the changing digital landscape officemax’s evolution toward a customer...
TRANSCRIPT
7/19/2013
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The Changing Digital Landscape&
OfficeMax’s Evolution Toward a Customer-Centric, Omni-Channel Company
Today’s Discussion
Who We Are
Cross-Channel, Multi-Channel, Omni-Channel?
Changing Consumer Behavior
Customer-Centric Focus: “Listen to Your Customers”
Cultural Shift Toward an Omni-Channel Organization
Takeaways
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Who We Are
Fortune 500 leader in office products/services, serving thousands of businessesin various markets including healthcare, education and government
Approximately 29,000 associates
Operations and customer base in U.S., Canada, Mexico, Australia and New Zealand
More than 900 retail stores in the U.S. and Mexico
Sales at a glance: $6.9 Billion (FY2012)
*Total company sales are for full-year 2012**Technology includes ink and toner
Retail Segment: $3.31 BillionContract Segment: $3.61 Billion
InternationalInternational
31%31%U.S.U.S.69%69%
SuppliesSupplies& Paper& Paper
57%57%
Technology**Technology**
31%31%
Furniture12%
Total Company* Sales
RetailRetail48%48%ContractContract
52%52%U.S.U.S.91%91%
SuppliesSupplies& Paper& Paper
43%43%TechnologyTechnology****
50%50%
Furniture 7%Mexico 9%
The Digital Business
OfficeMax.comServes consumer, SOHO, SMB
Key value proposition is ease-of-use and competitive pricing
Mobile web and native applications
Reliable.comSOHO SMB site launched in 2011
Known for “gift with purchase,” deals
OfficeMaxSolutions.comCore “ordering tool” for Workplace business
Key feature is strong administrative tools for large & medium businesses
…and the People Behind It
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Not Just a Business Unit …
Supporting multiple customer touch points across the company:
Digital marketing
Centralized email support
Company-wide SEO
Enterprise-wide search engine marketing support (B2C, B2B)
Also a Support Unit
Cross-Channel, Multi-Channel, Omni-Channel?
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Omni-Channel is Today’s New Retail Reality
Traditional Retail Omni-Channel RetailMulti-Channel Retail
OfficeMax’s Digital Journey
Digital/eCommerce business has grown to #11 in Internet Retailer Top 500 by embracing a customer-centric approach to the web and mobile experience
Further change is coming to OfficeMax and to our industry, bringing new challenges and opportunities for future growth
Started the transformation from a multi-channel business model to an omni-channel retailer
Focused on enhancing teams, building best-in-class digital capabilities, addressing key strategic and tactical opportunities, and driving toward a “true north” vision
Driven by changing customer demands, adapted how we organize, how we operate, what we sell, and how we engage customers
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Changing Consumer Behavior …Changing Shopping as We Know It
Our Changing Customer, Yesterday … and Today
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Consumer Shopping Habits
Sources: Forrester, Morgan Stanley, US Census
Online Influence WILL Become The Primary Driver of
Future Store Sales
Total Retail Revenue by Channel of Influence – U.S.
Online to Online
Traditional Channels to Store
Actual: $5.0T
Projected: $6.2T
Online to Store
68%
24%
8%
21%
64%
15%
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Customer-Centric Focus:“Listen to Your Customers”
It’s All About the Customer’s Wants & Needs
Product Management
Product Management is the Intersection Between the Business, UX and IT
Serves as the eyes and ears of the customer; translates their wants into opportunities
Quantifies the opportunity to ensure customer and business value (conversion, CSAT, etc.)
Identifies opportunities by listening to internal and external customers to understand market problems/needs
Identifies requirements and works with User Experience and Development to ensure delivery of a quality experience
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Responding to Customer Feedback is Vital to Success
Old 1
2
3
4
New
Workplace.com Homepage Changes
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11
2
Workplace.com Product Details Page Changes
Old New
Responding to Customer Feedback is Vital to Success
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Delivering Consistency and Relevance in Cross-channel Communication is a “Mandatory”
Building Powerful Communities of Customers Creates Loyalty and Differentiation
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Cultural Shift Toward an Omni-Channel Organization
Leadership “Buy In”…But You Must Evangelize at All Levels
CEO ownership – role of CDO
VP eCommerce – Multichannel
Omni-channel steering committee
29,000 associates
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Digital / eCommerce Business as Agent for Change
Education of entire organization:
Executive Team & Top 100
Retail Leadership & Store Associates
Organization at Large
Key Support Functions
Develop Omni-Channel Capabilities That Meet Customer Needs
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Reward Structure to Incent Omni-Channel Execution
All channels get credit
Ensure metrics are designed to drive the right behaviors (CSAT)
Feedback loop to monitor execution
Data & Customer Feedback Are Critical
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How Do We Know We Are Making Progress?
Conversion rate and customer engagement
Digital sales meeting attendance growth
Greater inclusion of Digital associates to enterprise functions
Increase in omni-channel ideas from other areas of the company
Digital is “part of the dialogue” in internal & external communications
Key Omni-Channel Takeaways
Reinforce a customer-centric culture and approach
Insure leadership is “on board” and champions the journey
Your eCommerce team must be “catalyst for change”
Implement rewards and incentives to drive the right behavior
Create “relevant” omni-channel capabilities for your customer’s needs
“You can’t manage what you can’t measure” – data & customer feedback are critical
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Questions?
Trends to Watch
The “Death of the Store” is greatly exaggerated
� Brand-enhancing experiences
� Digitally-oriented, destination-based stores
Leveraging physical assets to drive inventory, fulfillment strategies
� Retailers need to understand the costs of store fulfillment
New services to combat the “Amazon effect”
The evolution of the traditional Point of Sale system
� Smarter mobile shopping experiences for customers & associates
Ubiquity of inventory, order and customer data to personalize the brand experience across channels