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Remodista RetailSource Paper - The Seamless Commerce Experience

Remodista
Remodista

This document discusses how retailers can use data to create a seamless customer experience across channels from initial customer engagement through purchase. It emphasizes that customers now research and shop through many channels, so retailers need integrated cross-channel strategies to understand customer behaviors and guide them smoothly to purchase. Retailers face challenges in collecting, integrating, and analyzing the large amounts of customer data needed to optimize the shopping experience. The document provides recommendations for how retailers can implement effective analytics to develop personalized marketing, pricing, and service strategies for different customer groups.

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www.remodista.com
The Seamless
Commerce Experience
Using data to smoothly join customer journeys with
supply chain execution in a world of rising expectations
An Executive Snapshot of Global Retail Disruption
Sponsored by:
VISIT THE REMODISTA SANDBOX:
http://bit.ly/1GdjulZ
www.remodista.com
Interested in sponsoring content like this?
Contact us: Kelly@remodista.com
Revving your (data) engines
Today’s tech-savvy consumers don’t just
engage with a brand when they wander
into a store—they gain access through
many channels, from mobile sites to
social media channels. By the same
token, they don’t just buy when they step
up to a cash register. How can
businesses build a strategy around
optimizing purchase behaviors when
technology is transforming those habits
at breakneck speed?
Fortunately, retailers can harness the
power of data. By tagging and targeting
consumers through different channels,
marketers gain insight into their
customers: what they buy, where they
buy, and—most importantly—how they
buy.
www.remodista.com
Interested in sponsoring content like this?
Contact us: Kelly@remodista.com
Data, in short, can tell you how
to leverage technology to
connect demand and fulfillment.
The right data can give you a big head start
as you promote a seamless commerce
approach, guiding customers through virtual
and in-person contacts to an actual purchase.
Data can show how different generational
groups in your customer base interact with
technology—so how will this inform how you
personalize the omni-channel purchase
journey?
If Millennials research product information
differently than Baby Boomers, how can you
provide them both with the knowledge that
helps clinch a sale? How will their different
payment preferences influence the options
that you’ll offer?
“ “
DID YOU KNOW?
Millennials in the US wield about
$1.3 trillion
in annual buying power
-Boston Consulting Group
!
www.remodista.com
Interested in sponsoring content
like this? Contact us:
Kelly@remodista.com
With the right data, we can
do a better job at guiding
customers seamlessly
through their purchase
journey.
“
”Chau Banks
New York & Company
www.remodista.com
Interested in sponsoring content like this?
Contact us: Kelly@remodista.com
What is seamless commerce?
Seamless commerce addresses that sticky
question of how a retailer integrates demand
and fulfillment most effectively, for both the
company and the consumer.
Gone are the days of localized pricing
decisions and focus on brick-and-mortar
stores; businesses must now adapt their
marketing strategies to an increasingly tech-
savvy clientele. More often than not, the
customer’s journey from point of entry to the
final purchase isn’t a straight line. A consumer
might research products online before
shopping in person or vice versa, and
marketers are hitting plenty of speed bumps
steering customers between virtual and in-
person experiences.
The twists and turns of the purchase
journey
How do customers engage with retailers, and
how do they ultimately buy? Well, these basic
questions have become far more complicated
with the advent of the Internet and mobile
technologies. Generational groups tend to use
them quite differently. Consumers can shop
whenever and wherever they choose, through
far more channels than in the past: online
commerce, social media, and third-party
websites, as well as customer service centers
and traditional shopfronts. Similarly, potential
payment methods have gone far beyond the
cash register to include one-click online
purchasing and mobile self-service checkout,
or capabilities for tablets or wearable devices.
Smart devices in particular offer tantalizing
possibilities for expedited browsing and
buying. Chau Banks of national retailer New
York & Company has observed that the more
data her company has provided to customers
through the mobile experience, the higher the
conversion rates. One caveat: optimizing
mobile at the expense of desktop or social
media efforts won’t bring home the prize.
Companies need to transcend department
mentalities and embrace integrated cross-
channel marketing, especially if they plan to
sell to different generations of customers.
Given this technology-driven revolution in
consumer habits, are businesses
implementing analytics effectively to pinpoint
how diverse customer groups navigate their
way to the point of sale?
www.remodista.com
Interested in sponsoring content like this?
Contact us: Kelly@remodista.com
It’s too risky to cut corners on major technical solutions.
The bumpy road to good data
Companies are racing to implement cutting-
edge data collection, because the right
information can help them edge past the
competition and maneuver to meet rapidly
shifting consumer expectations. Data can not
only reveal the points of entry, but also
provide the roadmap for smooth sales.
Unfortunately, retailers encounter many
roadblocks. First, they need to redesign,
reorganize, and redefine their existing
systems to capture data more frequently and
tap all potential information sources—social
media and third party sources, for example—
but legacy systems don’t always adapt well to
the inclusion of these new components.
Companies must also match consumers with
actual purchase behaviors. The sheer volume
of incoming data can effectively put the
brakes on the decision-making process, so
retailers must find ways to filter information.
Finally, businesses need to allocate time for
adequate testing—it’s too risky to cut corners
on major technical solutions.
The home stretch to the point of sale
If customers are drawing on available product
information to make purchase decisions,
companies should be collecting data on these
behaviors to connect the dots between the
first spark of interest in products and the final
sale, wherever and however it occurs. By
tracking how customers shift gears between
virtual and in-person encounters and decide
on a purchase, merchandizers can offer better
options for speeding inventory into their
customers’ hands.
For the long haul, retailers must develop
informed strategies for improving pricing,
inventory, payment and delivery options,
outlet expansions, and individual store
success—as well as driving repeat business.
Marketers have to worry about far more than
simply enticing customers to points of entry;
they must also consider the journey to
eventual points of sale, too.
“
“

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Remodista RetailSource Paper - The Seamless Commerce Experience

  • 1. www.remodista.com The Seamless Commerce Experience Using data to smoothly join customer journeys with supply chain execution in a world of rising expectations An Executive Snapshot of Global Retail Disruption Sponsored by: VISIT THE REMODISTA SANDBOX: http://bit.ly/1GdjulZ
  • 2. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com Revving your (data) engines Today’s tech-savvy consumers don’t just engage with a brand when they wander into a store—they gain access through many channels, from mobile sites to social media channels. By the same token, they don’t just buy when they step up to a cash register. How can businesses build a strategy around optimizing purchase behaviors when technology is transforming those habits at breakneck speed? Fortunately, retailers can harness the power of data. By tagging and targeting consumers through different channels, marketers gain insight into their customers: what they buy, where they buy, and—most importantly—how they buy.
  • 3. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com Data, in short, can tell you how to leverage technology to connect demand and fulfillment. The right data can give you a big head start as you promote a seamless commerce approach, guiding customers through virtual and in-person contacts to an actual purchase. Data can show how different generational groups in your customer base interact with technology—so how will this inform how you personalize the omni-channel purchase journey? If Millennials research product information differently than Baby Boomers, how can you provide them both with the knowledge that helps clinch a sale? How will their different payment preferences influence the options that you’ll offer? “ “ DID YOU KNOW? Millennials in the US wield about $1.3 trillion in annual buying power -Boston Consulting Group !
  • 4. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com With the right data, we can do a better job at guiding customers seamlessly through their purchase journey. “ ”Chau Banks New York & Company
  • 5. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com What is seamless commerce? Seamless commerce addresses that sticky question of how a retailer integrates demand and fulfillment most effectively, for both the company and the consumer. Gone are the days of localized pricing decisions and focus on brick-and-mortar stores; businesses must now adapt their marketing strategies to an increasingly tech- savvy clientele. More often than not, the customer’s journey from point of entry to the final purchase isn’t a straight line. A consumer might research products online before shopping in person or vice versa, and marketers are hitting plenty of speed bumps steering customers between virtual and in- person experiences. The twists and turns of the purchase journey How do customers engage with retailers, and how do they ultimately buy? Well, these basic questions have become far more complicated with the advent of the Internet and mobile technologies. Generational groups tend to use them quite differently. Consumers can shop whenever and wherever they choose, through far more channels than in the past: online commerce, social media, and third-party websites, as well as customer service centers and traditional shopfronts. Similarly, potential payment methods have gone far beyond the cash register to include one-click online purchasing and mobile self-service checkout, or capabilities for tablets or wearable devices. Smart devices in particular offer tantalizing possibilities for expedited browsing and buying. Chau Banks of national retailer New York & Company has observed that the more data her company has provided to customers through the mobile experience, the higher the conversion rates. One caveat: optimizing mobile at the expense of desktop or social media efforts won’t bring home the prize. Companies need to transcend department mentalities and embrace integrated cross- channel marketing, especially if they plan to sell to different generations of customers. Given this technology-driven revolution in consumer habits, are businesses implementing analytics effectively to pinpoint how diverse customer groups navigate their way to the point of sale?
  • 6. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com It’s too risky to cut corners on major technical solutions. The bumpy road to good data Companies are racing to implement cutting- edge data collection, because the right information can help them edge past the competition and maneuver to meet rapidly shifting consumer expectations. Data can not only reveal the points of entry, but also provide the roadmap for smooth sales. Unfortunately, retailers encounter many roadblocks. First, they need to redesign, reorganize, and redefine their existing systems to capture data more frequently and tap all potential information sources—social media and third party sources, for example— but legacy systems don’t always adapt well to the inclusion of these new components. Companies must also match consumers with actual purchase behaviors. The sheer volume of incoming data can effectively put the brakes on the decision-making process, so retailers must find ways to filter information. Finally, businesses need to allocate time for adequate testing—it’s too risky to cut corners on major technical solutions. The home stretch to the point of sale If customers are drawing on available product information to make purchase decisions, companies should be collecting data on these behaviors to connect the dots between the first spark of interest in products and the final sale, wherever and however it occurs. By tracking how customers shift gears between virtual and in-person encounters and decide on a purchase, merchandizers can offer better options for speeding inventory into their customers’ hands. For the long haul, retailers must develop informed strategies for improving pricing, inventory, payment and delivery options, outlet expansions, and individual store success—as well as driving repeat business. Marketers have to worry about far more than simply enticing customers to points of entry; they must also consider the journey to eventual points of sale, too. “ “
  • 7. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com Winning retailers are growing their analytics capabilities to create experiences their customers desire, and match them with product where they want, when they want. “ ”Bill Lewis Capgemini Consulting
  • 8. www.remodista.comwww.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com The Finish Line 3 keys to using analytics in retail Smart Data Invest time and resources into adaptable data collection systems that show you the dead ends and the shortcuts to real purchases in your marketing strategy, now and in the future. TAKE ACTION Set up for long-term success: Develop flexible systems to capture data from many sources, but prepare to filter information for faster decision-making. Anticipate continual adjustments to the type of data you’re capturing to address the latest trends in buying behavior. Test, test, test: Take the time to ensure that your new and legacy systems are melding smoothly, including accounting and point-of- sale systems. Expect the unexpected by budgeting for additional integration costs. Unify your merchandizing: Break down silos —share information company-wide, and reshape your marketing plan from an all- channel perspective. A savvy plan for using analytics can help you pull ahead of the pack, lap after lap. 010101 010101 010101 Smart Customer Service Businesses help themselves by helping their customers, which builds brand loyalty. TAKE ACTION Foster the omni-channel experience – Integrate online and brick-and-mortar sales strategies. Adopt technology such as beacons to bring the same personalization found in targeted email and social media marketing into your stores, in real time. Provide convenient payment options to cater to different generations’ purchasing habits. Show gratitude: Offer points programs, coupons, and private label credit cards— consumers return to the brands that promise them more for their money. Give the customer control: Seek feedback (then listen). Let the customers dictate how and when you market to them, yet remain poised to respond promptly when they reach out to you.
  • 9. www.remodista.com Interested in sponsoring content like this? Contact us: Kelly@remodista.com The Finish Line: 3 keys to using analytics in retail (cont.) Smart Pricing Businesses help themselves by helping their customers, which builds brand loyalty. TAKE ACTION Know thy competition: Track rivals’ pricing to shape your competitive strategy. It’s not simply a matter of matching their prices; you might set online and retail outlet prices differently to optimize profit and fulfillment. Know thy customers: Cultivate a nuanced understanding of customer expectations by generational group. Refine your engagement, payment, and delivery strategies for their convenience and preferences. Know thyself: Analyze relative demand in your own stores. Turn around low interest in a store to serve demand from higher-traffic areas. Conclusion The right data delivers critical insights into shifting consumer behaviors and allows businesses to face the challenge of seamlessness head on. “How do customers buy?” seems a simple question, but today’s shoppers wind their way to the metaphorical cash register through myriad channels. $ Thus, marketing strategists must break down old barriers between digital and brick-and- mortar merchandizing to ensure that customers enjoy one cohesive purchase journey. From the business point of view, seamless commerce encourages retailers to refine their understanding of demand, achieve efficiencies in fulfillment, and provide more personalized service to loyal customers than ever, all through analytics. Could this be a race where everybody wins? VISIT THE REMODISTA SANDBOX: http://bit.ly/1GdjulZ Learn more about Capgemini Consulting Contact - Bill A. Lewis
  • 10. www.remodista.com ABOUT THE AUTHOR Interested in sponsoring content like this? Contact us: Kelly@remodista.com This focus area looks at how we unify the personalized customer experience with the supply chain. From first touch to product in hand, the process should be personalized and easy for customers REMODISTA FOCUS AREA Commerce Remodista RETAIL & MOBILITY DISTILLED www.remodista.com Remodista is a social think tank examining disruption in global retail. Our mission is to provide insight, education and innovation to global brands through collaborative research and analysis. www.capgemini-consulting.com Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change. Find out more at: www.capgemini-consulting.com Capgemini Consulting TRANSFORM TO THE POWER OF DIGITAL