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Whisbi is a tool for the omnichannel customer support. It bridges online, offline and phone-call experiences to provide a type of support fit for today’s and tomorrow’s merchants.
What Whisbi does is create a rich connection with the customer. It does that by streaming a live interactive screen from the sales support and at the same time it synchronizes this screen with a live phone call.
The great thing about the technology is that customers can effectively be “teleported” within the store or a specially designed sales support space. For example, if a retailer were to provide support for big-ticket products, such as cars, high-end electronics or maybe a designer items, the customer should effectively “feel” these products. For now, the general consensus among consumers is that such a feeling can only be attained in a real store. Two of the most important factors for in deciding to visit a brick and mortar store are the sensory experience and human touch.
Whisbi fulfills these two needs quite admirable. First of all it provides a smooth connection between the sales person and the potential customer. This is done either through a “click to call” function where the customer requests a call, or through a direct call to an inbound number. While the phone connection is established, customers also start a digital interaction with the sales consultant. This stream of information can be in the form of co-browsing, assisting in data-filling, showcasing product videos and photos, but most importantly, it can come in the form of a live product demo, from the store.
The sales consultant effectively streams live video to the customer through a mobile app, a laptop camera or even … wait for this … Google Glasses.
So while the two discuss on the phone, the customer can experience touching and discovering the product, as if he or she were in the store. This type of assisted purchases are the perfect fit for omnichannel retail.
The customer sees the sales assistant while they discuss but to insure the customer’s privacy, it doesn’t work the other way around.
The fact that the video stream and the phone call are synchronized may seem trivial but keep in mind that data is streamed through two very different infrastructures. The fact that the customer can see and hear the sales assistant at the same time gives a pleasant sense of human interaction, mimicking the experience one would have in a real store, with a trained store assistant. In fact, one of Whisbi’s four patents, and in my opinion the most important, is a patent to synchronize phone calls to online experiences.
The feeling you get by using Whisbi as a customer is quite impressive. By synchronizing multiple sensorial experiences, the solution works far better than either the phone-call option or the live chat.
In fact, the company claims a 15-30% conversion rate for customers interacting with the brand through this technology. While this might seem outrageously high, I think this might be an accurate figure. The feeling of (almost) complete immersion may be an even better experience than the one customers would get in a real store. The reason is “whisbi-ing” is an experience brought up by the customer’s demand, in the safety and comfort of a familiar place. By taking out stressful elements that brick-and-mortar stores sometimes have (crowds, un-involved sales reps), this omnichannel experiences works as a type of “concierge” service.
If you’ve read this far, you’ve probably noticed that Whisbi sounds too good to be true. The fact is that it actually IS too good to be true. The usage of Whisbi is limited by the potentially high cost of hiring qualified personnel to handle incoming customer demands.
Indeed, forms and chat have a low conversion rate. However they are great for low to median cost products where margins are low and the cost of specially trained sales reps is not justifiable.
But there are some cases where Whisbi can be a great fit:
1. Big Ticket omnichannel sales: Think of cars. A car should be seen, experienced and felt. It is an expensive purchase, one that has a lot to do with the rational but more to do with our emotional decisions. While purchasing and paying for a car is far from mainstream, a sales rep using Whisbi can offer a great display of the car’s features and teleport the customer to the dealership, before a visit is made. One of those using Whisbi is Fiat, and the ad below showcases a potential customer journey:
Its not just cars, either. I think Whisbi can work great as an omnichannel support for other big ticket items such as designer fashion, jewelry or maybe art.
2. High customer acquisition cost: Several industries have high customer acquisition costs. Telco is one of such industries. Voice and data subscriptions, especially for customers switching from one operator to another, as well as those that decide on their first subscription, have a high customer acquisition cost. This is due to increasing competition, large marketing budgets and extensive offers from competitors.
But such high-acquisition cost industries also tend to be profitable because of a certain aspect. That is the large lifetime customer value.
3. High lifetime customer value: The lifetime customer value expresses the long-term value a customer has for the company. Simply put – it means how much will the customer spend on the company products during his lifetime as a customer. For example, due to a high lifetime customer value, Goldman Sachs estimates that Apple’s customer’s base value at $295 billion. The point is that retailers estimating high customer lifetime value should use omnichannel customer service to acquire customers. Even if costs are high.
4. Personalized service for the loyal customers: Maybe not all customers can be served through an Whisbi experience. But such great support can be a great incentive for your loyal pack. Concierge support for loyal customers and high-spenders can go a long way in keeping your friends close.
5. Address to impress: Let’s face it. Whisbi’s technology is awesome. The experience of a live demo convinced me to write this review. The experience is great. Google Glass, mobile apps, live streaming and phone calls – arent these impressive? More so – teleporting users and showcasing products in real time directly in the store and letting customers purchase online and receive at home? This is impressive and impressive is an asset on its own.
In conclusion Whisbi may not be perfect for all ecommerce or omnichannel operations but for some – it is an impressive and must-have technology. The results in conversion rate improvement shows the need for better customer support within omnichannel operations. And Whisbi delivers.
A very important part of retailing is pricing and the most important part of pricing is the cost. To get a complete view of how much a product would cost, retailers think in terms of net landed cost.
The net landed cost is the sum of costs associated with manufacturing and distribution. When thinking in terms of net landed cost you have a better chance of understanding your total cost.
A common fallacy is thinking of costs just in terms of manufacturing, either from a purchase only point of view (how much you pay your supplier for a given product) or a more inclusive manufacturing point of view. The manufacturing point of view assumes that even if you are not manufacturing the product yourself, you still have the liberty to choose another supplier or change merchandising altogether.
The most important advancements in retail, in terms of supply and cost effectiveness, have focused largely on manufacturing costs in the past decades. This has lead to increasingly efficient production lines, a more competitive manufacturing market, shifting manufacturing overseas and many others.
This manufacturing improvement trend has had beneficial results on the customers life through more accessible, more diversified merchandise. It also meant companies managed to sell more, to more people. Companies such as Walmart have grown to their existing magnitude thanks to a wide network of suppliers, providing them with products manufactured at the best possible cost.
As retailers improved on the manufacturing, there was one part that has been left mostly untouched. That was the distribution. Distribution costs have decreased but not dropped.
To get a better view of why, get a glimpse of what are the factors that weigh in the distribution costs basket. Here you have costs associated with getting a product from the manufacturer to the customer. This includes freight, stocking, customs, costs associated with store development and maintenance, marketing costs, customer support and others. This is a very large area and a lot of work to be done.
Today, distribution is changing, and it’s changing fast. As a result, the associated costs will follow.
At the forefront of this change we have several factors, one of which is omnichannel, another being technology and the third being data. This is how they weigh in and these are the areas that will be soon transformed:
Logistics have not been fully transformed by technology. For example, freight has been virtually unchanged in the past decades. Think about it this way: cargo ships are still loaded after excel files are checked, faxes are sent and handshakes seal deals. For a large part, the industry is archaic and it’s but a question of time until it will be transformed. There is a lot of room for disruption and companies such as Freightos have challenged the status-quo and promise 10-17x ROI. In weeks.
And it’s not just freight. Fleets of small vans contractors have taken up the Uber model and are now roaming the streets of Hong Kong to deliver goods the likes of DHL and UPS can’t.
Omnichannel makes possible and desirable a few things the previous retail models couldn’t. First of all it allows for a better inventory transparency and improved shipping effectiveness.
Customers that would otherwise expect orders placed online to be shipped at home with the respective costs and operational challenges, can now just pick up orders in store. Or better yet, they can have the closest store ship these items at home, instead of mixing the order in a large, central warehouse.
Omnichannel also makes possible having just a limited number of products in store and keep the most either in the warehouse to be shipped when convenient or with a supplier. By reducing store footprint companies can reduce fixed costs associated with marketing and distribution of products, thus decreasing costs.
And it’s not just these, the many aspects of omnichannel retail all converge to a decrease in distribution costs and more efficient ways to handle product demand.
John Wanamaker was a retail innovator. He is credited with the fixed price and money back guarantee marketing concepts. Wanamaker was one of the pioneers of the department store and loved advertising. He is also credited with the famous saying :
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
Good thing that was more than a century ago.Marketing is now changing rapidly and unfortunately for some advertising agencies, long gone are the days when the Mad Men of advertising charged millions for concepts that could or could not work.
With the rise of digital commerce and omnichannel retail and the smartphone to bridge the gaps, data is all around. Marketing is now data driven and the half of budget Wanamaker complained about can now be easily tracked. Companies such as Macy’s are investing heavily in omnichannel policies and marketing. The results are clear. While their competition is diving, Macy’s business is on the rise.
Advertising is data driven and marketing costs are constantly improving.
By improving distribution and decreasing distribution costs we have two very important things happening. The first is that companies engaged in improving this area will be more profitable and more inclined to continue on this path.
The second thing is that lower distribution costs mean better prices for the consumers, therefore an improved appetite for consumption. Improved profitability and decreased prices – these are two very strong forces that will shape tomorrow’s retail. And it’s happening today.
It’s impossible to predict the future and basically that’s what strategy is. Based on historic evidence, data and outside factors, companies try to predict how the market is going to evolve and how they can best benefit from this evolution.
While strategy is rarely undebatable and never perfectly executed, it is a very important part in evolving companies. Having a vision and the plan to achieve that vision is what makes companies such as Amazon, Walmart or Apple stay ahead of the competition.
But sometimes things go wrong and strategy mistakes happen. Here are three cases:
Overstock is one of the largest online retailers in the US. It is an Utah based retail company that has a 20 years background in commerce.
The company sells more than 1 million items on the Overstock.com web-store. The products range from home deco to jewelry to electronics to cars to insurance. Did I mention they run a pet adoption online service? And a farmer’s market?
You’ve probably guessed where I’m going with this. Focus is really not their strongest asset. The company has basically organized its strategy around the old “let’s just try everything and see what sticks” motto. This is, of course, the winning formula to tackle Amazon. This and of course Bitcoin, a surefire solution by the company’s CEO to fight the upcoming zombie revolution.
No, really, he actually said that:
“Someday, either zombies walk the Earth or something close to that[…]. Bitcoin is the solution.”
Patrick Byrne, Overstock CEO and Bitcoin Messiah. Source: Wired.
Overstock’s strategy turned “un-focused” to hilarious when it announced its new media service aimed at Amazon’s Prime earlier this year. A bold move one might say, as Overstock is missing a few things called content, digital infrastructure, hardware (think about the Kindle), Amazon’s market share and media know-how. But they did get featured in the Onion a full 2 years before they’ve made the move.
Make no mistake. Walmart is huge. Walmart is on top of the retail food chain (excuse the pun). It has more than 11.000 stores, in 27 countries and employs more than 2.2 million people. The company is the biggest retailer in the world with a revenue of $485 billion.
But that doesn’t mean it should be successful online, does it?
Walmart’s digital strategy is a bit … puzzling, if I may. The company’s “ecommerce” store has been online since 1996, about the same time Amazon started to grow. Unlike Amazon, Walmart.com didn’t really matter in the company strategy until 1999. That’s when the company announced the customers that no orders placed after the 14th of December could be fulfilled in due time for the holidays.
Walmart then decided to spin off that pesky thing called the online store in 2000 and transferred the operations in Silicon Valley, under a partnership with Accel Ventures. The reason, as mentioned in this throw-back article from 2002, is that online is “not where their customer base is”.
After an unusually horrible decision to shut down the store for a month in the fall of 2000, for a revamp, the store was just as bad as before. But it did managed to miss the 2000 holidays season due to a late re-start.
The company eventually realized the blunder and in 2001 bought back Accel’s share in the ecommerce company. Good thing they’ve realized just how important ecommerce was. It didn’t even take long to improve and redesign the webstore: just 5 years, until 2006.
Walmart was also quick to realize it can make a connection between the online and offline channels. In 2007, 11 years after it launched its online store, it launched the Site to Store program, allowing customers to order online and pick up in store.
Blunder after blunder, the company eventually realized the importance of stepping into a new era, one where customers are connected to Walmart digitally. The company has since changed its perception on ecommerce, hired talent and started experimenting with upcoming technologies.
But if there’s something worse than an un-focused strategy and a rigid strategy, that has to be … no strategy:
There are very few cases where the lack of strategy and extensive investments are seen so clear within the same company. Fab is one of these rare fails. The company was founded by Jason Goldberg and Bradford Shellhammer and experimented with some pivots. Five that I know of, mentioned above.
It went on to raise a total of $336 million and for a while it could have been the next Amazon, or Ikea, or Apple, or whatever founder Jason Goldberg thought was the fad of the day. Eventually it went on to be a huge whole in the investors’ pockets and was acquired by an undisclosed sum in march 2015.
The whole story is outlined in this cautionary tale. It could be a very funny strategy fail if it weren’t such a sad story for investors, founders, employees and in the end – the whole online retail market. Fab is the story of what could have been, if someone were to lay out a smarter strategy. Or some strategy for that matter.
For a very long time, retailers used a linear approach to the supply chain. It meant that merchandise flowed in just one direction. Products would move between the manufacturer, the wholesaler, the retailer and onto the sales channel. This sales channel meant the brick and mortar store, in all its variations, for a very long time.
With the internet revolution came the concept of eCommerce, where customers would place the orders on an internet store front and they would receive it at home. Medium and large retailers used the same method of silo-management to the online store.
The "silo" approach meant that each new sales channel would be treated as a separate silo, independent from the other stores. That worked for the previous concept of brick and mortar stores, so it had to work for the ecommerce approach, too, right?
Not quite. The concept of having an online store work as a separate operation doesn't fit the profile for the new consumer. The fact is that there are very few exclusive online shoppers. People like to spend time in stores, touching merchandise, they spend time on social media, get informed, place calls to ask for info and generally live in a complex world that mixes online and offline experiences.
Customers demand new options from retailers, things such as "buy online, pick-up in store", "order in store, receive at home" – just some of the many challenges retailers face right now, trying to connect with the new consumer.
To go from being a retailer to being an omnichannel retailer, companies need to step up their game. And it's not just marketing or hardly operational shopping programs. Customers demand a real change in the way they are engaged. Companies such as Macy's have invested in creating experiences that handle multiple journey maps for their customers and the results are satisfying.
To achieve this, retailers need to adopt an omnichannel supply chain. The biggest difference between this type of approach and the previous is the fact that it is omni-directional. Whereas the classic supply chain was mostly linear, flowing from one place (manufacturer) to the other (customer), the omnichannel supply chain flows across many boundaries.
To achieve relevance in the omnichannel age, retailers need to be ready to handle:
The omnichannel supply chain is not easy to achieve. Medium and large companies are caught up in a web of systems and processes that may have worked 10 or 20 years ago but they are now obsolete. The linear approach to supply chain management and marketing is really not their best bet. The change in consumer behavior is irreversible and the omnichannel supply chain is one of the most important changes in today's retail.
What does it take to turn a store visitor into a loyal customer? Any retailer that can answer this question is surely a leader in its respective niche but it is not a simple question.
There are a multitude of factors at play and we thought we might ask the experts. We’ve reached out to George Skaff, CMO of TouchCommerce, the leading company in omnichannel engagement. George has over 25 years of marketing leadership experience in the computer industry. Prior to joining TouchCommerce, he has held marketing leadership positions with SGI, DigitalPersona, Wyse Technology and NEC Computers.
George Skaff: TouchCommerce is the innovative leader in omni-channel engagement solutions. We have been in business since 1999. Our company was built with a results-driven retail perspective to replicate and enhance the in-store customer experience online, with chat technology. We have award-winning technology platform and mobile solution with an emphasis on data, self-service and automation. We are focused on Enterprise Global F1000 eCommerce companies. TouchCommerce real-time customer targeting engine leverages “BIG DATA” to target and engage customers in a personalized digital assistance experience on desktops, tablets and smart phones across the omni-channel environment. TouchCommerce operates in 16 countries across North America, EMEA, and Japan.
With mobile revolution happening right now, the way customers want to interact with retailers is changing fundamentally. There is a shift in customer behavior underway. You can no longer rely on them dialing your number when they have a problem and talking to a customer service agent. There are hundreds of ways they could contact you and they may well try several different ways to get the information they want. However, make no mistake: your customers are not aware that by clicking out of a webchat session and picking up the phone that they are ‘changing contact channel’. They do not care. All they are concerned with is getting their query answered in the easiest, quickest way possible. And they want their experience to be consistent across all these channels.
Combined or stand-alone, the fully-integrated custom solutions we create for customer acquisition and customer care and retention contribute to an enhanced online, mobile or in-store customer experience and increase self-service in the omni-channel environment.
George Skaff: To maintain consistent consumer experience, it’s vital that retailers start thinking in terms of the customer journey and the conversation you are having with them, rather than the platform for that conversation. In order to have a cohesive, joined-up omni-channel offering, it’s essential that the different channels are integrated at the back-end. There should be one view of each individual customer, no matter which channel they have chosen to contact you. Ideally, this view should be presented to the agent in one, single desktop application too, so when a customer calls, the agent has a clear idea of their previous interactions and account details, and can quickly access information to help solve their query.
When choosing a software provider, retailers should consider if the solution:
George Skaff: The Dynamic Targeting Engine is the core of the entire RightTouch platform and underlying technology. It tracks all user behavior and website variables to identify optimal engagement opportunities. This highly flexible tool can be configured in limitless ways to identify any group of users and target their specific needs. All direct consumer engagement activities are managed via this robust engine.
By using Our Dynamic Targeting Engine, you can focus your energy and resources on the customers by presenting them with the products they want most. This targeting tool allows us to identify consumer behavioral attributes in order to launch any one of our products with the right context, including chat, guides, offers, survey invitations or any other rich content offering a targeted engagement experience online.
The Targeting Engine enables:
George Skaff: The retailers should be very specific in selecting the metrics to measure their omni-channel marketing performance, and not to focus on metrics for each individual channel. Engagement metrics should include consumer visits, consumer interactions, conversion ratios, LTV, incrementality in all of the above measurements, as well as customer satisfaction.
George Skaff: Several innovations are happening as we speak, among them ability for the consumer to effortlessly move across the channels, as well as the ability for the retailer to follow consumer journey across the channels. Retailers are starting to pay close attention to consumer’s shopping journey online and offline (in-store.) Products like TouchStore from TouchCommerce are a good indication of the future entails.
George Skaff: Apple Pay improves the ability of the consumer to effortlessly complete the purchase, but it does not change the purchase paradigm in principle. While there has been other payments method (Google, Amazon, etc.), Apple massive outreach in promoting this is helping the fast adoption.
George Skaff: The store of the future will be like a country without borders, where consumer moves effortlessly across different channels executing their intent to purchase. The thing to remember is that customers do not generally have a preferred channel. They will just pick whichever one they think will get them the result they need most quickly with least effort.
Consumers want choice – they will want to use different channels depending on their needs – and the ease with which they can contact a company increasingly forms part of the criteria for choosing one brand over another.
For example, a customer might call their mobile provider to find out if they were on the best price plan, but they will go online to see their current balance – and then turn to Twitter to chat with an agent about data limits abroad.
Another example is when a customer is doing their research online on their laptop looking to purchase a new TV, they check with their friends on social media regarding their friends recommendations on their tablet while sitting on the couch at home, then search for best prices using Amazon mobile app, and still will end up in a physical store to touch the product before they buy, and they might get engaged with the brand chat agent while in the store, ending up purchasing the TV of their choice in the store but using the coupon pushed by the chat agent to their mobile device.
They say a picture is worth a thousand words. Add a cool filter in Instagram and it may be worth more. So luxury retailers have taken up on the chance of showcasing offline products in the most popular photo-sharing app in the world.
It’s definitely worth it. With more than 300 million Instagrammers, the social network is a colorful powerhouse, just waiting for fashion retailers to tap into it. And it’s not just the numbers. From Taylor Swift to Robert Downey Jr everyone who’s anyone is walking the red carpet of Instagram.
Along these stars came the most popular and desired luxury brands in the world. With social incentives, aspiring fans can become customers and customers will become brand lovers. So photo sharing on Instagram is a go for brands looking to connect online and offline sales and marketing.
Let’s have a look at these three most effective brands on Instagram:
Hermes is unconventional and creative, focusing on outlining the brand identity without being too pushy. It’s rather “modest” fan base of just over 670k followers shouldn’t be bigger either. After all, Hermes addresses a special kind of audience – the kind that doesn’t come busting doors in look for discounts. They discreetly shop online for $11.300 leisure bicycles and $7.600 bags.
You’ve spotted that special kind of turquoise and the must-have diamond ring that’s globally recognized. 1.8 million Instagrammers are constantly connected to the stylish social media outlet Tiffany’s employs.
The Instagram page is a mix of colorful illustrations, products showcased in glamorous yet simple and stylish photos and fashion advice from models and designers. The whole philosophy is outlined by Francesca Amfitheatrof, Tiffany & Co. design director: “I believe there is great power in simplicity.”
Just like its brick and mortar stores, as well as the online store, the Instagram page is a stylish, simple and elegant work of art.
Burberry is almost unbeatable in terms of using technology to connect to its esteemed audience. Digital retail is so important to Burberry that they’ve designed a flagship store that resembled their website, in 2012. Talk about omnichannel.
Digitally connecting to their customer has been the main ingredient to Burberry’s recent growth and Instagram was not bound to be left behind. The 2.4 million followers can get a glimpse in the lives of the rich and beautiful through Burberry’s Instagram channel.
Models, carefully crafted products and celebrities all mix to give followers, customers and aspiring Burberry product owners, that warm “I’ve got to have this” feeling.
And once that feeling kicks in, the monogramed scarf is just a step away in the online store, ready to be picked up in the closest store. Or sent home. Worry not, there’s free shipping and returns.
Achieving clarity in Omnichannel Retail is no easy task. Retailers, especially large ones, need to get all departments, all sales channels, suppliers and fulfillment operations on the same page.
And that’s just the first step. Then comes the IT integration where legacy systems are connected to a central management tool that handles at least inventory transparency, CRM and order management across channels.
Omnichannel Retail is not mainstream right now. It is still in its infancy. Sure, some are more advanced than others and some companies are building the future faster than others. But the truth is omnichannel is a need to be fulfilled for most retailers.
And here come the knights in shiny digital armor to rescue the day. The following 5 vendors have built omnichannel retail capabilities ready to be plugged into existing retail ecosystems. They are now the go-to elite for large retailers in need of upgrading their IT infrastructure.
Shopatron was founded in September 2000 by Ed Stevens and Sean Collier. Since then, it has evolved into an integrated SaaS platform that connects offline and online orders management, making it easier for customers to purchase from retailers.
The company offers specific omnichannel solutions, most important being:
Shopatron targets midsize retailers and its main benefit is the advanced order routing. The platform combines online and offline sales and claims inventory visibility across channels.
NetSuite was already rocking a great SaaS ERP product and a fully flavored ecommerce solution when it acquired OrderMotion in 2013. Now the company can provide inventory management across channels, a single customer view, business intelligence data and omnichannel order management.
The company, among the first to bet on SaaS platforms, is now one of the fastest growing companies in the field, closing 2013 with $414 million in revenue. The revenue is up 34%, which is a big win for the company initially backed by Larry Ellison.
NetSuite started as NetLedger, envisioned as an online accounting tool, that later turned to an wider array of company management tools.
The past two years have been very active for NetSuite in terms of omnichannel related acquisitions. In 2013 it acquired Retail Anywhere, a POS solutions company. In 2014 it acquired both Venda, an ecommerce SaaS company, and eBizNet Solutions, a company focused on WMS (warehouse management system) solutions.
Netsuite has decided omnichannel is a perfect mix when it connects companies focused o separate blocks in the retail chain.
PayPal is not the only jewel in eBay’s pocket as it seems. eBay Enterprise (formerly known as GSI Commerce) is one of the fastest growing and biggest companies providing technology and consultancy for omnichannel retail.
The company delivers four big solutions to its customer base:
Unlike the other companies on the list, eBay Enterprise goes beyond software integration and into marketing and operations. In terms of retail solutions, eBay Enterprise provides support for commerce integration across channels. The company integrates the main sales touch points, with the help of its omnichannel tools:
The omnichannel operations tools cover a lot of ground and can be used in fulfillment operations, customer care and store based fulfillment.
IBM stands for a lot of things and among them it had to be omnichannel retail also. The tech giant offers technology to retailers in need of:
Its Websphere Commerce solution connects both online and offline sales through its different versions. It handles cross-channels inventory visibility, distributed order management and scales as you would expect from IBM.
At the core of IBM’s order management and inventory tools you’ll find components IBM acquired in 2010, when it purchased Sterling commerce. The transaction cost IBM $1.4 billion but brought in 18.000 global customers.
The Websphere commerce is a great fit for large companies and powers some very well known brands, but it is somewhat a not so great fit or midsize retailers.
Hybris, now a part of SAP, is probably the best fit for omnichannel retailing. Hybris is a dynamic company focused on growth and delivers constantly on market needs.
The omnichannel solution is scalable and built on a modern and flexible architecture, that allows interaction with all interfaces. Its order management solution, inventory and commerce application are built to work together seamless and easily connect with other systems.
Hybris’ solutions work both B2B and B2C and can handle inputs from multiple inventory sources and outputs on multiple sales channels. Moreover, the solution features a central content management system that enables retailers to push content across a multitude of interfaces.
As of 2013, Hybris is a part of SAP, making it a global powerhouse connected to the world’s most popular (well, at least used) ERP.
So that’s it – these are the best of breed. Of course, there are more out there that deliver great products and I could name Intershop, Demandware or even Oracle. They, however are less inclined to omnichannel or have a really new found love for omnichannel retail. The vendors mentioned above are leading the pack in omnichannel retail implementation, especially for large customers.
Previously, the company used Commercehub’s marketplace technology to connect its vendors to its Ecommerce sales channels. With this new development there are two big things happening:
The first and most important, Staples moves technology development in house. This is a clear sign the company is shifting from a brick-and-mortar centric strategy to a technology centric strategy.
With its legacy store network already in place, growing online sales and the new marketplace, Staples can compete with Amazon on an omnichannel level. Its vendors can now access its online sales channels but with future improvements, their products will be probably ordered offline as well.
The second biggest change is in Staples’ logistics strategy. So far the company relied heavily on its own fulfillment centers. Now orders are increasingly shipped by vendors through drop shipping. This is the most efficient way for Staples to increase its product count and it seems to be working: Staples increased its product count from 30 000 in 2012 to 200 000 in 2013 to a whooping 1.5 million SKUs in 2014, according to Internet Retailer.
As Internet Retailer reports, Staples is still curating the vendors’ offers but it will soon switch to a fully integrated platform in 2015. Even now the new tool allows vendors to receive orders, see real-time alerts, access analytics data and manage inventory, without the cost Commercehub’s technology implied.
Belly is a startup focused on loyalty. It launched in 2011 and has since grown to be active in 18 markets and more than 6500 locations. It aims to reach 10 000 locations by the end of this year and as things look, it might just do so.
The product works by allowing customers (aka “Belly Members”) to “Belly” every time they visit a “Belly Business”. That basically means scanning their unique QR codes every time they visit a partner location. In exchange, customers receive loyalty points that can be used to claim rewards.
The system is part old-school loyalty program and part gamification. Belly Businesses can encourage customers to keep coming back by adding increasingly valuable rewards, redeemable with an increased number of points.
The product is free to use for customers. Locations that feel the product is right for their marketing efforts pay a subscription fee and get fitted with the nice iPad used to interact with visitors, belly cards and access to digital features in the app.
Features include data on visitors, social media marketing options, access to reputation management on Yelp and the ability to attract new visitors with the help of Belly Bites. These are special rewards offered by locations targeting new customers. By gathering data on users, Belly can recommend the right customers with special rewards based on previous behavior.
The company has been among the first to be featured in Apple’s Passbook and is also integrated with Google Wallet and Samsung Wallet. With these integration up its sleeve as well as its game-like approach, Belly can become one of the leading solutions in loyalty programs.
But to do that, it will have to connect both offline and online experiences, providing a truly omnichannel loyalty approach, ready for the next of innovation. That is not going to be easy as what may today means payments , tomorrow can include loyalty. Apple, Google and PayPal are hitting each other hard in this market. They can surely tackle smaller companies.
But the other way around is also an option. Loyalty can turn to payments so maybe there’s more than meets the eye for Belly.
Think about this – is there actually such a thing as an online customer? Or an offline customer? Or even a mobile customer? Definitely not. Consumers like to skip sales channels and fulfill their goals in the best way possible. Your customer can research for products online, ask friends for references on social media, test them in the brick and mortar shop and finally purchase in the web store. So it makes no sense treating customers as stuck in a sales channel. The Omnichannel experience, where every consumer can use given sales outlets as she sees fit, is now pretty close to utopia for many retailers.
But others are dedicated to making omnichannel a reality for their customers.
“Our goal remains to help our customers shop whenever, wherever and however they prefer, and to use the entire inventory of the company to satisfy demand,” Terry Lundgren, Macy’s CEO
As other retailers are facing declining sales and decrease in customer loyalty, Macy’s seems to be thriving. The company has seen recent increase in sales overall and a sharp increase in online sales (48% in 2013).
How did they do it?
Macy’s has lots of experience in customer service but the digital revolution took most retailers by surprise. Macy’s has dedicated a large portion of its yearly budget to improving customer experience through technology.
The company’s cost of sales rose to $139 million in 2014 second quarter. This increase was caused by “omnichannel business and the resultant impact of free shipping” which means Macy’s is betting big on its customers’ experience.
The results are great. Just short after Apple Pay was announced, Macy’s announced it will implement the technology in all stores. The company already allowed customers to store their coupons on the Mobile Wallet, that could be accessed anywhere – online, on mobile devices or in store.
Macy’s also partnered with Shopkick to increase brick and mortar traffic in its New York and San Francisco stores and now the company is rolling out the shopBeacon technology. The beacons give retailers the ability to push information directly to the consumer’s mobile device. It can welcome shoppers as they walk inside Macy’s stores, send out specific deals and recommendations and can be used as a way to redeem loyalty rewards.
Interactive kiosks were used to improve customer experience throughout brick and mortar stores. The kiosks vary in size and complexity, ranging from simple browse and order applications to more complex features. The “Beauty spot” kiosk, for example, improves Macy’s cosmetics section with an electronic make-up consultant. The system advises potential buyers on makeup and skin products that are best fitted for their needs.
Even store associates are empowered when answering customer needs. The company is now testing mobile and tablet POS that can connect to real-time inventory and offer quick responses to customer needs.
And if we’re talking about real-time inventory, you should know that Macy’s has been working hard at improving cross-channel operations:
In 2010 Macy’s piloted a store-fulfillment program in 10 stores. The idea was that if the company can connect inventory from individual stores, it can manage inventory better. As merchandise was sold sold online, stores would be able to ship orders directly, depending on their inventory levels or allow for in-store pick-up.
The program was a success and the company increased the number of stores that could ship orders. 13 more stores were added to the program in 2011. In 2012, 292 stores were shipping orders. In 2013 – roughly 500. The process will be finally completed in 2014 when all 800 stores will be able to fulfill customer orders.
As these stores began fulfilling orders two things happened. First – orders could be shipped faster, with the ultimate goal of same day delivery, thus improving customer experience. The second big change in Macy’s fulfillment was that using stores meant inventory turnover greatly improved.
With store associates empowered with real-time inventory data, orders began to increase. The store associates could locate items in other stores, and ship that item from that point, directly to the consumer’s requested address.
Macy’s discovered that the nearest store may not always be the best choice to ship the product. Sometimes a product sold in point A could have a really slow turnover so it should be shipped whenever possible. On the other hand, the same product could be in high demand at point B, closer to the customer.
The company didn’t stop here. With stores able to fulfill orders, the Order Online / Pick Up in Store program began in 2013. It was first tested in 10 stores during fall 2013 and began rolling out to all stores in 2014.
It’s not just the stores that improved their fulfillment functions. Macy’s is now expanding its direct-to-consumer fulfillment center in Goodyear to a mega-facility of 960 000 square feet which will be soon followed by an even bigger fulfillment center in Tulsa, in 2015.
So Macy’s is quick to implement omnichannel policies but is it worth it?
It’s worth it, all right. As you can see in the chart below, Macy’s revenue has been steadily rising, as opposed to some of its main competitors. It seems that 2010 was a real turning point for the company. And what year is that? Right, the year the company began to implementing omnichannel retail.
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