building a successful omnichannel strategy for physical … · building a successful omnichannel...

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Building a Successful Omnichannel Strategy for Physical Stores

July 21st, 2016


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Today’s Presenter

Geoff Nairn

Enterprise Solutions Specialist @ Openbravo


!  Introduction

!  What is Omnichannel

!  Physical stores still matter

!  Key Takeaways

!  Q&A

Agenda and Goals


" Customers now expect a much more interactive, intimate and connected shopping experience whether instore or online.

"  There are many more touchpoints, which gives many more opportunities for brands to interact.

The Transformation of Retailing


The Omnichannel Shopper

▪  Convenience, to buy, pay, receive and return how they prefer

▪  Speed, to receive ordered products or information

▪  Personalization, on each interaction with the brand

21%

more profitable

Source: PwC

Source: EKN Research


E-commerce Boom Continues

!"

% change

% of total retail sales

Retail E-commerce Sales Worldwide

Source: emarketeer

Trillions dollars


Times Change

In 2015, online shoppers in the US spent $3.07bn on Cyber Monday, 16% up on 2014.

Source: ;Adobe DigitalIndex

Yesterday Today


53%

25%

12%

62%

17%

9%

46%

21%

10%

55%

17%

8%

in store PC mobile device

Preferred Purchase Method

Apparel & footwear

Furniture & homeware

Sports equipment

DIY

The Continuing Importance of the Physical Store

Source: PwC


Online-Only Retailers Going Physical


#  82 percent of millennials prefer bricks and mortar stores

#  Millennials can be very loyal if actively engaged as valuable customers

Engaging the Millennials

#  68 percent of millennials demand an integrated, seamless experience regardless of the channel


Generation Z Shoppers

•  80% of teens say free shipping and delivery is important

•  77% want special sales or discounts

•  50% prefer a flexible return policy

•  38% try to use rewards when they shop

•  29% join frequent shopper Source: E&Y


# Convenience and proximity

#  Efficiency

#  Inspiration

#  Instant gratification

# Discovery

#  Entertainment and social interaction

#  Experiencing brands and products

Strengths of Bricks-and-mortar stores

Source:McKinsey


Traditional bricks and mortar stores E-tailers Multichannel

retailers Omnichannel

Putting the Customer at the Center

Source:Deloitte


The Retail IT landscape is constantly evolving and customers are increasingly demanding experimental experiences. Some of the benefits of having physical stores and related to the concept of providing a seamless cross-channel shopping are:

Create a more emotional connection by appealing to the five human senses, and that’s possible with face-to-face service

•  Physical stores act as distributed fulfillment centers,

$ serve online orders from stores $ So retailers are embracing ship-from-

store more than ever before $ service same day delivery at low cost

•  Offer click-and-collect •  Increase up-selling opportunities

Benefits of Physical Stores


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Adoption of In-store Omnichannel Capabilities

Source: EKN


Busin

ess

Imp

ac

t

Ease of Implementation

Associate Ordering

In-Store Pickup

Ship from Store

Three key In-store Omnichannel Capabilities


Ship-from-Store Benefits

Source:Teradata

For the Customer #  Expanded product assortment #  Fewer out of stock / back order scenarios #  Fast delivery (expectation of 80% within 1

day; 96% within 2 days) #  Products “always available” when

desired

For the Retailer #  10-40% incremental e-commerce

revenue #  Increase inventory sell through #  Decrease markdowns #  Optimize store assets and labor

10-20% Revenue

uplift


Buy-Online-Pickup-in-Store Benefits

Source:Teradata

For the Customer #  Convenience of online shopping #  Same day pickup #  No shipping costs

For the Retailer #  37% purchase additional products while

picking up in-store #  Leverage store assets #  Increase foot traffic and upsell opportunity #  Demonstrate unique and differentiated

guest experience

37% Purchase additional products


Excel at Customer Service

!  Train your employees so they become real “ninjas”

!  And empower them with the best technology

!  So they deliver the best possible customer service



Inventory Visibility in Openbravo

In-store stock information and in other stores


Assisted Sale in Openbravo

Information to associates about applicable discounts and promotions.

Search by product characteristics.

Information about complementary products and best sellers.


Up and Cross-Selling with Openbravo


Mobile is now Central to Omnichannel

!  Consumers use mobile devices as an integral part of the shopping journey !

!  Equipping sales associates with in-store mobile devices is a prerequisite for a successful omnichannel strategy


■ Ensure product data quality and consistency across all assisted and non-assisted sales channels with centralized management of all your products, prices and promotions.

■ Provide accurate inventory information regardless of the channel and gain single view of customer activity across channels.

■ Integrate seamlessly with the e-commerce platform of your choice or leverage existing connectors with solutions like Magento or Prestashop.

■ Prepare your stores to become multichannel hubs and benefit from new opportunities like in-store fulfillment.

Openbravo offers Omnichannel Readiness


Reimagining Retail

The experience of being in a store could become the most important product a retailer sells.


Key Takeaways

▪  Omnichannel customers are more valuable but demand higher speed, convenience and personalization

▪  Customers now expect retailers to offer Omnichannel capabilities such as Buy Online, Pick up in-Store or In-store Fulfillment

▪  Product information needs to be consistent across channels and leveraged to personalize assortments by channel and customer profiles

▪  You need enterprise-wide inventory visibility ▪  Choose technologies that help you evolve to

omnichannel at your own pace


Any Questions?

You can submit additional questions or comments after the webinar on Twitter.

Hashtag: #obravowebinar

#obravowebinar


Web: www.openbravo.com/contact Email: [email protected] Spain Office: +34 932 725 947 France Office: +33 (0)1 70 08 73 62 India Office: +91 33 4004 7358 Mexico Office: +52 559171 1841

Thank you very much for your attention

building a successful omnichannel strategy for physical … · building a successful omnichannel...

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