Presentations of the speakers present during the bpost Crosschannel day

1. bpost Crosschannel Day
November 22d, 2012

3. Agenda for today
PART I 12u45 – 14u55
What’s going on in retail? S. Carbonaro
Cross-Channel Inside Out: The cross channel organization C. Jones
Identifying Your Most Likely Buyer based on FMCG buying Behaviour K. Dierick (GFK)
Coffee break 14u55 – 15u20
PART II 15u20 – 17u05
From Cash & Carry to multichannel: challenges & opportunities X. Thiry (Makro NL)
Customer communication in a pure online environment P. Grypdonck (Vente-Exclusive)
The success story of the Delhaize Cube J. Gautier (Delhaize)
Successful in your cross-channel strategy V. Nolf (bpost)
Conclusions (by Gino Van Ossel) 17u05 – 17u15

4. Introduction
by Gino Van Ossel (Vlerick School of
Management)
4

5. 5 © Vlerick Business School

6. SHOPPING BEHAVIOUR 2.0
CROSS-CHANNEL DAY
PROF. GINO VAN OSSEL

7. 7

8. SHOPPING BEHAVIOUR 2.0:
FROM SINGLE TO MULTIPLE TOUCHPOINTS
Source: “The New Multi-screen World: Understanding Cross-platform Consumer
8
Behavior”,

9. SHOPPING BEHAVIOUR 2.0:
FROM SINGLE TO MULTIPLE TOUCHPOINTS
Source: “The New Multi-screen World: Understanding Cross-platform Consumer
9
Behavior”,

10. SHOPPING BEHAVIOUR 2.0:
FROM SINGLE TO MULTIPLE TOUCHPOINTS
online
mobile
in-store
10

11. SHOPPING BEHAVIOUR 2.0:
FROM SINGLE TO MULTIPLE TOUCHPOINTS
Source: “The New Multi-screen World: Understanding Cross-platform Consumer
11
Behavior”,

12. omni
number of channels
multi
single silo cross
12

13. omni
coverage
number of channels
multi
single silo cross
13

14. seamless integration
14

15. omni
number of channels
multi
single silo cross
15

16. omni
“new school”
number of channels
multi
“old school”
single silo cross
16

17. CONCLUSION
“If we focus on the customer,
the outcome will be right”
Jamie Nordstrom
head of Nordstrom Direct
17

18. CONCLUSION
Prof. Gino Van Ossel
Retail management
E-commerce & cross-channel
Shopper & trade marketing
Channel management
gino.vanossel@vlerick.com
@ginovanossel
18

19. What’s going on in retail?
by Simonetta Carbonaro

20. Cross Cross-Channel
Inside Out:
The cross-channel
organisation
by Chris Jones

21. The customer demands a seamless cross-channel experience
omni-channel experience
A cross-channel experience will have many touch-points with your organisation.

22. 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 does 2
•Do you respond with a seamless organisation?
1
IDC insights, May 2012
2
see http://redsockmultichannel.blogspot.co.uk/2012/09/the-multichannel-halo-effect-faith-or.html

23. 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.

24. Case #1: Assortment – the cross-channel challenge
Mobile
Internet
Call-centre
In-store Kiosk
Cross-channel retailers increasingly offer Endless Aisle concepts on all their channels
(including for in-store ordering), meeting customer expectations set by Amazon etc
c20k non-food SKUs in a large store 80k SKUs in the full store range
Over 100k non-food SKUs online >250k SKUs on Target.com

25. 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 Option B – 2 teams Option C – 1 team
 lost sales  simple organisation  complex jobs
 lost customers  planning in silos  cross-channel plan
 long-term decline  competing channels  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

26. Case #2: Product Data – a challenge at the foundation of cross-channel retail
What product could be simpler than a loaf of bread?
Customer-descriptive
product data management, But a loaf of bread is not so simple: there are
critically impacting the over 40 data points describing it here
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?

27. Case #2: Product Data – impact: adding clicks to traditionally bricks jobs
Two “identical” product flows,
from source to sales-channel
s Pallets
Pallet
Stock Warehouses Bricks Channels
Attr
ib utes
Suppliers Attributes
Data Warehouses 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

28. Case #3: Collect in Store, cross-channel differentiator and growth engine
Customer take-up of click-
and-collect is spectacular
"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
** 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

29. Case #3: Collect in Store. Impact: New KPIs and Incentives Required
Whose sale is it anyway?
Web Store
Manager Manager
€
Towards
my KPIs
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.

30. Case #4: Delivery to Home. Cross-channel issues even for pure online?
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.
Free La rge Free La rge Free La rge
Sta nda rd s hi ppi ng a rti cl e Sta ndard s hi ppi ng a rti cl e Sta nda rd s hi ppi ng a rti cl e
Shi ppi ng on l a rge s hi ppi ng Shi pping on l a rge s hi ppi ng Shi ppi ng on l a rge s hi ppi ng
Cha rge ca rts ? cha rge Cha rge ca rts ? cha rge Cha rge ca rts ? cha rge
Tesco Direct £3 No £7 LaRedoute €5,95 No n/a Otto.de €5,95 No € 26
John Lewis £3 Yes Free 3Suisses €5,95 No € 19 Baur €5,95 No € 40
Boots £2.95 Yes £13 Carrefour Electrical €6,99 No € 60 Conrad €5,95 Yes n/a
Asos free n/a n/a Auchan Electrical €4,00 No € 65 Rossman €3,95 Yes n/a
Debenhams £3.99 Yes Free Etam.fr €5,90 Yes n/a Goertz Free n/a n/a
Marks & Spencer £3.99 No Free Darty.fr €5,00 Yes Free Redcoon.de €5,99 No € 40
Argos £3.95 No £8 Galleries Lafayette €6,00 Yes n/a Notebooksbilliger.de €5,99 No € 40
Subsidy to Pick, pack & ship
customer costs passed on to
customer
1
Forrester Research, Cart Abandonment Reasons, 2010

31. 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
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…
1
Asos plc annual report 2011/12

32. Case #5: Cross-channel change: a culture clash?
Creating your cross-channel customer experience demands simultaneously:
The flexibility of The stability of
websites EPOS
&
The agility of The predictability
social media of Logistics
?

33. 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!

34. Case #6: Cross-channel Customers => A New Store Experience
ROBO-Customers… …Need Digital Stores
Research Online Buy Offline
Research Offline Buy Online
83% of customers research
products online before
buying1
53% of smart-phone owners
use them to research
their purchases first
25% of smart-phone owners
The Sales Assistant is no longer someone
use them to research
their purchases while in who Transacts. He/She must now Interact.
the store
Pewinternet.org
1

35. Case #6: A New Store Experience. Impact: Old Myths Become True!
Role basis changes from Process to Service
Old Myth: “Our sales staff are the most knowledgeable people in our business”
From McJobs… to iJobs…
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.

36. 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 …which retailers try to
•Mobile tracking exploit via Big Data
•Social network posts Personalisation strategies
•Loyalty card data
•…
Mobile communication
tool… or Big Data
tracking device?

37. Case #7: A New Store Experience. Impact: Retailing Turns Inside Out!
Old Myth: “We treat every customer as an individual”
“midata will allow consumers greater
insight into their everyday
consumption and lifestyle habits by
using applications and intermediaries
UK Government initiative, aimed at giving
to analyse their actual behaviours and
consumers access to the data created
thereby empower them to make better
through their … internet transactions and
spending choices and secure the best
high street loyalty cards.
deals. “ – UK Consumer Minister
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

38. 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

39. Summary: The reality is a multispeed approach to multichannel organisation
Assortment / Buying
I.T.
Marketing
Stores

40. 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!

41. Cross Channel Inside Out: The Cross-Channel Organisation
Thank you for listening!
Chris Jones
Redsock Management
22nd November 2012
E: chris.jones@redsock.biz
M: +44 7770 647038

42. Identifying Your
Most Likely Buyer
based on FMCG
buying Behaviour
by Koenraad Dierick
(GFK)

43. DM TARGETING
BASED ON FMCG
BUYING BEHAVIOR
First results –
The Facial Care Business Case
43

44. Overview
How it works?
Who is the audience?
Business Case – Facial Care
Expanding the potential of brands
44

45. How it works?
45

46. How it works?
SELECTPOST DATABASE
GfK HOUSEHOLD DATABASE
46

47. How it works?
HOUSEHOLD DATABASE
Continuous tracking of:
o Who buys?
o What?
o How much?
o When?
o Where?
o In promotion?
o Which media are consumed?
o…
47

48. How it works?
SELECTPOST DATABASE
o Who are your
brands (potential)
buyers in the
Selectpost
Database?
GfK HOUSEHOLD DATABASE
48

49. How it works?
SELECTPOST DATABASE
o Who are your
brands (potential)
buyers in the
Selectpost
Database?
?
GfK HOUSEHOLD DATABASE
49

50. How it works?
SELECTPOST DATABASE
o 85% of the GfK
Household Panel
is also available
in the Selectpost
database
GfK HOUSEHOLD DATABASE
50

51. 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
51

52. 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
52

53. How it works?
Total facial care
o 6 Groups identified
o Based on their buying potential
> 85% 54000
85% - 75% 103000
o the higher the buying
75% - 65% 123000
Buying
potential
65% - 50% 190000
potential thebetter a
SelectPost address matches
50% - 30% 210000
with a GfK buyer
< 30% 0
Matching
Selectpost
addresses
53

54. Who is the audience?
54

55. Who is the audience?
o (Pre) pensioners with KIDS
o Higher income classes
o Intellectual & educated
o Family matters
o Traditions are important
o Quality oriented rather than quantity
o Highly valuing duty and discipline
o Settled, demanding yet open minded
o Rather conservative
o Looking for Harmony and peace
o Focus on self realization and responsibility
o Feel they are getting most out of life
o More on country side
o Over representation of Flemish people
55

56. Who is the audience?
Average pieces
3.43 times/year
56

57. Who is the audience?
57

58. Business case facial care
58

59. Business Case Facial Care
Two-weekly evaluation Monthly evaluation
Pre
Pre
Profiling & Evaluation Evaluation Evaluation Evaluation
Profiling &
Selection
Selection
measureme
measureme
nt
nt
DM
DM
Evaluation
11
Evaluation
22
Evaluation
X…
X… … Evaluation
Y
Y
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.
Consideration
Consideration Experiment &
Experiment & Recommenda
Recommenda
Awareness
Awareness & Purchase
& Purchase Loyalty
Loyalty
purchase
purchase tion
tion
intention
intention
59

60. Business Case Facial Care
Consideration
Consideration Experiment &
Experiment & Recommenda
Recommenda
Awareness
Awareness & Purchase
& Purchase Loyalty
Loyalty
purchase
purchase tion
tion
intention
intention
60

61. Expanding the potential of brands
61

62. Expanding the potential of brands
1 Identification
2 Quantification
Quantification of the potential for growth
3 Profiling and „Paint a Picture“
Reaching an empathetic understanding of opinions, preferences, desires
and purchase habits of the marketing core group
4 Link with Selectpost database
62

63. Expanding the potential of brands
Quantification 1
2
14,7%
45,2%
96,1% 3,9% 14,8%
25,3%
Heavy Buyers Marginal Group A Development group
Others Marketing core group Marginal group B
While the Heavy Buyers make up for
4% of the brand, the „Heavy Buyer“-
Potential is at 15%
63

64. Expanding the potential of brands
3 „Paint a Picture“
After the formal differentiation
of the marketing core group
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.
64

65. Expanding the potential of brands
I 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
Purchase behavior
 Very low price sensitivity
 Very high quality-oriented
 Very strong premium affinity
* The section „Paint a Picture“ is actually the
centre of the TGPs and covers the
description of all facets of the marketing core Nutrition preferences
group. It holds the largest position with  Discerning towards organic
regards to contents as well as quantitatively.
Often the knowledge is deepened in market  Untreated, fresh foods
research workshops.  From Wallonia
65

66. More information?
Koenraad Dierick (BE)
Consultant Advanced Business
Made by Sanne Van Hoef
Solutions (ABS)
02/558 0551 | 0473/33 47 70
Koenraad.Dierick@gfk.com
Dr Dirk Depril
Made by Sanne Van Hoef Media
Consultant
+32 2 558 0588 | +32 486 533 827
Dirk.Depril@gfk.com
66

68. Makro NL : from
Cash & Carry to
multichannel :
challenges &
opportunities
by Xavier Thiry (Makro)

69. bpost
Crosschannel day
Xavier THIRY
Antwerp , 22 November 2012
Member of

70. 1 METRO Group: emerging internet giant
2 MCC moving forwards approach
3 Makro.nl
Page 70 Member of

71. Member of

72. METRO Cash & Carry – a core brand of METRO GROUP
Self-service Food retail Nonfood Department
wholesale specialty stores
Sales (bn): € 31,1 Sales (bn): € 11.5 Sales (bn): € 20.8 Sales (bn): € 3.5
Countries*: 30…. Countries: 6 Countries: 17 Countries: 2
Stores*: 703 Stores: 429 Stores: 877 Stores: 138
Cross functional companies
METRO GROUP sales 2010: € 67 bn
* Status: August 31, 2011
Page 72 Member of

73. Member of

74. METRO GROUP - All sales lines are online in 2012
2011 2012
Divisions Q2 Q3 Q4 Q1 Q2
Corporate solutions Food & Non-food
Local implementations since Q4 2010 in Q4 2011: Online
F / BE / UK Shop in 1 pilot 2012: 5 pilot countries
countries
Live since May 2010: Non-food online store
Portfolio enlargement
1st store Nov 2010: Drive-in concept
07 Oct 2011: Relaunched Galeria-kaufhof.de with fashion
Q1 2012: MediaMarkt.de online
10 Oct 2011: Saturn.de online mCommerce
1 Sep 2011: Music platform Juke (myjuke.com) online
1 Jul 2011: Acquisition of Redcoon
Since Q3 2010: Online Shop Media Markt in NL / AT
Today
Member of

75. 1 METRO Group: emerging internet giant
2 MCC / Makro multichannel approach: chances & challenges
3 Makro.nl
Page 75 Member of

76. Freshness & quality in food departments
Fruit and
Fresh Fish Meat Dairy Wine
Vegetables
 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)
Page 76 Member of

77. Category killer in professional nonfood
Professional Professional Cleaning &
Seasonal Office
Household Media 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
Page 77 Member of

78. Member of

79. The Ecommerce proposition completes the existing customers value
proposition of METRO C&C.
TRANSACTION SERVICE CHANNELS
TIER 3 | Key Accounts
Delivery
Individual service, individual
possibility to order, individual
assortment, CSP is standard
Actual/Potential Spend
TIER 2 | Field force
Individual customer service,
customer groups discounts and
ECommerce
targeted promo, limited number
of CSP
TIER 1 | Small/Medium business,
C&C
Consumer
Standard customer services in stores
and via call centrum, Standard Pricing,
standard promotion
low high
Personal approach and
Self service Intense and personal care
active management
Member of

80. Makro –Multichannel wholesaler for Horeca, service providers,
small companies and offices
Cash & Carry Bezorging E-Commerce
1968 2011 2012
Member of

81. MAKRO = DE MULTICHANNEL GROOTHANDEL
Dinsdag 18 september:
Makro webshop live
Member of

82. E-Commerce is een multichannel aanvulling
E-Commerce
 KLANTEN: kleine kantoren
 Bezorging
 Andere initiatieven (bijv.
Wijn online, MakroDirect)
E-Commerce Sales
Online population Online buyers
30
14
12 25
Million people
10 20
Sales (M)
8
15
6
10
4
2 5
0
0
2005 2006 2007 2008 2009 2010 2011 2011 2012 2013 2014
Year Year
Uitgestelde E-Commerce lancering resulteert in nadeel t.o.v. de concurrentie
Member of

83. Country Organisation Model
Food Non-Food
Project
Stage 1: 2-3 Year Organisation Stage 3:
Dedicated project Stage 2: eBusiness organisation. Multichannel
Dedicated coordinating teams, plus
team to establish specialist expertise embedded in capability ready
capability departments for growth!
Member of

84. CHALLENGE # 1
PEOPLE / ORGANIZATION
Member of

85. NB see reference document: 7 person start-up organisation for non-food eCommerce for further information
Country Organisation Model - eCommerce Pro Forma
Key
eCommerce Business-
Functional Area
as-Usual organisation
Member of

86. CHALLENGE # 2
IT / Systems
Member of

87. Member of

88. Member of

89. 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 Four different modules
Fulfillment
solution available
METRO Profi Food shop
Fulfillment from stores or platforms
Store based assortment
Common platform
METRO Wine shop
Fulfillment from one central warehouse per
country
 Central eCommerce platform will be Country based assortment
used in each country for different
eCommerce modules
 Standardized solution which fits to METRO Office/Cleaning Central warehouse per country or per continent
shop
market and saves cost and time with direct shipment to the customers
Assortment based on leading country with
possibility for local adaptation
 Platform enables an easy
connection to all other MCC
systems METRO Gastro NF shop Central warehouse per continent with direct
shipment to the customers
Assortment based on leading country with
possibility for local adaptation
Page 89 Member of

90. Member of

91. CHALLENGE # 3
OPERATIONS / Supply Chain
Member of

92. Member of

93. MAKRO WEBSHOP
Member of

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
Page 94 Member of

95. Store vs. warehouse – Differentiating components
Pick in store Pick in central warehouse
Assortment  Limited to store assortment  Full central assortment
 Cannibalisation risk by offline customers  More capital expenditure when compared
Stock  Higher capital expenditure when utilising to single store
multiple stores
 Available at no additional cost  Rent to be paid regardless of utilisation,
 Use of under-utilised stores expensive when low
Space
 Order volume limit, replication in
additional store needed
 High cost, store’s not optimised for  Up to a third of in-store picking and
Handling picking and packing packing cost
 Click & collect possible  Dedicated team with clear allocation of
 Shopping experience for offline cost and responsibility
General
customers restricted at high order
volumes
Page 95 Member of

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 96 Member of

97. CHALLENGE # 4
MARKETING
Member of

98. Cash & Carry wholesale exclusively for professional customers (I)
HoReCa Trader Institutions Services
 Restaurants  Generalist food  Institutions  Health care
 Fast Food  Specialist food  Office-based  Physical services
 Bars & cafes  Kiosks & petrol services  Wellness
 Accommodation stations  Industries  Craftsmen
 Caterers  Wholesaler  Nonfood traders
 Canteen
Page 98 Member of

99. For each of web shop we have clear definition for core target customers
-Example Office web shop
High Price = High
Emotional
Involvement
Furniture Storage/
Maint.
Computers &
office Office
instruments supplies
Coffee Water
Food Detergent/
Toiletries
Low Price = Low
Emotional
Boss Assistant Involvement
Member of

100. Member of

101. Relevance of information sources (1/3)
Customer Survey Netherlands
Q24 Please tell me whether the following sources are relevant for you to gather
information about suppliers for professional purchase.
Prospectuses / flyers 58
Company website / homepage 37
Email / newsletter 36
Company visits 22
Catalogues 21
Advertising in daily newspapers 19
Business acquaintances 18
Other personal recommendations 16
Advertising in magazines 15
Professional magazines 15
Advertising in shops 13
Advertising on posters 12
Advertising on TV 9
%
Source: Brand potential analysis MCC NL 2008
Basis: Makro customers n=606 / Non-customers n=317
Multiple answers were possible
Member of

102. Vision: From generic, mainly transactional communication to a targeted and
balanced communication Model reaching more customers
TODAY VISION 2015
1 to 1
1:1 1:1 1 to 1
Coupon
Loyalty Coupon
Web/social Loyalty Web/social
from generic to customized
Differentiation of Message
media media
targeted email targeted email Competence
Competence incl. Hobby
incl. Hobby Cook/
Metro A la Carte
Cook/ Mail
A la Carte
Metro
Mail Positioning
mass mass
Positioning
Sell & Tell Sell & Tell
Transactional Brand Building Transactional Brand Building
… to 1 mio Communication
From 750k touched customers receivers in totality
Page 102 Member of

103. Multi – Channel frame at a glance
5 Allocation of resources
4 Couponing to generate frequency
3 Additional promotion impulses
2 No substitution of printed promotion by E-Mail Makro Mail
1 Excellence in Customer
Data
Member of

104. Online communication channels
Homepage: E-mail
Online ordering page:
Page 104 Member of

105. Emarketing changes the rules of the game
• new metrics
• new insights
• test / measure / improve
• full traceability
Member of

106. CHALLENGE # 5
ASSORTMENT / PRICE
Member of

107. General Assortment Development – Depth before Breadth
It is even more important to demonstrate range-competence on the web than in physical stores.
Do This...
SKU SKU
count count Before This...
Categories Categories
Member of

108. Office web shop is a key service to recover business demand from
SCO by increasing sales of our General Business Needs solutions.
Focused areas:
Focus
 Food and NF  Food and NF
products & services products & services
used in companies
Office
that enable daily Office Pantry
Pantry
office work to serve guests &
cater for “internal
breaks”.
 Products & services
Maintenance/
Workwear/
Work Wear/
used for cleaning of Cleaning/  Essential work wear
Cleaning/
Hygiene
surfaces & technical Maintenance for specific branches,
Safety
Hygiene
equipment & hygiene / security & safety
products equipment
Safety
Note: all solutions generally do NOT represent core needs
Page 108 Member of

109. Office supplies: 7000 articles
Copy Bathroom
room,
maintenan
ce &
supplied
Entrance Office 1
area
Office 2 Office 3
Kitchen
Page 109 Member of

110. 1 METRO Group: emerging internet giant
2 MCC moving forwards approach
3 Makro.nl: first results
Page 110 Member of

111. 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
Member of

112. Thank you for listening!
Member of

113. Vente-Exclusive.be:
customer
communication in a
pure online
environment
by Peter Grypdonck

114. Customer communication in a
pure online environment
bpost Crosschannel Day
Peter Grypdonck, CEO
www.vente-exclusive.com

115. Overview
•Vente-Exclusive.com in a nutshell
•Why is communication key for us?
•Our communication channels
•The role of Social Media
•Plans for the future

116. Our business: online private sales of fashion
and lifestyle brands

117. Why is communication key for us?
•We rarely see or meet our customers
•Our business model is a bit a-typical
•Communication is crucial for customer satisfaction

118. Our business model is a bit a-typical…

119. 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

120. Our communication channels:
mainly e-communication
Daily / weekly
sale invitations
Marketing
Webshop
e-mails
Media (B2B Transactional
& B2C) e-mails
In-box Customer Service
messaging (Chat / e-mail)
Social
media

121. Daily / weekly invitation mail
Account
information
Personalized
intro
Overview new
sales -> direct link
to shop

122. Homepage
Personal account
info available on
homepage
Overview new
sales + pending
orders

123. Contacting Vente-Exclusive.com
Every member can contact us
via
•e-mail (response within 12h)
•or chat (instant conversation)
•But not via phone support

124. 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

125. Social media – connecting to our members

126. Social media – creating interaction

127. Social media – getting feedback

128. Social media – providing service to customers

129. Social media – getting positive word-of-mouth

130. Social media – getting positive word-of-mouth

131. Social media – asking help to customers…

132. Social media – … and thanking them for it

133. Mobile: keeping customers close

134. 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

135. peter.grypdonck@vente-exclusive.com

136. The success story of
the Delhaize Cube
by Jim Gautier
136

137. The success story
of
the Delhaize cube
Jim Gautier
Local & Luxemburg Marketing Manager

138. What is Delhaize Direct ?

139. Smartphone applications are the first
step to an omnichannel approach
http://www.youtube.com/watch?v=-vtE9ix2sZM

140. 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

141. 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

142. 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

143. Each cube was supported by hostesses
giving explanations and distributing
leaflets

144. Teasing video to create curiosity
amongst press representatives
http://www.youtube.com/watch?v=VRgxO0WDLts&feature=relmfu

145. DELHAIZE PORTRAYED AS AN
INNOVATIVE ENTERPRISE,
PLAYING A PIONEERING ROLE IN
EUROPE

147. 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

148. It was an ef ficient call to action
campaign to suppor t 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

149. Thank You ! Contact details
 Jim Gautier
Local & Luxemburg
Marketing manager
Delhaize Belgium
Phone : +32 2 412.83.27
Email : jgautier@delhaize.be

150. Successful in your
cross-channel
strategy
By Vincent Nolf (bpost)

151. Agenda
1. A Cross-channel strategy: why ?
2. Right targets
3. Right communication
4. Right delivery
5. Conclusions
151

152. A cross-channel strategy, why?
Because it makes sense for you, retailers…
Newlook
Next & Spencer
Marks
Cross-channel
shoppers are worth
4X
THE VALUE
of single channel 37% of visitors picking up
their order in store also
shoppers buy something else
152

153. A cross-channel strategy, why?
… and, more important, also for your customers
Source: McKinsey – iconsumer 2011
153

154. A cross-channel strategy, why?
Key challenge will be to have a truly integrated
cross-channel approach… while keeping same delivery
promise to the consumers
SHOP WEB MOBILE
Information
Ordering
Delivery
After Sales
Multiple-channel Cross-channel
154

155. Right target

156. First, who are your customers ?
Example: different social shopper segments…
14% 14% 16% 22% 15% 18%
… with different needs
Archetype represents x% of total shoppers
Source: Research done by Leo Burnett “PeopleShop”
156

157. … and why do they choose to
shop online or offline ?
Ideal Attributes – IN STORE Shopping Ideal Attributes – ONLINE Shopping
% 47%
54 41% 65 %
58%
safe
organized fast
42% fast easy
32% 40%
clean
35% easy
44 %
43% 55% informative
orderly
friendly effortless
organized
Source: GfK FutureBuy 2011 (US)
157

158. Customer knowledge really
makes the difference
158

159. bpost
profiling
solution 10 client typologies
SelectPost clusters Based on attitudinal
Benefits behavior
> Ready and easy to use In cooperation with Python Production
> Statistically pre-defined ‘high
potential’ prospects
> Ideal starting point to discover
SelectPost and introduce DM
Home Sweet Active Brand Planet
Pet Lovers
> An inspiration for ‘refined’ Home Lifestyle Lovers Lovers
selection
> Possible to further customize Family
Promo Life Quality Connect Money
> Standardized profile of Budget
Shoppers Seekers Lifestyle Planners
selection Managers
159

160. Brand
Lovers
interested in
> Brand products
> Environmental products
> Premium seekers
Mostly
> Dutch speaking
> Female
78.790 prospects are
waiting for you
160

161. Right
communication

162. Big brands use DM
in their Marketing Mix
Internet Direct Mail Mobile Television
Application
Magazine POS
DM objective:
Increase
Loyalty
162

163. And, even pure players start to
use… paper
Source: Marketing Direct N°148 - 01/06/2011 - Astrid de Montbeillard
163

164. 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.
Source: Planetafeup
164

165. bpost can help you to put in
place efficient DM strategies
Offline/online example
100.000 20.000 10.000 3.000
recipients
> new
visitors
> new
members
> new
clients
20% 50% 30%
of recipients of visitors of member make
visit the website get member 1 purchase
165

166. Right delivery

167. Customers want to be in control
and drive retailer’s value
proposition …
Convenience,
choice and simplicity
Qualified free Easy returns Reliability Delivery
delivery options
Source: World Retail Congress, September 2012
167

168. … and require multiple delivery
options to choose from
Preferences of the online consumer
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
168

169. Customer 1
• 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

170. Customer 2
• 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

171. Customer 3
• 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

172. bpost delivery options…
Home Pick-up
point
Parcel automate 172

173. … and easy to use tools to
support you
173

174. Is this enough for
the consumer?

175. Singles, families, companies, have new
expectations and wishes…
Nathalie and James both
Albert, 82 year, needs work every day and prefer
help for his meals, collection and delivery of
groceries and their laundry on Saturday
medication morning
Lillybook, book editor, wants to
ship parcels every day and
prefers a consolidated delivery
once per week for returns and
Sofie, 23 year, shops
purchases
every day online and
requests a consolidated
delivery once per week
including groceries

176. bpost can
make this happen

177. OUR VISION:
bpost by
appointment
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
anything
anywhere
anytime
Source: Planetafeup
177

178. A fully consumer centric eco-
system with 4 key components…
The customer All purchases The customer The customer
agrees a and parcels can also return pays for the
delivery time are delivered goods (empties, goods safely
with bpost together at ironing etc.) and securely
that time by banker’s
card at the
time of
delivery
178

179. … based on 3 building blocks
at our partner’s disposal:
Digital platform:
www.bpost.be/opafspraak
www.bpost.be/surrendezvous
Payment infrastructure:
Physical infrastructure: mobile terminals
post office invoice
fleet
people
boxes

180. Conclusions

181. 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

182. Vincent Nolf
Centre Monnaie, 1000 Brussels
vincent.nolf@bpost.be

183. Conclusions
By Gino Van Ossel (Vlerick School of
Management)

184. NEXT …
RetailDetail Awards
Ceremony !
ROC STAR – 14 dec2011