1 multi channel retail thinking 2 project management thinking rob stone principal 11 th april 2006
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1. Multi Channel Retail Thinking 2. Project Management Thinking Rob Stone, Principal 11 th April 2006. What is Multi Channel Retail (MCR). Charteris defines MCR as: One view of the customer One supply chain One service policy One assortment/product range across multiple channels.

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1 multi channel retail thinking 2 project management thinking rob stone principal 11 th april 2006
1. Multi Channel Retail Thinking

2. Project Management Thinking

Rob Stone, Principal

11th April 2006

what is multi channel retail mcr
What is Multi Channel Retail (MCR)

Charteris defines MCR as:

  • One view of the customer
  • One supply chain
  • One service policy
  • One assortment/product range across multiple channels
  • Difficult retail environment
  • Internet shopping maturing
  • Retailers’ upgrading websites
  • Industry view is that successful retailers providing integrated shopping
  • More customer information available
  • Technology costs falling

Mail Order and E-commerce account for 11% of total retail sales

Record Numbers via Web and TV Shopping

ICD Oct 05

the survey who we spoke to
The Survey - Who we spoke to
  • Turnover above £200 million
  • 40 blue chip, high street retailers
  • Senior Board, Middle Management
  • Anonymous
  • Questioned about Multi Channel Retailing
key findings
Key Findings
  • The most admired retailers were perceived to have their full range of products and services across all channels
  • Retailers still focussed on battling for transactions rather than winning the war for life time value
  • Key issue – channels managed separately and often at too low a level
  • Level of service inconsistent across the channels
  • Lack of integration is causing significant “leakage”

Multi Channel Retailers

Best – Argos & Next

key findings7
Key Findings
  • Expansion Areas
    • into m-commerce (30%)
    • in-store kiosks (18%)
    • and digital TV (15%)
  • Most admired multi channel model
    • Argos… large range available
    • Tesco… strong brand
    • Amazon… dominant on web
what does it all mean
What does it all mean?

4 key areas

  • Responsibility & Strategy
  • Cultural Change
  • Customer & Brand
  • Supply Chain

That if addressed will increase customer base.

These changes will be driven by significant reduction in the cost of Technology

responsibility strategy
Responsibility & Strategy

The Multi Channel Retailer Test:

  • Q1 Who is responsible for sales through all your channels?
  • Q2 Who champions the customer?
  • Q3 Is that person on the Board?
  • Q4 Can they set agendas for Technology, Logistics, Customer Service, Product Assortment and developing new customer services?
  • Q5 Have they summarised the vision for MCR in the organisation and communicated it to all levels?
  • Q6 Can you see the MCR plan for 3 months, 6 months 3 years and 5 years?
  • Q7 What are the published KPI’s for MCR

How many would you score?

cultural change
Cultural Change
  • Does everyone understand what retailing will look like in 3, 5 and 10 years time?
  • If selling to a customer is made up of many touch points who gets the credit?
  • Do senior managers really understand the recent technology changes and what it means to retailing?
  • Do buyer, managers, merchandisers, stock handlers, sales assistants, store designers, customer service assistants and directors know what will need to changes about their job for MCR?
customer brand
Customer & Brand

Who champions the customers?

How do your customers see your channels?

Do you want to drive sales to the shop or on line?

Which is more cost effective for your retail operation?

Do you treat the same customer in different ways in different channels - price?

Do you have a 360 view of the customers wants and needs?

“We have a strong information flow within each channel silo, rather than across them”

“it’s difficult to manage consistency across the different channels”

“lifetime value measurement is a key criterion that we’ve started to develop within channels”

supply chain a customers view
Supply Chain - A Customers View
  • Can I get my goods when and where I want them – in store or delivered?
  • How come you have run out of stock in store and why didn’t you offer me a delivery from the web stock?
  • If my product is faulty can I take it back to a store or send it back by post?
  • Is it the same price on line as in store and if not why should I pay more in store?
  • Can I order it in store and have it delivered direct.
  • Can I order on line a collect it on Saturday when I am shopping?
  • Can I have timed delivery slots?

Since May 2005 Woolworth has allowed customers to buy over 300,000 products for home delivery via its 824 stores EPoS

the new shopping landscape
The New Shopping Landscape

Retailing faces the convergence of influences which are dramatically altering the landscape:

  • impact of change
  • 24x7 culture
  • reducing cost of IT
  • PC + broadband penetration
  • e-commerce changing consumers’ behaviour
  • new retail formats
  • new channels (iTV)
  • new channel specialists (ebay, Amazon)
  • Specialist /mass market polarisation
  • no barriers from cost or age


new shopper

birth of the new shopper
Birth of the New Shopper
  • Behaviour polarisation:
    • loyal to strong brands,
    • disloyal to weak
  • Technically savvy, literate and competent with IT
  • All ages
  • All socio-economic groups
  • Sophisticated comparison shoppers
  • Speed of availability and delivery increasingly crucial:
    • “I want it now!”
    • Has eBay saved the Post Office?
  • Not a slave to a channel – ingenious users of channels for their advantage
  • Convenience and certainty
need for a new retailer
Need for a New Retailer
  • Offer reasons for customers to come back
  • Consistency across channels of:
    • range
    • price
    • expert service
  • Mass market vs niche – which playing field?
  • Single view of customer
  • Weak brands won’t survive
project management thinking
Project Management Thinking
  • Christmas Present?
  • Planning
  • Requirements Gathering
  • Tracking and Control
  • Look and Feel
  • Go-Live Migration
christmas present
Christmas Present?
  • Business focus on 12 weeks to early January
  • 50% revenue in Q4. 25% in December
  • Business drives a September / October launch
    • Still require stabilisation period
    • Still require business involvement
    • Still require Christmas Change Freeze
  • Initial Project Sign-off
    • Mid Q1 after January rush over
    • Business readiness
    • ITT / Review responses
  • Software development or Change programme?
  • Always listen to the team pessimist
  • Treat all channels alike
    • Web / Call Centre / Mail Order
    • Common catalogue
  • Customer-centric view
    • More marketing involvement = More time
  • Customer Conversion / Retention
    • Website tagging
    • Pricing feeds
  • Performance / Response Times
    • Design it in from beginning
requirements gathering
Requirements Gathering
  • Business team needs deep business knowledge
    • Are they being taken out of the business to support the change programme?
  • Do the requirements support the MCR model?
    • Difficult to break out of silo mindset
    • Single customer? Common catalogue? Common prices?
  • Release Genie from IT Bottle
    • Gathering requirements versus wishes
    • Want versus Need. Expectation management
tracking and control
Tracking and Control
  • Project manger should own the plan
    • Do not detach yourself from planning and reporting process
  • Track internal and external dependencies
  • Are you being challenged by the Project Board?
  • Are benefits being delivered?
  • Management Reporting
    • Quality thinking time
    • Good …. and bad news
    • Planned activities in period …. Deviations… Reasons… Actions
look and feel
Look and Feel
  • Customer Journey
    • Consistency between channels
      • Basket / trolley / cart
      • Entering payment card details
    • Persona driven design?
    • Story Boards
      • Agree basic layout
      • Alignment problems on website
      • Anomalies from real data
    • Who will sign-off design?
      • Marketing manager / Sponsor / CEO
  • Time consuming
go live migration
Go-Live Migration
  • Legacy data
    • Ditch or convert?
    • Data cleansing exercise
  • Data mapping issues
    • Separate domain knowledge
    • Misuse of fields
    • Customer name (title, forename, surname)
  • Migration Metrics
  • Go-live timings
    • Minimise system outage