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A Data-Driven Approach to the Retail Customer Experience

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http://spr.ly/HDataSS With the rise of digital channels and mobile devices, retailers need to learn how to harness data to provide an amazing customer experience. View this presentation to learn how!

http://spr.ly/HDataSS With the rise of digital channels and mobile devices, retailers need to learn how to harness data to provide an amazing customer experience. View this presentation to learn how!

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  • 1. CREATE CONSUMER- DRIVEN RETAIL A Data-Driven Approach to the Customer Experience
  • 2. THE AGE OF THE CUSTOMER. Empowered customers are causing massive shifts in the retail industry today. The explosion of digital devices has led to heightened expectations by consumers, who now demand a personalized, customized retail experience through whichever channel they choose to use. 1960 1990 2010 Age of distribution Global connections and transportation systems make distribution key • Wal-Mart • Toyota • P&G • UPS • Amazon • Google • Comcast • Capitol One • Macy’s • Salesforce.com • USAA • Amazon BeyondAge of information Connected PCs and supply chains mean those that control information flow dominate Age of information Empowered buyers demand a new level of customer obsession 2
  • 3. NEW CHALLENGES NEED NEW SOLUTIONS. Retailers are now in a reset moment, forced to redefine how they approach the customer experience. According to Retail Systems Research: • 55% of retailers say they need to better understand consumers’ paths to purchase1 • 49% say consumers expect to have instantaneous access to information about products and services everywhere2 • 47% feel information-empowered consumers are more demanding3 • 43% say they need to react quicker to sudden changes in consumer trends and demand4 Retailers can no longer survive in today’s retail reality by making decisions based on instinct and emotion alone. Now, data analytics is seen as a key to optimizing planning and execution across the entire enterprise. 1 Retail Systems Research,“Retail Analytics Moves to the Frontline,”January 2014 2 Ibid 3 Ibid 4 Ibid 3
  • 4. BECOME CUSTOMER- OBSESSED. Top retailers focus on the challenge of understanding what consumers are demanding. In fact, according to Retail Systems Research, almost one-half of retailers surveyed believe a top use of their data is to manage relationships with customers.5 Top-performing retailers understand that consumers are demanding, expect full access to information about products and services wherever they may be, and that these same consumers can shift their demands any given second. Retailers are increasingly turning to business intelligence (BI) and advanced analytic tools to be able to respond to consumers almost instantaneously. 5 Retail Systems Research,“Retail Analytics Moves to the Frontline,”January 2014 4
  • 5. DATA IS YOUR FRIEND. New technologies, including mobile, social, cloud, and Big Data, are generating massive amounts of new data for retailers to access in order to gain deeper understanding into consumers’shopping habits and preferences. And while more retailers are beginning to realize the importance of harnessing this data, it is those that then derive actionable insights from it that are gaining a new edge in the market. Top-performing retailers that understand the strategic importance of data cite these top benefits of greater use of BI and analytics:6 1. More intelligent allocation and optimization of products based on customer insights 2. Quicker reaction to sudden shifts in demand 3. Ability to deliver relevant products, services, and marketing messages to consumers 4. Better“what if”capabilities for matching demand to assortment, price, and promos 5. Ability to identify more opportunities to optimize operations It’s clear: information = intelligence = winning in retail.7 6 Retail Systems Research,“Retail Analytics Moves to the Frontline,”January 2014 7 Ibid 5
  • 6. OPERATIONAL OPPORTUNITIES. Beyond using consumer insights derived from BI and analytics to optimize product mix and deliver more personalized service, winning retailers are also leveraging their data to operate more effectively. Using BI and analytics in daily operations enables retailers to achieve specific objectives: • Faster turns, fewer and more effective markdowns/ closeouts, and optimized margins for improved inventory effectiveness • Greater use of promos and special offers and more measurable loyalty for improved marketing effectiveness • Ability to incorporate social media sentiment data into the merchandise planning process • Mobile access to analytics to improve operational performance • Data visualization for more impact-filled merchandising 9 Retail Systems Research,“Supply Chain Execution 2014: Making Omnichannel Profitable” 6
  • 7. EMPOWERED EMPLOYEES. Retailers that limit access to data analysis and insights to only the executive realm aren’t realizing the maximum return on their investment. Insights must get into the hands of the day-to-day decision makers to see the true return. When front-line managers and employees are empowered with information about their customer base, they are enabled to deliver relevant, personalized service that customers will notice. 50% of retailers say their store managers need more access to analysis and insights from BI investments.8 8 Retail Systems Research,“Retail Analytics Moves to the Frontline,”January 2014 7
  • 8. TECHNOLOGY TOOL SET. As new types of data proliferate and become important to the retail business, the speed, flexibility, and scalability of the business intelligence technology platform are essential. Integration tools such as in-memory solutions available today can simplify extraction and transactional data gathered through search, social media, ratings, reviews, and consumer commentary. In addition, these tools can make the presentation of insights clearly visible so that the entire organization can easily consume and act on them. 8
  • 9. HARNESS YOUR DATA. The need for an enterprise plan for the storage, management, and use of data is clear. We are at a point in retail history where the market is more competitive than ever before. Rapid responses to changes in demand enabled by BI and advanced analytics can make the difference between success and failure. WANT FREE TIPS AND CASE STUDIES ON HOW YOU CAN TAKE A DATA-DRIVEN APPROACH TO OPTIMIZING OPERATIONS AND RESPONDING TO CONSUMERS’ DEMANDS THE MOMENT THEY’RE MADE? DOWNLOAD FREE CONTENT 9