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Tech Innovators - RIS
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Tech Innovators - RIS
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Tech Innovators - RIS

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Innovation is a must-have when whirlwinds reign that can either recreate business or wipe them out. With its ability to analyze shopper movement within the store, iInside provides intelligence, …

Innovation is a must-have when whirlwinds reign that can either recreate business or wipe them out. With its ability to analyze shopper movement within the store, iInside provides intelligence, capabilities and actionable insight for retailers.

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  • 1. A S U P P L E M E N T T O R I S N E W S Innovation is a must-have when whirlwinds reign that can either recreate business or wipe them out W it h S h are d I nsi g h t F rom pro d u c e d b y
  • 2. R 26 J U N E 2 0 1 3 R I S N E W S . C O M The Innovation Dilemma therefore ignored the upstart MP3. Sony owned one of the largest music organizations on the planet but never leveraged it into something like iTunes. Sony owned a major Hol- lywood studio and didn’t shift into streaming video to become Hulu or Netflix. And, finally, Sony was the premier electronics manufacturer in the world but never made a meaning- ful move into mobile phones. Instead of focusing on innovation, Yahoo and Sony chose to become high- ly efficient companies because that’s where the money was. But making money is a great and wonderful thing until the day it stops and your finely tuned machine hurtles over the cliff. “The era of true retail innovation has arrived,” says Jeff Roster, research vice president for Gartner, in the 2013 RIS/Gartner Retail Technology Study. Roster adds that the forces of innova- tion are producing “a whirlwind that will either recreate businesses or level them.” Retailers with effective and efficient systems in place are like sports cars with finely tuned engines. They are fast but they are not guaranteed a checkered flag at the end of the race. In fact, retailers with smoothly humming engines can run their or- ganizations right off a cliff in trans- formational times like these when innovation becomes the necessary ingredient for success. Think of Yahoo and Sony, two great companies that changed the world. Yahoo was the first and fastest sports car on the information superhighway back in the day. It owned the Internet desktop, but just when profits started to roll in Yahoo became conservative and opted to preserve corporate val- ue. As Yahoo was idling along at the head of the pack it ignored opportuni- ties that were seized by such upstarts as Amazon, eBay and Google. However, Sony’s example makes Yahoo pale in comparison. Sony owned the Walkman market and CLOUD-BASED FLexibility Fortunately for retailers, there is an innovative technology that provides a pathway around the whirlwind. The cloud delivery model has emerged as a unique method for retailers to leap- frog their current limitations and end up with a 21st century solution set. It lets retailers quickly add advanced e- commerce and omnichannel capabili- ties without incurring heavy upfront costs. In addition, it is ideally suited to support rapid expansion into global markets. Cloud technology is the founda- tional model upon which Demand- ware has been built and it takes the concept a step further by not only de- livering an e-commerce solution but by tightly coupling a related solution set together to create a robust om- nichannel platform. A good partnership with a cloud- based vendor helps retailers stay ahead of the curve by adding a power- ful member to the innovation team. “Last year Demandware had six ma- jor releases with 44 revenue-driving features introduced into our plat- form,” says Rob Garf, vice president of product and solutions marketing for Demandware. “Our community is constantly innovating and pouring enhancements into the platform. Our clients take advantage of them with- out the disruptive nature of a tradi- Investing in efficiency is not enough when whirlwinds blow that will either create new businesses or destroy old ones BY JOE SKORUPA The era of true retail innovation has arrived and it is producing “a whirlwind that will either recreate businesses or level them.”
  • 3. R I S N E W S . C O M J U N E 2 0 1 3 27 To get to a level of granularity, sensing devices are placed through- out the store and set up for specific configurations based on the retailer’s goals. For example, some retailers want to see how shoppers move from department to department. Others want to learn how customers experi- ence signage and end-cap displays. Like the data collected by online retailers, in-store tracking data has major implications for store opera- tions and merchandising. In addi- tion, by tracking shoppers who spend time in a particular department and then comparing conversion numbers through POS transactions, it is able to settle questions about showroom- ing once and for all. Managing Web Complexity The proliferation of digital devices and connectivity methods is forcing e-commerce retailers to rethink their performance infrastructure to bet- ter manage the full range of digital experiences. Retailers can no longer assume the vast majority of shoppers interacting with their digital site will be doing so by using a mouse or key- tional software upgrade.” Reducing upfront infrastructure expenses is a critical element for today’s global expansion plans and cloud technology offers retailers a unique opportunity for achieving suc- cess while lowering risks. A great deal of the process can be streamlined by opening up an online channel and using the cloud to establish a local brand experience with targeted prod- uct assortments while using a single instance of all applications. Power of Traffic Analysis The use of cookies, website heat maps and other tracking methods in the digital realm offers retailers an unprecedented ability to understand the behavioral patterns of online cus- tomers. As analysis of this data began to produce measurable results for on- line retailers it became apparent to brick-and-mortar retailers that they needed the same ability to aggregate and analyze shopper behavioral pat- terns while they were moving inside the store. In the age of ubiquitous mobile devices this concept has now become a reality. One vendor that offers such a shopper tracking and analytics so- lution is iInside, which uses mobile location services to passively detect consumer mobile devices within a store and analyze the in-store path to purchase. “We anonymize the signals and create a unique identifier for each one,” says Jim Riesenbach, CEO of iInside. “The data is then aggregated so that we can follow shoppers’ pat- terns.” board. Nor can they assume shoppers are connecting through fixed net- works. “Retailers can no longer think of their website as one indivisible thing that’s the same for all users,” says Mike Afergan, senior vice president and general manager of Web experi- ence at Akamai Technologies. “They need to think about all the different situations that their Web experience will be consumed in.” Due to the explosion of mobile devices and wireless access points a new level of complexity is forcing e- commerce retailers to look for ways to manage situational (device and connectivity) awareness. Akamai has taken an innovative approach to this problem by developing an intelligent platform called Aqua Ion that deter- mines what technologies to apply to each shopper’s digital device and con- nection method. According to Afergan, the platform is being constantly updated and in- novations added, which is critical in an age when whirlwinds and cliffs threaten even the most finely tuned sports cars. RIS tech innovators 2013 Retailers with smoothly humming engines can run their organizations right off a cliff in transformational times when innovation becomes the necessary ingredient for success.
  • 4. The rise of omnichannel retailing has awakened a hunger for insights among brick-and-mortar retailers. They envy digital commerce’s ability to track ev- ery Web click and mobile finger-swipe that precisely maps the shopper’s path to purchase. The ubiquity of consumers’ mobile devices, however, is bringing online- style capabilities into the retail store, with customer tracking and traffic ana- lytics tools from companies including iInside. Their mobile location service solution can passively detect consum- ers’ mobile devices within a store envi- ronment from the signals they send out. “We anonymize the signals and cre- ate a unique identifier for each one; there’s no personally identifiable infor- mation about the device’s owner or even the phone. Nothing can be extrapolated back to the individual customer,” ex- plains Jim Riesenbach, CEO of iInside, a WirelessWERX company. “The data is aggregated so that we can follow shop- pers’ patterns.” Different Ranges, Different Goals The iInside solution uses a number of inexpensive sensing devices placed throughout the store, with the specific configuration based on the retailer’s goals and the insights they are seek- ing. “Each one can be set to a level to see as granular a range as one meter, or as broadly as 50 meters,” explains Riesenbach. “If we’re working with a retailer that wants to understand how customers are moving from department to department, and what their path is through the store, our solution can be set up with a relatively small number of devices.” In contrast, in a grocery store where the retailer would want to learn about how customers are experiencing sig- nage and end-cap displays, the impact of specific merchandise selections or the average queue times at checkout, more devices with smaller ranges would be needed. Variety of Insights “We can see the consumers that go in, and where their first intent is in the store – the first department they visit and the dwell time there and throughout the store,” says Riesenbach. “There are both operational and merchandising compo- nents to the data we can provide.” For example, iInside is working with a major consumer electronics chain to “test different store formats, layouts and consumer experiences,” notes Ri- esenbach. “Other clients rely on our analytics to optimize merchandising and marketing spend, and to staff more efficiently and improve operations. The ability to measure in-store traffic helps our clients determine the conversion or sales effectiveness of a single depart- ment across every store in their chain. As a result, they’re able to isolate valu- able performance data that could never otherwise be available, and make the necessary adjustments to improve prof- itability. “We provide the most reliable, gran- ular view of what’s happening inside the store, down to the one-meter zone,” Riesenbach adds. “With this view, we can provide insights, capabilities and actionable results for the retailer.” • In-store mobile location tracking provides a new level of granular detail and strategic insight AddingMobiletoin-storetracking 32 J U N E 2 0 1 3 R I S N E W S . C O M tech innovators 2013: iinside Headquarters Yorba Linda, CA Website www.iinside.com i I n side , a WirelessWERX company I N N O V A T I O N Q U O T I E N T With its ability to analyze shopper movement within the store, iInside provides intelligence, capabilities and actionable insight for retailers.
  • 5. Revenue.Your customer’s in-store path and behavior holds the key to tremendous insight. Shoppers face countless options, with each trip a new opportunity for conversion and satisfaction. Accurately knowing which departments they visit, when, and for how long can inform your business as much as your POS data. How long do they dwell in each department and when? How often do they return? For those who don’t buy… where did they go? For each decision you make in mer- chandising, marketing and operations… what was the effect on traffic? Now you have the resource to know. KnowYour Shopper&GrowYour Wouldn’t it be helpful to operate with deep insight into your shoppers’ behavior and motivation? iInside’s retail location solutions offer the most precise indoor location technology available for capturing and analyzing consumer movement and understanding in-store traffic and behavior. With iInside, businesses gain strategic awareness to optimize revenue, test resources, identify departmental performance and increase conversion. “Turning shopper behavior into actionable insights is our company mission,” says Jon Rosen, executive vice president of corporate development at iInside. “When we understand where our shoppers are going, when they visit and how long they stay, we understand their intent and can inform our teams to better serve them. iInside delivers precise shopper traffic insights, and enables retailers to appeal to shoppers at a more informed level.” Understanding in-store traffic behavior reveals shopper motivations and actions that are crucial to optimizing sales and revenue performance. With detailed shopper traffic data, retailers can improve operations, enhance the shopper experience and increase the performance of stores and departments, while protecting the anonymity and privacy of every consumer. You spend a substantial amount of resources pro- moting your products. What is the precise effect of those efforts? In today’s customer-centric landscape, retailers struggle to identify which marketing efforts resonate. Shopper traffic measurements inform the direct and indirect effect of campaigns – so that marketing budgets can be channeled to maximize revenue. The ability to identify and understand shopper behavior provides ac- curate information regarding the potential for new products. Detailed shopper traffic data identifies marketing efforts that drive demand, and those that do not, and when and where across the chain. An improved checkout experience equals dollars and cents for your business A critical Customer Service metric is the wait time at checkout. It’s now fast, easy and inexpensive to implement a Queue Management solution at POS across the entire chain. With precise wait time reports, retailers can set standards, measure and manage wait times at every store, and even every register. The result? Better customer service, higher conver- sion and increased repeat visits. Today’s retail marketing and merchandising managers must: Understand the connections between in-store traffic and marketing and merchandising efforts. Improve marketing by testing media and messages against shopper behavior beyond POS data. Leverage shopper traffic data to make better decisions about products, placement, marketing and operations. Increase sell-through and retention with data-driven approaches through in-store behavioral analytics. iInside helps you answer the important questions: Which departments across the chain are converting well or poorly? How does each department in each individual store convert compared to the company average? How long are people waiting to check out at POS? Did a promotion drive traffic to the right products? Are displays and signs working? Does advertising drive the desired results? With indoor traffic metrics, you can measure the actions that made a difference. Request an introductory WebEx at 877.500.9379. For more information, visit us at www.iInside.com.

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