agility - driving multichannel success
Post on 05-Dec-2014
1.473 Views
Preview:
DESCRIPTION
TRANSCRIPT
Jason Simpson
From Multi-channel to Omni-channel
commerce
• What’s happening in Multi-channel commerce? (in Europe & the US)
• Technological advancement & changing consumer expectations
• Omni-channel behaviour is shaping Multi-channel commerce
• How channels interact: the role of print• Reaction to the shifting environment• Brand integrity = Multi-channel strategy• What to be ready for; how to be ready
Agenda
The world of Multi-channel commerce…
• Technology is enabling new channels to market
• Traditional model = physical stores with print driving footfall and/or mail order business
• Today = new channels emerging every year
• Proliferation of media• Marketing reach becoming harder• Consumers demanding purchasing
flexibility and convenience
• Now 1.6 billion internet users worldwide• UK e-commerce sales totalled £30bn in 2010 • Accounts for 7% of all retail sales• Sales predicted to grow to reach £50bn by 2015
Source: Forrester
South Africa = 5.3m
The ‘new now’:• Price comparison
sites• Digital catalogues• iPhone/Android apps• iPad & other tablets • In-store kiosks• Social media
Developments in e-commerce…
• UK mobile internet sales forecast to double in the next 3 years to £275m
• Accounts for 4% of online retail spending • Just 2.1% of UK‘s adult population
currently shop via a smartphone, but nearly 80% of owners have used it to buy something!
• But smartphone ownership is growing by c100% annually, driven by iPhone, Android and other comparable products
(source: Verdict & Ovum Research)
Developments in mobile commerce…
• 10% of European shoppers are using their mobiles for product searches, price comparison or purchasing
• 20% plan to do so, according to a study of 1,500 people in the UK, France, Germany, Italy and Spain
• The study also found that shoppers who used mobile in some part of the research and purchase process spent 15% to 30% more than those who used just one channel
(source: IDC/Akamai)
80% of all web-page views in Japan are via mobile devices!
UK predicted to mirror this by 2014
Highly likely that developing nations will leapfrog to this stage
Developments in mobile commerce…
Technology convergence
• The ‘mash-up’• Integrating offline and online media • Quick Response (QR) Barcodes• Augmented Reality• RFID & NFC (Near Field Communication)• Mobile Apps
The Omni-channel consumer
“The omni-channel shopper wants to use all channels – stores, catalogues, call centre, eCommerce and mobile – simultaneously, not each channel in parallel”
Hand and Parker (IDC)Examples:• Price comparison websites, accessed from
mobiles whilst in-store• Reserve/pay online, collect in-store
The Omni-channel consumer…‘InfoLust’
‘Consumers are lusting after detailed information on where to get the best of the best, the cheapest of the cheapest, the first of the first, the healthiest of the healthiest, the coolest of the coolest, or on how to become the smartest of the smartest. Instant information gratification is upon us’
(www.trendwatching.com)
Omni-channel consumers are shaping Multi-channel commerce…
McKinsey research 2009
Clothing retail example
USD$ average customer spend per year
3 channels = 4.4 x higher than print alone4.5 x higher than stores alone5.6 x higher than web alone
How does print fit into the Multi-channel mix?
What we thought we knew:• Shopping is heavily influenced by printed
matter• The “shop in the home” works• Multi-channel is here & increasing revenue• The print catalogue is part of life in UK &
US
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Who are Verdict Consulting?
today's consumerwhere we’re headed
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
1980s
Carefreeconsumption
1990s
Carelessconsumption
Late 2000s
Carefulconsumption
2010s
Consideredconsumption
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Today’s consumer: the mindset shift
QuantityI buy lots of things: some I need, some I don’t…
Quality I buy things I that I really want…
ProductIt’s mainly about the product…
Holistic It’s about the product and the background to the product…
PriceI want everyday low prices…
ValueI don’t mind paying for good things…
ImpulseI buy things without thinking about them…
ThoughtfulI buy things I like, but I think about what I am buying…
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Today’s consumer: considered consumption
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
B2C Research
For this research a catalogue is defined as:• A traditional mail order catalogue• A more modern catalogue or brochure• Lifestyle magazines from retailers in
which the primary aim is promotion or selling (magalogue)
• Retail inserts & circulars• Leaflets & postcards not included
1999
£9,503m2009
£4,393m
Size of traditional mail order catalogue market
?
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
The traditional view – a changing landscape
Lost in a sea of cross-channel confusion
Affiliates
C2C
Telephone
Kiosks
Online
Social networking
Stores
Cats, Mags, Inserts
Mobile
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
The modern scenario
The stigma’s gone – they’re totally different now
They’ve changed, they’re a really nice read
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Perceptions have changed
20.8%regularly use a catalogue to directly buy products
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
The influence of the catalogue today
Physical
92.9%
Online
70.7%
Catalogue
53.9%
News/mags
32.2%
Th
ink
Rese
arc
h
Bu
y
Retu
rn
83.5%
69.1%
53.8%
31.0%
63.7%
69.0%
37.4%
12.8%
53.8%
31.0%
84.2%
66.3%
21.8%
5.7%
74.5%
40.4%
9.5%
0.7%
The purchase decision process
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
86.1%
Omni-channel consumers are shaping Multi-channel commerce…
McKinsey research 2009
Clothing retail example
USD$ average customer spend per year
3 channels = 4.4 x higher than print alone4.5 x higher than stores alone5.6 x higher than web alone
53.9%regularly use a catalogue in the purchase process
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
The influence of the catalogue today
35.9% 36.4%
30.4% 29.6%
21.7%
Seekinginspiration
Gatheringideas
Browsing forfun
Checkingproduct details
Comparingprices
It’s nice to sit and relax – to sit on a sofa and flick through
I can see how the clothes will look on my children
They’re good at product placement
The underlying reasons for usage
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Catalogues£81
Stores£2,079
Online£369
Online to store£257
Catalogue to online£215
Catalogue to store£240 Private & Confidential, Copyright Pindar & Verdict Consulting 2010
• 58% of online sales are driven by the catalogue• 85% of catalogue sales are checked out online or in store
The Multi-channel consumer
74.7%£31.0bn
73.2%£15.9bn 69.4%
£8.6bn67.4%£8.5bn 63.5%
£6.8bn54.8%£9.5bn
45.2%£4.5bn
43.0%£1.4bn
14.6%£18.1bn
Clothing Electricals DIY Furniture HomewaresBeauty Books Music/film Food
Percentage of spend in each sector influenced by catalogues
53.9% baseline
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
The monetary value: sectors
Catalogue browsing
The charts below shows the percentage of people who browse catalogues in the various situations and locations.
At home89.4%
In store24.8% While
waiting14.4%
At a friend'shome14.1%
While traveling
9.1%
At work 8.9%
On holiday 3.0%
Where is print used and viewed?
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Average household receives2 catalogues each month
5% of households receive more than 5 catalogues each month
+
Average time spent browsing catalogues:
8 hours per month
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
Catalogue dynamics – shop in the home
Traditional views of the catalogue do not hold true
Catalogues are critical influencers, at the critical points
We live in an omnichannel world
Driving spend, through channels of choice
Private & Confidential, Copyright Pindar & Verdict Consulting 2010
B2C research summary
Further evidence
Of those, 80% found their purchase in a catalogue and then went online to order.
70% of those surveyed shopped from home last year.
Experian, 2009
Why the catalogue is so important…
• Digital ‘page-turning’ catalogue deliver enhanced sales
Further evidence
B2C example launched last February:• 3 x higher shopping basket values
compared with website-only shoppers
B2B example launched last February:• 2 x higher shopping basket values
compared with website-only shoppers
But:
Consumers do not see channels, they see brands. Therefore, brand and service level consistency across all channels is important for maintaining customer loyalty.
Sharing product and customer data across channels is vital to achieving a consistent customer services and brand message.
A single, central repository is required to provide a single view of the data. But many retailers are still not managing important processes at a multichannel level. (DataMonitor, Sep 2009)
How are retailers responding?
• Retailers are embracing new channels in order to maintain mindshare
• Focus in IT has been on logistics and ERP/CRM – single customer view
The challenges associated with Multi-channel marketing
The Multi-channel challenge
• Getting the right information about the right product to the right customer through their channel(s) of choice
• Ensuring consistency of product data & pricing• Duplication of effort across channels• Speed to market slow due to complexity• Logistical/back-end issues such as:
• Returns (buy online, return to store)• Stock availability across channels• Single customer view (channel agnostic)
Webdatabase
MFG
ERP/main
Web
hand-writtennote
Relea
seAuthor Relea
se Clean
Rleas
e Input
suppliers
<XML>
Release
Relea
seAnalysis
Relea
seApprove
suppliers
Webdatabase
MFG
ERP/main
Web
hand-writtennote
Relea
seAuthor Relea
se Clean
Input
<XML>
Release
Relea
seAnalysis
Relea
seApprove
Relea
se
Relea
se Relea
se
Relea
se
suppliers
Webdatabase
MFG
ERP/main
Web
hand-writtennote
Relea
seAuthor Relea
se Clean
Input
<XML>
Release
Relea
seAnalysis
Relea
seApprove
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se
Relea
se Relea
se
Relea
se
suppliers
Webdatabase
MFG
ERP/main
Web
hand-writtennote
Relea
seAuthor Relea
se Clean
Input
<XML>
Release
Relea
seAnalysis
Relea
seApprove
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Flyers
/cir
cula
rs
Relea
seAnalysis
Relea
se
Relea
se Relea
se
Relea
se
suppliers
Webdatabase
MFG
ERP/main
Web
hand-writtennote
Relea
seAuthor Relea
se Clean
Input
<XML>
Release
Relea
seAnalysis
Relea
seApprove
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Relea
seAnalysis
Relea
se Manually embedreferences
Relea
seEnrich
Relea
seIntegrate
Release
Relea
seApprove
Table
ts/p
hone
Flyers
/cir
cula
rs
Input
Author
Release
Relea
se
Relea
se Relea
se
Relea
se
suppliers
MFG
ERP/main
Web
hand-writtennote
Relea
seAuthor Relea
se Clean
Input
<XML>
Release
Relea
seApprove
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Relea
seAnalysis
Relea
se Manually embedreferences
Relea
seEnrichIntegrate
Release
Relea
seApprove
Table
ts/p
hone
ReleaseAnalysis
Create
ApproveAuthor
Input
Create
Release
Webdatabase
Packaging/POS
Flyers
/cir
cula
rs
Input
Author
Release
Relea
se
Relea
se Relea
se
Relea
se
suppliers
MFG
ERP/main
Web
hand-writtennote
Author Relea
se Clean
Input
<XML>
Release
Relea
seApprove
Em
ail
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Relea
seAnalysis
Relea
se Manually embedreferences
Relea
seEnrichIntegrate
Release
Relea
seApprove
Table
ts/p
hone
ReleaseAnalysis
Create
ApproveAuthor
Input
Create
Release
ApproveAuthor
Release
Approve
Webdatabase
Packaging/POS
Flyers
/cir
cula
rs
Input
Author
Release
Relea
se
Relea
se Relea
se
Relea
se
suppliers
MFG
ERP/main
Web
hand-writtennote
Author Relea
se Clean
Input
<XML>
Release
Relea
seApprove
Em
ail
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Relea
seAnalysis
Relea
se Manually embedreferences
Relea
seEnrichIntegrate
Release
Relea
seApprove
Table
ts/p
hone
ReleaseAnalysis
Create
ApproveAuthor
Input
Create
Release
Packaging/POS
ApproveAuthor
Release
Approve
Webdatabase
Rest of company
Flyers
/cir
cula
rs
Product Information Anarchy
Flyers
/cir
cula
rs
Input
Author
Release
Relea
se
Relea
se Relea
se
Relea
se
suppliers
MFG
ERP/main
Web
hand-writtennote
Author Relea
se Clean
Input
<XML>
Release
Relea
seApprove
Em
ail
Relea
seAnalysis
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Cata
log
hand-writtennote
Input
<XML>
Relea
se Clean
Relea
seApproveAuthor
Release
Create
Relea
seAnalysis
Relea
se Manually embedreferences
Relea
seEnrichIntegrate
Release
Relea
seApprove
Table
ts/p
hone
ReleaseAnalysis
Create
ApproveAuthor
Input
Create
Release
Packaging/POS
ApproveAuthor
Release
Approve
Webdatabase
Rest of company
Inefficient process due to:
• Searching and gathering of images/data
• Brand consistency checking
• Repetitive operational tasks
• Complex process and duplication
• Copy proofing multiple times
• Reformatting refreshed text
• Inefficient language localisation process
• Constant verifying
• Re-checking legal information
• Manual pricing and re-checking
• Cumbersome approval process
• Unproductive communication
• Time sensitive re-work Etc, etc….
suppliers
ERP/main
Web
Em
ail
Cata
log
Table
ts/p
hone
Release
Rest of company
Packaging/POS
Flyers
/cir
cula
rs
PIM Solution
The benefits of Agility multichannel publishing
• Create consistent product promotions for web, print and in-store marketing
• Publish content to websites within hours of product creation and convert your business to ‘web first’ publishing
• Reduce production times for printed promotions by up to 75%
• Free up designers time to use their creative minds and design more pages
• Reduce the number of errors and review cycles by up to 90%
• Do more marketing, with the same resources (or less)
• Turn your product information into a strategic asset:
> Be ready to exploit emerging channels
> Speed to market = competitive advantage
The challenge is recognised
PIM is a crucial foundation
Ensuring product information and pricing is up to date and consistent across channels
Enabling cross-channel fulfillment
Cross selling and personalized promotions
Synchronizing customer and inventory information across channels
Same day shipping & simple, consistent returns
Information sharing with merchandise vendors on product features and availability
Enabling real time views of cross-channel inventory
Retailers asked to comment on which business initiatives had the greatest positive impact in improving customer satisfaction across all channels
Retail Systems Research May 2010
Web site
Price comparison site
Email PrintCatalog
Digital catalog
Flyer/ Ad
iPad/ Tablet
MobileComm
SocialMedia
Magalog
Call center/ Sales
Packaging/ tech data/offer
Awareness /interest
Research
Selection
Order
Acquire (£)
EndorseDecision
Repeat process (££)
= =
The purchase decision process
Driving multichannel success…
+ =(Multichannel Success)
top related