Category Archives: Customer Engagement & Business Intelligence

by Retail Pro

Retailers turn to technology as global economy improves

Things are looking up for the global economy. Both the International Monetary Fund (IMF) and the United Nations anticipate that the next few years will bring growth. According to PricewaterhouseCoopers' (PwC​) 17th Annual Global CEO Survey, business leaders are optimistic about the coming year and plan to use retail technology to help bolster a period of expansion.

The survey found that despite worries about over-regulation and deficits, CEOs are more optimistic about the global economy and their business prospects than they were last year. This means that they can turn their attention toward growth and gaining a competitive edge, instead of fortifying a survival strategy.

Business leaders expect the U.S., German, U.K., and emerging markets to provide the greatest opportunities, the report said, rather than BRIC countries (Brazil, Russia, India and China) which were a focus in previous years. Their strategy for making the most of more positive economic conditions has a strong technological component – 81 percent of CEOs believe that technological advancements will play a strong role in their future success, Business Today indicated.

Business Standard reported that, according to a recent Tata Consultancy Services study, CIOs want to capitalize on the positive economic conditions with multichannel integration, ecommerce software and retail business intelligence. The source said that CIOs are planning to implement mobile strategies including payment and POS services.

by Retail Pro

Retail marketing meets customers where they’re at with location-sharing apps

Recent developments in retail technology are focused on shopper-centric marketing strategies. Retail customer intelligence helps businesses personalize ads and deals to individual consumers. One of the latest areas of exploration, called geofencing, uses customers' locations to send them retail information they can use immediately.

Geofencing works through mobile apps that identify a shopper's location and send him or her relevant messages. For example, Apple's new iBeacon protocol can help retailers engage customers on location. This means that consumers can receive deals and suggestions while they are in the store or shopping center, which can lead to more immediate responses.

Retailers can take advantage of this technology in a number of ways. The ABA Banking Journal described a scenario in which customers could receive information or coupons when they stop in front of a specific display, such as a shelf of Keurig products.

The application of this technology must be done in a non-threatening, non-invasive way to prevent customers from feeling bombarded by ads or violated by location tracking, the journal cautioned. Apps that allow shoppers to opt-in on services like coupons or suggestions can help. At the same time, consumers are beginning to feel more comfortable about having their location shared through apps. A recent Life360 survey revealed that nearly two thirds of smartphone users allow apps to share their location.

by Retail Pro

Preemptive shipping? Amazon takes retail business intelligence to the next level

In late December, Amazon patented a process for shipping products before shoppers buy them. The process, which the company calls "anticipatory package shipping," uses retail customer intelligence to streamline and expedite delivery services. 

The Wall Street Journal blog reported that by analyzing data about consumers' previous purchases, search history, wish lists, shopping carts, returns and cursor hover trends, Amazon believes it can discern customers' needs before they make a final decision. By adding this technology to its shipping drones and delivery lockers, Amazon makes one thing clear: To stay competitive, retailers need to find creative ways to take advantage of new technology, like Big Data analytics.

Although Amazon's idea is both patented and dependent on a large-scale operation, companies across all industries can use retail business intelligence to streamline their processes. For example, shoppers' online activity or in-store inquiries can be used to launch personalized marketing campaigns, and stores can identify items that consumers generally purchase together to organize their displays more effectively. 

At the same time, Amazon's efforts to get goods into consumers' hands faster could indicate the strength of omnichannel marketing, suggested Bob Hetu, research director at Gartner. Omnichannel stores have a home-field advantage when customers want instant gratification, he noted, and Amazon might feel pressured to compete with their combination of online and on-hand resources.

by Retail Pro

Retail technology can help alleviate post-holiday returns

If the holiday season holds retailers' sales dreams, the subsequent months hold their returns nightmares. A side effect of ecommerce growth has been an increasing number of returns, the BBC reported. However, retail technology can also help to reduce some of the stress for merchants.

According to the source, online sales often result in more returns than in-store purchases, since customers aren't able to try out items in advance. To help shoppers make more informed decisions, retailers have improved product descriptions and images, but analysts still estimate that between 25 percent and 50 percent of online purchases are returned, the source noted.

With inventory flowing out and in through multiple channels, retailers need integrated systems that can accurately track what they have in stock. RFID tags can help businesses better monitor individual items, and merchants can use retail management software to immediately update information across their systems, as industry leaders at the 2014 National Retail Federation (NRF) Convention explained.

Retail business intelligence can help companies transform returns data into an advantage. For example, customers who buy two sizes of the same shoe are more likely to return a pair, and merchants can use this data to better analyze their sales figures. Stein Mart explained at the NRF Convention that it uses business data to prevent fraudulent returns and reward customers who make returns less frequently.

by Retail Pro

Retailers have room for improvement in data management

Retail customer intelligence and other forms of data analysis can help businesses target their advertising strategies and optimize store operations. However, while Big Data is on the rise, many companies are struggling to make effective use of the information they have gathered. To achieve the greatest gains from retail data, merchants need to implement the right tools, processes and support.

Only four percent of businesses believe they are managing data effectively, a KMPG​ study revealed. Although nearly all companies think data and analytics is important to their business, the majority find it difficult to use the information to make strategic decisions, and many struggle to integrate data technology into their systems.

As they struggle to take advantage of the possibilities offered by retail business intelligence, American merchants are falling behind their European counterparts on predictive analytics. According to Computer World, U.S. retailers are using predictive analytics only for email, whereas European companies are finding additional applications for the data. However, European retailers could learn from U.S. companies in areas like customer data banks and multi-channel data integration, the source said.

In an effort to solve some of these deficiencies, businesses are expected to invest more in retail technology that assists with Big Data insights and real-time analytics, RIS News reported.

by Retail Pro

Email retail marketing breaks records in 2013

In addition to massive ecommerce sales, 2013 was a record-breaking year for email marketing in the retail industry. Compared to last year, email volume increased almost 13 percent, an Experian report revealed. When inboxes are flooded with emails, they often lose their effectiveness, but the data indicated that 2013 also saw more transactions and revenue from email marketing.

According to Custora, an analytics company, email conversions have quadrupled over the last four years. Part of the reason retail marketing seems to have found a new stride in email campaigns is the strategic use of retail customer intelligence and analytics. Retailers can present consumers with personalized ads and options based on their previous purchase history, search habits and other information. These ads are more useful to customers, and more likely to catch their eye as they skim through their inbox.

Twitter recently introduced options for advertisers to use email information for target audiences. Marketing Magazine reported that Twitter now allows retailers to target users with promoted tweets based on data derived from the customers' email accounts. Companies can create lists for Twitter campaigns by securely uploading their email lists, the source said. However, part of the reason email yields more results than social media is that customers voluntarily sign up, according to Forbes, so unsolicited Twitter contact might not be as well-received.

by Retail Pro

Gentle introduction of retail technology converts customers

Retail technology is continuously advancing, offering more opportunities for businesses and more convenience for customers. But some consumers are wary about adopting the latest trends and they could be alienated if companies change their systems too abruptly or aggressively. To capitalize on the benefits of retail technology, such as POS software or mobile payment systems, businesses should take a lesson from Starbucks: Introducing small, unthreatening options is the best way to get consumers on board.

How Starbucks became a leader in mobile payments
Even by 2011, Starbucks hit the 26 million transaction mark for mobile payments, Computer World reported. The coffee giant currently offers two apps: One that allows customers to pay with their Starbucks Card by tapping their phone, and another that pays through credit or debit accounts. This strategy for fueling customer adoption could help expand what USA Today noted is now a relatively small pool of tech-savvy mobile payers.

CIO magazine explained that Starbucks catalyzed its retail technology venture by starting with something simple and comfortable for customers: Good, old-fashioned Starbucks gift cards. The cards were an easy transition for customers used to paying by plastic, the source said, and Starbucks focused its holiday retail marketing on selling gift cards. Then, with millions of cards in the hands of coffee drinkers, Starbucks launched a campaign to promote its Starbucks Card app, encouraging consumers to put their gift card dollars into app accounts. After years of using a special Starbucks card to pay at the shop, CIO magazine suggested, customers were more comfortable using a special app to pay instead.

Slow and gentle is good general advice for retail technology
Starbucks' insight that easing people slowly into the sometimes intimidating frontier of technology is wise advice for the retail industry. No one likes to feel pressured to change to a new system, and an inviting approach gives customers the space to see how a new option is advantageous and convenient, without the negative experience of being forced to adapt.

To this end, retailers can incorporate some forms of technology while maintaining traditional options, at least at first. For example, a store switching to mobile point of sale might find customers more satisfied if they still have the choice to go to a traditional check out line. Over time, as customers become more comfortable with the new system, the store could switch over completely. 

by Retail Pro

Retail business intelligence helps cut costs and improve service

Information is power – and in the retail world, this means profits. As businesses adopt new retail technology to improve the customer experience and their retail marketing efforts, they can capitalize on the wealth of data collected by integrated systems. Retail business intelligence turns numbers into trends and actionable insights for merchants.

Companies that want to reduce waste and streamline processes can "go lean," Ian Newcombe suggested in Business2Community. By applying factory thinking to multi-channel store operations, he said, retailers can optimize their resources. For example, if a business identifies that employees often have to walk to opposite ends of the warehouse for the most frequently required items, it can rearrange the stock organization to increase efficiency. Improvements can also be aimed at consumer satisfaction, such as reducing clicks for online purchases or identifying customer trends.

But how can retailers identify these inefficiencies? That's where business intelligence comes in. With retail management software, companies can run reports on their operations. Resources like Retail Pro Business Intelligence can send custom notifications to decision makers in the company. Wildlife Trading Company, which implemented the technology to manage a multi-store operation, uses the interactive reports and trend notifications to make more profitable decisions.

by Retail Pro

Brand consistency enhances omnichannel strategies

Omnichannel businesses are becoming the norm, and the most successful ones develop a consistent brand across all channels. Several retail industry studies indicated that brand consistency (like pricing) influences consumer decisions, with customers spending more at companies that are more consistent.

When channels are integrated, shoppers can start browsing on one channel and make a purchase on another, while having a seamless shopping experience. Differences between the floor and the website, such as how products are categorized, are inconveniences that could push shoppers to look somewhere else.

"Retailers are seeing themselves as one brand instead of a collection of [shopping] channels," Keith Mercier, an associate partner at IBM's Retail Center of Competence, told The Wall Street Journal Market Watch. 

With this perspective, companies seek to integrate their online and in-store retail inventory management systems and POS software, which can help businesses make better stock and sales decisions and improve the customer experience. According to The Guardian, customers expect reliability and consistency, but a survey found half of consumers dissatisfied with how brands presented themselves across channels. 

Integrated ecommerce software and retail management software can help build a comprehensive omnichannel system. The key for retailers is to take advantage of technology and retail customer intelligence to craft a reliable brand that addresses customers' priorities.

by Retail Pro

Retail technology empowers store associates

Retail customer trends indicate the advantages offered by new retail technology, both on the Web and in stores. At the National Retail Federation (NRF) Convention, which took place Jan. 12-15 in New York City, industry leaders gathered to preview innovative retail solutions and discuss ways to optimize their business strategies. According to 1to1 Media, one of the emerging trends is how retailers can use new technology to empower employees.

Even as ecommerce becomes more popular, consumers view brick-and-mortar locations as valuable shopping centers. Personal relationships are a key component of successful retail marketing, and interactive experiences draw in customers who want to try before they buy. Retail technology, such as integrated retail management software, can help stores capitalize on the benefits of their physical presence. 

With the help of retail customer intelligence, store clerks can offer personalized advice or assistance to customers, 1to1 Media explained. Streamlined point of sale processes also help employees focus on personal connections with shoppers, instead of staying behind the counter or keeping their eyes on complicated check-out systems. For example, Retail Pro Prism, which was featured at the conference, provides store clerks with information and mobility. As reported in the Convention newsletter, retail experts agreed that customer engagement, including relationships with employees, is key to business success.