Intelligent retail business transformation


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“In the world of excess supply of goods, the customer has too much choice to choose from when they want to buy. Whether shopping for daily necessities or for fashion clothing, today’s empowered consumers are looking for clear and compelling differences among retailers. This challenges Retailer to develop a clear and compelling Branding Image and needs some measurable marketing tool to convert the store traffic into sales as well as they are able to proactively targeting their customer wants and needs to attract the return revisit.

Retailer should learn from Retail Bank which have started to build their “Card” system as their core competence from 80’s century. Prepaid Card solution would be the same “Card” weapons which are for Retailer to leverage. This book is to discuss why and how Retailer should use different type of prepaid card for different business needs.

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Intelligent retail business transformation

  1. 1. CERIDIAN STORED VALUE SOLUTIONIntelligent Retail BusinessTranformationKelvin TaiIn the world of Supply > Demand, how Retailer can drive the customer behavior
  2. 2. Chapter 1 - Mission StatementEnable Retail BusinessTransformation
  3. 3. “For Retailer Branding,product selling is equally importance with customershopping experience. Retailer needs to interact with their customerintelligently and better shopping experience” 2
  4. 4. Chapter 2Today Retailer Challenges
  5. 5. TodaySection 1Today Retailer Challenges - SUMMARY 1. Increasing Operating Cost in China 2. Lack of Measurable Marketing Tools 3. Lack of cost effective tools to increase Actual Spending 4. Decrease of Customer Loyalty to the Brand P.S. Different Retailer would face different challenges, I am here to list out the common challenges 4
  6. 6. Interactive 2.1 Today Operation Cost Increase - Stock Turnover Challenge “Increased Competition & Economic slow down caused the inventory pilling up” Case Study 1 2 5
  7. 7. Interactive 2.2 Lack of Measurable Tools Today - Unknown ROI of Marketing Campaign “Lack of data available, It is more like relying on intuition feeling when doing budget and plan” Marketing Resource Misallocation 1 2 6
  8. 8. Interactive 2.3 Interactive 2.4 Low Response rate for Voucher Need to Attract Customer Traffic Customer Revisit Proactive Targeting 1 2 1 2Today - Myth of drive store traffic & conversion rate & Basket Value“ Litte empirical evidence exists on the impact of traffic on store performance and the increase of basket”. 7
  9. 9. Interactive 2.5 Next Generation Today - Myth of winning customer love Many Retailer find their own loyalty card but 1. Hard to tell how success because lack of data tracking and analysis 2. Simply giving rewarding points or couponing 80/20 Rules still prevail “ Without the business intelligent, you cannot shoot the Cupid’s arrow right to the customer heart.” 1 2 8
  10. 10. CREDIT CARD IS A POWERFUL TOOLSection 2 1. Branding & Loyalty Every Bank will issue their Credit CardLesson from Retail Banking 2. Profitable Product 3. Cost Effective Cross Selling tool Retailer might think : We are not the bank, we sell the product What does this mean to me? We are not the bank 9
  11. 11. With Prepaid Card, Retailer can do almost the same as what Retail Bank do...Retail Gift Card Promotional Card Loyalty CardEye ball catching card design with Brand logo Promotional Card vs Coupon the response rate Loyalty Card is the powerful cross sale toolattract the people to buy as gift to others is exceptional higher with business intelligence Why Retailers are leveraging the Prepaid Card Solution to empower Proactive and Accurate marketing with business intelligence Measurable ROI to maximize the limited marketing budget Lever to increase in sale and basket value 10
  12. 12. Retailer Future Not Just ERP or other “ The financial performance of a retailer relates to its ability to attract traffic into its stores and convert the incoming traffic into sales profitably.”No Customer = No Business Interaction with you customer is the Key
  13. 13. Section 1 Chinese Customer Some Statistic from BCG report: 1. The no of Middle Income level customer in China will grow from 50,000,000 to 140,000,000 in 2020 but will more geo- graphically scattered. 2. 80/90 generation are the golden group, which have the great- est potential to spend more 3. In Major City, Female shows a strong growth on spending and Lorem Ipsum dolor amet, consectetur expect to weight over Male in future; In Minor City, Male may still slightly over Female in Spending 4. Retailers need to have wider city/province coverage in 2020 but their preference and needs are widely different 2011 Q4 AC Nelson reported the index of consumer sentiment in China is rising to 108 points, 19 points higher than other countries 12
  14. 14. Image 3.1 Image 3.2 In the 40/50’s, the chinese people need to fight for buying goods but it is Nowadays, Chinese people have too many choice to choose from no long existed nowadaysWhat do these meant to Retailer?• Leverage technology to understand • Improve the payment and shopping • Multi-Channel Sales and Marketing your customer needs and proactive experience to let your customer having unity marketing with business intelligent experience 13
  15. 15. Section 2 Learnt from Retail BankingRetailer Future Please refer to Chapter 2, Section 2= Info Science? “ Retailer should treat their own ‘Merchant Label Card’ as one of their core business strategy. Image 3.3 Merchant Label Card Different type of Prepaid card have their own purpose, but ultimately, it is to increase the profitability. 14
  16. 16. Value Proposition: Case Study - One of the famous Fashion & Apparels retailers • Being the Lever to “Lift” of incremental Gift Card is a over RMB$1,000,000,000 business sales • Merchant “Cash $150,000,000 Machine” • Sales Data Tracking $100,000,000Interactive 3.1 Lift is the lever of boosting sales $50,000,000 2009 $0 2010 Germany US Interactive 3.2 Cash is King Cash is King Basket Value LIFT AMOUNT Interest Income 15
  17. 17. Value Proposition Case Study : - One of the famous Fashion & Apparels retailers Image 3.4 Promotion Card drive exceptional sales performance • Proven tool for store over coupon traffic driver and sale conversion • Being the Lever to “Lift” of incremental salesInteractive 3.3 Driver for Grand Opening Interactive 3.4 Driver for New Product Launch Driver for Store Traffic Driver for New Product Sales LIFT is exceptional Exceptional Store Traffic 16
  18. 18. Value Proposition Case Study - One of Specialty Retail (e-card only) • Enable Accurate Target marketing Client Result • Drive for customer behavior Redemption Rate 30% • Better payment LIFT Ratio 642% experience Increase in Sales US$30,000,000 No of Return Visit > 30,000Interactive 3.5 Drive for sales by proactively demand creation Interactive 3.6 Data Mining of Customer Behavior Return Visit Drive Customer Behavior Proactive Target Analysis of Customer Marketing 17
  19. 19. Chapter 4About Ceridian Stored Value Solution
  20. 20. 20+ experience in Prepaid SolutionSection 1World Leading PrepaidSolution “ We are a World Leading Prepaid solution service company, serving different customers in different retail industry all over the world” ACHIEVEMENT SUMMARY 1. Global Provider: 650+ clients across 45 countries 2. 550 MM+ card production ; 1.2 Billion transaction processed 3. More Top 100 retailers than anyone else Ceridian SVS has been the pioneer since 1992 in providing prepaid solution service for 650+ customer worldwide in which 6 of top 10 retailers in USA 19
  21. 21. Image 4.1 SVS clients are all over the world and in different retail industry 20
  22. 22. About Arthor : Kelvin Tai“ Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution” xxi
  23. 23. xxii