Issues faced by retailers who adopt omni-channelling

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Indochino Inc., a menswear retailer, is the world's largest custom suit maker and one of Canada's successful businesses. Indochino was launched in 2007 as an online business where customers could take their measurements, select their fabric, and personalize their garment on Indochino's website. Later, in 2016, the company announced its decision to enter the bricks-and- mortar market usually about one or a few of the following: pockets, lapel style, vents, linings, buttons, and monograms. In addition, customers can consult with an expert Style Guide who takes the customer's measurements, and uses a proprietary algorithm (algorithms will be discussed in Technology Guide 4) to make sure that customers receive a perfectly fitted suit. While the suit can be delivered to the customer's address, they can return to the store for a second fitting of the made-to- order garment.

In line with its omni-channelling strategy, Indochino's showrooms work in tandem with its website so that customers can access their profiles, view and edit their measurements, and order/reorder online. In line with its omni-channelling strategy, and due to the ever-increasing use of mobile devices, Indochino is planning to add text messaging to its touch points with customers. To do so, Indochino plans to exploit MobileConnect. The text messages will mainly be used to confirm appointments, send reminders, and update customers about the status of their delivery.

The seamless and personal customers' experience would not have been possible without having centralized data about customers and internal processes. Indochino realized this important matter in 2016 and decided to adopt Salesforce, a leading CRM solution, to replace its many different systems in the organization. Prior to adopting Salesforce, Indochino, similar to many other start-ups, had a large number of software applications across various departments that did not speak to each other. For instance, according to the company's chief revenue officer, it used to have three different solutions for email marketing alone.

Using Marketing Cloud, one of the Salesforce solutions adopted by Indochino, the company sends out its automatic emails about its loyalty program updates, promotions, and style advice. The tool using analytics and business insights (discussed in by opening a physical store in Mississauga, Ontario. Since then, Indochino has opened 51 showrooms in Canada and the United States, with 5 more planned to open in 2020.

Indochino strives to make its customers' journeys high-touch through omni-channelling. A customer's journey usually starts with visiting the website to make an appointment. Then, they visit one of the showrooms to check out fabrics and personalize the clothing item(s) they are interested in. The possible customizations are Chapter 12) enables Indochino to classify its customers into different groups with similar characteristics. Doing so enables the company to provide its customers with different journeys that match their requirements and to send the right content to the right customer at the right time.

Indochino has experienced a great return on its investment. From January 2017 to July 2018, the company's site traffic driven by email increased by 100 percent and the revenue from this channel increased by 23 percent. This is only one of the important benefits Indochino has reaped from adopting a CRM system. Additionally, not only was the company's customer experience enhanced, but its sales employees' productivity was boosted by 300 percent.

Questions:

1. What are the issues faced by retailers who adopt Omni-Channelling? How can a CRM system address these issues? Use examples to support your arguments.

2. What is Marketing Cloud by Salesforce? Give an example of how Indochino can use Marketing Cloud for its Operational CRM and Analytical CRM needs.

Reference no: EM133048779

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Issues faced by retailers who adopt omni-channelling : Indochino Inc., a menswear retailer, is the world's largest custom suit maker and one of Canada's successful businesses.
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