weaving through the future of retail: creating a true omni-channel customer experience
TRANSCRIPT
1. What is Omni Channel? 2. Why is it important to me as a brand/retailer? 3. How do I build an Omni-channel brand?
3 Key Questions for today
What is Omni-channel?
Omni-channel is a seamless unified experience across all physical and digital channels
The Evolution of Shopping
Omni-Channel Multi-Channel Single-Channel
Brands has a single touch point which customers can interact with
Traditional Brick & Mortar
eCommerce Pure Play
Brand has multiple touch points which customers interact with
independently
Customer experiences a unified brand across all channels. Brand has a single customer view and is able to provide a unifiedand seamless experience
“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
What is Omni-channel?
Why is Omni-Channel Important?
1. The rise of the connected consumer
2. Omni-channel brands are more profitable
Why is Omni-Channel Important?
1. The rise of the connected consumer
2. Omni-channel brands are more profitable
The new non-linear purchase journey
Source: Experian Marketing Forward Blog Sep 2015
Traditional purchase funnel Customer decision journey
Shoppers in Asia: Preferred method of purchase
Source: UPS Pulse of an online shopper 2015
65% of shoppers in Asia prefer to complete their purchases online regardless of where they researched the product (online, in-store)
Remaining 35% need to touch, try and feel the product which leads them to visit/purchase in-store.
Consumers who researched in store then purchase online cited better prices and ability to do additional research as top reasons for buying online
But they access store information online – from directions to store hours, check inventory and even reserve products prior to their visits
Use of smartphone in store
Source: UPS Pulse of an online shopper 2015
1. 52% of consumers compare prices on their mobile while in store
2. 34% are looking for more product details
3. 23% searched for an alternative online seller
4. One in 5 customers have placed an order on the mobile phone while in store
Higher consumer expectations
Connections Choice Convenience Conversation
Omni-Channel
Consumers expect to be able to connect to
brands anytime, anywhere especially
on their smartphones
Endless Aisle
Store based retailers must connect their
virtual store shelf to create a seamless
shopping experience
Adapted from Retail Customer Experience: Why retailers must excel in the 4Cs instead of just the 4Ps
Flexibility
Convenience and flexibility of how they purchase and receive goods and services
1:1 dialogue
Consumers want a conversation and to feel
connected with the brand. Brands need to show that
you know and value the consumer through
personalized interactions and loyalty programs
Why is Omni-Channel Important?
1. The rise of the connected consumer
2. Omni-channel brands are more profitable
Asia Pacific is the centre of the world retail eCommerce market
1. E-Commerce sales in APAC will hit $877.61 billion in 2015 (35.7% increase from 2014) 2. APAC makes up 52.52% of worldwide eCommerce sales
Source: eMarketer Asia Pacific is home to majority of world retail eCommerce market Dec 2015
Retail eCommerce Sales in APAC and Worldwide (eMarketer Dec 2015)
Asia Pacific is the centre of the world retail eCommerce market
1. eCommerce now accounts for 10.2% of all retail sales in APAC and projected to rise steadily to 17.6% in 2018
Source: eMarketer Asia Pacific is home to majority of world retail eCommerce market Dec 2015
Retail eCommerce Sales as a Percentage of Total Retail Sales in APAC and Worldwide (eMarketer Dec 2015)
Larger Basket Size
Omni-channel shoppers spend 15-30% more than traditional shoppers Source: DHL Trend Research: Omni-Channel Logistics 2015
O2O plays a vital role in Omni-channel success
One out of 3 online shoppers in Asia have opted to pick-up in store. 57% of them made additional purchases during these trips.
Source: UPS Pulse of an online shopper 2015
O2O nets higher revenue
Source: L2inc Omni-channel retail 2015
.95 cents -.23 cents +.18 cents
$1.07 -.23 cents +.30 cents
Buy Online and Return In-Store
Net Sale
Return Loss
Additional Purchase
Buy Online, Pick Up and Return In-Store
Net Sale
Return Loss
Additional Purchase
.77 cents -.23 cents
eCommerce Pure Play
Net Sale
Return Loss
Personalized Experiences increases spending
Omni Channel retailers who take the time to create personal messages that really resonate with individual customers will drive 23% more spending
Source: Gallup State of the American Consumer
Visibility on inventory drives store visits
71% of customers expect to view in-store inventory online
61% of consumers are more likely to visit a retailer's store if the online store provides physical store inventory
Source: Forrester, Minding the Omni-channel Commerce Gap
Greater ROI from higher Customer Lifetime Value
Omni Channel customers have 30% higher lifetime value than single channel shoppers
Source: IDC FutureScape Worldwide Retail 2015 predictons
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Customer Experience Transactional Experiential
Stage 1: Online Experience
Stage 2: Offline Integration
Stage 3: Seamless Digital / In-Store Experience
Stage 4: Real-time 1:1 interactions
Omni Channel Maturity Model
Adapted from richrelevance: The Omni-channel Personalization Maturity Model
• Individual experience on site
• Personalized recommendations, content & promotions
Stage 1: Online Experience
Omni Channel Maturity Model B
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Customer Experience Transactional Experiential Adapted from richrelevance: The Omni-channel Personalization Maturity Model
• Individual experience on site
• Personalized recommendations, content & promotions
Stage 1: Online Experience
• O2O with option to
collect / return in store
• Integrated rewards
program
Stage 2: Offline Integration
Omni Channel Maturity Model B
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Customer Experience Transactional Experiential Adapted from richrelevance: The Omni-channel Personalization Maturity Model
Stage 2: Offline Integration
• O2O – Pick up in store (ship to store or purchase based on available store inventory)
Pick up in any one of the 40+ stores
Stage 2: Offline Integration
• Fairprice, the largest supermarket chain in Singapore has a Click&Collect service for online orders.
• Click&Collect is available at a nominal fee of S$3 (HK$17) instead of S$10 (HK$55) for delivery
• Number of collection points expanded from 7 to 22 locations in less than a year after launch
• Individual experience on site
• Personalized recommendations, content & promotions
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Customer Experience Transactional Experiential
Stage 1: Online Experience
• O2O with option to
collect / return in store
• Integrated rewards
program
Stage 2: Offline Integration
• Single customer view
• Personalized multi-device and channel marketing using web, mobile, POS and location based data
• In-store Digital screen, kiosk or tablet experience
Stage 3: Seamless Digital / In-Store Experience
Omni Channel Maturity Model
Adapted from richrelevance: The Omni-channel Personalization Maturity Model
• Individual experience on site
• Personalized recommendations, content & promotions
Stage 1: Online Experience
• O2O with option to
collect / return in store
• Integrated rewards
program
Stage 2: Offline Integration
• Single customer view
• Personalized multi-device and channel marketing using web, mobile, POS and location based data
• In-store Digital screen, kiosk or tablet experience
Stage 3: Seamless Digital / In-Store Experience
Stage 4: Real-time 1:1 interactions
Omni Channel Maturity Model
• Predictive and personalize catalogues and recommendations
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Customer Experience Transactional Experiential Adapted from richrelevance: The Omni-channel Personalization Maturity Model
Omni-channel digital ecosystem
Personalized Omni-channel customer experience Behavior, preferences, history, interactions
Omni-channel data
Omni-channel Touchpoints
eCommerce
Email Mobile Social Web Retail Store Call center
POS Marketing Automation
CRM ERP / OMS / WMS
Sales Customer Centric Backoffice
Adapted from richrelevance: Building Omni Channel
In Conclusion
1. An always connected consumer requires an omni-channel brand
2. Omni-channel brands enjoy a significant increase in sales and customer loyalty
3. Evaluate where you are and which stage you want to get to on the Omni-channel maturity model - What is the Omni-channel digital ecosystem you need?