As the digital transformation of the retail market accelerates, advanced analytics and big data technologies can help retailers gather critical customer intelligence and optimize operations that lead to better customer experiences and increased sales.

1. Empowering Your
Retail Business with
Advanced Analytics
ShiSh Shridhar
Retail Industry Solutions Director, Microsoft
Kuber Sharma
Product Marketing Manager for Advanced Analytics
and Machine Learning, Microsoft
February 16, 2017

2. 67
Years
25
Years
15
Years
Source: BBC
A hundred years ago, the average lifespan of a
company listed on the S&P 500 index was 67 years
75% of the S&P 500 will be new
(not on the index today)
25% of the S&P 500 will
be ones on the index today
In the 2020s…
The time to adapt to disruptions is shrinking

3. Business is being transformed by three trends

4. #1. Data Rules

5. We now face a world of connected data
1985 1990 1995 2000 2005 2010 2015 2020
CONNECTED
DIGITAL
ANALOG

6. #2. Cloud is the Future

7. Speed EconomicsScale
The cloud offers limitless computing power

8. #3. Intelligence

9. • Identify objects, people and
actions
• Hear and recognize language
• Infer emotions and reactions
• Develop deeper context &
understanding over time
Cognitive
Understanding
Conversation
as a platform
• Natural language
conversational UI
• On any canvas e.g. Skype,
Slack, Facebook, etc.
• Intelligent Bots powered by
data & the cloud
• Accessible through personal
digital assistants
Intelligent solutions will enable differentiation

10. Advanced Analytics for Retail
How can today’s retail executives successfully compete in
this dynamic marketplace?
• Differentiate the shopping experience through the
meaningful use of technology
• Personalize promotions and experiences for customers
• Use forecasting to predict and prescribe what will sell,
when, where, and to whom

11. Customer Personalization
• Creating Offers that are Personal and Relevant
• Just In Time Offers
• Using Contextual Data to Improve Relevance
• Improve ROI of Campaigns
• Reduce Customer Churn

12. of customers will manage
their relationships without
human efforts by 2020
increase in adoption of
marketing automation
in 2015
of top-class companies are
likely to use marketing
automation software
of B2B marketers have
used marketing
automation software for
their businesses
of successful marketers
believe marketing
automation is useful for
increasing revenue
of companies using
marketing automation can
see ROI within 12 months
Personalized Offers
Market Dynamics Overview

13. ww
Personalized offers for online
retail
Product recommendation
Customer Segmentation
Proximity marketing
Online Retargeting
RETAIL
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Dynamic Content &
Adaptive CTAs
Marketing optimization
(time, device, channel,
behavioral triggers)
HORIZONTAL
Common Personalization Use Cases

14. Foodservice Retailer Increased Revenue
with a Cloud-Based Mobile Solution
Challenge
• Inability to identify or
connect with customers
• Lack measures of
customer loyalty
• Untargeted promotions
erode revenue and profit
Solution
• Added an analysis and
insights system based on
Microsoft Azure
• Gathered data on
customers’ behaviors and
preferences to target offers
Benefits
• Expanded reach to millions of
customers in five countries
• Enabled personal, relevant,
contextual content that adds value
for the users
• Improved promotion efficacy and
customer loyalty
“The company saw a huge increase in customers, and those customers
spent 47 percent more. It was all driven at the device level.”
Scott Bradley, CEO and founder of Plexure (Vmob)

15. 7-Eleven Engages Customers
for Repeat Visits
Objectives
7-Eleven wanted to connect
various sources of customer
data to provide a single
customer view, and use mobile
and live data to track the
purchase cycle and engage
customers in real time.
Tactics
The Plexure solution used a
mobile app, IoT orchestration,
and beacons to tailor
customer promotions to
personal preferences and
purchasing history.
Results
• Linked fuel purchases to
convenience purchases,
positioning 7-Eleven as the
convenience store of choice
• Encouraged customers to return
to 7-Eleven locations, taking up
more offers more often

16. 16
Challenge
• For Expo 2015 Milan,
Accenture and Avanade were
tasked with updating Coop’s
offered shopping experience
to reflect how customers
should be able to shop for
grocery products in the future
Strategy
• Led with ACN/AVA/MSFT alliance
digital expertise, powered by Azure,
SQL Server, Kinect, and System Center
• Provided innovative solutions like
interactive food display tables, shelf
replenishment, and real-time data
visualization
Results
• Second-screen technologies allowed
suppliers to provide promotional
content and interact with shoppers
• Staff was able to speak with the
warehouse in real time
• Microsoft technologies: Azure and
240+ Kinect devices
Coop Italia Transformed Customer Experience
with Supermarket of the Future
“Seeing the Supermarket of the Future in person made me an even stronger believer: that
with Accenture and Avanade’s digital expertise—coupled with Microsoft technology—
nothing can stop us from making significant inroads for all retail customers of the future.”
Javier Carregha, Alliance Director for Products, Microsoft

17. “Now people can view, in life-like realism, large items like cabinets,
appliances, and countertops in size and scale with incredibly high-definition
options and detailed finishes.”
Scott Erickson, General Manager of Microsoft HoloLens
Home Improvement Retailer Demos Virtual
Showroom Using Hologram Technology
Challenge
• Lowe’s wanted to help
customers imagine what
different kitchen
product choices would
look like in real life
Solution
• Provided an augmented
reality experience using
hologram technology
Benefits
• Created a holographic
representation of a kitchen where
customers could adjust finishes and
options instantly
• Enabled customers to share their
designs easily online

18. Demand Forecasting
• Inventory management
• Meeting demands across geographic
locations
• Ability to predict and meet seasonal
fluctuations
• Real-time response to weather, unexpected
events

19. ww
RETAIL
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Capacity/Resource
Planning
Inventory Optimization
HORIZONTAL
Use Cases
Marketing optimization
based on product demand
Sales operations optimization
based on demand
Channel optimization based
on customer demand

20. Furnishings Importer Delighted
Customers with the Right Offers
Challenge
• Give customers a better
experience and selection
• Understand what
customers are looking for
based on online search
Strategy
• Combined online and in-
store transactional and
behavioral data to predict
what products customers
would be most likely to
purchase next
Results
• Provided more personalized
choices to customers
• Enabled targeted campaigns
• Improved inventory management
“We are continually getting better at identifying what our customer wants, using
Microsoft Azure Machine Learning and resulting data insights.”
Sharon Leite, EVP Sales and Customer Experience, Pier 1 Imports

21. Drink Manufacturer Optimizes Operations,
Boosts Customer Satisfaction
Challenge
• Avert downtime and out-of-
stock products
• Improve operational efficiency
of partners in the field
• Deliver better customer service
Solution
• MARS DRINKS identified
the optimum time to
stock and service its
vending machines by
using Internet of Things
(IoT) technology
Benefits
• Improved timely product stocking
and operational efficiency
• Increased customer satisfaction
• Drove business insights from
consumer behavior data
“Putting machines online, considering how a space is used, and looking at
people’s beverage consumption will unlock a wealth of information that we
haven’t been able to easily access before.”
Jamie Head, Chief Information Officer, MARS DRINKS

22. Beverage Company Boosts Business with
Big Data Analytics in the Cloud
Challenge
• Gain new insights from
sales data
• Boost profitable growth in a
highly competitive market
Solution
• Processed data through
200 regression models
using Microsoft Azure
Machine Learning
• Provided interactive
analytical tools in a
single Excel view
Benefits
• Provided more time to focus
on business strategies
• Improved ability to measure
marketing successes
• Gained powerful analytical
tools that are easy to expand
and customize
“We can use Azure ML to generate answers for each individual area [marketing, production,
logistics, and warehousing] and get combined answers for the entire company.”
Ruben Dario Torres Martinez, IT Manager, Arca Continental

23. The Future of Retail
• Microsoft Advanced Analytics
• Microsoft Cortana Intelligence

24. Go to
http://www.microsoft.com/advancedanalytics
Go to http://www.cortanaintelligence.com
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