The document discusses 10 digital trends that will disrupt retailers in the coming year. It notes that retailers will have fewer stores but offer more products by expanding inventory through endless aisles, marketplaces, and hub-and-spoke networks. Retailers will also focus on personalized, real-time customer experiences driven by more customer data sources and dynamic pricing adjusted in real time based on analytics. Advanced analytics will also be used to improve operations through better queue management, reduced inventory, and optimized customer service.
Software AG - How to Stay Ahead in Telco - ProcessForum Nordic, Nov.14 2013
Top 10 Disruptive Digital Trends Retailers Must Know
1. 1 |
TENDISRUPTIVE
DIGITAL TRENDS
RETAILERS
NEED TO KNOW
Oliver Guy
Retail Industry Director
“The worlds of “e-commerce” and “brick and mortar” retail are
merging with retailers aspiring to deliver a seamless
omni-channel experience for their customers.
Mobile, Cloud, Analytics and Social Media will move towards
being fully integrated into a unified merchandising approach that
vastly improves customer engagement…
2. 2 |
TENDISRUPTIVE
DIGITAL TRENDS
RETAILERS
NEED TO KNOW
Oliver Guy
Retail Industry Director
The notion that “the store is dead” is not, in my opinion, the
future – rather, stores will become highly technology-enabled to
deliver a super-personalized customer experience and become
the hub of omni-channel customer-centricity.
These 10 new predictions highlight my view of the retail industry
in the coming year…”
4. 4 |
Brick and mortar stores
will add fewer new outlets
as they dramatically reinvent
themselves to address OMNI-CHANNEL
CHALLENGES, and offer more services…
#1 FEWER
STORES
MORE
STUFF
5. 5 |
Brick and mortar stores
will add fewer new outlets
as they dramatically reinvent
themselves to address OMNI-CHANNEL
CHALLENGES, and offer more services…
① Endless aisle give
customers access to
ever increasing
assortment
#1 FEWER
STORES
MORE
STUFF
6. 6 |
Brick and mortar stores
will add fewer new outlets
as they dramatically reinvent
themselves to address OMNI-CHANNEL
CHALLENGES, and offer more services…
① Endless aisle give
customers access to
ever increasing
assortment
② Marketplace initiatives
increase assortment
where retailers don’t
carry inventory
themselves
#1 FEWER
STORES
MORE
STUFF
7. 7 |
Brick and mortar stores
will add fewer new outlets
as they dramatically reinvent
themselves to address OMNI-CHANNEL
CHALLENGES, and offer more services…
① Endless aisle give
customers access to
ever increasing
assortment
② Marketplace initiatives
increase assortment
where retailers don’t
carry inventory
themselves
③ Hub & Spoke
approach allows
smaller stores to
supply broader
assortment
#1 FEWER
STORES
MORE
STUFF
8. 8 |
Brick and mortar stores
will add fewer new outlets
as they dramatically reinvent
themselves to address OMNI-CHANNEL
CHALLENGES, and offer more services…
① Endless aisle give
customers access to
ever increasing
assortment
② Marketplace initiatives
increase assortment
where retailers don’t
carry inventory
themselves
③ Hub & Spoke
approach allows
smaller stores to
supply broader
assortment
④ Home delivery and
collection from stores
#1 FEWER
STORES
MORE
STUFF
10. 10 |
#2 IT’S ALL
ABOUT
YOU Real-time
CUSTOMER
CENTRICY
comes of age
11. 11 |
#2 IT’S ALL
ABOUT
YOU
① More data sources will
improve targeting
Real-time
CUSTOMER
CENTRICY
comes of age
12. 12 |
#2 IT’S ALL
ABOUT
YOU Real-time
CUSTOMER
CENTRICY
comes of age
① More data sources will
improve targeting
② Technology will aid
improved context to
provide offers at store
ingress, rather
than the exit
14. 14 |
#3 THE PRICE IS RIGHT
DYNAMIC pricing
will move from
the web to
“in-store”
15. 15 |
#3 THE PRICE IS RIGHT
DYNAMIC pricing
will move from
the web to
“in-store”
Consumer response models
+ real-time inventory
+ real-time in-store analysis
+ connectivity
+ electronic shelf edge labels
= real time pricing capability
18. 18 |
Retailers
will need a
centralized
mission control
① Consumer choice means the customer
journey will move across channels
even more
② Operations across channels needs
high levels of automation
along with central visibility and control
#4 MISSION CONTROL FOR
OMNI-EVERYTHING
20. 20 |
#5 YOU
WILL
MEET A
TALL
DARK
STRANGER…
Predictive
analytics
will be used
to improve
operational
performance
21. 21 |
#5 YOU
WILL
MEET A
TALL
DARK
STRANGER…
Predictive
analytics
will be used
to improve
operational
performance
Predictive Analytics
+ Real-Time Analytics
= Productivity Potential
22. 22 |
#5 YOU
WILL
MEET A
TALL
DARK
STRANGER…
Predictive
analytics
will be used
to improve
operational
performance
Predictive Analytics
+ Real-Time Analytics
= Productivity Potential
① Manage Queues
23. 23 |
#5 YOU
WILL
MEET A
TALL
DARK
STRANGER…
Predictive
analytics
will be used
to improve
operational
performance
Predictive Analytics
+ Real-Time Analytics
= Productivity Potential
① Manage Queues
② Reduce Inventory
24. 24 |
#5 YOU
WILL
MEET A
TALL
DARK
STRANGER…
Predictive
analytics
will be used
to improve
operational
performance
Predictive Analytics
+ Real-Time Analytics
= Productivity Potential
① Manage Queues
② Reduce Inventory
③ Serve Customer
27. 27 |
#6
THE
INTERNET
OF
TOTAL
SATISFACTION
The store of the
future will leverage
the Internet of Things
to power Customer
Centricity
Intelligent use of
sensors will enable:
① Inventory reduction
② Improved on-shelf
availability
③ Queue reduction
④ Streamlined order pick up
⑤ Real-time, personalized
promotions
30. 30 |
#7 IMMERSION
THERAPY Augmented
In-Store
Reality
Technologies such as
Microsoft’s Hololens
and Oculus Rift will
enable retailers to show
their products in more
detail and provide a much
more immersive experience
32. 32 |
#8 CLEAN
UP ON
AISLE
THREE
Retailers will
use technology
to monitor stores
33. 33 |
#8 CLEAN
UP ON
AISLE
THREE
Retailers will
use technology
to monitor stores
34. 34 |
#8 CLEAN
UP ON
AISLE
THREE
Retailers will
use technology
to monitor stores
①Improved
associate
productivity
35. 35 |
#8 CLEAN
UP ON
AISLE
THREE
Retailers will
use technology
to monitor stores
①Improved
associate
productivity
②Improved
inventory
visibility
36. 36 |
#8 CLEAN
UP ON
AISLE
THREE
Retailers will
use technology
to monitor stores
③ Focus on in-store
productivity means
greater use of
technology
①Improved
associate
productivity
②Improved
inventory
visibility
37. 37 |
#8 CLEAN
UP ON
AISLE
THREE
Retailers will
use technology
to monitor stores
③ Focus on in-store
productivity means
greater use of
technology
①Improved
associate
productivity
②Improved
inventory
visibility
④ Multiple sensor feeds
give real-time view of
store operations to aid
resource allocation
39. 39 |
#9 BUY ME NOW!
Buy buttons will appear in MORE places
40. 40 |
#9 BUY ME NOW!
Buy buttons will appear in MORE places
New shopping apps, on-line news articles, new games and a myriad new
venues will create new challenges in understanding inventory and
orchestrating orders for these new retail intermediaries as well as the
retailers supporting them
41. 41 |
#10 LAST ITEM IN STOCK
Understanding REAL-TIME Inventory will become REAL
42. 42 |
#10 LAST ITEM IN STOCK
Understanding REAL-TIME Inventory will become REAL
Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION
43. 43 |
#10 LAST ITEM IN STOCK
Understanding REAL-TIME Inventory will become REAL
Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION
44. 44 |
#10 LAST ITEM IN STOCK
Understanding REAL-TIME Inventory will become REAL
Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION
Retailers will need to connect to multiple inventory sources to gain a common view and a complete stock picture so
they can DELIGHT THEIR CUSTOMERS