Winning in Omnichannel and Bricks & Clicks - Nick East, Derya Guvenc
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Winning in Omnichannel and Bricks & Clicks Nick East, Derya Guvenc 16 September 2020
Meet the (new) shoppers
Retaining the new shoppers require targeted solutions on B&C platforms
The Elderly: The At-risk employed: The Young:
Most likely to return to stores Most likely to trade out Most likely to shop around
Most likely to define ‘growth’ in 2021
Source: Kantar 3
Covid-19 has sent a ripple of energy through Bricks & Clicks retail – especially Grocery
What are the key tasks to be done in Omnichannel accounts to account for the channel shift?
Business People &
Distribution Portfolio Media
Planning Priority
4
DISTRIBUTION: your top three actions
1. MAP FULFILMENT 2. TRACK KEY 3. MANAGE
MODELS METRICS INVENTORY
Understand all your customer fulfilment Track key logistic metrics for Bricks & Manage ranging/distribution for all click &
models. For store/dark store dispatch - Clicks. Use substitution numbers to collect formats. Pick from shelf and rapid
map all dispatch points. Plot your develop strategies to hack availability. collection models outside of Grocery are
product distribution against this to see Dispatching store time of day and shelf critical. Manage store distribution for C&C
true online availability availability at key consumption periods
Key Questions: Key Questions: Key Questions:
• Are you aware of your B&C customers’ • Are you receiving eCommerce availability • Can ranging and distribution be flexed for
fulfilment options? and substitution data from customers? key consumption periods?
• Do you have strategies to optimise sales • Can you manage availability ‘one step • Do you have critical SKU’s in small stores
through availability? removed’ by pushing for increase shelf for rapid C&C?
holding of key SKU’s?
5
BUSINESS PLANNING: your top three actions
1. PREPARE FOR 2. INTEGRATED 3. DATA DATA
BATTLE! NEGOTIATIONS DATA
eCommerce teams supporting Negotiate eCom as a fully integrated Put data on the agenda for every meeting
Omnichannel customer accounts need channel, not an afterthought. Consider all with customers and table it as a tradeable
to sharpen commercial skills. Involve the new possible tradeables you might in negotiations or when investing. Ensure
them in commercial discussions and use have. These will vary by customer! you have the capability and resources to
their perspective on margin situations add value and interpret the data
Key Questions: Key Questions: Key Questions:
• Are your B&C account managers • As the growth part of the account is • Do you know the data and analytics
sufficiently confident with eCommerce eCommerce front and centre of this year’s capabilities of key customers?
conversations? terms negotiation?
• Are you adequately resources to be able to
• Do you eCommerce managers own their • Have you fully explored all digital handle it and what hypotheses are you
P&L? tradeables the customer could offer? looking to test?
6
PORTFOLIO: your top three actions
1. SKU LEVEL 2. PLAN FOR 3. INNOVATVE FOR
FOCUS INVENTORY FLEX CHANNEL PROFIT
Map value chain of each SKU to Build ranging flexibility into your plans. Advanced organisations are innovating
optimise profit in omnichannel, Find the right product for the right for eCommerce but this can stray into
examining the P&L at a line level within audience is critical for online conversion ‘vanity project’ territory. The smart move
Bricks & Clicks eCommerce and the fulfilment channel may have a is to innovate for channel profit.
significant impact on this
Key Questions: Key Questions: Key Questions:
• Do you know the line level profitability of • Have you targeted Brand-critical audiences • Do Brand and NPD team understand the
key SKU’s in B&C eCommerce? within Bricks & Clicks eCommerce? B&C eCommerce value chain?
• What optimisations in the value chain • Do you know if your customers offer • How could you work together to optimise
could be made for eCom that don’t inventory customisation per fulfilment existing and future products for inventory
compromise in-store execution? method? flex and other trends?
7
MEDIA: your top three actions
1. TEST & 2. DISRUPT 3. SKU BUSINESS
INVEST JOURNEYS PLAN
Work with your Brand Marketing team, Review Shopper Journey understanding Get to know your margin hotspots and
Agencies and Customers to identify for Bricks and Clicks retail post Covid-19 allocate money as a group and organise
digital media opportunities within Bricks and create new view of how their around the budget.
& Clicks retail. behaviour has changed.
Key Questions: Key Questions: Key Questions:
• What existing retail media are you using • Do you have a strong understanding of • Have you considered shopper journeys
to activate digital journeys? post Covid-19 omnichannel shopping that start off-site?
behaviour?
• As B&C sophisticated digital media • How can you intercept these missions and
opportunities open up are you aware of • Have you mapped potential shopper direct traffic to the most profitable
the early movers? intercept points, on and off site? destination?
8
PEOPLE & PRIORITY: your top three actions
1. CREATE INTEGRATED 2. eCOM KPI’S FOR 3. CONSIDER ‘NEW’
TEAMS ALL ROLES
Solidify those Bricks & Clicks team lines. Every single commercial or supporting Build out “new roles” to activate Bricks &
Either co-opt existing resource or hire function in your business should have Clicks – media, finance and logistical
more. Protect the team with dedicated eCom KPIs. Consider: Absolute and analytics primarily. These could be cross
resource and make the business case growth in eCommerce penetration targets customer or even pan-EU to begin with.
for a strong full time team around you as well as, role specific goals
Key Questions: Key Questions: Key Questions:
• Could you test agile teams for • Do your commercial and brand teams have • Do Brand and NPD team understand the
omnichannel customers? an eCommerce KPI? B&C eCommerce value chain?
• Have you budgeted for a larger • How could supporting functions develop • How could you work together to optimise
omnichannel cross functional team in measures to support channel growth? existing and future products for inventory
2021? flex and other trends?
9
Thank you… and good luck on your digital commerce journey If you were unable to attend Kantar’s ‘Digital Leadership for the New Decade’ Conference, you can purchase it on-demand here or by emailing events@kantarconsulting.com Or to schedule a virtual coffee with one of our experts contact Nick East at nick.east@kantar.com
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