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2	
	
	
	
	
WHY & HOW BRANDS
MUST GO OMNICHANNEL
Muriel Hug , Floriana Nicastro,
Robin Cartier , Adrien Pichard
February 7, 2014
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
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.
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
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
4	
	
	
In	a	recent	article	from	FEVAD	(2012)	45%	Internet	users	admitted	using	Internet	in	a	
context	of	mobility.	
Consequences	of	always	on	Internet	access:	clients	feel	generally	empowered	by	their	
devices.		
	
	
2. Connected customer = Wiser customer
As	a	direct	implication	to	the	fact	that	clients	get	instant	access	to	all	the	informations	
they	need,	they	tend	to	be	more	knowledgeable	about	the	product	they	are	buying.	
1/3	 of	 mobile	 shoppers	 say	 they	 use	 their	 phone	 in-store	 to	 avoid	 having	 to	 ask	
salespersons	information.	Google,	(2013)	
ecific	product.	They	
tend	to	consider	salespersons	as	slower	than	a	search	engine,	less	comprehensive	than	a	product
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.
6	
	
Figure	2	:Source:	Brian	Solis	(2012):	Meet	Generation	C:	The	Connected	Customer6	
	
Here	is	an	illustration	of	such	new	decision-making	process:		
	
Client	X	discovers	a	new	product	on	the	Facebook	wall	of	one	of	his	friends,	which	says	
he	likes	it.	
X	then	goes	to	Google	to	find	more	information,	he	then	reaches	a	blog	that	leads	him	to	
an	e-commerce	website.	He	looks	for	additional	information	on	a	price	comparator,	a	
forum,	then	
X	then	discusses	about	this	brand	with	friends.	X	is	later	on	addressed	by	retargeting	
banners	displaying	the	articles	he	spent	more	time	on.	
X	finally	decides	to	visit	the	closest	store	he	was	proposed	when	using	the	store	locator,	
but	its	Sunday	and	X	is	now	willing	to	have	the	product	ASAP,	so	he	purchases	the	article	
online	to	get	it	delivered	at	his	house	on	Tuesday.	
	
	
4. m-Commerce
m-
but	 many	 choose	 to	 think	 of	 mobile	 commerce	
	
	
While	desktop	browsing	remains	steady,	it	is	forecasted	that	mobile	Internet	will	be	the	
primary	source	of	traffic	on	the	Internet:	
	
																																																								
6	Available:	http://www.briansolis.com/2012/04/meet-generation-c-the-connected-customer/	
Last	accessed	04	Feb	2014
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
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
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.
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.
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
12	
	
Figure	9	:	Global	Smartphone	traffic	to	increase	10X	by	201922	
	
In	2012,	42%	of	m-buyers	declared	having	used	a	mobile	terminal	at	one	stage	of	their	
purchasing	decision	and	for	very	different	usage	(Google,	2012).23	
	
	
Figure	10	:	the	mobil	is	important	at	every	stages	of	the	purchasing	decision24	
	
Retailers	now	share	a	common	concern	throughout	the	globe	on	how	to	effectively	re	
engage	disenchanted	consumers.	
	
	
3. Integrate technologies and information systems
	
Last	 point	 is	 the	 fact	 that	 e-commerce	 systems	 with	 their	 corresponding	 transaction	
engines	 have	 evolved	 separately	 from	 brick-and-mortar	 that	 are	 now	 facing	 the	
complexity	of	adopting	the	most	adapted	and	adaptable	emerging	technologies.		
	
Legacy	 system	 that	 have	 equipped	 point	 of	 sales	 are	 generally	 closed	 and	 require	 a	
heavy	 customization	 in	 order	 to	 integrate	 information	 and	 customer	 relationship	
management	in	the	most	efficient	manner	(Executive	Research	Report,	Jan.	2014).25	
	
																																																								
22	F.Richter	(2013).	Global	Smartphone	traffic	to	increase	10x	by	2019.	www.statista.com	
23	Google	(2012).	Mobile	Study	(Think	mobile	with	Google).	
24	Eurogroup	Consulting	(Sept	2013).	En	route	vers	le	commerce	3.0.	
25	The	university	of	Arizona	and	Demandware	(	January	2014).	The	next	of	online	and	offline	convergence.
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/.
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
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
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.
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
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.
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.
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.
21	
The	main	reason	of	the	online	commerce	increase	is	time	saved	compared	to	buying	in	
store.	Lot	of	solutions	have	been	developed	to	avoid	time	waste,	check	out	abandons	or	
dissatisfaction.	
	
- Mobile	checkout	
Thanks	 to	 mobile	 support,	 the	 sale	 person	 is	 able	 to	 scan	 products,	 account	 for	 the	
customer	basket	and	check	out	anywhere	in	the	store	
	
Delivery		
- Click	and	Collect	/	instore	
In	 contrary	 to	 check	 and	 reserve	 solution,	 click	 and	 collect	 solution	 allows	 to	 know	
product	availability	and	reserve	it	,	buying	it	and	then	to	come	to	store	to	collect	it.
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
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.
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
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
26	
music.	Of	course,	there	are	the	clothes	and	bags,	watches,	eyewear	and	fragrances.	But	
-way	 street	
- 	
Christopher	Bailey,	Chief	creative	officer	
	
Technology	:	
Social	media	monitoring:	Radian	6,	Buddymedia	(Salesforce	technologies)	
In	store	digitization:	RFID	tags,	Unified	CRM	between	stores	and	e-commerce	website,	
SAP	Hana	(Rich	CRM	analytics)	
	
Support:		
Smartphone	/	e-Commerce	website	/	Social	networks	/	Live	video	streams	/	In	store	
digital	experience	
	
Agency	:		
Internal	digital	team.41	
	 	
																																																								
41
Fieldworks Marketing. (2013). Burberry takes top spot in 2013's Multichannel &
eCommerce Top 100 Movers & Shakers report.
Available: http://www.it-director.com/channels/retail/news_release.php?rel=40993. Last
accessed 18th Dec 2013.
Forbes. (2013). How Fashion Retailer Burberry Keeps Customers Coming Back For More
http://www.forbes.com/sites/sap/2013/10/28/how-fashion-retailer-burberry-keeps-
customers-coming-back-for-more/. Last accessed 18th
Dec 2013
Huffington Post UK. (2011). Burberry: The Best of British Digital Innovation
Available: http://www.huffingtonpost.co.uk/2011/09/07/burberry-the-best-of-
brit_n_951697.html. Last accessed 18th Dec 2013.
Omni- -
Available: http://omni-channelretailing.com/item.php?news_id=7299. Last accessed 18th
Dec 2013.
Robertson, E. (2013). Is Burberry the marmite of multi-channel retailing?
Available: http://www.transformuk.com/is-burberry-the-marmite-of-multi-channel-
retailing/. Last accessed 18th Dec 2013.
Salesforce. (2012). Burberry's Social Story (Video).
Available: http://youtu.be/DzBIYwZsut0. Last accessed 18th Dec 2013.
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/
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
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.
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.
31	
Old	Navy,	Best	Buy,	JCPenney,	Crate	&	Barrel,	Sports	Authority	and	Target;	Partners	with

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Why & How Brands Must Go Omnichannel

  • 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
  • 6. 4 In a recent article from FEVAD (2012) 45% Internet users admitted using Internet in a context of mobility. Consequences of always on Internet access: clients feel generally empowered by their devices. 2. Connected customer = Wiser customer As a direct implication to the fact that clients get instant access to all the informations they need, they tend to be more knowledgeable about the product they are buying. 1/3 of mobile shoppers say they use their phone in-store to avoid having to ask salespersons information. Google, (2013) ecific product. They tend to consider salespersons as slower than a search engine, less comprehensive than a product
  • 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.
  • 8. 6 Figure 2 :Source: Brian Solis (2012): Meet Generation C: The Connected Customer6 Here is an illustration of such new decision-making process: Client X discovers a new product on the Facebook wall of one of his friends, which says he likes it. X then goes to Google to find more information, he then reaches a blog that leads him to an e-commerce website. He looks for additional information on a price comparator, a forum, then X then discusses about this brand with friends. X is later on addressed by retargeting banners displaying the articles he spent more time on. X finally decides to visit the closest store he was proposed when using the store locator, but its Sunday and X is now willing to have the product ASAP, so he purchases the article online to get it delivered at his house on Tuesday. 4. m-Commerce m- but many choose to think of mobile commerce While desktop browsing remains steady, it is forecasted that mobile Internet will be the primary source of traffic on the Internet: 6 Available: http://www.briansolis.com/2012/04/meet-generation-c-the-connected-customer/ Last accessed 04 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
  • 14. 12 Figure 9 : Global Smartphone traffic to increase 10X by 201922 In 2012, 42% of m-buyers declared having used a mobile terminal at one stage of their purchasing decision and for very different usage (Google, 2012).23 Figure 10 : the mobil is important at every stages of the purchasing decision24 Retailers now share a common concern throughout the globe on how to effectively re engage disenchanted consumers. 3. Integrate technologies and information systems Last point is the fact that e-commerce systems with their corresponding transaction engines have evolved separately from brick-and-mortar that are now facing the complexity of adopting the most adapted and adaptable emerging technologies. Legacy system that have equipped point of sales are generally closed and require a heavy customization in order to integrate information and customer relationship management in the most efficient manner (Executive Research Report, Jan. 2014).25 22 F.Richter (2013). Global Smartphone traffic to increase 10x by 2019. www.statista.com 23 Google (2012). Mobile Study (Think mobile with Google). 24 Eurogroup Consulting (Sept 2013). En route vers le commerce 3.0. 25 The university of Arizona and Demandware ( January 2014). The next of online and offline convergence.
  • 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.
  • 23. 21 The main reason of the online commerce increase is time saved compared to buying in store. Lot of solutions have been developed to avoid time waste, check out abandons or dissatisfaction. - Mobile checkout Thanks to mobile support, the sale person is able to scan products, account for the customer basket and check out anywhere in the store Delivery - Click and Collect / instore In contrary to check and reserve solution, click and collect solution allows to know product availability and reserve it , buying it and then to come to store to collect it.
  • 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
  • 28. 26 music. Of course, there are the clothes and bags, watches, eyewear and fragrances. But -way street - Christopher Bailey, Chief creative officer Technology : Social media monitoring: Radian 6, Buddymedia (Salesforce technologies) In store digitization: RFID tags, Unified CRM between stores and e-commerce website, SAP Hana (Rich CRM analytics) Support: Smartphone / e-Commerce website / Social networks / Live video streams / In store digital experience Agency : Internal digital team.41 41 Fieldworks Marketing. (2013). Burberry takes top spot in 2013's Multichannel & eCommerce Top 100 Movers & Shakers report. Available: http://www.it-director.com/channels/retail/news_release.php?rel=40993. Last accessed 18th Dec 2013. Forbes. (2013). How Fashion Retailer Burberry Keeps Customers Coming Back For More http://www.forbes.com/sites/sap/2013/10/28/how-fashion-retailer-burberry-keeps- customers-coming-back-for-more/. Last accessed 18th Dec 2013 Huffington Post UK. (2011). Burberry: The Best of British Digital Innovation Available: http://www.huffingtonpost.co.uk/2011/09/07/burberry-the-best-of- brit_n_951697.html. Last accessed 18th Dec 2013. Omni- - Available: http://omni-channelretailing.com/item.php?news_id=7299. Last accessed 18th Dec 2013. Robertson, E. (2013). Is Burberry the marmite of multi-channel retailing? Available: http://www.transformuk.com/is-burberry-the-marmite-of-multi-channel- retailing/. Last accessed 18th Dec 2013. Salesforce. (2012). Burberry's Social Story (Video). Available: http://youtu.be/DzBIYwZsut0. Last accessed 18th Dec 2013.
  • 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.