Netcomm Forum 2013: Seamless Omnichannel

Demystified

Omnichannel

Enabling seamless

multichannel experience

Milan, 28 May 2013

Copyright © 2013 Accenture All rights reserved. 2

Something about Accenture …


An end-to-end service unique offering

Strategy

Consulting Process

Consulting

Technology

Consulting

Process &

System

Implementation

Infrastructure

Operations

Application

Operations

Business

Process

Operations

Accenture As Business Innovation Partner

Strategy Consulting

Management Consulting

IT-Consulting

Strategy Process Information Technology Management of Business

Processes

Comprehensive Know-how through

experts and projects across the e2e

value chain

High implementation complexity through

IT and project management Know-How

Change Management


Introducing Accenture Interactive the e-commerce CoE

India Delivery

Centers Consumer Goods

(Hyderabad)

Technology

Labs Bangalore, India

Operations (Madrid ISC)

CRM, S&M, BI, Planning (Milan ISC)

ACIN

Chicago

ACIN

Sao Paulo

Accenture Interactive

e-Commerce Centre of

Excellence

Milan

Philippine

Delivery Center

(Manila) Supply Chain

(Barcelona ISC)

Technology Labs

San Josè, California

Technology

Labs Chicago, Illinois

High Performance Business Showcase

Murray Hill, New Jersey

London, UK

Technology Labs

Sophia Antipolis

SAP Retail (Bilbao)

Delivery

Center (Napoli)

Value Led

ERP (Bangalore)

Oracle Retail

(Lodz)

Accenture Customer Innovation Network

Accenture’s global network of CG&S Industry Solution Centers

Global Delivery Network

Accenture Tecnology Labs

Technology

Labs Beijing, China

BI, ERP, Agri (Chicago, ISC)


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


Our customer is experiencing «new normal»


Business-Case: Hointer fully automated store




Business-Case: Celio* showrooming




Business-Case: Argos full channel activation


Business-Case: Nike-Fuel purchasing everywhere


Business-Case: Nike-Fuel purchasing everywhere




Business-Case: House of Fraser omni-fashion




Business-Case: in-store comparison


Business-Case: Best Buy in-store comparison


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


Retailers must change the game to remain relevant.

They must become seamless themselves.


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


10 actions to become seamless omnichannel

Traffic

Building Commercial

Strategy Supply Chain

Customer

Experience Store New

Role

Organization Strategic

Omnichannel Technology

Business

planning



Traffic

Building Commercial


Customer


Role



Business

planning


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

Affil iate 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


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


Integrating operations for a customer conversation

The Enterprise

Channel Operations

Merchandising

Marketing

Supply Chain

Stores Digital Customer

Center

Services

Busin

ess F

ound

atio

n

Te

chno

log

y F

ound

atio

n

…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



Traffic

Building Commercial


Customer


Role



Business

planning


The path to reach seamless fundamentals

• Business processes are a set of

interaction platforms, operations,

partners, technologies and

interactions with customers

designed basing on the channel specific dynamics.

• A seamless approach redefines

a deeper level of integrations

to reach a newer level of interaction that goes in line with

the strategic objectives of digital

era.


Cu

sto

mer

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-C

om

merc

e

Head

qu

art

er

S

tore

Omnichannel redefines functions, roles and platforms


Cu

sto

mer

E-C

om

merc

e

Head

qu

art

er

S

tore

Shared stock

Warehouses Marketing

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.

Om

nic

han

nel

Shared stock

Omnichannel redefines functions, roles and platforms



Traffic

Building Commercial


Customer


Role



Business

planning


Leadership structure is evolving in new forms

CEO

E-Commerce

Marketing Trading /

commerical Operation

Commu-

nication

Marketing IT Commercial

• Cross-functional collaboration is

a priority and all work as equals

• Management of both in store

and online operations under unique leadership

• Restructure the organization

and work horizontally

• Drive digital orientation

throughout the enterprise.



CEO

Marketing IT Commercial E-

Commerce

• Cross-functional collaboration is








E-Commerce

Marketing Trading /

commerical Operation

Commu-

nication



Collaborative organization

CEO

Marketing IT Commercial

Digital

Digital Digital Digital

CEO • Cross-functional collaboration is










Traffic

Building Commercial


Customer


Role



Business

planning


Stores are in transition into a new format

• 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


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.

Stores are in transition into a new format



Traffic

Building Commercial


Customer


Role



Business

planning


Profit ROI

Revenues

Opex

Capex

Traffic

Conversion

ATV

Marketing

Logistic

Platform

Team

Catalogue / Asset

Warehouse

Customer service

License

eCommerce

Website

Order Management

LED

D.M.D.

Delivery

Marketing

Operations

Trading

Communication

Return

Copyright

Translation

Shooting

Organic

LED

D.M.D.

Average price

# items

• Planning an eCommerce

business means:

• Reaching the break-even.

• Granting the profitability.

• Building a scalable model.

• Supporting the business balance

means:

• Balancing

- capital investment - operative cost.

• Defining a "make" or "buy"

scenario based on company

needs.

Levers, decisions and business plan are correlated


Profit ROI

Revenues

Opex

Capex

Traffic

Conversion

ATV

Marketing

Logistic

Platform

Team

Catalogue / Asset

Warehouse

Customer service

License

eCommerce

Website

Order Management

LED

D.M.D.

Delivery

Marketing

Operations

Trading

Communication

Return

Copyright

Translation

Shooting

Organic

LED

D.M.D.

Average price

# items Increase

customer



business means:





means:

• Balancing




needs.


Profit ROI

Revenues

Opex

Capex

Traffic

Conversion

ATV

Marketing

Logistic

Platform

Team

Catalogue / Asset

Warehouse

Customer service

License

eCommerce

Website

Order Management

LED

D.M.D.

Delivery

Marketing

Operations

Trading

Communication

Return

Copyright

Translation

Shooting

Organic

LED

D.M.D.

Average price

# items

Increase

conversion



business means:





means:

• Balancing




needs.


Profit ROI

Revenues

Opex

Capex

Traffic

Conversion

ATV

Marketing

Logistic

Platform

Team

Catalogue / Asset

Warehouse

Customer service

License

eCommerce

Website

Order Management

LED

D.M.D.

Delivery

Marketing

Operations

Trading

Communication

Return

Copyright

Translation

Shooting

Organic

LED

D.M.D.

Average price

# items

Warehouse

Approach

emerging markets quickly



business means:





means:

• Balancing




needs.


Profit ROI

Revenues

Opex

Capex

Traffic

Conversion

ATV

Marketing

Logistic

Platform

Team

Catalogue / Asset

Warehouse

Customer service

License

eCommerce

Website

Order Management

LED

D.M.D.

Delivery

Marketing

Operations

Trading

Communication

Return

Copyright

Translation

Shooting

Organic

LED

D.M.D.

Average price

# items

Studio

Improve

product content quality



business means:





means:

• Balancing




needs.



Traffic

Building Commercial


Customer


Role



Business

planning

Copyright © 2013 Accenture All rights reserved. 45 Source: Seamless Retail Consumer Survey, November 2012

% refers to answers of correspondents for the listed functionalities/services

Characteristics of the new experience innovators


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: 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



Traffic

Building Commercial


Customer


Role



Business

planning


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


The evolution of the elastic supply chain

• 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



Traffic

Building Commercial


Customer


Role



Business

planning

Copyright © 2013 Accenture All rights reserved. 57 Source: Seamless Retail Consumer Survey, November 2012

Integration of Commercial strategies cross-channel


Sale

s v

olu

me

«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 objectives

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

So

urc

es

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

Cap

ab

ilit

ies

Online Search Trend

Cross Channel Commercial Model

1 2 3

4

• To reach the business objectives

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



Traffic

Building Commercial


Customer


Role



Business

planning


Digital acquisition strategy across channels

• 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 across channels

Click

Through

Conversion

Traffic

Turnover

Commercial

Levers

Transactions

Organic Lead

Awareness

Information

Acquisition

Customer

Thrust

User

Experience

Re

ac

tiv

ati

on

• 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 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






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


The next five actions to became seamless

1. Acknowledge the burning

platform

2. Identify target customer

experiences

3. Put the right leadership in

place

4. Involve the right people from

the beginning

5. Know that making the

business-case will be

challenging


Thank you ! Federico Gasparotto Digital Marketing Offering Lead

Accenture Interactive

Tel: +39-331-7550490

@: [email protected]

Blog: www.gasparotto.biz

IM: federico.gasparotto