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The Omnichannel Imperative
Agné Vezbergiené
Lieselotte van TieghemVlerick Business School - Selling in the Digital Era
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Online checkout in real life
Grocery shopping
© 2016 Monitor Deloitte Belgium
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Table of contents
01/ Defining Omnichannel
02/
03/
04/
The imperative of Omnichannel
The challenges of implementing Omnichannel
The future of Omnichannel
© 2016 Monitor Deloitte Belgium
PART 1
DEFINING OMNICHANNEL1. Defining Omnichannel
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Sales channels have evolved from Brick & Mortar to an integrated set of channels reinforcing each other
e-Commerce
“We need to sell on-line”
Multichannel“Many customers shop
across channels”
Omnichannel“Relevant products and
services everywhere”
Physical Stores
“Customers will come to us”
Last Century
Brick & Mortar
e-Commerce
Mobile
Social
Digital Apps
Turn of the Century Yesterday Right now!
Interaction Points
Consumers think of shopping as one experience, whether online, in-store or on a mobile device. So must businesses.
Reinforcing interactions
© 2016 Monitor Deloitte Belgium
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Throughout that evolution, four key characteristics have become the new normal:
The interactions are seamless as they deliver a consistent experience across all integrated channels
Allows the customer to have a personalized end-to-end experience
By using the channel of choice and to hop between channels when needed
In order to create this customer experience data is a critical ingredient
© 2016 Monitor Deloitte Belgium
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Bringing us the following definition…
Omnichannel provides a seamless marketing, sales or
service experience, personalized around the
customers’ needs and preferences, allowing them to
complete their journeys using their channels of choice,
moving seamlessly between channels and devices and
achieving their objectives simply and quickly.
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The Burberry example
Omnichannel in action
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Burberry video
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The Burberry example
Omnichannel in action
Customised Chatter platform: Burberry Chat
Social listening that can turn into a conversation with an agent in real time
Mobile first – even for the runway experiences
Store of the future – it feels like you are walking into a website
Blurring the lines between physical and digital
© 2016 Monitor Deloitte Belgium
Omnichannel is as relevant for B2B companies as it is relevant for B2C
2. The imperative of Omnichannel
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A number of trends has caused omnichannel to rise to the top of many CEO’s agenda
Why omnichannel?
Rising customer expectations
New competition in the sector
The advance of technology
The increasing influence of customer experience
© 2016 Monitor Deloitte Belgium
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The most innovative and customer-focused companies set new standards of convenience, that are quickly considered as a ‘given’ by consumers
Why omnichannel?
New competition in the sector
The advance of technology
The increasing influence of customer experience
© 2016 Monitor Deloitte Belgium
Rising customer expectations
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Increased information availability, and more touchpoints with brands, give more power to customers
1. Rising customer expectations
More Knowledgeable
More Demanding
More Mobile
More Interactive
More Collaborative
More Empowered
© 2016 Monitor Deloitte Belgium
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More Mobile than ever: Over the last three years, smartphone and tablet ownership have almost doubled
1. Rising customer expectations
74%
39%
30%
5%
1%
78%
74%
52%
10%
3%5%
3%
49%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Laptop Smartphone Tablet eReader Smart
watches
Fitness
bands
VR headset Desktop Any
computer
2013 2016
N/A
Devic
e p
en
etr
ati
on
N/A N/AN/A
Source: Deloitte BE Global Mobile Consumer Survey 2016© 2016 Monitor Deloitte Belgium
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Channel mix and match: 23% of people use their mobile phone to browse shopping websites/apps on a weekly basis, but only 4% use their phone to pay for a product
1. Rising customer expectations
Source: Deloitte BE Global Mobile Consumer Survey 2016
23%
39%
30%28%
17%
12% 12%
4%2%
6%7%
2%4%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
All 18-24 25-34 35-44 45-54 55-64 65+
Browse shopping websites/apps Pay for a product
© 2016 Monitor Deloitte Belgium
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Digital Fluency across all age groups: High smartphone and tablet penetration within older generations
1. Rising customer expectations
Source: Deloitte BE Global Mobile Consumer Survey 2016
78%74%
52%
10%
20%
3% 2% 3%5%
2%4%
89% 90%
46%
7%
19%
5% 4% 4%5%
4%7%
72%
57%
48%
12%
16%
1% 1% 1%3%
1%
0%
20%
40%
60%
80%
100%
Laptops Smartphone Tablet eReader Smart TV SmartThermostat
SmartLightning
Smartwatches
Fitnessbands
Vital signstracker
VR headset
Devic
e p
en
etr
ati
on
by A
ge
BE Population 18-24 55+
© 2016 Monitor Deloitte Belgium
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1. Rising customer expectations
Service and loyalty
Care via social
Augmented reality
Property ecosystem
Remote diagnostics
Payment integration
Marketplaces
Social communities
Travel planning & messaging
Real-time availability
Gaming ecosystem
Some best-in-class examples…
© 2016 Monitor Deloitte Belgium
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1. Rising customer expectationsCustomers have no mercy for companies that show bad behaviour
© 2016 Monitor Deloitte Belgium
13 million views on youtube
150.000 within one day
10% fall in stock price
$ 180 millon value lost
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Digital pure-plays are disrupting the market
Why omnichannel?
Rising customer expectations
New competition in the sector
The advance of technology
The increasing influence of customer experience
© 2016 Monitor Deloitte Belgium
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Example of the Telecom ecosystem: Various new players are now competing with traditional operators
2. New competition in the sector
Customers
Networks
Customers
Networks
Other services
Telecom 2000 Telecom 2015
Traditional telecommunications Digital pure-plays
© 2016 Monitor Deloitte Belgium
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New technologies are easing the implementation of omnichannel
Why omnichannel?
Rising customer expectations
New competition in the sector
The advance of technology
The increasing influence of customer experience
© 2016 Monitor Deloitte Belgium
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4. The advance of technology
Emerging technology capabilities
ANALYTICS & REAL-TIME DECISIONING
SOCIAL
PERSONALISATION AND TRIGGER
BASED ENGAGMENT
CUSTOMER EXPERIENCE MONITORING
AGILE DELIVERY
GAMIFICATION
CLOUDSOLUTIONS
MOBILE DEVICES
© 2016 Monitor Deloitte Belgium
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The shopping experience becomes part of the total value offered
Why omnichannel?
Rising customer expectations
New competition in the sector
The advance of technology
© 2016 Monitor Deloitte Belgium
The increasing influence of customer experience
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The process of shopping becomes part of the total value offered
4. The increasing influence of customer experience
Retail as environment Anytime, anywhere
Integrated platforms Personalization
© 2016 Monitor Deloitte Belgium
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If performed right, the onmichannel experience will increase brand loyalty and will create true brand ambassadors
4. The increasing influence of customer experience
© 2016 Monitor Deloitte Belgium
3. Implementation of Omnichannel
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Where is your company today and where do you want to go?
Defining your omnichannel ambition
Isolated Disconnected Variable Integrated Dynamic
© 2016 Monitor Deloitte Belgium
What would be the first three hurdlesyou take to level up?
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… and following foundational capabilities are required to bring to life the omnichannel experience
360° view of
the customer
Omnichannel
capabilities
Real time
enterprise
inventory
Enterprise
content
management
&
deployment
Seamless
commerce &
service
Voice of the
customer
Omnichannel
analytics,
KPIs and
incentives
Omnichannel
store
enablement
Omnichannel
R&D and
innovation
Single view
of the
product
© 2016 Monitor Deloitte Belgium
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Seamless CommerceCustomers are becoming more and more independent and don’t rely solely on Sales anymore to guide them in the purchasing process
B2B customers search online for:
73%
Product pricing
60%
Reviews from their peers
56%
Company and brand reviews
Search engines are a top threeinfluencer in the areas ofawareness, discovery andresearch among B2B buyers
buyers will read an average of 10pieces of content beforemaking purchases
Percentage of B2B
buyers who research
products online before making a
purchasing decision
73%that's how far the
average B2B buyer
is through the purchase decision
before engaging a supplier
57%
Source: B2B's Digital Evolution – CEB and Google insights (Feb 2015)The Digital Evolution in B2B Marketing – Marketing leadership council (Oct 2014)
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Different marketing channels strongly influence the purchase decision in a B2Cenvironment
Seamless Commerce
© 2016 Monitor Deloitte Belgium
Display click
Social
Referral
Organic search
Generic Paid search
Brand paid search
Direct
More often an
assist
interaction
More often a
last
interaction
marketing channels in the hobbies & leisure industry that influence the purchase decision
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However these marketing channels are becoming equally important influencers in a B2B environment and are still too often neglected
Seamless Commerce
© 2016 Monitor Deloitte Belgium
Display click
Social
Referral
Organic search
Generic Paid search
Brand paid search
Direct
More often an
assist
interaction
More often a
last
interaction
marketing channels in the business & industrial industry that influence the purchase decision
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Large audience
Emotional Content
Specific audience
Specific USP’s
Qualitative leads
Clear CTA Personal stories
Happy customers
/ employees / influencers
SEG
MEN
TA
TIO
N
PER
SO
NA
LIS
ATIO
N
EX
PER
IEN
CE
AM
PLIFIC
ATIO
N
Marketing Sales IT & Sales & Operations
Customer service
Omnipresence of data leading to insights
Awareness Consideration Selling Advocacy
New Business ModelsRequires organizations to transform from separate silos to a structure that is conducive to the omnichannel experience
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Creating a customer-centric mindset
Aligning business processes
Aligning metrics & KPI’s
Aggregating data into one central location
• Ensuring your brand promise consistently across all touch points
• Aligning customer touchpoints with employee interactions
New Business ModelsSome internal & external conditions need to be met to ensure a successful omni-channel business model
Sure… but how about my targets?
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Measurability
An attribution model is the rule, or the collection of rules, that entails the value
score of sales and conversions attributed to contact points in conversion paths.
CEO CIO CMO CFOCSO
Set overall business objectives
Ensure measurement strategy
Bottom line impact of marketing
Customer data & systems owner
Intelligence provider for other
departments
Budget parameters & cost justification
Impact of marketing activities on bottom line
Owners & drivers of initiatives
Understand how attribution will integrate with business objectives
Strategic measurement decisions
Digital attribution lies within the marketing department
Last interaction model First interaction model Time decay
Not
true
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MeasurabilityUnderstand what your customer is talking about & looking for…
Social media feeds Social keywords
“In 10 years an increasing number of customers will trust sales people
enough to post their key business needs and initiatives on social sites
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MeasurabilityAnd know what your competition is talking about
WHO ‘S WINNING IN SOCIAL MONITOR – WILDFIRE by google
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Create an integrated place for
data that empowers the
company to make informed
business decisions more
quickly, both global and local,
by bringing a magnitude of
sources.
Value existing data models &
algorithms by bringing them to
life visually and making them
easily accessible
Measurability
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The implementation of omnichannel entails the creation of new future proof business models to provide a seamless, measurable customer experience…
Seamless commerce New business models
Measurability Future proofing
Provide brand consistency and uniform customer service at every level of interaction
Shift from separate silos to a structure that is conducive to the omnichannel experience
Measure success through the eyes of the consumer
Be agile, flexible and scalable and make sure that the technology will never grow stale
© 2016 Monitor Deloitte Belgium
4. The future of Omnichannel
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A new set of exponential technologies will strengthen the case for omnichannel by facilitating interactions between channels
Super Disruptors New Exponentials
Artificial Intelligence Genomics
Connected Home Internet of Things
Crypto-Currencies
Robotics3D Printing
Drones
Mobile Payments
Oculus RiftWearables
Electric and Connected Cars
Mobile
Analytics
Social
Cloud
Web
Content
© 2016 Monitor Deloitte Belgium
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9 Omnichannel predictions
© 2016 Monitor Deloitte Belgium
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Enterprise inventory will quickly expand to ecosystem inventory
Prediction 1: Ecosystem Inventory
Recent examples
Macy’s has executed enterprise inventory that has helped to enable their Omnichannel agenda
Amazon connects thousands of suppliers & buyers in several sectors< 2 day delivery guarantee for 75% of products offered. Potential to connect / chat with suppliers & experts
Store
Assortment
Digital
Assortment Ecosystem
Inventory
Wholesale
Third partiesFranchisees
Ecosystem inventory Enterprise Inventory
Online
EnterpriseEnterpriseAssortment
Owned Stock
Store Assortment
Channel Inventory
© 2016 Monitor Deloitte Belgium
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Products & services personalized to the individual customer will become the norm
Prediction 2: Customized products and services
Recent examples
Normal uses 3D printing to print customized ear plugs for customers
Nike allows customers to personalize shoes to the style and colorspecifications of their choosing
Co-CreateCustomize
Delivers a customized product or service that is specific to the customer’s need and wants
Fosters a sense of belonging and affiliation to the brand as a contributor and co-creator
© 2016 Monitor Deloitte Belgium
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Each customer will be known by the retailer and engaged according to specific a context and preferences
Prediction 3: Customer recognition & contextualization
Recent examples
Kohl’s has invested heavily in its personalization agenda by implementing a content management solution that automates the assembly of marketing
Starbucks loyalty program• Personalized rewards & status • Partnerships with Spotify, Lyft • Mobile order & pay solution
Recognition Contextualization
Tailored interactionsUnified view of the
customer
Mobile
Store Social
Call Center
Website
© 2016 Monitor Deloitte Belgium
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Commerce will become pervasive at every point of inspiration
Prediction 4: Commerce Everywhere
Commerce is becoming a seamless part of experience, as customers are increasingly able to transact at every point of inspiration from video to social to chat
Recent examples
Instagram has integrated personalized ads which allow customers to easily purchase items with a “buy now” button
Asos has integrated commerce into video to allow customers to seamlessly shop when they are inspired by articles
© 2016 Monitor Deloitte Belgium
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Prediction 5: Augmented Reality, a new dimension of interaction and sales
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https://www.youtube.com/watch?v=09vxKN1zLNI
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Transaction will no longer be an event but more a seamlessly integrated part of the experience
Prediction 6: Change of the Point-of-Sale
Recent examples
Apple uses Touch ID (fingerprint sensor) to authorize purchase from iTunes at stores
Toshiba has developed Touchless commerce by utilizing 3D tech & facial recognition to scan face / items and charge CCs
No linesChanging role of the
store associateNo traditional Point-of-sale
© 2016 Monitor Deloitte Belgium
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Role of the physical store will fundamentally change as the barriers between physical and digital will blur
Prediction 7: Store of the future
Recent examples
Waitrose consistently refines their in-store experience in order to create a more personal, immersive brand experience
Sephora launched sensorium – a pop up museum offering a solution to recommend a personalized fragrance
Socially impactfulExperience first Digitally pervasive
© 2016 Monitor Deloitte Belgium
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Prediction 8: Interaction of the future
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Retailers will soon be required to act and behave like media companies
Prediction 9: Rich content and media
DEG
REE O
F D
ISRU
PTIO
N
TIME1960 1970 1980 1990 2000 2010
EDI
Michael Aldrich invents concept of teleshopping
Gateshead SIS / Tesco is first B2C online shopping
Electronic Data Exchange facilitate e-transactions
Modern day ecommerce
PRINT CONTENT
TV CONTENT ONLY
ADDITIONAL CONTENT FOR WEB PRODUCT MARKETING
ADDITIONAL CONTENT FOR MOBILE
DIGITAL STORE and PERSONALIZATION
UN
KN
OW
N F
RO
NTIE
RS
Inspirational Marketing
Multichannel Commerce
Personalized Commerce
or
Content is not longer simply about sales…The average person spends 3hrs 40mins each day on digital
devices, and only 20mins reading traditional print
Recent examples
Primark has invested in digital assets / campaigns to create UGC (e.g., Primania)
Burberry previews new collections on Snapchat ahead of key fashion events
© 2016 Monitor Deloitte Belgium
Q&A
© 2016 Monitor Deloitte Belgium
