Putting the customer first: how House of Fraser reinvented its business core around radically changing shopper demands
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1 Putting the customer first: how House of Fraser reinvented its business core around radically changing shopper demands THE FOUNDATIONS 1
2 ONLINE SALES Online sales (returns adjusted) (1) ( m) and as % of Group sales 2007: Website launched 2008: Concession brand partners progressively added Buy & Collect launched Dedicated distribution centre opened in June Website re-designed / re-launched; enhanced functionality and navigation / search capabilities Today 250 is all about Opportunity Mobile site and App launched Order in store terminals significantly extended across store estate Net Sales ( ) Mix of business (%) FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (FC) Website development strengthened with strong focus on mobile devices e.g. revised checkout and webchat launched Distribution center development completed 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% SEO initiatives delivered Customer service proposition significantly improved driving Buy & Collect growth Automation introduced into distribution centre plus extra racking and picking locations added MVT as part of a structured CRO program Warehouse management system upgraded Touch First website Customer leading delivery proposition improved AWARD WINNING BUSINESS The Innovation Award, The Mobile Award and The Judges Award, Internet Retailing Awards 2015 Retailer of the Year and Mobile Retailer of the Year, Retail Systems 2015 Multichannel Retailer of the Year, BT Retail Week Tech & Ecomm Awards 2015 Multichannel Retailer of the Year, Retail Week Drapers etail Awards 2014 Best Redesign, Retail Week Drapers etail Awards 2014 The Best Use of Mobile Award, Internet Retailing Awards 2014 Digital Launch of the Year, BT Retail Week Technology Awards
3 WHERE WERE WE? Apps Buy & Collect Order in Store Website Tablets Stores Mobile Call Centre WHERE ARE WE GOING? 2bn UK BUSINESS xbn INTERNATIONAL BUSINESS Truly Multi Channel organisation, not just department specialism Seamless and fully personalised customer experience in channels All business availability: ability to fulfil any item, to anyone, from anywhere Technology led business where systems and data are enablers to creativity and innovation 3
4 PROJECT GOLD STRUCTURING THE TEAM FOR CUSTOMER CENTRICITY THE CUSTOMER EXPECTATION CURVE 4
5 PROJECT GOLD A project seeking to understand: 1. Is House of Fraser organisationally ready for massive multi channel growth? 2. What will our business look like when 50% of our sales come from digital channels, in the UK and internationally? PROJECT GOLD Merging the Brand and CRM teams with the Multi Channel team under one Chief Customer Officer role was the 2nd step to ensure: Customer Centric Approach not Channel Centric approach, A focus on customer profitability revenue per customer not revenue per channel Consistency and accessibility of the customer experience We embrace increasingly complex customer behavior: Multiple simultaneous channels used to research, browse & buy 5
6 CUSTOMER FIRST THE CUSTOMER JOURNEY 6
7 NEW STRUCTURE MULTICHANNEL CUSTOMER TEAM Chief Customer Officer Head of Customer Insight Director of Brand And Creative Director of Digital Product Director of Global Multi Channel Trading 7
8 CUSTOMER TEAM VALUES CUSTOMER TEAM VALUES Positivity Respect Accountability Clarity Trust Inspiration Celebrate Educate 8
9 CUSTOMER INSIGHT THE CUSTOMER INSIGHT TEAM CUSTOMER INSIGHT DATA SCIENCE & EXPERIMENTATION STRATEGY ACROSS FULL CUSTOMER JOURNEY TEST & LEARN CUSTOMER INSIGHT DRIVEN CLEAR PRESENTATION OF FINDINGS RECOMMENDATIONS MVT USER RESEARCH SINGLE CUSTOMER VIEW ADVISE TRADING, BRAND, & DIGITAL PRODUCT 9
10 BRAND & CREATIVE THE BRAND AND CREATIVE TEAM BRAND PLANNING ADVERTISING & CONTENT CREATIVE PRODUCTION PR, SOCIAL & EVENTS BIG CAMPAIGN PLANNING HoF BRAND PROPOSITION BRAND & HOUSE BRAND CREATIVE CONSUMER & CORPORATE STRATEGY BRAND & PROMO PLANS /CALENDAR BIG BRAND CREATIVE BRAND FILM & DIGITAL CONTENT DIGITAL CREATIVE & TOUCHPOINTS NATIONAL PR & PUBLICITY HOUSE BRAND DNAs & PROCESS PUBLISHING & DIGITAL CONTENT HOUSE BRAND AND BRAND IMAGERY & USE IN-STORE TOUCHPOINTS SOCIAL MEDIA STRATEGY & PLANS SUPPLIER FUNDING CO-ORDINATION MEDIA PARTNERSHIPS & TIE-UPS PRODUCT & STYLING PHOTOGRAPHY WINDOWS, VISUAL & PACKAGING REGIONAL PR, SOCIAL & EVENTS PLAN DELIVERY & MEASUREMENT MEDIA PLANNING & BUYING CAMPAIGN SUPPORT & CHANGES TRANSLATE TO CHINA 10
11 GLOBAL MULTICHANNEL TRADING THE GLOBAL MULTI CHANNEL TRADING TEAM CATEGORY MGMT TRADING SUPPORT CUSTOMER ACQUISITION SEARCH ENGINE OPTIMISATION CUSTOMER LIFE MANAGEMENT CONTACT CENTRE ONLINE CATEGORY STRATEGY SITE AVAILABILITY /FUNCTIONALITY PAID SEARCH TECHNICAL OPTIMISATION CUSTOMER COMMS CUSTOMER SERVICE RANGE ASSORTMENT SITE PERFORMANCE AFFILIATES & COMPARISON ONSITE CONTENT DEVELOPMENT LOYALTY SALES PLANNING & REFORECASTING PLATFORM MGMT SUPPORT & DEVELOPMENT DISPLAY & REMARKETING POPULARITY, TRUST, AUTHORITY MASTERCARD CREDIT COMPLAINTS MGMT INSEASON TRADING INTERNATIONAL KEYWORD RESEARCH ONLINE AVAILABILITY 11
12 DIGITAL PRODUCT BEST IN CLASS STRUCTURE 12
13 USER CENTRED DESIGN PROCESS Design is based upon an explicit understanding of users, tasks and environments Users are involved throughout design and development Design is driven and refined by user centred evaluation Process is iterative Design addresses the whole User Experience Design team includes multidisciplinary skills and perspectives THE DIGITAL PRODUCT TEAM Digital Product Digital Product Management Customer Experience Project Office 13
14 PRODUCT MANAGEMENT PRODUCT OWNER FIND IT PRODUCT OWNER EVALUATE PRODUCT OWNER BUY IT PRODUCT OWNER RETAIL PRODUCT OWNER MOBILE APPS PRODUCT INFO & FEEDS MY ACCOUNT CHECKOUT & PAYMENT BUY & COLLECT IPHONE APP CONTENT REGISTRATION FULFIMENT & STOCK ORDER IN STORE ANDROID APP SEARCH & NAV RECOGNITION REPORTING ONLINE STORES IPAD APP HOMEPAGE WISH LIST RETURNS BEACONS PLP & PDP BAG CUSTOMER SERVICES WIFI CUSTOMER EXPERIENCE USER INTERFACE USER EXPERIENCE FRONT END DEVELOPMENT VISUAL DESIGN WIREFAMES CODE DESIGN GUIDELINES PROTOYPES PERFORMANCE 14
15 PROJECT OFFICE PROJECT MANAGEMENT BUSINESS ANALYSIS TESTING PROJECT PLAN REQUIREMENTS SCRIPTING COMMS PROCESS FLOWS EXECUTION RESOURCE BUSINESS MODELS REVIEWING OUR PHILOSOPHY 15
16 OUR PHILOSOPHY 1. Customer insight informs our strategy, prioritisation and decision making 2. We will establish a point of difference in all that we do 3. Our brand will always speak with confidence and authority 4. We will be an agile business move quickly, test & learn and fail fast 5. Design for touchable interfaces first but ensure consistency across all channels 1. Customer insight informs our strategy, prioritisation and decision making MVT PROGRAMME 16
17 3. Our brand will always speak with confidence and authority 17
18 4. We will be an agile business move quickly, test & learn and fail fast 5. Design for touchable interfaces first but ensure consistency across all channels 18
19 CUSTOMER TEAM STRATEGY CUSTOMER TEAM STRATEGY 1. Optimisation of the Customer Experience 2. Evolve the Multi Channel business model 3. Establish a sensational brand and raise awareness to drive greater loyalty & new customer acquisition 4. Capture International market share 5. Drive profitability 19
20 1. Optimisation of the customer experience 2. Evolve the Multi Channel business model Average revenue per year Customer split Stores c.2.5x Website c.1.5x 70% (Store-only) Stores Stores + Website + Website + c.6.0x Mobile c.8.0x 25% (Multichannel) 3.1% (Online-only) 20
21 3. Establish a sensational brand to raise awareness 4. Capture International market share 21
22 5. Drive profitability Summary Customer first is easy to say, not so easy to do Start every decision with the customer Organise the business around the customer Walk the walk, not just talk the talk 22
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