5 Lessons I learned from Digital Transformation

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1 5 Lessons I learned from Digital Transformation John Fisher, Global Head of Industry Marketing, SAP Hybris Feb 8 th, 2018 PUBLIC Partner logo

2 Agenda Introduction Trends Real-life Case Study 5 Learnings Outcomes 2

3 Introduction Former VP, Ecommerce & Digital at Aramark JOHN FISHER, HEAD OF INDUSTRY MARKETING, SAP HYBRIS Implemented: Hybris (B2B & B2C Ecommerce) Salesforce.com (CRM) Manticore (Marketing Automation) Oversaw digital transformation for 5 years 3

4 TRENDS

5 UNDERSTAND CLEAR SHIFT IN BUYER BEHAVIOR Demand for more selfservice capabilities Purchase path not linear Buying landscape has shifted Relevant customer interaction is crucial 62% of B2B buyers request selfservice capabilities Smartphone/tablet adoption has shifted the B2B commerce landscape B2B buyers are browsing and buying on B2C and B2C-like B2B websites Need to address buying behavior and preferences no matter how the customer interfaces, Field Sales or Digitally 5

6 Digitally Empowered Customers Find Their Own Journey 99.73% of online ads are ignored Source: Google 57% Of the buying process is completed before a first interaction with sales Source: Customer Executive board 59% Of B2B buyers don t want to interact with a sales rep Source: Forrester They expect companies to: BE EASY TO DO BUSINESS WITH BE BETTER INFORMED THAN THEY ARE BE ONE STEP AHEAD OF THEM BE PRESENT WHERE THEY HANG OUT EXPECTATIONS HAVE GONE UP! 6

7 Top Drivers of Digtial Transformation Provide better Customer Experience/ Meet customer expectations (74%) Provide a consistent experience across channels (65%) Higher >lifetime value (64%) To drive additional efficiencies and cost savings (60%) 7

8 CASE STUDY

9 $14 Billion Global Food Services Feed 100 Million Fans Office Coffee Service: 1 Billion Cups of Coffee 9

10 Aramark s Refreshments Division 100 Warehouses 100k Customers 10k Products 10

11 40 Years without Change Sales Ordering 9-5 CRM Deliveries Marketing 11

12 Digital Transformation Challenges Create consistent, omni-channel experience across all touchpoints Increase average order size Reduce costs by enabling self-service and reducing 100k+ monthly calls 12

13 THE ROAD TO DIGITAL TRANSFORMATON IS CHALLENGING: 5 Lessons Learned 13

14 1. START WITH THE CUSTOMER!

15 Ecommerce: Selection and Prices are NOT the Most Imporant Transparency of prices Omni-channel experience/ personalized recommendations. 19% 16% lf they have the broadest selection of products or services lf they have consistently lower prices lf they offer multiple payment options lf they offer omnichannel capabilities lf they have excellent customer service and post-purchase support Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 15

16 Businesses are Individuals, too 16

17 UNDERSTAND YOUR CUSTOMER AND PRIORITZE WHAT THEY CARE ABOUT Learning: don t let the organization dictate customer experience 17

18 2. DATA IS THE USER EXPERIENCE!

19 UNDERSTAND DATA READINESS DATA IS THE SILENT KILLER 19

20 On average, companies use 11 siloed channels to conduct business and 15 separate systems to house customer data The Contextual Marketing Imperative, Forrester Oct

21 START DATA CLEANSING PROJECT AHEAD AND OF ANY OTHER PART OF THE PROJECT Learning: if one price is wrong they re all wrong 21

22 3. DON T DIGITIZE WITHOUT TRANSFORMING!

23 DON T JUST DIGITIZE EXISTING PROCESSES + OLD PROCESS NEW TECHNOLOGY = VERY EXPENSIVE OLD PROCESS Learning: Monthly delivery process NOT good enough for today s B2C expectations 23

24 4. ALIGN PRIORITIES!

25 LACK OF ALIGNMENT: INDIVIDUAL & DEPARTMENTAL PRIORITIES Learning: Success of digital transformation should not hurt other priorities (KPIs) 25

26 5. DIGITAL TRANSFORMATION IS REALLY ORGANIZATIONAL TRANSFORMATION!

27 EMPLOYEE RESISTANCE Customers won t go online to order Customers like talking to us Customers are already satisfied with our service It s a system that s designed to eliminate jobs 27

28 SO WHAT S THE PROBLEM? FEAR! I fear I ll lose the relationship with my customers I don t know how to use the website/ online tools I m afraid that customers won t need me anymore I m afraid this system will eliminate my job 28

29 We have met the enemy, and they are us Learning: customer adoption depends on employee adoption 29

30 WEB MOBILE IN STORE/ BRANCH CONTACT CENTER DIGITAL GOODS MARKET- PLACE IOT SOCIAL SMS/ NOTIFICATION SEARCH ADS / SEO DIGITAL ADS PRINT EXPERIENCE MANAGEMENT COMMERCE REVENUE MARKETING SERVICE SALES DATA MANAGEMENT PRODUCT CUSTOMER PLATFORM, INFRASTRUCTURE, INTEGRATION SIMPLIFIED FRONT OFFICE WITH SAP HYBRIS 30

31 Aramark Results 40% Usage 25% Ordering Higher Avgerage Order Value More Satisfied Overall $ Sales $100m Avg Order Value Would Definitely Recommend +15% $60m +10%-15% +10% $25m 6 mos 12 mos 18 mos Non-Ecom Users Ecommerce Customers Non-Ecom Users Ecommerce Customers Omni-Channel Customers 31

32 Results DOUBLED Website Traffic TRIPLED Lead Gen Conversion 600% Increase in Leads 32

33 Thank you. Contact information: John Fisher Global Head of Industry Marketing