How companies can answer to a new uncontrolled omnichannel customer path? How brick and mortar and online business can merge to offer a tailored solution to omnichannel customer path?
1. 2
WHY & HOW BRANDS
MUST GO OMNICHANNEL
Muriel Hug , Floriana Nicastro,
Robin Cartier , Adrien Pichard
February 7, 2014
2. 0
TABLE OF CONTENT
INTRODUCTION..................................................................................................................................1
I. NEW USES AND THE EMERGENCE OF CONNECTED CUSTOMERS..................................................3
1. MOBILITY ................................................................................................................................3
2. CONNECTED CUSTOMER = WISER CUSTOMER.............................................................................. 4
3. EMERGENCE OF A NEW SOCIAL PURCHASING FUNNEL ....................................................................5
4. M-COMMERCE......................................................................................................................... 6
5. SHOWROOMING .......................................................................................................................7
6. ROPO: RESEARCH ONLINE PURCHASE OFFLINE.......................................................................... 8
II. BRICK AND MORTAR FACING TURMOIL ....................................................................................... 9
1. E COMMERCE QUESTIONING THE MODEL....................................................................................11
2. MOBILITY CHALLENGING..........................................................................................................11
3. INTEGRATE TECHNOLOGIES AND INFORMATION SYSTEMS ............................................................12
III. OMNI CHANNEL DEPLOYMENT OPPORTUNITIES .......................................................................14
1. CONNECTED CUSTOMER..........................................................................................................14
2. A CROSS CHANNEL CUSTOMER .................................................................................................15
3. NON ADAPTED REACTION FROM THE COMPANY ..........................................................................16
4. OMNICHANNEL STAKES ...........................................................................................................17
5. OMNICHANNEL DEPLOYMENT..................................................................................................18
6. OMNICHANNEL SOLUTIONS .....................................................................................................19
IV. OMNI CHANNEL SOLUTION BENCHMARK ..................................................................................22
1. BEST BUY ............................................................................................................................. 22
2. JOHN LEWIS...........................................................................................................................23
3. BURBERRY .............................................................................................................................25
4. NORDSTROM.........................................................................................................................27
5. SEPHORA.............................................................................................................................. 28
6. WALMART ............................................................................................................................ 29
7. MACY S.................................................................................................................................30
3. 1
the development of
the computers automation and process fastness which were made possible thanks to the
3rd industrial revolution: the IT Revolution.
doing business, consuming information and interacting; it definitely modified their
relationship to shopping.
The E-commerce was a revolution first for the brands, by going straightway to
their customer; secondly, for the consumers by having the widest choice of product ever.
As the equipment rate increases, customers can compare in-store with e-store products
and prices on any device. Even when they are shopping in store, they can compare on-
line the product in front of them with an infinite range of products priced and designed
differently. So Loyalty is more and more fluctuating. The fidelity is no more guaranteed,
because of the multiplicity of the offers, combined with the easiness of consumers to
s changes
shops are facing free and opportunistic clients, who compare offers, lookout the latest
specials and promotions at anytime, anywhere and on any device. In fac
mobility mix with the gloomy economic situation generates a great volatility of the
customers that makes them harder to catch.
To thwart those trends, retails stores, shops and wholesaler get the opportunity
to implement their strategies on both side of the line by refocusing their strategies on
their customers. In fact, at the early, many of those physical stores used to take the
opportunity to create their own merchant websites, to sell products on an online
platform: multichannel strategy. Without creating a synergy between both sale
mediums, customer experience was neglected in favor of a business centric vision.
Moreover, the economical context and the long technological appropriation process by
the greatest number make managers threatening digital changes and disturb their
long/mid-term visions. Even before engaging pilot phases the manager would like to
measure the potential ROI of the solutions. But early movers are big names of retailing,
and they have reshaped their strategies. They improved their clients experiences and
their knowledge through different strategies, Readapting their sales techniques thanks
to complementarity of physical and digital channels, they improved the knowledge of
their customers; Reinventing the model from mass market to mass customization; the
multichannel is a past model.
4. 2
Since the arrival of Internet in-house, the trend of shopping online has massively
increased.
This new medium of doing business is the main reason of classic commerce
destabilization; in fact 48% of the web users actually buy clothes on e-commerce
websites. in France that business represented about 45 billons euros in 20121, user
determine the wide range of product as one of the most important fact that make use
this channel.
1 EUROGROUP. En route vers le commerce 3.0. | Commerce traditionnel : des lignes qui bougent de façon
irréversible | La mobilité, deuxième facteur de déstabilisation P.12
69% of customers are
researching online and then
purchasing offline
32% of customers are
researching in store and
then buying online
+19% about the
European Digital Market
growth in 2011
+82% for the average
basket of the connected
customers
y
42% of m-users declared
having used a mobile
terminal at one stage of
their purchasing decision
40% of American
consumers do feel lonely and
consider that human
contact to a salesperson as
30% of the market share
will be detained by the e-
commerce sector by 2015
By 2018, it is estimated
that the total number of
stores will fall by 22% in the
UK
5. 3
New Uses and the emergence of connected customers
1. Mobility
new medium based on interactivity it completely revolutionized the way consumers and
brands interact together.
This trend has led the evolution of networks to provide always on high speed
connections.
Key figures:
- Now 73% of the total French population (aged 12 or older) is equipped with 3G enabled
devices.2 (CREDOC, 2013)
- Next generation 4G networks, allowing ultra-fast access to the Internet are deployed all
over the national territory, the objective is to reach 98% coverage of the whole territory
within 10 years3. (Arcep, 2014) When launched, this technology will facilitate data
intensive uses and contribute raising technical barriers.
It is now difficult to imagine that in 2000, e-commerce was still at its very beginning in
France.
Almost 15 years later, who would argue that e-commerce was just a fad?
There are now more than 48 M Internet users in France, according to COMSCORE
(2013)4.
Information is now instantly accessible according to the ATAWAD principle: Anytime /
Anywhere / Any device. Smartphones and tablets are now deeply integrated into our
daily routines, the following graph from ComScore shows of how french users combine
their different devices all along the day.
2
smartphone, clé 3g/3g+ ou carte data). Source CREDOC (2013).
3 ARCEP. (2014). 4G - le très haut débit mobile. Available:
http://www.arcep.fr/index.php?id=8649#c64196
Last accessed 04 Feb 2014.
4 Comscore (2013) France Digital Future in focus. Available: http://fr.slideshare.net/SolocalGroup/com-
score-2013francedigitalfutureinfocus
7. 5
FEVAD (2012) | 2020: La fin du e- rce connecté ?
Figure 1 Google (2013) Mobile in-store research: How in-store
shoppers are using mobile devices5
Thanks to Internet, consumers have found a
forum to exchange ideas and voice their
opinions. Customer ratings have become
common practice and are consulted by 90% of
shoppers (FEVAD, 2010).
corporate website) are considered as less
valuable than individual feedback on a specific
product, which in turn is appreciated for its
objectivity and honesty.
In the same study, 91% of people considered
product evaluation as the number one deciding
factor for their final purchase decision.
3. Emergence of a new social purchasing funnel
To trigger a purchase, all marketers know that they have to reach the consumer at some
specific moments, where the customer might be most likely to be influenced.
These moments have long been mapped to a linear funnel image: notoriety/ interest /
desire / conversion.
Today this classic vision fails at addressing the connected customer, and understanding
rise of connected customers has seen the multiplication of contact points and devices
throughout the client decision journey.
As customers get easy access to more information, the decision-making process includes
more variables: trust, perceived competitive advantage of your solution over your
5 Google. (2013). Mobile in-store research: How in-store shoppers are using mobile devices.
Available: http://ssl.gstatic.com/think/docs/mobile-in-store_research-studies.pdf. Last accessed 05 Feb
2014.
9. 7
Figure 3 Number of internet mobil user, worldwild (projection 2015)7
Mobile pages viewed have already doubled between 2011 and 2012 and mobile
optimized contents are spreading very fast over the Internet. It now represents over
Mobile is now a key entry point for e-retailers, as it is expected to represent 24% of the
overall
e-commerce revenues by 2016. As an example, m-Commerce in 2012 has registered a
2012)
5. Showrooming
As a combination of the increasing role of smartphones (vs feature phones) within the
mobile market, and the deployment of high speed 4G networks, customers get instant
access to all the information they need.
Showrooming is an emerging trend also referred to as the activity of using a smartphone
in-store to try and feel a product, assess your interest, and then look for online offers
directly from the sales floor in order to cease the best deals (opportunistic approach).
EUROGROUP (2013) in its study on mobile shoppers8 noted that 29% of people doing
showrooming will effectively end up purchasing online.
So not only users can get information about a specific product, they can also compare
your offers to your closest competitor.
7 Forester, Research 2010
8 EUROGROUP. En route vers le commerce 3.0. | Commerce traditionnel : des lignes qui bougent de façon
irréversible | La mobilité, deuxième facteur de déstabilisation P.15
10. 8
Figure 4 Main uses of smartphones in-store9
Is show-rooming leading the fall of traditional retailers?
6. ROPO: Research Online Purchase Offline
In the meantime, a recent approach is also spreading with the growing impact of e-
Commerce over traditional economy. People tend to step back to traditional retail stores
when it comes to having a rich client experience, and highly personalized insights.
Clients will prepare their purchase and read product specifications online to assess their
d
qualitative feedback.
Here is a scheme that synthesizes both approaches
Figure 5 ROPO vs Showrooming. 10
9 Google (2013) Mobile in-store research: how in-store shoppers are using mobile devices
11. 9
Brick and mortar facing turmoil
The traditional retail industry is being struck by a large and continuous movement.
Retail sales are constantly rising while store visitors decline.
By 2018, it is estimated that the total number of stores will fall by 22% in the United
Kindgom (Center for Retail Research, April 2013).11
.
Figure 6 : Number of retail stores (1950-2012)12
The trend and its impact are expected to vary depending on the industry as forecasted
by Booz & Co (P. Péladeau, O. de Cointet. 2013).13 For France, for instance, the trend
would be more accentuated in electronics and appliances retailers as the need for
contact with the physical product may be less justified (an average 18% decrease vs 1%
in fashion).
10 EUROGROUP "En route vers le Commerce 3-0" (2013)
11 A guide to retailing in 2018 (April 2013).The centre for retail research.
12 Ibid
13 Pierre Péladeau et Olivier de Cointet (2013). Perspective 2020 : quelle place pour la distribution
traditionnelle dans un monde digital. Booz&Co.
12. 10
Figure 7 :Market share of digital sells and the impact on the shops surfaces14
If the number of point of sales is not necessarily at stake, the sales area is highly
concerned and therefore potentially involving turnover. Less performing stores implies
a less profitable activity that will then implicitly lead to a reduction of sales area leaving
more space for m commerce and e commerce activities.
manager of Oracle Retail and w
Jan 2014).15
Traditional retail is a solid and reliable industry that is today facing the reality of a new
vision. As the mono channel funnel is being slowly but surely erased from our radars,
retailers have to seize the opportunity to become sophisticated in managing their
customer relationship and the entire selling pa"th that leads the frugal consumers to the
stores.
However, depending on the industry, everyone built its own perception and its own
16.
Therefore, it radically modifies the vision and approach that will take part into these high
added value modifications. Amongst a panel of 114 professionals and 46 experts
interviewed by the CREDOC17 in 2010, 36% considered that the change would be just as
18
14 Booz&Co (2013). Perspectives 2020 : quelle place pour la distribution traditionnelle dans un monde digital
15 John Foley, (January 2014). 10 Technology trends that will revolutionize retail,
http://www.forbes.com/
16 Philippe Moati avec Pauline Jauneau et Valérie Lourdel (2010). Quel commerce pour demain ? La vision
prospective des acteurs du secteur, pV. Cahier de Recherche N°271, CRECOC.
17
18 Enquête « rs » (2010) . CREDOC. Base 114 professionnels et 46
experts.
13. 11
1. E commerce questioning the model
E commerce is certainly identified as being the first major destabilizing factor. It is
indeed forecasted that up to 30% of the markets share will be detained by the e
commerce sector by 2015.19
Sept. 2013)20, e commerce has had one of the most impressive impact on the traditional
retail industry over the last few years. Its continuous growth is reaching all sectors and
the trend is on permanent progression.
Figure 8 : 21
Although one of the major trends is to consider e commerce as an unfair competitor,
traditional retailers have eventually decided to embrace the trend and integrate it as a
key factor for a successful global strategy.
2. Mobility challenging
The second major factor for brick and mortar turmoil is the mobility and its fast growing
adoption amongst wiser educated customers and their communities.7
In a context of crisis, the customer wants to arbitrate and permanently strengthen its
choices.
Its winding purchasing path is much longer and complex than it used to be. Point of sales
concerns.
19 Philippe Moati avec Pauline Jauneau et Valérie Lourdel (2010). Quel commerce pour demain ? La vision
prospective des acteurs du secteur, pV. Cahier de Recherche N°271, CRECOC.
20 Eurogroup Consulting (Sept 2013). En route vers le commerce 3.0.
21 Ibid
15. 13
have put huge strains on the ability of a business to effectively
respond to the ever changing retail landscape. The result is a duplication of costs from
system acquisition to maintenance and support 26
This is an ultimate barrier for traditional retailers to adapt and adopt a clear strategy on
how to face the change.
40% of American consumers do feel lonely and consider that human contact to a
salesperson as vital when shopping (Treussard, 2014).27 So let them be at the heart of
the conversion.
As an answer to the previously stated context, more and more retailers have decided to
adopt an ongoing Omni channel strategy.
26 Tom Litchford, VP, Retail Technologies ( 22/01/2014). The Evolution of the cash register .
27 Louis Treussard, CEO de l'Atelier BNP Paribas. (02/02/2014) http://www.petitweb.fr/actualites/ne-
dites-pas-a-ma-mere-que-je-tiens-une-boutique-elle-me-croit-pianiste-dans-un-bordel/.
16. 14
Omni channel Deployment opportunities
1. Connected Customer
2005, Procter & Gamble created the concept of moment of truth.
In the customer journey, a customer is confronted to different moments of truth:
Stimulus will push create an emotion and create a first contact with the brand. Then the
customer go to the store, buy a product, first moment of truth, and create another
contact with brand. Finally by using the product, second moment of truth, customer and
brands create a positive or deceptive relationship.
Figure 11 : 28
During years, advertisers aimed to create campaigns that would create stimulus to the
tools used by brands to guide the customer into its decision making process. Brands
used to have a total control over the traditional path.
Now, because of the Internet revolution and the empowerment of social media
platforms, brands are confronted to a new source of information for customers: the e-
reputation. In fact, Google adapted the Procter & Gamble model to add another moment
of truth. The zero moment of truth is the moment when the potential client will look for
some information online to make a decision.
Figure 1229
So between stimulus and first moment of truth, there is now another contact that is not
generated by brands but by users and networks.
28
CAVAZZA, F. (2013). Les marques ne maitrisent plus le premier contact avec les
clients. Available: http://www.mediassociaux.fr/2013/12/05/les-marques-ne-maitrisent-
plus-le-premier-contact-avec-les-clients/. Last accessed 05th Feb 2014.
29
Ibid
17. 15
2. A cross channel customer
Besides this new moment of truth, customer purchase path has been influenced and
modified by Internet .
The first destabilization of traditional commerce has been the development of e-commerce
thanks to Internet deployment.
Compared to traditional commerce, e-commerce allows customers to save time, is available at
any time, offers a larger catalogue of products with some exclusive items - and gathers more
promotional offers.
Nevertheless, e-Commerce has also showed some limits, such as the impossibility to try, to
30
Indeed customers need to balance online and in store to enjoy the corresponding
different paths between online and in-store that enter into account in the buying process
of the customer.
Customers are active on different channels at the same time. The main trend will be the ROPO,
when a customer is looking for information online prior to purchasing in store. According to
Converteo (Converteo, 2012)31, 69% of customers are researching online and then purchasing
offline.
Instead, 32% of customers are researching in store and then buying online. The
phenomenon is also known as showrooming.
Here are the different paths (online and in store) a customer can use along his buying
path:
Figure 13 : Cross-canal funnels32
30
ZELINE, G. & GUYOT, J.M. (2013). Réflexion sur le commerce 3.0. Paris: EUROGROUP
CONSULTING FRANCE.
31
- -canal.
Paris : Converteo.
32 SIA PARTNERS (2013). Repenser le parcours client au sein des centres commerciaux, à
18. 16
According to a digital whitepaper (SYZYGY, 2012)33, the trend is even accelerating:
market research company Forrester predicts that connected technology will influence
44% of retail sales by 2016.
These connected customers are a real added value if brands know how to adress them.
Connected customers who supplement in-store shopping with online research spend as
much as 82% more per transaction than non-ROPO consumers, making them an
attractive demographic to target.
On the other hand, connected customers can be a threat for in-store retail because they
are increasingly willing to shop online. In 2011, with a flatlining retail sector, European
3. Non adapted reaction from the company
Majority of brands are still using different independent channels for sales and
communication without any homogenization.
As a logical evolution, brands should evolve to a cross channel model that aims to create
bridges between the different channel, creating complementary instead of conflict.
Figure 14 : 34
Available : http://transport.sia-partners.com/files/2013/10/Le-caract%C3%A8re-cross-
canal-des-consommateurs.jpg Last accessed 05 Feb 2014
33 SCHRÖDER, F. & BACH, J. (2012) Whitepaper Digital POS. Frankfurt : SYZYGY.
34 - -canal.
Paris : Converteo.
19. 17
Figure 15 : 35
4. Omnichannel stakes
It is important that brands move to a cross channel , even omnichannel structure, to
gather and homogenize all the data collected though independant channel.
Mastering data will provide brands with a powerful cross channel database and will help
it
- Reinforcing and controlling traffic between online and in store
By gathering cross-channel data, brands facilitate cooperation between channels
and collect useful and powerful information. It allows crossing data on: interest,
and gathered data attributed to each customer, gives a global understanding of
the customer.
35 Ibid
20. 18
- Customer intelligence helps personalize customer experience
Once data has been collected and gathered, each customer can be identified by
information to afford a personalized experience and push personalized offers. For
instance, brands can offer a specific push for people planning to buy a specific
product when this one is on the store. This customer centric approach helps
brands to focus and target the right customer and create a strong relationship
with him. Customer knowledge is a key factor of communication and marketing
lines and cross channel data will help them targeting the right customer, at the
right place with the right message.
- Provide customer insights to support sales persons:
Thanks to customer knowledge development, the sale force is able to have a
better understanding of what their clients are looking for and what would be the
right product, service to present them following their interests, backgrounds,
budget..
Besides, crossing data between different channels also mean gathering outside
and inside company data. The sale persons could have a real time access to the
stock of the store, to the products/service to come, the current offer but also
complementary information about product/service : a better knowledge of the
store and its products.
By combining customers and company knowledge, the sale person can be really
proactive in his work and real added value for both of the actors.
5. Omnichannel Deployment
As omnichannel stakes are huge and determining in future retailer success, a lot of
solutions have been developed to answer connected customers and omnichannel trend.
Data Optimization Management
Because it represents omnichannel basis, the technologies have been developed to
collect and optimize data management. For instance, e-CRM merging online and offline
databases have been developed to make sense of current data. Galerie Lafayette, as one
of the pioneers retailer on this initiative, already began merging both databases through
its loyalty card.
21. 19
Figure 16 :
36
master the Information System along the commercial path.
Data Supports
Different tool have been developed to support commercial steps, before and during the
sale. Among screens and intelligent tablets and smartphone and digital
interactive machines seem to be at the heart of development for data support.
Figure 17 :
37
Even if digital interactive machines are nowadays the most mature support, Keirus (2012)
Within 3 years, 100% of customers will own a smartphone and smartphones and tablets will
become universal tools covering all the sales steps.
6. Omnichannel Solutions
Omnichannel solution is at its early stage but a lot of initiatives have been taken by
brands for mastering this new trend.
36 - cross-canal.
Paris : Converteo.
37 CLAUDON, R. & ALIX, T. (2012). Etude digital in store. Paris : Keyrus Management.
22. 20
A benchmark of major relevant omnichannel solutions will be provided in the following
2013)38:
Traffic Generator
- Geofencing
Geofencing
physical stores.
- Geolocation / Store Locator
Find the closest store to the customer location, even get directions to the the store.
- E-couponing
Brands are proposing promotional offers on social media, Internet user following the
brand can download the offer and redeem it in store.
- Other initiatives in traffic generation
Availability promotional offers, for an easy consultation on the
-catalogue is sent according to the different segmentation profiles identified in
the CRM databases)
Purchase lists
Customer is able to prepare his purchase list from home or anywhere from his mobile for
optimize in store path and directly go targeted articles.
Shopping experience
- Product availability
Real-time stock information is available online and allows sales force and customers to
know product stock in store.
- Check & Reserve
The solution allows to know product availability and reserve it, without buying it, to
come to store and try them on.
- Connected Sales Persons
A connected sales person is a seller equipped with digital tools allowing him to give more
relevant and efficient advice to customers: technical information, stock, customer
- Product information : QR code, bar code, NFC, photo
allow customers to get information on the products
they are looking at in store
- M-payment
38 ZELINE, G. & GUYOT, J.M. (2013). Réflexion sur le commerce 3.0. Paris: EUROGROUP
CONSULTING FRANCE.
24. 22
Omni channel Solution Benchmark
1. Best Buy
#ULTIMATE SHOWROOM 39
Context:
The Richfield, Minn., electronics retailer founded 2004 has been hurt by growing
competitors in the last few years. Losses are estimated up to 1.2 billion $ during 2012
(50 billion $ turnover/year on 1400 POS = 18% of the in store market share.
Aim:
React to the showrooming effect & Increase online revenue and conversion rate.
Campaign:
A five-points manifesto. Renew Blue (Omni channel retailing at stake) launched nov
2012. Together with a price matching strategy, the aim is to increase inventory to
guarantee availability and use Geo fencing capability by pushing deals to the
customer when shopping in store.
Performance:
Online traffic (+1.3% in 2012) + pick up button on the web site (40% of customers
are using this option)
ROI:
Number of clicks on the web site to purchase a product has been cut down to 3
Techno & Support:
Geofencing
Agency:
Placecast through SocialVibef
39
http://www.ropo.fr/2014/01/e-web-to-store-et-le-store-to-web-campagne-publicitaire-BestBuy.html
SOURCE: Marketing Evolution Brand Tracker, n=2,804 FY13 Q2 Data
25. 23
2. John Lewis
# SOCIAL CRM
Using a mobile app, John Lewis is able to identify its customers and suggest articles they
might like according to their purchase history.
Context:40
The last few years have arguably been the most turbulent in the history of the British
High Street. Retailers such as Jessops, Comet and Blockbuster have gone to the wall.
High Street institutions have been forced to contend with unprecedented change in the
retail landscape. The impact of the recession has been huge, but the impact of the
the way consumers shop - and often to the detriment of the traditional bricks and
mortar business.
Campaign description:
After successfully implementing a pick and collect concept store in 2009, John Lewis
decided to invest massively in cross-channel solutions.
Andy Street, John Lewis managing director said in 2012:
customers buy both online and in shops so the approach is to make it
absolutely seamless for them to move from one to the other.
So they can research in one place and shop in the other, they can buy in one place and
pick up in the other the art of sales is consistent across channels, so the whole
approach is to make it channel agnostic.
Now that the concept is up and running in around 5000 locations, John Lewis wants to
take the experience even a step further, and is now proposing to mobile shoppers My
John Lewis, a new service that is able to suggest you products based on your shopping
history and your likes.
Performance :
40
Bardwell, C. (2012). John Lewis: Multichannel shoppers spend 3.5 times more.
Available: https://idc-insights-community.com/retail/retailomnichannelstrategies/john-
lewis-multichannel-shoppers-spend-35-times-mo. Last accessed 18th Dec 2013.
Brandweiner, N. (2013). John Lewis: How a 150 year-old retailer became an omnichannel
champion.
Available: http://www.mycustomer.com/feature/experience/john-lewis-how-160-year-
old-retailer-became-omnichannel-champion/164763. Last accessed 18th Dec 2013.
The Marketing Society UK. (2013). 2012 winner: John Lewis, E-Commerce - Case Study.
Available: https://www.marketingsociety.co.uk/the-library/2012-winner-john-lewis-e-
commerce-case-study. Last accessed 18th Dec 2013.
26. 24
John Lewis has long been synonymous with excellent customer service and satisfaction.
Since it first opened its doors in 1864, satisfaction has been the key tenet of the retailer's
strategy. The last two years John Lewis won UK Customer Satisfaction Awards and
Britain's Favourite Retailer Awards the last two years.
For its efforts in omni-channel, John Lewis was awarded the Multichannel Retailer of the
Year award at the Retail Week Awards, as voted by a panel of judges from the industry.
ROI :
Mobile is now the fastest growing channel for John Lewis, last year during Christmas
period, mobile sales went up by 200%. (Source: Brandweiner)
27% of John Lewis customers research what they want in store and then purchase it
online
Over 60% of customers research online before going to the store
More than 20% of John Lewis customers buy online and collect in store
40% use their phones to interact with the brand when in the store (Source: Bardwell)
Technology:
Social CRM
Support:
Smartphone / Loyalty card / e-Commerce website
Agency :
N/A
27. 25
3. Burberry
#SOCIAL MEDIA MONITORING #CUSTOMER INTELLIGENCE
Context:
Burberry has progressively set a broad move to digital, whilst keeping a coherent
approach to its customers throughout channels.
Campaign description:
Merging all contact points with its customers to provide a rich client experience,
Burberry is now at the forefront of customer intelligence.
The company has set high standards for its customer relationship management
program:
- Social media monitoring.
should be able to hear it, so that whenever you tweet something positive or negative, or
teams around the world can pick up on that and can start having a dialogue with you in
real-time.
Angela Ahrendts, former Burberry CEO
- Customer 360
A data-driven shopping experience which invites (opt-in feature) customers to digitally
share their buying history, shopping preferences and fashion phobias.
- Information is then delivered to the employees on the sales floor, via their tablet.
Tied to the
the world.
Performance:
- Digital Innovation Award at the 2010 British Fashion Awards
- The livestream of the brand opening in China was watched by over a million
people online, in 185 countries.
- Time to get an answer from a client service representative on livechat: less than
20 seconds.
culture within
Burberry. Technology is the enabler and I find it incredibly liberating. Burberry is really
29. 27
4. NordStrom
#MOBILE ¨POS DEVICE #ECRM #LINE DECREASE #SALE INCREASE
Context:
The first biggest obstacles for customers to buy in store is time wasting. Going to the
store, find out your items in the stores, queuing
why more and more customers prefer buy online.
Campaign:
Nordstorm, an American upscale fashion retailer, have found a solution to reduce
he store
through their smartphone.. Sales associated stand in the store, directly available to
mobile payment processing. Thanks to the apps they are also able to check the
paperless billing.
Performance
By enabling checkout anywhere in the store, sales associates can process purchases in
seconds, decreasing abandonment rates and increasing sales.
ROI
As a matter of fact, since implementing their mobile POS system, both the average
15% increase in Q1 2012 revenue compared to the same period in 2011.
Techno & Support
These mobile POS devices are modified Ipod Touch with merchandise scanner and
credit card slider.
Built on an Oracle platform, the very lifeblood of the company runs on this highly
available, fault tolerant system.
Agency
Designed by the IT department of Nordstrom, a "secret" team from Apple and a few
outside technical developers helped create the basic interface to Nordstrom's
proprietary backend POS software. 42
42
http://www.neilstoolbox.com/bibliography-creator/
30. 28
5. Sephora
#SALES FORCEC SUPPORT # CUSTOMER KNOWLEDGE # UPSELL
Context
Because Sephora has evolved to a self service store, the brand has lost the personalized
customer relationship in store. The new objective of this omnichannel solution has been
to reconstitute this personnalized relationship by capitalising on customer knowledge.
Campaign
The seller recognizes the customer through a Sephora fidelity card or his name. An
information form appeared summarizing the customer fidelity points, his average
basket, nature of products most bought, his contact information, his purchase
baskgrounds
algorithm. This engine is able to implement and improve from the customers; the sale
Performance
L'enseigne de cosmétiques Sephora a développé My Sephora, une application accessible
aux vendeurs en magasins équipés de l'Ipod Touch de l'enseigne (800 à ce jour). Cette
innovation, en test depuis juillet 2011 et déployée graduellement en France depuis le
début de l'année dans les quelque 300 magasins de l'enseigne
ROI
Sephora has been designed by L2 has the company that best exploit mobile possibilities.
Techno & Support
This application has been implemented on Ipod Touch by Sephora
The CRM technology to merge dat
Agency / Sephora & ScentSA, now bought by Sephora43
http://www.forbes.com/sites/kellyclay/2012/04/06/nordstrom-sees-15-3-increase-in-
retail-sales-following-introduction-of-mobile-pos-devices/
http://www.odysseyinc.com/blog/nordstrom-mobile-point-of-sale/
http://www.quora.com/Nordstrom/What-features-does-Nordstroms-modified-iPod-touch-
mobile-POS-system-encompass
43
ttp://www.le-furet-du-retail.com/article-l-appli-conseillere-beaute-my-sephora-le-crm-
de-l-enseigne-sur-le-bout-des-doigts-102086132.html
31. 29
6. Walmart
#GEOFENCING # GEOLOCATION # INSTORE M PAYMENT
Context:
Google says that 89% of shoppers use their mobile phone while shopping for groceries
Description:
Fall 2012 WalMart launched its own developed mobile application proposing an in-
store mode. This app allowing customer to creates its shopping list, and while he is
close to a WalMart store, to be geolocated and the app switch to its « shop » mode.
Proposing geofencing. A scanning function permitting to customers to purchase
straightly without wasting time at cash desk queues, is include in the app.
Performance:
N/A
ROI:
Gibu Thomas, Walmart's Global Head of Mobile: More than 50% of our customers have
smartphones. About one-third of . It was as high as 40%
over the holidays. Mobile app users spend 40% more each month and make two more trips
per month. Our highly engaged spend 77% more each month and make four more trips
per month than the non-mobile user. Mobile shoppers are some of our most loyal
shoppers.
Techno & Support:
WalMart
Agency:
N/A
Application (examples):
Shopping list making + Geofencing
ROI:
40% app increase during the holidays
Brands using it: Wal-Mart Stores, Inc.44
44
Julie Ask. (2013). WALMART TAKES CONTEXTUAL, PRAGMATIC APPROACH TO MOBILE.
Available: http://blogs.forrester.com/julie_ask/13-05-22-
walmart_takes_contextual_pragmatic_approach_to_mobile. Last accessed 16th Dec
2013.
32. 30
7.
#CRM 360 #GEOFENCING # SoLoMo
Context:
BLE (Bluetooth Low Energy), the latest Apple innovation
Campaign:
-
scans are organized in a feed for effortless shopping close to the customer.
- Kicks are rewards points. Collected by walking in or scanning items at stores near
your customer. Just need to open shopkick at the store's entrance.
- Link your Visa or MasterCard card to earn even more kicks when you make
qualifying purchases. Redeem kicks for gift cards
Technology: ShopKick : Around customer selection of products selected thanks
customer intelligence, and when close to a device placed out behind the clothe hunger ,
ShopBeacon device he is prevent about the presence of the product selected close to
him.
Category:
Shopping Community
Name:
Shopkick
ROI:
5 billion kicks ($20 million) earned by users 7 million gift cards redeemed 50 million
products scanned30 million verified store strips
Attract high-value demographics (millennials, moms, young families, etc.)
Leverage the power of mobile to improve in-store experiences
Develop long-term relationships with consumers
Capture data on consumer behaviors and resonance of merchandising45
Other Brands using it:
Enid Burns. (2013). Walmart's Mobile App Aims for 'Indispensable' Customer Tools .
Available: http://www.ecommercetimes.com/story/78109.html. Last accessed 16th Dec
2013
45
Jhon P. Mello Jr. . (2013). Macy's Dips Toes in Brave New Marketing World. Available:
http://www.macnewsworld.com/story/79493.html. Last accessed 16th Dec 2013.
ShopKick. (2013). ShopKick. Available: http://www.shopkick.com/index. Last accessed
16th Dec 2013.