GETTING TO OMNI CHANNEL
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- Arthur Jenkins
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1 GETTING TO OMNI CHANNEL Our team of experienced professionals with unique specialty knowledge can guide you to achieving your omni channel objectives The only new source of sales growth The biggest opportunity for merchants is to merge digital insights with in store physical experiences. Forbes The best way to connect and bond with customers Modern shoppers want the ability to research, browse, and shop across multiple channels and, in 2015, this trend is only going to get bigger Business2Community Improving the enterprise value of your business with digital and e commerce About half of (new) e commerce sales (go) to retailers with physical stores For omni channel retailers, websites and mobile apps are not just e commerce ordering vehicles, they are front doors to the stores. Harvard Business Review Toronto Montreal Chicago 90 Richmond Street E., Suite de Maisonneuve Boulevard. W., Suite West Hubbard Street, Suite 240 Toronto, ON M5C 1P1 Montréal, QC H3A 3J2 Chicago, IL, Canada Canada United States +1 (416) (514) (312)
2 E commerce is a well established channel Retail e commerce in Canada is a $22 billion industry and is expected to reach upwards of $40 billion in five years. This channel has been propelling almost all of the growth for retailers over the past five years both as a stand alone business and as a supporting channel to retailers store and catalogue businesses. Niche retailers (e.g., Sephora), general merchandisers (e.g., Macy s, Walmart, etc.), and e commerce giants and online pure plays (e.g., Amazon, Alibaba) are all selling and servicing clients online. They do billions a year through their e commerce channel. Shoppers have changed Today s consumer behaviour has changed dramatically because of the internet and online shopping. Today the internet is used by 86% of Canadians. Furthermore, amongst internet users, the majority research/shop multiple channels: 74% webroom (research online and then buy in store) and 63% showroom (research in store and then buy online). To compete successfully, retailers must be present throughout a customer s decision making journey: what items and brands to buy, where to buy them, how to use them, etc. The landscape is in continuous flux. Mobile is used for online research and it continues to gain importance as shoppers switch to smartphones. 79% of Canadians own a cellphone and 55% own a smartphone. A 2014 study found 46% of Canadian smartphone owners checked the price of a product against other retailers on their smartphone while in store. Omni channel Retailing Brick and mortar stores can no longer ignore e commerce. Multi channel retailers cannot ignore the failing single channelcentric approach to retailing. Today it is estimated that over 50% of all retail sales are influenced by the web. Large retailers such as Macy s are investing millions in their omni channel retailing strategy and even small and medium sized enterprises are adopting new omni channel technologies made just for them. With consumers demanding a seamless and consistent experience across both channels and touchpoints and with rivals ramping up (e.g. online retailers and marketplaces such as Alibaba, Etsy, Amazon), a competitive business model is required to survive and thrive! DEFINITION: Omni channel retailing is a strategic and operational model that businesses are adopting to produce a superior customer experience according to the way consumers shop today If your company is not aligning its business model with this new landscape, its ability to compete for customers will be restricted, it will lose customers and market share, and it will become less relevant.
3 Moving to Omni channel with will help manage this business journey for growth This is a general plan on the steps you will need to take. We will start from the place you are at now and work from there. A quick initial review of where you are at, where you would like to be in the future, and where the plan to get to omni channel should start 1. Vision 2. Assessment External Internal We assess your current situation first. For example, if you are in Phase 2 and you already have an e commerce enabled website, we will get you to a cross channel phase (3) and then to omni channel (4) PHASE 1 Current situation Size your market opportunity Assess current situation 3. Test Implementation Base work needed TBD 4. New Customer Journey Stores plus 5. Customer Journey Support PHASE 2 PHASE 3 E commerce website Cross channel We will conduct an internal and external analysis that goes from framing your business market potential to reviewing IT systems, order management, logistics, and more! Competitive analysis Technology (IT), order management, fulfillment E commerce Online (Website and E commerce site) Segment customers Market, store, web, IT, other Pilot test, logistics Online and store YOUR OMNI CHANNEL SUPPORT PLATFORM PHASE 4 Omni channel Consumer behaviour Inventory management, supply chain, IT integration, logistics, returns After your strategy is created we will assist you with implementation of your e commerce site, to integrate across channels and to set up a pilot omni channel operation. Based on the Phase you are in, we will focus on the following channels. Pilot omni channel All touchpoints (incl. mobile) We don t stop there! Post implementation, we can assess and improve each of the below, critical components in the customer journey by providing ongoing support to gain the maximum output. Analysis Organization and people Marketing Stores/physical presence Merchandise categories Services Shipping and returns Supply chain, vendor partners Analytics Special activities
4 Your Advisory Team Coordinator and Strategic Director Suthamie Poologasingham and Bruce Winder Financial Model & Market Sizing Terry Henderson Organization and Strategy Lisa Hutcheson and Okamura Consulting Research and Consumer Behavior JCWG team Information Technology, POS Laurie Zeitz E commerce Platform and Development JCWG and Partners Inventory Management, Merchandising and EDI Laurie Zeitz and Bruce Winder Order Management Laurie Zeitz Analytics Suthamie Poologasingham and Laurie Zeitz Marketing and Social Media John Torella Store Integration JCWG Team and Partners Fulfillment and Logistics Spaide & Kuipers Who We Are With 40 years of unparalleled experience, gives their clients advice and insights that are creative yet prac cal from advisors who are acknowledged industry leaders. As global thought leaders, we serve clients in Canada, USA, Middle East, Russia, North Africa, and Southeast Asia. We serve retailers, shopping centers, urban governments, manufacturers, financial investors, universities, and hospitals. We are part of the EBELTOFT Group an international consortium of retailers who bring expertise and best practices together from around the world. Our clients always gain the best of our local and global knowledge! E commerce and Omni channel Expertise With over three decades of experience, our team provides clients with the following services: E commerce strategic planning Concept evaluation Channel development Business plan development Market research Investor advisory services International market expansion Omni channel gap analysis Omni channel systems and operations Omni channel organizational development
5 E commerce Publications Canadian E tail Report has worked on many e commerce evaluation projects and have been stunned at the lack of publicly available information on e commerce in Canada. While there are multiple sources in the U.S. and U.K. for online customer purchasing habits, any Canadian information deals with only part of the overall online shopping experience., the source of retail information in Canada, has taken this as a challenge and has created the Canadian E tail Report. Our most recent wave of research was completed in November 2014 and our next wave featuring holiday sales will be available next month. Look for news on the report s findings in the upcoming weeks and significant findings on holiday shopping online. Online Shoppers and Buyers White Paper Retailers need to provide an outstanding online shopping experience. For most Canadians, online purchasing is no longer mysterious and, for many, it is the preferred way to shop. This detailed survey, sponsored by Canada Post and conducted by, demonstrates that Canadian online shoppers confidence when buying online has increased and their expectations for a seamless and enjoyable customer experience are higher than ever. The study distinguishes between online shoppers (people who research online only) and online buyers (those who also make purchases), and identifies barriers to online purchasing. Available at: Global Cross channel Retailing Report Cross channel retailing is not a new concept. In the past five to seven years we have observed world class retailers fully embrace their cross channel journey. However, cross channel strategies are poorly understood from senior executives to front line store associates. This study benchmarks cross channel capabilities among leading retailers across 17 countries as a means to assist retailers as they determine their cross channel future. Detailed reporting on Canada is also available; speak to us for details. Available at: Retail 4G From sales and service, to merchandise and design, success in today s ever evolving retail world means getting your business tactics right every time. But with limited time and resources, how do you keep your business moving forward? Our complimentary ebook series, in partnership with the Retail Council of Canada, includes a chapter on e commerce and how to setup and sell online. Available at: 4g ebook# Retail Innovations 10 Retail Innovations is an annual publication featuring the latest global retail trends. This year s edition includes 7 global innovation trends and 60 of the best innovation cases from 21 countries. Available at:
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