Smarter consumers are changing the retail industry by being instrumented, interconnected, and intelligent. They have instant access to information, use multiple technologies to interact with others, and use cross-channel retail in every stage of buying. Smarter retailers must attract and retain customers through seamless cross-channel experiences, use available data through business intelligence, and drive operational excellence through efficiencies and standardization. This will allow them to serve smarter consumers and improve sales and profitability.
3. Smarter consumers are changing the retail industry
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Instrumented: Interconnected: Intelligent:
They have They use multiple Using all options of
instantaneous access to technologies to cross channel retail
information about interact with other in every stage of
retailers, products and consumers and with the buying process
other consumers’ retailers
experiences through
technology
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4. Smarter consumers are using all options of cross
channel retailing in every stage of the buying process
Awareness Browse & Service &
Research Purchase Receive
Support
Giving customers the ability to shop
Choice how they want
Ensuring fulfillment of brand promise and
Consistency customer expectations
Context Providing the right interaction at the right time
Community Facilitating a social and emotional connection
Continuity Enabling seamless “flows” across touchpoints
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Source: IBM Global Retail Industry
5. Overall sales growth will likely be modest , with an
ongoing redistribution between the different channels
eCommerce growth: Online turnover NL in Bn
NL online consumer spending in 2009 has € 7.000
grown by 17% in 2009 to EUR 6.4 Bn
€ 6.000
Source: Thuiswinkel Markt Monitor 2009-2, Blauw Research
€ 5.000
Supermarket growth: € 4.000
The NL supermarkets and drugstores are
€ 3.000
the only retail segments in 2010 to
experience sales growth recovery. € 2.000
With the huge price and promotion
pressure, combined with the cautious € 1.000
consumer, 2010 sales growth will likely not €0
exceed 1 percent
Source: Distrifood 10 maart 2010
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6. Smarter consumers require a (mind)shift of retailers
Attract and retain Use your data Improve
customers pools efficiencies
Smarter Smarter
merchandising Smarter
Shopping
& supply chains Operations
Experience
How can I use What new tools are
How to connect, business analytics available for retailers
attract and retain to drive my to support store
the smarter operations and help operations and
consumer? me serve my reduce (labor) costs
customer needs without impacting
better customers
Connectivity Intelligence Tools
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7. Smart retailers work on three areas simultaneously
Attract and retain customers Using available data
Cross-channel retailing Improve responsiveness
Social Networking Retailer dashboards
Deliver a Create (a) data driven
superior customer-centric
shopping flexible merchandising
experience and supply chain
Drive operational excellence
Improve efficiencies
Harmonize, standardize and automate processes
Best-of-Breed add-ons for specific areas
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8. Attract and retain consumers: Moosejaw provides
innovative community-based multi-channel shopping
Interactive, social,
community shopping
experience
Seamless shopping
experience across the Web,
stores and mobile devices
Blogging, group discussion,
BENEFITS: and social networking build
community
• Increased conversions and revenue
Customer feedback and
• Increased customer loyalty reviews improve products
and customer experiences
• Increased customer satisfaction
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9. Social networking is a growing factor in Retail & CPG in order to
get connected with consumers
Coca-
Coca-Cola: 5 million Facebook fans NL retailers on Twitter
Intertoys Sacha shoes Coffee company
Starbucks on multiple platforms
HEMA Praxis Hunkemoller
Potten & Selexyz Bol.com
Pannen
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11. Business Intelligence is a critical tool to unlock data
Promotional Display
Buy X get Z for only $1.49! Market basket insights Transactions
If A then B from all
If C then D customers
If E and F then G
If H, then H then I
Special Offer – This Week Only
10% off on any of these
combinations: A + B…G + H….
Offers
Transactions from this
% $ 1 Gillette razors customer
Statement Cardholder since YYYYMM
insert % $ 2 L’Oreal shampoo Average transaction value
Monthly transaction value
3 13 % $ 3 House brand shampoo
Categories purchased
% $ 4 House brand hair color Brands purchased
6 12
% $ 5 Colgate toothpaste Descriptive
Age
% $ 6 Nivea skin care Gender
% $ 7 Men’s fragrance Family situation
Zip code
Statement % $ 8 Woman’s fragrance
insert % $ 9 House brand sun care Interactions
Web registration
?
12 ?
15 % $ 10 Optician Web visits
Customer service contacts
% $ 11 Feminine hygiene
?
11 ?
3 Channel preference
% $ 12 Online photo service
@
% $ 13 Family planning Attitudes
Satisfaction scores
% $ 14 Pampers diapers Shopper type
Eco score
% $ 15 House brand diapers
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12. Yves Rocher uses business rules to meet business
needs with technology
Rules-driven business
processes
Business environment
changes trigger response
Store merchandising and
promotions respond
Personalized loyalty and
promotion
BENEFITS:
Business users use rules to optimize store shelves
Greater customer loyalty and traffic higher revenue
More creative and personalized promotions on rewritable loyalty card
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13. Reducing costs & expenses remains critical
Cost of Goods Sold as
% of Revenue
Operating Selling, General &
Income Margin
Administrative as % of
(Profitability)
Revenue
Depreciation &
Amortization as % of
Revenue
Source: http://imway2fat.wordpress.com/2009/04/18/
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14. Retailers simplify their systems landscapes
SUPPLY CHAIN
Product
Availability
Price/
Assortment Promotions
Human
Resources MERCHANDISING
Call
Centers
Quality
BACK
OFFICE KEY SHOPPING CHANNELS
IT
FUNCTIONS COMPETENCIES
Customer
Indirect Service
Procurement
CUSTOMER
Finance and EXPERIENCE
Accounting
Convenience Multichannel
Store
Experience
Information Flow Source: IBM, "Shopper advocacy: Building consumer trust in the new economy"
Product Flow
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15. Collabaration, standardisation and seamless integration
between all parties in the supply chain is key for efficient and
effective data management
Maximizing customer
satisfaction & revenue
Customer
Customer Service/ Care opportunities
Self Service
Optimizing the
business with right-
time information Billing
Marketing/Sales
Interactions
Tools Enrich
End to End
Master Data
Security Hierarchies
Authoring Management Operational
Financial Planning
Search
Stewardship
Ensuring all systems
Back office
have consistent &
Systems complete information
Fraud Avoidance in real time
Understanding the
choices & planning New Product
with accurate Introduction
Regulatory
information Compliance
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16. Add Best-of-Breed modules to your ERP backbone
Optimization solutions Sustainability solutions
Dynamic eCommerce
merchandising Multichannel
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17. Smart workforce planning tools deliver hard (proven) benefits
A Billion dollar retailer could drive a positive impact of millions of Euro by:
Automating labor scheduling and time and attendance processes could
save EUR 6.5 million in lost employee productivity
Improving planogram compliance by 20 percent could generate EUR10
million in additional sales
Ensuring consistent in-store execution of marketing strategy could generate
in-
EUR 50 million in incremental sales
Reducing employee turnover through better labor scheduling could save up
to EUR 3 million
Improving efficiency of managers in the field − it could save up to EUR 1
million
... I always shop between 5 and 6 on Fridays
… Why don´t they have the checkout open
… Why isn´t there someone to answer my question
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18. Green retailing is just (good) business
Reporting Governance Transform
Govern, Report & Data management Visibility Actionable Data
Transform
Automated
Monitor/alert system Deliverable Platform
Process
Executive Dashboards &
Analytics Workbench
Aggregate, Carbon Emissions Energy Use Asset maintenance
Analyze Inventory Smart Grid Interface Paperless Process
& Manage Automation programs Demand Management Improve Energy Usage
Actionable Data Monetization Alternative source Reduce Emissions
Locate High Producing Reduce Emissions Green Procurement
Data •Service •Supply •Employee •Facilities & •Data center
•Suppliers
Sources Providers Chain travel Buildings & IT systems
•Transportation •Manufacturing
& Logistics operations
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19. Tesco & Sainsbury´s store examples
Tesco has opened its first eco-store in Tramore,
Ireland. The store was built with environmentally
friendly construction materials, and technological
features to create self-sufficiency for heating and hot
water, including solar panels to generate electricity,
air retrieval, and recycling materials
At the newly opened 'greenest supermarket' of
Sainsbury's in Gloucester, the energy for the
POS is generated by customers as they drive
on kinetic plates on the road at the entrance of
the parking garage.
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20. Conclusions
Use the smarter consumer to develop a busines and ICT
roadmap to the future
Define the branding and the core competence of your
own organisation
– How to use you core competence to attract and retain the
smarter consumer
– How to use the consumer data to built a consumer driven
organisation
– How to standardise and make effective use of tooling in order to
be as efficient as possible
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22. IBM´s offering portfolio brings together IBM cross
brand capabilities to deliver retail business solutions
• Smarter Planet for Retail – Sets the vision and direction for future capabilities
• Business Analytics & Optimization – Infuse intelligence and optimizing our retail capabilities
• Next Generation Data Center – New ways to deliver retail capabilities
• Growth Markets – Deliver retail solutions tailored to market demand and capabilities
Deliver smarter shopping Create smarter merchandising & Build smarter operations
experience supply chains IT Infrastructure
Next Generation e-Commerce Integrated Merchandise Planning Application Maintenance
Retail Offerings
Single View of Customer Product Information & Attribute Indirect Procurement
Management Store Managed Services
Multi-Channel Order Management
Core Merchandising CRM/Call Center
Kiosk Business Solutions
w/SAP/Aldata/Oracle
Customer Workbench & Analytics Finance & Administration
Integrated Supply Chain
Store / Multi Channel Workbench & Workforce Productivity
Business Process Management
Analytics Energy Performance Management
Merchandising Workbench & Analytics
Advertising, Marketing & Promotions IT Consolidation & Optimization
Supply Chain Workbench & Analytics
Customer Call Center IT Productivity
Price - Revenue Optimization
Store Checkout Enterprise Asset Management
Global Sourcing & Product Development
Financial Performance Management
Retail Foundational
SOA
STG, SWG & IBM Retail Industry Framework
GTS Information Agenda
Offerings
Merchandising & Product
Products& Channels
Store & Service Management
Management & Security IT Systems & Operations
Service Lines Application Management & Deployment
Marketing & Customer Business & Finance
Supply Chain
Management Access and Collaboration Operations
New Enterprise Data Center
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23. IBM contact details
Rob Vos
Partner Global Business Services Benelux Retail
rob.vos@nl.ibm.com
06-51227082 / 020-5134254 (secretariaat)
Jerry Stam
Sr Managing consultant Retail solutions
jerry.stam@nl.ibm.com
06-51285639
Jeroen Grootnibbelink
Sr Managing consultant Retail eCommerce
jeroen.grootnibbelink@nl.ibm.com
06-20855607
Website:
www.ibm.com/retail/nl
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