Lacuna Innovation: Omni-Channel Report

VERSION1 / NOVEMBER 2019
UNPACKING
OMNI-CHANNEL
A deeper look at Omni-Channel, it’s
applications, and the role Blockchain
can play in Automotive Retail.

CONTENTS INTRODUCTION TO OMNI-CHANNEL 3
X-CATEGORY & IN-CATEGORY CASE STUDIES 8
TRACKING IN OMNI-CHANNEL 22
BLOCKCHAIN & OMNI-CHANNEL 26

© Lacuna Innovation Ltd. 2019 4
INTRODUCTION TO OMNI-CHANNEL
WHATIS
“OMNI-CHANNEL”?
“Omni-Channel” - a buzzword used so freely in marketing
and sales; but what is it, really? Essentially, Omni-Channel
refers to the multi-channel approach to sales, customer
engagement, and servicing customers in a way that
creates an integrated and cohesive customer experience;
regardless of how, when or where the customer tries to
connect with a brand.
This means is that what the customer experiences should
be uniform and completely seamless as the customer
transitions from one channel to the next; from shopping
online using a desktop or mobile platform, to engaging with
a sales advisor telephonically, to the experience within the
physical store.
Square defines it as:
Meeting people on the channelswheretheyare
shopping and buying, whether it’s in a physical
store or an online store or on social media, and
connectingthedotsbetweenthosechannels.
The PURPOSEis to keep customers moving
around withinthebrandecosystem,witheach
channelworkinginharmony to nurture more
sales and engagement.
(The Omni-Channel Selling Guide)

THEDIFFERENCEBETWEEN
“OMNI”&“MULTI”
The key to Omni-Channel is the seamless experience and
the level of integration between the channels enabling
this. Most businesses already have multiple channels in
place and are excelling within the confines of each channel.
However, if these channels don’t work together, the
customer experience can be frustrating, confusing and
disjointed; resulting in a perceived unclear brand message,
and potentially brand disloyalty.
In this overview of Omni-Channel, we aim to highlight the
technology and various elements that go into delivering an
Omni-Channel experience, and some exciting examples of
others who are owning the Omni-Channel approach.
SINGLE-CHANNEL MULTI-CHANNEL CROSS-CHANNEL OMNI-CHANNEL

OMNI-CHANNEL
ENABLERS
Omni-Channel is made possible with a number of key
elements and technologies that facilitate the seamless and
perceived simplicity of Omni-Channel commerce.
PROGRAMMATIC
COMMERCE
INTERNET OF THINGS (INTERNET-
ENABLED DEVICES AND APPLIANCES)
SEO (SEARCH ENGINE
OPTIMISATION)
ENABLER 5 ENABLER 6 ENABLER 7
PHYGITAL
STORE
ENABLER 1
SMARTPHONE
APPS
ENABLER 2
ONLINE
PLATFORMS
ENABLER 3
SOCIAL
MEDIA
ENABLER 4

AN OMNI-CHANNEL
JOURNEY
DIGITALPHYSICAL
3
In order to see, feel, hear
and experience their
product of choice, the
consumer visits the
physical store - laid out
more like an experience
centre.
A click-through link takes
the consumer to the
website, where the
consumer can create a
profile and explore the
brand and offerings.
2
4
Enabled through
beacons and NFC tags,
for example, the physical
space is digitised for
improved consumer
interaction and seamless
engagement.
5
The consumer is taken
to the “configuration and
shopping” section of the
app they have already
installed - and finalise
their purchase.
6
The IOT-enabled product
is linked to your account
and profile on the app. It
tracks and monitors your
usage and behaviour -
sharing stats with you on
the app.
8
Complementary offerings
are delivered directly to
the door of the consumer.
7
Data collection from IOT-
enabled devices ensure
the supporting services
and complementary
offerings are ordered
according to the
consumer’s preferences.
PRODUCT IS
PURCHASED
The consumer starts
interaction with a brand on
social media - an instagram
post, a snapchat story or a
shared video on facebook.
1

CROSS-CATEGORY &
IN-CATEGORY CASE STUDIES

CROSS- AND IN-CATEGORY COMPANIES USING OMNI-CHANNEL
CASE STUDIES

STARBUCKS
The International coffee brand uses
Omni-Channel to create a seamless
and simple way to manage and drive
customer loyalty.
Starbucks uses their app as the central
touchpoint for their Omni-Channel experience
housing customers’ loyalty cards, gift cards, and
special offers and promotions. The app also
acts as a store locator, and allows users to send
gifts, order drinks ahead of time, browse the
menu, and view the songs being played in store
while adding them to their own playlist through
Spotify integration.
KEY RESULTS / IMPACTS
Of transactions made
in 2017 were via the app
Of orders in 2017 were made using the Mobile
Order & Pay function to skip the queue
Growth rate in adoption
of payment via the app
30%
9%
15%

OMNI-CHANNEL ECOSYSTEMS
STARBUCKS
ORDER DRINKS
GIFT E-CARD
SPECIAL OFFERS
& PROMOTIONS
SPOTIFY
INTEGRATION
CONSUMER
STORE
DESKTOP
APP
STORE
LOCATOR
LOYALTY
PROGRAMME

BURBERRY
The improvement in reach achieved using
WeChat for a bag launch
Of orders in 2017 were made using the Mobile
Order & Pay function to skip the queue
Revenue doubled in last
5 years to £2.3 Billion
3x
40m
2x
Burberry, the iconic UK luxury fashion house,
has pursued an Omni-Channel approach
since 2006 as they aimed to become the first
fully digital luxury company.
The London Burberry store represents the best
elements of the brand’s Omni-Channel strategy with
features that blend the online and offline experience.
Customers can enter with items already saved to
checkout from their online account; clothing is
embedded with RFID tags which can be read by
the mirrors and screens throughout the store; and
payments happen while seated on a sofa, to replicate
the at-home shopping experience. Catwalk shows are
live-streamed on a 38 sq m screen that dominates the
main floor. Music has become a central theme in the
brand’s Omni-Channel strategy. The new store has
420 speakers concealed around the main room, and a
hydraulic stage for live music.

BURBERRY
ORDER
DELIVERY
INVENTORY
MANAGEMENT
MODES OF
TRANSPORT
TECHNOLOGY
INTEGRATION
STORE
CONSUMER
ADVERT
CAMPAIGN
CUSTOMER
CURATED CONTENT
MUSIC
DIGITAL
SCREENS
FOR INFO
ACCESS
TO ONLINE
CART
DIGITALISED STORE/
CHANGING ROOMS
TAGGED
CLOTHING
PAYMENT
LOUNGE
LIVE STREAM
TO STORES
INSTANT
ORDERS
ONLINE CART PRODUCT
INFORMATION
ORDERS
POST SHOW
WECHAT
RUNWAY
LIVE STREAM
STORESOCIAL
MEDIA
MOBILE
DESKTOP
FASHION
EVENTS

TBCBANK
Increase in loan
approval rate40%
TBC Bank is a leading Georgian universal
bank headquartered in Tbilisi. In order
to remain relevant in a digitally changing
world, the bank implemented a seamless
Omni-Channel strategy to ensure
consumers had the most convenient
experience possible.
To acclimatise to a digital world, the company
implemented an Omni-Channel strategy to help
new customers finish their onboarding process
with flexibility. After beginning the process
through a call center, they can now finish via an
ATM branch, or kiosk.
Decrease in the cost
to originate a loan
Increase the level of automated
processes the bank uses
50%
75%

TBCBANK
INFORMATION
CAPTURING
ONBOARDING
PROCESS
CREDIT
APPLICATION
LOAN
APPLICATIONCUSTOMER
DATABASE
TECHNOLOGY
INTEGRATION
CONSUMER
APP
KIOSK
BRANCH
DESKTOP
CALL
CENTRE
ATM

DHL
Improvement in profit for
the Supply Chain division27%
Deliveries per annum
for BP in the UK
Of US consumers have used
same-day or on-demand deliver
92K
41%
The Deutsche Post DHL Group, mail and
logistics company, have spearheaded
the Omni-Channel approach, particularly
in retail, by releasing reports, and
creating strategic frameworks to help
customers implement an Omni-Channel
strategy into their business.
DHL’s comprehensive Omni-Channel solution
focuses on two key areas: one, the Dynamic
Fulfillment for managing the back end of a
logistics operation; and second, is last-mile
delivery solutions that deal with convenient and
efficient delivery to the consumer.
Seamless inventory
visibility
Flexible warehousing that serves
all the channels: online/offline
and store/home delivery
Warehouses used
for customer facing
activities.
Proactive and personalised
customer management.
IT FULFILS THESE BY:

DHL
ON-THE-GO
PROMOTIONS
CONSUMER
PARCEL PICK-UP
INSTORE
NAVIGATION
ROBOT
DIGITISED
STORE
DELIVERY TO
CAR TRUNK
HOME
DELIVERY
CUSTOMER
RECOGNITION
STORE
DELIVERY
SERVICES
CLOUD BASED
MANAGEMENT
& LOGISTICS
APP
VIRTUAL ADVICE
EXPERT
PRODUCT
INFORMATION
PUSH
BUTTONS
DRIVE-
THROUGH
SHOWROOM
B2C VS B2B
GOODS IN
TRANSIT
DELIVERY
SERVICES
SOCIAL
MEDIA
DESKTOP
CROWD
SOURCED
DELIVERY
DRONE
DELIVERY
DELIVERY
TO TRUNK
WAREHOUSE

DEBENHAMS
Growth in
mobile orders64%
Stores nationwide
fulfilled by DHL
Of online orders
collected in-store
166
31%
Extend cut-off time for next day
and evening delivery with more
competitive delivery charges.
‘Endless Aisle’ service extended to 150 stores,
enabling in-store selection linked to online
orders for home delivery.
Allow for online orders to be
collected locally in store by
customers.
THIS RELATIONSHIP ALLOWS DEBENHAMS TO:
Debenhams, the large UK department store
chain, focuses its attention on a back-end
Omni-Channel strategy. In order to facilitate
this, they have renewed their contract with
DHL for a further five years. Doing so provides
fast store replenishments in line with real-time
trends instead of uncertain forecasts; and
uses sale data to manage stock, support the
retailers online, click-and-collect, and store
replenishment requirements.

DEBENHAMS CONSISTENT
STORE INVENTORY
CLICK &
COLLECT
ONLINE SHOPPING
PRODUCT
INFORMATION
SOCIAL MEDIA
STORE
CONSUMER
DESKTOP
APP
CLOUD BASED
MANAGEMENT
& LOGISTICS
DELIVERY
SERVICES
REAL-TIME
INVENTORY
MANAGEMENT
COLLECTIVE
INVENTORY
LOGISTICS
STORE
REAL TIME
PURCHASING
TRENDS
SALES
DATA

FORDDIRECT
EXAMPLE FROM THE INDUSTRY
FordDirect, subsidiary and partner to Ford Motor
company which focuses on the digitalisation of
the customer journey and digital sales support
of the dealer network, has released an app
designed to effortlessly support the “greet to
delivery” sales experience.
Maestro, an iPad-based sales app that allows
a single salesperson to handle the entire
transaction from vehicle selection, trade-
in valuation, credit app/financing and final
contracting with minimal to no customer
handoff, works hand-in-hand with Ford’s Ready.
Shop.Go online shopping platform.
By leveraging dealer data, vehicle and incentive
data, and a customer’s online shopping
preferences, the on- and offline worlds work
together to create a seamless experience
for the customer.
MAESTRO,
IPAD-BASED
APP FOR IN-STORE
ENGAGEMENT
FORD/LINCOLN
DEALERSHIP &
SALES STAFF
FORD’S
READY.SHOP.GO
ONLINE SHOPPING
PLATFORM

CAPITALONE
EXAMPLE FROM THE INDUSTRY
SEE A CAR,
SCAN THE
CAR WITH
THE AR APP
CAPITAL ONE
MOBILE,
THE
AR-ENABLED
APP
VIEW REAL
TIME
FINANCIAL
AND
PURCHASE
INFORMATION
SHOW WHICH
DEALERS
NEARBY ARE
SELLING THE
VEHICLE OR
SIMILAR ONES
Car shopping is made easy with a new
augmented reality feature on Capital One’s
customer-facing app - point your smartphone at
a car and the app will display pricing and finance
information above the vehicle, in real time.
Linked with the Capital One Mobile smartphone
app and their personal financial information,
existing customers of the financial services
provider can scan any car they come across
and are interested in buying, and receive all
the necessary financial information - including
whether they are pre-approved to purchase it or
not, and
information about which nearby markets are
selling similar cars.
Powered by machine learning and artificial
intelligence, this app enables Capital One to be
nimble and flexible in preparation for a relatively
uncertain future in the automotive industry.

TRACKING IN OMNI-CHANNEL
ENSURING
EFFECTIVENESS
One potential challenge with an Omni-Channel strategy is
working out which parts of a marketing plan are
working best. With such an integrated approach it can be
difficult to work out exactly which advertisemnet
where is contributing to a sales conversion.
Leveraging tracking tools, such as those used by Google
and Facebook, or integrating blockchain into a seamless
Omni-Channel approach aids in addressing this challenge.

EXAMPLE:
GOOGLE
Google launched a new tool for advertisers called Store
Sales Measurement which allows the owner of the
world’s largest advertising display networks to track
the relationship between adverts viewed online against
purchases made in brick-and-mortar stores.
To do this, Google has partnered with companies
responsible for tracking purchase data; which gives it
access to about 70 percent of all US credit and debit card
transactions. This new wealth of data will allow Google to
associate real-life purchases with the ads shown online. The
analysis will be done by matching the combined ad clicks
of people who are logged into Google services with their
collective purchases on credit and debit cards.
ONLINE ADVERTS
PURCHASE
DATA
PURCHASE
IN-STORE
TRANSACTION INFO
(COLLAB WITH BANKS /
FINANCIAL SERVICES)

EXAMPLE:
FACEBOOK
OFFLINE SALES
UPLOADED
OFFLINE SALES
UPLOADED
ONLINE
ADVERTS
MATCH WITH
CONSUMER PROFILE
INDIVIDUAL
CONSUMER DATA
Facebook also tries to do similar analyses to understand
which adverts on the social network are helping businesses
get consumers through the door. Facebook is adding a way
to connect which ads lead to actual sales—at least at the
cumulative level—in stores, or even over the phone.
Although not quite as sophisticated as Google, Facebook
asks businesses to “Upload Offline Events” containing as
much information as possible about in-store transactions.
Facebook will then match this data with online profiles to
establish a link between offline transactions and online
adverts. The measurement tools are just the next step in
Facebook’s plan to connect online with offline. Last year,
Facebook added new tools to let merchants target ads for
nearby consumers, allowing advertisers to see anonymous
users as close as 150 feet away.

BLOCKCHAIN & OMNI-CHANNEL
WHATIS
BLOCKCHAIN?
Blockchain is a decentralised electronic, encrypted
ledger — in other words, a way to immutably store digital
data so it can be securely shared across networks and
users. These transactions can represent any movement
of money, goods or secure data; medical records, for
example, or the assignment of a government ID number.
Using cryptography to keep exchanges secure, blockchain
provides a ‘digital record’ of transactions that everyone on
the network can see. This network is essentially a chain
of computers that must all approve an exchange before it
can be verified and recorded.
Currently, most people use a trusted middleman, such
as a bank, to make a transaction; but blockchain allows
consumers and suppliers to connect directly, removing the
need for a third party. Blockchain networks can be private
with restricted membership similar to an intranet, or public,
like the Internet, accessible to any person in the world.

BLOCKCHAIN & OMNI-CHANNEL
RELEVANCEFOR
OMNI-CHANNELRETAIL
ENVIROMENT
The essence of Omni-Channel is to provide an integrated
and efficient consumer experience that works seamlessly
across a wide variety of channels and formats. So, with
blockchain’s distributed ledger and shared infrastructure,
in combination with smart contracts and its ability to
provide trust and efficiency in the processing of information
across multiple parties, it is perfectly positioned to enable a
successful Omni-Channel ecosystem.
BENEFITS OF BLOCKCHAIN FOR RETAIL
Trust and
transparency
across the Retail
process
1
Enable easy
payments
2
Confirm
provenance
3
Facilitate
loyalty schemes
5
Record
warranties
4
Smart Contracts, in particular, have the ability to add
significant value to the retail environment. These are
computer protocols or agreements that facilitate, verify, or
enforce the negotiation of a contract when an action occurs.
Based on programmed commands, Smart Contracts are
essentially software programmes that execute the exchange
of value, or ownership of property, based on predetermined
commands. Using Smart Contracts to help the automation
of business processes can have huge cost-saving advantages.
Smart
Contracts
6

AUTOMOTIVE,OMNI-CHANNEL
&BLOCKCHAIN
The use of blockchain for the automotive industry has the propensity to be applied across all aspects of the
business; from manufacturing through to retail. For retail, the following applications are particularly relevant:
A blockchain based vehicle
registration system would enable
greater transparency and provide
the various parties involved an
overview of the entire process. This
would allow for many activities to
be automated, reducing processing
time and generating cost savings for
all involved.
A blockchain based system would
allow for the record of a vehicle’s
driving behaviour, safety events, and
service schedule to be recorded in a
shared ledger and accessed by the
relevant parties. This would allow
full transparency regarding wear
and tear, and allow the provider to
accurately assess the residual
value post lease.
VEHICLEREGISTRATION CARLEASING

AUTOMOTIVE,OMNI-CHANNEL
&BLOCKCHAIN
As software and digital services
play an ever-greater role in today’s
vehicles, a blockchain based
system would allow for software
packages to be distributed, sold,
and tracked by manufactures. This,
in combination with over-the-air
updates and payment facilities,
would allow for new revenue
streams.
With subscription models being
trialled the world over, blockchain
technology would allow for
seamless transfer between vehicles.
Personal setting preferences could
be carried over between vehicles,
while vehicle usage statistics
records allow for more accurate
billing to the customer.
VEHICLESOFTWARE
MANAGEMENT
PERSONAL
MOBILITYPROFILES
ADDITIONAL
SUPPLY CHAIN
Inbound plant logistics with great
transparency and accuracy for a
more efficient system.
1
MANUFACTURER FINANCE
Supply chain finance with faster
document processing and information
sharing, allowing for dramatically
reduced settleament periods.
2
SPARE PARTS & WARRANTY
Genuine parts that can be traced
back along the supply at every stage
to verify the authenticity of parts
used for repairs.
3

FUTURE PROOF YOUR BUSINESS TODAY.
DISCLAIMER
This report is provided for information purposes only and should not be copied or redistributed. Trademarks, logo designs and/or
brand names featured in this material and not owned by Lacuna Innovation are owned by the relevant proprietor of the particular
trademark and/or brand name in question and are referred to in this report for informational and/or illustrative purposes only.
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Lacuna Innovation: Omni-Channel Report

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