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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniChannel Retail
Best Practices
For BRANDS and RETAILERS
©Ste...
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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3
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Contents
1. Why and what is OmniChannel Retail?
2. What are t...
1
Why and what is OmniChannel Retail?
4
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Why OmniChannel?
BECAUSECONSUMERSARE
So Lo Mo
SOCIAL LOCAL MO...
What is OmniChannelRetail?
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
7
Photo Courtesy: National Retail Fe...
Multi-Channel
8
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: C. Wonder, Balance Internet, Fit for Co...
Cross-Channel
9
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: C. Wonder, Balance Internet, Fit for Co...
Omni-Channel:For customers
10
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Many Channels. Many journeys. But...
Omni-Channel:For Retailers
11
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Single view of the customer and d...
2
What are the Consumer behaviours?
12
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
13
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Google “The New Multi-Screen World: Understanding Cr...
14
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Google “The New Multi-Screen World: Understanding Cr...
15
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Google “The New Multi-Screen World: Understanding Cr...
16
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Ipsos OTX/Google 2012 Holiday Shopping Intentions Su...
17
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Ipsos OTX/Google 2012 Holiday Shopping Intentions Su...
18
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Forrester Research “European Technographics® Consume...
ConsumersSpendMore in MultipleChannels
19
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Accenture Eur...
ConsumersSpendMore in MultipleChannels
20
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: PwC “2013 Glo...
Understandingthe Multi-GenerationalConsumers
21
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Date of Birth A...
UnderstandingtheMulti-GenerationalConsumers
22
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Experian...
GlobalConsumer Needs:
Topdriversofcustomerspending
23
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: P...
GlobalConsumer Needs
Topdriversofcustomerspendingvarybycountry
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
...
3
Who are the Best-in-Class
OmniChannel Retailers?
25
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniChannelBest-in-ClassRetailers(US)
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
26
Source: Retail Info Sy...
OmniChannelBest-in-ClassRetailers(UK)
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
27
Source: Webcredible UK...
OmniChannelBest-in-ClassRetailers(Global)
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
28
Source: Ebeltoft G...
GlobalBenchmarkof OmniChannelPractices
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Source: Dia-Mart Cons...
GlobalBenchmarkof OmniChannelPractices
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
30
Source: Dia-Mart Cons...
4
What are the OmniChannel
Challenges in France?
31
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniChannel Challenges in France
1. Price difference across channels
2. Order management system
3. Inaccurate inventory in...
OmniChannelChallengesin France
33
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OFFLINE
ONLINE
MOBILE
SOCIAL
...
5
What are the OmniChannel Best Practices?
34
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniRetailMatrix1: Strategy
36
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Strategy:Customer
37
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
“There is only one boss. The customer. And...
Strategy:TransversalOrganization
38
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Get Executive Buy-In and Ev...
Strategy:TransversalOrganization
39
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Appoint an OmniChannel Dire...
Strategy:TransversalOrganization
40
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Equip all employees with Om...
Strategy:DevelopDigital Channels
41
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Datamust becentralizedon a singleplatform.
42
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
#1 Customers
#2 P...
InventoryChallenges
43
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: RSR Research, July 2012. Retaile...
Strategy:ObtainReal-timeInventoryVisibility
44
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Skyetek
...
Strategy:ObtainReal-timeInventoryVisibility
45
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Weidenha...
Strategy:ObtainReal-timeInventoryVisibility
46
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Retailers using ...
Strategy:OptimizeOrderFulfillmentOperations
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
47
Situation from B...
Strategy:OptimizeOrderFulfillmentOperations
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
48
RETAIL
DISTRIBUT...
Strategy:OptimizeOrderFulfillmentOperations
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
49
RETAIL
DISTRIBUT...
Strategy:OptimizeOrderFulfillmentOperations
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
50
The Solution: Sh...
Strategy:OptimizeOrderFulfillmentOperations
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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The Solution: Sh...
Strategy:LoyaltyPrograms
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Provide customers with Coupons, Loy...
How to have360° Customer Insight?
53
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Alexis Lecanuet of...
Strategy:LoyaltyPrograms
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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HIGH Employee Engagement = INCREASE...
OmniRetailSalesIncentive
55
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniRetailReturns Management
56
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Strategy:OmniChannelCampaigns
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Source: Maxxing
OmniRetailMatrix2: Channels
58
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Channel: Webstore
59
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
• Webstore = Online Store = E-Commerce Sit...
Channel: Webstore
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: NBS System “Benchmark of E-Commerc...
SocialCommerce
61
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: AddShoppers / Graph Courtesy: BI Inte...
SocialCommerce
62
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: Unmetric “Social Media Shakedown of T...
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: conversationprism.com
Are Facebook,Twitter,Pinterest...
64
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Source: conversationprism.com
SocialCommerce
If you make customers unhappy in the physical world,
they might each tell 6 friends.
If you make customers ...
MobileCommerce Ecosystem
66
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
©Stephany Gochuico
OmniRetailMatrix3: Technology
67
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniChannelStrategy
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Retailers must work with a System Integr...
6
How to deal with Showroomers?
69
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
How to deal with Showroomers?
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
• Price matching strategy
• Ex...
How to deal with Showroomers?
Customerswanta personalizedexperience
71
OmniChannelRetailBestPractices©StephanyGochuico-16J...
How to deal with Showroomers?
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OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Develop Personalized OmniChann...
7
How to be successful in
implementing OmniChannel?
73
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
Give100%attentionto eachelementin
OmniRetailMatrix1:Strategy
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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OmniRetailStatus123™
75
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
OmniRetail Status123™ will enable retai...
OmniRetailDifferentiators
1. Customer service
2. Customer experience
3. Employee Engagement leads to
Customer Loyalty
4. K...
OmniRetailDifferentiator
Customerservice
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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The best customer s...
OmniRetailDifferentiator
Customerservice
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Lousy Customer Serv...
OmniRetailDifferentiator
Customerexperience
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
79
You’ve got to st...
OmniRetailDifferentiator
Customerexperience
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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OmniRetailDifferentiator
Customerloyalty
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Loyal customers, th...
OmniRetailDifferentiator
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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That’s been one of my mantras — foc...
OmniRetailDifferentiator
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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Products don’t kill business but fa...
OmniChannelRetailBestPractices©StephanyGochuico-16June2014
84
OmniChannel:expensive,long,difficult,energyconsuming.
Inevit...
Retailersestimatethey lose$65M
(€47M)for every billion dollars(€721M)
in revenue due to a lack of OmniChannel
readiness.”
...
Thankyou foryourattention.
Pleasedropme alinewithyourfeedbackorquestions.
Stephany GOCHUICO
(Looking for a new challenge i...
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OmniChannel Retail Best Practices for Brands and Retailers Slide 1 OmniChannel Retail Best Practices for Brands and Retailers Slide 2 OmniChannel Retail Best Practices for Brands and Retailers Slide 3 OmniChannel Retail Best Practices for Brands and Retailers Slide 4 OmniChannel Retail Best Practices for Brands and Retailers Slide 5 OmniChannel Retail Best Practices for Brands and Retailers Slide 6 OmniChannel Retail Best Practices for Brands and Retailers Slide 7 OmniChannel Retail Best Practices for Brands and Retailers Slide 8 OmniChannel Retail Best Practices for Brands and Retailers Slide 9 OmniChannel Retail Best Practices for Brands and Retailers Slide 10 OmniChannel Retail Best Practices for Brands and Retailers Slide 11 OmniChannel Retail Best Practices for Brands and Retailers Slide 12 OmniChannel Retail Best Practices for Brands and Retailers Slide 13 OmniChannel Retail Best Practices for Brands and Retailers Slide 14 OmniChannel Retail Best Practices for Brands and 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Practices for Brands and Retailers Slide 74 OmniChannel Retail Best Practices for Brands and Retailers Slide 75 OmniChannel Retail Best Practices for Brands and Retailers Slide 76 OmniChannel Retail Best Practices for Brands and Retailers Slide 77 OmniChannel Retail Best Practices for Brands and Retailers Slide 78 OmniChannel Retail Best Practices for Brands and Retailers Slide 79 OmniChannel Retail Best Practices for Brands and Retailers Slide 80 OmniChannel Retail Best Practices for Brands and Retailers Slide 81 OmniChannel Retail Best Practices for Brands and Retailers Slide 82 OmniChannel Retail Best Practices for Brands and Retailers Slide 83 OmniChannel Retail Best Practices for Brands and Retailers Slide 84 OmniChannel Retail Best Practices for Brands and Retailers Slide 85 OmniChannel Retail Best Practices for Brands and Retailers Slide 86
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OmniChannel Retail Best Practices for Brands and Retailers

This research work provides retailers practical insights, real-world strategies, solutions, and recommendations to improve customer experience, increase business results and maintain competitive advantage in the retail industry.

CONTENTS
1. Why and what is OmniChannel Retail?
2. What are the consumer behaviours?
3. Who are the Best-in-Class OmniChannel Retailers?
4. What are the OmniChannel Challenges in France?
5. What are the OmniChannel Best Practices?
6. How to deal with Showroomers?
7. How to be successful in implementing OmniChannel?

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OmniChannel Retail Best Practices for Brands and Retailers

  1. 1. OmniChannelRetailBestPractices©StephanyGochuico-16June2014 OmniChannel Retail Best Practices For BRANDS and RETAILERS ©StephanyGochuico @stephgo77 1
  2. 2. OmniChannelRetailBestPractices©StephanyGochuico-16June2014 2
  3. 3. 3 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Contents 1. Why and what is OmniChannel Retail? 2. What are the consumer behaviours? 3. Who are the Best-in-Class OmniChannel Retailers? 4. What are the OmniChannel Challenges in France? 5. What are the OmniChannel Best Practices? 6. How to deal with Showroomers? 7. How to be successful in implementing OmniChannel?
  4. 4. 1 Why and what is OmniChannel Retail? 4 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  5. 5. OmniChannelRetailBestPractices©StephanyGochuico-16June2014 5
  6. 6. OmniChannelRetailBestPractices©StephanyGochuico-16June2014 6 Why OmniChannel? BECAUSECONSUMERSARE So Lo Mo SOCIAL LOCAL MOBILE
  7. 7. What is OmniChannelRetail? OmniChannelRetailBestPractices©StephanyGochuico-16June2014 7 Photo Courtesy: National Retail Federation “Mobile Retail Initiative”, 2011
  8. 8. Multi-Channel 8 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: C. Wonder, Balance Internet, Fit for Commerce - imagine 2012, Magento Conference Retailers have multiple channels but they aren’t integrated.
  9. 9. Cross-Channel 9 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: C. Wonder, Balance Internet, Fit for Commerce - imagine 2012, Magento Conference Starting in one channel and transacting in another.
  10. 10. Omni-Channel:For customers 10 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Many Channels. Many journeys. But One Brand.
  11. 11. Omni-Channel:For Retailers 11 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Single view of the customer and data.
  12. 12. 2 What are the Consumer behaviours? 12 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  13. 13. 13 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Google “The New Multi-Screen World: Understanding Cross-platform Consumer Behaviour,” August 2012, 15738 respondents
  14. 14. 14 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Google “The New Multi-Screen World: Understanding Cross-platform Consumer Behaviour,” August 2012, 1611 respondents.
  15. 15. 15 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Google “The New Multi-Screen World: Understanding Cross-platform Consumer Behaviour,” August 2012.
  16. 16. 16 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Ipsos OTX/Google 2012 Holiday Shopping Intentions Survey, 1500 respondents.
  17. 17. 17 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Ipsos OTX/Google 2012 Holiday Shopping Intentions Survey, 1500 respondents
  18. 18. 18 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Forrester Research “European Technographics® Consumer Technology Online Survey”, Q4 2012
  19. 19. ConsumersSpendMore in MultipleChannels 19 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Accenture European E-commerce Survey 2011, 146 European retailers from 6 retail sectors, 7 countries (France, Denmark, Germany, Italy, Poland, Spain, UK). 76%spend more
  20. 20. ConsumersSpendMore in MultipleChannels 20 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: PwC “2013 Global Multi-channel Retail Survey”, 11000 respondents, 11 countries (France, Germany, The Netherlands, USA, UK, China, Switzerland, Brazil, Canada, Turkey & Russia).
  21. 21. Understandingthe Multi-GenerationalConsumers 21 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Date of Birth Age in 2014 Generation Before 1946 69 and above Seniors, Traditionalists, Veterans 1947 - 1963 51 - 68 Baby Boomers 1964 - 1979 35 - 50 Generation X, GenX, Xers 1980 – 2000 13 - 34 Generation Y, GenY, Echo Boomers, Millennials
  22. 22. UnderstandingtheMulti-GenerationalConsumers 22 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Experian Marketing Services “The 2013 Digital Marketer”
  23. 23. GlobalConsumer Needs: Topdriversofcustomerspending 23 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: PwC “2013 Global Multi-channel Retail Survey”, 11000 respondents, 11 countries (France, Germany, The Netherlands, USA, UK, China, Switzerland, Brazil, Canada, Turkey & Russia).
  24. 24. GlobalConsumer Needs Topdriversofcustomerspendingvarybycountry OmniChannelRetailBestPractices©StephanyGochuico-16June2014 24 Source: PwC “2013 Global Multi-channel Retail Survey”, 11000 respondents, 11 countries (France, Germany, The Netherlands, USA, UK, China, Switzerland, Brazil, Canada, Turkey & Russia).
  25. 25. 3 Who are the Best-in-Class OmniChannel Retailers? 25 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  26. 26. OmniChannelBest-in-ClassRetailers(US) OmniChannelRetailBestPractices©StephanyGochuico-16June2014 26 Source: Retail Info Systems “OmniChannel Readiness,” October 2013 #1 Apple & Nordstrom 45.8% | #2 Macy’s 37.5% | #3 Walmart 33.3% | #4 Target & Best Buy 20.8%
  27. 27. OmniChannelBest-in-ClassRetailers(UK) OmniChannelRetailBestPractices©StephanyGochuico-16June2014 27 Source: Webcredible UK “Omni-Channel Customer Experience,” November 2012 #1 Burberry | #2 Waterstones | #3 Debenhams | #4 Topshop | #5 Harrods #6 John Lewis | #7 Marks & Spencer | #8 Boots | #9 Next | #10 Ted Baker
  28. 28. OmniChannelBest-in-ClassRetailers(Global) OmniChannelRetailBestPractices©StephanyGochuico-16June2014 28 Source: Ebeltoft Group “Global Cross Channel Retailing Report, The (Un)connected Store,” 2012 COUNTRY RETAILER CATEGORY Australia Dick Smith Electrical goods Brazil Saraiva Electrical goods Canada Best Buy Electrical goods Chile Falabela General China Suning Electrical goods Denmark YouHeShe Fashion France FNAC Electrical goods Germany Conrad Electrical goods Italy Marco Polo Electrical goods Portugal Continente General Romania Domo Electrical goods Singapore Traceyeinny Fashion Spain El Corte Ingles General Switzerland Interdiscount Electrical goods Turkey Teknosa Electrical goods UK Debenhams General USA Walmart General
  29. 29. GlobalBenchmarkof OmniChannelPractices OmniChannelRetailBestPractices©StephanyGochuico-16June2014 29 Source: Dia-Mart Consulting and Ebeltoft Group, November 2013
  30. 30. GlobalBenchmarkof OmniChannelPractices OmniChannelRetailBestPractices©StephanyGochuico-16June2014 30 Source: Dia-Mart Consulting and Ebeltoft Group, November 2013 Incredible delay of the French General Retailers! The DRIVE is a brilliant invention…. But the OmniChannel issue has to be dealt with!
  31. 31. 4 What are the OmniChannel Challenges in France? 31 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  32. 32. OmniChannel Challenges in France 1. Price difference across channels 2. Order management system 3. Inaccurate inventory information 4. OmniChannel support from C-suite 5. Lack of communication about OmniChannel 6. Loyalty programs are not OmniChannel 7. Culture shock between RETAIL and DIGITAL 8. Store associates are not OmniChannel ready OmniChannelRetailBestPractices©StephanyGochuico-16June2014 32
  33. 33. OmniChannelChallengesin France 33 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 OFFLINE ONLINE MOBILE SOCIAL The HUMAN factor is the BIGGEST Challenge in OmniChannel RETAIL Operations.
  34. 34. 5 What are the OmniChannel Best Practices? 34 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  35. 35. 35 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  36. 36. OmniRetailMatrix1: Strategy 36 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  37. 37. Strategy:Customer 37 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. ” -Sam Walton, Founder of Wal-Mart Stores Inc. Walmart is present in 27 countries, total 10,942 retail units (4,203 in the US). Retailers must be Customer-Centric.
  38. 38. Strategy:TransversalOrganization 38 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Get Executive Buy-In and Evangelize OmniChannel
  39. 39. Strategy:TransversalOrganization 39 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Appoint an OmniChannel Director Hired Karen Dracou, ex-OmniChannel Director of John Lewis to head Tesco’s multi-channel team. Hired Burberry CEO Angelo Ahrendts to head Apple’s retail and online stores, joins Apple in the spring 2014. Hired Robert B. Harrison to be Chief OmniChannel Officer to oversee the integration of store, online and mobile operations.
  40. 40. Strategy:TransversalOrganization 40 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Equip all employees with OmniChannel strategy Source: Retail TouchPoints Survey 2012 Increase investments in Mobile Technology 36.7%, Product Merchandising 36.7%, Employee Training 34.7%.
  41. 41. Strategy:DevelopDigital Channels 41 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  42. 42. Datamust becentralizedon a singleplatform. 42 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 #1 Customers #2 Products #3 Inventory
  43. 43. InventoryChallenges 43 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: RSR Research, July 2012. Retailers with presence in the USA, Canada, Latin America, UK, Europe, Middle East, Africa & Asia Pacific.
  44. 44. Strategy:ObtainReal-timeInventoryVisibility 44 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Skyetek The Solution: Item-Level RFID Inventory is so much faster, more accurate, & long-term cost-effective solution
  45. 45. Strategy:ObtainReal-timeInventoryVisibility 45 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Weidenhammer The Solution: Item-Level RFID
  46. 46. Strategy:ObtainReal-timeInventoryVisibility 46 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Retailers using Item-Level RFIDs
  47. 47. Strategy:OptimizeOrderFulfillmentOperations OmniChannelRetailBestPractices©StephanyGochuico-16June2014 47 Situation from Best-in-Class OmniChannel Retailers
  48. 48. Strategy:OptimizeOrderFulfillmentOperations OmniChannelRetailBestPractices©StephanyGochuico-16June2014 48 RETAIL DISTRIBUTION CENTER E-COMMERCE/MOBILE DISTRIBUTION CENTER Situation in France…
  49. 49. Strategy:OptimizeOrderFulfillmentOperations OmniChannelRetailBestPractices©StephanyGochuico-16June2014 49 RETAIL DISTRIBUTION CENTER E-COMMERCE/MOBILE DISTRIBUTION CENTER The Solution: Ship from Anywhere SHIP FROM STORE
  50. 50. Strategy:OptimizeOrderFulfillmentOperations OmniChannelRetailBestPractices©StephanyGochuico-16June2014 50 The Solution: Ship from Store versus >50 km distance 0-5 km distance E-COMMERCE/MOBILE DISTRIBUTION CENTER
  51. 51. Strategy:OptimizeOrderFulfillmentOperations OmniChannelRetailBestPractices©StephanyGochuico-16June2014 51 The Solution: Ship from Store 1. Setup Distributed Order Management (DOM) technology 2. Setup Miniature Warehouse Management Systems (WMS). Stores become a mini distribution center for online orders. 3. Train all store associates for their “new” role.
  52. 52. Strategy:LoyaltyPrograms OmniChannelRetailBestPractices©StephanyGochuico-16June2014 52 Provide customers with Coupons, Loyalty Points, Loyalty Vouchers, Promotions, Instant rewards, … *Source: Deloitte National Research Survey and Loyalogy “Loyalty Plus Research Study” Jan 2013 88% of businesses with loyalty programs are more profitable than their competitors who do not use this solution.*
  53. 53. How to have360° Customer Insight? 53 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Alexis Lecanuet of Accenture
  54. 54. Strategy:LoyaltyPrograms OmniChannelRetailBestPractices©StephanyGochuico-16June2014 54 HIGH Employee Engagement = INCREASED Customer Loyalty Source: Demand Metric Benchmark Report “Employee Engagement: Revenue Growth Strategy for 2014” Dec 2013
  55. 55. OmniRetailSalesIncentive 55 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  56. 56. OmniRetailReturns Management 56 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  57. 57. Strategy:OmniChannelCampaigns OmniChannelRetailBestPractices©StephanyGochuico-16June2014 57 Source: Maxxing
  58. 58. OmniRetailMatrix2: Channels 58 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  59. 59. Channel: Webstore 59 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 • Webstore = Online Store = E-Commerce Site • Choice of a reliable E-Commerce platform is very important!
  60. 60. Channel: Webstore 60 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: NBS System “Benchmark of E-Commerce Solutions” June 2013 Use E-Commerce platforms with OmniChannel Capability Sales > €15M > €15M > €150M > €15M > €15M <€1.5M<€15M
  61. 61. SocialCommerce 61 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: AddShoppers / Graph Courtesy: BI Intelligence Social Apps tracks websites to determine sales revenue generated from social media sites.
  62. 62. SocialCommerce 62 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Unmetric “Social Media Shakedown of Top Brands“ April 2013
  63. 63. 63 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: conversationprism.com Are Facebook,Twitter,Pinterest,et al. the only ones who can impact retailer’ssales revenue? Check out THE CONVERSATIONPRISM.
  64. 64. 64 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: conversationprism.com
  65. 65. SocialCommerce If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends. -Jeff Bezos, CEO of Amazon 65 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 “
  66. 66. MobileCommerce Ecosystem 66 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 ©Stephany Gochuico
  67. 67. OmniRetailMatrix3: Technology 67 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  68. 68. OmniChannelStrategy 68 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Retailers must work with a System Integrator
  69. 69. 6 How to deal with Showroomers? 69 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  70. 70. How to deal with Showroomers? 70 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 • Price matching strategy • Exclusivity of brands • Customers want a personalized experience*  55% want their retailer to use prior purchasing to offer new promotions  43% want their prior purchases to result in new product recommendations  43% want their retailers to invite them to events  36% want their retailers to involve them in new product ideas. • Consumers are interested in new retail concepts that improve the shopping experience* *Source: IBM Institute for Business Value, May 2013, surveyed 26,737 shoppers in 14 countries (Japan, Australia, China, Italy, United Kingdom, United States, Brazil, France, Canada, Mexico, Spain, Chile, Germany and India).
  71. 71. How to deal with Showroomers? Customerswanta personalizedexperience 71 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Source: Capgemini Consulting “Digital Shopper Relevancy,” July 2012, 16000 respondents, 16 countries (Australia, Brazil, Canada, China, Finland, France, Germany, India, Italy, Mexico, Russia, Spain, Sweden, Turkey, UK, USA).
  72. 72. How to deal with Showroomers? 72 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 Develop Personalized OmniChannel Capabilities Source: RIS News Custom Research “OmniChannel Readiness”, October 2013
  73. 73. 7 How to be successful in implementing OmniChannel? 73 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
  74. 74. Give100%attentionto eachelementin OmniRetailMatrix1:Strategy OmniChannelRetailBestPractices©StephanyGochuico-16June2014 74
  75. 75. OmniRetailStatus123™ 75 OmniChannelRetailBestPractices©StephanyGochuico-16June2014 OmniRetail Status123™ will enable retailers to assess their own OmniChannel status, and consider the next steps in order to achieve greater efficiency, enhance the customer experience, and expand retail business to the fullest extent. STATUS 1. CUSTOMER The secret of successful omnichannel retail business is to give customers what they want. The customer must be at the heart of business. 1 Have a centralized customer data (name, address, telephone number, birth date, …) 1 2 Know which channel each customer prefers to use - Store, Web, Mobile, Social 1 3 Know the customer’s purchase history 1 … … 116 Have one Channel Manager specializing in each channel’s technology 1 117 Technology solutions accompany the business unit but not vice versa. 1 TOTAL SCORE OUT OF 117: 117
  76. 76. OmniRetailDifferentiators 1. Customer service 2. Customer experience 3. Employee Engagement leads to Customer Loyalty 4. K.I.S.S. Principle 5. Innovation at All Times OmniChannelRetailBestPractices©StephanyGochuico-16June2014 76
  77. 77. OmniRetailDifferentiator Customerservice OmniChannelRetailBestPractices©StephanyGochuico-16June2014 77 The best customer service is if the customer doesn’t need to call you, doesn’t need to talk to you. It just works.” -Jeff Bezos, CEO of Amazon “
  78. 78. OmniRetailDifferentiator Customerservice OmniChannelRetailBestPractices©StephanyGochuico-16June2014 78 Lousy Customer Service Costs UK Businesses £12 Billion a Year.” -Our Social Times, 29 May 2013 “
  79. 79. OmniRetailDifferentiator Customerexperience OmniChannelRetailBestPractices©StephanyGochuico-16June2014 79 You’ve got to start with the customer experience and work back toward the technology – not the other way around.” -Steve Jobs at the World Wide Developers Conference in May 1997 “
  80. 80. OmniRetailDifferentiator Customerexperience OmniChannelRetailBestPractices©StephanyGochuico-16June2014 80
  81. 81. OmniRetailDifferentiator Customerloyalty OmniChannelRetailBestPractices©StephanyGochuico-16June2014 81 Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.” -Chip Bell, Founder of Chip Bell Group “
  82. 82. OmniRetailDifferentiator OmniChannelRetailBestPractices©StephanyGochuico-16June2014 82 That’s been one of my mantras — focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” -Steve Jobs “ KISS = Keep It Simple, Stupid.
  83. 83. OmniRetailDifferentiator OmniChannelRetailBestPractices©StephanyGochuico-16June2014 83 Products don’t kill business but failure to adapt quickly to a new ecosystem does.” -Stephany Gochuico “ Innovation at all times.
  84. 84. OmniChannelRetailBestPractices©StephanyGochuico-16June2014 84 OmniChannel:expensive,long,difficult,energyconsuming. Inevitable…
  85. 85. Retailersestimatethey lose$65M (€47M)for every billion dollars(€721M) in revenue due to a lack of OmniChannel readiness.” OmniChannelRetailBestPractices©StephanyGochuico-16June2014 85 Source: Retail Info Systems “OmniChannel Readiness,” October 2013 “
  86. 86. Thankyou foryourattention. Pleasedropme alinewithyourfeedbackorquestions. Stephany GOCHUICO (Looking for a new challenge in the digital/high-tech sector) Twitter: @stephgo77 E-mail: stephgo@rocketmail.com LinkedIn: www.linkedin.com/in/stephanygochuico Blog: www.omniretail-experts.com 86 OmniChannelRetailBestPractices©StephanyGochuico-16June2014
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This research work provides retailers practical insights, real-world strategies, solutions, and recommendations to improve customer experience, increase business results and maintain competitive advantage in the retail industry. CONTENTS 1. Why and what is OmniChannel Retail? 2. What are the consumer behaviours? 3. Who are the Best-in-Class OmniChannel Retailers? 4. What are the OmniChannel Challenges in France? 5. What are the OmniChannel Best Practices? 6. How to deal with Showroomers? 7. How to be successful in implementing OmniChannel?

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