why This Matters: Elavon enables the Shopper Journey! • Todays Connected Shopper does not need to carry a purse, wallet or card- just their phone.• The Connected Shoppers view connected devices as a way to make shopping and paying for
things a seamless experience across almost every aspect of their lives.
Mobile Shoppers and Buyers
Mobile: Optimizing The Shopping Basket for More Sales
Mobile Basket /Cart Drivers:
• Shoppers have adopted the online cart as their new wish list
• Mobile-obsessed millennials and Gen Z are driving this shift
• More mobile users constantly keep their phones nearby
Cart/Basket Facts:1
• Basket share on phones soared from 27% to 38% in 2016; 41%
increase Y0Y
• Retailers to see > 60% of traffic coming from Mobile phones in
2016
• In 2015 shoppers created 70% more carts on phones
• 73% of online shoppers use the shopping cart to store items to buy
later
Why This Matters:
• The mobile basket/cart is quickly becoming a way for shoppers
and retailers to unify online “parked” carts into sales
Social Networking and the Omni Channel
Social networking and technology can impact potential for businesses. Using social media has major opportunity, and if successful, is bound to manifest in the following ways:
• Unique Brand Personalization• Expanded Loyalty and Engagement Programs• Enhanced Target Market Insights• Increased Mobile Agility• Improved Data Analytics
The one true expectation for any Omni-channel solution is the cultivation of a positive buying experience. Social media allows companies to interact with consumers (and potential consumers) on their own communication platforms.
According to #Socialnomics, 93% of shoppers make buying decisions based on social media.It also impacts: • Increased brand awareness• Purchaser influence• Brand loyalty
https://nectarom.com/2016/08/22/social-media-omni-channel-marketing/
Drivers:
• Prices are dropping on Voice Controlled devices like Alexa
• Amazon, Apple and Google have incredibly strong brands
• Voice-controlled device integration with the IoT is likely to accelerate as smart devices become more prevalent in the average household (27% penetration). Comfort with Voice Assistants will grow
Facts:
• ~24% own a voice-controlled device like Amazon Echo (16.6%) or Google Home (6.8%).
• 20% more plan to purchase a Voice Assistant in 20181
• 33% of shoppers plan to use Alexa or other voice enabled ordering system for purchases by end of 2017. 2 Up 19% from 2016 Study of 12%.
• 37% Millennials, ages 26–35, say they “always” or “often” shop online via voice-controlled devices 1
Why This Matters:
• Less in store traffic is certain
• Security will matter
Voice Enabled Shopping
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1. State of Omni-Channel Retail: ECOMMERCE NEWS AND KELTON PARTNERSHIP SURVEY 1,002 nationally representative
Americans ages 18+, and an oversample to reach 1,005 Americans ages 18+ who have made an online purchase in the past six months
2. Forrester Brief: US Cross-Channel Retail Forecast, 2015 To 2020 Mobile Phones Influence Nearly $1 Trillion In Retail Todayby
Sucharita Mulpuru with Fiona Swerdlow, Laura Naparstek, Diana Gold, and Laura Glazer January 26, 2016.
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Sources: 1. The Future of Retail 2017 study, based on a survey of more than 1,600 consumers2. Payments.com Omni-commerce Tracker August 20173. comScore.com UPS Study 2017