Retail 20/20 - Enabling a clear customer view in a fragmented environment

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Information about Retail 20/20 - Enabling a clear customer view in a fragmented environment

Published on March 3, 2014

Author: prontosoftware


Retail 20/20 Enabling a Clear Customer View in a Fragmented Environment

Retail 20/20 Agenda • Vision of data • The importance of data • Data channels • Strategy • Technology and infrastructure • Resources and personnel Page 2

Retail 20/20 Agenda • Vision of data Page 3

One Vision of Data What elements are easily seen and which ones are less visible Time Sales Place Page 4

The Vision of Data The bigger reporting picture might be more blurred with clarity Page 5

The Vision of Data A 20/20 perspective might clarify our vision of the sales picture Page 6

Retail 20/20 Agenda • The importance of data Page 7

Retail 20/20 Gartner see big data as a revolution Gartner Research reported that: “Big Data is set to transform the way companies manage their relationships with their customers.” Page 8

Retail 20/20 Increased visibility can lead to increase productivity Gartner Research reported that: ‘Sales representatives that could leverage data on a day-to-day basis stood to increase revenue productivity by 17%.’ 2013 Page 9 2014

Retail 20/20 The value of being aware of the conversation “Any business with more than 100 customers needs to monitor social media channels to assess what’s being said about the business and to head off small problems before they become big PR headaches,” Kristen Boschma Aegis Media Page 10

Retail 20/20 Businesses regardless of size are vulnerable Harvey Norman isn’t quite a fan of social media, but I’m pretty pleased that his marketing team are. After learning of an influential blog slamming their radio campaign, the retail giant managed to respond, counter react and change their entire radio strategy on a Sunday afternoon – Image HN updated strategy map Page 11

Retail 20/20 Telstra’s focus and commitment to data Page 12

Retail 20/20 Agenda • Data channels Page 13

Data Channels The mobile revolution • 8.5 Million adults use smartphones • 49% up to 52% by EOY • 3.3 Billion Spent on online advertising • 8.26 Million was mobile advertising • 100 Minutes per day spent on mobile devices • 38% Emails opened on a smartphone (US & Can) Australian Communications and media survey May 2013 Page 14

Data Channels Social Interaction is here to stay The findings showed that across all industries, Australian businesses received nearly 700,000 queries via Facebook, Twitter and other social networks in September 2013. Social Pulse and Online Circle Digital Page 15

Data Channels Social interaction high Customer appreciate thought leadership - Blogs Page 16

Data Channels Tapping into personal technology High budgets, rewards & risks “Nordstrom are tracking its customers without their knowledge in seventeen stores. Nordstrom hired a company to log a unique number emitted by shoppers' smartphones, which automatically connected to Wi-Fi systems as they moved through the stores.” Ken Dilanian for the Los Angeles Times Page 17

Data Channels How far do we go? How will the customer respond? What’s in it for them? “Nordstrom announced it was discontinuing the program”, even though Nordstrom management assured the public “We did not obtain any information about individuals, only a general sense of in-store shopping habits.” Nordstrom response Page 18

Data Channels Emergence of ‘Big Data’ VOLUME VARIETY VELOCITY Page 19 or

Data Channels Perspective big data is 2-3 Petabytes with the SME retail market around 100Gb 1 EXABYTE = 1 Thousand Petabytes 2-3 Petabyte 1PB = 1 thousand terabytes 12 Terabyte 1TB =1 thousand Gigabytes Page 20

Data Channels Big data can be captured at all levels such as localised intelligence • Local Intelligence • Floor feedback • Localised weather • Localised events • Centre activities Page 21

Retail 20/20 Agenda • Strategy Page 22

Retail 20/20 4 stages to consider with any data plan D-Define A-Acquire A-Analyse D-Distribute Page 23

Data Strategy Customers see us as single channel Customers expect their favourite retailers to “know” them and their preferences and to respond with a single “face,” “Without a single view of customer and behaviours across all channels, retailers are facing challenges when it comes to implementing successful Omnichannel marketing, engagement and inventory strategies.” Omni-Channel 2013: The Long Road To Adoption, RSR Page 24

Retail 20/20 Is there a strategy ? “43% of retailers believed they should be consolidating customer data with 35% believing that would gain better insight into cross-channel behaviours that would help them overcome this challenge” Omni-Channel 2013: The Long Road To Adoption, RSR Page 25

Data Strategy Business strive for Omni-channel messages • Buy in-store, return to another store (72%) • Buy online, pick up in-store (60%) • Buy via mobile or web site in-store, ship to home (59%) • Buy via mobile or web site in-store, pick up in-store (58%) • Buy online, return to store (57%) Retail TouchPoints survey 2013 Page 26

Data Strategy Integrated channels 75% of retailers find Omni-channel fulfilment to be very important. 42% of retailers say a top inhibitor of “Omni-channel excellence” is that inventory and order management are not integrated and accessible across all channels Retail Systems Research (RSR) Page 27

Data Challenges Understanding and responding 74% of retailers surveyed ranked at or below “underdeveloped” in terms of their readiness to deliver a seamless customer experience. 81% reported absent or underdeveloped capabilities in tailoring assortment, pricing and shopping occasion to customer expectations across channels. Accenture Survey 2013 Page 28

Retail 20/20 Define the data D-Define Key Questions    What is meaningful to the business? Is it achievable? How is the data positioned? Key Issues    Page 29 Data is difficult to obtain? Data is not structured? No project or defined budget?

Data Channels With so many customer points is there an overreaching strategy or organised in silos of excellence ‘Silo’s of Excellence’ Page 30

Retail 20/20 Acquiring the data A-Acquire Key Questions    Where is the data coming from? Who is responsible for channelling the data? Is the data fragmented? Key Issues    Page 31 No business plan in place? IT staff have no direction or drive? Data is not formatted?

Retail 20/20 Agenda • Technology and infrastructure Page 32

Ecosystem efficiencies There’s a direct link between operations and strategy Operational Efficiencies = Strategic Planning Page 33

Ecosystem channels Inventory management across channels 42% of retailers say that a top inhibitor is that inventory and order management are not integrated and accessible across all channels. Retail Systems Research (RSR) Page 34

Ecosystem channels Commitment to the channels In one of the biggest investments yet in its omnichannel aspirations, Myer has created a dedicated distribution centre to support its growing digital channels. The warehouse, located in Maidstone in Melbourne’s west, close to ports and transport infrastructure, will house and distribute approximately 15,000 of Myer’s most frequently ordered online products. Myer Launches Dedicated DC for Online Page 35

Ecosystem channels Proactive positioning Q: What drives demand ? Q: How quickly can we adjust our assortments, forecasts and plans in-season ? A: With Business Intelligence Analytics forecasts can be based on real-time events such as consumer trends to improve purchase patterns and allocations. A: With integrated operations can we better service to our customers, improve those levels, and reduce both overstocks and stock-outs. Page 36

Customer Example Engaging with customers and translating this back to data element to drive better experiences ‘My Macy’s’ initiative introduced by US retailer Macy’s was one of the first to embrace analytics to position personalisation to the market. Finding that more granular segmentation was required than just working off of past purchase. 90% of their inventory will be visible to their associates on hand-held devices. Page 37

Ecosystem channels Unified sources, platforms and outputs One Unified Source of Data = Streamlined Retail Value Chain Page 38

Retail 20/20 Agenda • Resources and personnel Page 39

Resources Software, BI and idea management Page 40

Retail 20/20 Outlook in 2014 for CIO’s Business intelligence and analytics will be the No 1 priority for CIOs next year, followed by mobile technologies, ERP applications, infrastructure and data centre and cloud. Gartner Business Intelligence = Real-Time Decisions Page 41

Ecosystem channels BI & analytics are enablers Business Intelligence can combine classic value analysis such as time and place with customer sentiment to determine if there are high-impact issues, growth opportunities, customers pushback or localised fashion trends. Having an analytical infrastructure enables businesses and their stakeholders to respond to unstructured buying signals within an optimal timeframe. Page 42

Retail 20/20 What is the structure of data A-Analyse Key Questions    Data model? Where and how is the data warehoused? Structured tables, dimensions and joins? Key Issues    Page 43 Work from the decisions back. How far in the past. What triggers a decision.

Retail 20/20 Real-time response Gartner Research reported that: ‘Sales representatives that could leverage data on a day-to-day basis stood to increase revenue productivity by 17%.’ 2013 Page 44 2014

Retail 20/20 How and to whom should we distribute information D-Distribute  Key Questions     Who’s reasonable? What is not easily captured? How is it entered and where is most relevant? Key Issues    Page 45 Has the message been articulated. Taking reasonability. Give more than take.

Ecosystem channels Functional Challenges to consider • Forecasting • Merchandising • Allocations • Replenishment • Delivery • Services Page 46 Functional Challenges

Ecosystem channels Go to market elements to consider • Brand • Positioning • Pricing • Promotions • Marketing • Selling • Customer Service Page 47 Go-to-market Capabilities

Ecosystem channels Business capabilities to consider • Growth Strategy • Expansion • Franchising • Innovation • Financial Management • Employee Management Page 48 Business Capabilities

Retail 20/20 To summarise D-Define Achieving actionable insight A-Acquire Through harnessing information A-Analyse Make more informed Decisions D-Distribute Better outcomes, creating value Page 49

Thank You Questions ?

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