Value View
The CEO Perspective: Omnicustomer Retailing Catching Up With Customer Expectations Let’s face it. The omnichannel experience is at the core of every retail strategy, and omnicommerce is becoming more and more mainstream. However, it’s not enough for retailers to change their business models as customer expectations are demanding more than what omnicommerce can provide. As a result, the omnicustomer experience is emerging as a new requirement. This strategy offers customers the intimate brand relationship they crave through personalization and approachable brand engagement – whether they are researching a product or making a purchase across multiple devices. Based on the analysis of top food and drug companies in the 2013 NRF list of global retailers, customer expectations are much further ahead of retailer’s realities.
Figure: Customer Expectations – Ahead of Retail Reality Omnicommerce “Make buying easy” “I can choose where and how I buy across all channels.”
Customer Intimacy and Engagement
Omnichannel “Inform me” “I can find information on products and purchase in multiple channels.”
Omnicustomer “Know me, advise me, and let me choose” “My retailer knows my preferences, follows my purchase path, provides valuable advice, and lets me tailor my shopping and delivery experience.”
Customer Expectations Retail Reality
63%
Are omnichannel
27%
Are omnicommerce
10%
Are omnicustomer
Source: SAP Performance Benchmarking – “Outside-In Analysis of 50 Food and Drug Retailers in 2013 NRF Top 250 Global Retailers List”; 20 out of 50 retailers were not considered for analysis because of inability to assess if they were omnichannel from an outside-in perspective.
Leading retailers are providing the omnicustomer experience with the help of today’s technology innovations: •• Know me: Master data management and unified commerce processes provide a single view of customers, products, pricing, and orders across multiple demand and delivery channels. •• Advise me: Real-time data enables retailers to interact with their customers and gather data on shopping behaviors and preferences at every touch point. Personalized and relevant experiences can be delivered by analyzing purchase patterns; customer profile and characteristics; engagement through social media, Web sites, and other mediums. •• Let me choose: Comprehensive commerce processes empower retailers to connect with customers, the supply chain, and the finance organization.
Each approach provides different customer experiences:
Illustrative example*
Omnichannel “Know me”
Omnicommerce “Advise me”
Omnicustomer “Know me, advise me, and let me choose”
Customer
•• View items online or •• Buy online and ship the on a mobile device purchase to your home •• Purchase item through •• Complete order and request multiple channels to pick up the item at the store •• Participate in a •• Pause and resume the shopcoherent customer ping experience at different loyalty program points within channels
•• Receive customer-specific marketing aligned with browsing behavior and purchase history •• Post recipe on social media and receive retailer response •• Load shopping list on smartphone and retailer responds in meaningful way •• Order items through an interactive display •• Receive promotions based on geolocation data •• Start purchase online and complete order on smartphone
* While this is a hypothetical example, customers are experiencing these capabilities today. Turn the page to read how leading companies are providing similar experiences.
www.sap.com/contactsap
Real-Life Examples of the Omnicustomer Experience The companies below are creating an omnicustomer experience with the latest technology innovations. To get the full story about these real-life examples, scan the appropriate QR code.
Galeries Lafayette, a European department store retailer, focuses on the omnicustomer experience.
Click on the link or scan the QR code.
“We just listen to our customers and do what they want. And what the customer wants today is to be able to buy from any channel, interact with any channel, and still be able to be recognized as a Galeries Lafayette customer.” Alexandre Aubry, CIO at Groupe Galeries Lafayette
eBay and SAP partner to bring innovative solutions to customers.
Click on the link or scan the QR code. Select sequence: 1:15:25 – 1:16:22
“I just want to say how excited we are to be partnering with you and the entire team from SAP and Ariba to bring innovative solutions to your customers and to our customers around the world. Bringing the best of SAP and Ariba® Network’s capabilities along with eBay and Paypal’s inventory and global platform. Together we have enjoyed innovating for your customers and customers all over the world.” John Donahoe, President and CEO eBay
SAP and BMW Group Research are working on the future of the connected car.
Click on the link or scan the QR code.
One of their objectives is to create a marketplace for drivers by integrating vehicle-related services into cars. Service providers – such as parking garages, gas stations, and restaurants – can be grouped together on a virtual marketplace. Drivers receive tailored, localized offerings when they enter the neighborhood of these businesses.
The Société de Transport de Montréal (STM) developed a loyalty program to immediately reward customers and redefine the customer experience.
Click on the link or scan the QR code.
Using rich transactional data and a network of partners, STM suggests opportunities for culture, sports, entertainment, and shopping during the customer’s daily commute. Only two days after its introduction, the program’s mobile app was ranked as one of the top Canadian lifestyle mobile apps.
Learn more about retail technology innovations by visiting the SAP® Solution Explorer site.
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