Presentation to a retail operations class at UNC Kenan-Flagler, after the students presented company profiles on selected Companies to Watch. Their work supplemented my talk.

1. Jan L. Davis
Professional Board Member

2.  Embracing analytics
 Online and mobile
 Companies to watch
◦ Pedestrian counting & tracking
◦ “Big data” solutions
 Summary
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3.  “If you can’t measure it, you can’t manage it.”
 Need for metrics never more acute
 Growth of online and mobile impacting
brick & mortar
 Understanding profit growth levers - crucial
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4.  Marketing spend
 Store traffic
 Labor hours
 Conversion rate
 Ticket/basket size
 Inventory turns
 Out of stock conditions
 New product introductions
 And they all interact!
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5.  Embracing analytics
 Online and mobile
 Companies to watch
◦ Pedestrian counting & tracking
◦ “Big data” solutions
 Summary
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7.  Retail stores = showrooms for online shopping?
 Amazon Price Check might be evil, but it’s the
future, Erik Kain, Forbes, 12/14/11
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8. Mobile Check-out
eMobile POS
On the spot
Customer engagement
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9.  Sustaining and disruptive change
 Embracing analytics
 Online and mobile
 Companies to watch
◦ Pedestrian counting & tracking
◦ “Big data” solutions
 Summary
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12.  Digital video single-purpose device with
embedded technology
 Overhead infrared readers
 Side-mounted gates with infrared readers
 Digital video appliance with cameras
 Hybrid - automated human review of security
camera video
 Smart phones
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13.  Why count traffic?
◦ Scheduling labor
◦ Measuring marketing impact
◦ Improving service through training & feedback
◦ Tracking KPIs like conversion rate
 Why track shoppers?
◦ Assessing capture rate & unique or repeat visitors
◦ Improving layouts and planograms
◦ Measuring engagement with displays
◦ Calculating SKU conversion
◦ Improving service
 When Retail Customers Count
 Conversion: The Last Great Retail Metric
◦ Both by Mark Ryski, Headcount
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14. Lost Retail Opportunity 3% Reasons for not purchasing
4% Price
2% 4%
Price comparing
8%
Quality of merchandise
13% 19% Line at register
72% Sales assistance
Couldn’t find size
13%
Couldn't decide on item
34%
Couldn't find item(s)
Just browsing
72% of reasons for not buying are easily within the
influence of the store
Copyright © 2007 Deloitte Development LLC. All rights reserved.
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15.  Global leader in thermal imaging
devices for broad array of
applications
 People counting and queue
management in retail
◦ Resell devices to multiple people
counting companies
◦ Partner with large supermarket
chains (Tesco, Kroger) for queue
management
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16. “Google Analytics for Real World Stores”
 ReTel’s Technology integrates
with security cameras to track:
◦ Operations
◦ Consumer behavior
◦ Merchandising
 Hybrid computer vision and
video tagging assembly line
 Scalable from 1 to 1000+ stores
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2012 16
Proprietary & Confidential – Please Do Not Distribute

17. Detailed
Customer Counts By
Demographics:
Day of Week
Age, Gender
and Height
Customer
Counts By
Gender
Avg.
Customer
Counts By
Hour Not Shown:
Group Size
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18. Shopper
Interaction
Heat Map
Category
Conversion
Funnel
Sales
Associate
Metrics
Sales
Associate
Impact
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19.  Anonymous tracking of GPS-enabled phones
 Capture rate, dwell time, unique and repeat
visitors, benchmarking
 Inexpensive hardware
 Allows consumer
opt-out online
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20. External Meta Data
(i.e. Yelp, Weather, Retail data,
Consumer opt-in data) Operational Analytics
Removes
“noisy
data”
Raw Heuristic
Data Filters Euclid
Filtered Learning
Data Machine
Marketing Analytics
Copyright - Jan L. Davis - April 19, 2012

21. Simple metrics create real revenue opportunities
Retail Property Owners Out-of-Home Advertising
Key metrics vary by store Used for operational, Bringing the best of
type: planning, advertising online advertising to the
and leasing offline world
Example: Apparel Example: Tenant Mix Example: Impressions,
Example: Coffee Conversion, Relevance
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22. Consumer retail behaviors too numerous &
diverse for commonly used tools
◦ Increasing volume
◦ Increasing speed
◦ Increasing variety, both sources & types
 DunnHumby
 Retail Solutions
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23.  Partnered with Tesco to launch loyalty card
 Launched in US with Kroger JV, exclusive for
grocery
 Expanded to Macy’s & others
 Analyze transaction & loyalty card data
 Overlay research, media & online data
 Mine data to localize & personalize offers
◦ Direct mail
◦ Email
◦ Online contextual ads
 Provide demand-based pricing optimization
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24.  Paying customers are CPG companies.
 Provide free services to retailers
◦ Analyze point-of-sale, supply chain, merchandiser
feedback, customer loyalty data
◦ Fix out-of-stocks, correct root causes
◦ Ensure compliance with pricing, promotion,
planagram commitments
◦ Operate replenishment programs
◦ Improve new product introductions
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25. Category Forecasting and S&OP
Management
Inventory
Pricing Management Management &
Sales & Marketing
Replenishment
Supply Chain
Retail
Promotion
Management Execution Out-of Stocks
Management
New Product
Shrink & Unsaleables
Introductions
Store Operations & End of Life & Package
Field Sales Transitions
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26.  Changing environment: opportunity & threat
 Analytics
◦ New metrics emerging
◦ Standard metrics matter more than ever
 Online and mobile
◦ Drive customer behavior
◦ Provide new operational solutions & threats
 “Simultaneous discovery” epidemic
◦ Shopper counting & tracking
◦ “Big data” analysis and solutions
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27. Jan L. Davis
jldavis200@gmail.com
312 961-2203 (cell)
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