This Slideshare asks 'what really is omnichannel?' Is it dead or is it more alive than ever?
It also explores 3 trends which are currently shaking up omnichannel and examples of evolving tactics within the field.
8. | 8
#1 The consumer’s journey just got
more complex…
9. | 9
#1 Consumer adoption of new technologies
is now happening faster and faster…
Source: The Economist
10. | 10
#1 This rapid adoption of technology is
spilling over into retail…
Over the last 6 years, ecommerce has
grown at a CAGR of almost 16%.
Last year digital influenced $1.7T of
in-store sales compared to just $0.33T
a few years ago.
Sources: U.S. Census Bureau; Deloitte
11. | 11
#1 Now there are 800+ possible consumer
journeys…
Source: Cisco
12. | 12
#1 What that means for both brands and
retailers…
1. It’s Not About Maximizing Channels Separately.
2. Waiting on Technologies to Go Mainstream Will Put You Out
of the Game.
3. It’s Time to Get a Unified View of the Customer.
13. | 13
#2 The ZMOT isn’t the only point of
influence anymore…
14. | 14
#2 Ads are losing their luster….
70%
of consumers now
find out about a
product outside of
brand advertising
Source: Deloitte
15. | 15
#2
61%
of consumers are are using search engines for
their research activity, not a brand’s app or
website
And, brands are having less effect
throughout the journey…
of consumers read product reviews during
their shopping journey
of consumers say product information on social
channels influences their decision75%
67%
Source: Deloitte
16. | 16
#2 What that means for both brands and
retailers…
1. Stop Focusing Exclusively on “the Purchase”. Use Analytics
to Influence the Journey that Got Consumers There.
2. Revisit How Existing Touchpoints, like Brick-and-Mortar
Spaces, Can Be Best Utilized to Maximize Influence.
18. | 18
#3 Consumers are now in control & they
demand more…
Here are a few of their expectations:
85%
64%
82%
of consumers would be more likely to
shop in stores that offer personalized
offers
of consumers would be more likely to
shop in stores that offer specific
recommendations for products to
purchase
of consumers want to be able to return
items purchased online using free
shipping or a store visit
Source: Google
19. | 19
#3 Not Even the Giants Are Safe….
Source: About.com
20. | 20
#3 What that means for both brands and
retailers…
1. Make Experiences Hyper-Relevant
2. Unify Pricing, Delivery & Return Policies
22. | 22
I would argue that omnichannel was the wrong vision. It was meant to be
the same experience across every channel, but it should have been a
consistent experience across every channel, with the added layer of
context to then change the customers’ experience for their needs at that
moment.
You can’t just replicate the in-store experience online or vice-versa. Each
channel has its own virtues and unique purpose and that should be
recognized and embraced, because there’s a reason customers are still
using it.
- Jessica Stephens, SmartFocus
Omnichannel—The Wrong Vision?
“
”
23. | 23
Let’s turn it around for a second… The reality is, customers couldn’t care
less about omnichannel as a term. And, if we look at it through their eyes,
there’s more than just channels, what about the different phases that they
go through during their journey? What are they doing before, during and
after their purchase?
Because of that, it’s time to elevate omnichannel a bit, to what we call
omnipresence. A brand or retailer needs to understand what customers are
doing at every phase of their journey and then with that understanding they
need to make sure they are delivering a very hyper-relevant experience so
that they’re meeting the needs, the expectations and maybe even the
things the customer didn’t even know they wanted. That way, they’re
delivering what the customer needs at just the right moment in time.
- Gary Lee, InReality
It’s Time for Omnipresence…
“
”
26. | 26
• Didn’t follow everyone else—really considered what’s the real
role of brick-and-mortar for Bonobos and its customer base.
• Reengineered the form and function of the store to allow
customers to really experience the brand and the products,
switching the store’s role from fulfillment house to creating a
real-world interface for the web operation and brand—
physical up front, digital in the back.
Today, average order is now 50% higher for customers coming
in store than what Bonobos was seeing online-only. And, sales
per square foot is the highest known in men’s clothing.
What We Like About Bonobos…
28. | 28
• Used retail technology (beacons) in a clever way to tap into
the millennial audience.
• Setup up a location-triggered mobile campaign, similar to an
abandoned cart email campaign, offering customers the
opportunity to get an incentive for submitting a review of their
experience, rather than directly pushing the sale.
The campaign was extremely successful, and office actually saw
a 72% open rate and a high click-rate.
What We Like About Office…
30. | 30
• Took price disparity off the table from online to offline, and
even matches competitor prices to fulfill its mission to
guarantee customers the lowest price.
• Worked to give customers a truly seamless and easy
purchase, delivery and return process—customers can
choose what combination works best for them.
• Planning to spend $1.2-$1.5B in digital infrastructure to really
innovate how they deliver what customers need.
In annual shareholder’s meeting last year, they had seen
impressive growth: $12.5B in online sales, with an expected
25% increase this year.
What We Like About Walmart…
32. | 32
• Consumers now have 800+ paths to purchase!
• Don’t maximize channels separately. Think one
channel. One experience.
• Don’t wait on mainstream adoption. Digital will
make sure you lose.
• Consumers want hyper-relevant experiences.
• No more online-only or in-store only policies. One
channel. One experience.
• It’s time to move beyond omnichannel.
Tweetable Takeaways #Omnipresence
33. Meet InReality Meet SmartFocus
InReality helps brands and retailers increase
customer engagement by delivering hyper-relevant
customer experiences. Through a combination of
retail analytics, consumer insights, experience-
based design, fulfillment and 20 years of
transformative retail work, InReality helps maximize
influence along the path to purchase. Having
worked with clients like The Coca-Cola Company,
The Home Depot, Philips and Tempur-Sealy,
InReality is uniquely positioned to help brands and
retailers capture customer’s in the reality of today’s
complex retail environment.
Find out more at:
www.inreality.com
(770) 953-1500
info@inreality.com
SmartFocus is an innovator in messaging and
communications, enabling the world's largest
brands - including Mercedes-Benz, Macy's and
Levi's and to understand and connect more closely
with today's connected consumers; whether that
be via web, mobile, email or social channels.
Through The Message Cloud solution, SmartFocus
genuinely listens to and learns from customers
using patented algorithms and unique location-
based marketing tools. Using The Message Cloud,
SmartFocus customers have the rich data,
intelligence and the tools for contextually unique
engagements, through any digital channel.
Find out more at:
www.smartfocus.com
(425) 460-1000
Notes de l'éditeur
(JESS) HOW OMNICHANNEL CAME ABOUT & WHAT IT SHOULD HAVE BEEN
Omnichannel has become the buzzword of the moment for brands and retailers, but what is it exactly?
Ever since customers starting clicking on “buy” buttons instead of swiping a card, omnichannel has been a big focus for brick-and-mortar retailers. The dream was… a multichannel approach to sales complementary of today’s digital era The idea was to keep customers shopping seamlessly—whether online, on mobile or in store, by telephone or in-store. It was a step in the right direction as brands and retailers began to realize, ecommerce wasn’t going anywhere and nor was brick-and-mortar. So, conceiving physical and online spaces separately no longer made sense.
(GARY) WHAT IS IT REALLY?
But, the reality is… we’ve taken another buzzword and ran with it in several different directions, and ended up with:
Different channels
Different prices
Different return policies
Different sales commissions
And, confused and frustrated consumers
All in all, we’ve ended up with a series of optimized, but siloed channels.
Gary to Introduce
(GARY) TREND PROOF POINT + SO WHAT
Consumer hesitations once associated with the adoption of new technologies is quickly eroding. It took the telephone 35 years to reach a 25% adoption rate, but it only took the smartphone 3 years to do the same. Technology adoptions are moving fast and will move even faster going forward. This is and will continue to, affect how consumers shop/want to shop and how brands and retailers respond in a big way.
(GARY) TREND PROOF POINT + SO WHAT
The rapid adoption of technology is now spilling over into retail. Consumers are always on and that doesn’t stop for retail. Ecommerce is growing and digital influenced $1.7T in in-store sales compared to just $0.33 a few years ago.
(JESS) TREND PROOF POINT + SO WHAT
In fact, if we break down the customer journey. There are 4 main phases—customer research, purchase, receive and use. Across these 4 phases, there are now over 800 possible consumer journeys.
And, this will only continue to expand as consumers start adopting mobile and wearable technologies with the IoT.
Already, 49% of consumers say they would use smart watches to purchase in store. (Cisco)
WHAT BRANDS/RETAILERS NEED TO DO RIGHT NOW
It’s Not About Online/Offline (GARY)
- Not About Separating Church & State—Can’t Maximize Channels Separately
2) Don’t Wait then React in FUD. Start Pioneering. Consumers are Already There (GARY)
- Waiting for something to go mainstream to adopt will be too late for today’s consumers
- Caveat: Avoid digital for digital’s sake
- Retail as an industry is not know for being chock full of early adopters, to survive this new retail landscape, that will need to change. Flexibility and innovation is the new name of the game.
3) It’s Time to Get a Unified View of the Customer (JESS)
- Nearly 50% of marketers don’t have a single, unique view of their customers (Econsultancy & SmartFocus). Truly knowing and understanding your customer and having the the ability to map his or her journey is key to any solid omnichannel strategy. It’s important to define each role and benefit and map communication to each channel of your business.
Gary to Introduce
Zero Moment of Truth (ZMOT) refers to the point in the buying cycle when the consumer researches a product.
(GARY) TREND PROOF POINT + SO WHAT
The reality is, capturing today’s customers requires more than some good SEO to net consumers when they start directly researching your brand. Why? They’ve likely already had several touches—from pictures on their Instagram feed, recommendations from friends/family, mentions in their favorite blogs, etc. and relying on just the research phase to reach customers is not enough.
(JESS) TREND PROOF POINT + SO WHAT
Consumer is in control of their own journey, and the traditional methods of reaching a customer aren’t working as well for brands and retailers anymore.
WHAT BRANDS/RETAILERS NEED TO DO RIGHT NOW
Stop Focusing Exclusively on “the Purchase”. Focus on the Journey that Got them There. (JESS & GARY)
Understand your customer & their path to purchase & influence customers throughout their journey (in & out-of-store) (Jess)
Can’t influence the customer unless you understand their journey (analytics) (JESS)
Simply measuring channels sales misses the larger trend (GARY)
More and more of the critical points of influence are taking place outside of the brand/retailer’s control. Increasingly, retail is becoming an ecosystem that is built and directed by the consumer, and the steps failing to consider the critical points that might not be directly attributable to the purchase, you may be losing out on the sale.
2) Revisit the Role of the Brick-and-Mortar Store (GARY)
- A decade ago, a brick-and-mortar store was the only place to research, purchase and receive a product. Therefore, the primary role of the store was built around driving the sale, because that’s the only place it could happen. Today, consumers have options and the need for the store is vastly different.
Retail has evolved from the mass market to a world of MeCommerce where shoppers expect to shop when, where and how they please.
The emergence of MeCommerce is real and brands that don’t adapt their omnichannel strategy will be left behind.
Take Jenny here for example:
She always gets a great buying experience
She never sees a product out of stock or items not in her size
She always gets individualized and contextual messages
She always knows where her nearest store is
This is the reality of today’s MeCommercer world.
We’ve already said goodbye to Circuit City, Borders and most recently Radio Shack. And, other iconic brands are facing similar trials with forced store closings.
WHAT BRANDS/RETAILERS NEED TO DO RIGHT NOW
1) Make Experiences Hyper-Relevant (JESS)
- Keep marketing highly individualized and grounded in context, behavior & proximity
- Beacons and hype relevance in store
2) Embrace Unified Pricing, Delivery & Return Policies (GARY)
CONCLUSION
JESS Contextualization
Gary Omnipresence
It’s time for brands to start thinking beyond omnichannel to what we like to call omnipresence. So what does omnipresence actually mean? It’s about focusing on the entire customer journey, not just buying. It’s about making your brand relevant and available for consumers where and when they seek solutions for their needs. This requires understanding customers’ behaviors and needs across all 4 phases of the their path to purchase: research, purchase, receive, use (as discussed earlier).
EXAMPLE #1 - BONOBOS
Reengineering the form and function of the store and it’s first “Guideshop”—a real-world interface for the web operation—physical up front, digital in the back.
[GARY] EXAMPLE #1 - BONOBOS
Reengineering the form and function of the store and it’s first “Guideshop”—a real-world interface for the web operation—physical up front, digital in the back.
[JESS] EXAMPLE #2: OFFICE
Office example: geo-location, proximity push, abandoned store email, results
[GARY] EXAMPLE #3 - BONOBOS
Letting customers shop on their terms. Wal-Mart is working to integrate its physical stores with the digital business.
This includes letting customers pick up online orders in stores and providing text reminders from the pharmacy.
Wal-Mart is also expanding grocery delivery and pick-up tests.
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