Post on 10-May-2015
description
bpost Crosschannel Day November 22d, 2012
Agenda for today
12u45 – 14u55PART I
S. CarbonaroWhat’s going on in retail?
C. JonesCross-Channel Inside Out: The cross channel organization
K. Dierick (GFK)Identifying Your Most Likely Buyer based on FMCG buying Behaviour
14u55 – 15u20Coffee break
X. Thiry (Makro NL)From Cash & Carry to multichannel: challenges & opportunities
P. Grypdonck (Vente-Exclusive)Customer communication in a pure online environment
J. Gautier (Delhaize)The success story of the Delhaize Cube
15u20 – 17u05PART II
V. Nolf (bpost)Successful in your cross-channel strategy
17u05 – 17u15Conclusions (by Gino Van Ossel)
4
Introductionby Gino Van Ossel (Vlerick School of Management)
© Vlerick Business School5
SHOPPING BEHAVIOUR 2.0CROSS-CHANNEL DAY
PROF. GINO VAN OSSEL
7
SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS
8Source: “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”,Google, August 2012 (n=1611 US consumers; online survey + 24 hr. log)
SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS
9Source: “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”,Google, August 2012 (n=1611 US consumers; online survey + 24 hr. log)
SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS
10
online
in-store
mobile
SHOPPING BEHAVIOUR 2.0:FROM SINGLE TO MULTIPLE TOUCHPOINTS
11Source: “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”,Google, August 2012 (n=1611 US consumers; online survey + 24 hr. log)
12
nu
mb
er
of
chan
nels
omni
crosssilo
multi
single
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of
chan
nels
cross
omni
silo
multi
single
coverage
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seamless integration
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of
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nels
cross
omni
silo
multi
single
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of
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nels
cross
omni
silo
“old school”
multi
single
“new school”
CONCLUSION
17
Jamie Nordstromhead of Nordstrom Direct
“If we focus on the customer,the outcome will be right”
CONCLUSION
18
Prof. Gino Van Ossel
Retail management
E-commerce & cross-channel
Shopper & trade marketing
Channel management
gino.vanossel@vlerick.com
@ginovanossel
1What’s going on in retail? by Simonetta Carbonaro
Cross Cross-Channel Inside Out: The cross-channel organisation
by Chris Jones
The customer demands a seamless cross-channel experience
A cross-channel experience will have many touch-points with your organisation.
omni-channel experience
Cross-channel customers: both opportunity and challenge
First, the good news. Cross-channel customers1:•Spend 3.5 times more than single-channel customers•Purchase across more categories•Shop more frequently•Are more loyal
And then, the challenge. Cross-channel customers:•Are your best customers already. They are yours to lose.•Expect a seamless cross-channel experience. If you don’t offer them all the channels they demand, they will switch to a competitor who does2
•Do you respond with a seamless organisation?
1IDC insights, May 20122see http://redsockmultichannel.blogspot.co.uk/2012/09/the-multichannel-halo-effect-faith-or.html
Should your organisation be multiple channel or multi-channel?
Few, if any, retailers have fully Multichannel organisations… yet. But the more seamless the customer experience needed, the more seamless your organisation has to become to deliver it.
Case #1: Assortment – the cross-channel challenge
Internet
Call-centre
Mobile
In-store Kiosk
c20k non-food SKUs in a large store
Over 100k non-food SKUs online
80k SKUs in the full store range
>250k SKUs on Target.com
Cross-channel retailers increasingly offer Endless Aisle concepts on all their channels (including for in-store ordering), meeting customer expectations set by Amazon etc
Case #1: Assortment – impact: jobs become more complex
Endless Aisles - with increased SKU counts – are a simple case of a typical organisation challenge facing the cross-channel retailer. For example, what direction should the buying teams go in?
Option A – I liked 1992
lost sales
lost customers
long-term decline
Option B – 2 teams
simple organisation
planning in silos
competing channels
Option C – 1 team
complex jobs
cross-channel plan
channel synergy
A 1-team across all channels approach is increasingly required for sophisticated retail strategies, placing the right “mix” in each customer channel:
“As we look forward, I think our larger stores will have a bit more food space, a little bit less general merchandise space, a bit more clothing space.”
Philip Clarke, Tesco CEO, October 2012
Case #2: Product Data – a challenge at the foundation of cross-channel retail
What product could be simpler than a loaf of bread?
But a loaf of bread is not so simple: there are over 40 data points describing it here
Customer-descriptive product data management, critically impacting the entire customer experience, is a completely new organisational function.
The benchmark is 25 FTE-minutes per SKU.
Where should this huge, essential, task sit in the organisation?
Case #2: Product Data – impact: adding clicks to traditionally bricks jobs
Suppliers
Pallets
Stock Warehouses
Attributes
Data Warehouses
Two “identical” product flows, from source to sales-channel
Pallets
Attributes
Bricks Channels
Clicks Channels
It is possible to respond to “new” tasks by adding “new” teams, but existing functions often have the key competencies; it just needs extending from bricks to clicks.
Making the Logistics (Supply Chain) team responsible not only for shipping products but for shipping data is one successful example. A Logistics team is already strong at business process design, standards & compliance, supplier relationships, flow management, working with sales channels, just in time delivery…
It maybe looks surprising, but actually is very logical, and a great example of cross-channel organisational thinking
Case #3: Collect in Store, cross-channel differentiator and growth engine
** of eligible General Merchandise sales (i.e. excluding food and impossible items like washing machines and sofas)* John Lewis state that 34% of John Lewis sales are collected in Waitrose Stores! So actually their figure is probably higher in total. Click-and-collect was offered at 97 Waitrose's and 35 John Lewis's
"Our product mix lends itself to a multi-channel offer as customers often want further advice, a demonstration or fitting. Online purchasing patterns reflect this, with 86% of sales on Halfords.com reserved and then collected from a store“ - Halfords
“We are seeing about 34% of those visits translating into additional sales in shop and that number is growing exponentially at the moment. It’s typically or increasingly for purchases that the customer didn’t think they would make. So it is quite outwith [beyond] whatever they were going to collect.” – John Lewis
Customer take-up of click-and-collect is spectacular
Case #3: Collect in Store. Impact: New KPIs and Incentives Required
Whose sale is it anyway?
€Towards my KPIs
Store Manager
WebManager
Cross-channel shopping journeys make it more complex to measure success.Especially for stores, new ways of analysing performance are required, overturning
“traditional” measures that may have been in place for a long time.Channel Conflict must be prevented.
Case #4: Delivery to Home. Cross-channel issues even for pure online?
Subsidy to customer
Pick, pack & ship costs passed on to customer
Standard Shipping Charge
Free shipping on large carts?
Large article shipping charge
Tesco Direct £3 No £7John Lewis £3 Yes FreeBoots £2.95 Yes £13Asos free n/a n/aDebenhams £3.99 Yes FreeMarks & Spencer £3.99 No FreeArgos £3.95 No £8
Standard Shipping Charge
Free shipping on large carts?
Large article shipping charge
Otto.de €5,95 No € 26Baur €5,95 No € 40Conrad €5,95 Yes n/aRossman €3,95 Yes n/aGoertz Free n/a n/aRedcoon.de €5,99 No € 40Notebooksbilliger.de €5,99 No € 40
Standard Shipping Charge
Free shipping on large carts?
Large article shipping charge
LaRedoute €5,95 No n/a3Suisses €5,95 No € 19Carrefour Electrical €6,99 No € 60Auchan Electrical €4,00 No € 65Etam.fr €5,90 Yes n/aDarty.fr €5,00 Yes FreeGalleries Lafayette €6,00 Yes n/a
Top Cart Abandonment Reasons1
The top reason customers abandon their cart is shipping costs. “No shipping charges” is another reason for the popularity of collect-in-store compared to home delivery.
The trend, seen most clearly in the UK, especially for large articles, is that shipping should be free, or at least subsidised.
1Forrester Research, Cart Abandonment Reasons, 2010
Case #4: Delivery to Home. Impact: new budget relationships
"From 1 April 2011, the Group has reclassified delivery costs from cost of sales to operating expenses to reflect their increasing deployment as a marketing expenditure. Prior year comparatives have been reclassified accordingly.“1
1Asos plc annual report 2011/12
Logistics costs paid for by the Marketing budget!
Other interesting example changes include the Call-Centre being part of the Logistics budget, and Returns/Waste being part of the Call-Centre budget…
Case #5: Cross-channel change: a culture clash?
Creating your cross-channel customer experience demands simultaneously:
The flexibility of websites
The agility of social media
The stability of EPOS
The predictability of Logistics
&
?
Case #5: Cross-channel change. Impact: hybrid methodologies
For example: in IT, Agile and Waterfall approaches are being
blended into methodologies such as Hybrid Agile
Spectators at the Spa Francorchamps F1 Grand Prix will know this can sometimes be a tricky mixture!
Case #6: Cross-channel Customers => A New Store Experience
ROBO-Customers… …Need Digital StoresResearch Online Buy OfflineResearch Offline Buy Online
83%
53%
25%
of customers research products online before buying1
of smart-phone owners use them to research their purchases first
of smart-phone owners use them to research their purchases while in the store
1Pewinternet.org
The Sales Assistant is no longer someone who Transacts. He/She must now Interact.
Case #6: A New Store Experience. Impact: Old Myths Become True!
Old Myth: “Our sales staff are the most knowledgeable people in our business”
Role basis changes from Process to Service
New Reality: The dialogue with a ROBO-customer is a more sophisticated dialogue. It starts from the premise that both parties are much better informed. The use of Process as a substitute for Knowledge becomes less acceptable to customers.
Organisation Impact: Knowledgeable, Service-focussed staff expect flatter structures and a more democratic environment.
From McJobs… to iJobs…
Case #7: A New Store Experience. Impact: Old Myths Become True!
Old Myth: “We treat every customer as an individual”
The ROBO-customer leaves a lot of footsteps…•Browse & search history•Mobile tracking•Social network posts•Loyalty card data•…
…which retailers try to exploit via Big Data
Personalisation strategies
Mobile communication tool… or Big Data tracking device?
Case #7: A New Store Experience. Impact: Retailing Turns Inside Out!
Old Myth: “We treat every customer as an individual”
New Reality: a paradigm shift. Every individual customer will:•In the medium term, “become a part” of the retailer’s organisation•In the longer term, instead of the retailer broadcasting its offer for the customer to find, the customer will broadcast their need; it will become up to the retailer find it
UK Government initiative, aimed at giving consumers access to the data created through their … internet transactions and high street loyalty cards.
“midata will allow consumers greater insight into their everyday consumption and lifestyle habits by using applications and intermediaries to analyse their actual behaviours and thereby empower them to make better spending choices and secure the best deals. “ – UK Consumer Minister
Summary: Seven Organisational Impacts from Cross-Channel
Impact Example
More complex jobs Assortment buying
Clicks in traditionally Bricks jobs Product Data Management
New KPIs and Incentives Ascribing a Click & Collect Sale
Redistribution of budgets Logistics costs as marketing spend
Cultural & Methodology Changes Hybrids e.g. Agile + Waterfall in IT
New Myths: Service not Process New style stores with Tablets not POS
Retailing Turns Inside Out! Midata personalisation
Summary: The reality is a multispeed approach to multichannel organisation
Assortment / Buying
I.T.
Marketing
Stores
Summary: Seven Impacts… but one Certainty
If your Cross-Channel Strategy does not change the job of every single person in your organisation…
… then you have the wrong Cross-Channel Strategy!
Cross Channel Inside Out: The Cross-Channel Organisation
Thank you for listening!
Chris JonesRedsock Management
22nd November 2012
E: chris.jones@redsock.biz
M: +44 7770 647038
3Identifying Your Most Likely Buyer based on FMCG buying Behaviour
by Koenraad Dierick (GFK)
43
DM TARGETING BASED ON FMCG BUYING BEHAVIORFirst results – The Facial Care Business Case
44
Overview
How it works?
Business Case – Facial Care
Who is the audience?
Expanding the potential of brands
45
How it works?
46
How it works?
SELECTPOST DATABASE
GfK HOUSEHOLD DATABASE
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How it works?
GfK HOUSEHOLD DATABASE
Continuous tracking of:
o Who buys?
o What?
o When?
o Where?
o How much?
o In promotion?
o Which media are consumed?
o …
48
How it works?
SELECTPOST DATABASE
GfK HOUSEHOLD DATABASE
o Who are your brands (potential) buyers in the Selectpost Database?
49
How it works?
SELECTPOST DATABASE
GfK HOUSEHOLD DATABASE
o Who are your brands (potential) buyers in the Selectpost Database?
?
50
How it works?
SELECTPOST DATABASE
GfK HOUSEHOLD DATABASE
o 85% of the GfK Household Panel is also available in the Selectpost database
51
How it works?
SELECTPOST DATABASE
o Based on profile information available in the Selectpost database those addresses best matching the existing buyers of a brand are identified in the Selectpost database
GfK HOUSEHOLD DATABASE
52
How it works?
SELECTPOST DATABASE
GfK HOUSEHOLD DATABASE
o Based on profile information available in the Selectpost database those addresses best matching the existing buyers of a brand are identified in the Selectpost database
53
How it works?
o 6 Groups identified o Based on their buying potential
o the higher the buying
potential the better a SelectPost address matches with a GfK buyer
Total facial care
Buying potential
> 85% 54000
85% - 75% 103000
75% - 65% 123000
65% - 50% 190000
50% - 30% 210000
< 30% 0
Matching Selectpost addresses
54
Who is the audience?
55
Who is the audience?
o (Pre) pensioners with KIDS
o Higher income classes
o Over representation of Flemish people
o Settled, demanding yet open minded
o Looking for Harmony and peace
o Highly valuing duty and discipline
o Focus on self realization and responsibility
o Quality oriented rather than quantity
o More on country side
o Traditions are important
o Intellectual & educated
o Family matters
o Rather conservative
o Feel they are getting most out of life
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Who is the audience?
Average pieces
3.43 times/year
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Who is the audience?
58
Business case facial care
59
Business Case Facial Care
Profiling & Selection
Profiling & Selection
Pre measureme
nt
Pre measureme
nt
DMDMEvaluation
1Evaluation
1
Evaluation 2
Evaluation 2
Evaluation X…
Evaluation X…
During the first 3 months the impact is measured on a two-weekly basis. After 3 months the impact is measured on a monthly basis for during 3 months. This to evaluate the impact on a longer term.
… Evaluation Y
Evaluation Y
Two-weekly evaluation Monthly evaluation
AwarenessAwarenessConsideration & Purchase
intention
Consideration & Purchase
intention
Experiment & purchase
Experiment & purchase
Recommendation
Recommendation
LoyaltyLoyalty
60
Business Case Facial Care
AwarenessAwarenessConsideration & Purchase
intention
Consideration & Purchase
intention
Experiment & purchase
Experiment & purchase
Recommendation
Recommendation
LoyaltyLoyalty
61
Expanding the potential of brands
62
Expanding the potential of brands
Quantification of the potential for growth
Identification
Quantification2
Profiling and „Paint a Picture“3
Link with Selectpost database4
1
Reaching an empathetic understanding of opinions, preferences, desires and purchase habits of the marketing core group
63
Expanding the potential of brands
Quantification
45,2%
14,7%
25,3%
14,8%
Marginal group B
Development group
Marketing core group
Marginal Group A
96,1% 3,9%
Others
Heavy Buyers
While the Heavy Buyers make up for 4% of the brand, the „Heavy Buyer“-
Potential is at 15%
1
2
64
Expanding the potential of brands
„Paint a Picture“
an empathetic understanding of desires and fears, opinions, values and behavior of this group is then analyzed, in order to achieve a maximum of open potentials.
3
After the formal differentiation of the marketing core group
65
Expanding the potential of brands
3
3 Life circumstances Elderly/older households High income Very high prosperity Low economical future fears
Lifestyle and values Active high-cultural leisure-time figuration Demanding and liberal-minded Healthy, pleasure and sustainability
Nutrition preferences Discerning towards organic Untreated, fresh foods From Wallonia
* The section „Paint a Picture“ is actually the centre of the TGPs and covers the description of all facets of the marketing core group. It holds the largest position with regards to contents as well as quantitatively. Often the knowledge is deepened in market research workshops.
Purchase behavior Very low price sensitivity Very high quality-oriented Very strong premium affinity
I
66
More information?
Made by Sanne Van Hoef
Koenraad Dierick (BE)
Consultant Advanced Business
Solutions (ABS)02/558 0551 | 0473/33 47 70
Koenraad.Dierick@gfk.com
Made by Sanne Van Hoef
Dr Dirk Depril
Consultant Media
+32 2 558 0588 | +32 486 533 827Dirk.Depril@gfk.com
Makro NL : from Cash & Carry to multichannel : challenges & opportunities
by Xavier Thiry (Makro)
Member of
bpost
Crosschannel day
Xavier THIRY
Antwerp , 22 November 2012
Member of Page 70
1 METRO Group: emerging internet giant
2 MCC moving forwards approach
3 Makro.nl
Member of
Member of Page 72
METRO Cash & Carry – a core brand of METRO GROUP
Sales (bn): € 20.8Countries: 17Stores: 877
METRO GROUP sales 2010: € 67 bn
Cross functional companies
Food retail
Sales (bn): € 11.5Countries: 6Stores: 429
Self-service wholesale
Sales (bn): € 31,1Countries*: 30…. Stores*: 703
* Status: August 31, 2011
Department stores
Sales (bn): € 3.5Countries: 2Stores: 138
Nonfood specialty
Member of
Member of
METRO GROUP - All sales lines are online in 2012
2011 2012
Q2 Q3 Q4 Q1 Q2
1 Jul 2011: Acquisition of Redcoon
Since Q3 2010: Online Shop Media Markt in NL / AT
Q1 2012: MediaMarkt.de online
10 Oct 2011: Saturn.de online mCommerce
1 Sep 2011: Music platform Juke (myjuke.com) online
07 Oct 2011: Relaunched Galeria-kaufhof.de with fashion
1st store Nov 2010: Drive-in concept
Live since May 2010: Non-food online store
Corporate solutions Food & Non-food
Local implementations since Q4 2010 in F / BE / UK
Divisions
Today
Q4 2011: Online Shop in 1 pilot countries
2012: 5 pilot countries
Portfolio enlargement
Member of Page 75
1 METRO Group: emerging internet giant
2 MCC / Makro multichannel approach: chances & challenges
3 Makro.nl
Member of Page 76
Freshness & quality in food departments
Fruit and Vegetables Fresh Fish DairyMeat Wine
Leading international wholesaler in fresh fruit and vegetables
One of Europe's biggest fish and meat wholesalers
Excellent quality, especially of meat, fish, fruit and vegetable delivered fresh every day (unparalleled expertise in logistics and state-of-the-art cooling in the store)
Member of Page 77
Category killer in professional nonfood
Professional Household Seasonal Professional
MediaOffice Cleaning & Hygiene
Large range & variety of professional kitchen equipment, cleaning products, small/large electrical appliances, personal hygiene products
Further strengthening non-food range: general supplies for business and office
Member of
Member of
The Ecommerce proposition completes the existing customers value proposition of METRO C&C.
Ac
tua
l/P
ote
nti
al
Sp
en
d
low Personal approach and active management
SERVICETRANSACTION
Self service Intense and personal carehigh
C&
C
E
Com
mer
ce
Del
iver
y
CHANNELS
TIER 3 | Key Accounts
Individual service, individual possibility to order, individual assortment, CSP is standard
TIER 2 | Field force
Individual customer service, customer groups discounts and targeted promo, limited number of CSP
TIER 1 | Small/Medium business, Consumer
Standard customer services in stores and via call centrum, Standard Pricing, standard promotion
Member of
Cash & Carry Bezorging
Makro –Multichannel wholesaler for Horeca, service providers, small companies and offices
E-Commerce
1968 20122011
Member of
MAKRO = DE MULTICHANNEL GROOTHANDEL
Dinsdag 18 september:
Makro webshop live
Member of
E-Commerce Sales
0
5
10
15
20
25
30
2011 2012 2013 2014
Year
Sal
es (M
)
E-Commerce KLANTEN: kleine kantoren
Bezorging
Andere initiatieven (bijv. Wijn online, MakroDirect)
0
2
4
6
8
10
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2005 2006 2007 2008 2009 2010 2011
Year
Mill
ion p
eople
Online population Online buyers
Uitgestelde E-Commerce lancering resulteert in nadeel t.o.v. de concurrentie
E-Commerce is een multichannel aanvulling
Member of
Country Organisation Model
Stage 1:Dedicated project team to establish
capability
2-3 Year OrganisationStage 2: eBusiness organisation.
Dedicated coordinating teams, plus specialist expertise embedded in
departments
Stage 3:Multichannel capability ready for growth!
Project
Non-FoodFood
Member of
CHALLENGE # 1
PEOPLE / ORGANIZATION
Member of
Country Organisation Model - eCommerce Pro FormaNB see reference document: 7 person start-up organisation for non-food eCommerce for further information
eCommerce Business-as-Usual organisation
Functional Area
Key
Member of
CHALLENGE # 2
IT / Systems
Member of
Member of
Member of
We are working on one centralized platform for 4 different shops and 3 different fulfillment methods which will run on 3 continents.
One common eCommerce solution
Central eCommerce platform will be used in each country for different eCommerce modules
Standardized solution which fits to market and saves cost and time
Platform enables an easy connection to all other MCC systems
Common platform
Four different modules available
METRO Gastro NF shop
METRO Office/Cleaning shop
METRO Profi Food shop
METRO Wine shop
Fulfillment
Fulfillment from stores or platformsStore based assortment
Fulfillment from one central warehouse per country
Country based assortment
Central warehouse per country or per continent with direct shipment to the customers
Assortment based on leading country with possibility for local adaptation
Central warehouse per continent with direct shipment to the customers
Assortment based on leading country with possibility for local adaptation
Page 89
Member of
Member of
CHALLENGE # 3
OPERATIONS / Supply Chain
Member of
Member of
MAKRO WEBSHOP
Member of Page 94
Store vs. warehouse picking - Overview
Makro NL decided to utilise Vianen store to fulfil their General Needs online shop orders
Vianen shares space and employees with “normal” store operation – created warehouse in store
Orders are picked and packed in Vianen and sent via courier to customers
Setup is not new to Makro, most Makro HoReCa delivery operations are set up like this
Setup is unique to General Needs proposition, other eCommerce countries (Romania, Poland, Russia) went for central warehouse solution
Member of Page 95
Store vs. warehouse – Differentiating components
Pick in store Pick in central warehouse
Assortment Limited to store assortment Full central assortment
Stock Cannibalisation risk by offline customers Higher capital expenditure when utilising
multiple stores
More capital expenditure when compared to single store
Space
Available at no additional cost Use of under-utilised stores Order volume limit, replication in
additional store needed
Rent to be paid regardless of utilisation, expensive when low
Handling High cost, store’s not optimised for
picking and packing Up to a third of in-store picking and
packing cost
General
Click & collect possible Shopping experience for offline
customers restricted at high order volumes
Dedicated team with clear allocation of cost and responsibility
Member of Page 96
Store vs. warehouse picking - Outlook
Ideal early phase setup, when expected order volume is unclear
Pick in store has advantages when processing low volumes, once higher volumes are reached advantages shift to centralised solution
Plan B is required that compares cost implications for both solutions and break-even point
Pick-in-store could be used as starting point for offering click & collect/ drive-in solutions for customers
Member of
CHALLENGE # 4
MARKETING
Member of Page 98
HoReCa Trader ServicesInstitutions
Cash & Carry wholesale exclusively for professional customers (I)
Restaurants
Fast Food
Bars & cafes
Accommodation
Caterers
Canteen
Generalist food
Specialist food
Kiosks & petrol stations
Wholesaler
Institutions
Office-based services
Industries
Nonfood traders
Health care
Physical services
Wellness
Craftsmen
Member of
For each of web shop we have clear definition for core target customers -Example Office web shop
Storage/Maint.
Furniture
Coffee
Food Detergent/Toiletries
Water
Officesupplies
Computers & office
instruments
Low Price = Low Emotional
Involvement
High Price = High Emotional
Involvement
Assistant Boss
Member of
Member of
Relevance of information sources (1/3)
Advertising on TV
Advertising on posters
Advertising in shops
Professional magazines
Advertising in magazines
Other personal recommendations
Business acquaintances
Advertising in daily newspapers
Catalogues
Company visits
Email / newsletter
Company website / homepage
Prospectuses / flyers
Basis: Makro customers n=606 / Non-customers n=317Source: Brand potential analysis MCC NL 2008
9
12
13
15
15
16
18
19
21
22
36
37
58
Customer Survey Netherlands
%
Multiple answers were possible
Q24 Please tell me whether the following sources are relevant for you to gather information about suppliers for professional purchase.
Member of
TODAY
Vision: From generic, mainly transactional communication to a targeted and balanced communication Model reaching more customers
Sell & Tell
1:1
targeted
mass
VISION 2015
Dif
fere
nti
ati
on
of
Me
ss
ag
efr
om
ge
ne
ric
to
cu
sto
miz
ed
MetroMail
Positioning
1 to 1 CouponLoyalty
Web/social media
Transactional Brand Building Transactional Brand Building
1:1
targeted
mass
Positioning
Web/social media
Competence incl. Hobby
Cook/A la Carte
1 to 1 CouponLoyalty
From 750k touched customers
… to 1 mio Communication receivers in totality
Sell & Tell
Page 102
MetroMail
Competence incl. Hobby
Cook/A la Carte
Member of
Multi – Channel frame at a glance
1
2
3
4
5
Excellence in Customer
Data
No substitution of printed promotion by E-Mail Makro Mail
Additional promotion impulses
Couponing to generate frequency
Allocation of resources
Member of
Online communication channels
Homepage: E-mail
Online ordering page:
Page 104
Member of
Emarketing changes the rules of the game
• new metrics
• new insights
• test / measure / improve
• full traceability
Member of
CHALLENGE # 5
ASSORTMENT / PRICE
Member of
General Assortment Development – Depth before Breadth
Categories
SKU count
Do This...
Categories
SKU count Before This...
It is even more important to demonstrate range-competence on the web than in physical stores.
Member of
Office web shop is a key service to recover business demand from SCO by increasing sales of our General Business Needs solutions. Focused areas:
Note: all solutions generally do NOT represent core needs
Office Pantry
Cleaning/Hygiene
Off
ice
Food and NF products & services that enable daily office work
Cle
an
ing
/H
ygie
ne
Wo
rk Wear/
Main
tenan
ce/S
afety
Essential work wear for specific branches, security & safety equipment
Pan
try
Food and NF products & services used in companies to serve guests & cater for “internal breaks”.
Focus
Products & services used for cleaning of surfaces & technical equipment & hygiene products
Workwear/Maintenance/Safety
Page 108
Member of
Office supplies: 7000 articles
Bathroom
Office 1
Office 2 Office 3
Kitchen
Entrance area
Copy room, maintenance & supplied
Page 109Page 109
Member of Page 110
1 METRO Group: emerging internet giant
2 MCC moving forwards approach
3 Makro.nl: first results
Member of
MAKRO.NL extend his proposition
Entire office solution Kantoor oplossing
7000 articles (5000 NF / 2000 F)
• Unique Market Proposition
• Full multichannel (return, same price, customer review)
• Launch: November 2012
• 100.000 registred customers in start up phase
• Sales: 50 % Food / 50 % NF
Member of
Thank you for listening!
5Vente-Exclusive.be: customer communication in a pure online environment
by Peter Grypdonck
Customer communication in a pure online environment
bpost Crosschannel Day
Peter Grypdonck, CEOwww.vente-exclusive.com
•Vente-Exclusive.com in a nutshell
•Why is communication key for us?
•Our communication channels
•The role of Social Media
•Plans for the future
Overview
Our business: online private sales of fashion and lifestyle brands
•We rarely see or meet our customers
•Our business model is a bit a-typical
•Communication is crucial for customer satisfaction
Why is communication key for us?
Our business model is a bit a-typical…
Communication about order status
•Real time and automated communication with Bpost
•Direct line and contact person in case of issues
•All communication flows via our own people
Our communication channels: mainly e-communication
Transactional e-mails
Daily / weekly sale invitations
Customer Service (Chat / e-mail)
Marketing e-mails
Media (B2B & B2C)
Social media
In-box messaging
Webshop
Daily / weekly invitation mail
Account information
Overview new sales -> direct link
to shop
Personalized intro
Homepage
Overview new sales + pending
orders
Personal account info available on
homepage
Contacting Vente-Exclusive.com
Every member can contact us via
•e-mail (response within 12h) •or chat (instant conversation)•But not via phone support
Proactive contacts in case of issue through CS
Customers appreciate our pro-active approach, even when we have to cancel an article from their order
Social media – connecting to our members
Social media – creating interaction
Social media – getting feedback
Social media – providing service to customers
Social media – getting positive word-of-mouth
Social media – getting positive word-of-mouth
Social media – asking help to customers…
Social media – … and thanking them for it
Mobile: keeping customers close
Communication – plans for the future
•Experiment with new channels – also offline
•Update historic communication media
•Accelerate investment in social and mobile
•Invest in creating even more interaction with members
peter.grypdonck@vente-exclusive.com
6136
The success story of the Delhaize Cube
by Jim Gautier
Jim GautierLocal & Luxemburg Marketing Manager
The success story of
the Delhaize cube
What is Delhaize Direct ?
Smartphone applications are the first step to an omnichannel approach
http://www.youtube.com/watch?v=-vtE9ix2sZM
Delhaize launched first virtual grocery store in Europe
Objectives of the Cube Campaign :
-Increase notoriety of Delhaize Direct and his new e-commerce website
-Increase notoriety of our Delhaize Smartphone App
-Gather knowledge on virtual stores
-Test customer perception
http://www.youtube.com/watch?v=q4c0r22o-l8
Principle of the Delhaize Cube
Scan one or more product with your smartphone Prepare your shopping list
or Make your order via your smartphone and pick the
next day minimum your products in a Delhaize shop
6 cubes travelling around the country in high frequented places Wk 14->15 : Belgian Coast : Oostende, Knokke,
Blankenberge
Wk 16->17 : NMBS stations : Bxl North, South, Central, Anvers Berchem, Mons, Liège, Mecehelen, Oudenaarde, Gent-sint-Pieters
Wk 18->19 : NMBS stations : Hasselt, Leuven, Kortrijk, Brugge, A’pen C, Ottignies, Charleroi
Wk 19->20 : Metro Brussels : De Brouckère, Schuman, Centrale, Rogier, Louise, Mérode, Pte de Namur, Arts-Loi, Madou, Simonis
Wk 16->20 : Walking places : Brussels Flagey, Hasselt, Gand, Anvers, stadsfeestzaal, Nivelles, Charleroi, Mechelen, Enghien, Tournai
Each cube was supported by hostesses giving explanations and distributing leaflets
Teasing video to create curiosity amongst press representatives
http://www.youtube.com/watch?v=VRgxO0WDLts&feature=relmfu
DELHAIZE PORTRAYED AS AN INNOVATIVE ENTERPRISE,
PLAYING A PIONEERING ROLE IN EUROPE
THE DELHAIZE DIRECT CUBE APPEARED IN AT LEAST :
•16 NEWSPAPERS AND MAGAZINE ARTICLES
•32 ONLINE NEWSPAPER ARTICLES
•33 ONLINE SOURCES
•5 BROADCAST MEDIA
•16 FOREIGN MEDIA ARTICLES
It was an efficient call to action campaign to support the launch of the new website + 22,1%
= evolution of the number of downloads of the application
+39,9 %= evolution of the number of
visits on Delhaize Direct website
+ 27,6%= evolution of the
number of orders on Delhaize Direct
Thank You ! Jim Gautier
Local & Luxemburg Marketing managerDelhaize Belgium
Phone : +32 2 412.83.27 Email :
jgautier@delhaize.be
Contact details
7Successful in your cross-channel strategy
By Vincent Nolf (bpost)
Agenda
1. A Cross-channel strategy: why ?
2. Right targets
3. Right communication
4. Right delivery
5. Conclusions
151
A cross-channel strategy, why?
152
Because it makes sense for you, retailers…
37% of visitors picking up their order in store also buy something else
Cross-channel shoppers are worth
of single channel shoppers
4X THE VALUE
NextMarks & SpencerNewlook
A cross-channel strategy, why?
153
… and, more important, also for your customers
Source: McKinsey – iconsumer 2011
A cross-channel strategy, why?
154
Key challenge will be to have a truly integrated cross-channel approach… while keeping same delivery promise to the consumers
WEBSHOP MOBILE
Information
Ordering
Delivery
After Sales
Multiple-channel Cross-channel
Right target
First, who are your customers ?
156
Example: different social shopper segments…
Archetype represents x% of total shoppers
… with different needs
Source: Research done by Leo Burnett “PeopleShop”
14% 14% 16% 22% 15% 18%
… and why do they choose to shop online or offline ?
157Source: GfK FutureBuy 2011 (US)
Ideal Attributes – IN STORE Shopping Ideal Attributes – ONLINE Shopping
organized
54%
fast
41%
clean
42%
easy
32%
orderly
35%
friendly
44%
fast
65%
easy
58%
safe
47%
organized
55%
effortless
43%
informative
40%
Customer knowledge really makes the difference
158
159
10 client typologies
In cooperation with Python Production
Benefits
> Ready and easy to use
> Statistically pre-defined ‘high potential’ prospects
> Ideal starting point to discover SelectPost and introduce DM
> An inspiration for ‘refined’ selection
> Possible to further customize
> Standardized profile of selection
SelectPost clusters
bpost profiling solution
attitudinal behavior
Based on
Pet LoversActive
LifestyleBrand Lovers
Planet Lovers
Home Sweet Home
Life Quality Seekers
Family Budget
Managers
Connect Lifestyle
Money Planners
Promo Shoppers
160
> Brand products> Environmental products> Premium seekers
Mostly> Dutch speaking> Female
interested
in
78.790 prospects are waiting for you
Brand Lovers
Right communication
Internet
Big brands use DMin their Marketing Mix
162
DM objective:Increase Loyalty
Direct Mail Mobile Application
Television
POSMagazine
And, even pure players start to use… paper
163Source: Marketing Direct N°148 - 01/06/2011 - Astrid de Montbeillard
Why are catalogs still relevant ?
Catalogues foster the act of purchase
– 65% of online shoppers use catalogue
– Online sales supported by DM catalogues = 16% increase on average of basket size.
164Source: Planetafeup
bpost can help you to put in place efficient DM strategies
165
100.000 recipients >
20.000 new
visitors >10.000
new members >
3.000 new
clients
of recipients visit the website
of visitors get member
of member make 1 purchase
20% 50% 30%
Offline/online example
Right delivery
Customers want to be in control and drive retailer’s value proposition …
167Source: World Retail Congress, September 2012
Convenience, choice and simplicity
Qualified free delivery
Easy returns Delivery options
Reliability
… and require multiple delivery options to choose from
168
Home 70% Pick-up point 33% Point of sale 21% Locker 10% Other 10%
Source: VIL study – 1.153 respondents – Average # of methods 2,8 – Dec. 2011
Preferences of the online consumer
Customer
• Visits physical store X to get more information on product A
• Buys 2 days later product A from webshop of store X
• Chooses for delivery of the goods at home
169
1
Customer
• Visits physical store X to buy product A
• Wants product A in another colour (not available in store X)
• Product A needs to be delivered in pick-up point (near her office)
170
2
Customer
• Buys product A in online shop X
• Wants his product to be delivered in physical store of shop X (close to home)
• Wants to return his product (not the right size) in another physical store of shop X (close to work)
171
3
172
Home Pick-up point
Parcel automate
bpost delivery options…
173
… and easy to use tools to support you
Is this enough for the consumer?
Albert, 82 year, needs help for his meals,
groceries and medication
Sofie, 23 year, shops every day online and
requests a consolidated delivery once per week
including groceries
Nathalie and James both work every day and prefer collection and delivery of their laundry on Saturday
morning
Singles, families, companies, have new expectations and wishes…
Lillybook, book editor, wants to ship parcels every day and
prefers a consolidated delivery once per week for returns and
purchases
make this happenbpost can
bpost will help you improve the quality of your life by creating a world without physical distances in which you can rely on bpost employees as your personal assistant to order
177Source: Planetafeup
anything anywhere anytime
OUR VISION:bpost by appointment
A fully consumer centric eco-system with 4 key components…
178
The customer agrees a delivery time with bpost
All purchases and parcels are delivered together at that time
The customer can also return goods (empties, ironing etc.)
The customer pays for the goods safely and securely by banker’s card at the time of delivery
Digital platform:
www.bpost.be/opafspraak
www.bpost.be/surrendezvous
Physical infrastructure:
post office
fleet
people
boxes
Payment infrastructure:
mobile terminals
invoice
… based on 3 building blocks at our partner’s disposal:
Conclusions
Conclusions
• To be successful in your cross-channel strategy, 3 factors are key:– Right target– Right communication– Right delivery
• bpost is in a continuous process of innovating in and around cross-channel solutions
• bpost is there to support you with the relevant knowledge and tools at your disposal
181
87
ConclusionsBy Gino Van Ossel (Vlerick School of
Management)
NEXT …
RetailDetail Awards Ceremony !
ROC STAR – 14 dec2011