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To find more about Kibo, call (877) 350-3866 or visit our website at www.kibocommerce.com 25 REASONS WHY YOU SHOULD OMNICHANNEL #1 #3 CONSUMERS WANT OMNICHANNEL Product Pricing Saved Items List (i.e. wishlist) Personalization and Recommendations 91% 81% 55% 51% PERCENTAGE OF CONSUMERS EXPECTING CONSISTENCY ACROSS ONLINE, MOBILE, AND INSTORE RETAIL CHANNELS Offered Promotions #4 OF RETAILERS BELIEVE THAT CREATING A CONSISTENT CUSTOMER EXPERIENCE ACROSS CHANNELS IS VERY IMPORTANT 84% OF RETAILERS HAVE NOT IMPLEMENTED A SINGLE BRAND EXPERIENCE ACROSS ALL CHANNELS 78% #6 With Omnichannel Without Omnichannel 89% 33% Aberdeen Group CUSTOMER RETENTION RATES #2 OMNICHANNEL RETAIL IS PROVEN TO INCREASE: SALES CUSTOMER SATISFACTION BRAND LOYALTY PROFITABILITY AND RETAILERS KNOW THEY NEED TO DELIVER BUT #5 OMNICHANNEL AND MOBILE: BOTH IN-STORE AND ON THE GO, THE ROLE OF DIGITAL DEVIC- ES IN THE SHOPPING PROCESS CANNOT BE UNDERSTATED. WHAT PART DOES MOBILE PLAY IN YOUR OMNICHANNEL STRATEGY? #7 40 % 22 % 25 % Deloitte Deloitte In Reality Higher Conversion Rates Larger Order Sizes Will Purchase on Device While In-Store #9 #8 68% INDUSTRY AVERAGE FOR ONLINE CART ABANDONMENT 61% PRIMARY REASON FOR ABANDONMENT IS EXTRA COSTS (SHIPPING FEES) #10 PERCENTAGE OF RETAILERS INVESTING IN OMNICHANNEL FULFILLMENT CAPABILITIES Currently Implemented Plan to Implement in Next 12 Months Buy Online, Ship-to-Store Buy Online, Pick Up In-Store Buy Online, Ship From Store Reserve Online, Pick Up In-Store Cross Channel Returns / Exchanges Buy In-Store, Ship To Customer Forrester 16% 14% 19% 14% 19% 20% 20% 18% 11% 16% 15% 14% 36% 32% 30% 30% 34% 34% #11 OVER THE NEXT 12 MONTHS, AN INCREASING NUMBER OF RETAILERS WILL HAVE INVESTED IN ALTERNATIVE FULFILLMENT OPTIONS FOR THEIR CONSUMERS. #12 40%+ INCREASE IN ONLINE SALES AFTER LAUNCHING SHIP-FROM-STORE. #13 15% - 20% OF SHOPPERS WHO PICK UP IN-STORE ALSO BUY SOMETHING ELSE WHILE IN THE STORE #14 68% RETAILERS MAKING PERSONALIZED EXPERIENCES A TOP PRIORITY FOR THE UPCOMING YEAR #15 #16 LACK THE RIGHT TECHNOLOGY TO PERSONALIZE BUT 53% ORGANIZATIONS ARE MISALIGNED ON THEIR PERSONALIZATION STRATEGY AND 1 IN 3 #17 OF IN-STORE CUSTOMERS SAY THEY WOULD LIKELY USE ENDLESS AISLE TO PURCHASE AN OUT-OF-STOCK STORE ITEM 57% BUT GETTING IT RIGHT HAS HIGH ROI: RETAILERS LEVERAGING NEXT-GENERATION PERSONALIZATION TECHNOLOGY HAVE SEEN: 200% TO 60% IMPROVEMENT IN CONVERSION RATES 6% TO 46% IMPROVEMENTS IN AOV #18 #19 Conversion Rates Improvements by Industry Average Order Value (AOV) Increases by Industry 227% 377% 399% 418% 616% 8% 46% 41% 38% 6% 94% of consumers report discontinuing relationships with merchants because of irrelevant promotions #20 #21 STORE ASSOCIATES HAD ACCESS TO STORE INVENTORY IN A RECENT MYSTERY SHOPPING STUDY OF 30 TOP RETAILERS AND OF STORE ASSOCIATES ATTEMPTED TO USE THAT ACCESS TO INVENTORY TO SAVE THE SALE BUT ONLY 7% 90% #22 #23 20% OF RETAILERS HAVE ALREADY DEPLOYED ENDLESS AISLE VIA A BUY IN-STORE, SHIP TO CUSTOMER FULFILLMENT MODEL AN ADDITIONAL OF RETAILERS PLAN TO OFFER ENDLESS AISLE WITHIN THE NEXT 12 MONTHS 14% #24 #25 CONCLUSION BUILDING A BUSINESS CASE FOR OMNICHANNEL COMMERCE OMNICHANNEL RETAIL IS A STRATEGY, NOT A PROJECT, SO RETAILERS CAN’T JUST IMPLEMENT ONE OF THE MANY OMNICHANNEL OPTIONS AND EXPECT SUCCESS. BY STRATEGICALLY INVESTING IN CAPABILITIES ACROSS THE MAJOR AREAS OF OMNICHANNEL, RETAILERS WILL EMPOWER THEMSELVES TO CAPITALIZE ON THE CONSUMER BLENDING THE DIGITAL AND IN-STORE CHANNELS, INSTEAD OF FALLING VICTIM TO CUSTOMER ATTRITION AND LOST SALES. AS NEW OPPORTUNITIES EMERGE, RETAILERS MUST BE PROACTIVE BY DRIVING SEAMLESS, UNIFIED COMMERCE EXPERIENCES ACROSS THEIR DIGITAL (ONLINE AND MOBILE) AND IN-STORE CHANNELS. THE BENEFITS OF OMNICHANNEL RETAIL ARE CLEAR: INCREASED SALES, CUSTOMER SATISFACTION, BRAND LOYALTY, AND PROFITABILITY. WHY THEN DO SO MANY ORGANIZATIONS STILL STRUGGLE TO BUILD A BUSINESS CASE TO INVEST IN OMNICHANNEL COMMERCE? LEVERAGE THE DATA AND PROOF POINTS BELOW TO MAKE A CASE FOR OMNICHANNEL RETAIL IN YOUR ORGANIZATION. 17% 15% Price Comparisons Finding Product Information Find / Redeem a Coupon Read Customer Reviews Forrester COMMON USE CASES FORE IN-STORE SMARTPHONE USE 15% 19% OMNICHANNEL RETAILING WILL SIMPLY BE THE WAY WE SHOP; IT WILL BE UBIQUI- TOUS AND NO LONGER A DIF- FERENTIATOR. IT WILL BE WHAT RETAILERS MUST DO TO BE PROFITABLE. -PWC: STRATEGY & GROUP THE ROLE OF DIGITAL DEVICES 64 % 75 % 84 % Walker Sands In Reality Mobile Payments Today PERCENTAGE OF CONSUMERS USING DIGITAL DEVICES IN-STORE OMNICHANNEL AND FULFILLMENT: CONSUMERS DON’T CARE WHERE THE PRODUCT COMES FROM (STORE, WAREHOUSE, THIRD-PARTY, ETC.) AS LONG AS IT ARRIVES QUICKLY, CHEAPLY AND IN THE FULFILLMENT METHOD THEY PREFER. OMNICHANNEL AND PERSONALIZATION: FORGET PRODUCT RECOMMENDERS, BEST-IN-CLASS RETAILERS ARE IMPLEMENTING REAL-TIME INDIVIDUALIZATION ENGINES FOR PERSONALIZED SHOPPING EXPERIENCES THAT INCREASE BOTH BRAND LOYALTY AND AOV. OMNICHANNEL AND THE STORE: TWO EASY WAYS TO LEVERAGE OMNICHANNEL RETAIL AND INVENTORY VISIBILITY IN THE STORE IS THROUGH SAVE THE SALE AND ENDLESS AISLE INITIATIVES. THE EFFECT OF CONSUMERS USING DIGITAL DEVICES IN-STORE SOURCES: RSR RESEARCH, ABERDEEN GROUP, DELOITTE, WALKER SANDS, IN REALITY, MOBILE PAYMENTS TODAY, MCKINSEY’S PERISCOPE, FORRESTER, EPISERVER, KIBO
