Jirafe Ecommerce Strategy Session: Customer Lifecycle Management
ECOMMERCE & CLIENT SERVICES€¦ · Stock optimization Ship from store Carrier management Real-time...
Transcript of ECOMMERCE & CLIENT SERVICES€¦ · Stock optimization Ship from store Carrier management Real-time...
ECOMMERCE & CLIENT SERVICES
SUMMARY
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1. A STRATEGIC DECISION
2. REINTEGRATING ECOMMERCE WHILE
SETTING UP THE OMNICHANNEL
FOUNDATIONS
3. CLIENT SERVICES
ECOMMERCE & CLIENT SERVICES
IN 2012 WE CREATED A JOINT VENTURE WITH A WORLDWIDE PUREPLAYER
TO ACCELERATE OUR ECOMMERCE…
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TECHNOLOGY
Back-end info-structure
Front-end development
Omnichannel services
LOGISTICS
In-bound & Out-bound
Packaging
INVOICING
Acquiring & Fraud
ROADMAP
MANAGEMENT
BUSINESS
INTELLIGENCE
USER
EXPERIENCE
MERCHANDISINGCOMMUNICATIONS
& MARKETINGCREATIVE DESIGN
… ACHIEVING GREAT RESULTS
ECOMMERCE & CLIENT SERVICES
…. AND NOW WE ARE EVOLVING FROM MULTICHANNEL TO OMNICHANNEL
EXPERIENCE
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• Customers see multiple touch-points act independently
• Each channel is operated in a silo
• Customers experience a brand and not a channel
within a brand
• Brands leverage their “single view of the customer”
in a coordinated and strategic way
OMNICHANNEL
CLIENT
MULTI-
CHANNEL
ONLINE
STOREMARKET
PLACE
STORE
CLIENT
SERVICES
SOCIAL
MULTICHANNEL OMNICHANNEL
ECOMMERCE & CLIENT SERVICES
SUMMARY
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1. A STRATEGIC DECISION
2. REINTEGRATING ECOMMERCE WHILE
SETTING UP THE OMNICHANNEL
FOUNDATIONS
3. CLIENT SERVICES
ECOMMERCE & CLIENT SERVICES
72COUNTRIES
> 300STAKEHOLDERS
70EXPERTS
5BRANDS
A HIGHLY COMPLEX PROGRAM…
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33EU
14APAC
19ROW
6AMER
ECOMMERCE & CLIENT SERVICES
… INCLUDING SETTING UP NEW SYSTEMS, PROCESSES AND TEAMS…
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B2C &
OMNICHANNEL
OPERATIONS
ECOMMERCE
PLATFORM
INVOICING CHANGE CHINA
Central & local
warehouses
BtoC fulfilment
Stock optimization
Ship from store
Carrier management
Real-time integration
Customer 360° view
Ecommerce Platform
Order Management
System
New product referential
Digital asset
management
Secured payment
Tax management
Fraud management
Legal Compliance
Target organization
Impact analysis
Stakeholder
management
Communications
Training
Local Ecommerce
platforms
Local invoicing
processes
Local operations
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ECOMMERCE & CLIENT SERVICES
… TO PROPOSE AN ENHANCED EXPERIENCE TO OUR CUSTOMERS VIA…
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ORDER
IN STORE
CLIENT
SERVICES .COM WEBSITES
One omnichannel
account per customer
allowing a 360° data viewStore
Client
Services
Online store
Ship from store
DC fulfilment
Pickup
(DC inventory)
Pickup
(Store inventory)
Global DC
Inventory
Shops
Future
inventory
(pre-order) Local
DC
Local
DC
CONSISTENCY ACROSS CHANNELSFULL DATA INTEGRATION
BETWEEN ONLINE & OFFLINE
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ACCESSING A WIDER
INVENTORY & ASSORTMENT
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MORE DELIVERY SERVICES
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ECOMMERCE & CLIENT SERVICES
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LOCAL DISTRIBUTION CENTERSFulfil only to the country they are based in
GLOBAL DISTRIBUTION CENTERGlobal reach
…. LEVERAGING KERING DISTRIBUTION CENTERS AND STORE NETWORK…
ECOMMERCE & CLIENT SERVICES
Marketplaces
Social commerce
CHINA:
A DIFFERENT ECOSYSTEM REQUIRING DIFFERENT SOLUTIONS…
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Local inventory
Local carriers to cover all tier cities
High service level expectations
LOCAL OPERATIONS
Social login:
integration to local solutions
Personal data:
must be stored in China (Cybersecurity law)
Product content
PLATFORM SPECIFICITIES
DISTRIBUTION LANDSCAPE
Specific payment methods
Invoicing
VAT Fapiao, VAT special Fapiao, e-Fapiao…
INVOICING/PAYMENT OPTIONS
ECOMMERCE & CLIENT SERVICES
….RESULTING IN PARTNERING WITH LOCAL SPECIALISTS
AND BUILDING A LOCAL TEAM OF EXPERTS
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LOCAL
PAYMENT METHODS
& INVOICING
PROCESSES
LOCAL TEAM
OF EXPERTS
LOCAL
PLATFORM
HOSTED IN CHINA
INTEGRATED TO
MARKETPLACES
LOCAL INVENTORY
AND DISTRIBUTION
CENTER IN SHANGHAI
LOCAL
CARRIERS
ECOMMERCE & CLIENT SERVICES
ECOMMERCE INTERNALIZATION TIMELINE
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2019 20202018
BRANDS GO-LIVES
OCT NOV Q2 Q3
ECOMMERCE & CLIENT SERVICES
Q1
Roadmap
Iterative implementation
Global designTest, Migration
& TrainingRollout
& Hypercare
OMNICHANNEL BOOSTING ECOMMERCE REVENUE
• Ship from store (larger assortment and faster delivery)
• Improving depth and breadth of assortments available for sale
• Inventory optimization to reduce shortages (inventory transfer, quicker replenishments etc.)
• Remote sales from stores and Client services order from ecommerce inventories
• Fraud and payment optimization (acceptance rules + new payment methods)
DIRECT
INCREMENTAL
SALES
INDIRECT IMPACT
ON SALES
ADDITIONAL
BUSINESSES
ENABLED BY
IMPLEMENTATION
OF NEW TOOLS
• Integration within our ecosystem: customer centric approach in-house, single data lake
• Internalization of Roadmap allowing multiple enhancements and evolutions
• Unified omnichannel set-up across all brands and all CRM & communications activities
• Insourcing key ecommerce competencies
• China local business solution
• Marketplace integration facilitator
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LEVERS
ECOMMERCE & CLIENT SERVICES
FINANCIAL IMPLICATIONS
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NEUTRAL IMPACT ON EBIT AT GROUP LEVEL IN 2021 / ACCRETIVE TO EBIT MARGIN FROM 2022
GROUP IMPACTS
Revenue
Gross Margin
(% of revenue)
Fulfillment & Shipping costs
(% of revenue)
Marketing costs & Contact
center (% of revenue)
Direct operating expenses
(% of revenue)
Central costs (finance,
technology, digital and media)
Depreciation and amortization
(% of revenue)
EBIT (% of revenue)
NEUTRAL IN 2021
ACCRETIVE
FROM 2022
Direct Opex: Replacing variable revenue share
with lower direct costs
Central costs: Replacing independent JV
structure with dedicated Kering Omnichannel team
D&A: some depreciation vs. none in previous
situation
Revenue uplift and operating leverage will be
accretive to Group EBIT margin from 2022
Replacement of revenue share by a combination
of lower direct opex and fixed costs of dedicated
omnichannel structure
ECOMMERCE & CLIENT SERVICES
IN A NUTSHELL…
FROMUNINTEGRATED PLATFORMS
& POINTS OF CONTACTS
TOA SEAMLESS EXPERIENCE,FROM AWARENESS TO PURCHASE
OMNI-
CHANNEL
EXPERIENCE
Differences in product assortment
between online & offline
Separate stock between online & offline
Limited Multichannel services
Smaller range of order & delivery methods
Less customer data consistency
Larger product assortmentleveraging retail & online inventory
Real-time inventory view in store across all channels
Seamless integration across Web & Retail
Broader range of order, payments (e.g. Alipay)
& delivery methods
Greater item return/exchange flexibility
One global omnichannel account per customer
Enriched and customizable online experience
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OMNICHANNEL
ECOMMERCE & CLIENT SERVICES
CLIENT
MULTI-
CHANNEL
ONLINE
STOREMARKET
PLACE
STORE
CLIENT
SERVICES
SOCIAL
CLIENT SERVICES HAVE BEEN INTEGRATED
AS THE FIRST STEP TO SUPPORT OMNICHANNEL
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CLIENT SERVICES
OMNICHANNEL
ECOMMERCE & CLIENT SERVICES
SUMMARY
1. A STRATEGIC DECISION
2. BRINGING BACK ECOMMERCE WHILE
SETTING UP THE OMNICHANNEL
FOUNDATIONS
3. CLIENT SERVICES
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CLIENTEXPERIENCE
INCREMENTALSALES
CLIENTENGAGEMENT
CLIENTQUALITATIVE
FEEDBACK
CLIENT SERVICES - A STRATEGIC MEETING POINT
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CONTRIBUTE to the omnichannel experience
GUIDE and answer clients along their journey
ENHANCE the long-term relationship
Provide to all our customers around the world a direct
connection to Kering Houses – seamless, always
accessible and personalized
CLIENT
SERVICES
MISSION
A “CLIENT FIRST” STRATEGY
ECOMMERCE & CLIENT SERVICES
CREATING A DIGITAL RETAIL STORE
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CLIENT BENEFIT
Retail staff stay
focused on client-
facing activities
Extend the client
experience out
of the store
Provide a 360°
client experience
across all
touchpoints
ECOMMERCE & CLIENT SERVICES
MAIN REASONS FOR CONTACT
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40%Product enquiry
50%Purchase
10%Brand Information
ALL
CHANNELS
ECOMMERCE & CLIENT SERVICES
A CORE MODEL DEVELOPED ON A SCALABLE AND SUSTAINABLE APPROACH
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CLOSE TO OUR
CUSTOMERS
UNIQUE
MANAGEMENT
CULTURE
BEST-IN-CLASS
TECHNOLOGY
ECOMMERCE & CLIENT SERVICES
CLOSE TO OUR CUSTOMERS
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Live
6REGIONAL HUBS
8BRANDS
>12LANGUAGES
>300DIGITAL ADVISORS
2017 2018 2019 2020
EUROPE AMERICAS APAC KOREA JAPANMAINLAND
CHINA
ECOMMERCE & CLIENT SERVICES
BEST-IN-CLASS TECHNOLOGY
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CRM
MANAGEMENT
INTELLIGENT
TELEPHONY
SYSTEM
INTELLIGENT
LIVE CHAT
360° CUSTOMER
VIEW TO ENGAGE
WITH AUTHENTICITY
LUCE & RETAIL
SYSTEMS
ECOMMERCE & CLIENT SERVICES
360° CUSTOMER VIEW
aaaa
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INTELLIGENT LIVE CHAT
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See the customer journey
See the Brand website and its activity as in a store Visualize client data
ECOMMERCE & CLIENT SERVICES
INTELLIGENT LIVE CHAT DEMO
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INTELLIGENT LIVE CHAT
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• Client recognition
• Client navigation data
• Digital retail store, act as a SA /
Proactive engagement
• Enriched KPIs
• Immersion into brand universe
• Digital tailored advice in real time
• Intimacy & proximity
• Client & website enriched insights
for all departments
• Higher opportunities to convert
• Enhanced activity tracking
KEY VALUABLE FEATURES CLIENT BENEFITS BRAND BENEFITS
ConversionService & InsightsKnowledgeVisibility
HOW IT WILL TRANSFORM THE WAY WE DO BUSINESS
• Possibility to address specific clients & trigger journey with chat
• Increase conversion
• Ensure real-time assistance wherever the client is on website
AROUND THE CORNER
• Bot, AI
• Messenger
• Conversational commerce development
• Digital in store
ECOMMERCE & CLIENT SERVICES
3MCONTACTS
96%PICK UP
RATE
8.9/10CLIENT
SATISFACTION
ADDITIONAL
SALES DRIVER
8BRANDS
4REGIONAL HUBS
OPENED SO FAR
> 300DIGITAL
ADVISORS
>12LANGUAGES
KEY ACHIEVEMENTS IN 18 MONTHS
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DELIVERING POSITIVE PERFORMANCE ACROSS KPIS
ECOMMERCE & CLIENT SERVICES