We make ICT strategies work

Andreas Penkert

Zurich, 14.04.2016

Omni Channel - Seamless engagement

of customers across all touchpoints.

Objectives and Challenges

Why do we leave money on the table?

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Objectives and Challenges

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The opportunity to improve conversion rate, loyalty and customer value is considerable.

CR IMPROVEMENT: At an average, 68% of all customers BURST OFF during an online purchase procedure.

LOYALTY and LEAD MANAGEMENT through channel experience: 70% of customers are attracted by digital channels– independent of age-class,.

CUSTOMER VALUE: Multiple channel shoppers

have a higher ARPU – they spend up to 50%

more money during the digital purchase than

single channel shoppers.

Source: Onlinehaendler.de (Mean value, summarized from 22 studies)

Source: eBay Report „The Omni-Channel Consumer“

Source: Detecon Self –Service Study

Objectives and Challenges

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A majority of customers overall industries still burst off during the digital purchase process before

check-out. Reason: experience does not meet expectations!

Customer Trends Why do 68% customers break off an online purchase?

Source: Consumer study Vouchercloud

90% participants of an Accenture study attest their preference for convenience in purchase processes primarily, even more than the price.

SOURCE: ACCENTURE-STUDY

23% of consumers purchase more items when picking up an online order from stores.

SOURCE: AT KEARNEY

71% of consumersexpect to view in-store inventory online.

SOURCE: FORRESTER

Deviating Terms & Conditions 11%

Issues with registration 29%

Inconsistent Pricing

On-/Offline41%

Delivery costs 44%

Speed or inconvenience

of the portal/process57%

Preferred payment option

not provided59%

Objectives and Challenges

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Consumer increasingly switch between offline and online-channels from research to purchase.

Channel orchestration and interplay are key drivers for loyalty and lead management.

ROPO*-Development Telco-Products (2011-13) Channel Utilization 2012-18

*Research On-/Offline – Purchase On-/Offline

45% 46%

34%19%

18%30%

4% 5%

2011

100

2013

100

Research Shop - Purchase Online

Research Online - Purchase Online

Research Shop - Purchase Shop

Research Online - Purchase Shop

+1

+1

Quelle: German Institute for Retail Reasearch (IFH)

47%

30%

70%

53%

20182012

Digital Channels

Traditionell Channels

Quelle: PWC Multichannel, Gartner Research

Objectives and Challenges

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Customers with multiple channels options spend more money on their purchases than single hannel

users. In this context, channel selection becomes a driver for ARPU increase.

Customer Value

100%

+48%

Bought online,

informed in shop

124%

Bought online,

with additional

online research

117%

Bought online,

meanwhile informed

in shop

101%

Bought in shop,

informed online

before purchase

148%

Bought

online

95%

Bought in shop

Multiple channel purchase

Single channel purchase

Comparison of spendings: Single vs. Multiple channel purchases

Source: eBay Report „The Omni-Channel Consumer“

Question: „How much did you spend on your recent purchase? Prior to purchase, did you do any of the following?”

The Omni Channel Journey

Objectives and Challenges

Creating a seamless “Channel hopping” is a key challenge. Customers want to change between

channels while expecting consistently good quality of service and ease of processing.

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Smart-phone

Call Center

DesktopTablet POS

StatusInformation

Order

TermComparison

ConsultingInformation

ProductSelection

Service

Multi Channel Journey

Omni Channel Journey

Customer expectations:

Today’s customer selects the channel depending on his current situation and preference.

He “hopps” between the channels while expecting consistently good quality of customer contact.

The customer also expects one-time-only data input while changing channels.

After Sales

PR

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Source: Detecon

Omni Channel

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Solution: Omni Channel is a valid approach to fulfill customer expectations and meet the consumer

behaviour trends of the digital age.

Omni Channel

Provide BEST CX

by ENGAGING CUSTOMERS

at all touchpoints along the

entire CUSTOMER JOURNEY

in a CONSISTENT and

SEAMLESS way!

Ensure CONSISTENT

PRICING, PRODUCTS and

CAMPAIGNS along all

CHANNELS!

Source: Detecon

Omni Channel Targets & Impact in General

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The major benefit of Omni Channel is the evolvement of an excellent and consistent customer

experience. Furthermore, the improvement of quantitative and qualitative KPIs.

OMNI-CHANNEL

Seamless shopping and service experience

CUSTOMERSUPPORT

ONLINE/MOBILE

IN-STORE

Lift Customer Experience on the next

level: consistent channel experience

and seamless journeys.

Increase value due to sales push via

lead generation and conversion, higher

ARPU per customer.

Save costs due to intelligent contact

steering and customer education.

Improve Service performance and

quality due to an increase in channel

and process automation.

Accumulate customer insights and information via Customer journey

tracking and analytics.

Source: Detecon Research

Omni Channel Journey

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Omni Channel scenarios actually integrate Online/Mobile, Shops and optionally customer support.

Channels are connected by different capabilities along the entire customer journey.

Cu

sto

me

r S

upp

ort

Sh

op

sO

nlin

e /

Mo

bile

Awareness & Interest Information & Selection Order & Purchase Delivery & Installation After-sales

Presence with LBS notices and/or on

campaign platforms with triggers

Video-chat with call center agents

Online coupon redemption

T-shop finder & real-time

of store inventories

Click& collect

Appointment for product pick-up and installation in store

incl. tablet-based consulting

Product reviews

Up- & cross-selling (longtail)

Product return

1

2

3

4

5

6

7

8

9

Source: Detecon

Omni Channel Best Practices from International Telcos

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Real life projects from Telcos show how the customer journey can be effectively improved across the

sales cycle through Omni Channel approaches.

Delivery &Installation

Information& Selection

Awareness &Interest

Order &Purchase

Example: Location-based services & information

O2 Telefonica implemented a LBS Coupon App, to allow customers to use discounts at selected local POS

For the rollout, O2 cooperated with more than 30 different partners and provided about 40 various offerings in 3.500 shops.

Example: Prosecution and change of the shoppig cart

In Sprint’s online shop/app, customers can collect products in the virtual shopping cart and use shop finder to choose the next located shop to complete the purchase

Arrived at the store, the customer receives further personal support

Example: Appointments for service support & advisory

Vodafone provides its customers M-queuing solution (Q-Less)

Q-Less allows customers to queue in a “virtual row” and get a signal, when they are on it

Appointments also can be postponed via snoozing

Example: Long-tail & tablet support in stores

In flagship “Destination Stores” Verizon exposes its products in various experience- and topic zones

The staff in the shops provides customers online-support via tablet, based on a system that supports individual recommendations

Source: Detecon Research

Implementation Barriers and Challenges

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Several European Telco operators face several challenges in implementing a holistic Omni Channel

approach, concerning different dimensions.

ROI

Customer Experience

Organization & People

IT

“Measurement of directfinancial impact from OC is challenging“

“ Omni-Channel implementation requireshigh investment in technology, processes and organizational change – no short termbenefit.”

“… collaboration with IT-Department is way to complex. The processes burn resources and time…”

“… selfishness of departmentsinstead of sharing culture…”

“… our employees do not think “OMNI” – or rather holistically across all different customer touch points…”

“… non-standardized products without modularity …”

“… different price policies across customer touch-points…”

“… each channel has it own view on the customer due to disparate data…”

“… siloed IT systems which are neither consolidated nor integrated…”

“… increasing importance of mobile? Our systems are not even a 100 per cent web-capable…”

Source: ETIS Org

Best Practices Cross-Industry

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There is still no existing 100%-OC approach in reality, but selected best use cases of other industries

show how to connect or to integrate prioritized channels.

Disney

Bank of America

Oasis

Starbucks

My Disney Experience tool to plan an entire trip through a Disney Park Destination.

A mobile app to locate the attractions in the park one want to see, as well as view the estimated wait time for each of them.

As one of the biggest brands in their industry, they’re setting the standard for a dynamic experience.

Everything from check depositing to appointment scheduling to be handled by the company’s mobile and desktop apps.

Fashion retailer that’s fusing their ecommerce site, mobile app, and brick-and-mortar stores into a simple shopping experience.

When something is out of stock, the staff can instantly place an online order to have the item shipped directly to the customer.

Unlike traditional customer loyalty programs, Starbucks has made it possible to check and reload free reward cards via phone, website, in-store, or on the app.

Changes to the card or personal profile get updated across all channels, in real-time.

Source: HubSpot

Key Take-Away: Media Markt/Saturn’s Gradual Approach.

Media Markt and Saturn realized quick wins by introducing business guidelines followed by distinct

Omni Channel capability development.

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HeadingApproach

MSH’s approach enables a gradual implementation of OC capabilities alongside quick wins

Constant communication of new capabilities to customers builds a comprehensive brand awareness

A moving target picture is required to ensure the best balance between capabilities and CX improvements

Quick introduction of Omni Channel strategy followed by business guidelines to foster quick wins

Building distinct Omni Channel capabilities based on a new business and IT-architecture

Change business model to enable truly customer centric approach with industry leading capabilities

Lessons learned

Idea in brief

OC TransformationTransformation of Business-

and IT-Architecture

OC Excellence

Truly Customer Centric

Business Model

OC Foundation“Quick-wins” with low

Capex

Define strategy &

business guidelines

e.g. consistent pricing

& content across

channels

Develop distinct OC

capabilities &

customer centric

operating model

e.g. Click & collect,

value added services

Adapt Omni Channel

business model

Implement leading

edge capabilities

e.g. cross channel

personalization,

agile campaigns

Time

Maturity

Source: Detecon Research

Contact

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Andreas PenkertDetecon International GmbH

Sternengasse 14-1650676 Cologne (Germany)Phone: +49 221 9161 1062Mobile: +49 171 4809337e-Mail: andreas.penkert@detecon.com

Your contact person at Detecon.

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