Summary
Highlights
SM Store is a leader in omnichannel retail, focusing on a seamless fusion of online and offline channels to create a frictionless shopping experience. Their goal is to move away from siloed sales and create a system where all channels support each other. This involved transitioning from physical malls to launching Shop SM, a digital store, and integrating services like Viber, phone calls, and personal shoppers during the pandemic.
SM implements its omnichannel strategy by allowing customers to start their shopping journey on one device and finish it elsewhere. Key touchpoints include 70+ physical stores that serve as experiential hubs and fulfillment centers, the Shop SM web app for digital browsing and buying, and a 'call to deliver' hybrid service with personal shoppers. The SM Advantage Card (Smac) tracks customer points and preferences across all channels, while in-store kiosks with QR codes provide real-time inventory checks.
To prove the effectiveness of its strategy, SM monitors data flow between touchpoints using several KPIs. These include the 'buy online, pick up in store' (BOPIS) rate, cross-channel retention linked via Smac, and order fulfillment speed utilizing stores as mini-warehouses for hyper-local fulfillment. They also rely on unified inventory accuracy, allowing customers to see real-time stock online for specific physical branches.
SM's success is evident in its distributed order management system (DMS), launched in 2023. This system provides a single view of inventory, meaning if an item is out of stock online, the system can locate it on a shelf in any SM branch and ship it directly to the customer. This demonstrates a high level of omnichannel maturity, as it prioritizes the sale regardless of the channel.
Looking ahead, SM is developing a virtual mall ecosystem that will feature hyperpersonalization using AI and Smac data. This includes sending targeted coupons via the app to customers as they enter a physical store. They are also exploring social commerce, integrating live stream shopping where items mentioned in a video can be added to an SM card and delivered within hours.
SM's personalized omnichannel approach is substantiated by the integration of Smac. With over 15 million members using a single card for various purchases, SM gathers extensive data. This data ensures that their omnichannel strategy is not just a buzzword but translates into a truly personalized experience for their customers.