The traditional understanding of O2O marketing model refers to online Marketing/physical store purchase

The traditional understanding of O2O (online to offline) marketing model refers to online Marketing/physical store purchase, driving online business and consumption. Enterprises through a variety of ways, including the provision of discounts, push product information, service reservations, and Internet users to communicate, so as to guide them to the physical store consumption, especially suitable for the store to consume goods and services, such as catering, clothing, hotels, beauty salons and other industries.

O2O, as a means/strategy, does provide an e-business orientation for traditional industries. However, with a more long history of the business, Consumer-to-consumer different is O2O emphasis on online payments, the net to extract goods or enjoy services, and the company, Consumer-to-consumer can be pure online businesses, so the successful O2O strategy must have the cooperation of retail stores. Successful operation of O2O, through the online more accurate access to more users, the use of data to do CRM, enhance the user's stickiness, increase the number of orders and unit prices. Contact more customers, the retail stores will also be forced to enhance the operating efficiency, to use O2O bring advantages. and "Online payment", "Online network integration" is to determine whether the mode of success of the two major points.

Compared to O2O, its enhanced version of Omni-channal retailing (omni-directional retail channel) is a number of large-scale chain stores in recent years adopted the strategy, such as Gap, hints Outfitters and so do a very good job, the annual report on the online sales performance is bright. The focus of this strategy is to provide customers with a more intimate consumer experience through comprehensive, multi-channel integration, including Web sites, retail outlets, direct mail and catalogs, service terminals and social media. In addition to the operation of enterprises must be reformed, because of changes in consumer decision-making patterns, the collection of consumer data, analysis and the back of the IT and distribution system is the core competitiveness of the performance.

In fact, whether O2O or omni-channal retailing, their significance is not in the innovation of the model, but in the creation of value. Many successful cases abroad, care is how to use these strategies to enhance the user experience, to provide users with convenience, and then make money from it. On this basis, the understanding of the user base and their behavior and needs is the focus. As for how to do, different companies have different ideas, the following several cases I think is more interesting, including payment innovation, thinking innovation and operational innovation.

paynearme-for heavy cash users to provide online shopping payment services

It is hard to imagine a friend without a credit card, debit card, online bank or Alipay account can enjoy the fun of buying a net! Apart from the ultra-low income earners, this group of people also have the need for online shopping, only because of various reasons (including network security, personal habits, etc.) do not use the Internet to pay. Paynearme, based in Kings View, Calif., is a 處理 service that provides cash Payment receptacle O2O for people in this community. First of all, people choose to pay paynearme in the online shopping, then pay the bill to the designated place of payment (if there is no printer, you can choose to send the purchase information to the mobile phone, pay point employees will use POS scan barcode). When the payment is made, the merchant is notified and delivers the goods to the purchaser's designated location.

This service sounds troublesome, and to be successful you must know where the user is and how much it is convenient to pay. Paynearme last year's trading volume grew three times times, and successfully attracted more than 65 million U.S. dollars in financing, to prove the effectiveness of the business model, in the end paynearme how to do it?

Accurate market positioning

Paynearme services to the U.S. home market, for cash users, according to their description, they choose the market mainly because:

• According to the Federal Deposit Insurance Corporation (Deposit Ping Corporation), it is estimated that nearly 10 million American households currently do not have a bank account (unbanked), while about 24 million of American households have bank accounts that are inactive (under-banked), accounting for more than 28% of American households

• More than 60 million American adults do not use credit or debit cards

54% American adults prefer cash as a means of payment

The market looks small relative to the US population of 317.8 million (March 2014 data), but the number of adult Americans who do not use a credit or debit card is almost equal to that of the British population. Although not for the services of the United States, but the focus on the 28 of American households, the demand for targeted services is relatively easy to understand, coupled with a few competitors (currently close to only PayPal's my Cash card), the success of creating value for users.

Easy to access, accurate sourcing

In addition to looking for the target market, execution and careful layout is also the key to success, and the choice of the net payment point is fully displayed their intelligence! At present Paynearme mainly and outlets, accessibility dollar and ACE Cash Express stores cooperation, in the United States to provide 17,000 net payment points. Three partners have one thing in common, that is, to have a large number of shops, so that paynearme can cover the country in a short time, open up the situation, and strive for more cooperative businesses. In addition to the volume of merchants, the frequency of paynearme is another success factor of the business. If you look closely, you'll find the wisdom of CEO Danny shader.

1. There are no selected national hypermarkets such as Walmart, Target, Costco, etc. They have enough, but most of them are far away from the city centre, most of the patrons drive, and the number of visits per week is not much, tend to once shopping whole week of supplies. Not for Paynearme Target customers to provide convenience (online shopping users generally more impatient to get goods), there is no promotion of the frequency of trading potential.

2. At present, the partners have their own advantages, most of the outlets close to the urban area or in the city center, to facilitate the work of the people in their free time "by the way" to pay, improve their use of paynearme desire. I believe that the use of this channel to pay a higher quality of users, can attract preferential business to join the Paynearme. Accessibility dollar is mostly located in the community, targeted at price-sensitive users who want to buy discounted goods, its slogan is "your home for everyday low prices", small and frequent transactions are believed to be the characteristics of this channel. As long as you find the right businesses and goods, you can easily increase trading volume. ACE Cash Express Stores is primarily a lending business, and believes that some of the low-end target customers paynearme targeted (especially those without a car) will often visit. For these users, specific goods/services will be very popular. For example, most of them do not have cars or real estate, and by paynearme they pay bus tickets to Geryhound bus companies (especially if they have to wear state-run provinces to find work/running businesses) or Appfolio property management companies to pay rent, which has become a minority option for them.

Ii. Hints Outfitters-Integrate the store into the delivery system

Hints Outfitters is an American fast fashion company with major markets in the United States and Canada, with 5 brands including Hints Outfitters, Anthropologie, free arranges, terrain and BHLDN, There are nearly 400 chain stores. There are no large quantities of products, no mass advertising, and their store designs do not even take into account the benefits of economies of scale, each store uses different designs and regularly works with different designers to sell premium designer fashions at relatively inexpensive prices.

Hints Outfitters's share price has been good compared with other retail brands targeting the young market.

In the face of the current fast fashion brand challenges, less style, less production, flexible procurement and production processes are necessary, coupled with the trend of catching up with more and more difficult, clothing brand management (especially for young people) is not easy. This customer group is accustomed to surfing the internet, accustomed to online shopping, accustomed to comparing prices and impatient, it is not easy to please them. But many brands at the same time pointed out that their consumption capacity is high, and highly dependent on the Internet, brand growth is the biggest power. Take hints Outfitters as an example, as of last September's performance report, online sales accounted for nearly four of the company's overall revenue. In the third quarter, the growth rate was 40% higher than last year. Figuratively strategy officer Michael Kaness threatened within 5 years. Online sales will account for half of the company's overall sales. What exactly did hints outfitters do?

Conceptual change

All reform begins with ideas. Since online sales began to grow, hints Outfitters's management began to shift the mindset of positioning the company as a power supplier (ecommerce) rather than a traditional retail store with an online store; thinking " Direct-to-consumer business", rather than how to use the shop to clear inventory. All the reforms that followed have reflected a change in the war strategy.

Retail Outlets = Distribution Center

The traditional brand retail stores in the beginning of the online sales, the general will set up a team of independent operators to customize their work and distribution process. Because of the customer's demand and retail, the flow is often different, not only easy to create contradictions between the internal departments, customers can not enjoy the fun of online shopping. Hints Outfitters in operating an online sales business, thinking is "customer demand"-how to make them easy to buy, the internet to become a habit of shopping. In terms of distribution, hints Outfitters, in addition to passing through the two Gap, PA and Reno, NEVs of the national Distribution Center, most of the retail outlets can assume the small "distribution Center" work, the fastest time to deliver goods to customers. In this way, each store's "dead goods" have the opportunity to activate, the distribution center does not have to complete the distribution task to accumulate a large number of goods; inter-related, the buyer and the designer team can also be more daring to introduce new products in response to changing trends. Of course, this change in the process, not verbally speaking, involves technological and technological reform and process transformation. According to Hints Outfitters's executive Director of Logistic, Ken McKinney says it can handle about 7,000 to 10,000 orders a day. With the advancement of technology, the processing capacity will increase and cope with more and more demands.

Free delivery Service

Investing in retail stores is expensive, and operation and manpower costs are not cheap. One of the ways in which hints Outfitters has announced its position as a distributor is to reduce the number of retail outlets that will save money and provide free delivery services to customers online (using hints Outfitterse's mobile app) to shop in Hints Outfitters. In spite of this, the processing costs of each sheet will increase, but management believes that instead of investing in the lower-return retail market, it is better to cultivate users ' habit of hints outfitters websites.

Three, Aeon the Omni Channel retailing strategy of Zhang Xin Dian

Japan Aeon Group recently opened a new "aeon curtain Shop", the overall area of shopping malls more than 400,000 square meters, divided into Grand Mall, Pet Mall, accessibility Mall and active Mall four of the majority of the shop area is 128,000 square meters. " Here, Aeon boldly try different ways, using mobile phones, apps, shopping malls, posters, devices, goods and other methods and customer interaction, stimulate consumption, thereby increasing the turnover! The important thing is that none of the attempts to promote the "low price", "bargain" as a promotional tactic, but through the promotion of user experience, so that consumers automatically spend money. From the shop area only accounts for about 33% of the whole market, you can see AEON pay more attention to the consumption experience. What are those attempts? Let us know:

Raise demand, clap! "A pinch of って! インフォ"

The 1F fruit and vegetable stores in Grand Mall can automatically display the relevant information and recipes for these fruits and vegetables as long as they are filmed with mobile devices on the store's posters. Take Apple, for example, with a picture of an apple pie, or apple juice, or even a salad of fruits and vegetables. For those who have a headache to prepare what kind of dishes for their families to eat housewives, can be said to be a big "charity." For some unpopular fruits and vegetables, more promotional role. Imagine who buys fruits and vegetables that don't know how to handle them.

Capture サウンドキャッチ of Sound (Sound catcher)

In Japan's big stores, many times will hear the different broadcast, feels very lively. I used to think that it would be a good experience to find these promotional goods or activities quickly if you could go shopping. The reality is certainly not so beautiful, but Aeon this time lets the customer use the app to identify in the store the propaganda film and the electronic board "The Voice", then pop-up the related content and the advertisement film, although the operation is a little Yangchun, but is the attempt which is worth encouraging!

I have reservations about the reports that eventually connected to the online store (people have come to the physical store, why not buy at the scene?) , but if it can be improved, guide customers to the relevant areas, and combined with micro-positioning technology such as ibeacon, through analysis, to understand customers in the consumer decision-making process of the action path, the results should be very interesting and practical!

Touch device, Mountain extension user experience

How to interact with customers without mobile devices? Aeon a touch-control device in the wine Tasting (test) area. The customer only needs to place the bottle bottom of the red wine on the touch device, the picture will appear the various data of the red wine as well as place in the store, let the customer understand the product interactively. Some red wine even has the food match proposal, the customer can buy the wine while buying the necessary ingredients together in the shopping mall.

In fact, this formula can be further, for example, through the number of scans to understand the customers of the region, category, price preferences, so as to provide a more popular wine for customers to taste. By understanding the time point of the scan, know which time the most target customers go through, so as to design some flash purchase items, increase sales. You can even further integrate the membership system by understanding the profile of the member and the data and stay time they choose to read, to learn about their preferences, and to make an opportunity to make a purchase proposal at a later email or next time they log in to inquire about wine data.

In addition, the same device is also used in other areas, so that customers can browse those who do not have the opportunity to store goods, and to purchase, but also the choice of door-to-door or to the retail outlets to pick up goods. If the whole process design properly, disguised as "increase" the shop floor area, for the promotion of turnover to help very big, no wonder this method has been more and more use of chain stores.

Multimedia product information, promotion Youdao

In the area where the wine is sold, Aeon not only uses the touch device, but also provides more product information to the customer, combined with the mobile App"smart phone DE liquor". Customers can use the mobile devices equipped with "smart Phone DE liquor" to see a section of the wine in a scanned package and link to AEON's online store "aeon DE wine" to purchase the relevant products. This is a very human cost, and in addition to the time it takes to prepare and update the data, the packaging of the product must be coordinated to use the image identification technique. However, the advantage is that the membership system can be combined, and increase the number of users and frequency, through the background of the Stored User profile, analysis, get more consumer insights.

Technology is dead, how to apply technology, how to change the traditional retail business philosophy and operation is the O2O Challenge!!

Paper/Chai Doll