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
facebook/RedRook
twitter/RedRook
thank you.