How Google helps Retail Industry in enhancing business performance?
How Google helps Retail Industry in enhancing business
INDUSTRY TRENDS / CHALLENGES
Globalization has radically changed the whole Retail/FMCG industry. Disturbing economic factors - high
unemployment, rising inflation, government debt crises in Europe and the U.S., and stock market
volatility - have greatly impacted retail sales. Given challenging economic conditions, retailers will have
to continue to be aggressive in seeking opportunities for top-line growth, while maintaining the strength
of the bottom line by driving operational efficiencies.
With the entry of new players in the market and increase in number of point-of-sale and point-of-supply,
Retails/FMCG sector has witnessed major challenge in terms of customer experience and loyalty
maintaining both top-line and bottom-line. To expand, acquire new customers and better consumer
experience, Location based intelligence will play a major role in alleviating the complexity of retail
operations and improving business efficiency. It also enhances predictive investigations including
market and customer analysis, encapsulating different forms of real-world and modelled data to
understand the demographic, competitive and psychographic interaction of consumers, suppliers and
the geographic space in which the data is distributed.
Retails and FMCG industry are dependent on sales and supply chain team heavily through which they
manage the whole business cycle. Automation of the whole reporting and inventory management
process through technology solutions will profoundly enhance business performance
In addition to
providing more compelling in-store experiences, retailers are exploring the following capabilities to
attract and retain customers.
The ability to manage new formats, optimize the existing footprint, and strengthen capabilities in the
growing online channel will be critical for retailers going forward. Retailers continue the long-term task
of exploring store formats and reevaluating their footprints that will enable them to penetrate new
geographies and consumer segments. Companies such as Rite Aid and Walmart, for example, are
experimenting with scaled-down versions of their stores with low in certain geographies. The growth of
online shopping is demanding that retailers better capitalize on the trend - beyond the basics, such as
developing easily navigable websites. This will require new capabilities that will enable companies to
innovate and gain competitive advantage. Personalized couponing and customized digital offers, based
on shopping behaviors and location, is an increasing tactic. Top retailers are largely making
investments in acquiring and analyzing consumer data to better tailor online and mobile promotions, as
well as to drive more effective loyalty programs.
In an era of frugal, “smarter” consumers, developing the capabilities required to place the right product
in the right store at the right price is essential to fuel profitability. To get the most out of their stores,
retailers need to tailor them to better reflect local tastes and preferences. This effort to “localize” leads
to a better shopping experience, increasing traffic, revenues, and loyalty. Research shows that returns
for this effort can be dramatic, as retailers can improve their top line by 2-3 percent over base sales.
The use of data, economic indicators and consumer analytics becomes even more important when
trying to achieve localization. It requires retailers to upgrade their internal analytical capabilities to
accurately answer complex questions:
How should product assortment in each store differ by region and by the unique demographics and
characteristics of the trade area?
How should they be promoted, and when?
Forward-looking retailers are focused on social media, which is likely to become the next generation of
e-commerce and a powerful new sales channel. While the sales volume in social media is still small,
it’s expected to grow to US$30 billion by 2015, nearly half of which will be in the United States. To
prepare for the future, retailers should be thinking about capabilities they will need to commercialize
social media. They should be considering how to make the leap from getting customers to “like” them
on Facebook to getting them to make repeated purchases.
MAP ENABLED SOLUTIONS FOR RETAIL
Google maps and earth products allow retailers to benefit from maps and location like never before
By overlaying store locations, customer data, demographics layers and competitor information on a
Google map, retailers can use location to drive innovative marketing tactics and create new sales
In this way, the map becomes a powerful data solution, or tool to for retailers to more effectively identify
Relevant Google offerings for retail include: Google Maps API and Google Maps Engine
Google Maps and Earth bring several differentiated capabilities to an organization:
Ease of Use
Please contact Lepton Software at firstname.lastname@example.org or
visit www.leptonsoftware.com for further information.