JDA Innovation Forum: Seamless Omnichannel Campaigns Revenue Model

Profit Distribution in
Omni-Channel Retail.
Milan, 30 May 2013

Copyright © 2012 Accenture All rights reserved. 2
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Consulting
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Consulting
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Accenture As Business Innovation Partner
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Management of Business
Processes
Comprehensive Know-how through
experts and projects across the e2e
value chain
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Introducing Accenture Interactive the e-commerce CoE
India Delivery
Centers Consumer
Goods
(Hyderabad)
Technology
Labs
Bangalore, India
Operations
(Madrid ISC)
CRM, S&M,
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(Milan ISC)
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Excellence
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Delivery
Center
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Labs
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Business Showcase
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Center
(Napoli)
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Global Delivery Network
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Technology
Labs
Beijing, China
BI, ERP, Agri
(Chicago, ISC)

Omnichannel is a new strategy
to follow the digital-customer
through a tangled customer-journey.

Online
On the go
In stores
In touch with
social media
networks
• Customer journey became
dynamic, accessible and
continuous. Now it is Non-Stop.
• Customers are no longer enter
a channel. Instead, they are
continuously in the channel.
• Thus customer’s focal point is not
anymore purchase but
evaluation and interaction.
New customer is now always connected

SEARCH
Natural Search,
SEO
Paid Search,
SEM
Search
Capability
Landing Page
Optimisation
iMEDIA
Standard
Display Ads
Rich Media
Ads
Broadband
Video
Web TV
WEB SITE
Branded
Sites
Affiliate
Site
Promotional
Site
Usability &
Accessibility
Analytics,
Web Site
Optimisation
PARTNERSHIPS
Content
Syndication
Comparison
Sites,
Shopping
Directories
Sponsorships,
Co-branding
Philanthropic
Cause
Marketing
E-COMMERCE
Direct to
Consumer
Where to Buy
Functionality
Branded
Storefront
Sell Direct on
Third-Party Site
Technical
Platform
MOBILE
Mobile
Browser
Mobile Aps QR Codes, GPS
RFID POS
Text
Messaging
CRM
Loyalty
Platform
Behavioral
Targeting &
Acquisition
Cross-sell
Engine
Retention &
WinBack
Campaigns,
Email,
Reporting
SOCIAL
Online Video Communities,
Answer Forums
Word-of-mouth,
Buzz, Referrals
Wikis, blogs,
Crowd Sourcing
Product
Innovation
Multichannel Customer Journey
DIGITAL CAPABILITIES TO LEVERAGE
OFFLINE
FOUNDATION
AWARENESS
ADVOCACY
PURCHASE
CONSIDERATION
LOYALTY
ONLINE
Identification
of Need
Search for
Solution
Evaluate
Alternatives
Product
Details
Visit to
the store
Purchase
Decision
Visit to
the
brand
website
Compare
Offers
Online
Purchase
Social
Interaction
Online
Registration
Mobile
App
Offline
Purchase
19% 81%Time Spent
Customer is exploring multi-channel experience

• Digital customer is using the
SOcial LOcal MObile interaction
on daily base
• In-store price comparison, rating-
&-review and gamification
influence purchase decision and
drive additional customer
• There are new features to map the
malls (even floors) to drive the
customer to theirs preferred store.
Driving traffic to store with digital and SO.LO.MO.

Business-Case: Google Maps Indoor

ONLINE
Single shopping mission across channels
• The retailing experience is
evolving from Multi-channel to
Omni-channel
• Distinct sales channels are giving
way to a single, all-
encompassing business model
• The customer experience could
begin and end everywhere
• Omni-channel approach builds
seamless operations for a
consistent experience

Business-Case: in-store comparison

Business-Case: Best Buy in-store comparison

Store format is evolving in shopping environment
• Stores role is changing since the
customer is being connected
24/7
• Enhancing the experience from
self-service to assisted service
• Various channels in store to
purchase from handing a simple,
written shopping list to sales
assistants to shopping online
within the store.
• Reinforcing brand’s appeal
exposing brand relevant added
content
Customer
places order
online
Customer
notified of
order status
Order is
delivered to
the store
Customer
collects order
at store

Business-Case: Argos full channel activation

Business-Case: House of Fraser omni-fashion

Shop assistant
interact with
Tablet
Customer
receive order
at home
Customer
Collects the
order in store
Customer track
the order with
Smartphone
• Empower store associates
• Real-time order fulfillment and
flexible returns
• There is an increased
collaboration with operations
across channels
• Rethink store processes,
reconsider talent and manage
labor differently.
Store format is evolving in shopping environment

Business-Case: Nike-Fuel purchasing everywhere

The evolution of the elastic supply chain
• Make visibility and dynamic
fulfillment mandatory
• Emphasize returns management
providing non-stop customer’s
path to return is just as fluid as
the path to purchase
• The management of inventory
should be done forward,
backward and sideways, in order
to have the best flexibility in the
supply chain

Business-Case: Celio* showrooming

Enhancement of customer experience on 360°
Customer experience
teams could be located
within marketing and
influence merchants from
there
Customer experience
team could be fully
embedded in
merchandising
with an
equal voice
at the table
Separate customer experience
function with individual team members
matrixed into each merchant buying
Team
• Infuse Merchandising with
customer advocacy
• Customer insight group
embedded with Merchandising to
incorporate insights at the point
and place of decision – eliminate
“insight islands”
• Trade product centricity offering
the right price, assortment,
promotion, AND customer
experience

Business-Case: Nasty Gal a merchandise-experience

Business-Case: Stories.com e-commerce curation

Business-Case: In-store Augmented Reality fashion

Business-Case: In-store Augmented Reality retail

Business-Case: Google Glasses

Retailers must change the game to remain relevant.
They must become seamless themselves.

Omnichannel add a level of

Business strategy transformation in Omnichannel scenario

How to sell more and
more to our
customers?
Which processes do
we have to implement
to increase our
customer spending?
How we can verify the
success of our online
sales strategy?

KPI
Target
Actions

KPI
Target
Actions
•Acquisition
•Re-activation
•Viralization
Click-through
rate?
Visits volume

KPI
Target
Actions
The solution to E-commerce’s main issues
•Offering
•Promotions
•Delivery
•Customer-care
Conversion
rate?
Conversion
•Acquisition
•Re-activation
•Viralization
Click-through
rate?
Visits volume

Actions
•Product mix
•Category mix
•threshold
Ticket
composition?
Profitability
•Offering
•Promotions
•Delivery
•Customer-care
Conversion
rate?
Conversion
•Acquisition
•Re-activation
•Viralization
Click-through
rate?
Visits volume

Actions
•Product mix
•Category mix
•threshold
Ticket
composition?
Profitability
•Info-commerce
•R&C / P&P
•In-store-comp.
•SO.LO.MO
R.O.P.O.
rates?
Channeling
•Offering
•Promotions
•Delivery
•Customer-care
Conversion
rate?
Conversion
•Acquisition
•Re-activation
•Viralization
Click-through
rate?
Visits volume

Omnichannel needs a new approach
that transforms the organization
from silos of technologies and
process to a harmonic ecosystem.

Integrating operations for a customer conversation
The Enterprise
Channel Operations
Merchandising
Marketing
Supply Chain
Stores Digital Customer
Center
Services
BusinessFoundation
TechnologyFoundation
…eliminate channel boundaries
• Assortment and Pricing are
integrated across channels
• Marketing presents a cohesive
“brand” for the new non-stop
customer experience
• Ensure visibility and dynamic
fulfillment where inventory is
managed at enterprise level

Omnichannel redefine functions role and platforms
Customer
Planning
Planning Warehouse
Warehouse
Warehouse
Marketing
Marketing
E-Commerce
Store
Planishment
Till
PSP
Collect
in store
Home
delivery
Each channel is driving the technology and the process definition.
E-CommerceHeadquarterStore

Customer
E-CommerceHeadquarterStore
Omnichannel redefine functions role and platforms
Shared stock
WarehousesMarketing
E-Commerce
Store
Planishment
Till
PSP
Collect
in store
Home
delivery
Planning Mobile
Drop
shipment
Each channel is driving the technology and the process definition.
Omnichannel means integration of objectives, methods and platforms.
Omnichannel
Shared stock

Salesvolume
«Body»
Product variety
«Long Tail»
Top seller Niche product with higer margin
Cross Channel Commercial Model
The commercial strategy for an Omnichannel journey
• To reach the business objectvies
we need to balance:
• The top selling product that
drive volumes
• Niche products that preserve
margins
• To grant the success of an
eCommerce project we need to
design a cross-channel
strategy to grant:
• Turnover
• Profitability

The commercial strategy for an Omnichannel journey
Historical
Data
Offline
Benchmark
Online
Benchmark
Market
Research
Sources
Assortment
Optimisation
Price
Optimisation
Sales Forecasting
Assortment
Definition
Profitability
Analysis
Revision of the
Sets
Price
management
Rules
Base Price and
Margins
Flexibility
Analysis
Baseline
Normalisation
Forecast of the
Volumes of the
Sales
Promotional
Uplift
Calculation
Promo
Optimisation
Simulation
Promotional ROI
Definition of the
Promotional
Tactic
Promotional
Strength
Capabilities
Online
Search
Trend
Cross Channel Commercial Model
1 2 3
4
• To reach the business objectvies
we need to balance:
• The top selling product that
drive volumes
• Niche products that preserve
margins
• To grant the success of an
eCommerce project we need to
design a cross-channel
strategy to grant:
• Turnover
• Profitability

Digital acquisition strategy
• We can influence the visitor volume
using different acquisition
channels and performance
strategies.
• The conversion rate is influenced
by a mix of commercial and UX
elements.
• The average ticket is influenced by
assortment strategies.
• Customer reactivation
is strategic

Digital acquisition strategy in an omnichannel environment
• We can influence the visitor volume
using different acquisition
channels and performance
strategies.
• The conversion rate is influenced
by a mix of commercial and UX
elements.
• The average ticket is influenced by
assortment strategies.
• Customer reactivation
is strategic
Click
Through
Channeling
Traffic
Turnover
Commercial
Levers
Transactions
Organic Lead
Awareness
Information
Acquisition
Customer
Thrust
User
Experience
Reactivation
Conversion
Phisical
(store)
Digital /
Mobile

A new measurable omnichannel ecosystem
• The omnichannel approach,
enabled by technological
platforms, set with cross-
functional process, permit to
create more efficient
commercial strategy.
• The Omnichannel ecosystem
will measure the relation between
actions (operative cost) and the
redemption (returns) singling-out
the duly profitability.
Channels
Store
R&C
On-line
CategoryX
CategoryY
CategoryZ
Unsoldstock
Mobile
Quality
& Service
Assortment
Price
Product Deatil
(newest & best)
Service
(eg: installation)
Couponing
Pure Player price

Channels
Store
R&C
On-line
CategoryX
CategoryY
CategoryZ
Unsoldstock
Mobile
Quality
& Service
Assortment
Price
Product Deatil
(newest & best)
Service
(eg: installation)
Couponing
Pure Player price
Couponing to drive
in stores
I L L U S T R A T I V E
• The omnichannel approach,

Channels
Store
R&C
On-line
CategoryX
CategoryY
CategoryZ
Unsoldstock
Mobile
Quality
& Service
Assortment
Price
Product Deatil
(newest & best)
Service
(eg: installation)
Couponing
Pure Player price
Outlet on-line • The omnichannel approach,

Leverage on commercial communication synergy
2 weeks 2 weeks 2 weeks
Communication effectiveness through flyer
Communicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS)
  
• In an Omnichannel environment retailer could use a different approach to
improve the declining performance of the traditional strategies.
• Digital marketing mix will influence all the target: customer traffic, conversion, and
profitability driving customer through the different channels in a measurable way.
Flyer Flyer Flyer

Leverage on commercial communication synergy
2 weeks 2 weeks 2 weeks
Communication effectiveness through flyer
Communicationd efffectiveness in tegrating flyer and one-to-one push (DEM+SMS)
PUSH ACTIVITIES
Mobile Digital
PUSH ACTIVITIES
Mobile Digital
PUSH ACTIVITIES
Mobile Digital
  
Flyer Flyer Flyer
• In an Omnichannel environment retailer could use a different approach to
improve the declining performance of the traditional strategies.
• Digital marketing mix will influence all the target: customer traffic, conversion, and
profitability driving customer through the different channels in a measurable way.

So what I need to do to become a
real seamless omnichannel
leading company?

The next five action to became seamless
1. Omnichannel is not rocket
science
2. Acknowledge the burning
platform
3. Define customer
experiences strategy
4. Identify digital and
physical relations
5. Create a new measurable
ecosystem

Thank you !
Federico Gasparotto
Digital Marketing Offering Lead
Accenture Interactive
Tel: +39-331-7550490
@: federico.gasparotto@accenute.com
Blog: www.gasparotto.biz
IM: federico.gasparotto

JDA Innovation Forum: Seamless Omnichannel Campaigns Revenue Model

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