Value View
The CEO Perspective: Omnicustomer Retailing Catching Up With Customer Expectations Let’s face it. The omnichannel experience is at the core of every retail strategy, and omnicommerce is becoming more and more mainstream. However, it’s not enough for retailers to change their business models as customer expectations are demanding more than what omnicommerce can provide. As a result, the omnicustomer experience is emerging as a new requirement. This strategy offers customers the intimate brand relationship they crave through personalization and approachable brand engagement – whether they are researching a product or making a purchase across multiple devices. Based on the analysis of top food and drug companies in the 2013 NRF list of global retailers, customer expectations are much further ahead of retailer’s realities.
Figure: Customer Expectations – Ahead of Retail Reality Omnicommerce “Make buying easy” “I can choose where and how I buy across all channels.”
Customer Intimacy and Engagement
Omnichannel “Inform me” “I can find information on products and purchase in multiple channels.”
Omnicustomer “Know me, advise me, and let me choose” “My retailer knows my preferences, follows my purchase path, provides valuable advice, and lets me tailor my shopping and delivery experience.”
Customer Expectations Retail Reality
63%
Are omnichannel
27%
Are omnicommerce
10%
Are omnicustomer
Source: SAP Performance Benchmarking – “Outside-In Analysis of 50 Food and Drug Retailers in 2013 NRF Top 250 Global Retailers List”; 20 out of 50 retailers were not considered for analysis because of inability to assess if they were omnichannel from an outside-in perspective.
Leading retailers are providing the omnicustomer experience with the help of today’s technology innovations: •• Know me: Master data management and unified commerce processes provide a single view of customers, products, pricing, and orders across multiple demand and delivery channels. •• Advise me: Real-time data enables retailers to interact with their customers and gather data on shopping behaviors and preferences at every touch point. Personalized and relevant experiences can be delivered by analyzing purchase patterns; customer profile and characteristics; engagement through social media, Web sites, and other mediums. •• Let me choose: Comprehensive commerce processes empower retailers to connect with customers, the supply chain, and the finance organization.
Each approach provides different customer experiences:
Illustrative example*
Omnichannel “Know me”
Omnicommerce “Advise me”
Omnicustomer “Know me, advise me, and let me choose”
Customer
•• View items online or •• Buy online and ship the on a mobile device purchase to your home •• Purchase item through •• Complete order and request multiple channels to pick up the item at the store •• Participate in a •• Pause and resume the shopcoherent customer ping experience at different loyalty program points within channels
•• Receive customer-specific marketing aligned with browsing behavior and purchase history •• Post recipe on social media and receive retailer response •• Load shopping list on smartphone and retailer responds in meaningful way •• Order items through an interactive display •• Receive promotions based on geolocation data •• Start purchase online and complete order on smartphone
* While this is a hypothetical example, customers are experiencing these capabilities today. Turn the page to read how leading companies are providing similar experiences.