Meeting consumer expectations and business goals through forward thinking and strategic planning

1. 1
Meeting consumer expectations and
business goals through forward thinking
and strategic planning
Transition to
Omnichannel

2. Contents
• Defining Omnichannel
• Best Practices for Omnichannel Migration
• Impacts to Supplier Set
• Case Studies
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3. 3
Defining
Omnichannel

4. What is Omnichannel?
Distinct commerce and communication channels blending into a single, all-encompassing model
Consistent data available from all sources
Consumer is connected 24/7
Role of store and online presence is changing
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5. Omnichannel spans
retailer type
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Chipotle Mexican Grill enables
customers to order from
anywhere
 Allow any consumer action
from any channel
 Consistent info across
channels
 One-click favorite orders
Macy’s uses instore touchscreen kiosks
for consumers to interact with
 Consumer info
• Personalized messaging
 Product info
• Inventory
• POS
• E-Receipts
QSR Department Store

6. Many functions need to be
blended for Omnichannel
success
• In store experience
• Web based experience
• Mobile
• Communications and Advertising
• Future channels
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7. In-Store
• The store is not going away. It is changing.
– 76% of consumers prefer in-store commerce
• Make the store a place where people want to be
• Bring benefits of online to store
– Product and consumer info
– Inventory
– Mobile payment
• Customer journey should be easy
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8. The Web
Ease of use
Shopping cart continuity
Email campaigns
Analytics to target
Consistent info across channels
Gift card/tender acceptance
Add value to the in-store experience
Online ordering
In-store pickup
Apps
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9. Mobile
0%
5%
10%
15%
20%
25%
30%
35%
40%
“In 3 – 5 years, do you expect the
widespread ability to make mobile
payments at retail stores?”
Very Unlikely Very Likely
CONSUMER EXPECTATIONS
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10. Communications and
Advertising
 Facebook and Twitter connect ideas
 Buy buttons
 Conversation
 Keep engagement flowing
 Opportunity to listen
 Offer value
 Engage staff
 Consistency
 In-store signage to attract followers
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11. The number of channels will
continue to expand
Beacons and devices will continue to extend the
demand for Omnichannel services

12. 12
Best Practices
for
Omnichannel
Migration

13. Thoughts on a recipe for Omnichannel success
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14. Delivering an Omnichannel
experience delivers value while
increasing complexity
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Only one channel
exists for
commerce and
communications
Commerce and
brand experience
is consistent
across channels
One
Channel
@ POS or Online
Only Integrated Platforms
Integrated Infrastructure Required
Omni
Channel
Multiple channels
exist but
commerce and
communications
are still bifurcated
Channels

15. Launching a new Channel is
not the same as launching a
new app
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Consumer
Engagement
Marketing Operations Technology Analytics /
Data
In store
e-commerce
Mobile
An Omnichannel strategy must consider how all functions interact with
the different channels

16. Connected Decisions
• Decisions for one channel have cascading implications across
channels
• Example: Tokenization
– Tokens used for brick and mortar analytics and settlement should be
consistent with tokens used for the mobile and online functions such
as card vault
– If tokens are different you will not be able to track the consumer
across channel
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Implication: Channel governance and strategy should be integrated
across all channels

17. Extended Fraud Capabilities
are Required
Education Velocity Scoring Databases
Geo-Location EMV CVV Data Security
Authentication
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Implication: New resource capabilities, suppliers and reporting will be
required to get a holistic view on fraud
Regulations and fraud threats differ by channel

18. Delivery will Evolve
• Retail is historically delivered via
waterfall due to site level update
processes
• Mobile and online assets can be
delivered via agile methodologies
allowing for quick wins and enhanced
“testing”
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Implication: The organization should evolve its project and delivery
teams to accommodate the demands of all channels while structuring
to take advantage of the flexibility of all channels.

19. Mature
Cards
Operations Security
Point of
Purchase
Operations Card Marketing
Cards
Marketing
Point of Purchase
Loyalty
Loyalty
summary
Vendor
Management
Innovation
functions
Terminals
POS / Shopping Cart
Branded
Gift
Frequency
Offers
Comms
AnalyticsSecurity Innovation
PCI
Analytics
Desired
Extending
Vendor
Terminal
POS
Processor / AcquirerPeripherals
objectives
Availability
Cost
Compliance
Switch
Auth and Settle
Reconciliation
Switch
The outcome …
A single channel operating model
while not simple, requires a
limited supplier stack to operate
its day to day operations

20. Mature
Cards
Operations Security
Point of
Purchase
Operations Card Marketing
Cards
Marketing
Point of Purchase
Loyalty
Loyalty
summary
Vendor
Management
Innovation
functions
Terminals
POS / Shopping Cart
Auth / Settle Branded
Gift
Card Linked
Frequency
Offers
Comms
Reconciliation
Switch
AnalyticsSecurity Innovation
PCI
Analytics
Desired
Extending
Tokenization
Vendor
Terminal
POS
Processor / Acquirer
Kiosks
objectives
Availability
Cost
Compliance
Engagement
Encrypted
Relevant
CoalitionRouting
Switch
Beacons
New Devices
Mobile
TargetedEMV
Mobile Platform
Gateway
Encryption
SIEM
Device Control
Real Time
Efficient
NO Friction
CRM
Digital Agency
Fraud
Security
Machine Learning
Beacon
PII Expert
Security Apps
MORE LEGAL
Asset Management
Wallet Strategy
Real time
Integrated Card and
Spend Analysis
SKU to Card
Category
Improvement
Expected
E-commerce
A well executed Omnichannel
implementation will require a more
complex supplier stack making supplier
decisions and strategy more important.
The outcome …

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Case Studies

22. Be More than a brand
Walgreen’s offers rewards for everyday healthy activities
Partnerships
Digital health advisor through WebMD
Incorporate brand into consumer lifestyle
Link fitness monitors
Integrate with social media
Personal relationship with consumer
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23. Example of Success
Learning from data
Simple online ordering
Transparency
Metrics in store
Unfiltered Twitter feed
React quick, fail fast
Continue to evaluate data
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24. Domino’s Results
Better Repeat
Higher Spending
Higher Customer Satisfaction
New Products Ordered at 2:1 Ratio
Data to Learn From
Largest Quarterly Same-Store Sales Jump
ever Recorded by Major Fast Food Chain
35% of Sales are Mobile
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Coming up with the ideas is one side of the
challenge. But then you actually have to be able to
deliver the technology
- Kelly Garcia, Domino’s VP of Development

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For additional questions, please contact
Daniel Kahan (dkahan@wcapra.com) or
Boyd Farrish (bfarrish@wcapra.com)
Thanks for
viewing!
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