build biz case inforgraphic 2 - kibo software, inc...brand loyalty profitability and retailers know...

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25REASONS WHY YOU SHOULD OMNICHANNEL

#1

#3

CONSUMERS WANT OMNICHANNEL

Product Pricing

Saved Items List (i.e. wishlist)

Personalization and Recommendations

91%

81%

55%

51%

PERCENTAGE OF CONSUMERS EXPECTING CONSISTENCY ACROSS ONLINE, MOBILE, AND INSTORE RETAIL CHANNELS

O�ered Promotions

#4

OF RETAILERSBELIEVE THAT CREATING A CONSISTENT CUSTOMER EXPERIENCE ACROSS CHANNELS IS VERY IMPORTANT

84%

OF RETAILERS HAVE NOT IMPLEMENTED A SINGLE BRAND EXPERIENCE ACROSS ALL CHANNELS

78%#6

With Omnichannel Without Omnichannel

89% 33%

Aberdeen Group

CUSTOMER RETENTION RATES

#2

OMNICHANNEL RETAIL IS PROVEN TO INCREASE:

SALESCUSTOMER SATISFACTIONBRAND LOYALTYPROFITABILITY

AND RETAILERS KNOW THEY NEED TO DELIVER

BUT#5

OMNICHANNEL AND MOBILE: BOTH IN-STORE AND ON THE GO, THE ROLE OF DIGITAL DEVIC-ES IN THE SHOPPING PROCESS CANNOT BE UNDERSTATED. WHAT PART DOES MOBILE PLAY IN YOUR OMNICHANNEL STRATEGY?

#7

40% 22% 25%

Deloitte Deloitte In Reality

Higher Conversion Rates Larger Order Sizes Will Purchase on Device While In-Store

#9

#8

68%

INDUSTRY AVERAGE FOR ONLINE CART ABANDONMENT

61% PRIMARY REASON FOR ABANDONMENT IS EXTRA COSTS (SHIPPING FEES)

#10

PERCENTAGE OF RETAILERS INVESTING IN OMNICHANNEL FULFILLMENT CAPABILITIES

Currently Implemented

Plan to Implement in Next 12 Months

Buy Online, Ship-to-Store

Buy Online, Pick Up In-Store

Buy Online, Ship From Store

Reserve Online, Pick Up In-Store

Cross Channel Returns / Exchanges

Buy In-Store, Ship To Customer

Forrester

16%

14%

19%

14%

19%

20%

20%

18%

11%

16%

15%

14%

36%

32%

30%

30%

34%

34%

#11

OVER THE NEXT 12 MONTHS, AN INCREASING NUMBER OF RETAILERS WILL HAVE INVESTED IN ALTERNATIVE FULFILLMENT OPTIONS FOR THEIR CONSUMERS.

#12

40%+ INCREASE IN ONLINE SALES AFTER LAUNCHING SHIP-FROM-STORE.

#13

15% - 20%

OF SHOPPERS WHO PICK UP IN-STORE ALSO BUY SOMETHING ELSE WHILE IN THE STORE

#14

68% RETAILERS MAKING PERSONALIZED EXPERIENCES A TOP PRIORITY FOR THE UPCOMING YEAR

#15

#16LACK THE RIGHT TECHNOLOGY TO PERSONALIZE

BUT53%

ORGANIZATIONS ARE MISALIGNED ON THEIR PERSONALIZATION STRATEGY

AND1 IN 3 #17

OF IN-STORE CUSTOMERS SAY THEY WOULD LIKELY USE ENDLESS AISLE TO PURCHASE AN OUT-OF-STOCK STORE ITEM

57%

BUT GETTING IT RIGHT HAS HIGH ROI:

RETAILERS LEVERAGING NEXT-GENERATION PERSONALIZATION TECHNOLOGY HAVE SEEN:

200% TO 60%IMPROVEMENT IN CONVERSION RATES

6% TO 46%IMPROVEMENTS IN AOV

#18

#19

100%

Health and Beauty

Apparel

Home and Housewares

Toys and Sporting Goods

Other

Conversion Rates Improvements by IndustryAverage Order Value (AOV) Increases by Industry

227%

377%

399%

418%

616%

8%

46%

41%

38%

6%

94%of consumers report discontinuing relationships with merchants because of irrelevant promotions

#20

#21

STORE ASSOCIATES HAD ACCESS TO STORE INVENTORY IN A RECENT MYSTERY SHOPPING STUDY OF 30 TOP RETAILERS

AND

OF STORE ASSOCIATES ATTEMPTED TO USE THAT ACCESS TO INVENTORY TO SAVE THE SALE

BUTONLY7%90%

#22

#23

20% OF RETAILERS HAVE ALREADY DEPLOYED ENDLESS AISLE VIA A BUY IN-STORE, SHIP TO CUSTOMER FULFILLMENT MODEL

AN ADDITIONAL

OF RETAILERS PLAN TO OFFER ENDLESS AISLE WITHIN THE NEXT 12 MONTHS

14%

#24

#25

CONCLUSION

BUILDING A BUSINESS CASE FOR OMNICHANNEL COMMERCE

OMNICHANNEL RETAIL IS A STRATEGY, NOT A PROJECT, SO RETAILERS CAN’T JUST IMPLEMENT ONE OF THE MANY OMNICHANNEL OPTIONS AND EXPECT SUCCESS. BY STRATEGICALLY INVESTING IN CAPABILITIES ACROSS THE MAJOR AREAS OF OMNICHANNEL, RETAILERS WILL EMPOWER THEMSELVES TO CAPITALIZE ON THE CONSUMER BLENDING THE DIGITAL AND IN-STORE CHANNELS, INSTEAD OF FALLING VICTIM TO CUSTOMER ATTRITION AND LOST SALES. AS NEW OPPORTUNITIES EMERGE, RETAILERS MUST BE PROACTIVE BY DRIVING SEAMLESS, UNIFIED COMMERCE EXPERIENCES ACROSS THEIR DIGITAL (ONLINE AND MOBILE) AND IN-STORE CHANNELS.

THE BENEFITS OF OMNICHANNEL RETAIL ARE CLEAR: INCREASED SALES, CUSTOMER SATISFACTION, BRAND LOYALTY, AND PROFITABILITY. WHY THEN DO SO MANY ORGANIZATIONS STILL STRUGGLE TO BUILD A BUSINESS CASE TO INVEST IN OMNICHANNEL COMMERCE? LEVERAGE THE DATA AND PROOF POINTS BELOW TO MAKE A CASE FOR OMNICHANNEL RETAIL IN YOUR ORGANIZATION.

17% 15%

Price Comparisons Finding Product Information

Find / Redeem a Coupon

Read Customer Reviews

Forrester

COMMON USE CASES FORE IN-STORE SMARTPHONE USE

15%19%

OMNICHANNEL RETAILING WILL SIMPLY BE THE WAY

WE SHOP; IT WILL BE UBIQUI-TOUS AND NO LONGER A DIF-FERENTIATOR. IT WILL BE WHAT RETAILERS MUST DO TO BE PROFITABLE.

-PWC: STRATEGY & GROUP

THE ROLE OF DIGITAL DEVICES

64%

75%

84%

Walker Sands

In Reality

Mobile Payments Today

PERCENTAGE OF CONSUMERS USING DIGITAL DEVICES IN-STORE

OMNICHANNEL AND FULFILLMENT:CONSUMERS DON’T CARE WHERE THE PRODUCT COMES FROM (STORE, WAREHOUSE, THIRD-PARTY, ETC.) AS LONG AS IT ARRIVES QUICKLY, CHEAPLY AND IN THE FULFILLMENT METHOD THEY PREFER.

OMNICHANNEL AND PERSONALIZATION:FORGET PRODUCT RECOMMENDERS, BEST-IN-CLASS RETAILERS ARE IMPLEMENTING REAL-TIME INDIVIDUALIZATION ENGINES FOR PERSONALIZEDSHOPPING EXPERIENCES THAT INCREASE BOTH BRAND LOYALTY AND AOV.

OMNICHANNEL AND THE STORE:TWO EASY WAYS TO LEVERAGE OMNICHANNEL RETAIL AND INVENTORY VISIBILITY IN THE STORE IS THROUGH SAVE THE SALE AND ENDLESS AISLE INITIATIVES.

THE EFFECT OF CONSUMERS USING DIGITAL DEVICES IN-STORE

SOURCES: RSR RESEARCH, ABERDEEN GROUP, DELOITTE, WALKER SANDS, IN REALITY, MOBILE PAYMENTS TODAY, MCKINSEY’S PERISCOPE, FORRESTER, EPISERVER, KIBO