Omni-Channel (R)etail Evolution

Omni Channel: The (R)etail EvolutionW h a t ?
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Omni-channel means our stores, website and mobile
devices are all working in unison- and seamlessly
behind the scenes – to the benefit of the customer.
We are driving the customer online and online
customers into the stores. We are using mobile to
feed both stores and online.
- Macy’s Inc.
However….

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Omni-channel is to create a
seamless unified experience across
ALL physical & digital channels.
The Goal: to become
Device, Channel & Location agnostic
Omni-Channel is just Multi-Channel/Cross-channel!
NOT

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Traditional E-Commerce Multi-Channel Omni-Channel
The Business model evolution
Customers shop at
brick & mortar stores
Customers shop
online through
e-commerce websites
Customers shop via
multiple channels:
retail stores & online
Customers engage
anywhere via
integrated, seamless
experiences
There is a clear trend in many industries toward the use of
multi-channel approaches to engaging with customers.
But in focusing on multi-channel, companies may be overlooking
a more fundamental need—for a seamless, omni-channel approach
that provides a single, unified experience for the customer
across all channels. #
#Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’

Omni Channel: The (R)etail EvolutionW h y ?
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Because Consumers Shop…
ANYTIME
ANYWHERE
ANY DEVICE

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Browse offline Buy Online
Consumers are diversifying the way they shop
for and acquire goods, becoming increasingly
open to buying both online and in-store
depending on their needs at time of purchase.
A significant number of shoppers who intend
to buy their item in the store, ultimately
purchase online – primarily due to price and
convenience.
“Showrooming”
Today’s consumer is sophisticated
and opportunistic, navigating
between store & online environments
interchangeably to meet their
shopping needs of the moment.
- Jill Puleri, Global Retail Leader
(IBM Global Business Services)
Image credits & Source: IBM Institute for Business Value survey

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Understanding Cross-Platform
Consumer Behavior
• A large number of active consumer are
multi-screeners. Most of consumers’ time
is spent in front of a screen – computer,
smartphone, tablet and TV
• The device we choose to use is often driven
by our context: where we are, what we want
to accomplish and the amount of time
needed
• Smartphones are the backbone of our daily
media interactions. They have the highest
number of user interactions per day and
serve as the most common stating point for
activities across multiple screens
The New
Multi-Screen World
Image credits & Source: Google Report ‘The New Multi-Screen World’

Omni Channel: The (R)etail Evolution
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Consumer Touch points
Consumers are already
sourcing information in
multiple ways- brands need
to ensure that they are
present where the consumers
are looking…
W h y ?

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Lines between offline & online
shopping experiences are blurring
Online & offline shopping experiences coexist
- across pricing, functionality, and promotions
• Research, View, Purchase: The shopper's
journey looks less like a funnel and more like
a flight map.
• People are shopping smarter: Shoppers
are using online & showrooming to make an
informed purchase.
• Trusted connections are coming online:
Connections are happening both online and
offline. People are sharing their opinion on
products not just with a group of friends,
but with millions of people.
‘Seamless’ Shopping
Image credits & Source: Google & Ipsos Holiday Shopping Intentions Study
The Path to purchase will have
many touch points

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The New, Non-Linear Purchase Journey
Image credits & Source: Retail touch points exposed (Slideshare presentation)
Awareness

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Awareness
Consideration

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Awareness
Consideration
Purchase

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• The customer’s journey is now DYNAMIC:
A non-linear path to purchase as consumers enter and exit
relationships with brands via much less predictable points, or as
they circle back to choices made previously.
• The journey is more INFLUENCED:
More content than ever is being put in front of customers, It is
available anytime and anywhere, and it can come from or through
anyone.
• The journey is CONTINUOUS:
The touch points consumers are exposed to are “always on.”
Evaluation/discovery & not necessarily purchase is the focal point.
Consumers’ journey has fundamentally changed in
3 significant dimensions:
Source: Accenture report ‘The New Omni-Channel Approach to Serving Customers’

Omni Channel: The (R)etail EvolutionConsumer
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Old Consumers vs. New Consumers
Lowest Price
Waiting for solutions
‘What’s in it for me?’
Seeking more ‘stuff’
Trusts marketing messages
‘on the box’
Passive recipient of brand
communications
Total Value
Demanding solutions
‘What’s in it for me?’
Seeking meaningful Experiences
Looks at ingredients/information
‘on the back of the box’
Active co-creators of brand
content, products & experiences
The new consumer is a value-aspirational, practical purchaser. They purchase with a
purpose but are unwilling to make practical trade-offs especially in a touch economy.
Image credits & Source: iqmetrix.com

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Who is the New-Age Consumer?

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Customers are becoming more complex:
• MORE KNOWLEDGEABLE thanks to Internet accessibility and online consumer-
created content and social networks.
• MORE DEMANDING due to customers’ redefinition of what value means to them.
For example, time-compressed consumers are increasingly prioritizing convenience.
• MORE EMPOWERED, consumers follow their unique requirements and increasingly
pursue self-service and multi- channel options.
• MORE COLLABORATIVE, increasingly bring their own devices, apps and other tools
from outside the ecosystem of the service provider, and thus increasingly determine not
just what services they wish to consume, but exactly how they wish to consume those
services.
• MORE INTERACTIVE, as consumers actively engage in online dialogue and content
sharing and produce their own content for personal use and online publishing.
• INCREASINGLY ON THE MOVE, thanks to new capabilities
for mobile purchase and consumption of content and services anytime, anywhere.

Omni Channel: The (R)etail EvolutionTheir Needs
SECTION 4
The 4 C’s of Consumer needs
CONNECTIONS
Consumers expect to connect with brands anytime, anywhere... especially on their
smartphones & handheld devices.
CHOICE
Today's consumers are not limited by what they can find in a store, or even the
goods they find in their own country. They want selection and they want online,
mobile and in-store availability.
CONVENIENCE
Time-starved consumers are expecting the convenience of shopping online or in
store, but also the convenience of ship to home, pickup in store, or even pickup at
another convenient location.
CONVERSATION
Consumers likely begin their journey on social media looking for conversation, and
most importantly look for recommendations. But, it goes beyond search.
Consumers are looking for conversation and connection with brands they value."

Omni Channel: The (R)etail EvolutionTheir Needs
SECTION 4
Customers have…
Higher Expectations, More Power and Choice
Brands have to…
Be engaged in their eco-system
Community + Influence (vs.) Push + Control
Be at a channel of choice
Anywhere, Anytime, Increasingly Self-serve
Be relevant
Relevance + Dialogue = Influence on Choice

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Customer Expectations from Brands
Their Needs
KNOW ME Personalized Interactions
“...Recognizes me, my existing subscription; Service & Interaction
history with the brand.”
“...Acknowledges and tailors my interactions based on recent actions
across channels.”
SHOW ME YOU KNOW ME Targeted Promotions
“...Personalizes offers and target products and promotions at a price
that’s right for me given my likes.”
“...Helps me comprehend the benefits in easy-to-understand language
tailored to my profile/account type, context and knowledge level.”

4
Customer Expectations from Brands
Their Needs
ENABLE ME In Social, Mobile & Retail Channels
“...Makes physical/online shopping and interacting with the brand
convenient and hassle-free using my preferred channel.”
“...Allows me to express myself and share my insights, opinions and
recommendations.”
“...Equips me with resources that help me validate my choices and
provides me with insightful advice on a complete solution for me.”
VALUE ME I want control of my purchase process
“...Grants me complete flexibility to configure my product/service
& payment options in a manner that yields maximum value for me.”
“...Rewards me for my loyalty and depth of relationship and the
degree of influence I wield on others’ purchases.”
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1
5
Omni-Channel Challenges
INNOVATION
Innovation is at the heart of Omni-channel. (R)etail is becoming a
melting pot of competition & only the fittest and agile will survive.
Innovation can be addressed through simple, meaningful solutions
to the basic question: ‘How can we meet & surpass customer
needs?’ The solution while addressing this question has to be
unique, differentiated and easy for the customer to opt-in.
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H o w ?
Transforming a tired multi-channel retailer into Omni-channel operations
requires the business to face up to the following challenges:
CHALLENGE
2 TECHNOLOGY
Central technology applications will be needed across the
enterprise to create a unified customer experience. ERP
systems need to be capable of integrating with the web, mobile,
social and store channels. Third parties need to be tightly
integrated with companies at a technology and business level.
CHALLENGE

3
5
Omni-Channel Challenges
CUSTOMER JOURNEY
The customer’s ‘discovery’, purchase and review/feedback
journey is very vital to any brand. Mapping these touch points
to the most appropriate channels enables businesses to create
the right functionality. Once the primary purpose of a channel
is known, it can be then optimized for that purpose.
SECTION
H o w ?
CHALLENGE
4 SETTING THE PACE
To implement an omni-channel business requires a commitment
to action and change. Right from systems to people, processes
and training and people: every aspect needs to be aligned to
create the desired experience.
Each change will take time but will require the right pace:
not too fast to accelerate into lapses & not too slow to miss the
opportunity to scale.
CHALLENGE

5
4 Key factors for Omni-Channel retailing
Source: Retail the Consumer Way (Infographic)
CENTRALIZE Company & Customer DATA
• Connect all channels with consistent customer and product
information
• Relevant & targeted promotions and communication across
channels; Ensure uniform pricing
• Harness easy-to-use business intelligence tools that allows data
analysis across parameters to derive insights
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H o w ?
4
Powered by technology, analytics, mobility and flexible marketing
operations, Omni-Channel offers a tremendous growth opportunity for
companies that can out-innovate and out-execute their ever-expanding
list of competitors. And they can do so by integrating across all functions,
products and services, and ultimately, by providing personalized
customer interactions across all channels.

5
Support every CHANNEL your customers use
• Be ready to change & adapt with customers as buying process
channels continue to develop & evolve
• Give customers accurate inventory information as well as
choices for alerts, backorders and reorders
• Provide customers an easy, positive shopping experience: on
their mobile device, online and in the store…every time
SECTION
H o w ?
For brands/services to provide a truly ‘effective’ Omni-channel experience, they have
to allow customers the option to purchase on their own terms –
Browsing, Ordering, Delivery & Returns to be enabled both Online and in the Store.
Omni-channel should support every combination.
1

5
Efficiency & control over INVENTORY
• Give sales teams visibility & real-time visibility of stock
quantities & allocation/location
• Automate reorder alerts to meet the demand for fast-moving
products from across channels
• Ship from closest location- whether store or warehouse or
vendor- to handle pickups & restock efficiently
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H o w ?
2
3
Responsive & flexible ORDER MANAGEMENT
• Support flexible procurement & shipment to fulfill orders and
deliver promptly
• Give customers a wide range of payment & shipping options
• Offer full range of shipping and pick up options, whether order
is placed online or in store.

We are now as much a
media company as we are a
design company because it
is all a part of the overall
experience
- Christopher Bailey
Creative Director, Burberry

Omni-Channel (R)etail Evolution

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