Retail 20/20
Enabling a Clear Customer View
in a Fragmented Environment
Retail 20/20
Agenda
• Vision of data
• The importance of data
• Data channels

• Strategy
• Technology and infrastructure
...
Retail 20/20
Agenda
• Vision of data

Page 3
One Vision of Data
What elements are easily seen and which ones are less visible

Time

Sales
Place

Page 4
The Vision of Data
The bigger reporting picture might be more blurred with clarity

Page 5
The Vision of Data
A 20/20 perspective might clarify our vision of the sales picture

Page 6
Retail 20/20
Agenda

• The importance of data

Page 7
Retail 20/20
Gartner see big data as a revolution

Gartner Research reported that:
“Big Data is set to transform the way c...
Retail 20/20
Increased visibility can lead to increase productivity

Gartner Research reported that:
‘Sales representative...
Retail 20/20
The value of being aware of the conversation

“Any business with more than 100 customers needs to
monitor soc...
Retail 20/20
Businesses regardless of size are vulnerable

Harvey Norman isn’t quite a fan of social media, but I’m
pretty...
Retail 20/20
Telstra’s focus and commitment to data

Page 12
Retail 20/20
Agenda

• Data channels

Page 13
Data Channels
The mobile revolution
•

8.5 Million adults use smartphones

•

49% up to 52% by EOY

•

3.3 Billion Spent o...
Data Channels
Social Interaction is here to stay

The findings showed that across all industries,
Australian businesses re...
Data Channels
Social interaction high
Customer appreciate
thought leadership - Blogs

Page 16
Data Channels
Tapping into personal technology
High budgets, rewards & risks

“Nordstrom are tracking its customers withou...
Data Channels
How far do we go?
How will the customer respond?
What’s in it for them?

“Nordstrom announced it was discont...
Data Channels
Emergence of ‘Big Data’

VOLUME

VARIETY

VELOCITY

Page 19

or
Data Channels
Perspective big data is 2-3 Petabytes
with the SME retail market around 100Gb

1 EXABYTE
= 1 Thousand Petaby...
Data Channels
Big data can be captured at all levels
such as localised intelligence
•

Local Intelligence

•

Floor feedba...
Retail 20/20
Agenda

• Strategy

Page 22
Retail 20/20
4 stages to consider with any data plan

D-Define

A-Acquire

A-Analyse

D-Distribute

Page 23
Data Strategy
Customers see us as single channel

Customers expect their favourite retailers to “know”
them and their pref...
Retail 20/20
Is there a strategy ?

“43% of retailers believed they should be consolidating
customer data with 35% believi...
Data Strategy
Business strive for Omni-channel messages

•

Buy in-store, return to another store (72%)

•

Buy online, pi...
Data Strategy
Integrated channels
75% of retailers find Omni-channel fulfilment to be very
important.
42% of retailers say...
Data Challenges
Understanding and responding

74% of retailers surveyed ranked at or below
“underdeveloped” in terms of th...
Retail 20/20
Define the data

D-Define
Key Questions




What is meaningful to the business?
Is it achievable?
How is t...
Data Channels
With so many customer points
is there an overreaching strategy
or organised in silos of excellence

‘Silo’s
...
Retail 20/20
Acquiring the data

A-Acquire
Key Questions




Where is the data coming from?
Who is responsible for chan...
Retail 20/20
Agenda

• Technology and infrastructure

Page 32
Ecosystem efficiencies
There’s a direct link between operations and strategy

Operational Efficiencies
=
Strategic Plannin...
Ecosystem channels
Inventory management across channels

42% of retailers say that a top inhibitor is that inventory
and o...
Ecosystem channels
Commitment to the channels

In one of the biggest investments yet in its omnichannel
aspirations, Myer ...
Ecosystem channels
Proactive positioning
Q: What drives demand ?

Q: How quickly can we adjust our assortments, forecasts
...
Customer Example
Engaging with customers and translating this back to
data element to drive better experiences
‘My Macy’s’...
Ecosystem channels
Unified sources, platforms and outputs

One Unified Source of Data
=

Streamlined
Retail Value Chain

P...
Retail 20/20
Agenda

• Resources and personnel

Page 39
Resources
Software, BI and idea management

Page 40
Retail 20/20
Outlook in 2014 for CIO’s
Business intelligence and analytics will be the No 1
priority for CIOs next year, f...
Ecosystem channels
BI & analytics are enablers
Business Intelligence can combine classic value
analysis such as time and p...
Retail 20/20
What is the structure of data

A-Analyse
Key Questions




Data model?
Where and how is the data warehouse...
Retail 20/20
Real-time response

Gartner Research reported that:
‘Sales representatives that could leverage data on a
day-...
Retail 20/20
How and to whom should we
distribute information

D-Distribute


Key Questions






Who’s reasonable?
W...
Ecosystem channels
Functional Challenges to consider
• Forecasting
• Merchandising

• Allocations
• Replenishment
• Delive...
Ecosystem channels
Go to market elements to consider
• Brand
• Positioning
• Pricing
• Promotions
• Marketing

• Selling
•...
Ecosystem channels
Business capabilities to consider
• Growth Strategy
• Expansion
• Franchising
• Innovation
• Financial ...
Retail 20/20
To summarise

D-Define
Achieving actionable insight

A-Acquire
Through harnessing information

A-Analyse
Make...
Thank You
Questions ?
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Retail 20/20 - Enabling a clear customer view in a fragmented environment

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Retail 20/20 - Enabling a clear customer view in a fragmented environment

  1. 1. Retail 20/20 Enabling a Clear Customer View in a Fragmented Environment
  2. 2. Retail 20/20 Agenda • Vision of data • The importance of data • Data channels • Strategy • Technology and infrastructure • Resources and personnel Page 2
  3. 3. Retail 20/20 Agenda • Vision of data Page 3
  4. 4. One Vision of Data What elements are easily seen and which ones are less visible Time Sales Place Page 4
  5. 5. The Vision of Data The bigger reporting picture might be more blurred with clarity Page 5
  6. 6. The Vision of Data A 20/20 perspective might clarify our vision of the sales picture Page 6
  7. 7. Retail 20/20 Agenda • The importance of data Page 7
  8. 8. Retail 20/20 Gartner see big data as a revolution Gartner Research reported that: “Big Data is set to transform the way companies manage their relationships with their customers.” Page 8
  9. 9. Retail 20/20 Increased visibility can lead to increase productivity Gartner Research reported that: ‘Sales representatives that could leverage data on a day-to-day basis stood to increase revenue productivity by 17%.’ 2013 Page 9 2014
  10. 10. Retail 20/20 The value of being aware of the conversation “Any business with more than 100 customers needs to monitor social media channels to assess what’s being said about the business and to head off small problems before they become big PR headaches,” Kristen Boschma Aegis Media Page 10
  11. 11. Retail 20/20 Businesses regardless of size are vulnerable Harvey Norman isn’t quite a fan of social media, but I’m pretty pleased that his marketing team are. After learning of an influential blog slamming their radio campaign, the retail giant managed to respond, counter react and change their entire radio strategy on a Sunday afternoon – Image HN updated strategy map Page 11
  12. 12. Retail 20/20 Telstra’s focus and commitment to data Page 12
  13. 13. Retail 20/20 Agenda • Data channels Page 13
  14. 14. Data Channels The mobile revolution • 8.5 Million adults use smartphones • 49% up to 52% by EOY • 3.3 Billion Spent on online advertising • 8.26 Million was mobile advertising • 100 Minutes per day spent on mobile devices • 38% Emails opened on a smartphone (US & Can) Australian Communications and media survey May 2013 Page 14
  15. 15. Data Channels Social Interaction is here to stay The findings showed that across all industries, Australian businesses received nearly 700,000 queries via Facebook, Twitter and other social networks in September 2013. Social Pulse and Online Circle Digital Page 15
  16. 16. Data Channels Social interaction high Customer appreciate thought leadership - Blogs Page 16
  17. 17. Data Channels Tapping into personal technology High budgets, rewards & risks “Nordstrom are tracking its customers without their knowledge in seventeen stores. Nordstrom hired a company to log a unique number emitted by shoppers' smartphones, which automatically connected to Wi-Fi systems as they moved through the stores.” Ken Dilanian for the Los Angeles Times Page 17
  18. 18. Data Channels How far do we go? How will the customer respond? What’s in it for them? “Nordstrom announced it was discontinuing the program”, even though Nordstrom management assured the public “We did not obtain any information about individuals, only a general sense of in-store shopping habits.” Nordstrom response Page 18
  19. 19. Data Channels Emergence of ‘Big Data’ VOLUME VARIETY VELOCITY Page 19 or
  20. 20. Data Channels Perspective big data is 2-3 Petabytes with the SME retail market around 100Gb 1 EXABYTE = 1 Thousand Petabytes 2-3 Petabyte 1PB = 1 thousand terabytes 12 Terabyte 1TB =1 thousand Gigabytes Page 20
  21. 21. Data Channels Big data can be captured at all levels such as localised intelligence • Local Intelligence • Floor feedback • Localised weather • Localised events • Centre activities Page 21
  22. 22. Retail 20/20 Agenda • Strategy Page 22
  23. 23. Retail 20/20 4 stages to consider with any data plan D-Define A-Acquire A-Analyse D-Distribute Page 23
  24. 24. Data Strategy Customers see us as single channel Customers expect their favourite retailers to “know” them and their preferences and to respond with a single “face,” “Without a single view of customer and behaviours across all channels, retailers are facing challenges when it comes to implementing successful Omnichannel marketing, engagement and inventory strategies.” Omni-Channel 2013: The Long Road To Adoption, RSR Page 24
  25. 25. Retail 20/20 Is there a strategy ? “43% of retailers believed they should be consolidating customer data with 35% believing that would gain better insight into cross-channel behaviours that would help them overcome this challenge” Omni-Channel 2013: The Long Road To Adoption, RSR Page 25
  26. 26. Data Strategy Business strive for Omni-channel messages • Buy in-store, return to another store (72%) • Buy online, pick up in-store (60%) • Buy via mobile or web site in-store, ship to home (59%) • Buy via mobile or web site in-store, pick up in-store (58%) • Buy online, return to store (57%) Retail TouchPoints survey 2013 Page 26
  27. 27. Data Strategy Integrated channels 75% of retailers find Omni-channel fulfilment to be very important. 42% of retailers say a top inhibitor of “Omni-channel excellence” is that inventory and order management are not integrated and accessible across all channels Retail Systems Research (RSR) Page 27
  28. 28. Data Challenges Understanding and responding 74% of retailers surveyed ranked at or below “underdeveloped” in terms of their readiness to deliver a seamless customer experience. 81% reported absent or underdeveloped capabilities in tailoring assortment, pricing and shopping occasion to customer expectations across channels. Accenture Survey 2013 Page 28
  29. 29. Retail 20/20 Define the data D-Define Key Questions    What is meaningful to the business? Is it achievable? How is the data positioned? Key Issues    Page 29 Data is difficult to obtain? Data is not structured? No project or defined budget?
  30. 30. Data Channels With so many customer points is there an overreaching strategy or organised in silos of excellence ‘Silo’s of Excellence’ Page 30
  31. 31. Retail 20/20 Acquiring the data A-Acquire Key Questions    Where is the data coming from? Who is responsible for channelling the data? Is the data fragmented? Key Issues    Page 31 No business plan in place? IT staff have no direction or drive? Data is not formatted?
  32. 32. Retail 20/20 Agenda • Technology and infrastructure Page 32
  33. 33. Ecosystem efficiencies There’s a direct link between operations and strategy Operational Efficiencies = Strategic Planning Page 33
  34. 34. Ecosystem channels Inventory management across channels 42% of retailers say that a top inhibitor is that inventory and order management are not integrated and accessible across all channels. Retail Systems Research (RSR) Page 34
  35. 35. Ecosystem channels Commitment to the channels In one of the biggest investments yet in its omnichannel aspirations, Myer has created a dedicated distribution centre to support its growing digital channels. The warehouse, located in Maidstone in Melbourne’s west, close to ports and transport infrastructure, will house and distribute approximately 15,000 of Myer’s most frequently ordered online products. Myer Launches Dedicated DC for Online Page 35
  36. 36. Ecosystem channels Proactive positioning Q: What drives demand ? Q: How quickly can we adjust our assortments, forecasts and plans in-season ? A: With Business Intelligence Analytics forecasts can be based on real-time events such as consumer trends to improve purchase patterns and allocations. A: With integrated operations can we better service to our customers, improve those levels, and reduce both overstocks and stock-outs. Page 36
  37. 37. Customer Example Engaging with customers and translating this back to data element to drive better experiences ‘My Macy’s’ initiative introduced by US retailer Macy’s was one of the first to embrace analytics to position personalisation to the market. Finding that more granular segmentation was required than just working off of past purchase. 90% of their inventory will be visible to their associates on hand-held devices. Page 37
  38. 38. Ecosystem channels Unified sources, platforms and outputs One Unified Source of Data = Streamlined Retail Value Chain Page 38
  39. 39. Retail 20/20 Agenda • Resources and personnel Page 39
  40. 40. Resources Software, BI and idea management Page 40
  41. 41. Retail 20/20 Outlook in 2014 for CIO’s Business intelligence and analytics will be the No 1 priority for CIOs next year, followed by mobile technologies, ERP applications, infrastructure and data centre and cloud. Gartner Business Intelligence = Real-Time Decisions Page 41
  42. 42. Ecosystem channels BI & analytics are enablers Business Intelligence can combine classic value analysis such as time and place with customer sentiment to determine if there are high-impact issues, growth opportunities, customers pushback or localised fashion trends. Having an analytical infrastructure enables businesses and their stakeholders to respond to unstructured buying signals within an optimal timeframe. Page 42
  43. 43. Retail 20/20 What is the structure of data A-Analyse Key Questions    Data model? Where and how is the data warehoused? Structured tables, dimensions and joins? Key Issues    Page 43 Work from the decisions back. How far in the past. What triggers a decision.
  44. 44. Retail 20/20 Real-time response Gartner Research reported that: ‘Sales representatives that could leverage data on a day-to-day basis stood to increase revenue productivity by 17%.’ 2013 Page 44 2014
  45. 45. Retail 20/20 How and to whom should we distribute information D-Distribute  Key Questions     Who’s reasonable? What is not easily captured? How is it entered and where is most relevant? Key Issues    Page 45 Has the message been articulated. Taking reasonability. Give more than take.
  46. 46. Ecosystem channels Functional Challenges to consider • Forecasting • Merchandising • Allocations • Replenishment • Delivery • Services Page 46 Functional Challenges
  47. 47. Ecosystem channels Go to market elements to consider • Brand • Positioning • Pricing • Promotions • Marketing • Selling • Customer Service Page 47 Go-to-market Capabilities
  48. 48. Ecosystem channels Business capabilities to consider • Growth Strategy • Expansion • Franchising • Innovation • Financial Management • Employee Management Page 48 Business Capabilities
  49. 49. Retail 20/20 To summarise D-Define Achieving actionable insight A-Acquire Through harnessing information A-Analyse Make more informed Decisions D-Distribute Better outcomes, creating value Page 49
  50. 50. Thank You Questions ?

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