The Omnichannel Experience. Jason Allen, VP Multichannel, GameStop Inc.

Transcription

1 The Omnichannel Experience Jason Allen, VP Multichannel, GameStop Inc. 1

2 The Omnichannel Experience Maximize engagement, revenue, and loyalty by offering customers choice and convenience In this session you will learn: Data > Guessing let your customers lead Internal navigation & alignment is critical Focus on delivering measurable results 2

3 About GameStop : $8B 2016: >$1B 2016: $.85B 2016: $.5B Why Omnichannel? Consumer engagement is evolving Identify and prioritize strategic opportunities A unified vision Creates a customer centric strategy 3

4 The Path to Omnichannel GameStop found that three areas were instrumental in evolving our strategy. Customer Data & Analytics Organizational Acceptance & Alignment Delivering Growth & Value Customer Data & Analytics Pre 2010 Fall 2010 Today GameStop lacked customer data and analytics. Insights were guess work. GameStop Launches Power up Rewards Loyalty Program GameStop has a wealth of customer data on our most valuable customers. 46M+ 71% Loyalty Members Worldwide GameStop Loyalty Programs That account for.. of our Business 4

5 Case Study #1 A Focus on Mobile Key Insights Our Customer was already engaging across channels Online is 5% of Sales But 60%+ of Customers Go There to Engage 5% 60% Buy Visit 26% of online Visitors (Non buyers) Buy in Store Within 48 Hours 26% Buy Mobile App Users outperformed our Pro Members Spend More: Trade More: Buy More Pre owned: 81% 53% 79% 5

6 Online influenced in store sales Through Power Up Rewards, we can better understand how customers engage with our online channels to drive in store revenue. Influenced Revenue When a customer engages online with GameStop, then makes a relevant purchase, trade and/or reservation in store within 72 hours of their online visit. Key Insight For every $1 of direct sales online, our online channels are influencing 10X That amount in Stores 6

7 Mobile Opportunity How many people did we have thinking about and working on mobile full time? Gaining Alignment How did we get the organization on board with an investment into a new App? A/B tested our hypothesis and built a business case showing a large return on investment within the first 3 months. Added the incremental revenue and profit to our annual plan to back up the business case. 7

8 Allow me to look up the value of my old games. Simplify tracking my pre orders and reservations. I want to use my phone to hold a product and pick it up in store, but it s too complicated. Make it easy to find the products I m looking for. Delivering Results 180% 460% 5X 415% increase of influenced in store trades increase of influenced in store reservations increase in Pick up at Store requests. Increase in direct revenue growth. Case Study #2 Ship from Store 8

9 Key Insight 66% of our unique SKUs could only be found in stores. Ship from Store Opportunity What if we. 1. Could expose all of that inventory across our various channels, both physical and online? 2. Expand our distribution options beyond our warehouses? 3. Provide closer ship from locations to our consumers, reducing transit times and providing better service? 9

10 Gaining Alignment How did we get the organization to even understand this? We didn t.at first. Quietly launched a small pilot in stores with only bringing in the critical people who could make it happen, and stores received credit for the sales. By the time we introduced the concept to the rest of GameStop, we had a running pilot for 3 months and those stores were outperforming non pilot stores by 15 20%. Alignment came from proof, not from verbal ideation. Ability to redirect orders to a store Unique, in stock available SKUs across all channels Number of distribution points Average transit time to consumer (ground shipping) Delivering Results Before Ship from Store (pre Feb 2016) No 6, Days (from warehouse) After Ship from Store (post Feb 2016) Yes 18, Days (from stores) 10

11 Distribution before Ship from Store Distribution after Ship from Store 11

12 Delivering Results 2016 YTD of our omnichannel revenue is 13% ship from store. of our omnichannel revenue is from cross channel services 66% (web in store, pick up in store, and ship from store.) So How are you thinking about your omnichannel strategies???? 12

13 Common Sense What s right for the customer + What s right for the business Success The sweet spot. Requires discipline and is more difficult to define opportunities that accomplish both. To recap on today s takeaways Understand your Customers Understand your Organization Deliver Measurable Results 13

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