Beyond Omni-Channel Retailing

Post on 05-Sep-2014

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At every touchpoint, physical or digital, your customer is forming a single opinion on the value of their experience. As customers don't live in channels, global retailers have started moving beyond Omni-Channel strategies that, in many cases, focused on the channels as an end point rather than providing a true seamless experience. During his Australian Retail Tour, Josh Sigel (former CIO of Natural Markets Food Group) shared how he created ‘Multiplex Retailing’ to improve customer value and sales by revolutionising the way customers buy groceries and cooked meals. Key Takeaways: -Point of Sale is going away and will become a value added Point of Experience -Channel based solutions will be integrated to create Multiplex brand experiences -Embrace Innovation or Face Elimination – Innovation within retail will not be a choice, it will be a necessity in order to survive

Transcript of Beyond Omni-Channel Retailing

Moving From Omni-Channel to the MULTI-PLEX BRAND EXPERIENCE Joshua C. Sigel

SINGLE-CHANNEL

MULTI-CHANNEL

OMNI-CHANNEL

CATALOG

CATALOG

Evolution of the Retail Shopping Experience

MULTIPLEX brand experience

The term Multiplexing originated in telegraphy in the 1870s, and is now widely

applied in communications

Multiplexing is a method by which multiple analog message signals or digital data streams

are combined into one signal over a shared medium. The aim is/was to share an expensive resource.

Today the expensive resource is the customer’s time and attention. The retailer positioned to enable the customer

journey through which ever channels the customer choses whenever the customer wants will win.

CUSTOMER EXPERIENCE

JOURNEY

Awareness

Research & Planning

Selection

Checkout

Acquisition/Delivery

Returns & Refunds

ONLINE E-MAIL SOCIAL IN-STORE MOBILE SUPPORT KIOSK LOGISTICS

CUSTOMER EXPERIENCE

JOURNEY

Awareness

Research & Planning

Selection

Checkout

Acquisition/Delivery

Returns & Refunds

ONLINE E-MAIL SOCIAL IN-STORE MOBILE SUPPORT KIOSK LOGISTICS

CUSTOMER EXPERIENCE

JOURNEY

Awareness

Research & Planning

Selection

Checkout

Acquisition/Delivery

Returns & Refunds

ONLINE E-MAIL SOCIAL IN-STORE MOBILE SUPPORT KIOSK LOGISTICS

MULTIPLEX brand experience

- Traditional Grocery Sales

- Natural / Organic Grocery Sales

Natural / Organic Grocery Sales

Traditional Grocery Sales

“It’s Just a Fad.”

organic growth rate

MORE THAN 2X growth rate for all food

THE NATURAL MARKETS STORY Creating a MultiPlex Channel Brand Experience

- Traditional Grocery Sales

- Natural / Organic Grocery Sales

The total value of the organic industry in Australia is an estimated

$1.27B in 2012

The average growth projection for the coming years is

10-15%

Global organic market sales are

slated to grow at an estimated CAGR of

12.9% to $105B by 2015

- Traditional Grocery Sales

- Natural / Organic Grocery Sales

Existing operating environments and technical infrastructure

Define and gain internal agreement on

what the “to be” is Define and gain agreement on roadmap/development

and deployment plan

OUR CHALLENGES ARE NOT UNIQUE

COMPETITORS TECHNOLOGY

Internal resources/capacity

CULTURE TIME Vendors training Organization

BUDGET

OUR CHALLENGES ARE NOT UNIQUE

Do we look at this as a POS decision?

What about on-line ordering and grocery shopping?

How does mobile come into play?

If we choose a platform that everyone else has deployed how do we create a competitive edge?

How long will it take to make changes?

How expensive will those changes be?

where do we begin?

•  Our own stores •  Competitors stores, online and off •  Other consumer facing businesses •  Past work experience

Observation (The good, the bad and the ugly) 1

experience design process

•  Customers •  Street and analyst community •  Employees

Research 2

experience design process

Identify & Prioritize Customer Segments 3

Create a contextual end-to-end customer journey map for each segment

4

Retail Food Food Service

Guiding Principles

1 platform

create a

JOURNEY

leverage our

smaller size

let history inform

the future,

not drive the it

LET GUESTS CHOOSE

quickly move from

DECISION to

ACTION

Digital Shoppers

Multi-channel buyers

Researchers

Physical store buyers

OUR CUSTOMER

27  

WHERE IT STARTED

in both grocery & restaurant properties

OBSERVATIONS

1 Individuals interested in eating with their colleagues spent the bulk of their time alone

2 Ordering online and take-out, dine-in, or get it delivered 2 Many guests were pressed for time during

peak business hours and wanted good food quickly

SOLUTIONS

1 Flexible POS and Service Design that enabled any item to be ordered from any station and picked up at the express counter.

2 Ordering online and take-out, dine-in, or get it delivered

in both grocery & restaurant properties

OBSERVATIONS

3 Families were in the restaurant together but were not necessarily interested in eating the same food or even eating together

SOLUTIONS

3 Richtree Market Pass – a mobile app with a feature called “grouping” which allowed members of a group to associate themselves together by the head of the group scanning each members Richtree Market Pass QR code

4 Payment options were “traditional”

in both grocery & restaurant properties

OBSERVATIONS

4 Customers  made  mul/ple  purchases  from  mul/ple  sta/ons  =  mul/ple  payments  and  standing  in  mul/ple  queues.    

5 The  “Queue”  during  lunch    =  people  leaving  the  queue  

SOLUTION

4 Not only did we focus on any item form any station, we also wanted to make sure that all payment types were accepted at every station (no cash at Kiosks). This included accepting mobile payment at kiosks.

in both grocery & restaurant properties

OBSERVATIONS

4 Customers  made  mul/ple  purchases  from  mul/ple  sta/ons  =  mul/ple  payments  and  standing  in  mul/ple  queues.    

5 The  “Queue”  during  lunch    =  people  leaving  the  queue  

5 Customers made multiple purchases from multiple stations = multiple payments and standing in multiple queues.

SOLUTION

5 Strategically placed Kiosks throughout the space to address wait time and queuing issues. iPad POS  allowed customers service associates to take orders while customers waited in the queue.

6 Menu and Product Information was not consistent across all ordering points. The information that was there such as Dietary Information and food availability was not available or accurate.

in both grocery & restaurant properties

OBSERVATIONS

SOLUTION

6 Product and Ingredient Information architecture that powered all ordering points and digital menus: digital menu boards, iPad Menus at the bar and at tables, Online ordering, etc – all driven off of the same point of sale product information platform.

in both grocery & restaurant properties

OBSERVATIONS

7 Moms and dads had difficulty finding a safe way to navigate AND had a hard time finding seating that was family "friendly”

SOLUTION

7 Created the Richtree Market Garden where children could play while parents watched them while enjoying a great meal.

in both grocery & restaurant properties

OBSERVATIONS

8 Guests needed direction and clear forms of way finding in order to ensure they got the most out of the experience

SOLUTION

8 Holographic Host & Brand Ambassador and Digital displays throughout the space.

in both grocery & restaurant properties

OBSERVATIONS

9 Next to speed, entertainment was still a driving force in the selection of dining experience

SOLUTION

9 For those who wanted to be entertained we would deliver value added experiences throughout and experiences were designed with the future in mind. Interactive video wall would eventually support ordering and promotions.

•  Multitude of order options: Self Service Kiosk; Mobile; Online AND integrated them to create a Muliplex brand experience

•  All forms of payment. Anywhere. •  Unique Payment Options for families and groups. •  Food related information •  Queue busters •  In-store format that makes it safe and easy for parents

with children, differently abled, and seniors to order and enjoy their food

•  The ability to grocery shop AND enjoy

We addressed the breaks in the journey and

CREATED

Watch the case study video at ThoughtWorks.com www.ThoughtWorks.com/clients/natural-markets-food-group

MUST DO w h a t r e t a i l e r s

INFR

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(NM

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MULTI-CHANNEL

Points  of  sale  should  be  anywhere  the  customer  wants  it.  

Points of sale should be anywhere the customer wants it.

The right items through the right channel

Service remains key and most retailers today cannot afford to deliver the service consumers expect.  

Leverage technology to deliver service most cost effectively.  

Speed & Convenience

Q&A