Category Archives: Customer Engagement & Business Intelligence

by Jennifer Bosavage

Anonymized Data Is Not All That Anonymous

Remember “anonymized” data? The kind retail customers felt OK about sharing, because it couldn’t be tracked back to a specific individual? Turns out, according to the very bright folks at MIT, that anonymized is quite different from anonymous.

Current guidelines aren't strong enough to help companies keep credit card data secure.

Current guidelines aren’t strong enough to help companies keep credit card data secure.

Researchers at MIT studied three months of credit card records for 1.1 million people, and the results were published today in the journal Science. For 40% of people, it took only two data points, without price information, to identify a customer. Five data points was enough to ID virtually everyone.

The ability to preserve anonymity in large data sets is important, because aggregated digital data can be a rich source of customer insights. Retailers analyzing anonymized credit-card histories could learn about customer tastes, trend information, seasonal variations and even weekly shopping rhythms. But re-identification is dangerous, and it will make customers less willing to give up any personal information and more likely to pay with cash.

What about coarsening the data, making it intentionally vague? The MIT researchers examined the effects of attempting to maintain privacy while still obtaining some useful analysis. The results were not encouraging. According to MIT News: “Even if the data set characterized each purchase as having taken place sometime in the span of a week at one of 150 stores in the same general areas, four purchases (with 50 percent uncertainty about price) would still be enough to identify more than 70 percent of users.” Therefore, a data set’s lack of names, home addresses, phone numbers or other obvious identifiers does not make it safe to release publicly.

Credit card data has great potential for retailers and should be gathered, but care must be taken to avoid re-identification. But the study does highlight the standard methods many companies use to anonymize their records. And it will certainly add fuel to the fire of those concerned about the consumer-tracking processes employed by advertising software and analytics companies.

by Ulyana Avetisov

Innovative NYC Apparel Retailer Leverages Retail Pro to Add, then Aggressively Scale New Luxury Spinoff Brand

NEW YORK – In a hyper-competitive New York City apparel market, retailer OMG Jeans has been a mainstay along the Manhattan Broadway district utilizing Retail Pro as their retail management solution across three decades to grow from a single store in 1998 to a local mid-sized retail chain today. After opening dozens of stores, OMG Jeans has found Retail Pro’s flexible deployment options invaluable, particularly the thin-client capabilities delivered with Retail Pro 9. Attracted by Prism’s ultra-flexible and fast deployment options and its cross-platform capabilities, OMG Jeans became one of Prism’s earliest adopters, finding themselves impressed with the new platform’s stability, ease of implementation, lightweight design and intuitive user interface.

In 2012, OMG Jeans shifted their retail strategy to portfolio diversification and market expansion by introducing a luxury sunglass kiosk within their stores. The new offering turned out to be very successful across multiple locations. The market for luxury sunglasses is a surprisingly uncompetitive niche, and after evaluating the market, OMG Jeans’ leadership decided to craft a standalone brand, Specs, to capture market share along the East Coast sector. Specs further secured its position by finalizing a deal to become an authorized reseller of Luxottica designer brands, which gave them access to over 20 of the world’s most recognizable luxury eyewear brands, such as Ray-Ban, Coach, DKNY and  Giorgio Armani.

The first Specs store opened in January 2014 to an encouraging market response, but with a few additional challenges as well. Although Specs’ leadership team was very familiar with Retail Pro, miscommunication with a business partner led them to believe to that another retail management system, Lightspeed, was required for use by all Luxottica resellers.  As Specs’ relationship with Luxottica comprised a core value offering for their business, upon launching, the new brand aimed to maintain symbiosis with its primary reseller by implementing Lightspeed.

Not long after implementation, Specs soon encountered issues with Lightspeed’s inability to be flexible and adapt to their business workflows. After learning that the perceived stipulation was indeed a misunderstanding, Specs quickly transitioned back to Retail Pro, implementing combinations of Retail Pro 9 and Retail Pro Prism, realizing that several of the platform’s key attributes, in addition to the store operators’ familiarity with the software, positioned them to scale the brand rapidly.Specs

Retail Pro’s choice of database and cross-platform capabilities shined especially in this regard. Retail Pro’s flexible database options let Specs configure instances of MySQL and Oracle databases in various combinations, allowing them to tailor future implementations to a new store’s individual hardware requirements and preferences.  Retail Pro Prism’s cross-platform capabilities also gave Specs the freedom to deploy Retail Pro smoothly across all-in-one desktops, as well as iPad & Android tablets with no loss in functionality or change in workflow. The glaring, untapped market space in the luxury eyewear market, combined with the ability to stabilize Specs’ operations and workflows using Retail Pro, gave Specs the confidence to capitalize on a unique opportunity to scale its new brand aggressively. Between January and October 2014, Specs opened an impressive 7 new stores in 3 regions along the East Coast: New York, Maryland, and Washington DC.

“After returning to Retail Pro, we were truly able to appreciate the value of being able to easily tailor a workflow to your needs,” explained Joe Bahar, Head of IT at Specs. “Just as well, Retail Pro has always been easy to train new associates on, but now with Prism, the interface is even more intuitive and works across platforms, so that now we can train new employees on multiple devices in a really short time. Basically this gives us the freedom to add employees or devices at whatever rate we choose, which is critical at our stage of buisness. Retail Pro has always been easy for us to install and implement, but now being able to rely on it to scale Specs exactly the way we want to is both extremely promising and very refreshing.”

by Ulyana Avetisov

Retail Pro University and Your New Year’s Resolution

January always feels like a fresh start, like turning to a new page in a notebook.  After the rush and bustle of the holidays, it is a time to reflect and set resolutions to help you achieve your business goals.

Did you know that 45% of people make New Year’s resolutions but only 8% of them follow through?  According to a recent study published by the Journal of Clinical Psychology, the top two resolutions (after losing weight and getting in shape) involve getting more organized and making better financial decisions.  47% of survey participants indicated that their resolutions were related to self-improvement and education.

Learn to Get the Most Out of Your Retail Pro with Retail Pro University

At Retail Pro University, we want to help you succeed in the self-improvement and education resolutions you set for your business.

You have probably heard that your Retail Pro is a valuable tool to maximize productivity and enhance the shopper experience. But even the best tool can’t help if you don’t align its capabilities to your needs and strategies.

Retail Pro University’s comprehensive training classes teach you to tap into Retail Pro’s potential, so you can get the most out of your Retail Pro.

 

Retail Pro University’s Flexible Learning Optionsrpi university

Live, in-person classes are held every month at our offices located near Sacramento, California.  In just two weeks, you and your employees can be fully certified in three different programs: the applications expert, the systems engineer, and the reports professional.

We can also bring our training to you with a two-week course held at your office.  Save time and money by training your entire staff at the same time.  Call or email us to find out about custom training solutions.

People who explicitly make New Year’s resolutions are 10 times more likely to attain their goals than those who don’t explicitly make resolutions.  If your goals include using your Retail Pro to increase efficiency as you grow your business, let us show you how a Retail Pro education can help you accomplish your resolutions.

Make 2015 the year you invest in being more productive and educated, so you can improve your business operations with a Retail Pro University training.

 

Tell us what you would like to learn this year with Retail Pro University!

 

 

by Jennifer Bosavage

How Much Info Is Too Much?

With the rise in mobility, comes an increase in data. And,if it seems to you that virtually everyone on earth has a mobile phone, you’re right: According to the United Nations Telecommunications agency’s most recent figures, more than 6.8 billion cellular subscriptions are in existence worldwide, and that’s pretty close to the world’s population figure of 7 billion. With all those cell phones in use, m-commerce — specifically, using handheld devices to purchase goods and services — is quickly becoming ubiquitous. And with that comes the realization that a whole lot of data is being generated, and cataloged.

With big data capabilities, merchants are using retail business intelligence to improve the shopper experience in their stores.

With big data capabilities, merchants are using retail business intelligence to improve the shopper experience in their stores.

During Tuesday’s keynote panel at the Consumer Electronics Show, “How Mobile Is Fundamentally Changing our World,” technology experts from across the industry addressed how mobile connectivity is transforming business and personal lives. the panel discussion was hosted by John Ford of CNBC, and included Jan Brockmann, chief technology officer and senior vice president of Electrolux; Phil Abram, chief infotainment officer of General Motors; Steve Mollenkopf, CEO of Qualcomm Incorporated; and Jeroen Tas, CEO HISS of Philips. The panelists discussed concerns regarding mobile connectivity, including privacy and data collection in addition to how different sectors are evolving due to the influence of constant Internet access; for example, the smart home, automobiles and the health care industry.

“We are, as an industry, at a very strong point of experimentation,” said Mollenkopf. “People are trying to figure out what are these new categories, how do they work, who’s going to win, what will the consumer understand and what will the consumer put up with in terms of data being taken about their daily lives, and how will we manage that as an industry.”

That last point is key: How much of their personal information will consumers be willing to share, particularly with retailers? And, with the Internet of Things being touted as the “next big thing,” there is concern that the continuous collection of every ounce of data will reveal too much about individuals. Correlating the “just right” pieces of information can unravel a person’s anonymity, exposing information not intended for public consumption.

“This pervasive collection of data inevitably gives rise to concerns about how all of this personal information will be used. Will the data be used solely to provide services to consumers?” said Edith Ramirez, Chairwoman of the Federal Trade Commission in her CES keynote. “Or will the information flowing in from our smart cars, smart devices, and smart cities just swell the ocean of ‘big data,’ which could allow information to be used in ways that are inconsistent with consumers’ expectations or relationship with a company?”

Retailers are in the position to collect huge amounts of data. Consumers should always be provided with clear and simple notices of the proposed uses of their data and a way to opt-in, or out. Where possible, retailers could also de-identify information; data concerning trends in fashion do not need to be personally identifiable, for example. Trends are, after all, general observations. As Ramirez noted, fostering consumer trust is just good business sense.

by Retail Pro

Are you capitalizing on analytics?

Businesses have rapidly started to adopt, deploy and optimize retail customer intelligence solutions in the past year, while there are still plenty of opportunities for those who have been a bit slower to the punch to get rolling on the relevant projects. However, companies that have not even started to consider the merits of implementing big data and other types of advanced analytics solutions are likely to find themselves at a competitive disadvantage in the coming years if they continue to balk on these investments. 

Intelligence tends to yield success in the competitive and saturated markets of the modern era, and failure to use the full range of technologies and tools to become a bit smarter represents a step in the wrong direction. Retailers are experiencing massive increases in data generation, collection and analysis, so leveraging the most effective and advanced intelligence solutions should be a high priority going into 2015. 

Case in point
Alexander Linden, research director of prestigious firm Gartner, recently participated in a question-and-answer that was then published on the company's website to give those heading to its analytics conference this winter some perspective on what items will be on the agenda. In the piece, the expert urged the need for more agile and effective strategies that work to the advantage of the company through the use of advanced analytics technology. 

When asked why chief information officers and other leaders should begin to take analytics more seriously, Linden had the following to say:

"The overall amount of data and analytics is growing in every industry," he affirmed. "CIOs need data science to extract nontrivial information. For example, it's mission-critical to determine how to acquire new customers, do more cross-selling and predict demand and failures. Normal business intelligence and descriptive analytics**, and even traditional software engineering, can't handle those situations. Advanced analytics can surpass human capability in coping with significant volumes of data, and dealing with highly complex digital business settings. Digital businesses have to adopt data science methods in more use cases, by driving the availability of sensor data, expanding bandwidth and reducing storage costs."

Furthermore, the research director noted that companies will need to ensure that they have the right types of skills and talent in-house to handle the data science-related tasks associated with advanced analytics, and that seeking out these professionals should be a priority given the impending shortage various firms have predicted. 

Push it to the limit
Retailers are in a unique position to get more out of intelligence solutions than businesses in a wealth of other industries, notably because this sector has been one of the quickest to digitize its workflows and information management. By leveraging advanced analytics solutions, retail customer intelligence can be substantially improved and prepared to further the financial and operational improvements of the company down the road. 

In short, advanced analytics will become more critical, and companies that recognize this sooner rather than later might be able to grab a competitive advantage out of the deal. 

by Retail Pro

How tight is your CRM strategy?

Client relationship management is one of the most important responsibilities in retail today, as competition, market saturation and other challenges continue to intensify amid the economic recovery in the United States. When firms do not take these matters seriously, the chances of sustaining loyal and engaged customer relationships will drop, which can then lead to significant issues in terms of improving profit margins and driving revenues higher with the passing of each year. 

Studies have indicated that loyal customers are far more financially beneficial than new ones, and this is not to say that companies should only focus on their repeat clientele, but that they need to know how to prioritize budgets, resource allocations and the like. Luckily, with the help of modern retail customer intelligence and relationship management software, striking the right chord with clientele can be far more efficient, effective and strategic today than in the past. 

Not just instant
Some companies will believe that the initial stages of CRM deployments and strategic launches are the only phases that matter, but this is a dangerous misconception. TechTarget recently affirmed that leaders need to be far more aggressive and insightful when approaching these investments and planning procedures, working to balance perspectives on the short- and long-term aspects of implementation, management and optimization. 

In fact, the source argued that the sometimes high upfront costs of getting an advanced CRM solution in play will stifle the chances of the firm adopting those tools, especially when leaders are only focused on the instantaneous benefits that might be yielded by the solutions. As such, the news provider affirmed that business decision-makers need to keep everything in perspective, working to tailor strategies that will lead to long-term functionality and optimization of the CRM solutions in place. 

Additionally, retail customer intelligence solutions and analytics programs will come with similar management demands. 

Where to begin
The initial planning stages will generally dictate the success or failure of the CRM program, as firms that flippantly deploy the tools without any underlying guidance will tend to struggle to monetize the tools immediately and in the long run. By being more diligent when establishing the plans, including objectives, metrics and more, the firm will better position itself for successful experiences, higher returns on investment and a greater level of performance in their client-facing departments. 

by Jennifer Bosavage

3 Technologies To Ring In the Retail Year

Retailing incorporates an enormous amount of customer-facing technology, perhaps more so than any other market segment. While other segments certainly use technology, for example, manufacturing, the focus is mainly interna: How can we build things better? In retail, not only do stores depend on technology to reduce costs and improve efficiency, but they also use technology to engage and attract customers. For retail, technology is all-encompassing.

As we look to 2015, a number of technologies will emerge as those best suited to helping retailers achieve their business goals — and that is the true test of technologies worth investing in. Here are three worth noting.

Proximity marketing. Sometimes called “hyperlocal marketing.” this is a successful method of enticing nearby customers — who are equipped with Bluetooth- (or WiFi-) enabled smartphones and have opted in to your marketing program — into a store. In other words, proximity marketing simply uses cellular technology to send marketing messages to mobile-device users who are in close vicinity to a business. Stores are sending ads to customers most likely to buy: They are previous customers who have agreed to receive these messages, and are close to the store. It’s far more targeted than a business who sends a text blast every Thursday to every customer who has opted-in to its marketing program, because of its ability to hone in on location. That text message is unlikely to get the guy who’s washing his car to drop his bucket and run to the store to save 15% on a pair of jeans. But if that guy is 15 feet from the store entrance, he just might go in and make a purchase. NinthDecimal (formerly JiWire) reports that 53% of consumers are willing to share their current location to receive more relevant advertising, and, 63% of consumers feel a coupon is the most valuable form of mobile marketing.

RFID. A properly implemented RFID system pretty much guarantees stock information is accurate. Each item is

RFID tags can be used for a number of retail purposes.

RFID tags can be used for a number of retail purposes.

unique, easily identifiable and can be registered with no human intervention. The fashion industry is benefiting greatly from RFID. Take, for example, American Apparel. According to a blog on RFID Arena, this retailer normally supplies online sales from the warehouse. However, when an item is not available in the warehouse, the system checks different stores’ stock levels, finds the item and allocates the order to the appropriate store. The stores become mini-distributors by packing and shipping the goods to the customers. This has a direct impact on customer satisfaction, and is possible because of RFID. With the growing popularity of click and collect — shoppers buying online but wishing to pickup their items in-store — RFID tracking will become even more mission critical to retailers.

Mobile Wallets. Finally, shoppers in the U.S. will embrace mobile wallets, most likely enticed by Apple Pay, available on the iPhone6. Chevron gas stations, for example, have announced they will start accepting the payment early in 2015. Sure, Google Wallet has been around since 2011, but it took the genius of Apple’s marketing to show consumers how simple — and secure — the technology can be. The “tap to pay” phenomenon may reach a tipping point soon. No longer spooked by security breaches at retailers including Target, Home Depot, and Michaels, customers appear comfortable with the new technology. Because Apple’s system, for example, doesn’t save transaction information, customers are less apprehensive about using it to make a purchase at a store.

by Retail Pro

Leverage analytics for stronger retail customer intelligence

The volume, velocity and variety of information coming through modern big data strategies have forever transformed the meaning of retail customer intelligence, as businesses work to harness the power of analytics to drive decision-making across operations. Firms that have yet to embrace these technologies are likely to find themselves at a competitive disadvantage before long, as stronger availability of insights tends to translate to more prolific financial performances. 

When customer intelligence reaches a pinnacle of functionality, utilization and integration, the business will be far more likely to enjoy speed and agility when trying to adjust to forthcoming and current trends in consumer preferences and beyond. This is why marketing departments in retail are becoming some of the most avid adopters and users of big data technology, reshaping what it means to put forth an intelligent, relevant brand image. 

Revolutionizing retail advertising
Forbes recently listed several ways in which the use of big data will likely impact marketing strategies in 2015, beginning with the prospect of agile retargeting when certain advertising efforts have not come back with the expected returns. Essentially, businesses will be able to leverage the insights garnered from big data solutions to quickly and accurately retarget various marketing and branding efforts to work to the best advantage of the firm. 

According to the news provider, personas will also likely become a more important matter in the realm of online marketing, as companies are now more capable of identifying certain types of shoppers and tailoring the content to them in a more effective fashion. This can lead to a greater level of loyalty, as well as enhanced visibility when current customers are happy enough to spread the word about their positive experiences with the firm. 

Finally, the source noted that personalization and the consistent integration of online and offline marketing efforts will further reshape the advertising arena, driven by big data's availability. 

More intelligence to come
When retailers take a comprehensive approach to customer intelligence strategies, marketing programs are far from being the only processes that can be improved. Rather, the types of information entering will often indicate which areas of the business are in need of improvement, as well as how the business can progress in such a way that most closely conforms to the demands of current and future clientele. 

by Retail Pro

The evolution of retail customer intelligence

Business intelligence solutions have been used by organizations for decades, but those that were common back in the day are not close to modern big data analytics tools that are hitting the market today. Because of the rapid and erratic explosion of data that has taken place in the past few years, companies have been seeking methods of turning unstructured and structured information into more actionable insights, and analytics serves as the best path forward in this regard. 

Now, it is worth noting that big data analytics and retail customer intelligence solutions have been rapidly evolving for years now, and there are no signs that innovation will begin to falter anytime soon. Rather, retailers will be tasked with keeping up with the best practices of customer relationship management – and the tools used to achieve goals – rather than falling behind the pack and putting themselves at risk of having poor retention and loyalty performances. 

What's to come?
Computerworld recently listed several predictions for CRM in 2015, affirming that studies are showing clear signs of growth in spending on predictive analytics in the next 12 months. Citing a study from Gartner, the source pointed out that predictive and prescriptive analytics will become more commonly used tools among decision-makers in a wealth of industries next year, and that intelligence solutions will further improve retention and client experiences for many companies. 

According to the news provider, another priority in the new year that has not always been a major point of contention is employee engagement, meaning that businesses will need to find ways to empower their staff and keep them productive using these modern CRM tools. When staff members are not engaged, it does not take long for the negative impacts to bleed into client relationships and customer retention, meaning that this decline must be avoided at all costs. 

Push it to the limit
Business leaders should recognize that modern CRM solutions are far more powerful than the iterations of the past, and can be used to improve a wide range of operational processes when properly implemented and managed. From analyzing the performances of various departments to better understanding the needs and desires of clientele, retailers can set themselves up for a financially advantageous year in 2015 through the use of advanced CRM solutions and intelligence tools. 

by Jennifer Bosavage

Clienteling Helps With All Those Returns

 

 

The holidays will soon be over — and with that comes all those returns.

Surely someone wants that luxurious mint green cashmere Armani sweater, violet Diane Von Furstenberg wrap dress or deep orange Prada bag, just not the first owner.

So back it comes.

As a retailer, you are trying to make way for Spring fashions, and as delightful as these items are, they are just not a fit for this time of year.

You need to move them, pronto.

However, mark downs can make items seem “cheap,” and, particularly in luxe goods, perception is everything.

How to get these products into appreciative hands?

Analyze your shopping data and you just might find some happy homes for these “misfit” goods.

The most loyal among your shoppers may be in store for some good deals if you can decipher which customers should be targeted for specific items.

By narrowing down the prime candidates, retailers can clear out merchandise in a way that is much more appealing than throwing it on a clearance table.

That is where clienteleing— the art of tailoring of a sales message to a particular customer or segment — excels.

Luxury shoppers in particular respond well to a personalized approach, as evidenced by the popularity of the “private shopper” at high-end retailers.

Retailers can start by analyzing their most loyal customers’ information.

What are their shopping habits, and what might entice them to come into the store?

Perhaps a promo code in an email or text message to these valued customers is in order.

Another idea is to compose an email with a personalized URL such as www.JensShoes/CustomerName.

Now you’ve created not just a multi-channel experience but a personalized one to boot. (Excuse the pun.)

Within the email should be some unique information directed at that particular customer.

For example, if a male shopper purchases a similar type item every year at the same time for his wife, the retailer can send him an email with some enticement for him to return.

Or, a phone call from the lead sales associate can work wonders.

Technology sometimes seems at odds with old-school ways; thinking of associates armed with tablets in a general store with its neighborly ways seemingly offers an anachronistic view of the retail experience.

But not really; by embracing technology, retailers can nurture an atmosphere of familiarity, one where everybody knows your name — and your shoe size.