Digital Strategy For Retail: Omnichannel (The Hive Think Tank)

1 © iVentures Consulting 2014

eShopper Index ®

eShopper Index

Digital strategy for retail: OmniChannel

®

May 7th, 2014 #hivedata

@cbiget @iventuresC


eShopper Index ®

About us

§  iVentures Consulting is a management consulting firm dedicated to digital strategy, founded in 2005 and based in Paris and San Francisco

§  iVentures Consulting mainly works in the Fashion, Luxury, Cosmetics, Retail, Travel, Media & Entertainment sectors

Digital Business strategy

§  Omnichannel and digital strategy diagnosis and definition

§  Organization, business planning and road map

§  Business intelligence §  Support to implementation

Digital skill development of top managers and executives

§  Training §  Digital academy §  Learning expeditions §  Reverse mentoring …

eShopper Index

§  Ranking & Analysis of leading companies’’ E-Commerce performances all along the customer journey


eShopper Index ®

Today, the question is not to know WHERE customers buy but HOW they buy

IN THE PAST

Physical retail and E-Commerce were two distinct experiences

TODAY

Retail 2.0: a unique & fluid customer experience without breaches


eShopper Index ®

What is eShopper Index?

§  The only International Index to: ü  analyze & rank leading companies’

E-Commerce performances all along the customer journey

ü  cover 13 sub-steps of the customer journey through over 250 criteria

ü  allow cross sector comparisons through over 130 companies in 11 sectors all over the world

Website Mobile

Social platforms

Customer services

CRM OmniChannel


eShopper Index ®

2014 eShopper Index 13 sub-steps measured

O

mni

Cha

nnel

Before purchase

SEO/ SEM

Social Media

Mobile

User Interface

Product Page

During purchase

Sales Funnel

Customer Service

Newsletter

After purchase

Communication emails

Customer Account

Delivery & Package

Return & Refund


eShopper Index ®

Overall Ranking of the 130 analyzed companies

1 Zalando 28 Walmart 55 Thierry Mugler 82 Nocibe 109 YSL 2 Zappos 29 Nike 56 Zara 83 Michael Kors 110 Columbia 3 Amazon 30 Macy's 57 Benefit Cosmetics 84 Ruelala 111 Nespresso 4 Net A Porter 31 Barnes & Noble 58 Louis Vuitton 85 Guerlain 112 Boulanger 5 Gap 32 Yoox 59 Coach 86 Baccarat 113 Sainsbury's 6 Lacoste 33 Burberry 60 Eveil & Jeux 87 Hermes 114 Fresh 7 Fab 34 Estée Lauder 61 Otto 88 Neiman Marcus 115 Safeway 8 Nordstrom 35 Mytheresa 62 Farfetch 89 SFR 116 Guess 9 Marks & Spencer 36 Gilt 63 Nasty Gal 90 DKNY 117 Dior Parfums

10 Ralph Lauren 37 Levi's 64 Toys"R"us 91 Next 118 Homebase 11 Target 38 Justfab 65 Calvin Klein 92 Longchamp 119 Giorgio Armani 12 Sephora 39 Chanel 66 Apple 93 Neutrogena 120 Bouygues Telecom 13 Kate Spade 40 Hugo Boss 67 Saks Fifth Avenue 94 Gucci 121 Orange 14 Harrods 41 Tesco 68 Shopbop 95 Marionnaud 122 3 Suisses 15 Clinique 42 Décathlon 69 Reebok 96 Dell 123 Dolce & Gabbana 16 Sarenza 43 Createurs de Beaute 70 Tommy Hilfiger 97 Argos 124 AT&T 17 Bloomingdale’s 44 Bruneau 71 L'Oréal Paris 98 J. Crew 125 Sprint 18 John Lewis 45 Bonobos 72 Best Buy 99 Nine West 126 Prada 19 La Redoute 46 Yves Rocher 73 Pixmania 100 Carphone Warehouse 127 Vodafone 20 Fnac 47 Avon 74 Staples 101 Swarovski 128 T-Mobile 21 Tory Burch 48 Puma 75 Topshop 102 Lancome 129 Ikea 22 Clarins 49 Selfridges 76 Esprit 103 Office Depot 130 O2 23 Auchan 50 Tiffany & Co. 77 American Apparel 104 Very 24 Adidas 51 Celio 78 Barneys 105 VentePrivee 25 Sears 52 Mac 79 Costco 106 Quicksilver 26 Asos 53 Marc Jacobs 80 Vestiaire Collective 107 Carrefour 27 H&M 54 Darty 81 Moda Operandi 108 Verizon


eShopper Index ®

Executive summary What the Top 20 says

§  The best bricks & clicks have caught up and even surpassed the pure players: ü  75% of the top 20, and 79% of all analyzed

companies

TOP 20

1 11

2 12

3 13

4 14

5 15

6 16

7 17

8 18

9 19

10 20 §  The performance of European companies is neither better nor worse than that of American companies

§  The Fashion sector emerges as the winner followed by the Multi-sector players ü  Fashion: 50% of the Top 20 for 31% of all

analyzed companies

ü  Only 1 company in luxury and 2 in perfume and cosmetics

ü  Multi-sector: 25% of the top 20 for only 10% of analyzed companies


eShopper Index ®

OmniChannel ranking

OmniChannel Top 10 1

2

3

4

5

6

7

8

9

10

§  50% are European, 50% American

§  80% are retailers/ 20% are brands

§  60% are in Consumer Electronics and multi-sector


eShopper Index ®

OMNICHANNEL Key figures

69%

31%

% of players with stores or showrooms that set up at least one OmniChannel service*

Minimum one main omnichannel service

No omnichanel services

* At least Pick-up in store or Return in store or Connected device(s) in store


eShopper Index ®


0%

20%

40%

60% 54%

40% 36% 36%

25%

20% 18%

6% 3%

Main OmniChannel services implemented


eShopper Index ®


0%

10%

20%

30%

40%

50%

60%

70% 63%

30% 37%

36%

26% 23%

17%

13%

2%

46% 48%

36% 36%

25%

17% 18%

0% 4%

Main OmniChannel services implemented by region

USA

EUROPE


eShopper Index ®

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% 100%

75%

32%

83%

50%

16%

67%

100%

8% 14%

50%

40%

80%

100%

64% 67%

100%

37%

89%

67%

33% 29%

20%

54%

Pick up in store vs Return in store by sector

Pick up in store

Return in store



eShopper Index ®

OMNICHANNEL Observations, Benefits and Recommendations

Observations: §  Companies with physical and online presence should implement a clear

OmniChanel strategy all along eShopper journey to leverage their presence and benefit from competitive advantages

§  OmniChanel strategy will benefit to both the eStore and physical stores through driving traffic, increase frequency of contact, and maximise customer intimacy

§  The challenge is to implement the process and train sales staff to respond to customer expectation by providing digital experience

Benefits: §  Increase quality of the customer experience

§  Give new reason to go to stores

§  Increase sales

§  Differentiate from other brands

§  Build customer loyalty

BASICS

§  Buy online and pick up products in store

§  Exchange or return products in store

§  Check products availability in physical store from website

§  Scan barcodes and QR Codes for more information about product (Product Page, comments,..)

§  Localize the nearest store from mobile app

DIFFERENCIATORS §  Book an appointment in store from the site or mobile

for advices §  Reserve product through website to pick up in

physical store (without purchase) §  Find coupons and deals on the website/social pages

to use in physical store §  Use tablet in store to customize product from

website §  Use tablet in store to browse catalogue and order

product for a delivery at home §  Use the mobile application in store for calling a sales

staff, checking availability of product,.. §  Receive deals when near to the store through

mobile application §  Localize the nearest store from mobile app

GOODIES

§  Call Customer Service from mobile app

§  Try product in store through an interactive mirror (Fashion)


eShopper Index ®

MACY’S RICH AND COMPLETE OMNICHANNEL EXPERIENCE Online experience §  Check the availability of product in physical store

§  Book an appointment for exclusive advices

§  Coupons available online and in-store

In-store experience

§  Pick up a product ordered online

§  Return a product ordered online

§  Scan barcodes and QR codes for more information about products or promotions

§  Use the mobile application in store for deals and promotions

§  Use tablets in store to check availability of products (with sales staff)

OMNICHANNEL Best Practices


eShopper Index ®


DARTY DIGITAL SHOPPING EXPERIENCE IN STORE Online experience §  Check the availability of product in physical store In-store experience §  Scan a product in store for more information through mobile

app (bar code and QR code)

§  Pick up a product ordered online (4hrs after purchase)


§  Free wi-fi to avoid 3G/4G issues with mobile

§  Use the touch screen in store to browse products or to call someone from the sales staff for help

§  Call the After sales service for help from the mobile app


eShopper Index ®


BURBERRY IMMERSIVE BRAND EXPERIENCE COMBINING THE BEST OF ONLINE & OFFLINE ENVIRONNEMENT Combination of online and offline environments: Burberry.com and Burberry’s stores Online experience §  Possibility to book an appointment for shopping advice

In-store experience (London flagship) §  Presence of personalized screens through interactive

mirrors.

§  Possibility to manipulate reality by experiencing products physically and virtually at the same time

§  Shop through a connected tablet with sales staff help

§  Watch through tablet how each product is made

§  Presence of a digital wall pulsating with content, alternating between live runway feeds, audiovisual content, mirrors and ads


eShopper Index ®

JOHN LEWIS VIRTUAL SHOPPING AND MIRROR FOR A NEW EXPERIENCE Possibility to: §  Try products through virtual mirrors. Customers can

create complete outfits selected from johnlewis.com. This makes the shopping experience more enjoyable by letting customers see how they look without getting undressed

§  Purchase by scanning QR codes of products displayed on the shop window and buy these from the mobile website



eShopper Index ®

TOPSHOP ONLINE AND OFFLINE OMNICHANNEL EXPERIENCE Online experience §  Book a free appointment with a stylist in store

In-store experience

§  Pick up a product ordered online


§  Scan product barcodes in store to save to Notebook, share with friends, or check stock in another store

§  Scan Topshop QR codes for exclusive content



eShopper Index ®


AMERICAN APPAREL MOBILE EXPERIENCE IN STORE §  Receive deals, offers and product notifications walking

into any American apparel retail store with the mobile application

§  Augmented reality experience by scanning images and

product barcodes around the store to see full outfits, color lines, videos, slideshows, and ways to wear then share favorites with friends

§  Access to LeClub account at retail stores for a faster shopping experience, all while acquiring loyalty points


eShopper Index ®

Contacts

PARIS OFFICE Christophe Biget Partner +33 1 70 08 06 60 [email protected] @cbiget

SAN FRANCISCO OFFICE Aurelia Ammour Partner +1 (415) 315-9654 [email protected] @aammour

www.iventures-consulting.com @iventuresC