Douglas’ Post

🌐 *Omnichannel Strategies: More Than Just a Buzzword in Retail* 🌐 In a world where digital and physical shopping experiences are increasingly intertwined, McKinsey's recent article, "Omnichannel: The path to value," offers critical insights into the intricacies of omnichannel strategies. Here’s a snapshot of what sets successful retailers apart in this domain. 🔍 *Understanding Omnichannel Value Creation* 🔍 The transition to omnichannel is not just about embracing technology; it's about aligning with strategic priorities and customer needs. The pandemic has significantly altered consumer behaviors, making features like online purchase with in-store pickup commonplace. This shift is particularly pronounced among younger consumers who seamlessly blend digital and physical shopping realms. 🚫 *Common Pitfalls in Omnichannel Approaches* 🚫 1. **Lack of Clear Prioritization**: Retailers often scatter their investments across e-commerce, store operations, and tech without a unified vision. 2. **Tech Over Focus on Customer Value**: Innovations like smart mirrors or in-store kiosks can become costly distractions if not grounded in customer needs. 3. **Improper Sequencing of Investments**: Diving headfirst into omnichannel initiatives without a clear strategy can lead to fragmented and value-destroying investments. 🎯 *Choosing the Right Omnichannel Strategy* 🎯 Successful retailers adopt one of three core strategies, each viable for long-term value creation, if executed well: 1. **Commerce**: Focusing on one channel with targeted cross-channel connections. 2. **Personalization**: Tailoring interactions continuously across channels. 3. **Ecosystems**: Extending the brand experience into an always-on platform. 🔑 *Key Steps Towards Effective Omnichannel Execution* 🔑 - Aligning the omnichannel strategy with the brand's strategic and customer goals. - Understanding the foundational elements required for each omnichannel model. - Setting realistic ambitions based on current resources and market position. 🤔 *Reflecting on Your Omnichannel Journey* 🤔 As we navigate the ever-evolving retail landscape, ask yourself: - How does omnichannel strategy align with our brand’s mission and customer expectations? - Are our tech investments adding real customer value? - What steps are we taking to ensure our omnichannel strategy is both effective and sustainable? ✨ *Embracing the Future of Retail* ✨ Omnichannel is not just a survival tactic; it's a strategic imperative for growth. Understanding its nuances and integrating it effectively into your business model can set the stage for long-term success. #OmnichannelStrategy #RetailInnovation #CustomerExperience #DigitalTransformation #McKinseyInsights

➡️ Multichannel vs. Omnichannel 》In 2023, it’s not enough for retailers to have a presence on different channels; they need to be able to sell across all channels seamlessly. To do that, brands need to ensure their content is consistent, compelling, and connected anywhere their audience finds them. 》Multichannel vs. Omnichannel is the difference between just being on different channels and connecting the experiences across those channels. While these concepts aren’t particularly new, what's new and evolving are the experiences their customers want — and expect — in an omnichannel world. ➡️ So what is omnichannel retailing? 》Omnichannel retailing refers to the use of various sales channels – both physical and digital storefronts – to create a unified, seamless brand experience for consumers on any platform at any time. When done effectively, users should be able to move freely from one channel to the next, building a relationship that improves the overall buying experience and encourages brand loyalty. 》Most businesses today use multiple platforms and channels for sales. Brands are spread across websites, social media, print catalogs, and brick-and-mortar stores. 》Since sales on various channels can essentially act independently of one another, if the digital experience isn’t considered holistically, the channels can present a disjointed or inconsistent experience for the consumer. 》Successful omnichannel retailers have figured out how to let customers use any of their channels at any point of the process and have a consistent, seamless experience whether it’s their first interaction or fifteenth. 》For example, an effective omnichannel retailer makes it simple for a consumer to see and like something on social media and then, with just a few clicks, be able to immediately order it. If a customer wants an item that isn’t in stock locally, it should be easy to order online and have it shipped to them directly or to a store for pick up, a concept known as buy online, pick up in-store (BOPIS). 》As a byproduct of the pandemic, BOPIS, along with all e-commerce shopping activity, has gained significant traction faster than originally predicted. And McKinsey reports that 60-70% of consumers are shopping in an omnichannel way, with social media acting as the new “window shopping.” 》Not only are consumers demanding the ability to flow between in-person and online shopping experiences, but optimizing this process is just good for the bottom line. Harvard Business Review notes that “omnichannel is about value addition, not cost reduction . . . Channel extensions that address gaps in the customer’s journey should be the real purpose of omnichannel selling.

The Omnichannel Uplift. It was so interesting to hear the multi-functional perspectives on omnichannel at our Beauty Vibe Panel, in partnership with ILG (International Logistics Group Ltd). Especially given its impact on brand performance. 🛍 Omnichannel brands retain an average of 89% of their customers (vs 33% for single channel businesses) 💳Omnichannel shoppers spend 4% more on every shop 💷 Omnichannel shoppers could be worth up to 30% more to retailers over their lifetime But it’s more than just bottom-line benefits, an omnichannel approach also gives more confidence to investors.  Nnenna O., a beauty investor and investment advisor, explains “One of the things investors hate is risk. If all business comes from one place, it means your business is less resilient and adaptable.” Andy Lightfoot, CEO Space NK notes how channels can impact spending patterns – counterintuitively, the online customer spends more, whilst the instore customer spends more frequently. This highlights the online/offline discover, explore, educate, test and learn journey that so many beauty shoppers take. Tom Ashley, MD of ILG Logistics, discusses the importance of the multi-channel experience in DTC fulfilment, stressing that consumers want choice – offering fast orslow delivery options, or more or less packaging– all based on needs, budget and values. The consumer world has generally become more risk adverse – customers are savvier, ensuring they get the right product at the best price (with the best experience), retailers needmore confidence than ever before in brand performance; and investors are looking for a sure thing and are less likely to make risky bets. Understanding this new customer mindset and meeting their high expectations is central to building a successful brand in today’s market. We are not talking about the future of omnichannel, but the omnichannel future, and the challenges and opportunities of developing a structure that realises the potential of your business.

Omnichannel is changing! Are your omnichannel strategy and operations optimised for the latest online retail customer expectations? Extolla's CEO, Peter Kendall and CCO, David Harrison are making waves in Bali at iMedia Online Retail South East Asia! It has been a great opportunity to connect with forward-thinking retailers who are hungry to stay at the forefront of the ever-evolving omnichannel landscape. Discussions have centred around how retailers cannot only adapt, but thrive by understanding the latest customer trends and behaviour. Some interesting data and research highlighted at the summit included: KEY STATISTICS: 💻 Internet Users Purchasing Online (Aged 16-64) in SEA per Month: 45% visited a brand website 31% followed a brand on a social network 27% visited a brand's social network page Researching Before Purchasing: A whopping 61.7% of internet users in SEA research brands, products, and services before making a purchase (ranking in the top 10 globally!) 💰 Changing Online Spending Habits Post-COVID: Food: +388% Personal and Household: +141% Fashion: +122% Toys/Hobbies/DIY: +182% TRENDS AND CUSTOMER BEHAVIOUR: 🚢 Ship From Store Strategy: A whopping 41% of global shoppers expect goods within 24 hours, making 'ship from store' a vital strategy for retailers to meet these demands. 🛍️ Click and Collect: 31.5% of customers now opt for click and collect shopping 🛒, marking a remarkable increase of 61% from 2021. 🌟 Customer Impact of Omnichannel: - In an uncertain world, e-commerce provides a sense of certainty to shoppers. - Emotional connection with brands is fostered through online shopping experiences. - The concept of 'shoptimism' is emerging - finding moments of joy and optimism through shopping. - Time is currency Extolla's mission is to empower retailers with cutting-edge solutions that make a difference. Whether it's optimising inventory visibility or selecting and implementing the perfect software for your business, we're here to guide you toward success. Is your business thinking of entering the South East Asian market but not sure how to tackle it effectively? Extolla can help with our extensive experience and network of people across the region. Let the team at Extolla streamline your omnichannel operations, enhance profitability and most importantly, elevate customer satisfaction. If you would like a chat with Extolla, please contact us at contact@extolla.com 👏 Thank You, iMedia ORSEA: A big shout-out to iMedia Online Retail South East Asia for hosting such a valuable event that brings together industry minds to foster growth, learning and collaboration. Peter Kendall David Harrison Chris Linden Luke Bruinenberg David Bille #imediaORSEA #omnichannelretail #customersatisfaction #customerexperience #onlineretail #ecommercetrends #supplychainsolutions

Implementing an omnichannel strategy in retail can offer several significant benefits: 👸🏼✅ Enhanced Customer Experience: Omnichannel retail ensures a consistent and seamless shopping experience across various channels, making it more convenient and enjoyable for customers. 🖇️✅ Improved Customer Loyalty: By providing convenience and personalization, omnichannel strategies can increase customer loyalty and encourage repeat business. 💷✅ Increased Sales: Omnichannel shoppers tend to spend more than single-channel shoppers, leading to higher sales and revenue for retailers. 📊✅ Better Inventory Management: With a connected system, retailers can optimize inventory levels across channels, reducing overstock and out-of-stock situations. 👩🏽💻✅ Data-Driven Insights: Omnichannel retail generates valuable customer data that can be used to gain insights into shopping behaviors, preferences, and trends, enabling better decision-making. 🎯✅ Targeted Marketing: Retailers can use customer data to create more personalized marketing campaigns, improving the efficiency of their advertising efforts. ⭐️✅ Better Customer Service: Omnichannel retail enables responsive customer service, including online chat, social media support, and real-time assistance, which can lead to higher customer satisfaction.

Mastering Omnichannel in Consumer Goods - The Five Pillars of Success with a Twist 🌐 **Embracing Omnichannel Strategies in Consumer Goods** 🌐 The consumer goods sector is witnessing a seismic shift towards omnichannel strategies. As highlighted in a recent McKinsey article, this isn't merely a trend, but a complete revolution in how businesses approach the market. To thrive, companies must not only understand but also adeptly implement the five pillars of omnichannel success. Let's delve deeper, adding a crucial sixth element: a unified pricing policy. 1️⃣ **Cross-functional Collaboration**: Success in omnichannel demands an integrated approach, blending insights and expertise from various departments like marketing, supply chain, e-commerce, and IT. 2️⃣ **Omnichannel Strategy**: A deep understanding of customer preferences across channels is essential. Tailoring offerings to meet these preferences ensures that resources are effectively targeted. 3️⃣ **Supply-chain Network**: Optimizing the supply chain for an omnichannel approach requires a balance between efficiency and responsiveness to customer needs. 4️⃣ **Supply-chain Capabilities**: Companies need to develop capabilities that cater to the unique demands of omnichannel, such as advanced analytics for demand forecasting and efficient order management. 5️⃣ **Transition Plan**: Implementing omnichannel strategies requires agility and adaptability. Companies must be prepared to test, learn, and iterate rapidly. 🔑 **The Sixth Pillar - Unified Pricing Policy**: An often-overlooked aspect in the omnichannel puzzle is the importance of a linear pricing policy across channels. Why is this critical? - **Prevents Channel Conflict**: Having different prices across channels can lead to internal competition, where one channel cannibalizes the other. This not only confuses customers but also harms overall brand integrity. - **Ensures Fairness**: Customers expect consistent pricing, whether they shop online or in-store. Discrepancies can lead to dissatisfaction and erode trust in the brand. - **Streamlines Operations**: A unified pricing strategy simplifies inventory and revenue management, making operations more efficient. - **Enhances Data Analysis**: Consistent pricing aids in gathering coherent data across channels, crucial for effective analytics and strategic decisions. In conclusion, while the five pillars of omnichannel success lay a strong foundation, integrating a unified pricing policy as the sixth pillar is paramount. This approach ensures a seamless and harmonious customer experience across all channels, which is essential in today's competitive landscape. #OmnichannelStrategy #ConsumerGoods #DigitalTransformation #UnifiedPricing #RetailInnovation #SupplyChainExcellence #MarketingStrategy

The Omnichannel Uplift It was so interesting to hear the multi-functional perspectives on omnichannel at our Beauty Vibe Panel. Especially given its impact on brand performance: 🔒Omnichannel brands retain an average of 89% of their customers (vs. 33% for single channel businesses) 💳 Omnichannel shoppers spend 4% more on every shop 🛍 Omnichannel shoppers could be worth up to 30% more to retailers over their lifetime But it’s more than just bottom-line benefits: Nnenna O., beauty investor and investment advisor, explains “One of the things investors hate is risk. If all business comes from one place, it means your business is less resilient and adaptable.” Andy Lightfoot, CEO of Space NK notes how channels can impact spending patterns – counterintuitively, the online customer spends more, whilst the instore customer spends more frequently. This highlights the online/offline discover, explore, educate, test and learn journey that so many beauty shoppers take. Tom Ashley, MD of ILG (International Logistics Group), discusses the importance of the multi-channel experience in DTC fulfilment, stressing that consumers want choice – offering fast or slow delivery options, or more or less packaging – all based on needs, budget and values. The consumer world has generally become more risk adverse – customers are savvier, ensuring they get the right product at the best price (with the best experience); retailers need more confidence than ever before in brand performance; and investors are looking for a sure thing and are less likely to make risky bets. Understanding this new customer mindset and meeting their high expectations is central to building a successful brand in today’s market. We are not talking about the future of omnichannel, but the omnichannel future, and the challenges and opportunities of developing a structure that realises the potential of your business. VIBE PARTNERS

WHAT CHANNEL? Uncomplicating Channel in Omnichannel..... We commonly see Channel get mixed up and confused across the board so here is some snackable content to digest. 1. CHANNEL UTILISATION This is an output, for example 'click throughs'. This gives an insight into the volume of connection that specific channel is having among your customer group. This can be used as an end measure or metric to give guidance on ROI etc. Be careful what you do measure as it may not tell the complete picture, click throughs are ok but overall engagement and action beyond the click through is far better. Utilisation is not a surrogate for preference, don't fall into this trap. A customer may have opened 2 of your emails recently, but they could have had 20 F2F calls with your competitors too. 2. CHANNEL ACCEPTANCE This is a customer's willingness to accept engagements in alternative channels when their preferred channel is not available. A great example of this was during COVID when F2F was not an option, customers accepted video or phone even though they were not their first choice. Another good example is a rep with a great customer relationship, where the customer trusts the rep to want to engage with them in channels that are not necessary their preferred ones. There are a lot of customers who do not prefer F2F but will engage select reps more than others in this channel. Rule of thumb, a customers least preferred channel is one they are least likely to accept. 3. CHANNEL PREFERENCE This is the HOLY GRAIL! This is a behavioural trait we all have. Our preferred channel is the one we are most comfortable engaging in. We are at our most relaxed, receptive and therefore more highly engaged. Channel preference is the foundation of omnichannel, understanding your customers channel preference dynamics enables your company's omnichannel strategy. Without these insights you are at risk of flying somewhat blind. For example, sending RTE's or EDM's to customers who have email as their least preferred channel will yield low returns, this tactic could also create an annoyance or negative perception for those customers. On the other hand, sending them to those who have email as their most preferred channel will likely have the opposite effect. The same goes for F2F, Phone, Video etc. Companies leveraging Channel Preference insights at an individual customer level have more facts to hand to direct their omnichannel engagement strategy towards delivering a tangible ROI. They also have the ability to leverage the interplay between a customer's first, second, third and least preferred channels to create longevity of engagements based on a deeper understanding of their customers. If you start with this foundation, you will notice a significant shift in your channel utilisation outputs, more importantly your engagement quality, quantity and business outputs. Getting in tune with your customers is crucial for business success today. #omnichannel #customerexperience