Weaving through the future of retail: Creating a true Omni-channel customer experience

Weaving through The Future of Retail Creating a True Omni-Channel Customer Experience

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?

https://www.youtube.com/watch?v=VsvwRfL8n04


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


Why is Omni-Channel Important?

1.  The rise of the connected consumer

2.  Omni-channel brands are more profitable




We live in a multi-screen world

Connected Consumers shop anytime, anywhere and any device

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


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




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.


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

Building an Omni-channel brand

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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


Omni Channel Maturity Model B

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Customer Experience Transactional Experiential Adapted from richrelevance: The Omni-channel Personalization Maturity Model





•  O2O with option to

collect / return in store

•  Integrated rewards

program


Omni Channel Maturity Model B

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•  O2O – Pick up in store (ship to store or purchase based on available store inventory)

Pick up in any one of the 40+ stores


•  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


Zalora Grana



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Customer Experience Transactional Experiential





program


•  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



Adapted from richrelevance: The Omni-channel Personalization Maturity Model

Stage 3: Seamless digital / in-store experience

https://www.youtube.com/watch?v=-hVPjmM9iM4







program


•  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 4: Real-time 1:1 interactions


•  Predictive and personalize catalogues and recommendations

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Stage 4: Realtime 1:1 interactions

https://www.youtube.com/watch?v=djOeE24UnGY

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?

Thank you! [email protected]

@intersphere