The Future of the Buyer Navigating Omnichannel Successfully
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1 The Future of the Buyer Navigating Omnichannel Successfully John Kinsella VP & Sr. Consultant, FitForCommerce AAPEX November 1, 2017 Las Vegas 1
2 2 Do you feel like being a retailer in today s digital world has become an Xtreme sport?
3 Yesterday s Innovations became today s Best Practices. Today s Best Practices will become tomorrow s Table Stakes. 3
4 4 5,300 Digital Solutions 1,400 new in the last year 4 new per day
5 FitForCommerce is a specialized consultancy founded to help online businesses accelerate growth. Trusted advisor to hundreds of global companies. Digital Diligence is a philosophy and our methodology based on an investment and due diligence mindset for decision-making and execution to ensure success. We are the help. Curated digital innovation tracking and applied market advice to businesses in a CDO-on-demand service. Benchmarking of Top 120 Retailers for Omnichannel (Web, Mobile, In- Store) innovation. 5
6 6 Fourth Omnichannel Channel Retail Index
7 Trusted advisors to over 400 brands 7 IRCE Technology Workshop 7
8 Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat. Sun Tzu The Art of War 8
9 9 The Retail Evolution
10 Omnichannel Shoppers are 3-4 X More Valuable 10 Sources: Harvard Business Review, Retail Systems Research, xad
11 Adoption of Omnichannel Fulfillment is Growing Omnichannel Service Offerings 2016 vs 2017 Buy online/return in store 75% 92% Associate look for item online/in another store 66% 61% Display product availability in store online 39% 56% Buy online/pickup in store 33% 41% Filter by store availability online 16% 27% Source: NRF-FFC Omnichannel Retail Index
12 12 Ecommerce Sales Continues to Grow - Auto & Parts on Similar Growth Path
13 Auto and Parts is the 3 rd biggest category in terms of ecommerce sales $48.22 Billion in 2017! 13
14 ecommerce Sales Web-Influenced Sales Matter A Lot Over $2 trillion in retail sales (56%) were influenced by digital devices (before and during in-store visits) in 2016 Digitally-Influenced Retail Sales 14 Source: emarketer
15 Why This Matters to the Auto Industry In the next 5 years ecommerce will make up over 20% of the Auto Aftermarket transactions, over $30B Web-influenced sales will likely exceed this amount in stores! Source: emarketer 15
16 Once Upon A Time Retail Store 16
17 Fast-Forward to Today s Retail Reality Loyalty + Mobile Discover Website Inside Brand Contact Center Consider Social Media Retail Store Select Advertising Purchase Advertising Retail Store Social Media Contact Center Outside Brand Website Mobile + Loyalty 17
18 The Modern Customer Journey Loyalty + Mobile Discover Website Inside Brand Contact Center Consider 1 Social Media 4 Select 3 Retail Store Advertising Purchase Advertising Retail Store Social Media Contact Center Outside Brand Website Mobile + Loyalty 18
19 The Emotional EKG Differentiated experiences meet customer needs in each critical phase to maintain a positive emotional experience and support frictionless commerce DISCOVER CONSIDER SELECT PURCHASE LOYALTY Customer Emotions Advertising Research Social Media Online browse Visit stores Seek advice Refine search Select sizes Read reviews Checkout Payment Pick up in store Write reviews Return to site Advocate Customer progress in all phases and channels 19
20 Challenges for the Auto Aftermarket Industry Commodity products Many consumer options for purchase New competition in digital marketplaces DIY can be challenging Customer is not always loyal 20
21 How Can You Stand Out? Transactional: Frictionless Commerce Site Search and Navigation Ratings & Reviews Store Inventory Integration Mobile Commerce Site Speed Experiential: Customer Engagement Product assortment Loyalty and Pricing Personalize the shopping experience Inspiring and relevant content Become THE destination for products, inspiration, know-how, community 21
22 22 Frictionless Commerce
23 23 Quickly Find Exactly the Right Products
24 24 Tailor the Product Search to Your Vehicle
25 25 Accelerate product search and purchase with multiple relevant filters
26 26 Offer Store Pickup for Faster Service + More Sales
27 Sell More with BOPUIS US Buy Online, Pick Up In-Store (BOPUIS) users who made another purchase while in-store for pickup 27 Source: ChargeItSpot survey, March 2017
28 Mobile Critical in the Shopping Journey Retail Mcommerce Sales US, Adoption of Mobile Best Practices US, Fall % 93% 90% Mobile optimized site Mobile optimized s Saved bag between platforms Source: emarketer 2016 Source: NRF-FFC Omnichannel Retail Index
29 Site Speed: Go Fast or Go Home 27 the average number of third-party applications to provide a richer online experience used by retailers significantly sacrifices site speed. Amount of time that US digital shoppers are willing to wait for website pages to load while shopping 10-20% conversion lift retailer are seeing from implementing site speed optimization tools. Source: Imperva Incapsula: How 5 Seconds Can Make a Better Ecommerce Site, Feb,
30 30 Customer Engagement
31 31 Products! Products! Products!
32 32 Price, Price, Price!
33 33 Personalize the Experience, Improve Conversion
34 34 Become the Destination for Products, Content, Support
35 35 Convert Content to Cash
36 Differentiate Through Support Customer and inventory visibility across entire organization is critical 36
37 B2B Omnichannel Needs Consumers behave like B2C Tiered pricing and promotions Easy order and reorder Order proposal and permissions Payment needs: Terms, purchase orders Delivery and fulfillment speed Shift to mobile 37
38 38 Create a destination for B2B customers
39 39 Our customers are loyal to us right up until the second someone offers them a better service and I love that. It s super-motivating for us. Jeff Bezos, Amazon
40 4 0 The Amazon Factor 53% of Total Retail Ecommerce Sales Growth Attributed to Amazon Success is driven by Selection, Fulfillment, and Brand Relationships The majority of online product searches start at Amazon Amazon Prime 80M members strong Rest of Market 47% Amazon 53% Source: Slice Intelligence, Feb
41 Kick Your Marketplace Strategy Into Gear Calculate marketplace fees versus product GM $ to determine if a product will sell profitably Optimize your product for search on the marketplace: Title, product content, Q&A Encourage reviews for the products. Customers trust products with critical mass. Include supporting content to increase conversion: How-to videos, multiple images, leverage manufacturer product information Bundle products: Recommend companion add-on products to build basket Test marketplace pay per click campaigns, they may work better than our own Use marketplaces for acquisition, then encourage follow up purchases on your own site with product recommendations and promotions 41
42 42 Key Enablers
43 DATA is like a Rock Star. If not managed well, it will trash the place. 43
44 Data Drives Omnichannel Personalization OMNICHANNEL TOUCHPOINTS OMNICHANNEL PERSONALIZATION Customer experience data: Behavior, Preferences, History, Interactions ecommerce Marketing Apps CRM/DMP 3 rd Party POS + Inventory Customer Service OMNICHANNEL DATA 44
45 45 PEOPLE are like the Rock Band. They ll rock or also trash the place.
46 46
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