is omnichannel dead? evolving tactics for today's retail

Is Omnichannel Dead?Evolving Tactics for Today’s Retail

#OMNIPRESENCE

PRESENTED BY:

| 2

Panel

Gary LeePresident & CEO,InReality@gary_r_Lee

Jess StephensCMO, SmartFocus@jessstephens

| 3

• What is Omnichannel Really?• 3 Trends Shaking Up Omnichannel• Is Omnichannel Dead?• Examples of Evolving Tactics• Q&A

#OMNIPRESENCE

Agenda

| 4

What Is Omnichannel Really?

| 5

The Dream…

| 6

The Reality…

| 7

3 Trends Shaking Up Omnichannel

| 8

#1

The consumer’s journey just got more complex…

| 9

#1

Consumer adoption of new technologies is now happening faster and faster…

Source: The Economist

| 10

#1

This rapid adoption of technology is spilling over into retail…

Over the last 6 years, ecommerce has grown at a CAGR of almost 16%.

Last year digital influenced $1.7T of in-store sales compared to just $0.33T a few years ago.

Sources: U.S. Census Bureau; Deloitte

| 11

#1

Now there are 800+ possible consumer journeys…

Source: Cisco

| 12

#1

What that means for both brands and retailers…

1. It’s Not About Maximizing Channels Separately.

2. Waiting on Technologies to Go Mainstream Will Put You Out of the Game.

3. It’s Time to Get a Unified View of the Customer.

| 13

#2

The ZMOT isn’t the only point of influence anymore…

| 14

#2

Ads are losing their luster….

70% of consumers now find out about a product outside of brand advertising

Source: Deloitte

| 15

#261%

of consumers are are using search engines for their research activity, not a brand’s app or website

And, brands are having less effect throughout the journey…

of consumers read product reviews during their shopping journey

of consumers say product information on social channels influences their decision75

%

67%

Source: Deloitte

| 16

#2

What that means for both brands and retailers…

1. Stop Focusing Exclusively on “the Purchase”. Use Analytics to Influence the Journey that Got Consumers There.

2. Revisit How Existing Touchpoints, like Brick-and-Mortar Spaces, Can Be Best Utilized to Maximize Influence.

| 17

#3

It’s All About MeCommerce…

| 18

#3

Consumers are now in control & they demand more…

Here are a few of their expectations:

85%

64%

82%

of consumers would be more likely to shop in stores that offer personalized offers

of consumers would be more likely to shop in stores that offer specific recommendations for products to purchase

of consumers want to be able to return items purchased online using free shipping or a store visit

Source: Google

| 19

#3

Not Even the Giants Are Safe….

Source: About.com

| 20

#3

What that means for both brands and retailers…

1. Make Experiences Hyper-Relevant

2. Unify Pricing, Delivery & Return Policies

| 21

Is Omnichannel Dead?

| 22

I would argue that omnichannel was the wrong vision. It was meant to be the same experience across every channel, but it should have been a consistent experience across every channel, with the added layer of context to then change the customers’ experience for their needs at that moment.

You can’t just replicate the in-store experience online or vice-versa. Each channel has its own virtues and unique purpose and that should be recognized and embraced, because there’s a reason customers are still using it.

- Jessica Stephens, SmartFocus

Omnichannel—The Wrong Vision?

“

”

| 23

Let’s turn it around for a second… The reality is, customers couldn’t care less about omnichannel as a term. And, if we look at it through their eyes, there’s more than just channels, what about the different phases that they go through during their journey? What are they doing before, during and after their purchase?

Because of that, it’s time to elevate omnichannel a bit, to what we call omnipresence. A brand or retailer needs to understand what customers are doing at every phase of their journey and then with that understanding they need to make sure they are delivering a very hyper-relevant experience so that they’re meeting the needs, the expectations and maybe even the things the customer didn’t even know they wanted. That way, they’re delivering what the customer needs at just the right moment in time.

- Gary Lee, InReality

It’s Time for Omnipresence…

“

”

| 24

Examples of Evolving Omnichannel Tactics

| 25

Example #1: Bonobos

Image Credit: Bonobos

| 26

• Didn’t follow everyone else—really considered what’s the real role of brick-and-mortar for Bonobos and its customer base.

• Reengineered the form and function of the store to allow customers to really experience the brand and the products, switching the store’s role from fulfillment house to creating a real-world interface for the web operation and brand—physical up front, digital in the back.

Today, average order is now 50% higher for customers coming in store than what Bonobos was seeing online-only. And, sales per square foot is the highest known in men’s clothing.

What We Like About Bonobos…

| 27

Example #2: Office

| 28

• Used retail technology (beacons) in a clever way to tap into the millennial audience.

• Setup up a location-triggered mobile campaign, similar to an abandoned cart email campaign, offering customers the opportunity to get an incentive for submitting a review of their experience, rather than directly pushing the sale.

The campaign was extremely successful, and office actually saw a 72% open rate and a high click-rate.

What We Like About Office…

| 29

Example #3: Walmart

Image Credit: Flickr / Walmart

| 30

• Took price disparity off the table from online to offline, and even matches competitor prices to fulfill its mission to guarantee customers the lowest price.

• Worked to give customers a truly seamless and easy purchase, delivery and return process—customers can choose what combination works best for them.

• Planning to spend $1.2-$1.5B in digital infrastructure to really innovate how they deliver what customers need.

In annual shareholder’s meeting last year, they had seen impressive growth: $12.5B in online sales, with an expected 25% increase this year.

What We Like About Walmart…

| 31

Questions???

| 32

• Consumers now have 800+ paths to purchase!

• Don’t maximize channels separately. Think one channel. One experience.

• Don’t wait on mainstream adoption. Digital will make sure you lose.

• Consumers want hyper-relevant experiences.

• No more online-only or in-store only policies. One channel. One experience.

• It’s time to move beyond omnichannel.

Tweetable Takeaways #Omnipresence

Meet InReality Meet SmartFocus

InReality helps brands and retailers increase

customer engagement by delivering hyper-

relevant customer experiences. Through a

combination of retail analytics, consumer

insights, experience-based design, fulfillment

and 20 years of transformative retail work,

InReality helps maximize influence along the

path to purchase. Having worked with clients

like The Coca-Cola Company, The Home

Depot, Philips and Tempur-Sealy, InReality is

uniquely positioned to help brands and

retailers capture customer’s in the reality of

today’s complex retail environment.

Find out more at:

www.inreality.com(770) 953-1500info@inreality.com

SmartFocus is an innovator in messaging and

communications, enabling the world's largest

brands - including Mercedes-Benz, Macy's

and Levi's and to understand and connect

more closely with today's connected

consumers; whether that be via web, mobile,

email or social channels. Through The

Message Cloud solution, SmartFocus

genuinely listens to and learns from

customers using patented algorithms and

unique location-based marketing tools. Using

The Message Cloud, SmartFocus customers

have the rich data, intelligence and the tools

for contextually unique engagements,

through any digital channel.

Find out more at:

www.smartfocus.com(425) 460-1000