RetailConnections Real-time Retail Workshop Recap 7-16-14

Real-time Retail: It’s What Customers Demand

Omnichannel Retail Executive Forum Workshop Recap

July 16, 2014

©2014 Boston Retail Partners. All rights reserved

Table of Contents The Evolution of Retail Technology 3 Why Real-time Retail? 4 Industry Trends 5 Real-time Retail Platform 6 Real-time Retail Enablers 7 Workshop: Real-time Retail Opportunities:

Sales – Personalized Selling 8 Sales – Virtual Closet & Clienteling 9 Marketing – Interactive CRM 10 Marketing – Events 11 Operations – Monitor & React 12 Operations – Task Management 13 Merchandising – Nimble Execution 14 Finance – Loss Prevention 15 Supply Chain – Order Management 16

Wrap-Up 17 About BRP 18

Boston Retail Partners conducted the Real-time Retail: It’s What Customers Demand workshop at the RetailConnections Omnichannel Retail Executive Forum in New York on July 16, 2014. The workshop brought together more than 25 retailers for a discussion on real-time retail. This document is a recap of the workshop discussions.

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The Evolution of Retail Technology How did we get here?

The evolution of retail technology has taken more than 100 years and

evolved to where we are today because of a lack of technology 45

years ago! Networks were not evolved – they were unreliable,

slow and expensive – so a decentralized store technology

model was created. Networks can now support a centralized model to

enable real-time retail and personalize the customer

experience.

Banking in the 90s transformed itself

through networks – ATMs were born. Now it is the retail industry’s turn…

advanced networks will completely transform retail as we know it!

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Evolving networks


Why Real-time Retail?

Today, the customer is the new focus in the retail systems universe. We need to focus on my daughter, not my mother... always

online, active on social media, and has an app for everything.

We should be selling to the next generation of customers with new technology and not

be handicapped by the past.

The Customer is the Center of the Universe

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Industry Trends

28%$

16%$

3%$

62%$

63%$

72%$

0%$ 20%$ 40%$ 60%$ 80%$ 100%$

Use$Mobile$Marke6ng$

Have$Real<6me$Retail$from$POS$

Iden6fy$Customers$Walking$in$Store$

Today$ Plan$in$5$Yrs$

Within 5 years, 75% of retailers plan to identify customers when they

walk in the store.

Know your customer: The Personalized Shopping

Experience

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Real-Time Retail Platform

Most retailers have begun the process of integrating

the components needed to enable customers to find the product they want instantly. And retailers can deliver it in

a seamless, safe and integrated solution… leveraging real-time

analytics… leveraging a real-time rules engine.

Real-time Retail Makes it Possible

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Real-Time Retail Enablers

Technology Enables Access to Customer Data

7

DRAFT

Today’s technology enables retailers to access

data like never before. Providing them unique knowledge about each

customer, and their shopping trends.


Sales – Personalized Selling

Opportunities

8

Pairing the best associate with

customers coming through

the door

Matching employees to

customers based on fit

and specialty

“Create personas, or example users, as tools to represent the needs, desires, skills and environment of one or more classes of real users.”

It’s about context. Not just knowing your customer, but knowing

where they are and what they are doing in real-time and how that impacts the retailer or

the sale.


Sales – Virtual Closet & Clienteling

Opportunities

9

“A Virtual Closet is a deconstructed online view of EVERYTHING you own.”

“Retailers are anticipating when a customer’s baby is ready for the next size of

diapers, and ready for formula.” Customer

intimacy and real-time is the key to the future.


Marketing – Interactive CRM

Opportunities

10

“…the identification of the real-world geographic location of an object, such as a mobile phone, tablet or an Internet-connected computer terminal.”

Real-time data gives us visibility to cross channel

behaviors Real-time

analytics are becoming essential

Real-time promotions triggered by customers’

proximity to store

Geo-location


Marketing – Events

Opportunities

11

Dynamic promotions driven by events

(weather, holidays, natural disasters, etc.)


Operations – Monitor & React

Opportunities

12

Sensing what is happening, and

reacting in real-time

Sale $$

Adjusting product availability and

variable prices at the best possible time for increased sales

to the right customer


Operations – Task Management

Opportunities

13

A one-day sale at a department store is more than just one-day. There are many key tasks with

dependencies

Utilizing big data, we can simplify today’s complex chain by

creating a one store view to see the entire enterprise all at once (what was previously

invisible)

We need to automate our workforce

management in real-time, so we can see the right levels as variables fluctuate

Automated workflow of

store exceptions


Merchandising – Nimble Execution

Opportunities

14

Real-time inventory coupled with geo-location:

Know when your customer is on the way, and have their product picked and ready

Compelling customers to compete against

themselves or others for points and rewards

Today, we markdown all items at once, but with

real-time merchandising, we can trigger rules at a

much more granular level (store, size or color

break)


Finance – Loss Prevention

Opportunities

15

Real-time video surveillance &

big data analytics

Catch theft as it happens!

Monitoring perpetual inventory


Supply Chain – Order Management

Opportunities

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With real-time demand sensing, you can get the

right product to the right place at the

right time!

Cross-channel availability using real-time visibility

Omni-channel availability made

possible by automated routing


Wrap-up

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Real-time retail changes everything and puts the customer at the center of the universe, which means retailers need to sell to the next generation of customers, not just today’s customer. We are at a strategic inflection point where the network is taking center stage. The network enables an integrated world where consumers drive self-checkout on their smart phone, interact with their friends in real-time on purchase decisions and receive discounts and personalized pricing as they are shopping to create a cohesive customer experience. Your brand is unique and your customer experience should be tailored to your brand and the needs of your customer.


About BRP

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§  Retail experts with retail backgrounds

§  Built with unique professional profile u  Managed by industry-recognized leaders u  Recruit experienced retail professionals with process, technology

and operations skills u  Recognized expertise in all facets of strategy, selection and

deployment of Customer Engagement/Point of Sale, Unified Commerce, CRM/Loyalty, Order Management, Merchandising and Supply Chain solutions

§  Trusted advisors of acknowledged industry leaders

"  No exclusive partnerships or alliances with software or hardware

providers

Ken Morris Principal Boston Retail Partners 617.880.9355 [email protected] www.bostonretailpartners.com

u  Chanel u  TJ Maxx u  Family Dollar

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u  Tire & Battery Corp u  Brooks Brothers u  Michaels Stores