How can retailers go from multi-channel retail to unified commerce? It is not enough to just add channels. Retailers need to redefine their organizations as well to create one customer view and shared functional capabilities. EdenMcCallum breakfast meeting discussing the new reality of retail and what retailers need to do to be relevant in the coming years.

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Digital 2017:
Beyond
Multi-Channel
Eden McCallum Breakfast Meeting
8 March 2017
By Tamara Obradov

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Welcome
Agenda:
● Introduction
● Retail evolution
● Digital Trends & Examples
● Case Discussion

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Objectives today
● Overview of digital trends in retail
● Implications for retail organisations
● Discussion
● In general: Give you a better understanding of what is needed to succeed in
retail today

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Retail Evolution

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Retail Evolution
The Netherlands
Avg 3.6

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Retail Evolution
● Where is Retail
on mobile?
● Mobile
conversions
still need to
catch up to
desktop

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Retail Evolution

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Retail has evolved from expecting the customer to adapt, to
adapting to the customer to thinking for the customer
Retailers should be thinking about:
● If I’m not seamlessly integrated in the future I won’t even be considered
● From “Getting everything right” to “‘Keep’ getting it right without effort”

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To ‘keep’ getting it right, there are three key trends to
conquer
1. Customers don’t think in channels, they experience
2. Retail went from people-driven to technology-driven
3. Organize around the customer, not the product or the CEO

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Customers experience the brand, they don’t think about
channels → retailers are late to follow
● Customers experience
a single type of
touch-point
● Retailers have a single
type of touch-point
● Customers sees multiple
touch-points acting
independently
● Retailers’ channel
knowledge and operations
exist in technical &
functional silos
● Customer sees multiple
touch-points as part of
the same brand
● Retailers have a ‘single
view of the customer’
but operate in functional
silos
● Customer experience a
brand, not a channel within
a brand
● Retailers leverage their
‘single view of the
customer’ in coordinated
and strategic ways

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Let’s plot some examples

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With “Unified Commerce” you have the best chance to exceed
expectations, stay in the loyalty loop and gain advocates

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Digital Trend 2: It’s not only about the people anymore
● Retail capabilities are evolving
○ It’s no longer important how much experience you
have in purchasing, it’s all about the data
○ The two fastest growing capabilities to develop are
■ The capability to plug-and-play new digital
services
■ Data Science
● The unified commerce retailers are
technology-driven…
● ...and have created a connected system of
digital services

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August 2011 - ~100 software services

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September 2012 - ~350 software services

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Jan 2014 - ~950 software services

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...see the trend?
August 2011 September 2012 January 2014
~100 companies ~350 companies ~950 companies

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March 2016 - ~3500 software service companies
March 2016
~3500 companies

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Digital trend 3: Customer at the helm
Organize around the customer, not the product or the CEO
● Data driven
● Small teams focused around
customer segments
● Cross-functional
● Decoupled decision making &
autonomy
● Scrum based → test & trial
● Hierarchy & layers
● Experience/seniority over data
● Long decision making
● Authority over autonomy

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If you don’t create a flexible and customer centric
workforce you might not survive
Omzet ca. 600 miljoen

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Currently the most advance retailers follow a small,
cross-functional team organization

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Example: Netflix organization is supported by a strongly
documented culture
Loosely decoupled, cross-functional
teams
Employee Autonomy
Strong culture focused on performance Flat organizational structure

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Example: Amazon

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Case Examples

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Daniel Wellington example
● Company started in 2011 selling cheap but luxury inspired watches for
$129-$149
● In 2015 selling over 1Mn watches per year (compared to Rolex and Tag
Heuer who in a good year sell ~
● From $0 to over $200Mn in 5 years
● $0 traditional marketing, solely influencers
● free products to social media stars and prominent personalities
Instagram engagement
Source: thecirqle.com

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E-mail marketing example
Example:
● Weekly ladies shopping email sent on Sunday 10am
● Reporting showed slowly declining revenue
● By analysing core customer segment device and journey usage they learned
that target segment peaks on Mondays and Wednesdays at 19.30
● By changing the email moment and making the formating more device specific
revenue upsight was 10.2x

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picnic

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To be successful picnic will need to solve the last mile
problem of online grocery
Source: Booz& Co
Note: data is from 2010 not rectified for inflation or cost fluctuations
€X
+€17

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● Amazon Dash
● Google Home / Amazon Echo
● Deliveroo dark kitchens
● Gooseberry intimates
Other noteworthy discussions / examples

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Discussion