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Personalization: Relevant Retailing


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Check out this Boston Retail Partners (BRP) Personalized Retail Workshop Recap from the 2014 Retail Technology Conference. The recap summarizes the dynamic discussion on the technologies and strategies to achieving real-time, personalized retailing! Images of the discussions were captured by an on-site digital artist. This is really cool!

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Personalization: Relevant Retailing

  1. 1. Personalization: Relevant Retailing Retail Technology Conference Workshop Recap April 10, 2014
  2. 2. ©2014  Boston  Retail  Partners.  All  rights  reserved   Table of Contents The Evolution of Retail Technology 3 Why Real-Time Retail? 4 Real-Time Retail Platform 5 Industry Trends 6 Chat Rooms Customer Identification – How 7 Customer Identification – Why 8 MAC Address 9 Personas 10 Virtual Closet 11 Interactive Receipts 12 Events 13 Geolocation 14 Additional Opportunities 15 Additional Concerns 16 Wrap-Up 17 About BRP 18 Boston Retail Partners conducted the Personalization: Relevant Retailing workshop at the Retail Technology Conference in Orlando on April 10, 2014. The workshop brought together more than 40 retailers for a discussion on personalizing the customer experience. This document is a recap of the workshop discussions. 2
  3. 3. ©2014  Boston  Retail  Partners.  All  rights  reserved   The Evolution of Retail Technology How did we get here? The evolution of retail technology has taken more than 100 years and evolved to where we are today because of a lack of technology 45 years ago! Networks were not evolved – they were unreliable, slow and expensive – so a decentralized store technology model was created. Networks can now support a centralized model to enable real-time retail and personalize the customer experience. Banking in the 90stransformed itselfthrough networks –ATMs were born.Now it is the retailindustry’s turn…advanced networks willcompletely transformretail as we know it! 3
  4. 4. ©2014  Boston  Retail  Partners.  All  rights  reserved   Why Real-Time Retail? Today, the customer is the new focus in the retail systems universe… we should be selling to the next generation of customers with new technology and not be handicapped by the past. The Customer is the Center of the Universe 4
  5. 5. ©2014  Boston  Retail  Partners.  All  rights  reserved   Real-Time Retail Platform Most retailers have begunthe process of integratingthe components needed toenable customers to findthe product they wantinstantly. And retailers candeliver it in a seamless,safe and integratedsolution…. leveraging real-time analytics….leveraginga real-time rules engine. Real-time Retail Makes it Possible 5
  6. 6. ©2014  Boston  Retail  Partners.  All  rights  reserved   Industry Trends 28%$ 16%$ 3%$ 62%$ 63%$ 72%$ 0%$ 20%$ 40%$ 60%$ 80%$ 100%$ Use$Mobile$Marke6ng$ Have$Real<6me$Retail$from$POS$ Iden6fy$Customers$Walking$in$Store$ Today$ Plan$in$5$Yrs$ More than 20% of retailers plan to offer personalized promotions in next 2 years. The Time is Now to Personalize the Shopping Experience 6
  7. 7. ©2014  Boston  Retail  Partners.  All  rights  reserved   Customer Identification - How Disney wristband – traffic tracking and adjusting experience accordingly 7
  8. 8. ©2014  Boston  Retail  Partners.  All  rights  reserved   Customer Identification - Why Privacy versus Benefit – you’re not going to get customer information without delivering something meaningful and relevant Empower customers and associates Opt-in or invisible Personalized real- time recommendations and offers 8
  9. 9. ©2014  Boston  Retail  Partners.  All  rights  reserved   MAC Address “A media access control address (MAC address) is a unique identifier assigned to network interfaces for communications on the physical network segment.” Answer: There can be multiple MAC addresses per customer – a new MAC address is recognized when she opts-in again. Question: What happens when someone upgrades their phone? 9
  10. 10. ©2014  Boston  Retail  Partners.  All  rights  reserved   Personas “Create personas, or example users, as tools to represent the needs, desires, skills and environment of one or more classes of real users.” Pairing the best associate with customers coming through the door Matching employees to customers based on fit and specialty 10
  11. 11. ©2014  Boston  Retail  Partners.  All  rights  reserved   Virtual Closet “A Virtual Closet is a deconstructed online view of EVERYTHING you own.” Retargeting – using past behavior to make recommendations (What’s in your closet?) 11
  12. 12. ©2014  Boston  Retail  Partners.  All  rights  reserved   Interactive Receipts “A digital receipt that builds your brand, engages your customers and transforms your business with valuable analytical insights.” Receipts – associate with fashion icons that validate the purchase decision Useful/actionable receipts (embed URL or QR code for how-to video) 12
  13. 13. ©2014  Boston  Retail  Partners.  All  rights  reserved   Events 13 Dynamic promotions driven by events (weather, holidays, natural disasters, etc.)
  14. 14. ©2014  Boston  Retail  Partners.  All  rights  reserved   Geolocation “…the identification of the real-world geographic location of an object, such as a mobile phone, tablet or an Internet-connected computer terminal.” Heatmaps allow us to understand how a customer moves through the store to better manage planograms and improve merchandising decisions Tracking within the store, hot and cold spots (planogramming) 14 Proactive promotions triggered by customers’ proximity to store
  15. 15. ©2014  Boston  Retail  Partners.  All  rights  reserved   Additional Opportunities •  Guided selling •  Leverage clienteling for consultative personal selling •  Turn “C” associates into “A” associates •  Mobile •  “…16% lift in sales from mobile experience in store could lead to 50% guest satisfaction increase” •  Mobile payments – skip checkout •  Give time back to the customer; give recipe up front to streamline grocery shopping experience and eliminate multiple trips •  Entertain the kids with technology, so parents can shop •  100% personalization – paymentless checkout based on knowing who the customer is, and that they’re good for it •  Social media integration •  Quiz customer and deliver recommendations; fun customer engagement •  Wi-Fi – utilize for personalization, leverage what’s already in place; in use at Tesco •  Retargeting – leveraging physical information for targeted commerce ads •  Real-time merchandising; real-time video 15
  16. 16. ©2014  Boston  Retail  Partners.  All  rights  reserved   Additional Concerns •  Privacy •  How much is too much information? •  With customer data comes a responsibility in how the data is managed and utilized; example of store knowing a teen is pregnant before the parents based on purchase history •  Security extends beyond the credit card to include all customer data (It is not just PCI but also PII) •  Retailer mobile apps might not always be compelling enough to install and use •  Offers need to be quick and convenient – can’t make it longer to collect discount than it’s worth •  Legislation •  What about when legislation catches up with technology (privacy/protection) •  Stronger privacy laws in California and Europe •  Expensive alternatives; can’t do it all, so need a sound strategy around what will produce results and the best customer experience 16
  17. 17. ©2014  Boston  Retail  Partners.  All  rights  reserved   Wrap-up 17 Real-time retail changes everything and puts the customer at the center of the universe, which means retailers need to sell to the next generation of customers, not just today’s customer. We are at a strategic inflection point where the network is taking center stage. The network enables an integrated world where consumers drive self-checkout on their smart phone, interact with their friends in real-time on purchase decisions and receive discounts and personalized pricing as they are shopping to create a cohesive customer experience. Your brand is unique and your customer experience should be tailored to your brand and the needs of your customer.
  18. 18. ©2014  Boston  Retail  Partners.  All  rights  reserved   About BRP 18 §  Retail experts with retail backgrounds §  Built with unique professional profile u  Managed by industry-recognized leaders u  Recruit experienced retail professionals with process, technology and operations skills u  Recognized expertise in all facets of strategy, selection and deployment of Point of Sale, CRM/Loyalty, Customer Engagement, Order Management, Merchandising and Supply Chain solutions §  Trusted advisors of acknowledged industry leaders "  No exclusive partnerships or alliances with software or hardware providers Ken Morris Principal Boston Retail Partners 617.880.9355 u  Chanel u  TJ Maxx u  Family Dollar u  ABC Fine Wine & Spirits u  Sports Authority u  Estee Lauder u  Tire & Battery Corp u  Brooks Brothers u  Michaels Stores