Cloud Computing Helps Retailers Go Mobile
According to Forrester Research, the public cloud market is estimated to reach $191 billion by 2020, quite a boost from 2013’s $58 billion. Cloud applications will lead the charge, accounting for approximately $133 billion in revenue by 2020. Cloud platforms will bring in roughly $44 billion in sales, and cloud business services will amount to some $14 billion in revenue during that time.
At the same time, mobility is a prime objective for retailers, who are looking to improve flexibility among workers; retail executives are looking at cloud computing initiatives to fulfill that mission. In a new report released this week, “Elevating Business in the Cloud,” KPMG reported that companies are often choosing to implement cloud technology not only to improve cost efficiencies — which is the #1 reason — but also to facilitate a mobile workforce.
The survey was also conducted two years ago, when companies were first begining to implement BYOD strategies and create more mobile employee workforces. While just 15% of respondents in 2012 sited the enablement of a flexible and mobile workforce as a driver of cloud usage, in the recent survey 42 percent of respondents said mobility was a transformative mechanism to implement cloud solutions.
Perhaps more than any other group, retailers recognize the importance of using cloud to connect with consumers. Compared to other industries, retail executives in the survey were more likely to say their organizations are using cloud to improve alignment and interaction with customers, suppliers and business partners. According to the report:
“To maximize holiday revenue, for example, it is critical for retailers to turn to cloud solutions to attract and support mobile shoppers. Consider that Shop.org expects sales in November and December 2014 to grow between 8 and 11 percent over last holiday season – to as much as $105 billion. Mobile-optimized e-commerce or customer support tools, for example, can give retailers a competitive advantage during the peak holiday season, when providing personalized and instantaneous service is the new requirement for success. Retailers that aren’t able to respond to the expectations of empowered consumers will see them jumping ship, as they tap into online pricing and product information and seize the best deals elsewhere.”
Cloud computing can support initiatives such as clienteleing, a customer-centric approach that analyzes shoppers’ data and offers customized, personal solutions that can benefit retailers as well as their customers. Today’s shoppers are exacting: They want good value, quality service, a great all around experience.
As Jeanne Johnson, a Principal on KPMG’s Management Consulting team who focuses on consumer markets, pointed out in a statement, “Today’s empowered consumers expect more from their retail experience, and this adds pressure and uncertainty to retail businesses and operating models. Consumers expect to be known, recognized, and offered personalized insight and offerings. They want to interact with the brand in person, on-line, on the go – on their terms. They also prefer ready access to knowledgeable and responsive associates across those various channels.”
Cloud computing is making that personal experience a reality. Employees can access the cloud from wherever they are in a store; transactions are no longer chained to the cash wrap. They can go where the action is — which is where the customer is. Increased employee productivity (54%) and higher employee satisfaction and flexibility (48%) are the top two benefits the survey respondents attributed to using cloud to improve workforce mobility, and greater productivity means higher transaction values for the retailer.
