Solving Omni-Channel Transformation with Customer Centricity
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The document discusses the growth and trends in e-commerce and omni-channel retail strategies, focusing on global retail sales, the impact of mobile commerce, and consumer behavior in Brazil. It highlights the importance of customer-centricity and the integration of various sales channels to enhance customer experience. Additionally, it addresses the challenges retailers face in technology adoption and operational efficiency to meet evolving consumer expectations.
Solving Omni-Channel Transformation with Customer Centricity
- 1. Solving Omni-Channel Transformation with Customer Centricity eCommerce Brazil 2015
- 2. Lisa Butler Vice President, Enterprise Solutions Enablement eBay Enterprise + Magento
- 4. Total Retail Sales Total retail sales worldwide, 2013-2018, in trillions and % change Note: excludes travel and event tickets | Source: eMarketer, Dec 2014, 22 countries 2013 Total retail sales 2014 2015 2016 2017 2018 $21.189 $22.492 $23.927 $25.366 $26.827 $28.300 6.4% 6.1% 6.4% 6.0% 5.8% 5.5% % Change
- 5. eCommerce Retail Sales Retail eCommerce sales worldwide, 2013-2018, in trillions, % change and % of total retail sales Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets | Source: eMarketer, Dec 2014 2013 Total retail sales % Change 2014 2015 2016 2017 2018 $21.189 $22.492 $23.927 $25.366 $26.827 $28.300 25.9% 22.2% 20.9% 18.6% 16.4% 13.3% % of total ecommerce retail sales 5.1% 5.9% 6.7% 7.4% 8.2% 8.8%
- 6. Retail Sales Worldwide Top 10 countries, ranked by retail eCommerce sales worldwide, 2016-2018, in billions and % change China* 2016 US** UK** Japan Germany 2017 2018 Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets; *excludes Hong Kong; **forecast from Sep 2014 | Source: eMarketer, Dec 2014 % Change $714.5827.0% $871.7922.0% $1,011.2816.0% $394.4313.0% $442.5512.2% $493.8911.6% $104.2211.0% $114.6410.0% $124.969.0% $88.0611.0% $96.8710.0% $106.079.5% $82.9312.9% $91.9710.9% $99.338.0%
- 7. Retail Sales Worldwide Top 10 countries, ranked by retail eCommerce sales worldwide, 2016-2018, in billions and % change 2016 France 2017 2018 South Korea Canada Russia Brazil % Change $46.138.2% $49.717.8% $53.267.1% $40.4310.0% $44.079.0% $47.828.5% $33.0514.9% $37.6113.8% $42.6713.5% $23.4023.4% $26.8814.9% $30.9115.0% Source: eMarketer, Dec 2014 $21.3413.5% $23.7911.5% $26.1710.0%
- 8. Mobile Share of eCommerce Transactions Japan South Korea UK Spain US Germany Netherlands Italy France Russia Brazil 0% 10% 20% 30% 40% 50% Q1 2015 Q4 2014 GlobalAverage:34% www.criteo.com/media/1894/criteo-state-of-mobile-commerce-q1-2015
- 9. Mobile Growth is Driven by the Smart Phone Japan South Korea UK Spain US Germany Netherlands Italy France Russia Brazil -2% -1% 0% 1% 2% 3% 4% 5% www.criteo.com/media/1894/criteo-state-of-mobile-commerce-q1-2015 %mobilesalesfromsmartphone,1Q2015 Smartphone Tablet 90 99 44 56 53 45 39 55 37 65 41
- 16. 87% of shoppers initiate browsing on their smartphone at home 81% of shoppers use more than 1 device to browse 41.2% of all online traffic Cyber Monday came from mobile 55-72% of shoppers use mobile in store SecureNet: The Way We Pay, Jan 2015 | eBay Enterprise: How To Leverage Multiple-Device Shoppers, Feb. 2015
- 19. Supply Demand Web Mobile Stores Customer Service Marketplace Stores Dropship Network Merchant DC Third Party DC
- 20. Omni-channel shoppers are 3-4x more valuable than single channel shoppers–both in terms of revenue an loyalty eBay Enterprise: How To Leverage Multiple-Device Shoppers, Feb. 2015
- 21. Biggest Tech Barriers to eCommerce Growth What are some of the most significant tech-related challenges you face in growing your eCommerce business (Company Trends) Integration with current/ legacy systems Building a personalized shopping experience Multi-device optimization Cost Technical optimization e.g. page load speed Limited capability of current eCommerce solution Lack of technical knowledge/ capability Scalability (including upgrade compatibility & hosting) Catering for multiple markets/ languages 0% 20% 40% 50% 2014 2015 10% 30% Econsultancy & Neoworks | Technology for Commerce Report | April 2015
- 22. Top Retail Order Management Investment Drivers “Please identify the top three reasons for investing in a retail order management system.” First Second Third To support buy-online, pick-up-in-store program To enable us to fulfill online orders from our physical stores To support the rollout of additional web distribution centers (DCs) To support shipping to store To enable a single view of inventory across channels To enable a single view of customer orders across channels To enable store associates to place orders from the online channel To enable omnichannel returns 18% 12% 10% 9% 17% 12% 16% 13% 9% 11% 12% 14% 9% 10% 13% 6% 7% 8% 3% 11% 3% 5% With Omnichannel excellence becoming an imperative, retailers and brands are rushing to operationalize increasingly complex cross-channel order processing and fulfillment scenarios
- 23. • Complete overhaul of operational infrastructure • 70,000 units available online to 1 million units • Triple digit growth
- 25. Relevant Content for Omni-Channel Fractional Marketing: Providing Relevant, Constant Content, June 27, 2014 - By Michael Penney - Email Marketing Strategy Browse and/or click, but didn’t buy Confirmation, and post purchase communication Dynamic Recommendation Abandoned cartSocial Media Intro
- 27. Have you ever intentionally browsed products in a store but decided to buy on line? Have you ever intentionally browsed products online but decided to buy in store? 0% 40% 80% 100% PwC’s Annual Global Total Retail Consumer Survey February 2015, 19,068 Respondents 20% 60% Yes No Convenience Showrooming vs web-rooming
- 28. • 2008 Click & Collect • Online orders grow 19% • 56% of online orders are C&C • Store growth from 42-65 “The role of the shop is absolutely critical in providing the online sales” - A. Street, Managing Director Convenience Click and collect http://www.deloitte.co.uk/tmtpredictions/click-and-collect-booms-in-europe/
- 29. Excellent Customer Service Over the next five years, what is the primary way your organization will seek to differentiate itself from competitors? Customer service/ customer experience – making it easy, fun, valuable and/or pleasurable to shop from us Product service/ quality Product service/ choice Mobile – becoming a ‘mobile first’ company that absolutely caters to the mobile shopper/ buyer Convenience – fast delivery, in-store pickup, multiple payment mechanism, buy online return-to-store etc. Price 0% 20% 40% 50% Econsultancy/ Adobe Quarterly Digital Intelligence Briefing | 2,146 Respondents 10% 30%
- 30. Aspiration vs. Reality Forrester Research, Relevant Customer Experience, January 2015 80% 11% Aspire to be customer experience leaders Deliver Excellent Experience
- 31. Service Expectation Zendesk, Omni channel Customer Service Gap, 2013
- 32. Shifting from Acquisition to Retention 54% Of businesses prioritize meeting revenue targets 63% Of businesses prioritize acquiring new customers
- 33. • A customer’s typical 2,500 choices are increased to 15,000 choices • Transformed 450 stores into a network of many distribution centers • Improved store conversion • Increased loyalty • Increased endless aisle transactions Customer Service Store Associate Application
- 34. Social • Product • Sales • Marketing • Public Relations • Community • Crisis • Support wikipedia.org/wiki/Social_media
- 35. Social purchases through social recommendations 26% induced 2/3 impact on point of purchase 10% more purchases based on recommendations from 2013 McKinsey, Getting a sharper picture of social media’s influence, Jacques Bughin, July 2015, 20,000 EU Respondents
- 36. Brazil Social Media Facebook Google+ LinkedIn Twitter Tumblr 0% 20% 40% 50%10% 30% Number of visitors in millions 60% Percolate, Global Marketers Guide to Brazil, 2015
- 37. Social and Internet Growth 2011 Social media users (millions) % of internet users 56.1 66.2 78.3 88.3 97.8 104.2 11071% 74% 79% 82% 86% 87% 89.2% 2012 2013 2014 2015 2016 2017 Percolate, Global Marketers Guide to Brazil, 2015
- 38. Social Linked to Television Percolate, Global marketer’s Guide to Brazil., 2015 12pm Comments about TV more than double during the hours when novelas and soccer matches are aired 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm
- 39. Personalized Experiences Staying Top of Mind with Customers A rich opportunity to create experiences that are informed not only by what they do but also by what they directly tell you that they want • Deals and promotions • Communications and website features that personalized the experience for the user based on past behavior • More effective were the tools that allowed the customer to set the controls
- 40. Shrink Distance 1 Shrink Time 2 Own The Journey 3 Achieving & Scaling Excellence
- 41. • Integration with physical stores to pick up and return online orders in store • Integration to loyalty • 200k orders on BF through CM • 24% increase in conversion • 130% increase in mobile traffic
- 43. The Number One Focus
- 44. Consumers’ Shopping Journey Is … … Self Directed … Self Serviced … Self Actualizing
- 45. Customer experience is the currency of commerce The consumer controls the exchange rate
- 46. The “Omni-Channel” Challenge $ Customer Experience Profitability Metrics
- 47. I leave you with these questions • What does your customer need next? • How does it effect your brands relationship when delivered? • Does your company have the right business practices in place to drive innovation? • Are you surrounded by the best support systems both from a technology and creativity perspective?
- 48. Thank You