1. multi channel retail thinking 2. project management thinking rob stone, principal 11 th april...
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1. Multi Channel Retail Thinking 2. Project Management Thinking Rob Stone, Principal 11 th April 2006. What is Multi Channel Retail (MCR). Charteris defines MCR as: One view of the customer One supply chain One service policy One assortment/product range across multiple channels. - PowerPoint PPT PresentationTRANSCRIPT
1. Multi Channel Retail Thinking2. Project Management Thinking
Rob Stone, Principal11th April 2006
What is Multi Channel Retail (MCR)
Charteris defines MCR as:One view of the customerOne supply chainOne service policy One assortment/product range across multiple channels
BackgroundDifficult retail environmentInternet shopping maturing Retailers’ upgrading websitesIndustry view is that successful retailers providing integrated shoppingMore customer information available Technology costs falling
Mail Order and E-commerce account for 11% of total retail salesRecord Numbers via Web and TV Shopping
ICD Oct 05
The Survey - Who we spoke toTurnover above £200 million40 blue chip, high street retailersSenior Board, Middle Management Anonymous
Questioned about Multi Channel Retailing
Channel Penetration
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Call Centres Catalogues Digital TV In-store Kiosks M-commerce Stores Web site
Channel
YES
Key Findings♦ The most admired retailers were
perceived to have their full range of products and services across all channels
♦ Retailers still focussed on battling for transactions rather than winning the war for life time value
♦ Key issue – channels managed separately and often at too low a level
♦ Level of service inconsistent across the channels
♦ Lack of integration is causing significant “leakage”
Multi Channel Retailers
Best – Argos & Next
Key Findings♦ Expansion Areas
♦ into m-commerce (30%) ♦ in-store kiosks (18%) ♦ and digital TV (15%)
♦ Most admired multi channel model♦ Argos… large range available♦ Tesco… strong brand♦ Amazon… dominant on web
What does it all mean?4 key areas
Responsibility & StrategyCultural ChangeCustomer & BrandSupply Chain
That if addressed will increase customer base.
These changes will be driven by significant reduction in the cost of Technology
Responsibility & StrategyThe Multi Channel Retailer Test:
Q1 Who is responsible for sales through all your channels?Q2 Who champions the customer?Q3 Is that person on the Board?Q4 Can they set agendas for Technology, Logistics, Customer Service, Product Assortment and developing new customer services?Q5 Have they summarised the vision for MCR in the organisation and communicated it to all levels?Q6 Can you see the MCR plan for 3 months, 6 months 3 years and 5 years?Q7 What are the published KPI’s for MCR
How many would you score?
Cultural ChangeDoes everyone understand what retailing will look like in 3, 5 and 10 years time?If selling to a customer is made up of many touch points who gets the credit?Do senior managers really understand the recent technology changes and what it means to retailing?Do buyer, managers, merchandisers, stock handlers, sales assistants, store designers, customer service assistants and directors know what will need to changes about their job for MCR?
Customer & Brand“We have a strong information flow within each channel silo, rather than across them”
“it’s difficult to manage consistency across the different channels”
“lifetime value measurement is a key criterion that we’ve started to develop within channels”
Who champions the customers?How do your customers see your channels?Do you want to drive sales to the shop or on line?Which is more cost effective for your retail operation?Do you treat the same customer in different ways in different channels - price?Do you have a 360 view of the customers wants and needs?
Supply Chain - A Customers View
Can I get my goods when and where I want them – in store or delivered?How come you have run out of stock in store and why didn’t you offer me a delivery from the web stock?If my product is faulty can I take it back to a store or send it back by post?Is it the same price on line as in store and if not why should I pay more in store?Can I order it in store and have it delivered direct.Can I order on line a collect it on Saturday when I am shopping?Can I have timed delivery slots?
Since May 2005 Woolworth has allowed customers to buy over 300,000 products for home delivery via its 824 stores EPoS
The New Shopping Landscape
Retailing faces the convergence of influences which are dramatically altering the landscape:
impact of change24x7 culturereducing cost of ITPC + broadband penetratione-commerce changing consumers’ behaviournew retail formatsnew channels (iTV)new channel specialists (ebay, Amazon)Specialist /mass market polarisationno barriers from cost or age
Thenew
shopper
Birth of the New ShopperBehaviour polarisation:
loyal to strong brands, disloyal to weak
Technically savvy, literate and competent with ITAll agesAll socio-economic groupsSophisticated comparison shoppersSpeed of availability and delivery increasingly crucial:
“I want it now!”Has eBay saved the Post Office?
Not a slave to a channel – ingenious users of channels for their advantageConvenience and certainty
Need for a New RetailerOffer reasons for customers to come backConsistency across channels of:
range priceexpert service
Mass market vs niche – which playing field?Single view of customerWeak brands won’t survive
Multi-Channel Retailing Journey
Project Management ThinkingChristmas Present?PlanningRequirements GatheringTracking and ControlLook and FeelGo-Live Migration
Christmas Present?Business focus on 12 weeks to early January50% revenue in Q4. 25% in DecemberBusiness drives a September / October launch
Still require stabilisation periodStill require business involvementStill require Christmas Change Freeze
Initial Project Sign-offMid Q1 after January rush overBusiness readinessITT / Review responses
PlanningSoftware development or Change programme?Always listen to the team pessimistTreat all channels alike
Web / Call Centre / Mail OrderCommon catalogue
Customer-centric viewMore marketing involvement = More time
Customer Conversion / RetentionWebsite taggingPricing feeds
Performance / Response TimesDesign it in from beginning
Requirements GatheringBusiness team needs deep business knowledge
Are they being taken out of the business to support the change programme?
Do the requirements support the MCR model?
Difficult to break out of silo mindsetSingle customer? Common catalogue? Common prices?
Release Genie from IT BottleGathering requirements versus wishesWant versus Need. Expectation management
Tracking and ControlProject manger should own the plan
Do not detach yourself from planning and reporting process
Track internal and external dependenciesAre you being challenged by the Project Board?Are benefits being delivered?Management Reporting
Quality thinking timeGood …. and bad newsPlanned activities in period …. Deviations… Reasons… Actions
Look and FeelCustomer Journey
Consistency between channels Basket / trolley / cartEntering payment card details
Persona driven design?Story Boards
Agree basic layout Alignment problems on websiteAnomalies from real data
Who will sign-off design?Marketing manager / Sponsor / CEO
Time consuming
Go-Live MigrationLegacy data
Ditch or convert?Data cleansing exercise
Data mapping issuesSeparate domain knowledgeMisuse of fields Customer name (title, forename, surname)
Migration MetricsGo-live timings
Minimise system outage