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Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World
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Stores Under Siege: Balancing Sales, Service and Execution in an All-Channel World

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Traditional bricks-and-mortar stores are still the primary way people acquire merchandise. As physical retailers’ extension into a multi-channel world grows – along with consumers’ expectations – the …

Traditional bricks-and-mortar stores are still the primary way people acquire merchandise. As physical retailers’ extension into a multi-channel world grows – along with consumers’ expectations – the pressure on retail stores to be the heartbeat of an all-channel customer experience has never been greater. Making the most of every dollar invested in labor is critical to ensuring optimal service levels, timely task execution, maximum revenue and loyalty-building store visits.

In this presentation, Dave Bruno, Director of Commerce Studies for RedPrairie, explores the latest research into the challenges facing modern retail workforce managers and discusses modern techniques that many leading companies leverage to engage, empower and mobilize their workforce to deliver optimal all-channel store experiences.

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  • Managing the inbound flow of orders to keep pickers from swarming the aisles
  • Advanced workforce management solutions that are based on forecasted demand can drive sales results. Retailers are able to more accurately forecast and build staffing levels based on expected sales and traffic patterns in the store. By scheduling the right number of people at the right time in the right departments, retailers can ensure that customers will be served by the most knowledgeable associates. However, even the best forecast can be rendered inaccurate by unforeseen events such as extreme weather conditions. With the ability to adjust forecasts with up-to-the-minute trends and the anticipated impact of situations, staffing can be increased or cut back accordingly. 
  • Their Complex pay rules are about shift premium pay and NY meal laws
  • OT – 65k/week to 8k per week
  • Transcript

    • 1. Stores Under SiegeBalancing Costs, Service, and Executionin a Low-Growth, All-Channel Market#CommerceInMotion
    • 2. #CommerceInMotion 2
    • 3. Stores Under SiegeThe Pressures Have Never Been Greater#CommerceInMotion
    • 4. US Retailers Have Closed5,299Stores a Year Since 2001 *Excess Space Retail Services #CommerceInMotion 4
    • 5. Analysts forecast a2.2%Decline in store trafficduring 2011 holiday season*ShopperTrac Foot Traffic is Falling #CommerceInMotion 5
    • 6. 25.60% Increased 46.20%Remained Flat 28.20% Decreased2011 Labor Budget Changes *Integrated Solutions for Retailers Payroll Keeps Tightening #CommerceInMotion 6
    • 7. 75%-110% Retail Turnover Every Year Source: NRF Turnover is Constant #CommerceInMotion 7
    • 8. All-Channel Shoppers EmergeNew Devices, New Networks, New Channels,New Opportunities#CommerceInMotion
    • 9. Share of Wallet Continues to Shiftto Digital Channels #CommerceInMotion 10
    • 10. Social, Mobile, Local Shoppers Are Everywhere #CommerceInMotion 11
    • 11. m-Commerce: Relentless Growth #CommerceInMotion 12
    • 12. s-Commerce: Explosive Growth Looms #CommerceInMotion 13
    • 13. t-Commerce: Compelling Early Numbers the average iPad conversion rate is 7x iPad shoppers purchase that of smartphone devices *Shopatron Dual owners buy on mobile twice as often as single owners. “Duals” made >20 mobile purchases in the last year. 50% more than traditional web users *Shopatron #CommerceInMotion 14
    • 14. The Good News?More Channels = More Success #CommerceInMotion 15
    • 15. 74% of Retail Winners enable store-level pick, pack, and pay processes for non-store customer orders Source: RSR ResearchCompetitive Pressures Are Rising #CommerceInMotion 16
    • 16. More and More Retailers AreTaking A Shot… #CommerceInMotion 17
    • 17. New Channels, New ChallengesEvolving Service, Fulfillment, and PromotionExecution Pressures Increase the Strain on Stores#CommerceInMotion
    • 18. So Far, Experiences Are Mixed Only 33% of shoppers refuse to pick up orders in store because of long wait times and bad experiences *Compete Retail Survey 2011 50% of winners have effectively integrated new cross-channel processes *RSR Research #CommerceInMotion 19
    • 19. 83% of Retail Winners are struggling to effectively controllabor costs while integrating new cross- channel strategies into the store Source: RSR Research #CommerceInMotion 20
    • 20. 40% of coupon enthusiasts have household income over $70K *Neilsen84%of US consumers plan to use mobile shoppingapps to help save money on holiday giftsSource: Experian62%rarely pay full price for clothingSource: Mintel Pricing Pandemonium Puts a Premium on Service #CommerceInMotion 21
    • 21. 55% of retail associates indicated thatshoppers were better connected to product information than in-store associates *Motorola Shopper Survey 2011Service is Slipping #CommerceInMotion 22
    • 22. 28% of store visits end with an average of $132 unspent Deal-habituated behavior Smartphones influence Out-of-stocks 39%of all walk-outs *Motorola Limited store associate assistance Long check-out processes *Motorola Shopper Survey 2011Conversions Are Declining #CommerceInMotion 23
    • 23. The BottomLine… 55% of retailers cite “Changing Customer Expectations” as the top pressure driving Workforce Management efforts *Aberdeen Group 2011 #CommerceInMotion 24
    • 24. Fighting Back…Four Keys to Better Experiences, More CostEffective Execution, Higher Conversions#CommerceInMotion
    • 25. 1 Better Forecasting = Better ExperiencesMatching Staff to Only… Total Demand 21% of retailers employ forecasting software *Aberdeen #CommerceInMotion 26
    • 26. 1. Account for unique demand patterns inside – and outside the store 2. Incorporate promotion plans 3. Forecast in multiple dimensions 4. Smooth demand aberrations 5. Embrace dynamic modeling 6. Incorporate non-sales demand dataSteps to Matching Staff to Demand #CommerceInMotion 27
    • 27. Better Forecasts DeliverBetter Experiences Service and Fulfillment Schedules and Skills Capacity Increases Are Better Aligned During Peaks Events are Auto- to Demand Detected Across Channels 64% Seasonality and Non-Store Demand is Anticipated Better Data, Science Integrated into Forecasts of retailers list forecasting as their top workforce priority *RIS News #CommerceInMotion 28
    • 28. Effective Scheduling is Critical2 to Cost Control SCHEDULING BEYOND POINT OF SALE MATTERS! #CommerceInMotion 29
    • 29. A Recipe for Optimizing the Talent Pool #CommerceInMotion 30
    • 30. Best in Class See11%Improved customer Satisfaction Wall-to-Wall Scheduling Optimizes Investments Best in Class Industry Average Laggards 90% Scheduling Accuracy 86% Scheduling Accuracy 69% Scheduling Accuracy 4% of overtime unplanned 10% of overtime unplanned 37% of overtime unplanned *Aberdeen Group #CommerceInMotion 31
    • 31. The Next LevelEmpower Employeeswith Agile Scheduling to Reduce Turnover #CommerceInMotion 32
    • 32. Improving Work/Life Fit is Mandatory“High attrition and absenteeism stem from an outdated assumption… that any responsible and committed employee is always available for work. This was a reasonable assumption in the 1960’s economy when breadwinners married homemakers. *The Center for Work-Life Law ”This assumption is now sorely outdated #CommerceInMotion 33
    • 33. Best Practices for Agile Scheduling Companies that Automate Scheduling• Incorporate employee and Enable Bidding/Swapping: preferences• Employee self-service 8% Employee Engagement• Ubiquitous access• Shift Swapping 13% Customer Satisfaction• Bidding for shifts• Mobile enablement 22% Overtime *Aberdeen Group 29% of retailers provide shift availability on mobile devices #CommerceInMotion 34
    • 34. Efficient Execution Can3 Ensure Optimal Service #CommerceInMotion 35
    • 35. 70% say workloads have increased and74%say labor budgets are down or flat*Integrated Solutions for RetailersStore Managers Are Feeling the Pressure #CommerceInMotion 36
    • 36. Best Practices for ExecutionManagement in an All-Channel Store• Standardized Best Practices• Centralized Communication The Key to Store Revival?•••• Task Prioritization Workload Balancing Store-Specific Content Systematic Issue Escalation 44% of retailers identify improving store operations workflow as the top strategy due to…• Easy Assess to Task Status the disruptive nature of changing customer wants, needs, habits, and desires• Executive Scorecards *Aberdeen Group• Integrated Mobility #CommerceInMotion 37
    • 37. Mobile Task Management Gains Momentum ALERT 44% New Store Pick Up Order Waiting of best-in-class retailers use mobile devices to increase labor effectiveness *Aberdeen Group #CommerceInMotion 38
    • 38. 4 Improve Conversions with Clienteling • Arming sales associates with customer history, product information, CRM tasks, etc. • Ensuring exceptional selling and service – Pre-Sale Personal outreach, appointment setting, visit prep – During Recommendations, cross-sells, wish lists, preferences – Post-Sale Thank You outreach, satisfaction inquiry, next visit planning #CommerceInMotion 39
    • 39. SoMoLo Salespeople = SALES LIFT 63% larger transactions 33% more repeat visits 3.5x annual spend *Raymark #CommerceInMotion 40
    • 40. Recap: Thriving in an All-Channel World Better Forecasting = Better Experiences 1 Effective Scheduling is Critical to Cost Control 2 Efficient Execution Can Ensure Optimal Service 3 Improve Conversions with Clienteling 4 #CommerceInMotion 41
    • 41. Workforce Management @WorkFour Success Stories Powered byRedPrairie (Today’s Sponsor)#CommerceInMotion
    • 42. RedPrairieTransforming All-Channel Customer Experiences All-Channel Commerce WEB MOBILE KIOSK CONTACT CENTER CRM SOCIAL STORE CENTER Enterprise Inventory Enterprise Workforce Management Management SUPPLIER WAREHOUSE 3PL STORES IN-TRANSIT #CommerceInMotion
    • 43. 1 Advanced Forecasting @Work Business Profile Pharmacy retailer with 6,000 employees serving 250 stores #CommerceInMotion 44
    • 44. Objectives, Strategy, Approach• Objectives – Manage complex pay rules in a multi-union environment – Leverage Pharmacy resources across stores – Single, integrated T&A and scheduling solution – Simplify management of and communications with diverse, multi-culture management team• Strategy & Approach – Created ‘center of excellence’ from Pilot store – Phased approach – T&A, Schedule front end, then pharmacy • Share licensed pharmacists across stores/districts – Aggressive roll-out schedule supported by key executives #CommerceInMotion 45
    • 45. Results• Increase store manager time on floor by 50%• 88% reduction in overtime spend• Labor as % of sales improved by 170 basis points• Customer Experience improved via scheduling to demand – Net Promoter Score increased 17 points• Improved employee morale #CommerceInMotion 46
    • 46. 2 Agile Scheduling @Work Business Profile Broad-line retailer with 325,000 employees serving 4,000 stores #CommerceInMotion 47
    • 47. Objectives, Strategy, Approach• Objectives – Consolidated scheduling/execution of all store functions – Trained associates are assigned tasks in their domain – Greater visibility, communication and collaboration – More sales floor time for store managers• Strategy & Approach – Implement a single workforce management solution across the entire enterprise • Scheduling/Time & Attendance, WFM, Execution Management – Streamline process, communication, assignment, and measurement across all formats • All Stores/All Banners, Outlets, Call Centers, Service Centers #CommerceInMotion 48
    • 48. Results• Re-investment of 2.5M store manager hours a year into sales and service time• Automated forecast disbursement and consolidated scheduling of tasks saved $1.2M• Reduce scheduling hours and payroll by $4M• Significantly improved retention of skilled cashiers• Reduced HR field headcount #CommerceInMotion 49
    • 49. 3 Execution Management @Work Business Profile Grocery retailer with 136,000 employees serving 1,000 stores #CommerceInMotion 50
    • 50. Objectives, Strategy, Approach• Objectives – Manage extremely heavy promotion business – Reduce time from truck to shelf – Improve sales per labor hour – Increase sales floor time for key roles – Improve customer experience• Strategy and Approach: – Integrate Workforce Management with Scheduling – Establish priorities centrally, adjust locally – Streamline and prioritize store/district managers assignments – Integrate all workforce activities through Site Manager portal #CommerceInMotion 51
    • 51. Results• 6.7% reduction in hours invested• 29% reduction in premium labor costs• Improved Department Manager Coverage on key days: – Saturday 8% improvement – Sunday 12% improvement• Reduced shifts not 4/5/8 hours by >42,000 shifts/week – Week 1: 46,587 shifts – Week 38: 4,440 shifts #CommerceInMotion 52
    • 52. 4 Clienteling @Work Business Profile Apparel retailer with 2,500 employees serving 130 stores #CommerceInMotion 53
    • 53. Objectives, Strategy, Approach• Objectives – Document, replicate, and maintain best practices in sales and service throughout all stores – Exceed heightened customer expectations for service excellence – Improve collection of customer data – Go beyond marketing to clients based on user-entered interests• Strategy and Approach – Implement Clienteling solution supported by integrated CRM – Begin with pilot stores to identify and adapt best practices – Develop comprehensive training/change management programs #CommerceInMotion 54
    • 54. Results• Increased Client data capture rate to 70% of all transactions – Better data led to better segmentation marketing• 35% - 50% of store sales attributed to Client Book association• 6% overall sales lift YOY #CommerceInMotion 55
    • 55. Today’s Content Developed byCommerce in Motion CommerceInMotion.com A thought leadership program developed by/targeted to supply chain and retail executives #CommerceInMotion 56
    • 56. Questions?David.Bruno@RedPrairie.com#CommerceInMotion

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