Trent: The Omnichannel Retailer of 2020

Neelesh Tanwar

Kshitij Sharma

Nitin Cyriac

Vivek Maheshwari

TATA BUSINESS LEADERSHIP AWARDS

2015

STRAIGHT FLUSH!

PHASES OF LAUNCH

OMNICHANNEL STRATEGY

INTRODUCTION PHASE 1 PHASE 2

Launching West Side website to create product and inventory visibility in

stores

Train sales associates to understand customer

preferences , purchase history

Enable the retail store to act as a local fulfillment

center with pick, pack and ship capabilities

To attract customers to directly buy from Westside

website

Aggressive marketing to further increase brand

awareness

Following channels can be used to boost sales:

E-Commerce platforms: For inexpensive SKU’s and other less customizable products

Brick and Mortar shops: For providing experience and convenience for high customizable and expensive apparels like Sherwani, suits etc.

Objective is to use the above platforms to enable exemplary omni-channel customer experience

Enabling fulfillment from stores can help in cutting shipping costs while driving up revenue

Tie up with major ecommerce players like

Amazon to kick-start TRENT online presence

Players selected on the basis of size of marketplace, sales commission, Shipping

time, etc.

Create Brand awareness through aggressive digital

marketing

Low-ticket SKUs initially to ensure quicker turnover &

control inventory losses

Waiting for significant revenue figures before

making the transition to Phase 2

CONTINGENCY MEASURES

Doing market research to understand where Westside is not meeting their expectations

If brand awareness is a problem, then multiple e-commerce sites should be used along with aggressive marketing campaigns

If price is a problem, then TRENT should use their own website and create awareness among the customers. They can give incentives for visiting websites to already existing customers that visit brick and mortar shops

Other forms of marketing should be used to increase the popularity of Westside among potential customers. These can include billboards, social media and organizing events at crowded places and hubs

A steady increase in revenue streams will make it a success even if initially TRENT is running into losses.

OMNICHANNEL STRATEGY

CUSTOMER ONLINE VALUE PROPOSITION

CUSTOMER EXPERIENCE MATTERS CUSTOMER CONVENIENCE

WIDE ASSORTMENT No. of products in physical store is

limited but not in the online store Pre-ordering of newly launched

catalogue

ONE PRODUCT, ONE PRICE Prices on different portals will be

kept same to reduce the customer’s efforts to search through the web.

SMART SUGGESTIONS Reviews and Ratings Suggest adjacent products to

customers based on their search history

Suggest complementary products based on purchase patterns of other customer

Price alerts Bestselling Products

FREE DELIVERY • Free of cost Home Delivery• Online shipment tracking• Return pick-up without any

charges• Subscription-based express

shipping

OFFLINE-STORE SYNERGY

• Online purchase, in-store pickup

• Offline store out of stock products can be shipped to customer’s home

• View inventory information for in-store products

FROM TRANSACTIONS TO RELATIONSHIPS

ONLINE ADVANTAGE• Online reserving in-store

products• Unified customer account

and order history

DIGITAL MARKETING POSITIONINGUSING WEB MARKETING AND ANALYTICS TO MAXIMIZE SATISFACTION AND ROI

ADVERTISEMENT STRATEGY WEB ANALYTICSCUSTOMER ENGAGEMENT

Targeting• Web: Placing text ads (SEM), web-

banner ads and video ads on Youtube. E-mail marketing

• Mobile: Mobile ads, SMS promotions to existing customers

• Traditional media: TV ads, In-store promotions

Retargeting• Cookie based banner ads for

users dropped-off from the website.

REFERRAL & AFFILIATE• Bloggers, 3rd party web-sites can

become affiliate for bringing traffic to the website

• Referral bonuses

WEB REPORTING

Use Google Analytics, Adobe Site Catalyst etc. to identify metrics such as bounce rate, Click Through Rate, Conversion Rates etc.

CUSTOMER ACQUISITION

Using Cost per click and Cost per Acquisition

USER BEHAVIOR METRICS

Metrics for understanding user behaviour : Bounce Rate, Depth Rate, Recent Visit Frequency etc. 

Using Facebook & Twitter • Content creation & Sharing• Gamification (Apps)• Polling (Feedback Surveys)• Query Redressal

CONSUMER INSIGHTSIf a product is available online from multiple retailers at the exact same price, would any of the following shipping offers sway your purchase decision?"

Expedited( 2 to 3) day free ship-

ping

Same day shipping for a premium

0% 50% 100%

75%

18%

14%

9%Customer expectations from salesperson

Be an expert on in-store products

Be an expert on both in-store & online products

Actively use the products offered

Be knowledgeable about my pref. and past purchases

None of the above

0% 50% 100%

68%

45%

23%

14%

8%

e commerce platform

Point of Service

Retail order mgmnt system

Data and analytics

Customer relationship mngmnt

In house customer solutions

Store workforce mngmnt

ERP

Outsourced services

Mobile point of service

0% 50% 100%

Use and operate todayCurrently under im-plementationPlan to invest within next 6 monthsPlan to invest within next 12 monthsPlan to invest within next 18 monthsNot planning to invest

Technology platforms in use or to be used in the future

Limitation of co business model

Difficulty of back office technology integration

Limitation of retail store layout

Lack of digital commerce technology

Limitation of staff skills

Lacking in-store technologies

Ltd by distr partners, franchises

Difficulty of employee compensation

0% 20% 40% 60% 80% 100%

12345

TOP BARRIERS FOR OMNICHANNEL ORGANIZATION

Need to improve omni-channel capabilities

Our C-suite understands the importance of omni-channel

Need to rethink how we services customers

Omni-channel strategy a key factor in investment in technology in the future

Success of initiatives based on customer satisfaction and engagement

Need to change dramatically to become an omni-channel co.

We are organized around the customer journey rather than channels

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

42%

39%

35%

34%

32%

31%

31%

26%

20%

17%

16%

16%

13%

STATEMENTs YOU STRONGLY AGREE WITH

THE PROPOSED STRATEGY WOULD HAVE A POSITIVE IMPACT ON THE BRAND

BRAND IMPACT

Positive Impact

Greater brand visibility

Single view for customers across

channels

Emotional Connect

BRAND IMPACT BRAND SUSTAINIBILITY

Compelling Loyalty points

Use of analytics online to get a deeper insight into customer behaviour

Embracing newer techniques like mPOS (mobile Point of Service) apart

from COD

Product availability information in retail stores should be there in the

online stores (company owned website)“EASE.ASSURANCE.HAPPINE

SS”

Build the brand using the tagline

HOW? STUDY

According to 2011 Study by Verde Group at University of Pennsylvania:• Multichannel shoppers spend more

than single channel • More channel opportunities-

customer shops more on different channels->higher

Subscription based free shipping programs to bolster e commerce channel

Because of online presence, customer loyalty improves significantly

Further boosted by loyalty points, which can be redeemed by shopping online

Can build the brand further by offering special discounts to customers who share your website's name or products on their social networking profiles

CUSTOMER LOYALTY

Customer loyalty is ENHANCED by adopting an Omni-channel strategy

CONCLUSION

Online shopping platform delivers value to customer through education, new ideas, convenience and savings for the customer

THE WAY FORWARDLEVERAGING MOBILE CAPABILITIES IN-STORE TECHNOLOGY

INSTORE ANALYTICS BIG DATA ANALYTICS

• Updates of offers on the customers’ mobile the moment he enters the shop using location based awareness.

• Payment using NFC, iPhone Airdrop etc.

• Wi-Fi based tracking of customers to know how much time they are spending in front of each section to get an idea of their preferences

• Shoppable windows

• Omni channel product line rules• Omni channel pricing

• Virtual avatars to get a feel of how the dress would feel on their body

• Interactive digital stands for collecting user feedback as well as advertising

• Mobile app that acts as a comprehensive dictionary of the stores’s products. The app would guide the customer to right aisle where products of his interest are stacked or alternatively give information about the product he wants to know more.

APPENDIX

THANK YOU