In this webinar, you’ll learn methods for merging the physical and digital identities of your customers for an accurate view of behavior across channels, what information is critical to enabling omni-channel success, and how to align marketing with consumer expectations throughout their lifecycle.
1. An AgilOne Academy WEBINAR!
Bridging the Gap Between Online & Offline
ALIGNING YOUR MARKETING TO TODAY’S OMNI-CHANNEL
CONSUMER JOURNEY
Angela Sanfilippo
Chief Evangelist at AgilOne!
Presented by:
4. It starts with the consumer.!
!
!
Gap 1: How consumers interact vs transact. !
5. Omni-channel
Interactions
Where value is created
Omni-channel
Transactions
Where value is captured
How I shop How I buy
Gap 1: Omni-Channel Interactions & Transactions!
6. 6!
95%
of consumers are using
multiple channels to “shop” (1)
93.5%
of total retail sales
come from brick-and-mortar (2)
While consumers engage across channels, they’re still heavily
influenced by traditional retail!
Sources: eBay Enterprise, Omni-channel Insights, April 2014. US Census Total Retail Sales 2014.
66% of customers purchasing online use a physical store before, or after, the transaction.
13. 30%
Locate
a store
25%
Mobile
coupons
Source: Forrester Research, Customer Desires Vs.Retailer Capabilities: Minding The OmniChannel Commerce Gap, 2014.
PwC, The State of Retail 2015. US Census Mobile Commerce Sales, Q4 2014
34%
Research
in-store
38%
Check
inventory
on way
to store
56%
Research
at home
39%
Compare
prices
In-store
How consumers use mobile throughout the purchase journey !
12%
Buy
Research PurchaseStage in purchase journey
%ofconsumers
14. 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4' 14
ShareofretaileCommerceexpenditure
Share of total e-commerce spending on mobile device
in the United States from 2nd quarter 2010 to 3rd quarter 2014
Source: comScore
Mobile purchases expected to grow from 12% to nearly
50% of total eCommerce sales by 2018!
16. Consumers prefer credit cards and debit cards
• Only 1% of consumers prefer to pay by phone
• Debit cards (40%), credit cards (40%) and cash (15%)
36% of consumers are wary of having personal
credit information hacked from mobile phone
But still have a way to go!
Source: PwC Total Retail 2014.
17. Direct mail still works!
79%
!
act on direct mail immediately.
33% go online.
73% !
of consumers prefer direct mail
over other advertising
messages.
65% !
purchase as a result of a direct
mail message.
Direct mail is
preferred over
other advertising
It’s effective at
driving sales
Consumers
remain responsive
18. PwC Global Total Retail Survey 2015!
http://ow.ly/KLu6r
More consumer shopping preferences by 11 retail sub-categories!
19. !
The Store of the Future Happening Now!
Richer Clienteling
Powered By Data!
!
Changing Retail
Formats!
!
Direct Marketing
Gets Back to Basics!
!
Interactive &
Connected!
!
22. Clienteling gets a digital upgrade!
“Endless Aisle allows our associates to
provide additional options for customers
who are interested in products that are out
of stock or only available online. It is a
valuable service that widens the selection
of products available and provides the
convenience of having purchases sent
directly to consumers’ homes.”
Rafeh Masood, vice president of customer
innovation technology at Dick’s Sporting
Goods
Dick’s Sporting Goods eCommerce
sales reach nearly 15% of total
sales in Q4 2014 by equipping its sales
associates with mobile devices for easy
ordering in any aisle.
23. Bonobos opens eCommerce showroom. Consumers try
and buy in-store with home delivery.!
Amazon first physical stores allows students to order online
and pick-up in store with free 1-day shipping. !
Retail form meets function!
24. Jan 2015: IKEA opens 10 microstores in
Canada to address the 73% of Canadians
who want the option to pick up in-store.!
Walmart micro-stores are located either in
rural areas too small to support a big box,
or in urban areas too small to fit one.!
The move towards micro-stores!
26. Retail gets back to basics with direct marketing!
mailings grew in 2013 for the first time in six years to 11.9 billion
!
• 'Big Book' catalog returns after being phased
out in 2009;70 more catalogs phased out in
2010. !
• Data shows that many of its online sales were
driven by what the shoppers saw in print!
• 120-page book will be sent to select customers
and highlights home department!
JC Penney’s 2009 Big Book!
27. 17 pounds, 13 “sourcebooks” and 3,300
pages of “curated and inspired design”!
!
Restoration Hardware’s bold move!
28. !
Place the printed catalogue where you want to
put the furniture, choose a product and see
how it looks. !
Scan selected pages in the catalog app or by the digital
catalog from your smartphone or tablet. !
IKEA integrates augmented reality into the catalog!
30. Gap 2: The data divide!
Personalization
drives customers to
spend more, more
frequently!
Loyalty wanes
without it!
Valuable customers
get lost in the data!
70%!
!
# of top 10 customers retailers miss
without integrated data!
78% !
!
of consumers are more likely to
be a repeat customer. !
9 in 10 will pay 25% more.!
Source: RightNow Customer Impact Report. AgilOne analysis of over 10M consumers transactions. !
50%!
!
of consumers would consider
abandoning their loyalties to retailers
who don’t deliver relevant offers!
43. 70%!
of customers are!
one and done!
4!
!
Purchase / Pick-up!
Return!
!
!
Discover!
!
!
Research/
Browse!
!
!
Trial!
Post Purchase!Pre-Purchase!
1 2 3 4
!
!
Re-Purchase!
!
!
Loyal!
!
!
At-Risk!
!
!
Lapsed!
6 ^ ! ~
!
!
Experience!
5
Today’s Consumer Purchase Journey!
The retention rate
increases from
30% to 70% between
1X and 2X buyers!
!
Waiting for customers to
lapse lowers reactivation to
about 5% but it's still 10X
cheaper to reactivate than
reacquire!
Goal: Lifetime Value!
57. Identified Opportunities:
• Acquire higher-value customers: Optimize
Adwords using LTV!
!
• Increase AOV: Leverage likelihood to buy to
drive selective and surgical discounting!
• Increase Purchase Frequency: Use historical
purchase frequency to intensify communication
and promotions in critical months to motivate
next purchase!
• Increase Retention: Focus on 1-2x conversion
leveraging product clusters, recommendations,
and likelihood to buy!
• Increase Reactivation: Conduct reactivation
campaigns that take into account product
clusters and discount information!
Next Steps
• Add other opportunities and key
initiatives to list!
• Prioritize list by estimating financial
impact and ease of implementation!
!
• Identify task force!
• Develop timeline!
• Execute!
Impact Ease Priority
Low Medium High!
Acquisition!Growth!Retention!
Dhruv Bhargava !
Expert Services!
Revenue Finder: Start with your data!