omnichannel thinking for telcos
TRANSCRIPT
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Omnichannel thinking for telcos
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Omnichannel thinking. What people want from online is the basics covered first, a more ‘wow’ personal experience
1. Booz&co – The mandate for multichannel retail – evaluating supply chain models - 20122. The Earnst and Young Customer Experience Series – Supporting local online stores just lip service for australians3. Demistifying the online shopper – 10 myths of multichannel retailing4. 4 Google – ‘shopping now and then.’
• Retailing has entered a new age in which consumers are demanding and expecting all store owners to offer a multichannel shopping experience… Virtually all growth in retail over the next few years will come from multichannel venues driven primarily by the impact of Digitisation.1
• 51% of Australians want online stores to have ‘shorter delivery times’ 2
• While clearly important, price is not the end game. Whether local or overseas, the successful sites will tick all the boxes when it came to the basics, but will also engage with consumers at an emotional and more personalised level.2
• Yet many companies see the multichannel bullet train leaving the station and, instead of feeling excitement, are actually more overwhelmed than anything else.
• Their confusion is heightened by misinformation and false assumptions that gain currency through anecdotal evidence, a few highly publicised success ( or failures ) and individual experience bias.3
• Interactive video, 360 degree views, gestural controls are just a few of the options bringing products alive on consumers’ multiple screens4.
• As digital weaves itself deeper in to the fabric of our lives, smart retailers understand making the most of new opportunities is not about gadgets or technology, it’s about human nature forward thinking retailers should be thinking about how they are interweaving digital tools like contextual targeting mobile and video 4.
Online will inform and engage – woven in to almost every customer’s journey
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What is Omnichannel / Multichannel ?Definition : “Multichannel customer service is about providing a seamless experience to the
customer regardless of which channel they choose to use.”
1. All stats and graphs from Cross channel Integration Best Practices special report by Power Retail :
Multichannel is important to customers
But most retailers aren’t delivering to it yet
The way customers interact with companies has
changed
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Why do telcos want to ‘go multichannel’
These companies have built the core of their multichannel success on logistics – like order online, pick up in store.
46%Of sales are now
multichannel
15%Increase in sales from
Multichannel
8%Increase in sales from
Multichannel
50%Of major launches are order
online pick up in store
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Multichannel insights : Customers already shop in multiple channelsPeople already expect multichannel service from us
1. Gartner Jan 2012 2. Econsultancy 2012 3. Leo Burnett 2011 Study on multichannel 4/.The challenges of multichannel data 5. The multichannel challenge for retailers
This is why phone companies needs to change its approach to how it deals with
customer returns
Key Points :
• If you’re not in multichannel, you’re not planning to be in retail for the long run - your customers already are.4
• Customers are not concerned with our multichannel challenges4
• They expect us to have a full picture of their interactions & use this information to inform our communications strategies making their buying process easier.
• Don’t assign fixed roles for channels
• The trick is to deliver a seamless experience whichever channel the customer chooses
• People use brands at a time and place of their choice – the role of the retailer is to facilitate their choices
LEFT : 82% of people already think it’s important to be able to purchase from multiple channels
LEFT : 77% of people think you should be able to order in one channel, return to another
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Multichannel trends : The internet ties channels togetherEveryone starts online and many use their smartphone in store
Stats from Market Data Analysis :’How we shop in 2010 :’ Charts from Multichannel retail: US and Uk Trends compared
The internet ties additional channels together
• Consumers are increasingly reliant on the internet as a research took – it is the primary place where they become aware of new products
• Smartphone purchases were a game changer. • Customers are now using a rapidly evolving set of
devices as a means of engaging across touch points,
• The internet is not a standalone silo that a multichannel perspective would have us believe but a constant middleman, present at every stage of the buying process.
• Nearly two thirds of customers said they used search engines to help them in their research decisions.
• 47% used information websites• 45% used retail websites
• They don’t distinguish touch points / brand /business. • They are empowered with more info. than ever before.
Below : Use of the Internet as part of buying process in the US & UK
Below : Use of the Internet and mobile as part of buying process in the US & UK
This is why the phone company needs to make the best of online information available in
other channels.
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I’ve tried not to include too much of the evangelising – everyone is on the same side with multichannel / omnichannel
1. The mandate for multichannel retail evaluating supply chain models2. Aberdeen Group – The state of multichannel retail marketing
• Cross channel annual spending levels of multichannel shoppers are often double those of retail only customers. <Companies> which fail to put in place effective multichannel operations will lose out on a 15 to 30 % of their category sales by 2015 and much more in following years.1
• 49% of online shoppers feel it is important to be able to order online and pick up in store. 1
• Only 32% of respondents could execute a unified promotion plan for all marketing channels.2
• Without a consolidated channel marketing plan, the CMOs office cannot measure the impact of their cross channel marketing campaigns.2
• By mapping channel specific components, retail marketers can measure the impact of their multichannel marketing campaigns more effectively.
• Best in class retailers use advanced analytics, ranging from customer intelligence to campaign effectiveness data to improve customer satisfaction scores as well as customer retention and response rates.
Below : People use multiple devices all the time
Below : Multichannel analytics is important
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The customer journey from a customer perspective. Digital Is Pervading Channels and emerging as multichannel & multiscreen
• Digital content makes up 81% of what customers will see while they are researching – but may only be 20% of sales.
• Campaigns need to be holistically considered and include a digital element. The whole customer journey from CTA to purchase needs to be considered.
• At the core of multichannel is stock management across the different channels. Customers want to order in any channel and pick it up through any channel.
• In order to understand customers, we need to track and analyse them wherever they go. Once we understand them, we can help them by optimising the experience.
Marketing
Digital Content
Logistics
Analytics
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The customer journey from a telco’s perspective. The changes we need to make to match the customer journey are clear and achievable
Accenture – omnichannel retail profit 2013 Slides 41 & 42 http://www.slideshare.net/morellimarc/accenture-omnichannel-retail-profit-2013
Most phone companies have the basics covered1 ) Marketing is coordinated : Planning and marketing differences between the channels were coordinated using Jade Mackay’s schedule2 ) Unified offers : We started coordinating offers across all channels
Some of the worst case ‘from’ state has already been done by most
Key multichannel activities remaining to be performed can useful be broken down in to two parts 1. Seamless operations : Logistical changes – warehouse and delivery changes enabling better inter channel ordering.2. Digital : Applying the best of digital to all channels.
What remains In The ‘To’ state s ‘just’ logistics and delivery information
Each channel was driving the technology and process definition
Omnichannel is integration of objectives, measures & platforms
Old
way
of w
orki
ngW
hat w
e ne
ed to
get
to
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What should our multichannel priorities be ?Start with most demanded features – they’re easiest to business case
1. Note – for supporting insights, see appendix 22. https://econsultancy.com/blog/9366-ecommerce-consumer-reviews-why-you-need-them-and-how-to-use-them3. This was the returns rate for the online store when we implemented a retrns policy at a phone company I worked for.
• The insights are remarkably consistent in terms of their recommendations to start with these capabilities.
• Leverage the ‘we want it now’ mentality • Reserve and collect services and a multichannel presence in general
means that retailers can gain advantage over online only companies e.g. Amazon / mobicity
• 86% of Halford’s online sales = in store pick up
1 ) Link stock management systems cross channel
A ) Order / reserve online, pick up in store.B ) Order in store, deliver to home.C ) Order any channel, return through any channel
3 ) Use Web content to improve in store experience – starting
with Reviews
• Create a ‘wow’ factor ( which will entice and impress shoppers ) and how to use digital to drive sales
• Over time, leveraging content investments in retail and other channels will give a better ROI as well we stronger SEO results and a better customer journey.
• Consistent presentation and content across the channels facilitates ‘cognitive flow’ which smooths the path to purchase.
• Delivery to store also gives customers a better set up experience • Staff can introduce and recommend self service to customers• Delivery to store also creates accessories cross sell opportunity.
Up to 10% of attempted retail orders are for out of stock
devices.
Business Casable Insight
Up to 30% of attempted courier
( telesales / online ) deliveries are returned.
Reviews aren't just for online purchases, many research online
before heading in store, or use mobiles for reviews in store 2.
Action Background
Only 3% of phones are ever returned3.
Better channel analytics is also important so we can understand and then optimise the customer flow.
• Customers expect to be able to return products they don’t want through any channel. We’re also required by law to do it.
• Existing process of bagging it can easily be adapted so we do it for customers.
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OmnichannelAppendix 1 Other stuff
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What should multichannel priorities be ? The answers are surprisingly consistent
Both charts taken from ‘How the intenet can save the highstreet’ - econsultancy
Do you reserve products online before collecting them in store ?
What do you do if the store is out of stock when you go to buy ?Why have reviews in store ?
Why have returns in store ?The three most important things shoppers require from an Omni channel retailer are remarkably consistent.
Success overseas with pilot programmes means that the following are key requirements :
1. Being able to order or reserve online, pick up in store / check in store stock levels through a website.
2. Facility to return items bought at a distance ( telesales or online ) and return to store.
3. Online content in store – starting with ratings and reviews.
Additionally, the benefits of these have clear, business case able benefits.
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What should our multichannel priorities be ? The answers are surprisingly consistent
1. Trends shown from omnichannel retail the future of retail by iyad mourtada2. Telstra multichannel shopping survey
Overarching recommendations Of Optus’ Important Bounce Research
• The primary function of the website should be to provide rich and detailed content to support the customer through the research phase. This is critical.
• The website needs to act as a vehicle to drive visitation to the store or telephone.
• The retail store is an opportunity for Optus to reconfirm customer intentions of purchasing the product.
• Product availability is critical as consumers wish to walk away with it immediately.
John Lewis recommendations on initial functionality2
• Click online and collect in store. • 20% of people do this.
• Online available in store. Shoppers could buy online while in store and were encouraged through in store advertising to go on line for extra information.
• 27% research what they want in store and purchase it online.
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Benefits of going omni-channel
Encouraging multichannel is a differentiator Multichannel retailing increases sales, revenue and profit.
62%retailers agreeRSR Benchmark Study
Spend30%More
( Deloitte )
4.5X the spend of single
channel shopper( AMR Research )
Higher Lifetime
value
Research online, buy
in store
Multichannel shoppers are more
profitable