The OMNI Channel

What is omni-channel?
Smooth transition between all the channels that is being operated by the retailer; Knowing everything about each channel (channels will work from the same database of products, prices, promos etc., channel transparency)
Consumers will interact with “______” NOT “________”
brands; channels
Single channel, multi-channel to:
cross channel, omni channel
def. Omni-channel
experiential in nature; how do the customers feel?
def. multi channel
transactional; how customers pay and take delivery
def. single channel
informational, consumers knew about your brand
What does Omni-Channel means for Retailers For merchandising and marketing?
Customer-centric, Important to track customer movement across channels, Merchandising organizations cannot be channel specific; Includes offers that are relevant to the specific consumer, Relevancy determined by website visits, social network affinities, age, interests and other purchases.
What does Omni-Channel means for Retailers?for Supply Chain/ Logistics and Store Operations
Omni channel fulfillment needs to be profitable, Retailers cannot maintain separate inventory for different channel, Inventory has to be a “shared asset”;Stores aren’t going away,Employees need to be knowledgable, Stores become an extension of the supply chain
What does Omni-Channel means for Retailers?for Product Development and Sourcing Managers
Continued emphasis on private label BUT…. movement of production further and further will not work anymore
What are some trends in Omni Channel?
• Making use of Social Media
• Integrating customer reviews
• Use digital means to personalize physical shopping
• Technological advance in stores
• Merging social and local
• The evolution towards an integrated physical, digital, mobile and social shopping experience is starting
What is Omni-integrated?
Understanding Omni-channel shopper, Conquered multichannel business strategies, Implemented multichannel systems integration, Engaged in email marketing, Move to mobile marketing, Active in social media
Refining strategies and innovating constantly
Advanced?
Moving in multi-channel, Playing with social media, Evaluating mobile
Novices?
Multi-channel is a priority, Launching email marketing, Social media and mobile are couple of years away
What is multi-channel retailing?
It is a B2C model integrating stores, direct marketing and online.; ex. stores, catalog, internet
What are some Organizational Structures?
Pure play like Amazon + Expedia, Dual Channel like Target, and Multi channel retailers like JC Penny, electronic spin offs like infomercials
Reasons for multi-channel approach?
Reach more customers, changing consumer behavior;Customer Convenience, Compete more effectively, Grow the Business, Balance Risk, Achieve profitability, Expand globally
What are some online strategies to reach the consumer?
Push and pull strategies (Pull is better), Merchandise/Travel and Tourism Preferences, Shopping options like malls, Online auctions like Ebay, Comparison shopping sites like Kayak
What are some tactics and concerns?
Optimizing search engine efficiency, Increasing conversion rate, Reducing shopping cart abandonment , Customer Privacy, Updating Websites, Improving customer service
Five Steps to Enable Profitable Multichannel Retail are:
Consolidate cross-channel supply chain management by Planning and execution, Consolidate assortment planning across channels, Restore “fun” to shopping, Deliver relevant personalized offers in real time, Enable real-time business decision support capabilities
More steps to enable profitable multi-channel retail:
Online customer support , Use social networking tool To empower consumer analytics, Enable targeted promotions, Assortment planning and new product developments, Customer feedback
The “omni-channel” shopper is an evolution of the multi-channel consumer. This shopper wants to use all channels — _____, _______ call center, ___ and _______ — simultaneously.
store, catalog, Web, and Mobile
What are the 3 types of Omni channel consumers?
The Omni/integrated, The Young Mobile, The Social Networker
def. The Omni/Integrated
30 to 50 yrs. old, Affluent and very “connected”
def. The Young Mobile
People under 30, World is wrapped in texting
def. The social networker
Group trends to be young, but isn’t exclusively so, Tying into affinities around events or group activities
Major Shifts in Consumer Behavior:
The value/price equation, Unrestrained choices, Control factor, Perception of time, The technology revolution, “Choice Generation”
def. Choice Generation
groups based on choices they make
Customer Expectations in a multi-channel world:
Price and value commitment, Integrated service, Cross Channel Shopping, Customization, Secure systems and payment options, Communication through email, chat services, social networking abilities
How to Implementing Multi-channel Strategies:
Enabling technologies, Expansion, Brand building, Marketing and communication, Cannibalization