JDA Innovation Forum: Seamless Omnichannel Campaigns Revenue Model

Profit Distribution in

Omni-Channel Retail. Milan, 30 May 2013

Copyright © 2012 Accenture All rights reserved. 2

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Consulting Process

Consulting

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System

Implementation

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Operations

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Operations

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Operations

Accenture As Business Innovation Partner

Strategy Consulting

Management Consulting

IT-Consulting

Strategy Process Information Technology Management of Business

Processes

Comprehensive Know-how through

experts and projects across the e2e

value chain

High implementation complexity through

IT and project management Know-How

Change Management


Introducing Accenture Interactive the e-commerce CoE

India Delivery

Centers Consumer

Goods

(Hyderabad)

Technology

Labs

Bangalore, India

Operations

(Madrid ISC) CRM, S&M,

BI, Planning

(Milan ISC)

ACIN

Chicago

ACIN

Sao Paulo

Accenture Interactive

e-Commerce Centre of

Excellence

Milan

Philippine

Delivery

Center

(Manila) Supply Chain

(Barcelona ISC)

Technology Labs

San Josè,

California

Technology

Labs

Chicago, Illinois

High Performance

Business Showcase

Murray Hill, New Jersey

London, UK

Technology Labs

Sophia Antipolis

SAP Retail

(Bilbao)

Delivery

Center

(Napoli)

Value Led

ERP

(Bangalore)

Oracle Retail

(Lodz)

Accenture Customer Innovation Network

Accenture’s global network of CG&S Industry Solution Centers

Global Delivery Network

Accenture Tecnology Labs

Technology

Labs

Beijing, China

BI, ERP, Agri

(Chicago, ISC)


Omnichannel is a new strategy to follow the digital-customer through a tangled customer-journey.


Online

On the go

In stores

In touch with

social media

networks

• Customer journey became

dynamic, accessible and

continuous. Now it is Non-Stop.

• Customers are no longer enter

a channel. Instead, they are

continuously in the channel.

• Thus customer’s focal point is not

anymore purchase but

evaluation and interaction.

New customer is now always connected


SEARCH Natural Search, SEO

Paid Search, SEM

Search Capability

Landing Page Optimisation

iMEDIA Standard Display Ads

Rich Media Ads

Broadband Video

Web TV

WEB SITE Branded Sites

Affiliate Site

Promotional Site

Usability & Accessibility

Analytics, Web Site Optimisation

PARTNERSHIPS Content Syndication

Comparison Sites, Shopping Directories

Sponsorships, Co-branding

Philanthropic Cause Marketing

E-COMMERCE Direct to Consumer

Where to Buy Functionality

Branded Storefront

Sell Direct on Third-Party Site

Technical Platform

MOBILE Mobile Browser

Mobile Aps

QR Codes, GPS RFID POS

Text Messaging

CRM Loyalty Platform

Behavioral Targeting & Acquisition

Cross-sell Engine

Retention & WinBack

Campaigns, Email, Reporting

SOCIAL Online Video Communities,

Answer Forums Word-of-mouth, Buzz, Referrals

Wikis, blogs, Crowd Sourcing

Product Innovation

Multichannel Customer Journey DIGITAL CAPABILITIES TO LEVERAGE

OFFLINE

FOUNDATION

AWARENESS

ADVOCACY

PURCHASE

CONSIDERATION

LOYALTY

ONLINE

Identification of Need

Search for Solution

Evaluate Alternatives

Product Details

Visit to the store

Purchase Decision

Visit to the brand website

Compare Offers

Online Purchase

Social Interaction

Online Registration

Mobile App

Offline Purchase

19% 81% Time Spent

Customer is exploring multi-channel experience


• Digital customer is using the

SOcial LOcal MObile interaction

on daily base

• In-store price comparison, rating-

&-review and gamification

influence purchase decision and

drive additional customer

• There are new features to map the

malls (even floors) to drive the

customer to theirs preferred store.

Driving traffic to store with digital and SO.LO.MO.


Business-Case: Google Maps Indoor






ONLINE

Single shopping mission across channels

• The retailing experience is

evolving from Multi-channel to

Omni-channel

• Distinct sales channels are giving

way to a single, all-

encompassing business model

• The customer experience could

begin and end everywhere

• Omni-channel approach builds

seamless operations for a

consistent experience


Business-Case: in-store comparison


Business-Case: Best Buy in-store comparison


Store format is evolving in shopping environment

• Stores role is changing since the

customer is being connected

24/7

• Enhancing the experience from

self-service to assisted service

• Various channels in store to

purchase from handing a simple,

written shopping list to sales

assistants to shopping online

within the store.

• Reinforcing brand’s appeal

exposing brand relevant added content

Customer

places order

online

Customer

notified of

order status

Order is

delivered to

the store

Customer

collects order

at store


Business-Case: Argos full channel activation


Business-Case: House of Fraser omni-fashion


Shop assistant

interact with

Tablet

Customer

receive order

at home

Customer

Collects the

order in store

Customer track

the order with

Smartphone

• Empower store associates

• Real-time order fulfillment and

flexible returns

• There is an increased

collaboration with operations across channels

• Rethink store processes, reconsider talent and manage labor differently.

Store format is evolving in shopping environment


Business-Case: Nike-Fuel purchasing everywhere


Business-Case: Nike-Fuel purchasing everywhere


The evolution of the elastic supply chain

• Make visibility and dynamic fulfillment mandatory

• Emphasize returns management providing non-stop customer’s path to return is just as fluid as the path to purchase

• The management of inventory should be done forward, backward and sideways, in order to have the best flexibility in the supply chain


Business-Case: Celio* showrooming


Enhancement of customer experience on 360°

Customer experience

teams could be located

within marketing and

influence merchants from

there

Customer experience

team could be fully

embedded in

merchandising

with an

equal voice

at the table

Separate customer experience

function with individual team members

matrixed into each merchant buying

Team

• Infuse Merchandising with customer advocacy

• Customer insight group embedded with Merchandising to incorporate insights at the point and place of decision – eliminate “insight islands”

• Trade product centricity offering

the right price, assortment,

promotion, AND customer

experience


Business-Case: Nasty Gal a merchandise-experience


Business-Case: Nasty Gal a merchandise-experience


Business-Case: Stories.com e-commerce curation


Business-Case: In-store Augmented Reality fashion


Business-Case: In-store Augmented Reality retail


Business-Case: Google Glasses


Retailers must change the game to remain relevant.

They must become seamless themselves.


Omnichannel add a level of


Business strategy transformation in Omnichannel scenario



How to sell more and

more to our

customers?

Which processes do

we have to implement

to increase our

customer spending?

How we can verify the

success of our online

sales strategy?



KPI

Target

Actions


KPI

Target

Actions


•Acquisition

•Re-activation

•Viralization

Click-through

rate?

Visits volume


KPI

Target

Actions

The solution to E-commerce’s main issues

•Offering

•Promotions

•Delivery

•Customer-care

Conversion

rate?

Conversion

•Acquisition

•Re-activation

•Viralization

Click-through

rate?

Visits volume



Actions •Product mix

•Category mix

• threshold

Ticket

composition?

Profitability

•Offering

•Promotions

•Delivery

•Customer-care

Conversion

rate?

Conversion

•Acquisition

•Re-activation

•Viralization

Click-through

rate?

Visits volume



Actions •Product mix

•Category mix

• threshold

Ticket

composition?

Profitability

• Info-commerce

•R&C / P&P

• In-store-comp.

•SO.LO.MO

R.O.P.O.

rates?

Channeling

•Offering

•Promotions

•Delivery

•Customer-care

Conversion

rate?

Conversion

•Acquisition

•Re-activation

•Viralization

Click-through

rate?

Visits volume


Omnichannel needs a new approach that transforms the organization from silos of technologies and process to a harmonic ecosystem.


Integrating operations for a customer conversation

The Enterprise

Channel Operations

Merchandising

Marketing

Supply Chain

Stores Digital Customer

Center

Services

Bu

sin

ess F

ou

nd

atio

n

Te

ch

no

log

y F

ou

nd

ation

…eliminate channel boundaries

• Assortment and Pricing are

integrated across channels

• Marketing presents a cohesive

“brand” for the new non-stop

customer experience

• Ensure visibility and dynamic

fulfillment where inventory is

managed at enterprise level


Omnichannel redefine functions role and platforms

Cu

sto

mer

Planning

Planning Warehouse

Warehouse

Warehouse

Marketing

Marketing

E-Commerce

Store

Planishment

Till

PSP

Collect

in store

Home

delivery

Each channel is driving the technology and the process definition.

E-C

om

merc

e

Hea

dq

ua

rte

r

Sto

re


Cu

sto

mer

E-C

om

merc

e

Hea

dq

ua

rte

r

Sto

re

Omnichannel redefine functions role and platforms

Shared stock

Warehouses Marketing

E-Commerce

Store

Planishment

Till

PSP

Collect

in store

Home

delivery

Planning Mobile Drop

shipment

Each channel is driving the technology and the process definition.

Omnichannel means integration of objectives, methods and platforms.

Om

nic

ha

nn

el

Shared stock


Sa

les

vo

lum

e

«Body»

Product variety

«Long Tail»

Top seller Niche product with higer margin

Cross Channel Commercial Model

The commercial strategy for an Omnichannel journey

• To reach the business objectvies

we need to balance:

• The top selling product that

drive volumes

• Niche products that preserve

margins

• To grant the success of an

eCommerce project we need to

design a cross-channel

strategy to grant:

• Turnover

• Profitability


The commercial strategy for an Omnichannel journey

Historical

Data

Offline

Benchmark Online

Benchmark

Market

Research

So

urc

es

Assortment

Optimisation

Price

Optimisation

Sales Forecasting

Assortment Definition

Profitability Analysis

Revision of the Sets

Price management

Rules

Base Price and Margins

Flexibility Analysis

Baseline Normalisation

Forecast of the Volumes of the

Sales

Promotional Uplift

Calculation

Promo

Optimisation

Simulation Promotional ROI

Definition of the Promotional

Tactic

Promotional Strength

Ca

pa

bil

itie

s

Online

Search

Trend

Cross Channel Commercial Model

1 2 3

4

• To reach the business objectvies

we need to balance:

• The top selling product that

drive volumes

• Niche products that preserve

margins

• To grant the success of an

eCommerce project we need to

design a cross-channel

strategy to grant:

• Turnover

• Profitability


Digital acquisition strategy

• We can influence the visitor volume

using different acquisition

channels and performance

strategies.

• The conversion rate is influenced

by a mix of commercial and UX

elements.

• The average ticket is influenced by

assortment strategies.

• Customer reactivation

is strategic


Digital acquisition strategy in an omnichannel environment

• We can influence the visitor volume

using different acquisition

channels and performance

strategies.

• The conversion rate is influenced

by a mix of commercial and UX

elements.

• The average ticket is influenced by

assortment strategies.

• Customer reactivation

is strategic

Click

Through

Channeling

Traffic

Turnover

Commercial

Levers

Transactions

Organic Lead

Awareness

Information

Acquisition

Customer

Thrust

User

Experience

Rea

cti

va

tio

n

Conversion

Phisical

(store)

Digital /

Mobile


A new measurable omnichannel ecosystem

• The omnichannel approach,

enabled by technological

platforms, set with cross-

functional process, permit to

create more efficient

commercial strategy.

• The Omnichannel ecosystem

will measure the relation between

actions (operative cost) and the

redemption (returns) singling-out

the duly profitability.

Ch

an

ne

ls

Store

R&C

On-line

Cate

go

ry X

Cate

go

ry Y

Cate

go

ry Z

Un

so

ld s

toc

k

Mobile

Quality

& Service Assortment

Price

Product Deatil

(newest & best)

Service

(eg: installation)

Couponing

Pure Player price



Ch

an

ne

ls

Store

R&C

On-line

Cate

go

ry X

Cate

go

ry Y

Cate

go

ry Z

Un

so

ld s

toc

k

Mobile

Quality


Price

Product Deatil

(newest & best)

Service

(eg: installation)

Couponing

Pure Player price

Couponing to drive

in stores

I L L U S T R A T I V E

• The omnichannel approach,













Ch

an

ne

ls

Store

R&C

On-line

Cate

go

ry X

Cate

go

ry Y

Cate

go

ry Z

Un

so

ld s

toc

k

Mobile

Quality


Price

Product Deatil

(newest & best)

Service

(eg: installation)

Couponing

Pure Player price

Outlet on-line • The omnichannel approach,













Leverage on commercial communication synergy

2 weeks 2 weeks 2 weeks

Communication effectiveness through flyer

Communicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS)

• In an Omnichannel environment retailer could use a different approach to

improve the declining performance of the traditional strategies.

• Digital marketing mix will influence all the target: customer traffic, conversion, and

profitability driving customer through the different channels in a measurable way.

Flyer Flyer Flyer



Leverage on commercial communication synergy

2 weeks 2 weeks 2 weeks

Communication effectiveness through flyer

Communicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS)

PUSH ACTIVITIES

Mobile Digital

PUSH ACTIVITIES

Mobile Digital

PUSH ACTIVITIES

Mobile Digital

Flyer Flyer Flyer


• In an Omnichannel environment retailer could use a different approach to

improve the declining performance of the traditional strategies.

• Digital marketing mix will influence all the target: customer traffic, conversion, and

profitability driving customer through the different channels in a measurable way.


So what I need to do to become a real seamless omnichannel leading company?


The next five action to became seamless

1. Omnichannel is not rocket

science

2. Acknowledge the burning

platform

3. Define customer

experiences strategy

4. Identify digital and

physical relations

5. Create a new measurable

ecosystem


Thank you ! Federico Gasparotto Digital Marketing Offering Lead

Accenture Interactive

Tel: +39-331-7550490

@: [email protected]

Blog: www.gasparotto.biz

IM: federico.gasparotto

JDA Innovation Forum: Seamless Omnichannel Campaigns Revenue Model

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