Harvard Case - Clearly: Organizing for Omnichannel Retailing
"Clearly: Organizing for Omnichannel Retailing" Harvard business case study is written by Kersi Antia, Ramasastry Chandrasekhar. It deals with the challenges in the field of Marketing. The case study is 10 page(s) long and it was first published on : Jun 16, 2017
At Fern Fort University, we recommend that Clearly adopt a multi-pronged approach to its omnichannel strategy. This involves a combination of technology investments, process improvements, and organizational restructuring to create a seamless and integrated customer experience across all channels. This approach will enable Clearly to leverage its strengths in product development, customer relationships, and brand positioning to achieve sustainable growth and market leadership in the competitive eyewear industry.
2. Background
The case study focuses on Clearly, a successful online retailer of prescription eyeglasses. The company faces challenges in managing its omnichannel strategy, particularly in integrating its online and physical store channels. This is due to a lack of coordination between departments, limited technological capabilities, and a fragmented customer experience. The case study highlights the need for Clearly to develop a comprehensive omnichannel strategy to enhance customer satisfaction, drive sales, and maintain its competitive edge.
The main protagonists of the case study are:
- David Hunter: CEO of Clearly, who is responsible for setting the company's strategic direction.
- Sandra Lee: Head of Marketing, responsible for developing and executing marketing campaigns.
- John Smith: Head of Operations, responsible for managing the company's physical stores and online operations.
3. Analysis of the Case Study
To analyze Clearly's situation, we can utilize a framework that considers both internal and external factors:
- Internal Analysis:
- Strengths: Strong brand reputation, loyal customer base, efficient online operations, innovative product development, and strong customer service.
- Weaknesses: Lack of integration between online and physical stores, outdated technology infrastructure, fragmented customer experience, and limited data analytics capabilities.
- External Analysis:
- Opportunities: Growing demand for eyeglasses, increasing adoption of online shopping, potential for expansion into new markets, and emergence of new technologies like AI and virtual try-on tools.
- Threats: Intense competition from established players and new entrants, changing consumer preferences, economic fluctuations, and potential for regulatory changes.
This analysis reveals that Clearly has a strong foundation but needs to address its internal weaknesses to capitalize on external opportunities.
Key Findings:
- Customer Experience Fragmentation: Customers experience inconsistencies across channels, leading to frustration and reduced loyalty.
- Lack of Data Integration: Data silos prevent a holistic view of customer behavior and hinder personalized marketing efforts.
- Limited Technological Capabilities: Outdated systems limit the company's ability to implement advanced omnichannel features and data analytics.
- Organizational Silos: Lack of collaboration between departments hinders efficient decision-making and process optimization.
4. Recommendations
Clearly should implement the following recommendations to improve its omnichannel strategy:
1. Technology Investment:
- Upgrade Technology Infrastructure: Invest in a robust omnichannel platform that integrates online and physical store operations, enabling real-time inventory tracking, order management, and customer data sharing.
- Implement Advanced Analytics: Leverage data analytics tools to gain insights into customer behavior, preferences, and purchase patterns across all channels. This will enable personalized marketing campaigns and targeted product recommendations.
- Adopt AI and Machine Learning: Explore AI-powered virtual try-on tools and personalized recommendations to enhance the customer experience and drive sales.
2. Process Improvement:
- Streamline Customer Journey: Develop a seamless customer journey across all channels, ensuring consistency in branding, messaging, and service. This includes integrating online and in-store experiences, enabling online returns at physical stores, and offering consistent customer support across all channels.
- Optimize Product Distribution: Implement a centralized inventory management system to improve stock visibility and reduce stockouts. This will ensure that customers can purchase products online or in-store with ease.
- Enhance Customer Service: Train employees to provide consistent and personalized customer service across all channels. This includes equipping them with the necessary tools and knowledge to handle customer inquiries and resolve issues efficiently.
3. Organizational Restructuring:
- Establish a Dedicated Omnichannel Team: Create a cross-functional team responsible for developing and implementing the omnichannel strategy. This team should include representatives from marketing, operations, technology, and customer service.
- Foster Collaboration: Encourage collaboration and communication between departments to break down silos and ensure a unified approach to customer experience.
- Empower Employees: Provide employees with the necessary training and resources to understand and implement the omnichannel strategy. This will ensure that all employees are aligned with the company's vision and can effectively serve customers across all channels.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Clearly's existing strengths in customer relationships, product development, and brand positioning. They also support the company's mission to provide high-quality eyewear at affordable prices.
- External Customers and Internal Clients: The recommendations are designed to improve the customer experience and enhance employee satisfaction. By creating a seamless and integrated omnichannel experience, Clearly can attract and retain customers while empowering employees to deliver exceptional service.
- Competitors: The recommendations address the competitive landscape by enabling Clearly to differentiate itself through a superior customer experience, advanced technology, and personalized offerings.
- Attractiveness: The recommended investments in technology and process improvements will enhance efficiency, reduce costs, and drive revenue growth. The ROI on these investments can be measured through metrics such as increased customer satisfaction, higher conversion rates, and reduced operational costs.
6. Conclusion
By implementing these recommendations, Clearly can transform its omnichannel strategy into a competitive advantage. This will enable the company to enhance customer satisfaction, drive sales, and maintain its leadership position in the eyewear market.
7. Discussion
Alternative options for Clearly include:
- Outsource Omnichannel Operations: Clearly could outsource its omnichannel operations to a third-party provider, but this could compromise control over customer data and brand experience.
- Focus on a Single Channel: Clearly could choose to focus on its online channel and abandon physical stores, but this would limit its reach and potentially alienate customers who prefer in-store shopping.
The key risks associated with the recommended approach include:
- High Initial Investment: The technology investments required for a successful omnichannel strategy can be significant.
- Resistance to Change: Employees may resist changes to their roles and processes, requiring effective communication and training.
- Data Security Concerns: Implementing advanced data analytics and AI tools requires robust data security measures to protect customer information.
8. Next Steps
To implement the recommended strategy, Clearly should:
- Develop a Detailed Implementation Plan: This plan should outline specific tasks, timelines, and responsibilities for each department involved.
- Pilot Test New Technologies: Before full-scale implementation, pilot test new technologies and processes to ensure they meet the company's needs and expectations.
- Monitor and Evaluate Results: Regularly monitor key performance indicators (KPIs) to track the effectiveness of the omnichannel strategy and make necessary adjustments.
By taking these steps, Clearly can successfully navigate the challenges of omnichannel retailing and achieve its strategic goals.
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Case Description
In mid-January 2017, at the Vancouver head office of Clearly, Canada's leading online optical products company, the chief executive officer was reviewing plans for the company's participation in an upcoming international eyewear exhibition. The event provided more than 1,000 optical companies with an opportunity to showcase their latest offerings. The worldwide market for eyewear was growing, and customers were increasingly turning to online retailers for many products. However, the rate of annual growth in online sales of optical products was slow. Clearly's chief executive officer wondered how to approach this challenge: How could his company increase online sales beyond the current 4 per cent of industry sales? What role would Clearly's existing brick-and-mortar stores around the world play with respect to online sales?
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