THE ECOMMERCE LANDSCAPE

Transcription

1 Welcome to ecom18!

2 THE ECOMMERCE LANDSCAPE Bernardine Wu, CEO, FitForCommerce 2 February 7, 2018 ecom18

3 FitForCommerce Specialized consultancy founded to help businesses accelerate growth by leveraging digital. Trusted advisor to hundreds of retailers. Digital Diligence Our philosophy and methodology based on an investment and due diligence mindset for decision-making to ensure success. We are the help. Curated digital innovation tracking and applied market advice to businesses in a CDO-on-demand service. Official NRF Index Benchmarking of Top 120 Retailers for Web, Mobile, and Store capabilities. 3

4 Trusted Advisor to over 400 Brands 4

5 Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat. Sun Tzu The Art of War 5

6 Do you feel like being a retailer in today s digital marketplace has become an Xtreme sport? 6

7 5300 Digital Solutions, 1400 new in the last year, 4 new per day 7

8 Table Stakes Best Practices Innovation FitForCommerce

9 Digital Galaxy Omnichannel Affiliate Marketing Mobile Click-Recording Web Analytics Fulfillment Logistics Returns Retargeting Comparison Engines Payments Hosting SEO/SEM Marketplaces CMS PIM Facebook Twitter Social Pinterest Instagram YouTube UGC Ratings & Reviews MCP Data WH Site Search ECP OMS DAM CRM Inventory Performance WMS ERP CDN Searchandising Call Center Chat Security PCI Fraud Merchandising CRM Customer Care Customer Satisfaction Measurement Gifting Loyalty Personalization Zoom 360 ecatalog Quick View Rich Internet Apps (RIA) Global FitForCommerce 9

10 LIVE POLL When it comes to leveraging or adopting digital, your organization is most like... A. B. C. D. E. Text FFC817 to to join, then A B C D E to vote 10

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12 COMMERCE Multi-Channel Multiple channels. None, some, or all are integrated. WHOLESALE STORE CATALOG WEB MOBILE SOCIAL Multichannel customers spend 3x a singlechannel customer 12

13 COMMERCE Cross-Channel Engaging in one channel, continuing or finishing in another. WHOLESALE or STORE CATALOG WEB MOBILE SOCIAL Multichannel customers spend 3x a singlechannel customer Catalog to web Mobile to store Store to mobile Store to web Web to store Buy online Pickup in store Buy online Return to store Social to web Web to social Mobile to web Web to mobile Every dollar spent online drives $6 into stores Store to social Social to store Digital engagement in stores can increase store $, overall $ and loyalty 13

14 Omnichannel One brand. Being Customer-Centric. Enabling her discovery, engagement and loyalty. 14

15 Omnichannel drives value across the business Source: Oracle Omnichannel Strategies That Work 15

16 Retailers have to get creative to leverage digital into the online, mobile and physical worlds 89% of consumers want shopping to feel personalized, but only 18% say that retailers are achieving this goal* Beacons and Proximity Marketing will influence more than $40 billion in retail sales in 2016** 16 *Vibe Mobile Platform, TimeTrade; **Business Insider

17 U.S. consumers spent 13% more on retail products outside of stores in Feb 2017 over last year Omnichannel shoppers are more loyal, have bigger shopper baskets, and are 23% more likely to visit a physical store and recommend the brand to friends and family. A top priority this year for a vast majority of merchants. ~69% of global retail executives will increase technology investments. 17 Source: HBR.org

18 Keeping up with customer expectations and demands from the connected customer is the greatest challenge! 48.2% Source: CMO Council / SAP Hybris, June

19 Levering and winning over Digital Natives is a must 59% of millennials say they would spend more if a personal shopper/sales associate offered suggestions* 59% of consumers would be willing to share their online shopping carts with store employees, the number increases to 67% with millennial & Gen Z 19

20 OFFLINE ONLINE Path to Loyalty Awareness Consideration Purchase Service Loyalty 20

21 Customer experience is central to omnichannel growth Omnichannel and Digital Marketing Omnichannel Customer Experience Cross-Channel Enablement Data/Analytics-based Customer segmentation Personalization Single View of the Customer Merchandising Store / Site / Mobile / Social / Wholesale / etc. Experience Content and Context Customer Service Data: Master Data Management, CRM, BI Order Management, Inventory look-up Operations: Ent Inventory, Fulfillment, Store Ops Knowing her interests to prove relevancy. Personalization is the New Omnichannel Knowing her preferences. Helping her find it quickly. Wherever, however, whenever she wants. 21

22 The Disconnect 22 Source: TimeTrade, The State of Retail 2016

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24 Source: NRF-FFC Omnichannel Retail Index

25 Department Stores & Apparel Retailers Lead the Index Department Stores Apparel 82% Top 3 avg scores 71% Top 3 avg scores Source: NRF-FFC Omnichannel Retail Index

26 Room for Improvement Top 10 of 120 leading retailers score between 68-78% Average of all Index retailers increased from 56% in 2016 to 64% in % of the Index scores below 60% Source: NRF-FFC Omnichannel Retail Index

27 Still Unconquered sign-up in Footer 86% sign-up in Header 14% sign-up Pop-up 43% sign-up Incentive online 42% Store Assoc asks for 31% Mobileoptimized s 98% Store can receipt 28% Store incentive to provide 5% Communication Preference Center / Account Settings 60% - Can change frequency 14% product to a friend 43% - Can change type of info rcvd 44% Source: NRF-FFC Omnichannel Retail Index

28 ecommerce best practices are inconsistent Sampling adoption of online best practices Video on product detail pages 21% 33% Online-only stickers 20% 33% Live chat on product detail pages 35% 33% Faceted navigation on category pages 75% 84% Autosuggest/autocomplete for search 78% 81% Source: NRF-FFC Omnichannel Retail Index

29 Social Media basics a given Social media links from website Facebook 89% Twitter 88% YouTube 65% Pinterest 77% Instagram 78% Can like/pin/tweet from PDP Facebook 74% Pinterest 73% Twitter 67% Influencer Marketing User-Generated Content User ratings & reviews 80% User can upload photos 46% User generated Q&A 23% Pull photos from Social Media via hashtags 31% Source: NRF-FFC Omnichannel Retail Index

30 Mobile-First Mobile optimized site 98% Responsive website 52% iphone app 77% Android app 71% ipad app 57% Mobile App Advertised 40% Incentive to download the app 2% MOBILE IN STORE WiFi available 26% Push Notification 6% Beacons 2% Apps can scan products 33% Source: NRF-FFC Omnichannel Retail Index

31 WEB Cross-Channel Product Availability In store 56% Store Availability Sorting/Refining 27% Buy Online Pickup In store 41% Reserve online and Pickup in store 14% Buy Online Return In store 92% STORE Buy in store / ship anywhere 46% Omnichannel Signage Anywhere in the store 40% Associate Tablet/mobile devices 15% QR codes / scannable signage 11% Registration profile (clienteling) 57% Look for item online or in another store 66% Source: NRF-FFC Omnichannel Retail Index

32 59% sell on marketplaces 49% Amazon +14% 17% Overstock +17% 13% ebay +160% 5% Rakuten -29% 32 Source: NRF-FFC Omnichannel Retail Index 2017

33 Data. Data. Data. and Voice 71% marketshare 38% made a purchase 24% 37% 69% of US smartphone owners use voice-enabled technology to conduct online searches, with 53% using voice to find information on products they were interested in. Sources: JWT Innovation, June 2017 emarketer, April 2017 Cowen & Company, January

34 Experiential / Immersive 13% Retailer stores provide some kind of experiential, immersive or unusual experience 34

35 There is no such thing as long-term competitive advantage 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 35

36 THERE IS NO DIGITAL STRATEGY JUST STRATEGY IN A DIGITAL WORLD 36

37 Digital Solutions Decision Tools Should we invest in Digital Technology? YES! Yes, but in Blue 37

38 Resources Best Practices Checklists & Key Questions to Ask Providers Download PDFs: Affiliate Marketing B2B ecommerce Comparison Shopping / Marketplaces Consultancy / Professional Services Content Delivery Networks Content Management Systems CRM Systems Customer Care Customer Satisfaction Measurement Data Mining / Warehousing ecommerce Platforms Enterprise Resource Planning (ERP) Marketing Forecasting Products Gift Card / Certificates International ecommerce Internet Security ISP / Hosting Logistics Loyalty / Promotions Mobile Commerce Multi/Cross/Omni-Channel Online Catalog / Catalog Management Online Customer Support / Demos / Chat Organizational Design Order Management Systems (OMS) Product Content Onboarding/Publishing Payments / Fraud Services Personalization Point of Sale (POS) Product Information Management (PIM) Responsive Design Rich Media Search Engine Marketing (SEM/PPC) Search Engine Optimization (SEO) Shipping Site Search Social Media Web Analytics Web Design / User Experience Website Performance / Monitoring 38

39 Don t be the Ostrich 39

40 Bernardine Wu transformation@fitforcommerce.com 40