1. REALIZING THE VALUE OF SUPERMARKET POINT OF SALE DATA
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INDUSTRY OVERVIEW
SOLUTION
Supermarket retailers, regardless of size, will be at a significant
competitive disadvantage if they do not invest in modern technology
to facilitate data-driven marketing and operational strategies due to:
grow cash flow from is point-of-sale (POS) transaction logs. Historically,
retailer could process tens or hundreds of thousands of records daily.
Changing consumer preferences that favor value and relevance
51%
POS Transaction Data
The imminent competitive threat of AmazonFresh
18%
Sensors in Retail Environment
Drastically declining data storage fees which now allows big data to be
10%
Shopper Feedback
analyzed at a reasonable price
8%
Automated Product Recognition
The beneifts for on-demand supply chain collaboration, including data
13%
Other
sharing and adaptive intelligence business processes
0
10
30
20
50
40
60
$$
OPEN
KEY FINANCIAL METRICS
IMPORTANT TRENDS
EMERGING THREAT
Changing consumer preferences
U.S GROCERY INDUSTRY
AmazonFresh
fresh grocery and local products
~
eCommerce and same-day delivery
IMPORTANT TRENDS
CHANGING CONSUMER PREFERENCES
VALUE DISCOVERY AND OTHER ACTIVITIES
CONSUMER SEEKING DISCOUNTS
(% of Shopper Whose Primary Store Is Not the Closest to Home)
(% of Shoppers)
(% Shoppers who use technology for more than 25% of Shopping Trips)
68% of consumers believe mobile will play a significant role
+28%
78%
Lower
Lower
grocery
prices
prices
fresh
(in general) on specific product food quality
items
variety and variety
and selection
Changed Will revert
to post behavior
during
behavior recession recessionary going
behavior forward
Always
Get coupons Chechk
pre-trip
prices
pre-trip
In-store
Self
Compare Loyalty
pricing application navigation checkout
tool
scan app
Research
Make
products shopping list
pre-trip on mobile
device
ip
Ch
The 65+ yr. old segment will increase 7%
All other age segments will remain flat
10
20
Locations
Real-Time
VELOCITY
POS
Data
Sensor Data
Facebook
Google+
30
Twitter
Payments
Customer Profiles
Clicks
40
Weather
50
Shipments
Transaction
Financials
Analytical
Factory
Online Forums
Hadoop/Map Reduce
History
HR Records
SharePoint
Video
60
Environmental
70
Data Warehouse
Structured Data
80
Unstructured Data
76%
VARIETY+VOLUME
70%
Strengthening Creating
Personalized
Shopper
Promotions
Engagement
43%
38%
Enabling
More
Shopper
Solutions
Implementing
Store-Specific
Assortments
ECOMMERCE AND SAME-DAY DELIVERY
$25
$20
$15
$10
SAME-DAY DELIVERY
Pros:
$5
$0
Cons: The cost to deliver low-margin groceries may outweigh the incremental contribution margin
$5
$12
$17
$25
2006
delivery, but few were found to pay for in-store pickup.
$8
2008
2010
2012
2014
VALUE OF ON-DEMAND POS DATA
REPORTING
Get access to data immediately as new technologies, like Hadoop, allow queries to be run
against hundreds of millions of records in seconds
Augment data from sensors, offers, loyalty, SKU catalog, locations and more to gain a complete operational view
Transform raw POS data into a platform with a unified application programming interface (API) layer
Grow revenue by optimizing each store for their target customer and demographic market
Use machine learning to derive rich insights, including
75% of retail professionals believe inventory management has the greatest impact to managing the supply-side
Machine learning applied to POS data can help you anticipate demand by understanding:
POS logs hold key inputs to predicting:
PREVENT FRAUD TO REDUCE SHRINKAGE
Checkout fraud is estimated to cost $828 million dollars
Machine learning can automate fraud identification; APIs can trigger alerts that detect:
The most untapped area of value for POS transaction data is supply chain collaboration
The primary challenge with using this data is volume, velocity, and cost as larger retailers
may even record millions of data points per hour
Direct Store Distributors (DSD) benefit the most from immediate sales information
SAVE $$$
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CREDITS
Authored by
Designed by Jasmine Yu
REFERENCES
Grocers are poor at delivering highly relevant digital coupons to customers
Product recommendations can be built from a variety of sources; POS data is the top source
Personalized, digital coupons have numerous benefits
SWIFT IQ
and Vanessa Youshaei