omnichannel trends - retail control systems€¦ · omnichannel model source: magento. omni retail...

omnichanneltrends

ourstory

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our starting point

2001

Center Stage was founded by Joseph Duke IV and the journey began.

Center Stage

2004 2012NCR and retailEstablished partnership with NCR to provide CounterPoint point-of-sale solutions.

EcommerceWe combined our years of experience in commerce to develop new solutions on the Magento platform.

ourstory

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and today…and today…

re-branding The team decided it was time tostart chapter two of our journey, and RedRook was born.

2015

We are working with innovative companies to rethink retail. We disrupt the status quo, to create a powerful and engaging omniexperience.

inventoryorders Invoice & payment

gift cardsloyaltycustomer experience

tracking numbers

reports & dashboards

IN-STORE ONLINE

The power of omnichannel

COMMERCE5

Counterpoint + Magento

(creation, synch, updating)

(status, tracking, release) (barcodes, history) (purchasing, grids, maps) (all methods supported)

(coupons, discounts)(social, pricing ) (analytics, statistics)

what we know.

things were so simple…

and now so… complex

technology adoption isaccelerating

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In 2015, online sales exceeded $340 billion in the US, and double digit growth.

online shopping

Mobile commerce sales exceeded $100 billion in 2015, 30% of total online sales.

mobile commerce

Social commerce generated $30 billion in sales in 2015, about 10% of their online biz.

social commerce

retail has evolved

Marketplace sales were 25% of total online sales in 2015, 90% online retailers sell there.

market places

power has shifted

Source: RightNow

many touchpointstoday

Omnichannel

An aspirational state where the channels are borderless,actions are personalized and integrated, interactionsare instant and simultaneous, logistics are centralizedand versatile, and EVERYTHING is customer‐centric.

Omnichannelmodel

Source: Magento

Omni retailreality

The channels by which consumers of allgenerations engage with retailers remaindisconnected, driving dissatisfaction withthe shopping experience.

the journey.

shoppingjourney

Every purchase can be seen as a shopping journey, beginning with product discovery, research, trial and test, purchase, delivery or pickup, and in some cases, returns.

consumervalue

Multiple channels has introduced a decoupling of the source of value creation from where value is captured, with crucial implications for all omnichannel retailers.

Value is created at multiple steps along the journey as the decision to make a specific purchase is informed, supported, and reinforced.

Value is captured when the purchase is tendered. So value creation is a precondition to value capture.

Value Creation vs Value Capture

66% DECOUPLING OF VALUE BETWEEN CHANNELSOf consumers that prefer online shopping, still rely on physical stores for other important steps in their shopping journey.

In-store channel preference by step in shopping journey

1. Discovery – 48%2. Trial – 80%3. Purchase – 68%4. Pickup – 55%5. Return – 72%

Prefer in-store (average)

Source: A.T. Kearney

sales are becoming increasingly channel-agnostic

While most consumers shop multiple channels, their channelpreference vary by age, purchase category, and stage in theshopping journey.

SIZE IN-STORE, BUY ONLINE

RESEARCH ONLINE, BUY IN-STORE

This decoupling requires retailers develop effective value creationand capture tracking technologies and systems to track shopperengagement beyond “sales”. The source of value creation (brandbuilding, product awareness) is distinct from the place of valuecapture (sales transaction).

BUY ONLINE, PICKUP IN-STORE

In-store channel preference by step in shopping journeySource: A.T. Kearney

Critical info for buildingrelationships

Teens’ overall preference for physical stores is one of the highest, and greater even than that of millennials and generation Xers.

Millennials prefer using multiple retail channels, be they digital or physical. They prefer stores for trial and test, purchase and returns.

Seniors prefer physical stores to online shopping. Baby boomers’ are closely aligned with seniors. They believe accessibility, time efficiency, and better product selections exist in-store.

Store, digital, and multichannel journey preferences

Source: A.T. Kearney

Consumers prefer in-store pickup over home delivery. They feellike it offers a sense of reliability and trust they don’t find online.

Physical stores are vital centers for product returns, even forpurchases made online. In fact, after trial and testing, returns is thestage in the shopping journey where consumers demonstrate thehighest preference for physical stores over online shopping.

Remember, for online pure-plays, returns are a dead-net cost; for abrick-and-mortar store, a return is a potential new sale.

consumerpreferences

consumerpreferences

55% Of consumers prefer to use both stores and online throughout the entire journey.

Of the thirty possible multichannel journeys, the most common is when online is used solely for initial product discovery and the store is preferred for trial, purchase, pickup, and returns.

#1

Of consumers use more than one channel simultaneously at any given stage in the journey. Example, price checking on a smartphone while in a store.

33%

retailers with a brick-and-mortar presence collectively sell more on their websites than pure online players

Source: A.T. Kearney

Leveraging a strong store base and digital channels is theformula for increased shopper loyalty, sales lift, and opportunityfor cross-channel sales.

omnichannelbenefits

15% Multichannel consumers are fifteen percent more likely to recommend a retailer to another shopper.

The average spend of three-channel consumers is more than twice that of single-channel shoppers2X

Brand loyalty is directly correlated with retail channel usage. The more channels a customer shops, the more loyal the customer.

LOYALTY

Source: Forrester

Very difficult to achieve sales lift in single-channel retailing.

Physical store benefits

70% Of online consumers live within a physical store’s trade area.

Of consumers who return an online purchase in-store make and additional purchase.

20%

Click-to-brick retailers report e-commerce sales lift of five times in the markets where they build out physical stores5X

Cross-Channel Sales

66% Of consumers who purchase online use the store before or after the transaction.

Of consumers shop across at least two channels, while 21% use four or five channels.

65%

Source: PricewaterhouseCoopers

what’s next.

RethinkingRetail

and mobile apps are not just ecommerce ordering vehicles, they are the front door to your brick-and-mortar stores.

are no longer viewed as showrooms. They are digitally-enabled inspiration sites, testing labs, purchase points, instantaneous pickup places, help desks, and shipping centers.

Stores

Websites

Allow businesses with limited brand and marketing resource to gain visibility to a larger consumer base, expand internationally, and utilize fulfillment options

Marketplaces

industrydisruption “4 out of 5 consumers use smartphones to shop.”

Mobile has become disruptive to traditional business models. Think of what Uber has done to taxi service!

Retailers must Re-think a business model that leverages mobile to disrupt their industry….before they are disrupted.

SocialRetailers can leverage communities to blend people into a single place, with a single voice…service as brand ambassadors, and engaging in a helpful social way. Mobile apps and social media are a big part of the shopping experience.

Mobile

Source: ComScore

innovate Retail

Users simply run their fingers across the screen of the smartphone: to the right if they’re interested in a potential partner, and to the left if they’re not. If people are making romantic matches this easily, what are the implications for how they choose to buy clothing, groceries, tires, etc.

Consider a world in which retailers could create a shopper decision-making process for its products that was as simple and seamless as Tinder

Successful retailing will continue to be based onproviding the greatest number of consumeroptions possible and creating the most value onthe customers’ terms. That will require physicalstores supplemented by digital capabilities andretailers with the skill to get the most from eachchannel.

omnisuccess

requestedfeatures

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Source: 2016 Forrester Research

“What new features are most requested by merchants when surveyed?”

significant near termopportunity

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COMMERCE5 MOBILE

MARKETSSTORES

WEBSITES

SOCIAL

We help our clients manage the complexity of orders and inventory across multiple channels, while increasing commerce

capacity to grow their business.

Increase Capacity & Manage ComplexityCOMMERCE5

platform

more trends.

Do you research products online before going into a store?

o

Source: Accenture

Where do you compare prices or products online prior to going into a store to purchase these products?

Source: Accenture

In-store experience with associates

67% Of shoppers DON’T believe associates are telling them the truth about products.

Source: Salesforce Research

10% of in-store shoppers have downloaded retailer mobiles apps33%

Of consumers have been offered a recommendation or deal based on their purchase history.

omnichannelexperience

Source: Salesforce Research

omnichannelexperience

Source: Salesforce Research

Why do you avoid shopping at stores during the holidays?

88% Of shoppers prefer to avoid stores during the holidays.

Source: Accenture

consumersurveys

Source: Accenture

ourcontacts

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address

1955 Vaughn Rd, Suite 108B

Atlanta GA 30144

come visit us!

phone

office 770-792-2212

fax 770-792-2212

online

TheRedRook.com

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thank you.