omni channel - seamless engagement of customers across all touchpoints
TRANSCRIPT
We make ICT strategies work
Andreas Penkert
Zurich, 14.04.2016
Omni Channel - Seamless engagement
of customers across all touchpoints.
Objectives and Challenges
Why do we leave money on the table?
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Objectives and Challenges
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The opportunity to improve conversion rate, loyalty and customer value is considerable.
CR IMPROVEMENT: At an average, 68% of all customers BURST OFF during an online purchase procedure.
LOYALTY and LEAD MANAGEMENT through channel experience: 70% of customers are attracted by digital channels– independent of age-class,.
CUSTOMER VALUE: Multiple channel shoppers
have a higher ARPU – they spend up to 50%
more money during the digital purchase than
single channel shoppers.
Source: Onlinehaendler.de (Mean value, summarized from 22 studies)
Source: eBay Report „The Omni-Channel Consumer“
Source: Detecon Self –Service Study
Objectives and Challenges
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A majority of customers overall industries still burst off during the digital purchase process before
check-out. Reason: experience does not meet expectations!
Customer Trends Why do 68% customers break off an online purchase?
Source: Consumer study Vouchercloud
90% participants of an Accenture study attest their preference for convenience in purchase processes primarily, even more than the price.
SOURCE: ACCENTURE-STUDY
23% of consumers purchase more items when picking up an online order from stores.
SOURCE: AT KEARNEY
71% of consumersexpect to view in-store inventory online.
SOURCE: FORRESTER
Deviating Terms & Conditions 11%
Issues with registration 29%
Inconsistent Pricing
On-/Offline41%
Delivery costs 44%
Speed or inconvenience
of the portal/process57%
Preferred payment option
not provided59%
Objectives and Challenges
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Consumer increasingly switch between offline and online-channels from research to purchase.
Channel orchestration and interplay are key drivers for loyalty and lead management.
ROPO*-Development Telco-Products (2011-13) Channel Utilization 2012-18
*Research On-/Offline – Purchase On-/Offline
45% 46%
34%19%
18%30%
4% 5%
2011
100
2013
100
Research Shop - Purchase Online
Research Online - Purchase Online
Research Shop - Purchase Shop
Research Online - Purchase Shop
+1
+1
Quelle: German Institute for Retail Reasearch (IFH)
47%
30%
70%
53%
20182012
Digital Channels
Traditionell Channels
Quelle: PWC Multichannel, Gartner Research
Objectives and Challenges
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Customers with multiple channels options spend more money on their purchases than single hannel
users. In this context, channel selection becomes a driver for ARPU increase.
Customer Value
100%
+48%
Bought online,
informed in shop
124%
Bought online,
with additional
online research
117%
Bought online,
meanwhile informed
in shop
101%
Bought in shop,
informed online
before purchase
148%
Bought
online
95%
Bought in shop
Multiple channel purchase
Single channel purchase
Comparison of spendings: Single vs. Multiple channel purchases
Source: eBay Report „The Omni-Channel Consumer“
Question: „How much did you spend on your recent purchase? Prior to purchase, did you do any of the following?”
The Omni Channel Journey
Objectives and Challenges
Creating a seamless “Channel hopping” is a key challenge. Customers want to change between
channels while expecting consistently good quality of service and ease of processing.
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Smart-phone
Call Center
DesktopTablet POS
StatusInformation
Order
TermComparison
ConsultingInformation
ProductSelection
Service
Multi Channel Journey
Omni Channel Journey
Customer expectations:
Today’s customer selects the channel depending on his current situation and preference.
He “hopps” between the channels while expecting consistently good quality of customer contact.
The customer also expects one-time-only data input while changing channels.
After Sales
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Source: Detecon
Omni Channel
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Solution: Omni Channel is a valid approach to fulfill customer expectations and meet the consumer
behaviour trends of the digital age.
Omni Channel
Provide BEST CX
by ENGAGING CUSTOMERS
at all touchpoints along the
entire CUSTOMER JOURNEY
in a CONSISTENT and
SEAMLESS way!
Ensure CONSISTENT
PRICING, PRODUCTS and
CAMPAIGNS along all
CHANNELS!
Source: Detecon
Omni Channel Targets & Impact in General
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The major benefit of Omni Channel is the evolvement of an excellent and consistent customer
experience. Furthermore, the improvement of quantitative and qualitative KPIs.
OMNI-CHANNEL
Seamless shopping and service experience
CUSTOMERSUPPORT
ONLINE/MOBILE
IN-STORE
Lift Customer Experience on the next
level: consistent channel experience
and seamless journeys.
Increase value due to sales push via
lead generation and conversion, higher
ARPU per customer.
Save costs due to intelligent contact
steering and customer education.
Improve Service performance and
quality due to an increase in channel
and process automation.
Accumulate customer insights and information via Customer journey
tracking and analytics.
Source: Detecon Research
Omni Channel Journey
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Omni Channel scenarios actually integrate Online/Mobile, Shops and optionally customer support.
Channels are connected by different capabilities along the entire customer journey.
Cu
sto
me
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upp
ort
Sh
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sO
nlin
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Mo
bile
Awareness & Interest Information & Selection Order & Purchase Delivery & Installation After-sales
Presence with LBS notices and/or on
campaign platforms with triggers
Video-chat with call center agents
Online coupon redemption
T-shop finder & real-time
of store inventories
Click& collect
Appointment for product pick-up and installation in store
incl. tablet-based consulting
Product reviews
Up- & cross-selling (longtail)
Product return
1
2
3
4
5
6
7
8
9
Source: Detecon
Omni Channel Best Practices from International Telcos
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Real life projects from Telcos show how the customer journey can be effectively improved across the
sales cycle through Omni Channel approaches.
Delivery &Installation
Information& Selection
Awareness &Interest
Order &Purchase
Example: Location-based services & information
O2 Telefonica implemented a LBS Coupon App, to allow customers to use discounts at selected local POS
For the rollout, O2 cooperated with more than 30 different partners and provided about 40 various offerings in 3.500 shops.
Example: Prosecution and change of the shoppig cart
In Sprint’s online shop/app, customers can collect products in the virtual shopping cart and use shop finder to choose the next located shop to complete the purchase
Arrived at the store, the customer receives further personal support
Example: Appointments for service support & advisory
Vodafone provides its customers M-queuing solution (Q-Less)
Q-Less allows customers to queue in a “virtual row” and get a signal, when they are on it
Appointments also can be postponed via snoozing
Example: Long-tail & tablet support in stores
In flagship “Destination Stores” Verizon exposes its products in various experience- and topic zones
The staff in the shops provides customers online-support via tablet, based on a system that supports individual recommendations
Source: Detecon Research
Implementation Barriers and Challenges
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Several European Telco operators face several challenges in implementing a holistic Omni Channel
approach, concerning different dimensions.
ROI
Customer Experience
Organization & People
IT
“Measurement of directfinancial impact from OC is challenging“
“ Omni-Channel implementation requireshigh investment in technology, processes and organizational change – no short termbenefit.”
“… collaboration with IT-Department is way to complex. The processes burn resources and time…”
“… selfishness of departmentsinstead of sharing culture…”
“… our employees do not think “OMNI” – or rather holistically across all different customer touch points…”
“… non-standardized products without modularity …”
“… different price policies across customer touch-points…”
“… each channel has it own view on the customer due to disparate data…”
“… siloed IT systems which are neither consolidated nor integrated…”
“… increasing importance of mobile? Our systems are not even a 100 per cent web-capable…”
Source: ETIS Org
Best Practices Cross-Industry
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There is still no existing 100%-OC approach in reality, but selected best use cases of other industries
show how to connect or to integrate prioritized channels.
Disney
Bank of America
Oasis
Starbucks
My Disney Experience tool to plan an entire trip through a Disney Park Destination.
A mobile app to locate the attractions in the park one want to see, as well as view the estimated wait time for each of them.
As one of the biggest brands in their industry, they’re setting the standard for a dynamic experience.
Everything from check depositing to appointment scheduling to be handled by the company’s mobile and desktop apps.
Fashion retailer that’s fusing their ecommerce site, mobile app, and brick-and-mortar stores into a simple shopping experience.
When something is out of stock, the staff can instantly place an online order to have the item shipped directly to the customer.
Unlike traditional customer loyalty programs, Starbucks has made it possible to check and reload free reward cards via phone, website, in-store, or on the app.
Changes to the card or personal profile get updated across all channels, in real-time.
Source: HubSpot
Key Take-Away: Media Markt/Saturn’s Gradual Approach.
Media Markt and Saturn realized quick wins by introducing business guidelines followed by distinct
Omni Channel capability development.
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HeadingApproach
MSH’s approach enables a gradual implementation of OC capabilities alongside quick wins
Constant communication of new capabilities to customers builds a comprehensive brand awareness
A moving target picture is required to ensure the best balance between capabilities and CX improvements
Quick introduction of Omni Channel strategy followed by business guidelines to foster quick wins
Building distinct Omni Channel capabilities based on a new business and IT-architecture
Change business model to enable truly customer centric approach with industry leading capabilities
Lessons learned
Idea in brief
OC TransformationTransformation of Business-
and IT-Architecture
OC Excellence
Truly Customer Centric
Business Model
OC Foundation“Quick-wins” with low
Capex
Define strategy &
business guidelines
e.g. consistent pricing
& content across
channels
Develop distinct OC
capabilities &
customer centric
operating model
e.g. Click & collect,
value added services
Adapt Omni Channel
business model
Implement leading
edge capabilities
e.g. cross channel
personalization,
agile campaigns
Time
Maturity
Source: Detecon Research
Contact
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Andreas PenkertDetecon International GmbH
Sternengasse 14-1650676 Cologne (Germany)Phone: +49 221 9161 1062Mobile: +49 171 4809337e-Mail: [email protected]
Your contact person at Detecon.
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