John Lewis - Our Journey to Omni-Channel Customer Relationships - Julian Burnett Head of IT Strategy, Architecture & Business Process April 2014
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John Lewis – Our Journey to Omni-Channel Customer Relationships
Julian Burnett
Head of IT Strategy, Architecture & Business Process
April 2014
Results 2013/14: A ‘bricks and clicks’ success
Shops +3.5% Online +19.2%
Origins of the Partnership
In 1928 after the death of John Lewis,
Spedan acquired sole ownership of the
business.
He drew up the Partnership's first
Constitution and in 1929 the first Trust
Settlement was signed which allowed the
profits of the business to be distributed John Spedan Lewis
1885 - 1963
amongst the employees.
Origins of the Partnership John Spedan Lewis, 1929
We have always had a consistent Customer Proposition • Value • Assortment • Service • Trust Our Customers are at the heart of all we do
The JLP business model: Our advantages
No external shareholders No conflict of interest
Allow us to be
counter intuitive
Purchase
Allow us to be of
counter cyclical
buy.com
2001
From Evolution to Revolution
• From humble beginnings in Oxford
Street in 1864 John Lewis today
has...
• 42 John Lewis Shops
• £1bn Online business
• Financial Services
• Joint Ventures (Kuoni, Joe & The
Juice, Hotel Chocolat)
• 30,000 Partners
• Sales 2013 £4bn
• Gross Profit 2013 £226.1m
• Bonus to staff 15% of annual in
2013
Our omni-channel strategy has driven growth
Strategy
3.
2. Seize
Become BUSINESS-WIDE
1. truly brand
Build Multi biggerness
JLD Channel
Establish online presence Integrate Channels Amplify The Brand
2001 2010 2012 >
Two channels: Market matching Market leading
Shops and online Multi Channel retailer Omni Channel retailerMulti-channel
We have made integrated investment in our strategy
We have leveraged our stores to drive omni-channel growth
2010 2011 2012 2013
Our stores - The best omni-
channel recruitment tool we
have!We have seen dramatic uptake of our Click & Collect service
H1 H2
• Over a third of all online sales
• 57% growth in 2013
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14We offer our Click & Collect customers convenience
We have an range of new store formats in new places
At home SFLDS Travel FLDS
Ashford York Heathrow Birmingham
Opened Nov 2013 Opened 10 Apr 2014 T2 Jun 2014 2015
New Locations: Birmingham–Leeds–Westfield London–York–Heathrow–Chelmsford–Oxford–Horsham–Basingstoke and more…From the defining market moment in 2008 we have seen online sales
grow to over 30% of our annual revenue
SIZE OF JL.COM JAN 2008
2013
£269m
>£1bWe have seen that the economics of omni-channel are compelling
Average spend per customer (2013) 3.5 x
£264
£168
Online only Shop only
16% of customers 20% of customersWe have seen that the economics of omni-channel are compelling
Average spend per customer (2013) £824
£264
£168
Online only Shop only Omni-channel
16% of customers 20% of customers 64% of customersWe understand who are customers are and what they like
JL customers, rolling 12 months New target customers
10.95m
11,000 Crave right brands
10,500
and new products
Use convenience of
10,000 10.07m online
9,500 Love shops
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Provenance matters
2012We use social networks to know what customers think about us
John Lewis
Sainsbury's
Marks & Spencer
Positive
Tesco
Morrisons Negative
Competitors
Boots Neutral
Asda Balanced
Royal Mail
Debenhams
SOURCE: Precise Media
Monitoring (December 2013)
0 20,000 40,000 60,000 80,000 100,000We have plenty of evidence to show our strategy is working.
Two thirds of our customers now shop more than one channel.
50% of johnlewis.com traffic In store
Mobile sales were up 120%
is from mobile (28% 2012) Online Mobile in 2013
50% of shop customers buy 30% research in a shop and
By telephone In Store
at johnlewis.com buy online
65% research online and Over 60% of johnlewis.com
buy in a shop customers buy in JL shops
33% of johnlewis.com sales
were “Click&Collect” in 2013We have seen hyper growth in mobile with 50% of traffic coming from smart phones and tablets, contributing 29% of online sales
We have great insight into our customers device preferences
Dual
screening
Wake up to mobile Desktop browsing
Tablet
Mobile
DesktopWe are recognised as an innovator and have put technology innovation at the heart of the approach we take to driving our Omni-channel strategy
Last 5 years Next 5 years
We have an integrated Business We have recognised technology as
Strategy to guide and focus our a foundational enabler, significantly
investment that is cross functional, increasing our IT capital investment
spanning organisation boundaries from 15% of available capital for the
last 5 years to 35% for the next 5We have an integrated training offer We have introduced new KPI’s and for Partners to equip them with the measures to recognise the changing technology skills needed to deliver channel mix of our business and Omni-channel service & sales incentivise Omni-channel behaviour
We have created a specialist team We are delivering an integrated IT to ensure change projects deliver roadmap to ensure our technology business processes that are joined and data supports Partners and up across our end to end business Customers seamlessly and operation consistently wherever they are
We have strengthened our
Architecture capability and created
Business Architecture
a framework to ensure all aspects
Information Architecture
of change – people, process,
information and
technology – are
Application Architecture
planned, designed
and delivered in an
Technical Architecture
integrated and
capital efficient wayInformation Architecture is foundational to the overall IT Architecture and the John Lewis Partnership has chosen to take and adapt the ARTS v6.1 data model for retail as its canonical enterprise logical data model. Information Architecture
Our Customers are at the
heart of all we do
Customer Case management ARTS v7 Operational Data Model
ARTS v3 Data Warehouse Model
Essential View of Customer
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