Customer-Centric Merchandising

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Shoppers have so many choices in where and when to shop. They also have unprecedented knowledge – and power – right at fingertips. It’s more important than ever to bring customer information into merchandising processes by using a technology platform that enables real-time insight and actions.

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Customer-Centric Merchandising

  1. 1. Solution Overview Retail Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Customer-Centric Merchandising © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  2. 2. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Building Customer Loyalty Customer-Focused Merchants Customer Knowledge Shoppers have so many choices in where and when to shop. They also have unprecedented knowledge – and power – right at fingertips. It’s more important than ever to bring customer information into merchandising processes by using a technology platform that enables real-time insight and actions. The Profitability Imperative SAP Innovations Next-generation challenges– such as showrooming, online price comparisons, rapidly changing assortments, and wavering brand loyalty – have led to fundamental changes in merchandising. Yet, even some of the most ardent practitioners of consumer-centric processes can find it difficult to adapt to these rapidly changing trends. Many retailers acknowledge that the inability to identify new ideas and innovate quickly on price, promotion, and customer preferences is an obstacle to success. By managing high volumes of customer data in real time, coupled with predictive insight and mobile devicecompatible processes, retailers can keep ahead of demanding shoppers. By building customer knowledge into processes and having the ability to adapt and change in real time, retailers can gain a significant competitive advantage. Retailers that incorporate real-time customer data in merchandising practices and philosophies will grow market share and maintain a loyal customer following. 2 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  3. 3. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Merchandising Through Customers’ Eyes Customer-Focused Merchants Customer Knowledge Building explicit customer knowledge into the practice of assortment, pricing, targeted promotions, and marketing can help improve top-line growth, as well as retain and grow a loyal customer base. The Profitability Imperative SAP Innovations Best-Run Retail Appeal to your customers through a targeted range of offers and assortment. Alignment of pricing with sensitivity, understanding, and competitive transparency into customer response help grow profits and loyalty. Plan assortments by using more scalable and modern techniques that build preferences and quick turnaround into the process. With intuitive, yet powerful, technologies, you can help ensure assortments and financial plans will deliver and exceed expectations. Use real-time technology to capture rapidly changing consumer information, and build a library of deep, actionable customer insights. By capturing trends in real time, you can reap opportunities that will distance you from the competition. Create marketing and merchandising strategies that appeal to customers of today and capture the customers of tomorrow. By placing enterprise mobility at the forefront of interactions with shoppers, store associates can react to the real-time action of every customer. 3 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  4. 4. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Building the Brand Through the Customer Customer-Focused Merchants Customer Knowledge Customer habits are rapidly changing. To appeal to them, retailers need to bring customer insight into all merchant-centric processes and actions using real-time analysis and reaction functions. This will help ensure a thriving and profitable growth brand. The Profitability Imperative SAP Innovations 12.6% Higher cross- and up-sell for organizations that leverage business intelligence to gain customer insights that enable effective product positioning To start executing with your customers in mind, you must first understand them by using traditional analysis approaches augmented with two new key functions. The first is the ability to analyze data to predict customer behavior, which empowers retailers to detect changes in trends – before their effects show up in revenue and profit figures. The second is harnessing a platform built to deliver the scale of this predictive customer insight in real time. In addition, newer and differentiated assortments are also vital in this new marketplace. The ability to plan with newer dimensions and faster times to plan are keys to success. Furthermore, promotions must be integrated with marketing campaigns and be relevant to the customer. Imagine that a shopper has just scanned an item in your store, and you could instantaneously send a relevant offer to that shopper. Studies have shown that this can materially boost response rates. At the point of purchase, it is imperative to know customers’ sensitive or key value items. Whether they purchase based on price comparisons or prefer an assortment choice that is most relevant to their lifestyle, shoppers are loyal to retailers that get the mix right. Source: SAP Performance Benchmarking 4 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  5. 5. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us SAP Innovations Customer-Focused Merchants A customer-centric approach that includes rapid analysis and response functionality will set the successful retailer apart. Customer Knowledge The Profitability Imperative SAP Innovations SAP solutions that harness the power of realtime in-memory analysis deliver capabilities needed to react to today’s customers. As tastes change and demographics rapidly shift, retailers must be able to quickly analyze these variations to predict the actions of changing target segments through all channels, including online and traditional stores. Advances in analytics functions include scaling to plan assortment and using store clusters defined by location and behavior patterns. This can improve the planning process and make it relevant to customers. 5 / 28 Empowering the sales associate with mobile, on-the-floor access to product and inventory information, as well as customer preferences and behavior, can bring a new level of personalization to customer interactions and improve customer loyalty. Utilize new targeting approaches by basing promotional offers on the most recent shopping activity combined with past preference analysis – delivered in real time to customers’ smartphones at the point of purchase. © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  6. 6. Executive Summary Customer-Centric SAP Solutions Merchandising SAP Innovations References Contact Us Analyze, Plan, and Merchandise Customer-Centric Merchandising Include a customer-centric framework into merchandising practices for maximum competitive advantage. Understanding the Customer Optimizing Assortments Creating Enticing Marketing Perfecting Promotions Gain Customer Insight Consumers are changing their shopping habits and preferences faster than ever before. Utilize advanced analysis techniques to understand their behavior. Plan Assortments Effectively Use advanced technology and applications to plan assortments by including predictive insights. Market and Promote Better Shoppers need relevant and timely offers. Help ensure promotional relevance for your marketing campaigns. Price and promote the items that appeal to your customers at an appropriate level to gain loyalty. Deliver Targeted Offers Create pricing and promotion practices that help deliver higher market share and customer loyalty with a greater understanding of local and global demand. 6 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  7. 7. Executive Summary Customer-Centric SAP Solutions Merchandising SAP Innovations References Contact Us Understanding Customer Behavior Customer-Centric Merchandising Understanding the Customer Optimizing Assortments It is understood that consumers shop in many ways and channels. Yet, it’s not well understood what drives their preferences or changes in their behavior. By understanding and predicting behavior, retailers can formulate and execute plans to retain customers and increase transactions. Creating Enticing Marketing Perfecting Promotions SAP software for customer insight and predictive analytics enable retailers to capture marketing activity and its effectiveness in one platform. 25% Because the customer is represented fully, retailers are able to track past behavior and predict influential drivers of future behavior by using new types of analysis. Of organizations fully leverage multichannel communication to optimize customer contact In addition, a full suite of reporting of traditional retail key performance indicators (KPIs) – such as inventory on hand, same store sales, out of stock, and promotional activity – can be now delivered to the store associates on a handheld or mobile device in real time. This helps the store associate spend valuable time on the floor, assisting the customer and getting to know their preferences first hand. Segmentation of attributes – such as location, demographics, lifestyle choices, ethnicity, and buying behavior – increase detailed understanding of the customer. Social and other influences, such as total shopping behavior, can augment this understanding if bringing in data from panel data sources. Source: SAP Performance Benchmarking 7 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  8. 8. Executive Summary Customer-Centric SAP Solutions Merchandising SAP Innovations References Contact Us Optimizing Merchandise and Assortments Customer-Centric Merchandising Understanding the Customer Optimizing Assortments The new customer demands an assortment that is tailored to their needs at a local level. Optimized merchandise planning is a new approach that incorporates both realtime response and predictive insight. As a result, retailers can quickly change merchandise and assortments to capture trend shifts. Creating Enticing Marketing Perfecting Promotions 10%-15% Decrease in markdowns taken by planning inventory and receipt flow to hit sales targets based on turn and weeks of supply Merchandise planning is a balance of the science of sales and inventory management with the art of identifying the merchandise shoppers need. And this balance is critical to your success. It is more important than ever to take a realistic, executable, and holistic approach to your merchandising lifecycle. This approach focuses on the specific demands of your shoppers and the positioning of your competitors. Retailers must integrate planning functions to merge comprehensive, real-time performance metrics with powerful planning and simulation functions. By supporting product assortments based on local shopper preferences, you can balance your most controllable investment – merchandise inventory – profitably. Maintaining balance helps ensure your finance and merchandising departments, store operations, and trading partners are all planning and executing according to common objectives. Source: SAP Performance Benchmarking 8 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  9. 9. Executive Summary Customer-Centric SAP Solutions Merchandising SAP Innovations References Contact Us Marketing That Delights Your Customer Customer-Centric Merchandising Understanding the Customer Optimizing Assortments Access to technology and information that changes the way they shop makes customers more demanding than ever. Retailers are challenged to design innovative marketing campaigns that appeal to customers and enhance loyalty, while maximizing sales and profits. Creating Enticing Marketing Perfecting Promotions 57% Lower customer churn for top 25% of organizations, as compared to average organizations Shoppers are cost conscious, highly informed, and expect great value and choice – thanks to online and smartphone devices that give them access to competing information in the marketplace. Designing effective marketing campaigns requires an understanding of individual customer expectations. Campaigns and promotions must be relevant for the customer and targeted to their specific needs. Customers are receptive to targeted promotions that are relevant to their current needs and lifestyle. They expect new and innovative loyalty programs that provide flexible rewards and inspire larger baskets and repeat visits. Retaining customer loyalty requires a coordinated effort that aligns marketing and merchandising to produce effective pricing and promotional tactics that appeal to your most profitable shoppers. Source: SAP Performance Benchmarking 9 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  10. 10. Executive Summary Customer-Centric SAP Solutions Merchandising SAP Innovations References Contact Us Perfecting Price and Promotions Customer-Centric Merchandising Understanding the Customer By combining a deeper, localized understanding of demand, retailers can create successful and powerful pricing and promotion practices that will deliver higher market share and greater customer loyalty. Optimizing Assortments Creating Enticing Marketing Perfecting Promotions 1%-2% Increase in sales by improved pricing analysis and execution Source: SAP Performance Benchmarking To be successful, retailers need to put the customer at the center of their merchandising world. Create and communicate targeted offers with greater customer understanding. Just as important in this era of high transparency is the ability to adapt and understand current and prospective shopper preferences in real time. Knowledge in customers’ marketing group segments is critical, and this information should be infused with merchant-based processes. At the same time, retailers must be conscious of choice and assortment variety by shopper segment. Given this, it is imperative to provide appealing targeted offers to your customer through multiple channels. By reengineering existing processes and incorporating available, rich customer information into all promotional and pricing strategies, retailers can win market share. And by understanding rapid changes and executing in real time, retailers can stay ahead of the competition and grow their brand in the market. 10 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  11. 11. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Retail Value Map SAP Solutions Real-Time Customer Insight and Predictive Analytics Optimized Merchandise and Assortment Planning Marketing, Campaign and Promotion Planning Perfect Price and Promotion Execution SAP solutions address key requirements for customer-centric merchandising. Real-Time Customer Insight and Predictive Analytics Marketing Analytics Customer Insights and Segmentation Merchandising Analytics Shopper Insight Optimized Merchandise and Assortment Planning Merchandise and Financial Planning Channel Planning Assortment Planning Plan Optimization Marketing, Campaign, and Promotion Planning Marketing Planning Campaign Management Promotion Planning Loyalty Management Perfect Price and Promotion Execution Strategic and Operational Pricing Targeted Promotions Effective Markdowns 11 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  12. 12. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Customer Insight and Predictive Analytics SAP Solutions Completely understand customer behavior and its drivers. Real-Time Customer Insight and Predictive Analytics View customer activity beyond sales. Analyze sales in context of the customers’ preferences and behavior. Understand in real time the trends that drive decisions, and deliver these insights to the people who need them when it counts most – at the point of interaction – regardless of point-of-purchase location. Optimized Merchandise and Assortment Planning Marketing, Campaign and Promotion Planning Perfect Price and Promotion Execution Marketing Analytics SAP software for marketing analytics gives true 360-degree viewpoints into customer activity. Analyze the effectiveness of all campaigns across all channels. Customer Insights and Segmentation SAP provides powerful predictive analytics that enable the customers’ behavior to be classified so that more targeted offerings in areas such as assortment and promotions can be realized. Merchandising Analytics Understand how effective your performance is in real time. Get visibility into inventory performance and other merchandising KPIs anywhere and on any device. Shopper Insight SAP software for shopper insight delivers prebuilt analytics that enable retailers to quickly put mobile analytics into the hands of their store operations field managers. 12 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  13. 13. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Optimized Merchandise and Assortment Planning SAP Solutions Real-Time Customer Insight and Predictive Analytics Optimized Merchandise and Assortment Planning Marketing, Campaign and Promotion Planning Deliver profitable merchandise and financial plans. Develop sales and margin targets in an intuitive and insightful way. Plan across all channels within the same system. Create assortments by using predictive methods, such as segmentation, to help ensure relevant offerings. Harness demand-driven forecasting across selling locations. Merchandise and Financial Planning Develop sales and margin targets by channel as a basis for top-down financial planning. Channel Planning Plan comp, non-comp, and new store sales performance by selling location and labor scheduling. 25 Assortment Planning Plan product mix by category using demand-driven forecasts based on customer and selling location characteristics. Basis points increase in inventory turn by planning efficient receipt flow Plan Optimization Optimize store and customer groups with clustering and segmentation techniques to help ensure assortments are well balanced across selling channels. Perfect Price and Promotion Execution Source: SAP Performance Benchmarking 13 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  14. 14. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Customer-Centric Marketing and Promotions SAP Solutions Build customer knowledge into marketing and promotional activities. Real-Time Customer Insight and Predictive Analytics Communicate your brands’ promise through appealing marketing programs. Take advantage of all channels and up-to-date situational customer behavior when communicating offers. Design and execute advertising to improve effectiveness. Attract and retain loyal customers through high relevancy and touch points. Optimized Merchandise and Assortment Planning Marketing, Campaign and Promotion Planning Perfect Price and Promotion Execution 5% Improvement in gross margin of promotions by understanding demand factors and using them more effectively to drive incremental units Marketing Planning Organize and manage concurrent marketing activities to present a consistent and attractive brand image across channels and geographies. Campaign Management Increase visibility of marketing plans and processes across the organization to make quicker decisions. Embed collaboration functions to help ensure optimal outcomes. Promotion Planning Design advertising and promotional pricing that generates value and loyalty across a diverse and demanding customer base. Loyalty Management Attract and retain your best customers by creating sticky customer loyalty. Design and implement compelling loyalty programs across channels that maximize customer needs and wants while delivering profits to the bottom line. Source: SAP Performance Benchmarking 14 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  15. 15. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Perfect Price and Promotion Execution SAP Solutions Improve merchant understanding of customer preferences. Real-Time Customer Insight and Predictive Analytics Gain insight into demand drivers, and utilize these insights to determine the most effective pricing and promotional strategies for your customers. Execute efficiently and flexibly to align with the overall strategy. Measure effectiveness and incremental sales with proven retail econometric methods. Optimized Merchandise and Assortment Planning Marketing, Campaign and Promotion Planning Perfect Price and Promotion Execution 1%-2% Strategic and Operational Pricing Conduct customer-centric strategic analyses and align operational execution with your pricing strategy. Targeted Promotions Enable an analytical and targeted approach to promotion planning and execution. Effective Markdowns Carry out advanced econometric markdown planning and execute markdowns effectively to help ensure profitability. Increase in sales through more effective pricing Source: SAP Performance Benchmarking 15 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  16. 16. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us SAP Innovations SAP Innovations SAP HANA Mobile The retail industry has always struggled with data loads from POS sales storage which has grown exponentially to include new channels, consumer mobile devices, and social sentiment tracking. It is clear that a new approach to technology is needed to thrive in this new era. Analytics Cloud SAP HANA Process T-LOG transaction data in real time to garner insights into consumer preferences and know when significant change happens. 65% Mobile Interact with customer-related information, such as loyalty and product preferences available to store associates and online channels in real time. Companies that believe that cloud technology will amplify other megatrends, such as enterprise mobility, Big Data, and analytics Analytics Engage customers through advanced predictive analytics to forecast demand. Understand shopper preferences and suggest offers in real time. Source: SAP Performance Benchmarking Cloud Deploy new applications in record speed and interact with trading partners over one of the world’s largest commerce cloud networks. 16 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  17. 17. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us SAP HANA SAP Innovations SAP HANA Mobile Analytics Data loads have increased with electronic tracking of behaviors such as online browsing, social sentiment, multichannel data collection, and reconciliation. Unified forecasts and inventory preferences, which vary across channel and demographics, further increase the impact of data growth for retailers. Cloud Sales Data in Real Time Real-Time Data The availability of real-time data is now a reality. Know what your customers are buying as the result of a large promotion in the first few hours – both in the store and chain-wide. Assess demand patterns as they occur and gain insight into customer behavior. 53% Harmonized Demand Signals Unified Demand Demand is now captured across all channels and includes supply planning approaches and demand data generated by merchandise and marketers. And just where will all this data be harmonized and stored for use as a predictive asset? The answer is in the format of a next-generation demand harmonization platform that leverages the latest breakthroughs from in-memory processing. Customer 360Degree Analysis Complete Customer View Capture the complete customer view from cross-channel behavior and sentiment tracking, to real-time interactions at the point of buying decision. By using the latest predictive understanding and the ability to act in real time, customers will appreciate your attention to their preferences and become more loyal to your brand. Of organizations report a big gap between the availability of Big Data and their ability to analyze it for insights Source: SAP Performance Benchmarking 17 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  18. 18. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Mobile SAP Innovations SAP HANA By providing customer information at the point of interaction, mobile devices are enabling retailers to connect to the customer in ways not possible before. Mobile Analytics Cloud Mobile Customer Interaction Leverage customers’ smartphones to engage with them and offer real-time promotions based on their recent shopping activity. This is a proven way to deliver large improvements in response rates to promotional offers. 61% Of retailers recognize enterprise mobility as highly important, whereas 74% are yet to implement this enabler extensively Source: SAP Performance Benchmarking Mobile Customer Interaction Use up-to-date information when interacting with customers, whether in the store or through the online channel. Build a sense of customer intimacy by understanding their preferences in real time. Mobile Price Checking Mobile Price Checking When engaging with the customer in the store, respond to online price checking and price apps by highlighting product characteristics and valuebased services beyond price alone. Augment the price discussion with mobile solutions designed to highlight assortment availability and variety. Look up competitors’ online pricing of an equivalent product to validate your offering to customers. 18 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  19. 19. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Analytics SAP Innovations Predictive analytics can help build the customer analysis process to a whole new level. SAP HANA Mobile Analytics Cloud Assortment Optimization Refine assortments within stores and other selling channels as a final step by knowing the customer within each channel, and analyze sales and profit metrics to predict an optimal mix of products for each channel. 90% Of retailers recognize business intelligence and analytics as highly important, whereas 60% are yet to implement these enablers extensively Plan Optimization Optimized assortment plans combine essential store clustering, product segmentation, demand forecasting, and time-phased demand functionality within a single solution. Use the speed and advantages of the in-memory processing functionality of SAP HANA. Analyze broad and large volumes of assortment data in seconds to attain a concise and highly profitable plan. Unified Forecasts A Single Source for Forecasting Harmonize all sources of demand signal across all retail channels with a unified forecasting platform. Source: SAP Performance Benchmarking 19 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  20. 20. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Cloud SAP Innovations SAP HANA Mobile Analytics Cloud The speed and flexibility of cloud computing is creating new opportunities for best-run retail companies. Cloud solutions from SAP and the open SAP HANA application cloud allow companies to build differentiating solutions at the point of engagement – establishing nimble global business networks. Cloud Collaboration Collaboration in the Cloud Cloud collaboration between retailers and manufacturers is now achievable on a scale like never before. Leveraging the cloud functionality of the Ariba commerce network makes it possible to build integration to facilitate effective sharing of promotional information and customer insights derived from sales data. This can be achieved with suppliers of all sizes, while the traditional cost of network building shrinks significantly due to the scale and ease of cloud-based collaboration. The result: Joint win-wins in trade promotion collaboration, as well as new brand discovery and analysis techniques. Cloud Analytics Analytics in the Cloud Cloud-based analytics can help retailers accomplish tasks, ranging from key value item analysis to affinity analysis. This combines predictive analytics delivered in a consumable cloud-based environment with the latest innovations in visualization. 85% Of companies believe cloud technology will have a major impact on efficiency, innovation, or competitive differentiation Source: SAP Performance Benchmarking 20 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  21. 21. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Best-Run Customers Best-Run Customers SAP helps over 80% of the top 100 retailers run better every day. Bemol SAP solutions annually touch $12 trillion global consumer purchases. Chico’s SAP customers comprise 50% of the world’s brand-name jeans. coop SAP customers sell 86% of the world’s athletic gear. Why SAP? $12 trillion Value of global consumer goods annually touched by SAP software Source: SAP Performance Benchmarking 21 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  22. 22. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Customer Co-Innovation Best-Run Customers Bemol SAP co-innovates with leading global retailers to prioritize and direct our solution investments. These customers drive innovation and continuous incremental enhancements from idea to delivery, bringing valued retail solutions to the market. Chico’s coop Why SAP? Retail Executive Council Executives share best practices for executing key solutions today and in the future, incorporating new business and new technologies to meet the changing retail market needs. 22 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  23. 23. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Best-Run Customers -87% Chico’s Benchimol Irmão e Cia Ltda., known as Bemol around its headquarters in Manaus, Brazil, operates 17 department stores that sell everything from appliances and electronics to furniture and telephony equipment. coop Since partnering with SAP, Bemol has become a modern, agile company widely recognized as a regional leader. Why SAP? Key Benefits Bemol Decrease in can-celled online sales due to stock-outs +38%  Attained integration and control throughout business processes  Realized higher inventory accuracy and full traceability of goods at all stages  Provided more autonomy for business users, easing reliance and burden on IT Improved productivity in accounting -63% Less time required for financial closing “Most important, our executives are now 100% in control of our budgets and costs. We feel this is a big reason why our business is doing so well, with a compound annual growth rate of 17% in the decade since we adopted SAP for Retail solutions.” Franca Bendeira, IT Manager, Benchimol Irmão e Cia Ltda. 23 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  24. 24. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Best-Run Customers Bemol Chico’s coop Why SAP? Chico’s FAS Inc., a $1.9 billion company with 18,900 employees, consists of 4 women’s specialty brands offering sophisticated casual-to-dressy apparel, intimate apparel, accessories, and gift items. The company operates 1,225 boutiques and outlets throughout the United States and has direct-to-consumer channels for each brand. Chico’s implemented SAP for Retail solutions to enable a high-growth strategy, improve merchandising decisions, and gain greater efficiency throughout its operations. Key Benefits  Standardized on best-practice business processes to increase operational efficiency and facilitate multibrand capability  Established a scalable foundation for future growth  Improved ability to support sales, inventory, and purchasing decisions through enhanced business intelligence insight -50% Less time to create purchase orders +75% Improved physical inventory performance -50% Reduction in time needed for financial close “SAP for Retail solutions help us track products not only to the store but also to online and catalog channels. The visibility is critical to supporting decisions that we make throughout the business to serve our customers.” Gary King, Executive Vice President and CIO, Chico’s FAS Inc. 24 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  25. 25. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Best-Run Customers Bemol Switzerland-based coop@home is a full-range online supermarket with €20.5 billion in revenue and 75,000 employees. +22% Chico’s Key Benefits coop@home revenues coop Why SAP?  Orders managed without manual processing and unnecessary intermediate steps  Standard prices and special offers incorporated from SAP for Retail solutions directly, ensuring same pricing online  Noticeable increase in customer satisfaction  Flexibility to extend coop@home with more and differing products and services +41% Average purchase value +400% Quantity of products offered through coop@home revenues “We were able to increase our revenues from coop@home by 22% – particularly thanks to our e-commerce platform in place. We will try to optimize our efficiency. So far, we have made some valuable progress.” August Harder, CIO, Coop Group 25 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  26. 26. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Why SAP? Best-Run Customers Bemol Software for consumer-centric merchandising offers unique predictive functionality to closely align marketing and merchandising with customers’ needs and buying behavior, while achieving growth across retail operations and processes. Chico’s coop Why SAP? Providing Integrated, Comprehensive Software Build forecasted customer insight into all your merchandising areas to enable targeted promotions, optimized assortments, pricing and markdown activities, maximizing profitability and customer loyalty. Leveraging Key Breakthrough Innovations Use sophisticated database and technology solutions to execute your promotions in real time, improve your service levels, respond quicker to customer behavior, and become a more appealing brand for your customers. Delivering Value for 40 Years Build scalable, yet insightful, solutions for the new generation of shoppers to meet changes in customer behavior and increase your market share. 26 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  27. 27. Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us Find Out More About How Your Organization Can Become Best-Run Benchmark Your Performance Position your organization for dominance in this new economy with the business performance benchmarking program from SAP – available free to SAP customers and select prospects. The SAP benchmarking program has helped more than 3,000 organizations assess their strengths, uncover areas for improvement, and identify best practices and IT strategies that generate clear, tangible value – not someday, but today. Visit valuemanagement.sap.com >> Go Live in Weeks Here’s the fastest way to run your business better: our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly – including preconfigured software and implementation services – in just weeks. With a defined scope and predictable costs, there are no surprises. Visit sap.com/solutions/rds >> Join Your Community of Practices Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It lets members help one another solve problems, learn, and invent new ways to get things done – faster. Find out how to connect with people, content, and resources. Visit scn.sap.com >> 27 / 28 © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  28. 28. Solution Overview Retail Executive Summary Customer-Centric Merchandising SAP Solutions SAP Innovations References Contact Us CMP 23588 (13/03) Visit us online at www.sap.com/retail. Also, visit our community pages to learn more: http://scn.sap.com/community/retail http://wiki.sdn.sap.com/wiki/display/retail/IS-Retail www.facebook.com/pages/SAP-Retail/82783264322 https://twitter.com/SAP_Retail www.linkedin.com/groups/SAP-Retail-4022601 www.youtube.com/user/SAP4Retail © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  29. 29. © 2013 SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

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