Returns on Omnichannel Marketing. Towards a holistic framework to manage and measure Omnichannel strategy's success in the premium fashion industry

Table of Contents

• Introduction
• Omnichannel – context and definition
  • History of omnichannel retailing
    • Brick-and-mortar stores
    • Catalog sales
    • Direct sales
    • Electronic retail
  • Definition of omnichannel
  • A global perspective on omnichannel preconditions
• Digitalization in the premium fashion industry
  • Premium vs. luxury fashion
  • Premium fashion 2.0
  • Towards omnichannel – status, barriers and opportunities
    • Omnichannel capabilities today
      • Inventory visibility
      • Click & Collect
      • Direct deliveries
      • Return in store
      • In store technology
      • Mobile payment
    • Barriers of omnichannel marketing
      • Perception
      • Measurement
      • Legacy systems
      • Privacy
      • Initiative
    • Opportunities of omnichannel marketing
      • Increase relevancy through personalization
      • Build brand awareness and preference through external brand advocates
      • Exploit local cross-channel opportunities
      • Evolve the physical space into a brand shaper
  • Burberry – case study
• Understanding the omnichannel customer
  • Digital shopper characteristics
  • The evolution of the customer journey concept
  • L’Oréal – case study
  • Storyscaping
  • Omnichannel touch point map
  • An omnichannel manifesto for brands
• Returns on omnichannel marketing
  • Marketing ROI
  • Planning context
    • Vision and mission statements
    • Business goals, strategy and objectives
    • Performance and Result Indicators
  • Omnichannel analytics
    • A case study
    • Implementation – the marketing scorecard
    • Analysis and optimization
  • Technical and organizational implications
• Summary and outlook

Objectives and Key Themes

This work examines the challenges and opportunities of omnichannel marketing in the premium fashion industry. It aims to provide insights into the current state of omnichannel adoption, the barriers that impede its implementation, and the strategies that brands can employ to capitalize on its benefits. This includes analyzing the evolving needs and expectations of digitally savvy customers, exploring the limitations of traditional measurement frameworks, and proposing a new KPI-based approach to measuring the return on investment (MROI) of omnichannel initiatives.

• The evolving role of digital channels in the premium fashion industry
• The significance of customer-centric omnichannel experiences
• The challenges of implementing and measuring omnichannel success
• The impact of omnichannel marketing on customer equity and brand perception
• The importance of a holistic and future-oriented KPI framework for omnichannel management

Chapter Summaries

• Introduction: This chapter introduces the concept of omnichannel marketing, its relevance in the contemporary retail landscape, and the particular challenges faced by premium fashion brands in adapting to the digital revolution. The chapter also outlines the structure of the work and the interview partners who contributed their insights.
• Omnichannel – context and definition: This chapter explores the historical evolution of retail channels, focusing on the emergence of e-commerce and the shift toward omnichannel. It defines the concept of omnichannel and analyzes the global preconditions for its successful implementation, including internet access, motorization, screen time, and disposable income.
• Digitalization in the premium fashion industry: This chapter delves into the unique characteristics of the premium fashion industry, comparing premium and luxury goods. It analyzes the current state of digital adoption in the sector, highlighting the opportunities and barriers of omnichannel management. The chapter includes a case study of Burberry, showcasing a successful omnichannel transformation.
• Understanding the omnichannel customer: This chapter examines the changing characteristics and needs of digitally savvy customers, highlighting their increasing reliance on mobile devices, social media, and a more fragmented shopping journey. It explores the limitations of traditional customer decision journey models and presents a new approach to managing the customer journey in a more proactive and personalized way. The chapter includes a case study of L’Oréal, demonstrating a sticky customer journey through its Makeup Genius app.
• Returns on omnichannel marketing: This chapter introduces the concept of marketing return on investment (MROI) and its relevance in measuring omnichannel effectiveness. It discusses the limitations of traditional MROI metrics and proposes a new framework that considers both present and future value generation. The chapter outlines the importance of a well-defined planning context, including vision, goals, strategy, objectives, and KPIs. It includes a case study of the fictitious premium fashion brand OmniChic, showcasing the development and implementation of a comprehensive omnichannel KPI framework. The chapter also explores the technical and organizational implications of omnichannel marketing, highlighting the need for data convergence, system upgrades, and organizational restructuring.

Keywords

This work explores the key concepts of omnichannel marketing, customer decision journeys, marketing return on investment (MROI), and key performance indicators (KPIs) in the context of the premium fashion industry. It investigates the impact of digitalization on consumer behaviors and brand strategies, focusing on the importance of seamless customer experiences, personalized engagement, and data-driven decision-making. It also highlights the need for a holistic and future-oriented measurement framework to enable brands to successfully navigate the evolving omnichannel landscape.