Criteo - Omnichannel

Sources

1 http://multichannelmerchant.com/blog/creating-customer-centricity-in-2017-omnichannel-marketing-andmobile/ 2 https://www.salsify.com/blog/the-rising-tide-of-digital-influence-in-the-store 3 Based on a HBR study of the shopping behavior of 46,000+ customers who made a purchase from June 2015 to August 2016 https://hbr.org/2017/01/a-study-of-46000-shoppers-shows-that-omnichannel-retailing-works

Sources +

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Congratulations! You’ve mastered the basics of omnichannel marketing.

Decathlon S.A.’s story shows a successful expansion from ecommerce to bricks-and-mortar. When Decathlon opened its flagship store in Singapore, it was designed to mesh tightly with its ecommerce experience. The store uses radio-frequency identification technology (RFID) to automatically identify and track products and have them sent directly to a shopper’s virtual cart so that no scanning is necessary at checkout. Everyone who purchases – either online or at an offline location – is automatically signed up for an online loyalty program, which helps Decathlon track shoppers as they move across channels and devices. Decathlon also took their omnichannel strategy to the streets, partnering with local sports clubs to connect with potential customers and drive foot traffic to the store.

Sephora is a great example of a brand that is using digital to make its physical stores more exciting. With its “My Beauty Bag” app and web account, the cosmetics outlet allows customers to view their shopping history, track rewards, and purchase items or save them to a convenient shopping list of products — perfect for checking off in-store or on the web. Their in-person beauty workshops — where shoppers can get complimentary makeovers from expert stylists and utilize touchscreens to test foundations, concealer, perfume and more, right there in the store — is another fun, interactive way that Sephora is blurring the digital/physical line.

Uniqlo has a history of omnichannel excellence. Among the first fashion brands to offer in-store touchscreens that make it easy for shoppers to share outfits on social media, today the Japanese retailer features savvy innovations across touchpoints. Once signed into Uniqlo’s app, shoppers can view their purchase history, check out personalized suggestions for matching products, and confirm availability online or pickup them up at a brick-and-mortar location nearby. The global company even has plans to install vending machines, stocked with its premium t-shirts and jackets, in airports and malls around the world. Whether on web, mobile, in-real-life stores or flight terminals, Uniqlo’s omnichannel approach seamlessly connects the physical to digital experience so shoppers can buy what, when, and where they want.

One of the best ways to understand omnichannel marketing is to look at real-world examples. Here’s what a few of the top omnichannel retailers are doing today:

Omnichannel Marketing in Real Life

interactive experience. Take for example Neiman Marcus, which uses a “Magic Mirror” in its stores to allow customers to compare outfits they’ve tried on side-by-side. They can get a full 360-degree view of themselves in the attire, or share it to social media to get feedback on which is most flattering. Incorporating new technologies into stores can make the shopping experience more enjoyable, and ultimately, get more consumers off the tablet and through the door.

Omnichannel businesses utilize their physical operations as traditional stores, but also in less obvious ways — as showrooms for digital sales, as shipping centers, or as a blended digital-physical

Get physical

In a well-managed omnichannel approach, data is constantly collected in an effort to learn and adapt to a customer’s shopping habits, even down to when, where, and how they’re most likely to shop. All of this information can be used to generate content that actually matters to the consumer, when it matters most. Like a well-timed coupon for ink cartridges just when your printer is about to run out of ink, or an email with a list of other titles by an author whose book you just bought. Retailers can even use geo-targeting to send coupons when you’re in the vicinity of a physical store: Sonos anyone?

Generate relevant, compelling, and timely communications

all channels. And 50 percent of consumers want retailers to use their personal information to coordinate a better overall shopping experience. If you're using a mobile browser or app to search for and buy products consistently, like Jack, the company can learn from your habit. Instead of serving a promotion for a new TV, they can cater to Jack’s preferences by promoting something he’s more likely to consider, like other music- related items.

According to the seventh annual Personalization Consumer Survey conducted by e-tailing.com, 53 percent of consumers say it’s important that retailers recognize them as the same person across

Cater to preferences

“bonus points days” or other occasions can lead to double or triple points — handy for cashing in on rewards like discounts or freebies. Did you enter your birthday? Chances are, you’ll be getting a delightful something or other near your special day. By encouraging customers to sign up for programs and apps, retailers form a stronger bond with shoppers and are also able to track and connect their interactions, which can lead to a more personalized customer experience.

Many successful omnichannel retailers rely on rewards or member programs to incentivize brand loyalty, where shoppers earn points for every transaction, both online and in store. Shopping on designated

Incentivize loyalty

Click to learn more

Armed with information on shopping history, social media habits, and even geo-location, retailers can personalize experiences better than ever before. Here are four ways top brands are using an omnichannel approach to meaningfully connect with shoppers online and in-real-life.

4 Ways to Put Omnichannel to Work for You

Omnichannel requires cooperation and information sharing between many different areas within an organization. Breaking down the silos and encouraging this information flow can be challenging, particularly for large or long established corporations where the silo model is deeply embedded. Competition between digital teams and store teams for sales and marketing dollars can also be problematic.

Most marketers today are dealing with legacy systems that don’t play nice with other technologies and data assets. In a recent study, marketers cited data management, deeper integration of marketing technologies and a need for systems to match audience profiles across channels as important items to advance their omnichannel efforts.

The key to a shopper-centric strategy is data – lots of it. Many retailers simply don’t know enough about their customers. Many also struggle to recognize individual shoppers across channels.

Organizational silos +

Technology integration issues +

Lack of data +

There are challenges to adopting a full-fledged omnichannel strategy today. A few of the main obstacles that companies run into include:

Omnichannel Marketing Challenges

Retailers that are embracing omnichannel aren’t just getting by, they’re thriving. Just look at the success of Amazon’s brick-and-mortar stores. Physical stores that are succeeding are shifting their approach based on digital’s influence. Forward thinking retailers are reimagining their stores and offering a more interactive, more personalized experience where shopping can be fun and social. Others are using their locations more like showrooms for digital sales, as shipping centers for online orders or in support of the BOPUS (buy online pick up in store) trend.

It’s keeping brick-and-mortar business relevant.

Shoppers want to feel recognized, at-home and welcome, no matter how they interact with a retailer. They want their preferences remembered and catered to, and they expect the same treatment on each channel. Today’s shoppers want a stress-free and efficient shopping experience. Think: Jack, being able to order his gift through the mobile app and pick it up in the store later, or pre-selecting items to try on in the store ahead of time. Put simply, they want a great experience and an easy path to purchase that only omnichannel can deliver.

It’s the only way to do 1:1 marketing right.

Today’s consumers are omnishoppers, omnivores of retail. According to a recent survey by BigCommerce.com, 67% of millennials and 56% of Gen Xers prefer to search and purchase online. And according to Forrester, $1.5 trillion in retail sales begin online and end in-store. Shoppers aren’t loyal to particular channels or companies anymore, with many shoppers switching from mobile to tablet to storefront all while making the same purchase. In today’s market, to earn loyalty, retailers must focus more on the customer experience than ever before.

It’s symbiotic with today’s cross-channel shopping habits.

The International Council of Shopping Centers

of shoppers plan to use a BOPUS (buy online, pick up in store) option, up from 32% in 2015.

Where there’s smoke, there’s fire. The amount of conversation around omnichannel belies its importance. It isn’t a here today, gone tomorrow trend, but a necessary next step in the evolution of marketing. In short, omnichannel marketing is not a nice-to-have, but a must-have if you want to compete. Here’s why:

Why Omnichannel Marketing is Here to Stay.

05 Click-and-ship She opts to “Click-and-Ship” on her phone.

04 Showrooming Ariana visits the store from the Promoted Pin, and chooses a gift.

03 Promoted Pin She likes what she sees in a Promoted Pin, but needs to see it in person.

02 Pinterest Ariana searches for wall art on Pinterest.

01 Blank Wall Sara’s blank wall behind the armchair gives Ariana a gift idea.

05 Click-and-ship

04 Showrooming

03 Promoted Pin

02 Pinterest

01 Blank Wall

Ariana

Back

Let's follow Ariana's omnichannel journey to purchase the wall décor.

She’s borderline obsessed with Houzz and Pinterest, and her apartment looks like a Dwell magazine spread. Every time she’s at Sara’s place, the blank wall behind the armchair stares at her. Ariana decides that for Sara’s birthday, she’ll find something to spruce up that wall. She opens Pinterest on her iPad and starts browsing. A promoted pin for some cool wall décor ideas catches her eye.

Ariana is an aspiring interior designer in her off time.

06 Digital Meets Physical David checks out at the store, and scans his mobile app for discounts.

05 Mobile App David uses the store’s mobile app while in the store to search for deals.

04 Brick-and-Mortar David takes a trip to the store.

03 Google Shopping A Google Shopping ad shows David the game he wants is available at a store nearby.

02 Google Search David searches for party game ideas on Google.

01 Party Planning David is putting together Sara’s 29th birthday party.

06 Digital Meets Physical

05 Mobile App

04 Brick-and-Mortar

03 Google Shopping

02 Google Search

01 Party Planning

coupon code

David

Continue on to Arianas's Shopper Story

Let's follow David's omnichannel journey to purchase the game.

David is looking for a game to have on hand as a plan B, just in case the party hits a lull. A Google search for “party games” eventually leads him to a music trivia game. Another search shows Google Shopping ads where he can purchase the trivia game, including an ad from a retailer showing that the game is available at a store near his house. Since he has to buy other supplies anyway, he decides this store is the place.

Meet David. Sara's husband and intrepid party planner.

06 Reap the Rewards Kate uses her loyalty rewards points for the purchase, and earns more for next time.

05 Mobile Purchase Kate buys the clothes on her phone.

04 Facebook Ad While Facebooking on her phone, Kate sees an ad from the store and clicks on it.

03 Online Shopping Kate visits the website of the store that sent her the email and puts items in the cart, but doesn’t checkout.

02 Birthday Alert Kate remembers it’s her friend Sara’s birthday soon.

01 Email Offer Kate gets an email from her favorite store with special offers.

06 Reap the Rewards

05 Mobile Purchase

04 Facebook Ad

03 Online Shopping

02 Birthday Alert

01 Email Offer

Kate

Continue on to David's Shopper Story

Let's follow Kate's omnichannel journey to purchase the clothes.

Since they were in college, they’ve made a point of seeing at least one live show together every year. Kate hadn’t thought about a gift for Sara’s birthday until the email from her favorite department store with special offers showed up. As luck would have it, the store just rolled out a special collection of retro concert t-shirts. It’s too perfect to pass up, and Kate is a rewards member...

Kate and Sara are concert buddies.

THANK YOUFOR YOUR PURCHASE

06 Click-and-collect Jack buys the record player through the app and opts to pick it up in the store on the way to the birthday party.

05 App Offer While on an app on his phone the next day, Jack sees an ad from the retailer with a special offer on the record player.

04 Online Shopping Jack finds a record player he likes and puts it in the cart, but doesn’t complete the purchase.

03 Analog vs. Digital Jack recalls a debate he had with Sara about this and decides to get her a Bluetooth record player.

02 Google Search Jack starts to look for gift ideas.

01 Phone Alert Sara's birthday is in 2 days.

06 Click-and-collect

05 App Offer

04 Online Shopping

03 Analog vs. Digital

02 Google Search

01 Phone Alert

Jack

Continue on to Kate's Shopper Story

Rollover each icon to follow Jack's omnichannel journey to purchase the record player.

David Bowie: yes. Mumford and Sons: no. Classic Country: yes. Cross-over Country: no. Analog: yes. Digital: no Jack’s friend, Sara, is having a birthday party in a few days, and he needs to find a gift ASAP. Recalling the debate they just had about the incomparable sound of vinyl vs. the convenience of digital, Jack decides to get Sara the best of both worlds – a Bluetooth record player.

Jack is an opinionated music lover.

Ariana

David

Kate

Jack

A Shopper's Story

At all levels, omnichannel marketing isn’t just about integrating the customer facing channels, but the internal departments as well. A well-executed omnichannel strategy requires information sharing and a seamless process between company departments such as marketing, support, product, and customer service.

Both inside and out

Marketers at this level are tying all of it together, including digital, mobile, broadcast, print, call centers, and brick-and-mortar stores.

Putting all of it together

Marketers at this level are connecting some of the dots, typically all in the digital space. Think cross-device and cross-platform like integrated display, social, and video campaigns across desktop, tablet, and mobile devices.

Putting some of it together

Harvard Business Review³

The more channels customers use, the more valuable they are. After controlling for shopping experience, they spent an average of 4% more on every shopping occasion in the store and 10% more online than single-channel customers.

Click each step to learn more

A full-fledged omnichannel strategy takes some doing. Marketers today are adopting it at different levels, depending on their unique challenges and capabilities:

Levels of omnichannel marketing.

According to a report by customer intelligence consulting firm Walker, by 2020, customer experience will overtake price and product as the key brand differentiator. The more you can customize each shoppers’ experience and shepherd them through their journey, the more likely they will be to convert.

The shirt you looked at on your laptop is the same one you saw an ad for while Facebooking on your phone and is the same one you received an email about when it went on sale two days later. The message is consistent, device agnostic, and most importantly, customized based on your browsing behavior.

Multichannel

Which is what many of today’s retailers employ, operates on several different channels, like social, mobile, direct mail, and a physical location, where each channel is separate and independent from the others. Each one works in a vacuum, essentially, with its own strategy and goals.

mul•ti•chan•nel / mar•ket•ing

omnichannel

Focuses on delivering a consistent, personalized experience for shoppers across all channels and devices, from desktop to mobile, online to offline, and all other touchpoints in between.

omni•chan•nel / mar•ket•ing

omnichannel

Multichannel

Walker Consulting Firm

customer experience will overtake price and product as the key brand differentiator.

2020