Omnichannel Retailing

! What is OmniChannel?
! In-Store
! Web
! Social
! Mobile
! Tying it all together
Evolution of Customer-Retailer Touch Points
Single Channel Multi-Channel Cross-Channel Omnichannel
What is Omnichannel?
Seamless experience across channels and
touch points
Anytime, any place, anywhere
 New customer is now always connected

• Customer journey became

In stores dynamic, accessible and
continuous. Now it is Non-Stop.
On the go In touch with

social media
Online networks
• 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.

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 Customer is exploring multi-channel experience
Multichannel Customer Journey
DIGITAL CAPABILITIES TO LEVERAGE
OFFLINE ONLINE
FOUNDATION SEARCH
Identification
Natural Search, Paid Search, Search Landing Page
of Need SEO SEM Capability Optimisation
Search for
Solution iMEDIA
Standard Rich Media Broadband Web TV
AWARENESS Display Ads Ads Video
Evaluate
Alternatives WEB SITE
Branded Affiliate Promotional Usability & Analytics,
Visit to
Sites Site Site Accessibility Web Site
CONSIDERATION Compare brand Optimisation
Offers website PARTNERSHIPS
Product
Content Comparison Sponsorships, Philanthropic
Details
Purchase Syndication Sites, Co-branding Cause
Decision Shopping Marketing
PURCHASE Directories
Visit to E-COMMERCE
the store Online Direct to Where to Buy Branded Sell Direct
Purchase on Technical
Offline Consumer Functionality Storefront Third-Party Site
LOYALTY Purchase Mobile Platform
App
MOBILE
Online Mobile Mobile Aps QR Codes, GPS Text
Registration Browser RFID POS Messaging

ADVOCACY CRM
Social Loyalty Behavioral Cross-sell Retention &
Interaction
Campaigns,
Platform Targeting & Engine WinBack
Time Spent 19% 81% Email, Answer Forums Buzz, Referrals Crowd Sourcing Innovation
Acquisition
Reporting 7
SOCIAL
CAREER
NICHE
Driving traffic to store with digital and SO.LO.MO.

• 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.

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The Rise of the Connected Consumer
Information‐hungry, price‐savvy,
and mobile‐empowered shoppers
expect a one-screen, one-store
consistent experience across retail
channels and touch points.

This means a move from

“connecting the channels”
to “blending the channels.”
Why Omnichannel?
Multi-Channel
the New Norm >50%
The Rise of
Social Media >78%
Mobile
Commerce >38%
Online
Shopping >15%
Omnichannel is accelerated by the rapid rise of mobile shoppers

4 out of 5
consumers use their
smartphone
to shop

Source: comScore 2012

How are shoppers
using their
Smartphones?

Source: Deloitte
Business-Case: Google Maps Indoor

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Business-Case: Google Maps Indoor

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Business-Case: Google Maps Indoor

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Store format is evolving in shopping environment

Customer
places order • Stores role is changing since the
online
customer is being connected
24/7

Customer • Enhancing the experience from

notified of self-service to assisted service
order status

• Various channels in store to

purchase from handing a simple,
Order is written shopping list to sales
delivered to
the store assistants to shopping online
within the store.

Customer • Reinforcing brand’s appeal

collects order exposing brand relevant added
at store content

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Store format is evolving in shopping environment

Customer
Collects the
order in store
• Empower store associates

Shop assistant • Real-time order fulfillment and

interact with flexible returns
Tablet

• There is an increased
collaboration with operations
across channels
Customer track
the order with
Smartphone
• Rethink store processes,
reconsider talent and manage
labor differently.
Customer
receive order
at home

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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

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 Enhancement of customer experience on 360°

• Infuse Merchandising with

Customer experience
teams could be located
customer advocacy
within marketing and
influence merchants from
there • Customer insight group
embedded with Merchandising to
incorporate insights at the point
and place of decision – eliminate
Customer experience “insight islands”
team could be fully with an
embedded in equal voice
merchandising at the table
• Trade product centricity offering
the right price, assortment,
promotion, AND customer
experience
Separate customer experience
function with individual team
members matrixed into each
merchant buying Team

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 Retailers must change the game to remain relevant.
They must become seamless themselves.

Copyright © 2013 Accenture All rights reserved. 30

 •

Omnichannel needs a new approach

that transforms the organization from
silos of technologies and process to
a harmonic ecosystem. .

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Integrating operations for a customer conversation

Channel Operations
Stores Digital Customer Services
• Assortment and Pricing are
integrated across channels

Technology Foundation
Center
Business Foundation

Merchandising • Marketing presents a cohesive

“brand” for the new non-stop
Marketing customer experience

Supply Chain • Ensure visibility and dynamic

fulfillment where inventory is
…eliminate channel boundaries
managed at enterprise level

The Enterprise

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Omnichannel redefine functions role and platforms

Each channel is driving the technology and the process definition.

Headquarter

Planning Marketing Warehouse Replenishment

Customer
Store Till Collect
Ware
Warehouse
in store
Store
E-Commerce

Planning Marketing Warehouse E-Commerce POP Home

delivery

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Omnichannel redefine functions role and platforms

Each channel is driving the technology and the process definition.

Omnichannel means integration of objectives, methods and platforms.

Drop
Headquarter

Planning Marketing Warehouses Planishment Mobile

shipment
Omnichannel

Store Till Collect

Customer
Shared stock
in store
Store

POP Home
E-Commerce

Shared stock E-Commerce

delivery

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 The commercial strategy for an Omnichannel journey

Cross Channel Commercial Model

«Body» «Long Tail» • To reach the business objectvies
we need to balance:
• The top selling product that
drive volumes
• Niche products that preserve
Sales volume

margins
To grant the success of an
• eCommerce project we need to
design a cross-channel
strategy to grant:
• Turnover
• Profitability
Top seller Niche product with higer margin
Product variety Omni channel gives a very good
opportunity to sell niche products
which gives more margins.
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 Digital acquisition strategy in an omnichannel environment

Traffic
Customer
Thrust
Awareness • We can influence the visitor volume
using different acquisition
Organic Lead Information channels and performance
strategies.
Acquisition
Click
• The conversion rate is influenced
Reactivation

Through
Commercial User by a mix of commercial and UX
Levers Experience
elements.
Channeling
• The average ticket is influenced by
Phisical Digital /
(store) Mobile assortment strategies.
Conversion
• Customer reactivation
Transactions is strategic

Turnover

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 A new measurable omnichannel ecosystem

• The omnichannel approach,

enabled by technological
platforms, set with cross-

Channels
Price
functional process, permit to
Pure Player price
create more efficient
Couponing commercial strategy.
Service Store
(eg: installation) R&C • The Omnichannel ecosystem
Product Deatil Mobile will measure the relation between
(newest & best)
On-line actions (operative cost) and the
Quality redemption (returns) singling-out
Assortment
the duly profitability.
Unsold stock

& Service
Category Y
Category X

Category Z

Copyright © 2013 Accenture All rights reserved. 47

 I L L U S T RAT I V E

Leverage on commercial communication synergy

• 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.

2 weeks 2 weeks 2 weeks

PUSH ACTIVITIES PUSH ACTIVITIES PUSH ACTIVITIES

Flyer Mobile Digital Flyer Mobile Digital Flyer Mobile Digital

  
Communication effectiveness through flyer
Communicationd efffectiveness in tegrating flyer and one-to-one push
(DEM+SMS)
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So what I need to do to become a
real seamless omnichannel
leading company?

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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

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Thank you !
Dev Borah
Retail Consultant
Retail View

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