o2o - the future of retail
TRANSCRIPT
O2O: The Future of Retail Creating a true omni-channel customer experience
Prepared by Kevin HuangFeb 6, 2016
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Retail 1.0Birth of modern retail – 1900 ~ 1961
Retail 2.0Age of hypermarkets – 1962 ~ 1994
Retail 3.0eCommerce era – 1995 ~
Transformation of the retail business model
Product centric & one way experience
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ShopperNeed Research Shop/Buy Collect/
Deliver Service Re-buy
Call Center/CustomerService
Offline WithOnlineIntegration
Offline
Social
Online Shop/Mobile
Print/Website
Browse Product info
SearchRead reviews
Check with friends
Queryspecification
Inspectproducts
Buy online
Check order
Pick up at store/Home delivery
QueryInstallation instructions
Write review
Checknew products/
features
Buy again
Your customers now live in an increasinglyomni-channel and social world… do you?
Buy at store
Page 6 Source: http://goo.gl/x22ckt
A survey conducted by Accenture reveals that more than 88% of potential buyers would browse for the product online and then purchase it from a physical store.
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O2O is all about driving customers from thatonline screen to offline experiences
Retail 4.0Customer centric & connected experience
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O2O business model
The goal for O2O is to blur the frontiers of all channels to create a seamless customer experience for a maximum conversion rate, regardless of where users make the final purchase. In other words, O2O aims to unify all channels into a single omni-channel.
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O2O to enhance Customer ExperienceIkea's mobile app shows you real-time store stocks and gives users the
option to create a shopping list that can be printed and brought to the store. The app also has the shopping list function too and indicates where to pick
up your products and tick products you have collected already.
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Multi-channel vs Omni-channel marketing
Multichannel is about putting customers at the heart of everything we do.
Omni-channel is an evolution of multichannel and is very much about making it consistent and giving a consistent experience for customers across channels.
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Omni-channel: for customers
Single view of the retailer across all channels
Store TVE-Commerce
Social media sites
Returns anywhere
Fulfillmentanywhere
Mobile commerce
mPOS
Kiosk
Same price everywhere
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Single view of the customer
Single view of data
Inventory Products & pricesPOSStore
E-CommerceSocial media sites Supply
chain
Mobile commerce Call
center
Sales & marketing
Personal info
Shopping preferences
Purchase frequency
Purchase historyLikes & dislikesLoyalty rewards
&Omni-channel: for retailers
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Omni-channel ExamplesMacy’s
• Check the availability of product in physical store
• Book an appointment for exclusive advices
• Coupons available online & in-store
Online Experience
• Pick up a product ordered online• Return a product ordered online• Scan barcodes and QR codes for
more information about products or promotions
• Use the mobile application in store for deals and promotions
• Use tablets in store to check availability of products (with sales staff)
In-store Experience
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Omni-channel ExamplesCartwheel by Target
• Target is partnering with Facebook
• Offering deals that customers can only redeem in stores on their mobile devices
• Strategy is to get smartphone-carrying customers to visit and purchase in bricks and mortar Target stores
• Response to showrooming
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Omni-channel ExamplesNordstrom
• New stores equipped with mobile point of sales devices
• Top salespeople given iPhones to contact customers
• Significant investments in IT to ensure online experience matches in-store experience
• Company has integrated inventory and fulfillment for stores, the internet, and mobile devices
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Omni-channel ExamplesStarbucks• Disciplined, consistent approach to
Starbucks brand across all channels• Leveraged robust IT platforms to launch
new loyalty program• Loyalty program users can join the
program and also make purchases using their phones
• Now coffee can be purchased directly with a smartphone
• Customers have the option of checking and reloading their Starbucks card balance through their phone, the Starbucks website, or when they’re at the store.
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Omni-channel ExamplesSephora• Sephora makes it easy for its loyal customers
to manage their “loved” products and purchase history from any device through its “My Beauty Bag” program.
• Sephora’s Beauty Insiders (i.e. members of its reward program) can use their Beauty Bag on their phone or on their computer to view and track their purchases and rewards. They can add items to their shopping list, view their buying history, save items for future purchases, and easily re-order items.
• Shopping is a breeze with the ability for users to purchase products right from the app itself. Alternatively, when they’re in the store, they can use Sephora’s app to access their shopping list to complement their in-store experience.
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Consider these three steps when starting omni-channel marketing
Step one: Find Your DMPWith an omni-channel approach, a data management platform is a must-have for retailers. A data management platform (DMP) collects, manages, processes, analyzes, organizes and activates data. There are plenty of DMPs available to marketers, so choosing the right platform is imperative to your omni-channel success.There are a few important qualities you may want to consider when choosing your DMP. Businesses should consider how the platform integrates 1st and 3rd party data, how the platform can be utilized, the platform’s cross-channel management abilities, and how easy the platform is to use.Finding the right DMP can help businesses create a much more comprehensive, 360-degree profile of their customers, a key foundation for marketing personalization.
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Step two: Develop ContentThe key to a seamless, omni-channel experience lies within the content of the marketing messages that customers receive. Although consumers are receiving messages on different platforms, the messages must be unified and consistent with one another. All messages directed to customers must reflect products and ideas of the overarching marketing campaign.Developing consistent messaging can be a stumbling block for some businesses. When faced with the dilemma of message uniformity and also personalizing content, marketers often decide to just “batch and blast” generic campaigns across the board. However, with carefully planned strategy and new technology, businesses can combine uniformity and 1:1 personalized marketing with much less effort and spend compared with several years ago.DMPS and automation platforms can help pull in data from customers so that the right bits of content can be used in messaging, whether it be product offers, copy and language, or design.
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Step three: Consider all ChannelsThere are a variety of other channels that retailers should be taking advantage of for optimal coverage.As the millennial generation becomes the primary target for retailers, companies must adjust their omni-channel strategies accordingly. Raised in an era that incorporates technology into everything, millennials are naturally tech-savvy. Their familiarity with technology will likely influence marketing strategies. Almost three-fourths of today’s consumers believe digital technologies will transform the way businesses use their channels to interact with customers.Therefore, marketers should be able to access these customers through more, nontraditional channels. This opens more doors for businesses willing to market through social media, apps or SMS. Businesses that are unwilling to embrace new technologies will be left behind.
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Apple’s two New York stores
State-of-the-Art –Defined ! Fifth Avenue store Grand Central store
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Microsoft’s flagship New York store
Opened on Oct 26, 2015, this retail store is one of Microsoft’s 110+ outlets across the U.S., Canada, and Puerto Rico, but the New York store is its first two-story incarnation and is the company’s largest in the world.
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The world's first ‘Google Shop’
Google is selling Android phones, Chromebook laptops, and Chromecast TV service through site at Currys PC World store in London
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Left: Seattle, Washington - Nov 2015: Amazon opened its first real life brick and mortar bookstore called Amazon Books in Seattle's University Village.
Above: Amazon Pickup Point: UC Berkeley
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Showrooming trends
comScore reported that in April 2014, 35% of US internet users showroomed, including nearly half of millennials and even 28% of seniors 65 and older. In a more recent Q3 2014 survey, comScore found that 44% of smartphone owners said they participated in showrooming.
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How to Deal With Showroomers?
Source: RIS News Custom Research “Omnichannel Readiness”, Oct 2013
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How to Deal With Showroomers?
Source: Capgemini Consulting “Digital Shopper Relevancy” July, 2012
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•••
Beacons are able to interact with customers as they move through the store. Providing them with an experience that is tailored to them.