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Retail 20/20Enabling a Clear Customer Viewin a Fragmented Environment
AgendaRetail 20/20
Page 2
• Vision of data
• The importance of data
• Data channels
• Strategy
• Technology and infrastructure
• Resources and personnel
AgendaRetail 20/20
Page 3
• Vision of data
What elements are easily seen and which ones are less visibleOne Vision of Data
Page 4
SalesTime
Place
Customer
Events
Social
The bigger reporting picture might be more blurred with clarityThe Vision of Data
Page 5
A 20/20 perspective might clarify our vision of the sales picture The Vision of Data
Page 6
AgendaRetail 20/20
Page 7
• The importance of data
Gartner see big data as a revolutionRetail 20/20
Page 8
Gartner Research reported that:
“Big Data is set to transform the way companies manage their relationships with their customers.”
Increased visibility can lead to increase productivityRetail 20/20
Page 9
Gartner Research reported that:
‘Sales representatives that could leverage data on a day-to-day basis stood to increase revenue productivity by 17%.’
2013 2014
The value of being aware of the conversationRetail 20/20
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“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
Businesses regardless of size are vulnerableRetail 20/20
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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
Telstra’s focus and commitment to dataRetail 20/20
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AgendaRetail 20/20
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• Data channels
The mobile revolutionData Channels
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• 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
Social Interaction is here to stayData Channels
Page 15
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
Social interaction highCustomer appreciatethought leadership - Blogs
Data Channels
Page 16
Tapping into personal technologyHigh budgets, rewards & risks
Data Channels
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“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
How far do we go? How will the customer respond?What’s in it for them?
Data Channels
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Nordstrom response
“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.”
Emergence of ‘Big Data’Data Channels
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VOLUME
VARIETY
VELOCITY
or
Perspective big data is 2-3 Petabytes with the SME retail market around 100Gb
Data Channels
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1 EXABYTE= 1 Thousand Petabytes
2-3 Petabyte1PB = 1 thousand terabytes
12 Terabyte1TB =1 thousand Gigabytes
Big data can be captured at all levelssuch as localised intelligence
Data Channels
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• Local Intelligence
• Floor feedback
• Localised weather
• Localised events
• Centre activities
AgendaRetail 20/20
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• Strategy
4 stages to consider with any data planRetail 20/20
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D-Define
A-Acquire
A-Analyse
D-Distribute
Customers see us as single channelData Strategy
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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 Omni-channel marketing, engagement and inventory strategies.”
Omni-Channel 2013: The Long Road To Adoption, RSR
Is there a strategy ?Retail 20/20
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“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
Business strive for Omni-channel messagesData Strategy
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• 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
Integrated channelsData Strategy
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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)
75% of retailers find Omni-channel fulfilment to be very important.
Understanding and respondingData Challenges
Page 28
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
Define the dataRetail 20/20
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D-Define
Key Questions What is meaningful to the business? Is it achievable? How is the data positioned?
Key Issues Data is difficult to obtain? Data is not structured? No project or defined budget?
With so many customer pointsis there an overreaching strategyor organised in silos of excellence
Data Channels
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‘Silo’sof Excellence’
Acquiring the data Retail 20/20
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A-Acquire
Key Questions Where is the data coming from? Who is responsible for channelling the data? Is the data fragmented?
Key Issues No business plan in place? IT staff have no direction or drive? Data is not formatted?
AgendaRetail 20/20
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• Technology and infrastructure
There’s a direct link between operations and strategyEcosystem efficiencies
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Operational Efficiencies=
Strategic Planning
Inventory management across channelsEcosystem channels
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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)
Commitment to the channelsEcosystem channels
Page 35
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
Proactive positioningEcosystem channels
Page 36
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.
Q: What drives demand ?
Q: How quickly can we adjust our assortments, forecasts and plans in-season ?
Engaging with customers and translating this back to data element to drive better experiences
Customer Example
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Finding that more granular segmentation was required than just working off of past purchase.
‘My Macy’s’ initiative introduced by US retailer Macy’s was one of the first to embrace analytics to position personalisation to the market.
90% of their inventory will be visible to their associates on hand-held devices.
Unified sources, platforms and outputsEcosystem channels
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One Unified Source of Data=
StreamlinedRetail Value Chain
AgendaRetail 20/20
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• Resources and personnel
Software, BI and idea managementResources
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Outlook in 2014 for CIO’sRetail 20/20
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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
BI & analytics are enablersEcosystem channels
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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.
What is the structure of dataRetail 20/20
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A-Analyse
Key Questions Data model? Where and how is the data warehoused? Structured tables, dimensions and joins?
Key Issues Work from the decisions back. How far in the past. What triggers a decision.
Real-time responseRetail 20/20
Page 44
Gartner Research reported that:
‘Sales representatives that could leverage data on a day-to-day basis stood to increase revenue productivity by 17%.’
2013 2014
How and to whom should we distribute information
Retail 20/20
Page 45
D-Distribute
Key Questions Who’s reasonable? What is not easily captured? How is it entered and where is most relevant?
Key Issues Has the message been articulated. Taking reasonability. Give more than take.
Functional Challenges to considerEcosystem channels
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FunctionalChallenges
• Forecasting
• Merchandising
• Allocations
• Replenishment
• Delivery
• Services
Go to market elements to considerEcosystem channels
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Go-to-marketCapabilities
• Brand
• Positioning
• Pricing
• Promotions
• Marketing
• Selling
• Customer Service
Business capabilities to considerEcosystem channels
Page 48
BusinessCapabilities
• Growth Strategy
• Expansion
• Franchising
• Innovation
• Financial Management
• Employee Management
To summarise Retail 20/20
Page 49
D-Define
A-Acquire
A-Analyse
D-Distribute
Achieving actionable insight
Through harnessing information
Make more informed Decisions
Better outcomes, creating value
Thank You Questions ?
