delivering omnichannel: from the back-end to the front-end and beyond

Delivering Omnichannel: From The Back-‐End To The Front-‐End And Beyond

Presented by Session sponsored by

#RetailCCS

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#RetailCCS @ConnectConsumer @RTouchPoints

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About CCS 2013

ü 5 Webinars, 4 Days

ü Sessions covering Store

Ops, X-Channel, Loyalty,

Big Data & more

ü Featuring industry

analysts and consultants

ü Free for Retail executives

www.retailtouchpoints.com/special-connected-consumer-series-2013

#RetailCCS

Welcome Webinar A1endees

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Xbox One Giveaway

Enter to win an Xbox One by attending at least two sessions from this week’s webinar series!

*Visit the contest rules page for more information.

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About Retail TouchPoints

ü Launched in 2007

ü Over 28,000 subscribers

ü To provide executives

with relevant, insightful

content across a variety

of digital medium

#RetailCCS

Panelists

Debbie Hauss Editor-In-Chief

Retail TouchPoints

MODERATOR

Larry Freed President & CEO

ForeSee

Casey Shea Retail Business Development

Manager UXC Eclipse

INNOVATING ANALYTICS: COLLECTING & INTEGRATING THE DATA TO SUCCEED IN OMNICHANNEL RETAILING Larry Freed, President and CEO, ForeSee

[email protected] t: @larryfreed

Innovating Analytics @LarryFreed

Leveraging Customer Experience for Business Success

Increase the Velocity of Growth ►  Customer Retention ►  Customer Upsell ►  Acquire New Customers

►  Through marketing ►  Through word of mouth

Allocate finite resources with higher precision, bigger impact and minimum waste Win more business than competitors


The Evolving Consumer

Lower Switching Costs Consumer in Charge


If you aren’t measuring Customer Experience…

•  Poor investments and missed opportunities

•  Disappointing channel outcomes at the expense of overall brand

•  Internal disconnects exposed to your customers

You risk:

86% of leaders place Customer Experience as their TOP strategic priority.

--Forrester

59% of large companies have ambitions to be industry leaders in customer experience within three years.

--Temkin Group

The CUSTOMER EXPERIENCE has emerged as the single most important aspect in achieving success for companies across all industries.

--Peppers and Rogers Group

@LarryFreed Innovating Analytics

STATUS QUO IS NOT ENOUGH


Tracking behavior is backward looking

Status Quo: Behavioral data

Next Generation: Voice of Customer


Listening to feedback alone can be misleading

►  Feedback direct to the company and via Social is dominated by extreme opinions

►  This results in chasing the squeaky wheel and ignoring the silent majority

Status Quo: Behavioral data Opt-in Feedback

Next Generation: Voice of Customer VOC Measurement

►  Social media chatter and feedback companies receive directly via e-mails or phone calls is focused on the ends of the spectrum

►  chasing ‘squeaky wheels’ & ignoring the ‘silent majority’

Social feedback


Siloed metrics provide limited insight

Status Quo: Behavioral data Opt-in Feedback Siloed, Single Channel

Next Generation: Voice of Customer VOC Measurement Integrated, Multichannel

Traditional Metrics are

Single Channel only

Consumers are multi-channel, multi-device


THE NEXT GENERATION CUSTOMER EXPERIENCE ANALYTICS

Multi-channel Integration Innovation

► 


48% Multi-Channel

m. site

m. app

The Multi-Channel Customer Experience

52% Single Channel

Data Source: ForeSee Q3 Top Brands Research



Data Source: ForeSee Q3 Top Brands Research

m. site

m. app

48% Multi-Channel



Check it out! Just got a great deal on a Samsung 46 in LED Smart TV at Target! Just in time to enjoy #BowlGames

Eric Feinberg

Retweeted by Sarah Allen-Short


False Positives, False Negatives

Behavioral Reality

SUCCESSFUL MULTI-CHANNEL, MULTI-DEVICE EXPERIENCE

►  Natural Web Search

►  Cart Abandonment

►  Mobile Site Abandonment

►  Successful Social Media Recommendation

►  Successful Research Experience

►  Successful Mobile Companion Experience



Multi-channel Integration Innovation

► 


Next Generation Customer Experience Analytics: Integration

Integrated Metrics

= Better Metrics

= Better Business Decisions

= Better Customer Experience

= Better Corporate Performance



Multi-channel Integration Innovation ► 


Innovation: Introducing the Word of Mouth Index The Next Generation of Net Promoter Score (NPS)





à Net Promoter Score (NPS)


What is NPS

How likely are you to recommend us to a friend or colleague?

1 2 3 4 5 6 7 8 9 0 10

Detractors Passives Promoters

NPS = % Promoters - % Detractors


NPS Positives

► The importance of the customer

► The power of positive word of mouth

► Easy and simple for company leaders to understand

► Rallying the entire organization around the importance of the customer …low hanging fruit


NPS Fundamentally Flawed: Assumes Non-recommenders = Detractors

1 2 3 4 5 6 7 8 9 0 10

Detractors Passives Promoters X


Likelihood to recommend

Likelihood to discourage

Word of Mouth Index (WoMI)

Positive Word of Mouth True Promoters®

Negative Word of Mouth True Detractors®



Promoters Detractors

NPS = Recommend % of 9s and 10s

Recommend % of 1s - 6s

True Promoters

True Detractors ® ®

Recommend % of 9s and 10s

Discourage % of 9s and 10s WoMI =



Implemented new question:

“How likely are you to discourage someone from doing business with this company?” November 2011 to May 2013

1,600,000 275 427

Gallup Poll: Fewer Americans Now View Their Income Taxes as Fair

1,005 April 4-7, 2013

Harris Poll: Confidence in Congress Stays at Lowest Point in

Almost 50 years

2,060 April 9-17, 2012

Pew Poll: Big Generation Gap at the Polls is Echoed in Attitudes

on Budget Tradeoffs

2,511 Nov. 28 to Dec. 5, 2012


NPS Overstates Detractors

On average, NPS overstates detractors:

Data Source: ForeSee Q3 Research

780%


1143% 810%

759% 561%

Financial Services

Consumer Packaged Goods Computers/Electronics Manufacturers

Retail

479% 309%

B2B

Automotive

NPS Overstates Detractors



WoMI True Detractors vs NPS Detractors

NPS-Defined Detractors: 22% WoMI-Defined True Detractors: 1%

overstatement

2100% NPS-Defined Detractors: 10% WoMI-Defined True Detractors: 1%

overstatement

900%

NPS-Defined Detractors: 10% WoMI-Defined True Detractors: 1%

overstatement

900% NPS-Defined Detractors: 17% WoMI-Defined True Detractors: 3%

overstatement

467%



WoMI + NPS = Better Metrics


Founded in 2001, a heritage of technology, innovation and scientific rigor

Next Generation Customer Experience Analytics

Utilizing multi-channel predictive analytics in the measurement and analysis

of the customer experience

radically changing the way critical investments and decisions

are made, leading to a competitive advantage


ForeSee cx360 Platform C

OM

MU

NIC

ATION

VI

SIB

ILIT

Y

Prioritization

Visualization

Benchmarking

Voice of Customer Measurement

Predictive Analytics

Integration

ForeSee Customer Experience Analytics Platform


Some of the Companies We Measure

1/2 of the Fortune 100 ● 1/2 of the Top 100 Retailers 6 of the Top 10 Banks ● Over 90% Customer Renewal

Over 700 customers ● Over 1000 active measures Over 95 million surveys collected ● Over 80 industry benchmarks


Takeaways

1.  You cannot manage what you do not measure

2.  If you’re not measuring the customer experience you’re operating in the dark

3.  Measure from the customers’ perspective – not just the organization’s

4.  Consumers are multi-channel, your measurements and analytics need to be

5.  Keep innovating and moving forward in order to stay ahead

Larry Freed President & CEO ForeSee

(734) 205-2555 [email protected] Twitter: @larryfreed www.foresee.com

Unless conventional merchants adopt an entirely new perspective – one that allows them to integrate disparate channels into a single, seamless omnichannel experience – they are likely to be swept away. Successful companies will engage customers through omnichannel retailing: a mashup of digital and physical experiences.

Harvard Business Review, Dec. 2012

Enabling Retailers to deliver the complete

shopping experience

Realize the future of retailing

today

Why Microsoft in Retail?

Greater than the sum of its parts

The Complete Shopping Experience Personal

from mass merchandise to

personal merchandise

Seamless

from the company’s channel to my channel

Differentiated

from standard to standout

Connected without compromise

What they want – how, when, and

where they choose

Personally Relevant

Increase employee productivity & effectiveness

Agile & Opportunistic

Anticipate Trends & Capitalize on Opportunities

Stores

Catalog Kiosk

Mobile

Consumers Corporate Accounts

Web

Microsoft Dynamics AX for Retail

Omni-channel Retail Brick and Mortar, eCommerce (incl. Storefront, 3P marketplaces, search and social) and mCommerce

( FIS / FAST)

eCommerce

Dynamics for Retail

Store Front Social

Store Systems / POS

Store Server

Web Service Interface

Retail Server

MPI / Sites

3P MP Search

Customer Phone

Product Catalog / Omni Channel Enrichment

Merchandizing / Assortments / Pricing Promotions / Targeting

Customer Loyalty Management

Core Operations BI / Data Mining

Supply Chain Management Warehousing Logistics

Intro to UXC Eclipse

}

}

Service is the differen.ator that sets us

apart. We offer our customers genuine

respect and invest .me in understanding

their business goals and strategies. David Weiner CEO, UXC Eclipse North America

Service and Support •  Customer service focus is to exceed expectaMons

•  “Customer for life” philosophy •  24 x 7 x 365 support from dedicated team •  Focused Account Management team •  97% customer retenMon rate

Quick Facts •  Established in 1986 •  Leading AX for Retail Microso\ partner

•  1 of the top 3 Microso\ Dynamics partners globally

•  Inner Circle member for Microso\ Dynamics (Top 1%)

•  Over 400 staff supporMng 1,400 global customers

•  Publicly owned, UXC Limited

Revenue

FY 02

FY 13

}

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Dynamics AX for Retail

Howard Tafler, Chief Financial Officer, DAVIDsTEA speaks about the decision to choose Microsoft Dynamics AX 2012 for Retail:

“We needed an efficient end-to-end system that could help us better integrate our retail processes, as well as provide accurate, store level data to facilitate better decision-making. The solution also had to offer sustainability and scalability to accommodate our growth.”

Howard Tafler Chief Financial Officer – DAVIDsTEA

Read the full DAVIDsTEA case study at www.uxceclipse.com

Retail Customer Case Study

DAVIDsTEA is a US and Canada mulM-‐channel retail organizaMon focused on the sale of tea and tea related products. Since their opening in 2008, the business has expanded to over 80 stores, and they plan to end the year 2012 with upwards of 140 stores. Tea and accessories are available in store locaMons across Canada, online and select locaMons in the United States.

•  Microsoft Dynamics AX for Retail

•  Integrated Omni-Channel E-Commerce

•  Advanced Demand and Allocation Planning

•  Advanced Workforce Management

•  Ability to rapidly expand into new markets

•  Increase customer visibility

•  Ability to forecast and budget enterprise needs

•  Faster growth

•  Rapid growth in multiple countries

•  No single source of the truth

•  Inability to forecast demands, product and people

Customer Business Challenge Solution Customer

Results/Benefits

More Modern More Mobile More Global Visit Booth # 2703 to learn more

Kick-off NRF in style by attending the Opening Night Reception at the Marriott Marquis Times Square Sunday Jan 12 5:30 – 7:30 pm

Follow all the action live on Twitter and Facebook @msretail FB.com/MicrosoftforRetail

BIG !deas Session: Become a Dynamic Retailer and Make Sure You’re Ready for What’s Next Monday Jan 13 3:15 – 4:15 pm

#RetailCCS

Help us Support RetailROI at NRF this year…

Schedule a meeDng with UXC Eclipse at NRF and aIend it, and UXC Eclipse will donate $25 to RetailROI. The Purpose of the Retail Orphan IniMaMve (RetailROI) is to raise awareness and provide real soluMons for the more than 400 million vulnerable children worldwide. Visit www.retailroi.org for more informaMon. To schedule a meeMng, send an email to [email protected] with the subject line NRF MeeMng.

#RetailCCS

Q & A // Panelists

Debbie Hauss Editor-In-Chief

Retail TouchPoints

MODERATOR

Larry Freed President & CEO

ForeSee

Casey Shea Retail Business Development

Manager UXC Eclipse

#RetailCCS

Xbox One Giveaway

Enter to win an Xbox One by attending at least two sessions (live or on-demand) from this week’s webinar series!

*Visit the contest rules page for more information.

#CCSeries13

Thank You For Joining Us

www.retailtouchpoints.com/special-connected-consumer-series-2013

This marks the end of this Connected Consumer Series!

Download and view all on-‐demand sessions at:

delivering omnichannel: from the back-end to the front-end and beyond

Business

chargeinnovating analytics

enoughinnovating analytics

feedback feedback companies

generation custo

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