1997 Retail Establishments:676,000 Core retail443,000 Secondary retail1.1 million Total retail establishments1996 Sales Distribution:57% Checks25% Credit card or electronic18% Cash
2011 Amazon sales = $48.1 billionTotal number of retail establishments increased 178% from 1997 to 2007. Web-influenced offline
Only 21% regularly monitor customer segment. Reasons for NOT monitoring customer sentiment24% Lack expertise in monitoring comments23% Too inefficient to monitor comments18% Don’t have time15% Don't trust authenticity of comments6% Not interested / not worth monitoring33% No specific reason, just haven't done it
Q31 and Q32
Retail Tech Adoption
Research Briefing | July 16, 2012 Retail Sector Technology Adoption TrendsWhy | What | How Much | Where
The Retail Sector: Then 1998 Sales Wal-Mart $118.0 billion Sears $41.5 billion Kmart $32.2 billion Amazon $0.65 billion 1998 Household Ownership Computer 42% Cell phone 36% Internet 26% 1998 Payments Cash and checks account for 70% - 75% of customer transactions
The Retail Sector: Now More Options More Information More Moving Parts
What’s Keeping Retailers Awake at Night? Top 5 Priorities Finding/implementing more effective 1 marketing strategies 2 Reducing costs/overhead 3 Improving staff productivity and capabilities Better leveraging technology to improve 4 customer engagement and sales efficiency 5 Need to enhance or refresh product lines
What is Showrooming? Showrooming: the practice of consumers visiting a physical retail store to assess a product (aka visiting a showroom) before making the purchase online to get the lowest possible price. A NET 42% of retailers express concern about the growing practice of showrooming
Importance of Technology to Retailer SuccessTrends Upward, But… Rating of Importance Today The Conundrum • Despite growing importance, the majority of retailers acknowledge the need for improvement in utilizing Very technology. 36% Important • As a sector, retail spends relatively less on technology compared to other industries such as finance or media/entertainment. That may be changing slightly though… 37% Important • The retailers in this study indicate they 21% plan to increase their spending on IT by an average of 4.2% year on year. NET Neutral NETUnimportant Important Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Covering the IT Basics [Before the Fun Stuff] Micro Small Medium LargeTechnologies in Place at Retailers Overall Retailers Retailers Retailers RetailersDesktop or laptop PC 93% 92% 92% 95% 92%Multi-function Printer 82% 83% 81% 80% 85%Broadband (aka high speed Internet) 72% 70% 77% 71% 67%Data back-up (on-site or online) 67% 56% 73% 66% 78%Network (LAN, WAN) 59% 40% 62% 66% 85%WiFi 57% 57% 54% 54% 66%Smartphone 56% 51% 55% 57% 64%Inventory management system or application 53% 31% 59% 62% 74%Customer relationship management (CRM) system or 34% 17% 35% 45% 59%applicationTablet (e.g. iPad, Playbook, etc.) 32% 23% 30% 45% 46% Micro retailers = 1-9 staff Small retailers= 10-99 staff Source: CompTIA’s Retailer Technology Adoption Trends study Medium retailers = 100-499 staff Base: 500 U.S. retailers Large retailers = 500+ staff
Retailers Begin to Experiment with Digital Signage Micro Small Medium Large Digital Signage Usage and Intent to Adopt Overall Retailers Retailers Retailers Retailers Currently using digital signage in some way 33% 22% 34% 37% 53% No, but plan to implement soon 22% 13% 27% 34% 22% No, and no immediate plans to adopt 40% 63% 36% 23% 18% Dont know 4% 2% 3% 6% 7%Micro retailers = 1-9 staffSmall retailers= 10-99 staffMedium retailers = 100-499 staffLarge retailers = 500+ staff Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Retailer Interest in Digital Signage Uses/Capabilities % Digital Signage Use or Capability 71% Sales or promotional announcements 46% Photo display (e.g. images of customers using various products) 38% Custom videos (e.g. tutorials, advice, customer testimonials, etc.) Internet connectivity to display things such as your business website, Facebook, YouTube or 35% other online content 31% Real-time product info (e.g. inventory quantities, product shipment dates, etc.) 30% Entertainment (e.g. TV or movie) to keep kids or others occupied while parents shop 30% Touch screen display that allows customers to directly engage with the display 25% Product reviews from customers or third parties (e.g. Consumer Reports, Amazon, etc.) 18% App-enabled (could run apps on the display similar to apps found on tablets or smartphones) Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Many Retailers Still in the Process of EmbracingE-Commerce & Emerging Payment Technologies Direct sales via own website, using 47% online processing and payment 20% Accept orders via website 45% that are processed offline 18% Alternative POS payment 30% processing, i.e. Square, PayPal 17% Direct sales via a third party 24% website, i.e. eBay, Amazon, Etsy 15% 19% Self-service, in-store kiosk Currently In Place 15% Plan to Deploy/ Adopt Mobile checkout via payment-enabled 13% smartphones or tablets 19% Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Retailers Rely Heavily on Email and Facebookfor Customer Engagement Facebook page geared toward 65% customer engagement 15% 62% Email-based marketing campaigns 20% Digital customer loyalty 31% program (app-based) 27% Blog geared towards 30% customer engagement 23% QR codes used in 25% marketing material 26% Currently Utilizing Geo-location initiative, 21% e.g. Foursquare 28% Planning to Use Social coupon initiative, 18% e.g. Groupon 24% Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Data Analytics and Business Intelligence Tools Changethe Retailer-Customer Relationship Incidence of Use Areas of Interest in Applying Data Analytics / BI Tools No, but Yes, currentplanning to ly using start using 58% Email marketing campaign effectiveness 21% 55% Optimizing inventory replenishment 54% Merchandising optimization (e.g. store layout) 54% Customer profiling and purchase patterns 42% 50% Forecasting 46% Website traffic patterns 37% 46% Social media monitoring 45% Smart recommendations No, and no 42% Optimizing markdowns and discounts immediate plans to start using Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Connecting the Dots:The Role of IT Solution Providers
Where Retailers Purchase IT Products Micro Small Medium LargeIT Purchase Channels Overall Retailers Retailers Retailers RetailersLocal electronics/computer retailer (e.g. Best Buy, Office 43% 57% 50% 30% 13%Depot, Apple Store, Verizon Store, etc.)Direct from an IT hardware or software vendor(e.g. Dell, 31% 19% 29% 44% 49%Salesforce.com, Oracle, IBM, etc.)Online electronics/computer retailer 28% 36% 28% 28% 15%(e.g. Amazon, CDW, etc.)Purchased through an IT solution provider, 22% 10% 24% 39% 32%VAR or tech consultantLocal general retailer (e.g. Wal-Mart, Target, etc.) 22% 27% 20% 20% 18%Purchased through a business consultant 11% 10% 11% 9% 13% Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Types of IT Services Retailers Have UtilizedPast 12 months Repair or troubleshooting IT problems 74% Web design 48% Deployment, installation or 40% integration of IT systems General IT consulting / advisory services 29% Cybersecurity related 23% Telecom or communications related 19% Among retailers that do NOT Mobile app development 14% outsource any IT work, the #1 reason for not doing so is satisfaction with their current Audio/Video related 13% in-house arrangement. Cloud computing initiative 7% Source: CompTIA’s Retailer Technology Adoption Trends study Base: 192 U.S. retailers that use IT solution providers (aka outsource IT functions)
Managed Services Meet Retailers’ Need for MoreConsistent and Reliable IT Operations Rating of Interest in the Concept Aspects of Managed IT Services of Managed IT Services Most Appealing to Retailers 40% 1. Consistent and reliable IT operations 2. Lower total IT costs 23% 26% 3. More technical expertise Very 8% Interested 4. Better security / loss prevention 28% 5. Proactive approach to IT fixes, maintenance, etc. 17% 18% Interested 6. Greater staff productivity due to less IT downtime NET Neutral NET 7. Greater capacity to manage peak busy Uninterested Interest times (e.g. holiday season) Source: CompTIA’s Retailer Technology Adoption Trends study Base: 500 U.S. retailers
Reminders The full report can be found in the member-only area of CompTIA.org (aka MRC) http://www.comptia.org/members/research/allreports/RetailSectorTechAdoption.aspx Solution provider members can share the report with their retail customers or prospects as a means to facilitate ‘trusted advisor’ discussions Vendor and distributor members may share the report with their channel partners (note: as long as they do not post it openly on a public website) Beyond members, feel free to share the report with prospects, partners or other strategic stakeholders. Research is meant to be shared!
Want to know more?As the voice of the IT industry, CompTIA hashundreds of tools, market intelligence reports and comptia.orgtraining programs to help IT channelorganizations grow their business througheducation, certification, advocacy andphilanthropy.Check it out at www.comptia.org.
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