Omni-channel Retail - Bridging the Digital and Brick & Mortar Divide

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Information about Omni-channel Retail - Bridging the Digital and Brick & Mortar Divide

Published on March 11, 2014

Author: PepperConn



Ok, so you have a website, facebook page, even mobile apps, but how is that helping you to engage your consumers when you need it most… when they are at your outlets!

I mean how do you drive footfall and sales from digital to your brick & mortar channels? How do you identify your consumers, personalized that engagement and get them to buy before they step out?

And we don’t mean spamming everyone with the same promotion at that outlet, but personalized according to their profiles, transaction history and location. Better yet, it’s all automated, you really don’t want to be pouring through and interpreting heaps of customer data.

In this presentation, I share the challenges faced by retailers, shop owners, F&B and mall operators in bridging the digital and brick & mortar divide. While each solution is unique to your retail business, vertical or consumer behaviours, it is about breaking down the silos that exist in your consumer touch points, enterprise solutions, best practices and how TAO OF SHOP can help you to bring it all together.


• Retailers with full digital marketing suite : social media, mobile apps, digital loyalty and eShop • Retailers starting small : website, maybe eCommerce and Facebook, and wondering if they should go further. • Retailers with little emphasis on digital : wondering if they should take the plunge, if so, how far and when to start? 3 #1 Challenge Retail Sales : no significant impact, despite having facebook, eCommerce, digital loyalty, email marketing, etc. How do I justify the ROI?

Retailers • A single customer view across all platforms - integrating customer and shopping data with behavioural profiling, preferences, etc. • Personalized content, coupons, promotions, pricing, etc. • Communication to the consumer at any channel • Integration of frontend and backend operations 4 Acrossalldigitalandofflinechannels Consumers • Single brand experience across all channels • Recognized, intimate, personalized • Consolidated rewards • Choice to purchase and collect from any channel • Less spam, relevant promotions RetailerConsumer

• What is the most important goal to become a better omni-channel retailer? • Allow the Customer to purchase, take delivery through channels of their choice • Create a single brand identity across channels • What’s getting in the way? • Don’t have a single view of the customer across channels • What’s your biggest barrier? • Consolidate our customer data across channels • Gaining better insight into cross-channel customer behaviour, in order to prioritize • 24% are budgeting for a single customer interaction platform that crosses channels. • With Marketing taking the lead role on Omni-Channel 5

6 Website / Mobile Apps • Corporate centric • eCommerce (?) BUT • No community, no buzz • Poor stickiness • “eCommerce is only 10% of my total revenue” Facebook / Twitter • Social, communal, viral • Lots of buzz, casual, fun • User generated content • Lots of stickiness BUT • No eCommerce • Challenge in driving sales to retail • ROI????? Retail / Outlets • Great visibility • Human traffic + sales BUT • Footfall is a number of unknown customers. • No way of identifying them at the entrance • No engagement while in-store. • Conversion is a mystery. • No personalization

7 Facebook Drive Sales



10 • DON”T be a sales or marketing person on social media • In its earliest days, there was a face associated with Ford. In recent years, not so much. • We realized that with social media, we had an opportunity to begin to humanize the company.” Scott Monty Head of Social Media, Ford Motor Company

11 Centered on what your brand is passionate about

A Social Media Campaign about Healthy Living Targeted at Women 12

Business(What) 1. Engage and sustain customer relations (loyalty) 2. Increase awareness and apply OSIM’s brand message(s) – well being, healthy lifestyle 3. Increase sales of OSIM products targeted at Women. SocialMedia(How) 1. Socialize content and touch points through personalization and conversation tools. 2. Build lifestyle-centric spaces online that features women’s lifestyle content created by talents / brand ambassadors. 3. Converge sales channels, promotional activities and product placements/reviews to be linked to social media activities. 13

Strictly Confidential & Proprietary ©PepperConn LLP14 Homemakers Young mums, mothers to be, stay-home mums. Care givers, family focused. Tai-tai lifestyle. Finding purpose without having to work. Health Fanatic/ Gal Next Door Relationship focused. Friends, colleagues, dating. The one whom people go to for a shoulder to cry on. Health & fitness Focused. The Independent Female Managing all on her own. Living life to its fullest. Will try anything once. Street smart. Corporate go-getter. Results oriented. Janie AprilGladys

• Former air-stewardess • Eligible bachelorette • Social network : 300 friends on FB • Fame Awards finalist 1998, ex-model • Passion: shopping for eclectic fashion and cosmetics found all over the world • Known to close friends as Beauty Encyclopaedia • Takes on the car sales and real estate industry after 5 years with Singapore Airlines. • Her motto: “Live life to the fullest. Try everything before you die” • Combats work stress by tanning at the beach with loads of sun block. • Enjoying a glass of wine over good conversation. • Rich social life and occasional night out at clubs Name : April Lee Age : 33 years Occupation : Realtor

16 Content&Context - Balancing work, and personal demands - How to maintain shape and health in a stressed out, time limited environment Connections - Executive health clubs - Self improvement workshops / seminars Conversations - Poll on the best executive lunches - Managing bosses and subordinates - Best time management practices Conversion OSIM self- maintenance and health products – massage chairs, family products, uZap. Target audience : PMETs, Middle – Senior management executives

Nov Dec Jan Monthly Themes Keeping in Shape A time for Family, friends and yourself A Whole New You Weekly Themes 1. Shaping up 2. My Problematic Areas 3. The Low Down on Gym Membership 4. My uKimono Angle 1. Christmas – time for giving 2. A time for Family 3. A time for Friends 4. A time for yourself 1. Living life to the fullest, in tune with the latest 2. Lengths taken to look and feel good 3. Best buys and best hangouts 4. Latest Fads 17

• November’s Theme : Staying in Shape • Product Focus : uKimono 18 April Janie Gladys Week 1 – Shaping up in transition Transition from Flying days - Complimenting Active lifestyle though fear of age catching up Flying days Slowing metabolic rate Flying days Post natal weight loss Week 2 – My Problematic areas Good genes, eat lots but yet slim. However, need help with spot reduction. Help! I’ve got a big butt. Rubba tum tum. My hubby’s waist line will need two uKimonos. Week 3 – The Low Down on Gym Membership Alternative and fun ways to work out – dance classes, wake boarding, etc. Hit the road Janie – marathon training. It’s fresh air, get to see Singapore from a different perspective and it’s FREE! No Pain, No Pain. Forget about the Gym. I just need to get to those problem areas. Week 4 – Progress update on uKimono usage. Contest Topic Progress up on uKimono’s impact on their problematic areas, etc. Contest : Tell us someone you know who you think really needs uKimono. The most interesting article wins. Suggest starting contest in Week 2 and ending by Week 4.

19 Content - Personal Angle Connections - Lifestyle Content Conversations - Invite response 1 Challenges staying in Shape as a busy executive. No time to hit the Gym. Do you really use that Gym membership? My friends who signed up for memberships don’t use them. Best suggestions on time saving methods to stay in shape. Follow up article : try the OSIM ukimomo Personal Blogs OSIM Blog Article OSIM Blog Personal & Corporate E-commerce / sales

#1 Drive (Retail) Sales Driving sales through Social Media, especially businesses with physical retail outlets #2 Leverage on Advocacy 50K ‘fans’ means little, 5K advocates means the world! Recognize, Reward and Leverage on Advocacy #3 Personalization & Consumer Insights X thousands of Fans, but no individual insights, w/o insights, you can’t personalize. #4 Single Experience, Multiple Devices Creating a social AND personalized experience for the consumer regardless of which device and platform they access from 20


22 Singapore eCommerce •Market size • 2010 : S$1.1B (66% from middle income >$4K) • 2015 : $4.4B •1.2 Million Online Shoppers (> 18 yrs) • Average Spend per head : $1,492 •40% from local websites


• Centralized fulfillment and warehouse, cheap rent • No GST or consumer taxes • Online stores open 24x7 • Borderless • Rich consumer data • Scalable • Quick deployment to market(s) 24 • High rent • Retail staff cost and challenges • Store opening times are not always optimized • High cost of entry to regional markets • Little consumer data Online Stores Brick & Mortar Stores



27 bestseller list, to create a mass market hit small royalty on a huge range of products profitable, successful niche product. Not a product for everyone, certainly, but among those that care and are choosing to pay attention, a fantastic choice.



1: Store Locator 2: Product Availability 3: Shipping Options 4: Store Pick-Up 30 Four options need to be available close to the product page's call-to-action or "add to cart" button: Source -

31 • 55% of eCommerce carts are abandoned due to high shipping cost • Address expensive shipping issues by enabling easy collection from store or lockers • Savings from merchant fees from payment gateways passed on to consumer



34 • Total sales from mobile : 20% • Growth Rate (SG) : 20% monthly • Registered Users (SG) : 900K • Typical customer profile : 27 yrs, 75% female Source : PayPal Qoo10 mobile application for Asia Pacific : • 64% are Singaporean users • 37% of total mobile sales by Singaporeans • Qoo10 SG holds the highest ratio of sales to country size in Asia. 2013 : half of all online shoppers are mobile shoppers (1M) 2015 : mobile commerce expected to be worth S$3B

35 • 7.8M mobile phones, 150% penetration • 43% choose mobile over friends • 39% choose mobile over pc / laptop • 60% multitask on mobile while watching TV • 84% check mobile when they wake up in the middle of the night 8121% Growth in Instagram Users July’11 – July’12


37 Website / Mobile Apps • Corporate centric • eCommerce (?) BUT • No community, no buzz • Poor stickiness • “eCommerce is only 10% of my total revenue” Facebook / Twitter • Social, communal, viral • Lots of buzz, casual, fun • User generated content • Lots of stickiness BUT • No eCommerce • Challenge in driving sales to retail • ROI????? Retail / Outlets • Great visibility • Human traffic + sales BUT • Footfall is a number of unknown customers. • No way of identifying them at the entrance • No engagement while in-store. • Conversion is a mystery. • No personalization

38 “ I need a way to convert my consumers when they are already in my store!” Simon Siah Owner, LifeCycle

• 40% of shoppers are showrooming • Small savings makes a difference • 5% savings = 60% will leave the store • 2.5% savings = 45% will leave the store 39 We will have to start downsizing our stores over the next five years as customers shift to e-commerce. On their smaller stores: “When you combine lower rents, lower build out and a smaller total footprint with high sales per square foot, it’s a very powerful economic model.” Walter Robb, Co-CEO “We’re looking for more ways to combine our e-commerce business into our bricks- and-mortar stores to create an integrated, multichannel shopping experience for our guests.” Daniel Duty, Director of Enterprise Strategy “The big box store is not the right concept for the future.” Robert Dutton, CEO Retailers are reviewing their strategy

40 • Retail is still the holy grail and the highest barrier • Consumers still love the retail experience • Omni-Channel is the only means of differentiation against pure online competitors, if they can effectively integrate the store with online • And against other retail competitors who are only single or multiple channel • Omni-Channel evolved out of a response to showrooming




44 “In reality, the physical retail world and an online retail world are increasingly integrated - mobile internet and the in- store experience.” Ron Johnson, former VP of retail for Apple, CEO of JC Penny

Retail’s changing landscape – omni-channel customer experience45 Present Future


47 • Embed coupons to digital and social content as a call to action • Enable and reward consumers for sharing coupons to increase viral element • Enable coupons to be easy to retrieve and use • Track and validate your coupons! Source : First Data 2013

• iBeacon (iOS / Apple) • Qualcomm’s Gimbal (Android) 48


• Reward for Advocacy (Social Rewards) • Your biggest advocates are not your most loyal or biggest revenue contributor • Biggest advocates are mid tier revenue contributors • Advocacy metrics are influence, personality and network size • Rewards for purchase has tangible ROI but does little to increase share of voice 50

51 Shopkick helps retailers drive $110M in sales in the 1st year of operations – IBT, Jan’12

52 Breaking Down the Consumer Journey into 4 Key Functions 1

53 Retail Analytics / BI Multiple Enterprise Dashboards and Platforms to manage each one 2

54 Retail Analytics / BI How do you link them all into a Single View or Database? 3

55 Retail Analytics / BI How do you integrate all of that into your consumer touch points? 4


57 Omni-channel Transforms retail into a social & omni-channel experience. Engage, Sell, Reward & Service your customers In-Store & anywhere.

58 Engage, Sell, Reward & Service the Consumer Anywhere Drive footfall & sales from Digital to Physical Shops Single Consumer ID & Interface Single View of Customer Across both Digital and Brick & Mortar Channels Gain Consumer Insights to transactions, Profile, Location Personalized Promos, Up-Sell, Cross-sell

59 In-Store Web, Mobile & Social Media • News & Promotions • Coupons • eCommerce with payment • Reward Points & Redemption, Membership Card • Assisted Selling • Personalized Promotions

60 Your Branded Mobile Apps / Web Powered By Detects Consumer In-Store Tao oF shop Store-Assist App (In-Store) PersonalizedPersonalizedPersonalizedPersonalized PromotionsPromotionsPromotionsPromotions Data Capture, Insights Your Website Powered by Tao of Shop, Facebook, Twitter Tao of Shop Admin Dashboard Database Publish, Sell, Reward Customer Service & Assisted Selling All-in-One Digital Solution, we provide you with : • Your own branded mobile apps (Android, iPhone, Mobile Web) • Integrated webpages into your existing website • Integration with your Facebook & Twitter pages • Your own database, content and account mgmt Consumer

61 ADMIN DASHBOARD - POSTS • Create once and publish to all - your Brand’s Website, Facebook & Mobile Apps • Embed coupons in posts to drive traffic and sales to eShop or physical outlets • Automatic notifications when customers are near your outlets - Personalized Messages with Coupons

62 • Detects Consumers’ In-Door Location • at your Outlets • or Specified Retailers • Auto-Push Promotions Upon Entering outlet • Zonal detection – auto push promotions based on Zones within an outlet

63 ADMIN DASHBOARD - eCOMMERCE Create & manage your product catalogue across your website and mobile apps • Includes Payment Gateway, Orders Management & Fulfilment • Inventory Management • Option to integrate with POS systems • Easy collection in-store with Membership Card • Orders Mgmt • Inventory Mgmt

• ebooking option for services and educational tenants

65 • Virtual Membership Card on Mobile app • Points Tracking • Seniority / Gamification Badges & Ranks • Customize Rewards / Loyalty Program – Purchase & Advocacy Actions • Manage Rewards Points & Redemption from Admin Dashboard

66 • Reward points with Purchase at Point of Sale (POS) • Manage Rewards redemptions Store-Assist App Operated by Retail or Sales Staff at Outlets • Identify customers – scan Virtual Membership card • Service Customers – access to Details & Transaction history • Manage Orders for Collection / Delivery • Coupon Validation 1 2 3


68 Posts Coupons eShopMessages Rewards Create, Publish & Sell from a Single Dashboard

69 Acquire membership & Engage on digital & Social Media 1 3 Engage consumers with QR Coded Ads / Media Drive Traffic to Store 2 Locate Consumers near-by. Auto-push content & Promotions to drive traffic into Store.

70 Scans QR codes on Product displays to view videos, download brochures / Coupons 3 1 Detect individual consumer’s ID when walking into your shop! 1 Earn Points for Shares & Referrals 3 • Drive FootFall by Rewarding consumer walk-ins. 2 Earn Points for Shares & Referrals 4 Auto-Push Personalized promotions / Coupons Based on each Consumer Profile 2 • Consumer Profile • Transaction History • Location

71 Consumer Insights on your Database ! Coupon Downloads, Content Views, Transactions, Advocacy Actions, Locations Personalize Content, Promotions, Coupons, etc. Consumer Data & Tracking across digital & store channels






77 • Social Content • Coupons • eCommerce • Rewards • Retail

• Malls • Supermarkets • Specialty Stores • Lifestyle Brands 78 • F&B • Fast Food • Cinemas • Event Organizers

79 Identify & engage consumers When in-Store : increase conversion rates Gain consumer insights = Personalization + Relevancy 3 Omni-Channel Retail : Engage the consumer anywhere 2 Full Digital Solution across All channels 1


81 Contact us for a demo of our proprietary & patent-pending platform : Adrian Teo Founder & CEO Pepperconn Pte. Ltd. tel : 6509 5880 mobile : +65 821 821 97 email :

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