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    Operating Seamlessly:Integrating Operationsto Deliver the Non-StopCustomer Experience

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    Introduction 1

    Toward seamless retail 2

    Evolving to the future 3

    The customer experience 4

    is everythingTraditional channel boundaries 8among teams are over

    New roles for store associates 10and stores

    The evolution of the elastic supply chain 12Metrics for a new reality 14

    Getting started 15

    Looking ahead 16

    Get in touch 17

    References 17

    Contents

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    Operating Seamlessly

    To keep up, retailers must evolve. Its a future where

    they transform into integrated retail organizations thatdeliver seamless experiences for non-stop customers.

    Todays non-stop customers are online, on the

    go, in stores and in touch with social networks

    from Facebook and Twitter to Pinterest and

    Instagram. These customers have more tools

    than ever to learn about products, compare

    prices and gather insightsthe options are

    always evolving. And these customers want

    a relevant experience while paying less.

    In fact, Accentures survey of 6,000 consumers

    in eight countries reveals that the majority of

    respondents believe that integrating in-store,

    online and mobile is the number one thing

    that retailers can do to improve the shopping

    experience.1Survey data shows that when it

    comes to in-store shopping, consumers want

    the basicsthe right products, the right prices

    and an easy shopping experience.

    To attract these customers and succeedin a complex, fast moving and hyper-

    competitive environment, retailers must

    change their game to remain relevant.

    They must become seamless retailers

    (see Toward seamless retail overleaf).2

    As part of Accentures series on seamless

    retailing, this point of view addresses

    the seamless operations aspect of this

    transformation. This is a future in which the

    retail organization becomes as connected as

    customers are. The focus is on reinventing the

    status quo across marketing, merchandising,

    supply chain and channel teams, talent andmetricsconnecting isolated functions and

    roles in new ways.

    How can retailers organize to meet

    consumers evolving needs without adding

    cost and complexity? While there is no one-

    size-fits-all guide to becoming a seamless

    retail organization, the potential rewards are

    significantso are the risks of inaction.

    Retail will changemore in the nextfive years than ithas in the past 50.

    COMEIN

    OPENWERE

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    2 Operating Seamlessly

    Toward seamless retailDelivering a consistently personalized, on-brand experience for every

    customerevery time, across every channel is the holy grail of seamlessretailing. Its essential for retailers to remain relevant, build loyalty and

    boost sales in a turn-on-a-dime market.

    Seamlessness requires a new breed of customer experience, operations,

    platforms and partnerships. Retailers must evolve to:

    CustomizeUnderstanding individual shoppersin context and across channels

    ConnectIntegrating operations to sustain

    a single customer conversation

    ConvergeBuilding standardized IT platformsthat unify divergent data sources

    CollaborateForging partnerships to strengthenthe customer value proposition

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    Do we have the right

    people, the right

    skillsand the right

    accountabilities?

    How can we address the

    political realities when

    trying to transform

    our organization?

    How should we

    prioritize short

    and long-term

    strategies?

    Evolving to the futureFrom empowered customers and channel complexity to warp-speed innovation and the

    competitive threat of online pure plays, the new face of retail is not for the meek.

    In fact, Accentures evaluation of 60 global retailers reveals a significant gap between realityand customer expectations.3Yet forward-thinking retailers are realistic and pragmatic enoughto understand the need for change.

    What is clear is that there is no single

    cure-all for every retailer in transforming

    the organization. Each will take a distinct

    and nuanced journey to seamlessness,

    some faster than others, some more

    streamlined than others, and some more

    boldly than others.

    No retailer has yet to realize every aspect of

    seamless retailing. However, we are seeing

    companies exploring seamless options more

    and more. For example, Macys and Saks are

    among retailers that have created new

    senior level positions to drive integration

    and seamlessness around the

    customer experience.

    While there will be changes in IT, human

    resources and other enabling functions, this

    discussion focuses on customer-facing area

    where retailers must change in five key area

    These include actions that retailers can take i

    marketing, merchandising, supply chain and

    channel teams, and talent and metrics and ar

    explored in detail on the following pages.

    Even with thiseyes-open approach,becoming seamless

    raises more questions thananswers as retailers take a

    hard look at what theirfuture organizationmight look like:

    Operating Seamlessly

    Where do we start?

    How should we organize

    and operatewhat specifi

    changes must be made?

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    4 Operating Seamlessly

    It is not enough for retailersto simply agree thatcustomers are empoweredlike never before. They mustmake substantive operationalchanges where awareness

    of and attention to thepersonalized, relevant anddistinct customer experienceis a primary focus.

    Leading the way, traditionally independent

    merchandising and marketing organizations

    must converge under a customer experience

    umbrella. The emphasis must be on the

    customer experience as much asif not more

    thanproducts and pricing. Having the right

    products and pricing is a given for success.

    But the real source of differentiation will be

    the customer experience.

    Trumpet the brandvoice loudlyAs part of this focus on the customer

    experience, marketing and merchandising

    must present a cohesive brand to the non-

    stop customer. This requires a laser focus on

    developing consistent brand campaigns across

    existing and new channelsalways with an

    eye to the horizon. The pace of change is

    simply that swift.

    Yet marketing cannot stop here. The brand

    presence must be bold, clear and consistent

    to connect with customers and to rise above

    the noise of consumers always-on lives.

    The execution of such campaigns is of

    singular importance.

    While print and circular were once retailers

    marketing vehicles of choice, todays focus

    is on ever-evolving online, mobile and social

    vehicles. These channels are here to stay, and

    their impact is increasing at a rapid pace.

    Forrester Research estimates that the social

    media, email and mobile marketing market

    a $6 billion market opportunity todaywill

    skyrocket to $16 billion in just three years.4

    Having ongoing brand interactions with

    consumers across all channels requires new

    competencies including deep fluency in

    cutting-edge interactive technologies and

    an ability to sense, evaluate and respond at

    speedand at scaleto customer interaction

    Whats more, success will require increased

    collaboration with operationsboth

    online and in storeand approaches that

    synchronize consistent, non-stop customerexperiences across all customer-facing teams

    There are retailers making inroads in this

    area. Consider Williams-Sonoma, a home

    furnishings retailer in the United States and

    Canada with a number of niche brands. The

    company has evolved its legacy marketing

    approaches to an omnichannel one with a

    strong social media focus while maintaining

    the integrity of its brand family.5

    The customer experienceis everything

    1

    $6bnsocial media,

    email and mobilemarketing market

    opportunitytoday

    willskyrocket to

    $16bnin just

    three years

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    Operating Seamlessly

    Infuse merchandisingwith customeradvocacyThe future of merchandising must be about

    leading customers to their desired purchases

    with a personalized, end-to-end experience

    that has no seams from either retailers or

    customers perspectives.

    This means trading product centricity for

    customer advocacy and offering customers

    the right price, assortment, promotionand

    now customer experienceconsistently

    across channels. Moreover, the customer and

    product agendas must be in lock step and

    inform merchandising tactics at every turn.

    This strategic combination of customer

    experience insight and merchandising

    acumen must become a core competency

    for retailers. Customer insight data is the

    glue that holds this customer experience

    function together. Without data-driven views

    of customerswho they are, what they want,

    how they behaveretailers cannot offer

    authentic and effective customer experiences

    even to their most brand-loyal shoppers.

    To truly understand and deliver the right

    customer experiences, the customer insight

    group must become more embedded

    with merchandisingeither physically or

    operationally. This integration eliminates

    insight islands, making it easier to incorporate

    insights at the point and place of decision.

    Such changes will certainly impact

    existing leadership and cross-functional

    organizational structures. More and more,

    retailers will need to consider creating

    customer experience organizations.

    These can take on many forms. For one,

    customer experience teams could be located

    within marketing and influence merchants

    from there. In another scenario, the customerexperience team could be fully embedded

    in merchandising with an equal voice at

    the table. Or separate customer experience

    function with individual team members

    matrixed into each merchant buying team.

    Customer experience organizations can take on different models.

    Customer experience teamscould be located withinmarketing and influencemerchants from there.

    The customer experienceteam could be fully embeddedin merchandising with anequal voice at the table.

    Separate customer experiencefunction with individual teammembers matrixed into eachmerchant buying team.

    Matrixed

    $ $

    MerchandisingMarketing

    $

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    Operating Seamlessly

    Get up close and personal with customers

    Meeting customers demands for a superior

    customer experience will ultimately mean a

    decline in mass marketing vehicles in favor

    of highly-targeted micro-promotions. Thisis because non-stop customers preferand

    are more responsive totargeted one-to-one

    interactions and personal dialogues

    with retailers.

    Accentures recent consumer survey supports

    this concept. Results reveal that 88 percent of

    customers are willing to or would definitely

    use personalized, real-time promotions sent

    to their mobile phones. Of those customers,

    38 percent say they would definitely use

    such promotions and cannot wait until theirfavorite retailers offer them. Whats more,

    nearly all consumers surveyed want the same

    promotions in-store and online.6

    As retailers become more seamless in how

    they operate, strategic, real-time personalized

    services and offeringsin line with the right

    productsmust become the norm.

    With the influx of consumer data, advanced

    analytics capabilities and the right technology

    platforms, retailers can do what once seemed

    contradictory if not impossibleconnect with

    individual consumers at scale.

    The chief marketing officer of Macys explains

    just how personal micro-promotions executed

    at scale can be. There are times well send out

    18 million unique emailsdown to the point

    of emailing a shopper with a message like:we saw you last night on the womens shoes

    part of the website, and then send that

    shopper a targeted show promotion.7

    Rethink support functions andfuel the innovation engine

    To enable these new capabilities and teams

    of the future, something has to give.

    To reinvent operations, retail organizations

    require specialized support functions and

    new capabilities to free up capacity and

    infuse innovation into the business. Without

    this, retailers are working against the tide of

    increased market complexity, the big data

    onslaught and the sheer pace of innovation.

    Affecting change can begin by taking an

    objective look at roles and responsibilitieswithin these functional areas, redefining and

    prioritizing to optimally support both tactical

    and strategic needs. Specialized execution

    teams must take on tactical activities. One

    of the worlds largest retailers has done just

    that. The company relies on the commercial

    division of its India-based global service center

    to handle marketing and merchandising

    functions including sourcing, forecasting,

    supplier management and analytics.

    Several tactical areas must take on a new

    importance and evolve in the seamless

    organization. Retail data management,

    including master data management and

    content management, is essential to enable

    clean and common data across functions. And

    strong analytics capabilities are essential to

    produce actionable insight for faster, better

    decision making.

    With their rate of innovation typically

    underperforming the online pure plays,

    traditional retailers can use this opportunityto redirect freed up resources to support a

    strategic innovation agenda. One way is to

    consolidate and redirect execution functions

    in-house or externally and develop innovation

    labs to launch horizon programs and products.

    Outsourcing commodity functions can free up

    funding to invest in innovation.

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    8 Operating Seamlessly

    Many retailers today haveindependent marketing,merchandising and supplychain teams that focus on asingle channel. But in the eraof the non-stop customer,

    this model is out of synchwith the times.

    As retailers prepare for a seamless future,

    they must work to eliminate these channel

    boundaries on their own timetable. The key

    will be to strike the right balance between

    bringing functions together and the need

    to incubate newer online businesses by

    determining the right threshold for change

    against the retailers business strategy.

    But in the end, these teams must be

    connected to serve the entire enterprise. Its

    about working more effectively and cost-

    efficiently as a seamless retail organization,

    smashing antiquated internal silos to function

    just as cross channel as customers shop.

    Without a doubt, this is a significant and

    transformational change. It will mean holistic

    ownership of product categoriesand,ultimatelyholistic customer and product

    P&L responsibility across all channels.

    Governance, guidelines, skills and capabilities

    must be initiated or updated to enable

    a consistent cross-channel experience.

    Leadership and organizational changes will

    also be in playfrom the executive suite to

    the showroom floor.

    The good news is that such changes are

    possibleand profitable. In fact, some retail

    pioneers have already made strides in this

    area. Macys, for example, recently named a

    chief omnichannel officer with responsibility

    for integrating store, online and mobilea

    move that demonstrates the retailers desire

    to align operations with how customers

    shop.8Staples is poised to bring its U.S. retail

    business and staples.com under unifiedleadership. Whats more, Apple already

    operates with a single P&L.9

    In the United Kingdom, the John Lewis

    department store has strengthened its ability

    to offer customers cross-delivery options and

    click-and-collect services by unifying online

    and store businesses under a single reporting

    function. The initiative has generated

    outstanding results. Between 2011 and 2012

    John Lewis reported an 8.7 percent lift in

    gross sales, to 4.4 billion.

    2 Traditional channel boundariesamong teams are over

    Customer placesorder online

    Customer notifiedof order status

    Customers orderdelivered to store

    Customer collectsorder from store

    John Lewis, in the United Kingdom, reported an8.7%liftin gross sales, to 4.4 billion from click-and-collect services.

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    Traditional retail teams will need to explore different organizational approaches to be ableto give customers the seamless experiences they want. While there is not a single right

    answer, possibilities include:

    Chief seamlesschannelsofficer model

    Several retailers have

    recently created a chief

    omnichannel officer

    position, which is anexcellent step toward

    eliminating traditional

    channel boundaries and

    delivering one customer

    experience in-store, online,

    through mobile, etc.

    The authoritychief customerofficer model

    A chief customer officer

    oversees a consolidated

    marketing and

    merchandising function,with a dramatically

    higher level of integration

    across product, offer

    and customer experience

    decision making. This can

    be a new position or a role

    filled by the current chief

    merchant, chief marketing

    officer or channel leader.

    The facilitatorchief customerofficer model

    A chief customer officer

    position is created to work

    closely with the chief

    marketing officer, the chiefmerchant, CIO and other

    leaders to drive customer

    experience orientation

    throughout organization.

    The collaborationmodel

    If structural changes

    are not possible initially

    or even in the long

    term, leadership must

    support an environment

    where cross-functional

    collaboration is a priority.

    Strong governance

    with a clear decision

    approach and adherence

    to customer-focused

    processes is required.

    Ultimately, the chief

    merchant, chief marketing

    officer, chief channelofficer, chief customer

    officer and CIO must

    work as equals to deliver

    the desired seamless

    customer experience.

    Changing the leadership structure

    Operating Seamlessly

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    10 Operating Seamlessly

    Retail customers move backand forth across channelswith intention to completetheir shopping missions.Yet even in a multichannelenvironment, physical stores

    still matter. In fact, 89 percentof respondents to AccenturesSeamless Retail Survey ratein-store as the easiest retailchannel in which to completea purchase.

    Moving forward, realizing seamless retail

    operations requires two distinct roles for

    store associates. Retailers need the right mix

    of customer facing and fulfillment focusedassociates. And each type plays a specific

    role in connecting online and in-store

    environments in new ways.

    Keep people comingback with highlyskilled talentTo drive seamless operations, customer-facing

    store associates must evolve to become

    the frontline stewards of an increasingly

    sophisticated customer experience. These

    new store associates must understandcustomers, products, prices and promotions,

    using technology tools to gather and share

    information to meet customers needsand

    connect with their aspirations.

    Aligning technology, mobility, customer and

    product knowledgewithin and outside

    the physical boundaries of the storeis a

    core competency for this store associate.

    Associates essentially become cross-channel

    customer ambassadors. This shift helps

    retailers capture the highest share of walletfrom customersin-store shoppers become

    online shoppers, and when online shoppers

    visit the store, they want to come back.

    To create a compelling in-store experience

    that resonated with cross-channel shoppers,

    John Lewis piloted a virtual fashion mirror

    over six weeks in 2012. This innovative tool

    allowed customers to try-on outfits and

    get recommendations for coordinated pieces

    without browsing the racks. Store associates

    helped guide the experience, and customers

    could make purchases in-store or online

    via an in-store kiosk. Sixty-seven percent ofparticipating customers reported that they

    enjoyed this experience.10

    Wal-Marts Scan & Go program is another

    example of how retailers are using technolog

    tools to offer customers new control over

    their shopping experiences. Using their

    iPhones, customers scan and bag groceries

    while shopping and then pay quickly and

    conveniently using self-checkout. As retailers

    provide options like this, sales associates will

    have to be far more sophisticated in helpingcustomers use their own devices than they

    are today.

    3 New roles for store associatesand stores

    Add item

    Scan & Go!

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    Operating Seamlessly 1

    To provide experiences like this, retailers will

    have to re-skill and appropriately incent

    their sales workforce to support them. New

    and continuous training programs will be

    essential. Not only will associates have to

    understand products and promotions across

    channels, they will have to be trained on

    enhanced customer experience tools.

    Training in a seamless retail organizationmust be real-time and at the point of

    experience with customers, using the latest

    mobile tools. To accomplish this, retailers will

    need training approaches that are dynamic

    and also cost effective and efficient.

    According to Motorolas most recent Holiday

    Shopping Study, 47 percent of shoppers

    reported better experiences when store

    associates consulted technology tools for

    product information.11And better shopping

    experiences usually translate to betterbuying experiences.

    Enable stores asfulfillment centersJust as store associates need to deliver

    a more sophisticated in-store customer

    experience, these associates must meet

    the needs of customers who never even

    enter the store. More than an important

    operational shiftthis is a cultural shift

    in which stores and associates treat every

    online order as if it came from the brands

    most loyal customer.

    An important part of making this happen

    is a shift where stores become fulfillment

    centers. Its about increasing real-time

    order fulfillment with store associates who

    provide non-stop customers with what they

    want faster. Rethinking stores as fulfillment

    centers provides customers with the highly-

    coveted immediacy that shipping fromdistant distribution centers rarely achieves as

    easily and inexpensively. This translates into

    better, more customer-centeredand more

    profitablefulfillment.

    To drive this shift, retailers must identify

    another type of store associate, apart

    from the customer experience ambassador

    mentioned earlier. These associates do not

    necessary sell. Instead, they pick, pack

    and ship orders just as distribution center

    associates do today. This is similar to apparel

    retailer Zaras approach where sales associate

    have traditionally spent time focused on

    logistics related activities.12This transitionwill mean that retailers must rethink store

    processes, reconsider talent and manage

    labor differently. Store leadership at all levels

    and across functions will also change to

    effectively manage these new specializations

    But this shift can work. Consider that Macys

    and Nordstrom are using stores to support

    online order fulfillment today.

    47%of shoppers reported betterexperiences when store associatesconsulted technology tools forproduct information.

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    12 Operating Seamlessly

    The retail supply chain is thelifeline of the retail enterprise,getting the right products tothe right stores, distributioncenters and customers at theright time. Changes to the

    supply chain and inventorymanagement are key tofulfilling the promise ofseamless retailing.

    Make visibility anddynamic fulfillmentmandatoryJust as single-channel teams create blind

    spots in serving cross-channel customers, so

    does a supply chain focused only to a single

    area of the business. Instead, inventory must

    be managed at the enterprise level. All nodesof the supply chainstores, suppliers and

    other partners includedmust work together

    to increase product visibility, availability,

    profitability and speed to customer.

    This integration is also important for retailers

    because it is essential to helping them

    meet non-stop customers expectations for

    inventory visibility. When asked to name the

    most important information to have prior

    to visiting a physical store, 66 percent of

    respondents to the Accenture Seamless RetailConsumer Survey selected product availability

    information. Simply put, when customers

    want something, retailers must make sure

    they get it.

    Achieving a single view of inventory

    availability will mean that accountability

    must shift from location inventory

    ownership to enterprise inventory

    ownership. Existing supply chain

    organizations must transform into a single

    supply chain team that includes digital

    fulfillment centers, digital fulfillment from

    stores and enterprise forecasting capabilities

    It is about replacing fragmentation withcommon teams and processes.

    Perhaps not surprisingly, data indicates that

    retailers recognize the need for a new kind

    of inventory management. Eighty percent of

    mega retailers recently surveyed by the Retai

    Systems Research identified shared inventory

    for in-store and online fulfillment as a top

    priority, though many are still not there.13

    Getting there, and making profitable decision

    with a streamlined supply chain, will requirespecialized teams and capabilities to analyze

    and optimize inventory data and practices

    across channels.

    4 The evolution of theelastic supply chain

    The retail supply chain is the

    lifelineof the retail enterprise.

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    Operating Seamlessly 1

    Emphasize returnsmanagementIt is increasingly common for customers to

    purchase a product in one channel and to

    expect to return it in another. The non-stop

    customers path to return is just as fluid

    as the path to purchase. In fact, Accenture

    survey data reveal that the majority of

    consumers will seek out the least expensive

    return option even if it is not as convenient

    as other options.

    As such, retail organizations must

    manage returns more holistically.

    Returns management must become a

    core competency for all customer-facing

    employees at stores, distribution centers and

    call centers. Retailers must focus equally on

    moving product through the forward and

    backward supply chain.

    This focus is about aligning returns with

    customer behaviorskeeping customers

    happy while maintaining profitability.

    However, it can be quite challenging because

    managing returns is highly complex today.

    Retailers must now solve for disposition,

    fraudulent and multichannel returns with

    more risk of getting taken advantage of than

    ever. In 2012 alone, retailers lost an estimated

    $8.9 billion to return fraud.14

    Moving through this complexity, retailers

    must consider how to standardize, streamline

    and monitor return processes, so returns are

    painless and profitable.

    It will be essential to train store associates

    in this area. While doing so, leadership must

    account for labor management implications

    around the measurement/incentives of

    multichannel returns. They must also get

    better about scheduling and capacity asreturns will continue to play a growing role

    in retailers business. But with updated core

    processes, technology and skills, returns

    management can be a source of customer

    loyalty and added value.

    Nordstrom is one retailer that has historically

    gotten returns right. The Seattle-based

    fashion retailer has a sterling reputation

    for returns.

    Retailers must consider how to standardize,streamline and monitor return processes, soreturns are painlessand profitable.

    REFUND

    Online purchase

    Return to store

    Receive refund

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    14 Operating Seamlessly

    As retail organizationsevolve to become seamless,traditional metrics mustevolve too. This includesboth the way that retailerstrack their performance

    holistically and how they areviewed externally, as well ashow companies internallymeasureand, ultimatelychange behavior. Changingmetrics at both of theselevels is essential for retailersto become truly seamless.In essence, incentives must

    influence behavior change todrive sales across all channels,powering the dissolution ofexisting seams.

    Looking at the macro level, existing metrics

    like comp store sales are not going away any

    time soon, but they must reflect what the

    reality of the business is. The comp store sales

    need to reflect total sales growth for in-store

    and online purchases holistically. Retailers

    must introduce comp customer sales to

    work in tandem with traditional comp store

    sales. Its about measuring total category

    performance online and offline.

    This is a necessary shift because customers

    shop across all channels, and retailers must

    be measured, rewarded and incented on

    enterprise customer sales.

    Changing measures and metrics at a micro

    level is also essential to eliminate potentially

    dysfunctional behavior that can block

    seamlessness. Retailers must incent different

    departments and functions to operate with

    a seamless mindsetaligning incentives with

    metrics and measurement. For example, if

    stores and associates are not credited for

    online purchases, they have little incentive to

    make online order fulfillment a priorityandthe customer experience suffers.

    Some retailers are making changes to alleviat

    challenges like this. As part of its commitmen

    to integrate in-store and online channels,

    Nordstrom recognized the importance of

    aligning teams across channels around

    customer sales over fostering an environmen

    where teams fight over credit.15

    This issue of giving stores credit for sales

    initiated in other channels will continue tobe significant. If retailers want to continue

    to rely on stores to alleviate out-of-stocks

    for online orders, they must look at customer

    value and related incentives with much more

    of an omnichannel eye.

    Customers shop across all channels,

    and retailers must be measured,

    rewarded and incented on

    enterprise customer sales.

    In storeVsonline

    5 Metrics for a new reality

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    Getting startedRetailers can create momentum towards becoming a seamless retail

    organization by considering the following steps:

    Acknowledge the burning platformWhether you have explicitly acknowledged it or not, the

    retail industry is dramatically changing, and no company

    will survive without transforming over the next five years.

    Determine how proactively and quickly your business

    will migrate categories to online customer purchase and

    understand the radical implications of those transitions

    across store size and overall count, assortment, space,

    pricing, inventory and store labor.

    Identify target customer experiencesWhile we may not be able to predict exactly how customer

    experiences will change, we do know they will change

    significantly as technology transforms how customers

    shop. As inventory visibility, scan & go and other

    technologies rapidly gain adoption, are you organized to

    rapidly deliver those customer experiences? Determine the

    seamless product-specific customer experiences that will

    define how your customer will want to shop.

    Put the right leadership in placeRegardless of which organizational model is right for you,

    some level of new leadership is critical to be a catalyst

    to help others throughout the company think differently

    and drive the change. Consider whether establishing a

    new chief customer officer to define the overall customer

    experiences, or a chief channel officer to unite all customer

    touchpoints, is right for your business.

    Involve the right people from

    the beginningBecause the need to become seamless will touch on

    customer-facing and enabling functionsfrom IT to

    merchandising, to marketing, to channels to supply chain

    representatives from all areas must actively participate from

    the outset to ensure that the left hand knows what the

    right hand is doing. Establish the right governance model to

    ensure the collaboration takes place.

    Know that making the business

    case will be challengingWhile we know that customers demand seamless

    experiences across all channels, defining a business case

    as is historically done for traditional initiativescan be

    challenging. It is easy for companies to estimate sales lift,

    cost take-out and other potential benefits. But the reality is

    that it is as much a defensive play to maintain your current

    customer base, your current share of wallet and preventdefection to online pure plays and other competitors as it

    is about driving an upside. Realize that becoming seamless

    is about survivaland then establish operating metrics to

    monitor progress to ensure your business is moving ahead.

    1 4

    52

    3

    Operating Seamlessly 1

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    16 Operating Seamlessly

    By building a seamless retail organizationone

    step at a time and at their own paceretailers can

    deliver non-stop customer experiences that defy

    the limitations of a single channel. Only throughthis type of transformation will retailers be able to

    surviveand thrivethrough the dramatic changes

    driving a reinvention of retail as we know it.

    Merchandisingand Marketingconvergewith a unifiedposition withthe customerexperiencebecomingequally

    importantas productand price.

    Sales associatesmust providesophisticatedcustomerexperienceswhile fulfillmentassociatesenable complexdelivery options.

    Single-channelteamsmarketing,merchandisingand supplychainmustconsolidateto servecustomers

    across theenterprise.

    The supplychain mustevolve tomanageinventoryholisticallyforward,backward andsideways.

    Metrics andincentivesmust expand toinclude holisticcustomervaluecompcustomer salesare as importantas comp store

    sales.

    Looking aheadIn the coming years, customers demands will change, evolving in ways that we cannot yet

    imagine today. Engaged and delighted by shopping missions suited to their needs, non-stopcustomers want the ideal experience from retailers. And if they dont get it, they simply changecourseexploring other channels and competitors.

    To deliver seamless experiences, retailers must operate seamlessly themselves. Navigating allof the decisions that must be made can be overwhelming, but retailers can focus on these keycustomer-facing areas:

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    Operating Seamlessly 1

    Get in touchAccenture has a dedicated team focused

    on the issues retailers face competing

    in the online economy for more

    information please contact:

    GlobalChris Donnelly

    [email protected]

    Asia PacificTakaaki Haraguchi

    [email protected]

    EuropeAdrian Bertschinger

    [email protected]

    North AmericaDave Richards

    [email protected]

    1 Accenture Seamless Retail Consumer Survey, November 2012.

    2 See Accentures Seamless Retail: Customize. Connect. Converge.

    Collaborate. for more detail.

    3 Accenture Seamless Retail Consumer Survey,November 2012

    4 Forrester Research Inc., US Interactive Marketing Forecast, 2011 To 2016,

    September 2011.

    5 Fiorletta, Alicia. (October 30, 2012). Social Advocacy Summit: Retail and Facebook

    Execs Discuss Shift to Converged Marketing. In Retail Touchpoints Web site.

    Retrieved March 5, 2013.

    6 Accenture Seamless Retail Consumer Survey,November 2012.

    7 Kalakota, Ravi. (January 19, 2012). Multi-channel to Omni-channel Retail

    Analytics: Big Data Use Case. In Practical Analytics Word Press Web site.Retrieved

    on March 5, 2013 from http://practicalanalytics.wordpress.com/2012/01/19/omni-

    channel-retail-analytics-a-big-data-use-case/

    8 Demery, Paul. (January 29, 2013). Macys Names a Chief Omnichannel Executive.In Internet RetailerWeb site. Retrieved on March 5, 2013 from http://www.

    internetretailer.com/2013/01/29/macys-names-chief-omnichannel-executive

    9 Eisenberg, Bryan. The Steve Jobs Way to Marketing Integration. In State of Search

    Web site.Retrieved on March 5, 2013 from http://www.stateofsearch.com/the-

    steve-jobs-way-to-marketing-integration-by-bryan-eisenberg-thegrok/

    10 Cisco. Leading U.K. Retailer, John Lewis, Pilots Unique Cisco StyleMe Fashion

    Mirror to Help Capture More Cross-Channel Shoppers.http://www.cisco.com/web

    about/ac79/docs/retail/John-Lewis-and-Cisco-Virtual-fashion-mirror-case-

    study.pdf

    11 (January 2, 2013). Nearly 50% of Consumers Believe They are More Informed

    than Store Associates. In Retail TouchPoints Web site.Retrieved on March 5, 201

    from http://www.retailtouchpoints.com/in-store-insights/2162-nearly-50-of-

    consumers-believe-they-are-more-informed-than-store-associates-

    12 (April 18, 2011) Why Logistics Personnel Should Work in Stores? In StoreLogisti

    Web site.Retrieved on March 5, 2013 from http://instorelogistics.wordpress.com

    13 http://www.epicor.com/host/retail/RSR2012StoreReport.pdf

    14 Winter, Caroline. (December 30, 2012). When Christmas Brings Retailers Many

    Unhappy Returns. In Bloomberg Businessweek Web site.Retrieved on March 5,

    2013 from http://www.businessweek.com/articles/2012-12-30/when-christmas-

    brings-retailers-many-unhappy-returns

    15 Taylor, Heather. (September 20, 2012). Nordstrom VP Warns RetailersPut Customers in Drivers Seat, or be Dead by 2020. In EConsultancy Web site.

    Retrieved on March 5, 2013 from http://econsultancy.com/us/blog/10736-

    nordstrom-vp-warns-retailers-put-customers-in-driver-s-seat-or-be-dead-

    by-2020

    References

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    About Accenture

    Accenture is a global management

    consulting, technology services and

    outsourcing company, with approximately

    261,000 people serving clients in more than

    120 countries. Combining unparalleled

    experience, comprehensive capabilities

    across all industries and business functions,

    and extensive research on the worlds

    most successful companies, Accenturecollaborates with clients to help them

    become high-performance businesses and

    governments. The company generated net

    revenues of US$27.9 billion for the fiscal

    year ended Aug. 31, 2012. Its home page is

    www.accenture.com.

    Follow us on Twitter @AccentureRetail

    Learn more at www.accenture.com/retail

    Copyright 2013 Accenture. All rights reserved.

    Accenture, its logo, and High Performance Deliveredare trademarks of Accenture.

    Rights to trademarks referenced herein, other thanAccenture trademarks, belong to their respectiveowners. We disclaim proprietary interest in the marksand names of others.


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