Multi-Channel system by Studio Moderna
Studio Moderna
Branko Blecic
•
History
•
Company Overview Today
•
Reasons for Success
The Studio Moderna Story
History/Evolution
ONE PRODUCT COMPANY
DISTRIBUTION COMPANY
BRAND
Integrated media platform and
content provider
Unique multi-channel
marketing model
1992
1996
2002
The Company Growth
•
Studio Moderna was simultaneously rising number of new countries as
Company Overview
Today
Our unique strength is our diversification through seven main sales channels
:• DRTV – Television via 300 TV channels and almost 300 hours per day,
•
Homeshopping
– Own TV channels 24/7 in 5 markets in 2009
•
Internet
– over 100 websites•
Retail
–
108 own Topshop stores•
Wholesale
– many pan CEE partners (B
aumax, InterSpar, Helix, Mercator)•
Print sales
–
through magazines, newspapers and catalogues•
Outbound
– outbound customer database sales (50Mil call/year)Everything we sell is measured on ROI basis
Sales Channel Diversification
Why Multichannel?
• Supporting Revenue Growth
• Customer acquisition
• Increasing customer loyalty and repurchase rate
• Point – of – difference (competition)
• Improving products availability
TV CMC Parcels Customer care Print Internet Shop Wholesale BTL
Studio Moderna Channels TV DRTV Advertising Home-shopping Internet SEM Social Media Marketing Email Marketing
Multi channel diversification
Illustration:
Data-Driven Decision-Making & Processes
IT system includes software developed
in-house:
• Product Information Site (PIS): descriptive explanation of product’s benefits and features (USP’s), SRP, marketing materials and videos, customer FAQs, up-sell and cross-sell opportunities
• Navision: ERP system at corporate and local levels • E-Ordering: tracks and allocates product inventory
across
• Cost Per Order (CPO): tracks media costs (TV channel by TV spot)
• CRM: Agent’s support, 8 million customer records
• CPO Global – new toll in pipeline - will assure us gathering all needed data and with that enable us more efficient and faster planning of multichannel activities.
Business
Intelligence
PIS Navision E-Ordering CPO – Media planning CRM CatProDRTV Internet Retail Wholesale Print Telemarketing
CPO CPO/E Rev. per 1 m2 Gross Margin CPO CR Rev. per min. Lead generation Cross sales Bad debts
management Catalogue RR AVG revenueper hour
Cross sales E-mail CR Stock
management Stockmanagement Rev per 1 cm2 Cross sales Stock
management Cross sales Cross sales Stock management
Stock
management Stockmanagement
Sales channels and KPI’s for Sales Managers
*just basic indicators
Basic assumption
For which customers should we sell
Which product or service
Which channels?
Successful
Channel-Mix
3 – E – Trap: Don’t try to sell everything to everybody and everywhere !
Prepared by Branko BlecicCannibalization VS Revenue increase
1. Organizational structure
There are no one-size-fits-all solutions. Each multichannel retailer has to decide for
itself what to integrate and what to keep separate.
2. Data Integration
CRM - Another major challenge in crafting successful multichannel strategies is to build
an integrated information technology (IT) infrastructure so that data across channels can be linked.
3. Consumer Analytics
Customer Data mining - the increasingly multichannel nature of consumer shopping
and purchase behavior calls for a better understanding of their decision processes and new approaches to monitoring and measuring their experience, satisfaction, and loyalty.
4. Evaluation and Performance Metrics
Global software motivates multichannel collaboration - there is a need to develop
performance metrics that take into account the individual nature of each channel and cross-channel effects of any retail mix decisions, and motivate multichannel collaboration.
Retail mix decisions
2 Main conflicts between channels :
1. Fears of cannibalization (shifting sales from one channel to another) 2. Differences in prices and margins across channels
The key retail mix decisions that all multichannel retailers have to make: Product or service selection,
Parity in pricing across channels,
Promotion, marketing communication,
Inventory management,
Fulfillment,
Return policies .
Multichannel retailing is an ever-evolving phenomenon!
Prepared by Branko BlecicPotential synergies
• Cross-channel customer communication and promotions
-
use of one channel to promote another• Cost-effective testing
and marketing research (product, prices, marketing communication,….)• Shared common physical assets and operations
.
Spreading fixed costs across channels can create economies of scale and scope.• A cross-channel complain policy also creates cross-selling
opportunities
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retailers can encourage customers to shop in the stores when they come to return online and catalog orders.What’s essential?
• Integration
Integrating all the operating parts allows you to optimize each customer interaction.
• Consistency
Ensuring customers receive the same brand message across channels and interactions.
• Flexibility
Convince and support insights to meet changing customer needs.
• Insight
Delivering analysis across connected channels enables proactive customer focus.
