Convergent multi-channel retailing
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Presentation on multi-channel retailing by Venda, the world's largest on-demand ecommerce provider. Processing over $1Bn of transactions annually, its highly flexible convergent cross-channel platform offers retailers the scalability, stability and security for deploying world-class ecommerce sites. With over ten years' experience and a presence in the UK, US and France, Venda helps global retailers increase revenues and deliver a return on investment faster than traditional 'buy and build' methods. Its expertise in multi-channel commerce and knowledge of payment regulations in different countries allows retailers to expand quickly into new markets. As of March 2012, over 100 brands of all sizes use Venda's platform to handle millions of transactions each month. These include Accessorize, Anthropologie, Emma Bridgewater, Jimmy Choo, Paperchase, Royal Doulton, and Clothing at Tesco, BBC and Orange. For further information please visit http://www.venda.com or join the discussion at www.twitter.com/vendauk
![We now live in the age of new retailing, in a
multichannel world…Their high street, their
computer, their smartphone - all these offer
different ways of shopping [for consumers] and
all are converging.
Philip Clarke, Tesco Group CEO. 8 June 2011](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Convergent multi-channel retailing
- 1. Ivor Morgan Head of EMEA Marketing
- 2. We now live in the age of new retailing, in a multichannel world…Their high street, their computer, their smartphone - all these offer different ways of shopping [for consumers] and all are converging. Philip Clarke, Tesco Group CEO. 8 June 2011
- 3. About Venda • The world’s largest on-demand convergent commerce platform for retailers and manufacturers • Cloud-based solution for integrated web, mobile, social, call-centre and store channels • 250 people across three continents help our customers to grow their revenues in the most cost effective way • $1 Billion annual transactions in 2011 and growing
- 4. Venda powers leading multi-channel retailers ROMAN ORIGINALS
- 5. Online retail is changing as customer behaviour is changing
- 6. 12% Clothing and footwear already online UK clothing and footwear market £41Bn in 2011* Online market value £4.8Bn in 2011** Forecast £6.9bn by the end of 2015** Source Verdict Retail * Mintel ** 2011
- 7. No longer a straightforward journey… From this To this Source: New Consumer Behaviours 2010, Krillion & the e-tailing group 2010
- 8. …Consumer behaviour changing … Among cross-channel shoppers 51% want product immediately and 18% believe it is easier to return if purchase is made offline 77% of online shoppers use reviews to make a purchase decision 89% of consumers making in-store purchases research online first Deliver to home is preferred by 25% of offline shoppers Source: New Consumer Behaviours 2010, Krillion & the e-tailing group 2010
- 9. …creating significant opportunities for retailers Multi-channel shoppers spend 50% more than single channel shoppers Satisfied multi-channel users have higher attitudinal loyalty Source: New Consumer Behaviours 2010, Krillion & the e-tailing group 2010
- 10. Customer behaviour is changing…retailers must adapt and invest fast
- 11. …but how? Customers do not distinguish between channels Each channel must operate as part of a chain Deliver “brilliant basics” on each channel • Brand values • Consistent offers, promotions and merchandising • Security • Scalability • Single sign-on • Single view of stock levels
- 12. Mobile
- 13. Mobile Browse, select & find a Store
- 14. Mobile
- 15. In Store In Store Kiosk Web Enabled Store Queuing to make a purchase
- 16. Venda announces LocalPoint Utilise precise Geofences (cell, Wifi and GPS) to monitor shoppers and consumer behaviours Use time and location sensitive messages to drive store traffic Deliver specific promotions based on entry, check-in and exit Use in-store actions to generate analytics to a deeper level
- 17. New In Store Experience Clicking Receiving a Scanning a QR to Call an Store Alert Code offer Expert In Store Kiosk Web Enabled Store Queuing to make Receiving an Checking In Rating Products a purchase Exit Survey at a Sampling Table
- 18. Social • 90% of consumers trust recommendations from people they know (eConsultancy) • 67% of consumers spend more online after getting advice from their online community of friends (Internet Retailer)
- 19. Venda powers leading multi-channel retailers ROMAN ORIGINALS
- 20. For more info Venda Ltd. 101 St Martin's Lane London WC2N 4AZ tel +44 20 7070 7000 fax +44 20 7070 7111 www.venda.com info@venda.com
Editor's Notes
- I’d like today to talk about multi-channel retailing; the challenges that it presents and the rewards available to retailers and eTailerswho successfully address those challenges.
- I’d like to start with a quotation from Phillip Clarke of Tesco which, if you analyse it, contains a lot of great information. There are a few words that I’d like to draw your attention to. The first is multichannel. We do live in a multi-channel world, our own social and work relationships are conducted through multiple channels, we talk about multichannel marketing and we aim to engage with our customers through multiple touch-points.The second most important word to us at Venda is converging. I’m going to explain a lot more about why we believe this word is so important as I go through the presentation but for now, I’ll say that multichannel retailing is not enough; retailers need to develop a strategy that does more than simply pile channel on channel.However, the most important word in this quote is their. “Their high street, their computer, their smartphone”; the essence of this statement is that consumers are driving this change.
- To explain a little more about Venda and our credentials. We have on our platform in excess of 120 brands covering a broad spectrum of retailing and a range of sizes from a few million to multiple billions. Our business model is a cloud-based platform in which innovations that we and our clients create are made available to all our retailers regardless of size. So if you consider our client base and the expertise they represent you can see that we have access to a great deal of data and information.
- In fact, if you look at our client base (this is a sample) you’ll see that all of them are already exploiting multi-channel retailing; some with stores and some without.
- Given that retailing is already starting to move towards multi-channel, what is changing?The answer is that customer behaviour is changing and that is driving the change in the way that retailing and in particular online retailing works.
- The first thing to note is that consumers are driving commerce online. If you look at just one market segment you can see that already online is around 10% of the total value and, according to Mintel it will grow by 25% in the next 4-years. So regardless of the rate at which offline sales grow; online will grow faster as customers change their shopping habits.This means that online is not simply an optional channel; there are very few retailers who do not sell online and a growing number of manufacturers are developing their online channels as a strategic essential.
- Its important to note that this change is being driven not by retailers or etailers but by consumers.The old linear shopping journey is increasingly rare. In its place we are seeing channel hopping as shoppers move from shopping channel to shopping channel as they go through their buying cycle. What starts with a “like” on Facebook, becomes a product view on your website, a search for product reviews on comparison sites, a return visit to your site but this time from a tablet, before it ends up with trip to your store or even an impulsive purchase from a Smartphone during a bus journey home. And to add more complexity, each journey a customer makes is as unique as that shopper. So the new shopping journey looks chaotic to us, but to consumers it makes perfect sense and consumers are starting to demand that their journey is frictionless. They don’t want to see inconsistent offers, find that login is difficult, that you can’t remember their preferences between channels. They simply want to buy from you.
- However, as retailers we know that to achieve the frictionless cross-channel experience you have to have technology like Venda’s that supports it. So is it worth making the investment? We think the potential returns are significant.Your support for multiple channels is mandated by the consumer and they are already used by consumers. Reviews and ratings for example influence 77% of all online shoppers and the eRetailing Group said that they are always consulted by over 60% of frequent online shoppers.Equally the integration between store and online is as important for all shoppers.
- The benefit of satisfying this demand is that you attract a group of higher-spendingcustomers: which means that you increase frequency, improve recency, increase basket sizes and values and engage with a group of consumers that have and express a much greater degree of brand loyalty. In other words the people who are likely to become brand advocates.
- So having said that consumers are driving change, how and where should retailers invest?
- Let’s start with some caveats – customers don’t care about the fact they are using different channels – they are just shopping.You have to create seamlessness between channels, you need to remove friction as shoppers cross channels. So you need to avoid silos of data that can’t workacross channels.You need to focus on what we call brilliant basics first, before you try to get too adventurous. So ensure that your brand values are consistently promoted and delivered upon, that you avoid basic errors such as missing offers, dead promotions and even products that are not available on all your online channels. Ensure that you have security of data and PCI compliant payment processing across all channels and give your customer access to single sign on, including using their social network credentials.
- Its important that we don’t just think of mCommerce as a standalone shopping channel. Large numbers of customers want to visit a store to make the final purchasing decision, so while you can sell entirely on the smartphone, you need to ensure that questions such as “where is my nearest store” and “do they stock this item” are easily answered.
- Remember also that social is mobile. Mostsocial network interactions take place via mobile devices. Add to that the fact that shopping is also social and you can see how important it is that you integrate the social channel and allow shoppers to easily like, tweet and seek and follow the opinions and recommendations of their social network .
- We should also remember that shoppers take the mobile channel in-store with them. At the moment most retailers have a fairly simple integration between the different channels; for example integrating EPOS with eCommerce to order out-of-stock items and arrange home delivery. Some retailers use kiosks in store to extend the shelf and others allow check out using mobile devices and wallets.
- At Venda we are deepening the connection between mobile and store. We are looking to go beyond mCommerce and find a store integration and helping retailers to use customer data to increase the use of mobile devices by their customers and to maximise their mCommerce and mobile marketing investments.
- The result will be a richer integrated instore experience for customers that exploits mobile technology and in many cases re-uses resources and assets you already have in place.
- So to summarise, shoppers are driving multi-channel. They also expect seamlessness between channels and a frictionless shopping journey. To achieve that you have to go beyond multi-channel online retailing and into convergent multichannel commerce. The rewards are there and the Venda platform is there to support you.