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CUSTOMER-CENTRIC COMMERCE: PUTTING THE CUSTOMER AT THE HEART OF YOUR BUSINESS

PROF. GINO VAN OSSEL

source: British Retail Consortium / KPMG – Dec. 13 (growth is vs. year ago)

growth non-food

online

+19.2%

growth overall retail

+1.8%

online share of

retail

18.6%

growth John Lewis

online

+22.6%

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AGENDA

1. shopping behaviour 2.0

2. omni-channel?

3. rethinking the value chain

4. conclusion

RETHINKING SERVICE

spoken to a

sales

person

58%

I have

figured it out myself

42%

interaction with sales staff

in-store survey among buyers, Consumer electronics (Belgium), June 2012, n = 382

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RETHINKING SERVICE

no need

71%

why no contact with sales staff ?

in-store survey among buyers, Consumer electronics (Belgium), June 2012, n = 382

RETHINKING SERVICE

0 20 40 60 80 100

12 9 4 27 11 20 19

totally disagree disagree more or less disagree neutral

more or less agree agree totally agree

“Thanks to the information I find on the internet, I know pretty well what I want to buy, before going to the store.”

in-store survey among buyers, Consumer electronics (Belgium), June 2012, n = 408

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RETHINKING SERVICE

“After having looked up information online, I often have the feeling that

I know more about a product than the sales associate.”

source: “Retail in Belgium,” InSites/Vlerick, 2012 (n = 165)

0 20 40 60 80 100

9 10 37 24 20

totally disagree disagree neutral agree totally agree

RETHINKING SERVICE

no need

71%

nobody available

8%

sales person lacks expertise

21%

why no contact with sales staff ?

in-store survey among buyers, Consumer electronics (Belgium), June 2012, n = 382

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12

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13

14

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15

16

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17

fashion?

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19

www.google.co.uk

20

www.google.nl

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www.google.fr

www.google.fr

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importance of search?

source: “Need for speed,” Parago, 2014 (n=>1900; online research, 2013 holiday season)

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AGENDA

1. shopping behaviour 2.0

2. omni-channel?

3. rethinking the value chain

4. independent retail?

5. conclusion

mono- channel

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multi- channel

mono- channel

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29

“For technical & operational reasons it is unfortunately not possible to return the goods in a C&A store”

cross- channel

multi- channel

mono- channel

360°

communication and

sales

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31

93% of visitors are store customers

cross- channel

multi- channel

mono- channel

360°

communication and

sales

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OMNI-CHANNEL

omni- channel

cross- channel

multi- channel

mono- channel

customer centric commerce

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source: British Retail Consortium / KPMG – Dec. 13 (growth is vs. year ago)

growth non-food

online

+19.2%

online share of sales John Lewis ‘13

> 28%

growth John Lewis

online

+22.6%

growth John Lewis

click & collect

+62%

browse & buy

search & retrieve

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37

“We are seeing about 34% of (pick-up) visits translating into additional sales in shop and that number is growing

exponentially at the moment.

It’s typically or increasingly for purchases that the customer didn’t think they would make. So it is quite

out with whatever they were going to collect.”

As shoppers, we appreciate being shown things that appeal to our conscious needs

and preferences.

But we also crave the delight of encountering shops we didn’t know we’d love, carrying products we never knew we wanted –the things that come out of

nowhere to surprise and enchant us!

Doug Stephens

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5,4 7,0

2,3

3,0

buying frequency

in store online

webshop only

customers

store only

customers

omni-channel customers

source: Bijenkorf

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mono- channel

AGENDA

1. shopping behaviour 2.0

2. omni-channel?

3. rethinking the value chain

4. conclusion

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“We started to think about ourselves as a pure play e-commerce company that happened to have really great, differentiated stores

in 500 locations around the world” Matthew Kaness, chief strategy officer for Urban Outfitters

CUSTOMER-CENTRIC COMMERCE

orientation purchase after-sales

enrich

simplify

functional needs

affective needs

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CUSTOMER-CENTRIC COMMERCE

orientation purchase after-sales

enrich

simplify

functional needs

affective needs

CUSTOMER-CENTRIC COMMERCE

orientation purchase after-sales

enrich

simplify

functional needs

affective needs

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receipt

loyalty card

product scanner

gift voucher

push messaging

mailings

“the launch of a webshop compares to omnichannel,

like a wedding to life as a married couple”

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51

52

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53

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AGENDA

1. shopping behaviour 2.0

2. omni-channel?

3. rethinking the value chain

4. conclusion

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‘Dit boek biedt een stevig conceptueel kader én heel concrete handvatten! Een echte must voor al wie begaan is met de toekomst van retail!’

Wouter Torfs, CEO Schoenen Torfs

‘Een "levensnoodzakelijk" boek voor retailers. Gino Van Ossel leert ons dat een onderneming de omnichannelrevolutie niet moet zien als een bedreiging, maar als een buitengewone opportuniteit om de klanten een nog betere service te bieden, eender waar, eender wanneer en voor om het even welk product. ’

Dominique Motte, CEO AS Adventure

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digital dreams digital budget

Jamie Nordstrom head of Nordstrom Direct

“If we focus on the customer, the outcome will be right”

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CUSTOMER-CENTRIC COMMERCE

orientation purchase after-sales

enrich

simplify

functional needs

affective needs

CONCLUSION

66

Prof. Gino Van Ossel

Retail management

E-commerce & omni-channel

Shopper & trade marketing

Channel management

gino.vanossel@vlerick.com

@ginovanossel