6 ways to Succeed in Retail


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Learn 6 ways to Succeed in Retail with this eBook.

An integrated platform equips the retailers to manage their businesses in an effective and efficient manner by providing
cohesive, consistent and relevant information. It makes the task of keeping track of all the transactions much easier. An integrated retail solution allows automatic recording of the transactions in real-time environment. They have become indispensable tools to survive and increase profitability not only for the Mid Market Retailer but also for a large multinational retail organization. The major competitive benefits of using an Integrated Retail Management System in the
modern day retail are covered in this eBook.

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6 ways to Succeed in Retail

  2. 2. Content 1 2Integrated CustomerSystem foreffective retail Connectmanagement 3 4 Social Go Media Mobile 5 6Multi ForecastingChannel & AnalyticsRetailing
  3. 3. PrefaceThe Business implications of an Integrated Retail ManagementSolution is immense indeed. In the contemporary businessenvironment where liberalization, privatization andglobalization are the order of the day, most of the retailbusinesses around the world operate under the fiercelycompetitive market conditions. Such competition has led towafer-thin margins in this sector. In order to remaincompetitive, the retail organizations surviving on thin marginscannot afford the luxuries of systemic inefficiencies or delayeddecision-making. Both activities, be it increasing efficiencies inbusiness process or the ability to take prudent decisions quicklyrequires an inside out awareness of the business. A retailerought to know the complete picture that indicates the truestate of his retail business.
  4. 4. 6 Ways to succeed in RETAIL 4Integrated system for effective retail managementA retail organization can be a small chain of retail stores in the neighborhood or may include an organization havingpresence around the globe as a network of thousands of stores. Management of such a distributed retail chain is aHerculean task indeed. An integrated retail management solution benefits the retailers in better management of theirenterprise wide operations spanning the entire globe.A special Retail System for an Integrated Retail Management Solution with a robust back-end and in conjunction with anenterprise application works together hand in hand to ease up the challenging processess of retail management andoffers a one stop solution.An integrated platform equips the retailers to manage their businesses in an effective and efficient manner by providingcohesive, consistent and relevant information. It makes the task of keeping track of all the transactions much easier. Anintegrated retail solution allows automatic recording of the transactions in real-time environment. They have becomeindispensable tools to survive and increase profitability not only for the Mid Market Retailer but also for a largemultinational retail organization. The major competitive benefits of using an Integrated Retail Management System in themodern day retail include: Intuitive Interface – The Integrated Retail Management System extends an Intuitive Interface to the users that make it very easy to interact with the software suite. This enhances the adaptability of the enterprise application and is critical to make the Integrated Retail Management System popular with the non-technical users. Accurate deployment & utilization of the resources – An Integrated Retail Management System allows an organization to utilize its resources in an optimum manner. This optimization raises efficiency in system subsequently translating it into reduced costs and correspondingly higher profits.An Integrated RetailManagement Systemmakes management of a retail Reduction in the overhead and Inventory – An Integrated Retail Management System allowsbusiness a lot efficient & the organization to considerably reduce the overhead and excess inventory thereby reducingsophisticated by utilizing the the excessive costs to the company.b e st s u i te d e a sy to u s etechnology offered by them o d e r n d a y I n fo r m a t i o nSystems (IS) in an integrated and Availability to promise – An Integrated Retail Management System allows thec o n s i s t e n t m a n n e r. T h e organizations to commit timely deliveries & respond to any challenges or constraintsIntegrated Retail Management in inventory management and thereby extend timely response to any customerInformation Systems facilitates demands.faster and better managementdecisions by providing crucialinformation in a timely manner Bringing mobility in retail – An Integrated Retail Management System offerswhich helps businesses run error integration of the various Information Systems (IS) that is integration with RF devicesfree and with ease leading to and mobiles. The new age retail is more mobile & agile with the new solutions thatgreater customer satisfaction integrate Point Of Sale, warehouse & Head Office directly to the client in all possibleand repeat business. ways.A successfully Integrated Retail Easy scalability and adaptability – An Integrated Retail Management System offersERP Systems has been found to easy scalability options as per the size and scope of an organization and is adaptable todeliver high ROI despite theirhigh initial and maintenance the future growth. In addition it also allows integration with the different technologiescosts. as well as the legacy systems running at the business associates or partners end.
  5. 5. 6 Ways to succeed in RETAIL 5Customer ConnectDeveloping loyalty among customers and engaging with them can initiatea relation that is long term. If customers realize this affinity, the chancesare that they may come back & end up doing repeat business. A generation ago,The ultimate dilemma is- How will I succeed in this Customer customer loyalty was aengagement process? different game, so nowWe believe these 4 principles can help any retailer small, medium or Large one has to be-foster loyalty inside the organization & with customers as well. Procuringrepeat business & engaging a customer with your business system is the a. Proactive in response to clienteasiest way to grow your business. It can impart a razor sharp edge to your queries, comments &business ripping the competition through. complaints. Hence if a complaint is resolved quickly,Implementation of these ideas and concepts can help a retailer cultivate a you can actually grow loyaltyloyal culture among employees as well as customers & one can quickly seetangible results. Sequentially following these concepts each day can help b. Drive product development toyou begin with a calculated approach each day with great excitement and offer more value for less costenthusiasm. c. Loyalty must win rewards -Quality Is The Vital Component Hence they should be given aThe most important criteria that leads a client turn to a Store is need chance to win rewardsfollowed closely with Quality. Satisfaction ist h e d i f fe re n c e b e t w e e n c u s t o m e r Retailers must rememberexpectations and service delivery. Owing to that It costs between 5this, products are evolved as per customer and 10x more to attract a new customer than toexpectations. Trying various Sales keep an existingtechniques and good packaging cannot bringabout a change on customer outlook - Thefundamental business concept that businessneeds to realize is to have a balanced transaction: A customer expects anappropriate return for his spend.All these factors influence first time purchase, but major factor thatinfluences the repeat footfall is due to quality. A survey depicts thatServicing clients beyond their expectations- 100 Good Experiences Vs.One Bad OneSales for any company have to be a priority, especially when economy is ina slump. Therefore, when a customer comes in to shop, a smart retailorganization needs to focus on making that buying experience as pleasant& memorable as possible. 60% - 80% defecting customersFrom greeters at the security check-in - To the checkout personnel, the describe themselvesretail store team must have one mind when it comes to customer service.The customer has to feel special and important and engaged. as “satisfied” orKeeping this in thought, one bad experience can wipe away literally years “very satisfied” justof good customer service. The one bad memory killing the 100 good before they leaveexperiences is not that far out a concept and should be central to themanagement of a retail operation. Because a bad memory at store canturn your loyal customer to your competitor as he is just a click away. Byexceeding expectations one ends up building opportunities for repeatbusiness.
  6. 6. 6 Ways to succeed in RETAIL 6Engage your clients in a bidirectional dialog Pro-active surveysThe marketplace today is more complicated than ever and does not limit to Surveys help in imploring informationproduct quality & customers experience at store. The new retail customer from base of customers and is a time-has access to varied “touchpoints” or interactions with a number of tested proven way to peep into aproviders. Customer experience does matter, and it can be managed for customer mind and draw a feedbacknearly every type of customer interaction possible. This requires greater for your efforts. Not only the customermanagement skill and, quite often, new ways of assessing and surveys help in consolidation ofimplementing improvements Engagement strengthens your companys customer expectations they can berelationship with your customer by providing an open channel for used for problem identification orcommunication and feedback. An engaged customer is a level up than a problem solving. Questions withsatisfied client & definitely more loyal. Their association with your simple options to choose from such asorganization is unmatched & they often go out of the way to show the “convenient/ inconvenient ” orsame. They also support you during both good and bad times because “satisfied / unsatisfied” deliverthey firmly believe your quality & find it way superior to what others have calculable insight for problemto offer. Engagement drives your customer beyond loyalty to make it an identification. Open-ended follow-upactive participant & promoter of your product. And engaged customers questions provide a rich insight intowill want share their feedback – through all available touch points & problem solving.retailer should be prepared to handle it. All this translates into a moreengaged customer who will spend more money with you over time. Surveys must be short, precise and well structured Companies Innovative product development A random sampling done at different are using >> Retail analytics to determine-satisfaction, loyalty and engagement timings, yields better results customer feedback to Create summary survey indices that Ascertain factors that drive customer purchases improve their can be displayed graphically and business. Identify loop holes in their processes tracked over time Theyre using it for: Utilizing web as medium to increase awareness among clients
  7. 7. 6 Ways to succeed in RETAIL 7Social MediaIt was a mere half-decade ago that loyalty marketers began to start investigating seriously into how social networks andloyalty relate to one another. The rising power of social networks and customer word-of-mouth forced them toacknowledge its impact & importance since it has shown an inordinate effect in a short span of time.Nurturing and leveraging virtual consumer networks has now become a prime evolutionary trend in loyalty over the nextfew years. Obviously, consumer use of social media has exploded since then, led by the seemingly boundless popularity ofFacebook, followed by Twitter, YouTube, LinkedIn and blogs, as well as the more recent location-based success storiessuch as Foursquare and raise-your-hand-together models such as Groupon.Research depicts that in 2010 worldwide internet users spent nearly a quarter of their online time on social networkingsites and blogs, an increase of almost 19 % over 2009. Thanks to the iPhone and other smartphones, the use of socialnetworks through the mobile phone is increasing at a rapid clip. These trends are bound to show a rapid increase with thenumber of mobile social network users to double between 2010 and 2015 i.e. from around 40 million users to close to 80million.Engaging social media to churn loyalty Set up a Facebook StoreMarketers need to integrate “social” into their cross Ÿ Allow earn, burn, purchase & donatechannel loyalty program efforts and ensure it is givenproper attention from all channels. Hence- Ÿ Integrate loyalty & brand fan pagesReach out to them: Social media from the very Ÿ Have exclusive offers & promotions via Facebookbeginning offered many natural connections to loyaltymarketers seeking to cultivate customer loyalty. With Reward Social Interactionsits emphasis on word-of-mouth, sharing, linking,"friending" and "liking," social media provides Ÿ Socially active members to have a star status, indominant & dynamic tools to implement such core addition to reward pointsloyalty principles as relationship-building, customer Ÿ Status points can be translated to social currencyservice, personalization and data gathering/analytics. (like Facebook credits) or converted into “moneyDevelop a Strategy: Social web provides the ideal cant buy gifts”, e.g. lunch or an exclusiveplatform to nurture higher engagement and advocacy. memorabilia or badgeThe need for the evolution of a dialogue to a Trialogue- Ÿ Engage fans on socially active themes with specialwhere the members social networks become a part of rewardsthe retailer –consumer conversation, is of greatimportance today and in times to come. Most brands Ÿ Acknowledge &respond to Fan commentsalready have some sort of social web presence, but it isnot an integral part of their loyalty program. Marketers Engage into trialoguneed to begin their efforts by setting up a fan page; anonline community; and provide access to relevant eDevelop a 3-way dialogue where the brand has easyinformation, promotional offers, exclusive online only access to the best customers, the customers have easy &events/contests. This should then evolve, as direct access to the brand, and the customers can talk to each other freely from which both customers and the brand can extract value
  8. 8. 6 Ways to succeed in RETAIL 8 Groom Brand Advocates With transactional and social interaction data available, loyalty marketers can spot community managers and brand loyalists, their help can be leveraged to spread out a positive word to enhance brand image with success stories. With quantification of ROI on social media initiatives being a challenge for all marketers, it is important for loyalty marketers to begin connecting in measurable ways with their best customers. Marketers thereby should identify their brand loyalists, take them seriously (because they can elevate or tear down a brand), and engage with them continuously. Social media clearly offers transformational loyalty-marketing opportunities to retailers, but all of its unique benefits are yet to be tapped. And, as with any loyalty effort, gaining consumer trust, and providing a good value proposition—and a superior product or service—are essential. In Retail market the businesses that shall bring disciplined decision- making, strong buy-in from the top, constant efforts at measurement and proof, and willingness to experiment that will win in connecting social media and loyalty and move to the next stage of success in the social media space. Social media offers the opportunity to see customers as more than just numbers. Through trialogue, social tools help bring customers to life—which helps loyalty marketers learn the right ways to reach their goal of building long- term relationships
  9. 9. 6 Ways to succeed in RETAIL 9Go Mobile1. Clinch the Next FrontierCustomer adoption of mobile is mindboggling, withforecasts suggesting it will only grow exponentially. Go MobileConsider that - 40% of all U.S. adult consumers havedownloaded at least one mobile app, >2 billion appdownloads in just over 2 years , ~80 million US mobile 1. Clinch the Next Frontierweb users & expected to surpass 135 million over thenext 4 years . Smartphones are expected to become the 2. Its Personal, Make it Countlargest segment amongst cell phones this year, it isobvious that smartphone users have to be lured by 3. ACT Now....marketers. Although that does not mean that thefeature phone users have to be ignored, butsmartphone users take priority considering their usagebehavior.2. Its Personal, Make it CountA smartphone is the ultimate personal device for eachowner and it presents marketers with opportunities toconnect. The most significant aspect for a marketerhere is to get connected with a vulnerable shopper inreal time on an one-on-one basis. However, theadoption of mobile initiatives is equitable, marketersneed to increase their “connect” with customers -Something that mobile inherently provides, by actingNOW. 3. ACT Now.... Mobile commerce is still considered a technology in emergence but early results show that it is a natural follow- up to electronic commerce. Whether its a mobile app or a mobile coupon –marketers need to be agile and acclimatize to fast changing technologies; while at the same time be prudent decision-makers and transformers as trends emerge, evolve and mature. Loyalty marketers are swiftly adopting the smartphone game, typically with a branded app or mobile website. However it is compulsive for marketers to develop a full-fledged mobile strategy, adopt a mobile loyalty platform & interweave “mobile” as a key part of their cross-channel loyalty solution. Marketers will need to segregate & adopt a phased out mobile strategy as follows: Basic: Replace traditional loyalty cards/key tags and provide means to accumulate and redeem rewards - SMS couponing, Online enrollment Progressive: Provide customers access to their transaction history, member-only games/events/content; deliver rewards via apps/2D barcodes; deliver promotions; provide ability to redeem offers Advanced: Connect with members in real time & with greater efficiency via push notifications (instead of email); location specific services and Two way communication vehicles regarding program updates, upcoming rewards / perks/ events; & collating customer
  10. 10. 6 Ways to succeed in RETAIL 10Multichannel RetailingMultichannel retail is a largely discussed topic now days For example, theres no point in having a fancy websitedue to advent of online stores & mobile technology that seemingly allows the customer to buy products ifalthough it is not something of a new phenomenon. E- the items never turn up. That bad experience wouldntcommerce and M-commerce are the latest additions to just put off the customer from visiting the websitethe multichannel mix and are fresh and interesting again, it would probably also deter them fromavenues for retailers to explore. However, the concept of shopping in the retailers stores on the high street, ormultichannel existed long before the modern day using their catalogue. So whilst multichannel retailersshopping cart came to existence, its roots lie way back to are able to get to more customers, the chance ofthe mid of 19th century. The simplest way of defining a getting it wrong is also greater.multichannel retail is that they cater to the public viamultiple distribution channel - through mail order Planning the multichannel is the next big task ,and allocationcatalogues, bricks and mortar stores, online, and via of resources is of.mobile technology; the latter two being the most recent, However its absolutely vital that they plan howand currently exponentially growing channels. multichannel is going to work for their business and how theyre going to deploy their resources. These resourcesThis form of retailing gives retailers deeper penetration include products, people, marketing and IT systems, andinto market with opportunities to get their product need to be spread across each channel.noticed by clients, which they may have missed on IT acts as a facilitator for retailers, in the sense that it makestraditional channel. This allows them to generate higher processes better and can improve business practice. Its notrevenues that undisputedly remain the sole objective of true that without IT you wouldnt have bricks and mortarany business. Customer loyalty is one of the biggest retailing, because this existed and was part of the retailchallenges in todays retail market regardless of whether landscape many years before there were computers.youre a single or multichannel retailer, therefore the However, internet shopping and mobile retailing havemore opportunities you have to get customers engaged obviously been facilitated by technological advancement.with your product, the bigger your advantage. Retailers have sometimes been classified as being late to adopt different technologies; historically they have tendedThe key benefit for retailers of being multichannel is that to try a development when it was no longer cutting-edgeit gives them more opportunities to get their product in and its real advantages had been proven. For example, whenfront of customers whom they wouldnt have been able the internet was first used to sell products and services, notto reach with a single channel. This allows them to everybody had a home computer, so many thought thisincrease revenues and profitability, which is route to market wouldnt take off because there werentfundamentally what being in business is all about. enough computers out there. Nowadays, retailers who haveCustomer loyalty is one of the biggest challenges in adopted this technology and are managing their online stores well are making a great deal of money.todays retail market regardless of whether youre asingle or multichannel retailer, therefore the more In terms of where multichannel is going, its very difficult toopportunities you have to get customers engaged with say. If we wound the clock back ten years to the year 2000your product, the bigger your advantage. Consumers are and were asked to forecast the technology that would be innow bombarded with so many messages persuading use in 2010, at best, we might have got it approximately right. Whats important is that IT providers should always bethem to buy that, if retailers dont take this seriously, they looking at their product from a retailers perspective andare effectively conceding defeat to the opposition. understanding how the product underpins multichannelIntegration is one of the primary challenges to retailingmultichannel retailers in the eternal battle for customerloyalty. When a customer makes contact with a retailer-whether it be online, via a mobile application, via acatalogue, or in store- its important that they are treatedin the same way; and that the high level of service that acustomer receives face-to-face is replicated via otherchannels. To provide that service, the retailer must havean integrated platform for retail, an efficient RetailManagement solution that ensures right product in theright place at the right time which is absolutely critical.
  11. 11. 6 Ways to succeed in RETAIL 11Dashboards & AnalyticsRetailers often struggle with operational visibility, thesole reason for it being uncountable transactions and The Ultimate performance monitoring toolseveral touch points. For businesses to survive in thiscompetitive world, its critical to be able to effectivelyread customer behavior, identify product and service Predictive analytics can be used to ascertain thedemands and accurately plan sourcing, procurement, degree to which answers from a query relate tosupply chain, assortment and day-to-day channel particular goals. Tactical knowledge of action itemsoperations. On parallel focus the retail management that impact an outcome discourages the wasting ofsystem should be intelligent enough provide key resources on ineffective programs, and competentbusiness leaders and managers with up to date and statistical modeling reveals the insight of whichaccurate performance information, with a particular tactical options have the most impact.need to view highly detailed information to transactionlevel detail, on demand. Dashboards help retailers gain summary of their data to attain a structured, searchable and quantifiableKnowing what is happening in your business right now is body of information that can be used to drive criticalthe first step to making smart decisions. Giving that business decisions A retail analytic tool/ dashboard isinsight to people across your entire organization expected to do a lot more than just collecting data, itensures that they prioritize goals and activities based on has to get correct insights. An easy & strategicactual performance. approach has to be adopted to collect the entire data as building blocks and determine the data in a specific format that can be chosen from standard Four primary things that drive the retail business layouts. Dashboards should employ a common and are required to monitored & managed Include- > approach and be somewhat standard for each role CPCS Customer Product Channel Supplier and responsibility across the enterprise, while accommodating individual preferences. A personalized dashboard captures what is mostWithout the aid of dashboards, a retail manager might important to the individual user.be able to track data pertinent to their distributioncenter, group of stores, or merchandise group but they Benefits of Retail analytics with dashboards:will miss the overall trend. Therefore, Business Analytics Ÿ Analyze data using a statistical technique tomust broaden the users span of understanding while reveal the most important areas of focusempowering them to drive deeper into their ownresponsibilities. Ÿ Helps in employing statistical methods including correlation, multiple regression, factor analysis, and logit models to give detailed insight into data Ÿ Recognize the important areas of focus that may change over time to respond with changes in the economic, competitive, and demographic environment of retail business Ÿ Make open-ended feedback intuitively searchable Ÿ Helps to structure quantitative feedback into a graphic drill-down or rollup report
  12. 12. 6 Ways to succeed in RETAIL 12 Your Whatever you do, the ultimate goal should be oriented to optimize business outcomes specific to your circumstances. Our consolidated effort here is to, orienting a retail Success organization to focus on customer satisfaction, loyalty and engagement to increase revenues. In the modern economic landscape, strategic integrated efforts to gain loyal customers is Our and take your retail business to next level is a challenge which you can handle with CitiXsys retail suite of Applications. success CitiXsys specializes in Retail and Distribution domain with software solutions making its customers more profitable and efficient. With thousands of customers in over 20 countries, CitiXsys focuses on customer agility & growth by delivering quality software solutions. Every year Citixsys has evolved its product line to suit the ever evolving requirements to thousands of retailers.
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