bpost crosschannel day - 22nov2012

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bpost Crosschannel Day November 22d, 2012

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Presentations of the speakers present during the bpost Crosschannel day

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Page 1: bpost crosschannel day - 22nov2012

bpost Crosschannel Day November 22d, 2012

Page 2: bpost crosschannel day - 22nov2012
Page 3: bpost crosschannel day - 22nov2012

Agenda for today

12u45 – 14u55PART I

S. CarbonaroWhat’s going on in retail?

C. JonesCross-Channel Inside Out: The cross channel organization

K. Dierick (GFK)Identifying Your Most Likely Buyer based on FMCG buying Behaviour

14u55 – 15u20Coffee break

X. Thiry (Makro NL)From Cash & Carry to multichannel: challenges & opportunities

P. Grypdonck (Vente-Exclusive)Customer communication in a pure online environment

J. Gautier (Delhaize)The success story of the Delhaize Cube

15u20 – 17u05PART II

V. Nolf (bpost)Successful in your cross-channel strategy

17u05 – 17u15Conclusions (by Gino Van Ossel)

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4

Introductionby Gino Van Ossel (Vlerick School of Management)

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© Vlerick Business School5

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SHOPPING BEHAVIOUR 2.0CROSS-CHANNEL DAY

PROF. GINO VAN OSSEL

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7

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SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS

8Source: “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”,Google, August 2012 (n=1611 US consumers; online survey + 24 hr. log)

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SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS

9Source: “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”,Google, August 2012 (n=1611 US consumers; online survey + 24 hr. log)

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SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS

10

online

in-store

mobile

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SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS

11Source: “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”,Google, August 2012 (n=1611 US consumers; online survey + 24 hr. log)

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12

nu

mb

er

of

chan

nels

omni

crosssilo

multi

single

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13

nu

mb

er

of

chan

nels

cross

omni

silo

multi

single

coverage

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14

seamless integration

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15

nu

mb

er

of

chan

nels

cross

omni

silo

multi

single

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nu

mb

er

of

chan

nels

cross

omni

silo

“old school”

multi

single

“new school”

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CONCLUSION

17

Jamie Nordstromhead of Nordstrom Direct

“If we focus on the customer,the outcome will be right”

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CONCLUSION

18

Prof. Gino Van Ossel

Retail management

E-commerce & cross-channel

Shopper & trade marketing

Channel management

[email protected]

@ginovanossel

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1What’s going on in retail? by Simonetta Carbonaro

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Cross Cross-Channel Inside Out: The cross-channel organisation

by Chris Jones

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The customer demands a seamless cross-channel experience

A cross-channel experience will have many touch-points with your organisation.

omni-channel experience

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Cross-channel customers: both opportunity and challenge

First, the good news. Cross-channel customers1:•Spend 3.5 times more than single-channel customers•Purchase across more categories•Shop more frequently•Are more loyal

And then, the challenge. Cross-channel customers:•Are your best customers already. They are yours to lose.•Expect a seamless cross-channel experience. If you don’t offer them all the channels they demand, they will switch to a competitor who does2

•Do you respond with a seamless organisation?

1IDC insights, May 20122see http://redsockmultichannel.blogspot.co.uk/2012/09/the-multichannel-halo-effect-faith-or.html

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Should your organisation be multiple channel or multi-channel?

Few, if any, retailers have fully Multichannel organisations… yet. But the more seamless the customer experience needed, the more seamless your organisation has to become to deliver it.

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Case #1: Assortment – the cross-channel challenge

Internet

Call-centre

Mobile

In-store Kiosk

c20k non-food SKUs in a large store

Over 100k non-food SKUs online

80k SKUs in the full store range

>250k SKUs on Target.com

Cross-channel retailers increasingly offer Endless Aisle concepts on all their channels (including for in-store ordering), meeting customer expectations set by Amazon etc

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Case #1: Assortment – impact: jobs become more complex

Endless Aisles - with increased SKU counts – are a simple case of a typical organisation challenge facing the cross-channel retailer. For example, what direction should the buying teams go in?

Option A – I liked 1992

lost sales

lost customers

long-term decline

Option B – 2 teams

simple organisation

planning in silos

competing channels

Option C – 1 team

complex jobs

cross-channel plan

channel synergy

A 1-team across all channels approach is increasingly required for sophisticated retail strategies, placing the right “mix” in each customer channel:

“As we look forward, I think our larger stores will have a bit more food space, a little bit less general merchandise space, a bit more clothing space.”

Philip Clarke, Tesco CEO, October 2012

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Case #2: Product Data – a challenge at the foundation of cross-channel retail

What product could be simpler than a loaf of bread?

But a loaf of bread is not so simple: there are over 40 data points describing it here

Customer-descriptive product data management, critically impacting the entire customer experience, is a completely new organisational function.

The benchmark is 25 FTE-minutes per SKU.

Where should this huge, essential, task sit in the organisation?

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Case #2: Product Data – impact: adding clicks to traditionally bricks jobs

Suppliers

Pallets

Stock Warehouses

Attributes

Data Warehouses

Two “identical” product flows, from source to sales-channel

Pallets

Attributes

Bricks Channels

Clicks Channels

It is possible to respond to “new” tasks by adding “new” teams, but existing functions often have the key competencies; it just needs extending from bricks to clicks.

Making the Logistics (Supply Chain) team responsible not only for shipping products but for shipping data is one successful example. A Logistics team is already strong at business process design, standards & compliance, supplier relationships, flow management, working with sales channels, just in time delivery…

It maybe looks surprising, but actually is very logical, and a great example of cross-channel organisational thinking

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Case #3: Collect in Store, cross-channel differentiator and growth engine

** of eligible General Merchandise sales (i.e. excluding food and impossible items like washing machines and sofas)* John Lewis state that 34% of John Lewis sales are collected in Waitrose Stores! So actually their figure is probably higher in total. Click-and-collect was offered at 97 Waitrose's and 35 John Lewis's

"Our product mix lends itself to a multi-channel offer as customers often want further advice, a demonstration or fitting. Online purchasing patterns reflect this, with 86% of sales on Halfords.com reserved and then collected from a store“ - Halfords

“We are seeing about 34% of those visits translating into additional sales in shop and that number is growing exponentially at the moment. It’s typically or increasingly for purchases that the customer didn’t think they would make. So it is quite outwith [beyond] whatever they were going to collect.” – John Lewis

Customer take-up of click-and-collect is spectacular

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Case #3: Collect in Store. Impact: New KPIs and Incentives Required

Whose sale is it anyway?

€Towards my KPIs

Store Manager

WebManager

Cross-channel shopping journeys make it more complex to measure success.Especially for stores, new ways of analysing performance are required, overturning

“traditional” measures that may have been in place for a long time.Channel Conflict must be prevented.

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Case #4: Delivery to Home. Cross-channel issues even for pure online?

Subsidy to customer

Pick, pack & ship costs passed on to customer

Standard Shipping Charge

Free shipping on large carts?

Large article shipping charge

Tesco Direct £3 No £7John Lewis £3 Yes FreeBoots £2.95 Yes £13Asos free n/a n/aDebenhams £3.99 Yes FreeMarks & Spencer £3.99 No FreeArgos £3.95 No £8

Standard Shipping Charge

Free shipping on large carts?

Large article shipping charge

Otto.de €5,95 No € 26Baur €5,95 No € 40Conrad €5,95 Yes n/aRossman €3,95 Yes n/aGoertz Free n/a n/aRedcoon.de €5,99 No € 40Notebooksbilliger.de €5,99 No € 40

Standard Shipping Charge

Free shipping on large carts?

Large article shipping charge

LaRedoute €5,95 No n/a3Suisses €5,95 No € 19Carrefour Electrical €6,99 No € 60Auchan Electrical €4,00 No € 65Etam.fr €5,90 Yes n/aDarty.fr €5,00 Yes FreeGalleries Lafayette €6,00 Yes n/a

Top Cart Abandonment Reasons1

The top reason customers abandon their cart is shipping costs. “No shipping charges” is another reason for the popularity of collect-in-store compared to home delivery.

The trend, seen most clearly in the UK, especially for large articles, is that shipping should be free, or at least subsidised.

1Forrester Research, Cart Abandonment Reasons, 2010

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Case #4: Delivery to Home. Impact: new budget relationships

"From 1 April 2011, the Group has reclassified delivery costs from cost of sales to operating expenses to reflect their increasing deployment as a marketing expenditure. Prior year comparatives have been reclassified accordingly.“1

1Asos plc annual report 2011/12

Logistics costs paid for by the Marketing budget!

Other interesting example changes include the Call-Centre being part of the Logistics budget, and Returns/Waste being part of the Call-Centre budget…

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Case #5: Cross-channel change: a culture clash?

Creating your cross-channel customer experience demands simultaneously:

The flexibility of websites

The agility of social media

The stability of EPOS

The predictability of Logistics

&

?

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Case #5: Cross-channel change. Impact: hybrid methodologies

For example: in IT, Agile and Waterfall approaches are being

blended into methodologies such as Hybrid Agile

Spectators at the Spa Francorchamps F1 Grand Prix will know this can sometimes be a tricky mixture!

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Case #6: Cross-channel Customers => A New Store Experience

ROBO-Customers… …Need Digital StoresResearch Online Buy OfflineResearch Offline Buy Online

83%

53%

25%

of customers research products online before buying1

of smart-phone owners use them to research their purchases first

of smart-phone owners use them to research their purchases while in the store

1Pewinternet.org

The Sales Assistant is no longer someone who Transacts. He/She must now Interact.

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Case #6: A New Store Experience. Impact: Old Myths Become True!

Old Myth: “Our sales staff are the most knowledgeable people in our business”

Role basis changes from Process to Service

New Reality: The dialogue with a ROBO-customer is a more sophisticated dialogue. It starts from the premise that both parties are much better informed. The use of Process as a substitute for Knowledge becomes less acceptable to customers.

Organisation Impact: Knowledgeable, Service-focussed staff expect flatter structures and a more democratic environment.

From McJobs… to iJobs…

Page 36: bpost crosschannel day - 22nov2012

Case #7: A New Store Experience. Impact: Old Myths Become True!

Old Myth: “We treat every customer as an individual”

The ROBO-customer leaves a lot of footsteps…•Browse & search history•Mobile tracking•Social network posts•Loyalty card data•…

…which retailers try to exploit via Big Data

Personalisation strategies

Mobile communication tool… or Big Data tracking device?

Page 37: bpost crosschannel day - 22nov2012

Case #7: A New Store Experience. Impact: Retailing Turns Inside Out!

Old Myth: “We treat every customer as an individual”

New Reality: a paradigm shift. Every individual customer will:•In the medium term, “become a part” of the retailer’s organisation•In the longer term, instead of the retailer broadcasting its offer for the customer to find, the customer will broadcast their need; it will become up to the retailer find it

UK Government initiative, aimed at giving consumers access to the data created through their … internet transactions and high street loyalty cards.

“midata will allow consumers greater insight into their everyday consumption and lifestyle habits by using applications and intermediaries to analyse their actual behaviours and thereby empower them to make better spending choices and secure the best deals. “ – UK Consumer Minister

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Summary: Seven Organisational Impacts from Cross-Channel

Impact Example

More complex jobs Assortment buying

Clicks in traditionally Bricks jobs Product Data Management

New KPIs and Incentives Ascribing a Click & Collect Sale

Redistribution of budgets Logistics costs as marketing spend

Cultural & Methodology Changes Hybrids e.g. Agile + Waterfall in IT

New Myths: Service not Process New style stores with Tablets not POS

Retailing Turns Inside Out! Midata personalisation

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Summary: The reality is a multispeed approach to multichannel organisation

Assortment / Buying

I.T.

Marketing

Stores

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Summary: Seven Impacts… but one Certainty

If your Cross-Channel Strategy does not change the job of every single person in your organisation…

… then you have the wrong Cross-Channel Strategy!

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Cross Channel Inside Out: The Cross-Channel Organisation

Thank you for listening!

Chris JonesRedsock Management

22nd November 2012

E: [email protected]

M: +44 7770 647038

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3Identifying Your Most Likely Buyer based on FMCG buying Behaviour

by Koenraad Dierick (GFK)

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43

DM TARGETING BASED ON FMCG BUYING BEHAVIORFirst results – The Facial Care Business Case

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Overview

How it works?

Business Case – Facial Care

Who is the audience?

Expanding the potential of brands

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45

How it works?

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How it works?

SELECTPOST DATABASE

GfK HOUSEHOLD DATABASE

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How it works?

GfK HOUSEHOLD DATABASE

Continuous tracking of:

o Who buys?

o What?

o When?

o Where?

o How much?

o In promotion?

o Which media are consumed?

o …

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How it works?

SELECTPOST DATABASE

GfK HOUSEHOLD DATABASE

o Who are your brands (potential) buyers in the Selectpost Database?

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How it works?

SELECTPOST DATABASE

GfK HOUSEHOLD DATABASE

o Who are your brands (potential) buyers in the Selectpost Database?

?

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How it works?

SELECTPOST DATABASE

GfK HOUSEHOLD DATABASE

o 85% of the GfK Household Panel is also available in the Selectpost database

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How it works?

SELECTPOST DATABASE

o Based on profile information available in the Selectpost database those addresses best matching the existing buyers of a brand are identified in the Selectpost database

GfK HOUSEHOLD DATABASE

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How it works?

SELECTPOST DATABASE

GfK HOUSEHOLD DATABASE

o Based on profile information available in the Selectpost database those addresses best matching the existing buyers of a brand are identified in the Selectpost database

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How it works?

o 6 Groups identified o Based on their buying potential

o the higher the buying

potential the better a SelectPost address matches with a GfK buyer

Total facial care

Buying potential

> 85% 54000

85% - 75% 103000

75% - 65% 123000

65% - 50% 190000

50% - 30% 210000

< 30%  0

Matching Selectpost addresses

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Who is the audience?

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Who is the audience?

o (Pre) pensioners with KIDS

o Higher income classes

o Over representation of Flemish people

o Settled, demanding yet open minded

o Looking for Harmony and peace

o Highly valuing duty and discipline

o Focus on self realization and responsibility

o Quality oriented rather than quantity

o More on country side

o Traditions are important

o Intellectual & educated

o Family matters

o Rather conservative

o Feel they are getting most out of life

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Who is the audience?

Average pieces

3.43 times/year

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Who is the audience?

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Business case facial care

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Business Case Facial Care

Profiling & Selection

Profiling & Selection

Pre measureme

nt

Pre measureme

nt

DMDMEvaluation

1Evaluation

1

Evaluation 2

Evaluation 2

Evaluation X…

Evaluation X…

During the first 3 months the impact is measured on a two-weekly basis. After 3 months the impact is measured on a monthly basis for during 3 months. This to evaluate the impact on a longer term.

… Evaluation Y

Evaluation Y

Two-weekly evaluation Monthly evaluation

AwarenessAwarenessConsideration & Purchase

intention

Consideration & Purchase

intention

Experiment & purchase

Experiment & purchase

Recommendation

Recommendation

LoyaltyLoyalty

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Business Case Facial Care

AwarenessAwarenessConsideration & Purchase

intention

Consideration & Purchase

intention

Experiment & purchase

Experiment & purchase

Recommendation

Recommendation

LoyaltyLoyalty

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Expanding the potential of brands

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Expanding the potential of brands

Quantification of the potential for growth

Identification

Quantification2

Profiling and „Paint a Picture“3

Link with Selectpost database4

1

Reaching an empathetic understanding of opinions, preferences, desires and purchase habits of the marketing core group

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Expanding the potential of brands

Quantification

45,2%

14,7%

25,3%

14,8%

Marginal group B

Development group

Marketing core group

Marginal Group A

96,1% 3,9%

Others

Heavy Buyers

While the Heavy Buyers make up for 4% of the brand, the „Heavy Buyer“-

Potential is at 15%

1

2

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64

Expanding the potential of brands

„Paint a Picture“

an empathetic understanding of desires and fears, opinions, values and behavior of this group is then analyzed, in order to achieve a maximum of open potentials.

3

After the formal differentiation of the marketing core group

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Expanding the potential of brands

3

3 Life circumstances Elderly/older households High income Very high prosperity Low economical future fears

Lifestyle and values Active high-cultural leisure-time figuration Demanding and liberal-minded Healthy, pleasure and sustainability

Nutrition preferences Discerning towards organic Untreated, fresh foods From Wallonia

* The section „Paint a Picture“ is actually the centre of the TGPs and covers the description of all facets of the marketing core group. It holds the largest position with regards to contents as well as quantitatively. Often the knowledge is deepened in market research workshops.

Purchase behavior Very low price sensitivity Very high quality-oriented Very strong premium affinity

I

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More information?

Made by Sanne Van Hoef

Koenraad Dierick (BE)

Consultant Advanced Business

Solutions (ABS)02/558 0551 | 0473/33 47 70

[email protected]

Made by Sanne Van Hoef

Dr Dirk Depril

Consultant Media

+32 2 558 0588 | +32 486 533 [email protected]

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Makro NL : from Cash & Carry to multichannel : challenges & opportunities

by Xavier Thiry (Makro)

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Member of

bpost

Crosschannel day

Xavier THIRY

Antwerp , 22 November 2012

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Member of Page 70

1 METRO Group: emerging internet giant

2 MCC moving forwards approach

3 Makro.nl

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Member of

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Member of Page 72

METRO Cash & Carry – a core brand of METRO GROUP

Sales (bn): € 20.8Countries: 17Stores: 877

METRO GROUP sales 2010: € 67 bn

Cross functional companies

Food retail

Sales (bn): € 11.5Countries: 6Stores: 429

Self-service wholesale

Sales (bn): € 31,1Countries*: 30…. Stores*: 703

* Status: August 31, 2011

Department stores

Sales (bn): € 3.5Countries: 2Stores: 138

Nonfood specialty

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Member of

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Member of

METRO GROUP - All sales lines are online in 2012

2011 2012

Q2 Q3 Q4 Q1 Q2

1 Jul 2011: Acquisition of Redcoon

Since Q3 2010: Online Shop Media Markt in NL / AT

Q1 2012: MediaMarkt.de online

10 Oct 2011: Saturn.de online mCommerce

1 Sep 2011: Music platform Juke (myjuke.com) online

07 Oct 2011: Relaunched Galeria-kaufhof.de with fashion

1st store Nov 2010: Drive-in concept

Live since May 2010: Non-food online store

Corporate solutions Food & Non-food

Local implementations since Q4 2010 in F / BE / UK

Divisions

Today

Q4 2011: Online Shop in 1 pilot countries

2012: 5 pilot countries

Portfolio enlargement

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Member of Page 75

1 METRO Group: emerging internet giant

2 MCC / Makro multichannel approach: chances & challenges

3 Makro.nl

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Member of Page 76

Freshness & quality in food departments

Fruit and Vegetables Fresh Fish DairyMeat Wine

Leading international wholesaler in fresh fruit and vegetables

One of Europe's biggest fish and meat wholesalers

Excellent quality, especially of meat, fish, fruit and vegetable delivered fresh every day (unparalleled expertise in logistics and state-of-the-art cooling in the store)

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Member of Page 77

Category killer in professional nonfood

Professional Household Seasonal Professional

MediaOffice Cleaning & Hygiene

Large range & variety of professional kitchen equipment, cleaning products, small/large electrical appliances, personal hygiene products

Further strengthening non-food range: general supplies for business and office

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Member of

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Member of

The Ecommerce proposition completes the existing customers value proposition of METRO C&C.

Ac

tua

l/P

ote

nti

al

Sp

en

d

low Personal approach and active management

SERVICETRANSACTION

Self service Intense and personal carehigh

C&

C

E

Com

mer

ce

Del

iver

y

CHANNELS

TIER 3 | Key Accounts

Individual service, individual possibility to order, individual assortment, CSP is standard

TIER 2 | Field force

Individual customer service, customer groups discounts and targeted promo, limited number of CSP

TIER 1 | Small/Medium business, Consumer

Standard customer services in stores and via call centrum, Standard Pricing, standard promotion

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Member of

Cash & Carry Bezorging

Makro –Multichannel wholesaler for Horeca, service providers, small companies and offices

E-Commerce

1968 20122011

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Member of

MAKRO = DE MULTICHANNEL GROOTHANDEL

Dinsdag 18 september:

Makro webshop live

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Member of

E-Commerce Sales

0

5

10

15

20

25

30

2011 2012 2013 2014

Year

Sal

es (M

)

E-Commerce KLANTEN: kleine kantoren

Bezorging

Andere initiatieven (bijv. Wijn online, MakroDirect)

0

2

4

6

8

10

12

14

2005 2006 2007 2008 2009 2010 2011

Year

Mill

ion p

eople

Online population Online buyers

Uitgestelde E-Commerce lancering resulteert in nadeel t.o.v. de concurrentie

E-Commerce is een multichannel aanvulling

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Member of

Country Organisation Model

Stage 1:Dedicated project team to establish

capability

2-3 Year OrganisationStage 2: eBusiness organisation.

Dedicated coordinating teams, plus specialist expertise embedded in

departments

Stage 3:Multichannel capability ready for growth!

Project

Non-FoodFood

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Member of

CHALLENGE # 1

PEOPLE / ORGANIZATION

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Member of

Country Organisation Model - eCommerce Pro FormaNB see reference document: 7 person start-up organisation for non-food eCommerce for further information

eCommerce Business-as-Usual organisation

Functional Area

Key

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Member of

CHALLENGE # 2

IT / Systems

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Member of

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Member of

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Member of

We are working on one centralized platform for 4 different shops and 3 different fulfillment methods which will run on 3 continents.

One common eCommerce solution

Central eCommerce platform will be used in each country for different eCommerce modules

Standardized solution which fits to market and saves cost and time

Platform enables an easy connection to all other MCC systems

Common platform

Four different modules available

METRO Gastro NF shop

METRO Office/Cleaning shop

METRO Profi Food shop

METRO Wine shop

Fulfillment

Fulfillment from stores or platformsStore based assortment

Fulfillment from one central warehouse per country

Country based assortment

Central warehouse per country or per continent with direct shipment to the customers

Assortment based on leading country with possibility for local adaptation

Central warehouse per continent with direct shipment to the customers

Assortment based on leading country with possibility for local adaptation

Page 89

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Member of

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Member of

CHALLENGE # 3

OPERATIONS / Supply Chain

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Member of

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Member of

MAKRO WEBSHOP

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Member of Page 94

Store vs. warehouse picking - Overview

Makro NL decided to utilise Vianen store to fulfil their General Needs online shop orders

Vianen shares space and employees with “normal” store operation – created warehouse in store

Orders are picked and packed in Vianen and sent via courier to customers

Setup is not new to Makro, most Makro HoReCa delivery operations are set up like this

Setup is unique to General Needs proposition, other eCommerce countries (Romania, Poland, Russia) went for central warehouse solution

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Member of Page 95

Store vs. warehouse – Differentiating components

Pick in store Pick in central warehouse

Assortment Limited to store assortment Full central assortment

Stock Cannibalisation risk by offline customers Higher capital expenditure when utilising

multiple stores

More capital expenditure when compared to single store

Space

Available at no additional cost Use of under-utilised stores Order volume limit, replication in

additional store needed

Rent to be paid regardless of utilisation, expensive when low

Handling High cost, store’s not optimised for

picking and packing Up to a third of in-store picking and

packing cost

General

Click & collect possible Shopping experience for offline

customers restricted at high order volumes

Dedicated team with clear allocation of cost and responsibility

Page 96: bpost crosschannel day - 22nov2012

Member of Page 96

Store vs. warehouse picking - Outlook

Ideal early phase setup, when expected order volume is unclear

Pick in store has advantages when processing low volumes, once higher volumes are reached advantages shift to centralised solution

Plan B is required that compares cost implications for both solutions and break-even point

Pick-in-store could be used as starting point for offering click & collect/ drive-in solutions for customers

Page 97: bpost crosschannel day - 22nov2012

Member of

CHALLENGE # 4

MARKETING

Page 98: bpost crosschannel day - 22nov2012

Member of Page 98

HoReCa Trader ServicesInstitutions

Cash & Carry wholesale exclusively for professional customers (I)

Restaurants

Fast Food

Bars & cafes

Accommodation

Caterers

Canteen

Generalist food

Specialist food

Kiosks & petrol stations

Wholesaler

Institutions

Office-based services

Industries

Nonfood traders

Health care

Physical services

Wellness

Craftsmen

Page 99: bpost crosschannel day - 22nov2012

Member of

For each of web shop we have clear definition for core target customers -Example Office web shop

Storage/Maint.

Furniture

Coffee

Food Detergent/Toiletries

Water

Officesupplies

Computers & office

instruments

Low Price = Low Emotional

Involvement

High Price = High Emotional

Involvement

Assistant Boss

Page 100: bpost crosschannel day - 22nov2012

Member of

Page 101: bpost crosschannel day - 22nov2012

Member of

Relevance of information sources (1/3)

Advertising on TV

Advertising on posters

Advertising in shops

Professional magazines

Advertising in magazines

Other personal recommendations

Business acquaintances

Advertising in daily newspapers

Catalogues

Company visits

Email / newsletter

Company website / homepage

Prospectuses / flyers

Basis: Makro customers n=606 / Non-customers n=317Source: Brand potential analysis MCC NL 2008

9

12

13

15

15

16

18

19

21

22

36

37

58

Customer Survey Netherlands

%

Multiple answers were possible

Q24 Please tell me whether the following sources are relevant for you to gather information about suppliers for professional purchase.

Page 102: bpost crosschannel day - 22nov2012

Member of

TODAY

Vision: From generic, mainly transactional communication to a targeted and balanced communication Model reaching more customers

Sell & Tell

1:1

targeted

mass

VISION 2015

Dif

fere

nti

ati

on

of

Me

ss

ag

efr

om

ge

ne

ric

to

cu

sto

miz

ed

MetroMail

email

Positioning

1 to 1 CouponLoyalty

Web/social media

Transactional Brand Building Transactional Brand Building

1:1

targeted

mass

email

Positioning

Web/social media

Competence incl. Hobby

Cook/A la Carte

1 to 1 CouponLoyalty

From 750k touched customers

… to 1 mio Communication receivers in totality

Sell & Tell

Page 102

MetroMail

Competence incl. Hobby

Cook/A la Carte

Page 103: bpost crosschannel day - 22nov2012

Member of

Multi – Channel frame at a glance

1

2

3

4

5

Excellence in Customer

Data

No substitution of printed promotion by E-Mail Makro Mail

Additional promotion impulses

Couponing to generate frequency

Allocation of resources

Page 104: bpost crosschannel day - 22nov2012

Member of

Online communication channels

Homepage: E-mail

Online ordering page:

Page 104

Page 105: bpost crosschannel day - 22nov2012

Member of

Emarketing changes the rules of the game

• new metrics

• new insights

• test / measure / improve

• full traceability

Page 106: bpost crosschannel day - 22nov2012

Member of

CHALLENGE # 5

ASSORTMENT / PRICE

Page 107: bpost crosschannel day - 22nov2012

Member of

General Assortment Development – Depth before Breadth

Categories

SKU count

Do This...

Categories

SKU count Before This...

It is even more important to demonstrate range-competence on the web than in physical stores.

Page 108: bpost crosschannel day - 22nov2012

Member of

Office web shop is a key service to recover business demand from SCO by increasing sales of our General Business Needs solutions. Focused areas:

Note: all solutions generally do NOT represent core needs

Office Pantry

Cleaning/Hygiene

Off

ice

Food and NF products & services that enable daily office work

Cle

an

ing

/H

ygie

ne

Wo

rk Wear/

Main

tenan

ce/S

afety

Essential work wear for specific branches, security & safety equipment

Pan

try

Food and NF products & services used in companies to serve guests & cater for “internal breaks”.

Focus

Products & services used for cleaning of surfaces & technical equipment & hygiene products

Workwear/Maintenance/Safety

Page 108

Page 109: bpost crosschannel day - 22nov2012

Member of

Office supplies: 7000 articles

Bathroom

Office 1

Office 2 Office 3

Kitchen

Entrance area

Copy room, maintenance & supplied

Page 109Page 109

Page 110: bpost crosschannel day - 22nov2012

Member of Page 110

1 METRO Group: emerging internet giant

2 MCC moving forwards approach

3 Makro.nl: first results

Page 111: bpost crosschannel day - 22nov2012

Member of

MAKRO.NL extend his proposition

Entire office solution Kantoor oplossing

7000 articles (5000 NF / 2000 F)

• Unique Market Proposition

• Full multichannel (return, same price, customer review)

• Launch: November 2012

• 100.000 registred customers in start up phase

• Sales: 50 % Food / 50 % NF

Page 112: bpost crosschannel day - 22nov2012

Member of

Thank you for listening!

Page 113: bpost crosschannel day - 22nov2012

5Vente-Exclusive.be: customer communication in a pure online environment

by Peter Grypdonck

Page 114: bpost crosschannel day - 22nov2012

Customer communication in a pure online environment

bpost Crosschannel Day

Peter Grypdonck, CEOwww.vente-exclusive.com

Page 115: bpost crosschannel day - 22nov2012

•Vente-Exclusive.com in a nutshell

•Why is communication key for us?

•Our communication channels

•The role of Social Media

•Plans for the future

Overview

Page 117: bpost crosschannel day - 22nov2012

•We rarely see or meet our customers

•Our business model is a bit a-typical

•Communication is crucial for customer satisfaction

Why is communication key for us?

Page 118: bpost crosschannel day - 22nov2012

Our business model is a bit a-typical…

Page 119: bpost crosschannel day - 22nov2012

Communication about order status

•Real time and automated communication with Bpost

•Direct line and contact person in case of issues

•All communication flows via our own people

Page 120: bpost crosschannel day - 22nov2012

Our communication channels: mainly e-communication

Transactional e-mails

Daily / weekly sale invitations

Customer Service (Chat / e-mail)

Marketing e-mails

Media (B2B & B2C)

Social media

In-box messaging

Webshop

Page 121: bpost crosschannel day - 22nov2012

Daily / weekly invitation mail

Account information

Overview new sales -> direct link

to shop

Personalized intro

Page 122: bpost crosschannel day - 22nov2012

Homepage

Overview new sales + pending

orders

Personal account info available on

homepage

Page 123: bpost crosschannel day - 22nov2012

Contacting Vente-Exclusive.com

Every member can contact us via

•e-mail (response within 12h) •or chat (instant conversation)•But not via phone support

Page 124: bpost crosschannel day - 22nov2012

Proactive contacts in case of issue through CS

Customers appreciate our pro-active approach, even when we have to cancel an article from their order

Page 125: bpost crosschannel day - 22nov2012

Social media – connecting to our members

Page 126: bpost crosschannel day - 22nov2012

Social media – creating interaction

Page 127: bpost crosschannel day - 22nov2012

Social media – getting feedback

Page 128: bpost crosschannel day - 22nov2012

Social media – providing service to customers

Page 129: bpost crosschannel day - 22nov2012

Social media – getting positive word-of-mouth

Page 130: bpost crosschannel day - 22nov2012

Social media – getting positive word-of-mouth

Page 131: bpost crosschannel day - 22nov2012

Social media – asking help to customers…

Page 132: bpost crosschannel day - 22nov2012

Social media – … and thanking them for it

Page 133: bpost crosschannel day - 22nov2012

Mobile: keeping customers close

Page 134: bpost crosschannel day - 22nov2012

Communication – plans for the future

•Experiment with new channels – also offline

•Update historic communication media

•Accelerate investment in social and mobile

•Invest in creating even more interaction with members

Page 136: bpost crosschannel day - 22nov2012

6136

The success story of the Delhaize Cube

by Jim Gautier

Page 137: bpost crosschannel day - 22nov2012

Jim GautierLocal & Luxemburg Marketing Manager

The success story of

the Delhaize cube

Page 138: bpost crosschannel day - 22nov2012

What is Delhaize Direct ?

Page 139: bpost crosschannel day - 22nov2012

Smartphone applications are the first step to an omnichannel approach

http://www.youtube.com/watch?v=-vtE9ix2sZM

Page 140: bpost crosschannel day - 22nov2012

Delhaize launched first virtual grocery store in Europe

Objectives of the Cube Campaign :

-Increase notoriety of Delhaize Direct and his new e-commerce website

-Increase notoriety of our Delhaize Smartphone App

-Gather knowledge on virtual stores

-Test customer perception

http://www.youtube.com/watch?v=q4c0r22o-l8

Page 141: bpost crosschannel day - 22nov2012

Principle of the Delhaize Cube

Scan one or more product with your smartphone Prepare your shopping list

or Make your order via your smartphone and pick the

next day minimum your products in a Delhaize shop

Page 142: bpost crosschannel day - 22nov2012

6 cubes travelling around the country in high frequented places Wk 14->15 : Belgian Coast : Oostende, Knokke,

Blankenberge

Wk 16->17 : NMBS stations : Bxl North, South, Central, Anvers Berchem, Mons, Liège, Mecehelen, Oudenaarde, Gent-sint-Pieters

Wk 18->19 : NMBS stations : Hasselt, Leuven, Kortrijk, Brugge, A’pen C, Ottignies, Charleroi

Wk 19->20 : Metro Brussels : De Brouckère, Schuman, Centrale, Rogier, Louise, Mérode, Pte de Namur, Arts-Loi, Madou, Simonis

Wk 16->20 : Walking places : Brussels Flagey, Hasselt, Gand, Anvers, stadsfeestzaal, Nivelles, Charleroi, Mechelen, Enghien, Tournai

Page 143: bpost crosschannel day - 22nov2012

Each cube was supported by hostesses giving explanations and distributing leaflets

Page 144: bpost crosschannel day - 22nov2012

Teasing video to create curiosity amongst press representatives

http://www.youtube.com/watch?v=VRgxO0WDLts&feature=relmfu

Page 145: bpost crosschannel day - 22nov2012

DELHAIZE PORTRAYED AS AN INNOVATIVE ENTERPRISE,

PLAYING A PIONEERING ROLE IN EUROPE

Page 146: bpost crosschannel day - 22nov2012
Page 147: bpost crosschannel day - 22nov2012

THE DELHAIZE DIRECT CUBE APPEARED IN AT LEAST :

•16 NEWSPAPERS AND MAGAZINE ARTICLES

•32 ONLINE NEWSPAPER ARTICLES

•33 ONLINE SOURCES

•5 BROADCAST MEDIA

•16 FOREIGN MEDIA ARTICLES

Page 148: bpost crosschannel day - 22nov2012

It was an efficient call to action campaign to support the launch of the new website + 22,1%

= evolution of the number of downloads of the application

+39,9 %= evolution of the number of

visits on Delhaize Direct website

+ 27,6%= evolution of the

number of orders on Delhaize Direct

Page 149: bpost crosschannel day - 22nov2012

Thank You ! Jim Gautier

Local & Luxemburg Marketing managerDelhaize Belgium

Phone : +32 2 412.83.27 Email :

[email protected]

Contact details

Page 150: bpost crosschannel day - 22nov2012

7Successful in your cross-channel strategy

By Vincent Nolf (bpost)

Page 151: bpost crosschannel day - 22nov2012

Agenda

1. A Cross-channel strategy: why ?

2. Right targets

3. Right communication

4. Right delivery

5. Conclusions

151

Page 152: bpost crosschannel day - 22nov2012

A cross-channel strategy, why?

152

Because it makes sense for you, retailers…

37% of visitors picking up their order in store also buy something else

Cross-channel shoppers are worth

of single channel shoppers

4X THE VALUE

NextMarks & SpencerNewlook

Page 153: bpost crosschannel day - 22nov2012

A cross-channel strategy, why?

153

… and, more important, also for your customers

Source: McKinsey – iconsumer 2011

Page 154: bpost crosschannel day - 22nov2012

A cross-channel strategy, why?

154

Key challenge will be to have a truly integrated cross-channel approach… while keeping same delivery promise to the consumers

WEBSHOP MOBILE

Information

Ordering

Delivery

After Sales

Multiple-channel Cross-channel

Page 155: bpost crosschannel day - 22nov2012

Right target

Page 156: bpost crosschannel day - 22nov2012

First, who are your customers ?

156

Example: different social shopper segments…

Archetype represents x% of total shoppers

… with different needs

Source: Research done by Leo Burnett “PeopleShop”

14% 14% 16% 22% 15% 18%

Page 157: bpost crosschannel day - 22nov2012

… and why do they choose to shop online or offline ?

157Source: GfK FutureBuy 2011 (US)

Ideal Attributes – IN STORE Shopping Ideal Attributes – ONLINE Shopping

organized

54%

fast

41%

clean

42%

easy

32%

orderly

35%

friendly

44%

fast

65%

easy

58%

safe

47%

organized

55%

effortless

43%

informative

40%

Page 158: bpost crosschannel day - 22nov2012

Customer knowledge really makes the difference

158

Page 159: bpost crosschannel day - 22nov2012

159

10 client typologies

In cooperation with Python Production

Benefits

> Ready and easy to use

> Statistically pre-defined ‘high potential’ prospects

> Ideal starting point to discover SelectPost and introduce DM

> An inspiration for ‘refined’ selection

> Possible to further customize

> Standardized profile of selection

SelectPost clusters

bpost profiling solution

attitudinal behavior

Based on

Pet LoversActive

LifestyleBrand Lovers

Planet Lovers

Home Sweet Home

Life Quality Seekers

Family Budget

Managers

Connect Lifestyle

Money Planners

Promo Shoppers

Page 160: bpost crosschannel day - 22nov2012

160

> Brand products> Environmental products> Premium seekers

Mostly> Dutch speaking> Female

interested

in

78.790 prospects are waiting for you

Brand Lovers

Page 161: bpost crosschannel day - 22nov2012

Right communication

Page 162: bpost crosschannel day - 22nov2012

Internet

Big brands use DMin their Marketing Mix

162

DM objective:Increase Loyalty

Direct Mail Mobile Application

Television

POSMagazine

Page 163: bpost crosschannel day - 22nov2012

And, even pure players start to use… paper

163Source: Marketing Direct N°148 - 01/06/2011 - Astrid de Montbeillard

Page 164: bpost crosschannel day - 22nov2012

Why are catalogs still relevant ?

Catalogues foster the act of purchase

– 65% of online shoppers use catalogue

– Online sales supported by DM catalogues = 16% increase on average of basket size.

164Source: Planetafeup

Page 165: bpost crosschannel day - 22nov2012

bpost can help you to put in place efficient DM strategies

165

100.000 recipients >

20.000 new

visitors >10.000

new members >

3.000 new

clients

of recipients visit the website

of visitors get member

of member make 1 purchase

20% 50% 30%

Offline/online example

Page 166: bpost crosschannel day - 22nov2012

Right delivery

Page 167: bpost crosschannel day - 22nov2012

Customers want to be in control and drive retailer’s value proposition …

167Source: World Retail Congress, September 2012

Convenience, choice and simplicity

Qualified free delivery

Easy returns Delivery options

Reliability

Page 168: bpost crosschannel day - 22nov2012

… and require multiple delivery options to choose from

168

Home 70% Pick-up point 33% Point of sale 21% Locker 10% Other 10%

Source: VIL study – 1.153 respondents – Average # of methods 2,8 – Dec. 2011

Preferences of the online consumer

Page 169: bpost crosschannel day - 22nov2012

Customer

• Visits physical store X to get more information on product A

• Buys 2 days later product A from webshop of store X

• Chooses for delivery of the goods at home

169

1

Page 170: bpost crosschannel day - 22nov2012

Customer

• Visits physical store X to buy product A

• Wants product A in another colour (not available in store X)

• Product A needs to be delivered in pick-up point (near her office)

170

2

Page 171: bpost crosschannel day - 22nov2012

Customer

• Buys product A in online shop X

• Wants his product to be delivered in physical store of shop X (close to home)

• Wants to return his product (not the right size) in another physical store of shop X (close to work)

171

3

Page 172: bpost crosschannel day - 22nov2012

172

Home Pick-up point

Parcel automate

bpost delivery options…

Page 173: bpost crosschannel day - 22nov2012

173

… and easy to use tools to support you

Page 174: bpost crosschannel day - 22nov2012

Is this enough for the consumer?

Page 175: bpost crosschannel day - 22nov2012

Albert, 82 year, needs help for his meals,

groceries and medication

Sofie, 23 year, shops every day online and

requests a consolidated delivery once per week

including groceries

Nathalie and James both work every day and prefer collection and delivery of their laundry on Saturday

morning

Singles, families, companies, have new expectations and wishes…

Lillybook, book editor, wants to ship parcels every day and

prefers a consolidated delivery once per week for returns and

purchases

Page 176: bpost crosschannel day - 22nov2012

make this happenbpost can

Page 177: bpost crosschannel day - 22nov2012

bpost will help you improve the quality of your life by creating a world without physical distances in which you can rely on bpost employees as your personal assistant to order

177Source: Planetafeup

anything anywhere anytime

OUR VISION:bpost by appointment

Page 178: bpost crosschannel day - 22nov2012

A fully consumer centric eco-system with 4 key components…

178

The customer agrees a delivery time with bpost

All purchases and parcels are delivered together at that time

The customer can also return goods (empties, ironing etc.)

The customer pays for the goods safely and securely by banker’s card at the time of delivery

Page 179: bpost crosschannel day - 22nov2012

Digital platform:

www.bpost.be/opafspraak

www.bpost.be/surrendezvous

Physical infrastructure:

post office

fleet

people

boxes

Payment infrastructure:

mobile terminals

invoice

… based on 3 building blocks at our partner’s disposal:

Page 180: bpost crosschannel day - 22nov2012

Conclusions

Page 181: bpost crosschannel day - 22nov2012

Conclusions

• To be successful in your cross-channel strategy, 3 factors are key:– Right target– Right communication– Right delivery

• bpost is in a continuous process of innovating in and around cross-channel solutions

• bpost is there to support you with the relevant knowledge and tools at your disposal

181

Page 182: bpost crosschannel day - 22nov2012

Vincent Nolf

Centre Monnaie, 1000 Brussels

[email protected]

Page 183: bpost crosschannel day - 22nov2012

87

ConclusionsBy Gino Van Ossel (Vlerick School of

Management)

Page 184: bpost crosschannel day - 22nov2012

NEXT …

RetailDetail Awards Ceremony !

ROC STAR – 14 dec2011

Page 185: bpost crosschannel day - 22nov2012