The Omnichannel Weekly – Edition 3

The Omnichannel Weekly – Edition 3

The Omnichannel Weekly – Edition 3

omni-channel

Welcome to the third edition of the Omnichannel Weekly. It has been a short week for some (thanks to Makar Sankranti) and not for others but, as usual, a lot is happening in the world of retail (and a lot of people are writing about it as well).

Have a good weekend ahead!

SAP Survey Reveals Breaching Data Trust and Slow Service Response Drive Away U.S. Customers

  • 58% of US consumers value convenience as their chief reason for shopping online.
  • 71% of them are willing to provide email addresses and shopping history but not mobile numbers, real-time locations or monthly incomes.
  • In return for sharing this  above mentioned data, they expect retailers to
    • protect their interests (71%)
    • be transparent as to how they use this data (66%)
    • protect privacy in the event of criminal investigations (60%)
  • 79% of consumers will leave a brand if their personal data is used without their knowledge, However 50% of them are okay with giving the brand two more chances before taking this decision.
  • 87% expected customer service to respond within 24 hours while 20% expected the same in 1 hour.
  • 61% chose receiving surprise perks and discounts as their preferred personalized experience.
  • Consumers prefer receiving responses from retailers
    • who have a full understanding of their history (53%)
    • who provide relevant product recommendations (43%)
    • who provide value added services (42%)
  • 61% find brand actions such as too many sales and marketing emails irritating.

Read the entire article here.

Fashion ecommerce firms like Flipkart, Myntra uncover fake product returns

  • Fake products and damaged originals account for 10% of all returns for the online fashion industry.
  • 30% of all fashion products ordered online are returned – this accounts for a reverse logistics cost of about Rs 870 crore per annum. This includes returns-to-origin (RTOs) i.e. products not delivered because of logistics issues or buyer rejections. Myntra’s overall return rates is about 22%-26% with 12%-14% being product returns. Flipkart’s overall returns for the fashion category is 15%-20%.
  • Bad fit and mismatch in texture are the top reasons for returns for the online fashion industry.
  • For Voonik, product returns is 7%-8% but non-delivery of products is 15%.
  • Flipkart, along with Myntra and Jabong, uses machine learning to predict user intent at the time of placing an order and to detect fraud and/or invalid addresses. They expect this to lead to a 2% drop in returns.
  • Voonik uses in-house technology to map appropriate courier services to specific locations and identify customers likely to reject online orders. According to their CEO, this now helps them to make a 20% margin on each shipment.
  • Amazon has filed a patent for a 3D modelling system that would make size recommendations to users. This could help them solve the problem of different sizes across brands as well as size variations within brands as well.

Read the entire article here.

22 Retail Industry Predictions For Brick-And-Mortar Stores In 2018

  • Companies are going to become much more aggressive and interesting as they try to differentiate themselves leading to greater disruption and more delight in customer experience.
  • Retail brands will scale multi-channel with precision using attribution, personalization and targeting.
  • Fluid ways of shopping such as VR enabled product catalogues, voice-recognition assisted shopping and connected households will evolve as the lines between all channels of a business (brick-and-mortar, online, mobile and virtual) will blur.
  • In-store personalization using customer behaviour (past purchases, time of shopping, etc.) and equipping sales associates to see both in-store and e-commerce data will revolutionize retail.
  • Technology such as RFID, beacons, biometric security, face recognition and digital signages will drive practices such as self-checkout, same day delivery, flexible pick up and return and better loyalty programs.
  • Live video shopping technology will help brick-and-mortar stores maximize profitability and allow e-commerce brands to hit the high street.
  • BOPIS (Buy online and pick up in store) will help brands reduce shipping costs and drive customers to stores and also help them satisfy the customers’ immediate needs.
  • Stores will become a key component of the returns process as it becomes bi-directional i.e consumers can return online orders to stores and vice-versa.
  • Stores will move from a pure product distribution model to a more experience-centric one.
  • Rewards based marketing programs will use shelf talkers to communicate to shoppers about posting about products on social media or post purchase reviews which unlocks rewards or discounts which can be used immediately in-store.
  • Retailers will use influencers for in-store activations.
  • RFID technology will allow brands to gather data on and understand in-store customer behaviour by tracking movement patterns, usage of fitting rooms and understanding customer preferences for two similar products. This will be used to drive business decisions, optimize operations and increase engagement.
  • Retailers will use weather-driven micro-moments to improve customer experience, build trust, create brand awareness and drive sales.
  • Faster supply chains will allow brands to have multiple seasons as compared to the traditional 2 or 4 and give customers a greater incentive to come back to stores every week.
  • Big box retailers will launch smaller format stores with specific inventory and more products specific to local customers.
  • Sales associates will be trained to assist customers both digitally as well as in store and thus help make the brick-and-mortar store a touchpoint of the shopping experience instead of aggressively pushing sales and reducing customer delight.
  • Using shopper recognition and historical behaviour data, stores can provide concierge-style services to individual shoppers.
  • Using AR and VR, brand can replicate their in-store experience to a customer within the comfort of their home.
  • More choice in payment options such as offline versions of pay later, contactless payments, pay in installments and self-service will be provide to in-store shoppers.
  • FMCG brands will start opening experience stores to cut out middlemen and interact directly with customers. This not only allows them to get a bigger share of the pie but also market directly to consumers.

Read the entire article here.

 

Planning to set up your omni-channel business? We can help.

 

avishek bm
deleteuser@gmail.com
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