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1 Meeting consumer expectations and business goals through forward thinking and strategic planning Transition to Omnichannel
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Meeting consumer expectations and business goals through forward thinking and strategic planning
Transition to Omnichannel
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Contents
• Defining Omnichannel
• Best Practices for Omnichannel Migration• Impacts to Supplier Set
• Case Studies
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Defining Omnichannel
What is Omnichannel?
Distinct commerce and communication channels blending into a single, all-encompassing model
Consistent data available from all sources
Consumer is connected 24/7Role of store and online presence is changing
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Omnichannel spans retailer type
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Chipotle Mexican Grill enables customers to order from anywhere
Allow any consumer action from any channel
Consistent info across channels
One-click favorite orders
Macy’s uses instore touchscreen kiosks
for consumers to interact with
Consumer info
• Personalized messaging
Product info
• Inventory
• POS
• E-Receipts
QSR Department Store
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Many functions need to be blended for Omnichannel success• In store experience • Web based experience• Mobile• Communications and Advertising• Future channels
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In-Store• The store is not going away. It is changing.
– 76% of consumers prefer in-store commerce
• Make the store a place where people want to be
• Bring benefits of online to store– Product and consumer info– Inventory– Mobile payment
• Customer journey should be easy
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The WebEase of use
Shopping cart continuityEmail campaigns
Analytics to target
Consistent info across channelsGift card/tender acceptance
Add value to the in-store experienceOnline ordering In-store pickupApps
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Mobile
0%
5%
10%
15%
20%
25%
30%
35%
40%
“In 3 – 5 years, do you expect the wide-spread ability to make mobile payments
at retail stores?”
Very Unlikely Very Likely
CONSUMER EXPECTATIONS
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Communications and Advertising Facebook and Twitter connect ideas
Buy buttons
Conversation Keep engagement flowing Opportunity to listen
Offer value Engage staff Consistency
In-store signage to attract followers
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The number of channels will continue to expand
Beacons and devices will continue to extend the demand for Omnichannel services
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Best Practices for Omnichannel Migration
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Thoughts on a recipe for Omnichannel success
Delivering an Omnichannel experience delivers value while increasing complexity
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Only one channel exists for
commerce and communications
Commerce and brand experience
is consistent across channels
One Channel
@ POS or Online Only Integrated Platforms
Integrated Infrastructure Required
Omni Channel
Multiple channels exist but
commerce and communications
are still bifurcated
Channels
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Launching a new Channel is not the same as launching a new app
Consumer Engagement
Marketing Operations Technology Analytics / Data
In store
e-commerce
Mobile
An Omnichannel strategy must consider how all functions interact with the different channels
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Connected Decisions
• Decisions for one channel have cascading implications across channels
• Example: Tokenization– Tokens used for brick and mortar analytics and settlement should be
consistent with tokens used for the mobile and online functions such as card vault
– If tokens are different you will not be able to track the consumer across channel
Implication: Channel governance and strategy should be integrated across all channels
Extended Fraud Capabilities are Required
Education Velocity
Scoring Databases
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Implication: New resource capabilities, suppliers and reporting will be required to get a holistic view on fraud
Regulations and fraud threats differ by channel
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Delivery will Evolve
• Retail is historically delivered via waterfall due to site level update processes
• Mobile and online assets can be delivered via agile methodologies allowing for quick wins and enhanced “testing”
Implication: The organization should evolve its project and delivery teams to accommodate the demands of all channels while structuring to take advantage of the flexibility of all channels.
Mature
Cards Operations Security
Point of Purchase
Operations Card Marketing
Cards Marketing
Point of Purchase
Loyalty
Loyalty
summary
Vendor Management
Innovation
functions
Terminals
POS / Shopping Cart
Branded
Gift
Frequency
Offers
Comms
AnalyticsSecurity Innovation
PCI
Analytics
DesiredExtending
Vendor
Terminal
POS
Processor / AcquirerPeripherals
objectivesAvailability
Cost
Compliance
Switch
Auth and Settle
Reconciliation
Switch
The outcome …
A single channel operating model while not simple, requires a limited supplier stack to operate its day to day operations
Mature
Cards Operations Security
Point of Purchase
Operations Card Marketing
Cards Marketing
Point of Purchase
Loyalty
Loyalty
summary
Vendor Management
Innovation
functions
Terminals
POS / Shopping Cart
Auth / Settle BrandedGift
Card Linked
Frequency
Offers
Comms
Reconciliation
Switch
AnalyticsSecurity Innovation
PCI
Analytics
DesiredExtending
Tokenization
Vendor
TerminalPOS
Processor / Acquirer
Kiosks
objectivesAvailability
Cost
Compliance
Engagement
Encrypted
Relevant
CoalitionRouting
Switch
Beacons
New Devices
MobileTargetedEMV
Mobile PlatformGatewayEncryption
SIEM
Device Control
Real Time
Efficient
NO Friction
CRMDigital Agency
FraudSecurity
Machine Learning
Beacon
PII Expert
Security Apps
MORE LEGAL
Asset Management
Wallet Strategy
Real time
Integrated Card and Spend Analysis
SKU to Card
Category Improvement
Expected
E-commerce
A well executed Omnichannel implementation will require a more complex supplier stack making supplier decisions and strategy more important.
The outcome …
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Case Studies
Be More than a brandWalgreen’s offers rewards for everyday healthy activities
PartnershipsDigital health advisor through WebMD
Incorporate brand into consumer lifestyleLink fitness monitors Integrate with social media
Personal relationship with consumer
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Example of SuccessLearning from data
Simple online ordering
TransparencyMetrics in storeUnfiltered Twitter feed
React quick, fail fast
Continue to evaluate data
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Domino’s ResultsBetter Repeat
Higher Spending
Higher Customer Satisfaction
New Products Ordered at 2:1 Ratio
Data to Learn From
Largest Quarterly Same-Store Sales Jump ever Recorded by Major Fast Food Chain
35% of Sales are Mobile
Coming up with the ideas is one side of the challenge. But then you actually have to be able to
deliver the technology
- Kelly Garcia, Domino’s VP of Development
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For additional questions, please contact Daniel Kahan ([email protected]) or Boyd Farrish ([email protected])
Thanks for viewing!
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