Category Archives: Merchandising and Marketing

by Jennifer Bosavage

Luxury Brands Review Web Strategy

It looks like Burberry’s has been on-trend in more than just high-end fashion; the iconic brand was among the relative few that opted to keep online operations close to its vest, and, as a result, e-commerce accounts for roughly 10% of the retailer’s revenue. Now, competitors are taking notice.

Luxury brands LV MH and Hugo boss are looking to replicate Burberry’s success. According to Bloomberg Business:

In September, LVMH Chairman Bernard Arnault hired a senior executive from Apple Inc. to spearhead his company’s digital push, and earlier this year acquired a minority stake in Lyst, an aggregator of luxury e-commerce sites. Hugo Boss, meanwhile, is investing in technology to let clients order online and pick up their suits, ties and shoes from its outlets.

It’s a huge opportunity, populated with shoppers who are well appointed with smartphone, tablets and other mobile devices. Particular growth is expected, unsurprisingly, in the United States and China. And sales are increasingly being influenced by what customers are hearing and seeing online.

“Luxury shoppers are very digital, they are much more mobile digital than the rest of the population,” Nathalie Remy, partner at McKinsey & Company, Paris, told Luxury Dailey.

Highlighting that point, McKinsey said earlier this year that by 2018, global digital sales for women’s luxury fashion are expected to grow from a current 3 percent of the total market to 17 percent, for a total market size of $12 billion. With that amount of money in play, it makes sense for retailers to sell directly to customers rather than use the tradition route of selling through third-party sites. That’s partly why Fendi, a LVMH nameplate, built its own e-commerce site this year.

Still, many high end brands will still sell through third-party websites, just as they sell through department stores. It is easier to reach the (more wealthy) masses that way. Many will continue to offer their wares on multi brand sites, to satisfy shoppers who aren’t near urban boutiques. But the trend toward “build your own” is picking up speed and gaining traction.

That’s because there is a risk of over exposure for luxury brands when they are readily

High-end luxury items are seeing strong sales.

High-end luxury items are seeing strong sales.

available via multi-brand e-tailers. Brand cachet is extremely important to the identity of the luxury item and part of that is fed by a reputation for exclusivity. Understand what high-end customers want in their digital experiences, and recognizing how that’s different from mainstream consumers, it paramount. And they are different. According to McKinsey:

In contrast to other categories of online shopping, the price of online luxury apparel and accessories is not a big reason for consumers to go digital. Only 39 percent of luxury shoppers say they find less expensive products online and about half say they find better deals and sales online than in stores – both figures that deviate significantly from behavior in other categories like consumer electronics.

What these VIP customers are primarily looking for in their online experiences are excellent return policies and free shipping. And, McKinsey found, 60 percent of U.S. luxury consumers reported they would be more likely to buy at an online shop if it offered luxury brands that no one else sold online.

Which points back to the importance of the aforementioned in-house site: owned, operated and populated by the luxury brand solely. That is something that competitors know Burberry has in the bag.

by Jennifer Bosavage

Get Prepped: Consumers To Spend More This Holiday

It’s 80 days until Christmas — and those holiday displays are starting to edge out Halloween merchandise on the shelves.

Wait, Halloween hasn’t even happened yet, right?

Be that as it may — yes, we are still more than three weeks away from Halloween —

Many customers will wait until the last minute to complete their holiday shopping.

Many customers will wait until the last minute to complete their holiday shopping.

the smart money is on the 2015 Christmas shopping season being brighter than last year’s. According to the 2015 Holiday Purchase Intentions Survey from The NPD Group, consumers have a more positive outlook, and are looking to open up their wallets to family, friends and the needy. The mean spend for holiday shopping this year, according to NPD, is $619 — a 5 percent increase compared with what consumers said in 2014.

“Consumers are ready to spend for the holidays, more so than in recent years,” said Marshal Cohen, chief industry analyst, The NPD Group, in a statement. “However, manufacturers and retailers need to pay close attention to what is driving the consumer mindset, and deliver product that anticipates inevitable shifts in their thinking over the course of the season. Positive consumer perceptions combined with holiday promotions, could drive early impulse purchases, but the market has to deliver enticing product that consumers want and need in order to build on that momentum and keep them spending.”

Cohen makes a salient point: Retailers must be careful to offer promotions at the start of the season while not cannibalizing sales that might have come later. Many people browse early in the season and then wait until the last hours before the holiday to complete their shopping. Marketers face pulling off a tough balancing act of luring customers into the store in early November with bargains, and maintaining that enthusiasm profitably through the end of the year. Coupled that with the popular notion that there will be even better buys closer to Dec. 25 and the marketing department is in a quagmire: Damned if you discount too early, but double damned if they don’t and miss out on the increase in shopper traffic.

And don’t kid yourself, multi-channel competition is up. Brick and mortars are not only facing challenges from other traditional storefronts, but also from e-commerce retailers. And vice versa. That was true in the past but the pace is quickening. Don’t have a mobile app? You’re missing a sizable shopper segment. Have an app that offers little value and that’s possibly worse than not having one at all.

The mobile connection is important more than ever because a majority of consumers — almost two-thirds — said they will do pre-purchase research. Online research and consumer reviews are critical links for customers looking to stretch that $619 as far as possible. Don’t neglect cultivating honest reviews and including them on your site and make it easy to review a product or purchase through a mobile app. Consumers want quick, easy-to-access information, as well as real-life feedback on products from honest-to-goodness users rather than the stores selling them.

In the end, all the preparation will result in a solid brand presence log after the holidays. As Cohen noted:

“Just as the consumer mindset is one component to holiday success, the holiday season is one leg of the larger retail marathon – it’s not the finish line…Consumers are more complex, and marketers have more opportunities to reach them than ever before. Truly connecting with consumers requires interaction and omnipresence, emphasizing a complete experience that extends beyond channels, beyond traditional methods, and beyond the holiday season.”

by Jennifer Bosavage

Why Your Mobile App Is Going Nowhere

The typical retailer’s app is not all that compelling; lacking features and a discernable value proposition, such apps are typically downloaded and then deleted from a potential customer’s smartphone in relative nanoseconds.

At brick and mortar stores, the amount of time customer spends in the shop is called

There are a number of apps smartphone owners can download.

There are a number of apps smartphone owners can download, but few meet shoppers’ needs.

dwell time. For e-commerce operations, dwell time becoming a term that refers to the amount of time customer lingers within his or her phones application. Much to the chagrin of many retailers, many apps are deleted after being used only once — if at all. At that point, the retailer just has to face the fact that the customer is, “just not that into you.”

But, like forlorn teenaged friends from high school, the retailer wants to know, “But why? What have I done?” And, in fact, this time it is something you’ve done. Here’s what to know about such a picky par amour.

Remember, customers are extremely fussy about which retailer apps will be granted real estate space on their smartphones. A recent Forester survey shows that 60% of consumers who use a smartphone to shop online have fewer than two retailer-specific apps on their phone, and 21% don’t have any at all. The survey noted that, “apps that do not meet expectations are quickly removed or replaced.”

So, once you’ve gotten the picky “sweetheart” to download the app, it’s going to take work to make the relationship work. Apps need to offer a value proposition, much like text-based marketing does. Users are not going to be regular customers based on having an app only. Successful apps offer great content, are relevant and motivate the user to interact.

One way to achieve that is to send a rich pop up after the user has been on a page for a specific period of time directing them to an exclusive, personalized offer. Another is to send a thank you message to the rich inbox after registration, including an offer for an upcoming purchase.

As the holiday shopping season fast approaches, retailers should shore up their mobile app offerings. Apps that neglect the mobile economy are doomed to fail. Retail brands born in the Web era may need to rearchitect their digital strategy and launch an app that is optimized for the mobile experience.

And that app needs to not only speak to the needs of the customer, but also work reliably. If a shopper wants to check the inventory of a local store via the app and then discovers the product is sold out upon arrival, not only will their irritation be know throughout the social networking universe, but also through the app itself. Providing the ability to review a store or product through the app is necessary, but is a double-edged sword. In addition, the app store itself has become  a channel through which users share all types of brand experiences.

The best retail apps showcase dynamic experiences such as one tap to see the best deals, seamless switching across devices. In addition, content and alerts are pushed at the perfect moment. Such retail experiences are customer-centric, and come from customer-obsessed teams who understand what mobile users value.

Case in point: Taco Bell introduced iPhone ordering almost one year ago. Today, app-using customers are rewarded with the ability to skip lines, and Taco Bell has increased in-store revenue and received stronger app store star ratings.

Brands such as Taco Bell have used mobile apps to become technology forward. Some have boosted dwell time, others stressing time-saving conveniences — which may not increase dwell time, but may appeal to a larger number of customers. For those intent on delighting their customers, sales increase, user sentiment improves, more users are gained and greater loyalty is won.

And in the end, after a little introspection, you might find the customer is into you after all.

 

by ketv

Build a Workforce of Solid Brand Advocates

In the previous RPU newsletter, we looked at a number of ways to create a culture of continuous employee development. Employee training and education doesn’t have to happen in a traditional classroom for it to be valuable to your employees and to the company. In fact, some skills are better taught on the job or in an environment where employees don’t feel the pressure and anxiety they often associate with formal education.

Another effective way to encourage employees to move their education beyond the walls of your training room is to have them give a talk on an industry topic at conferences or workshops. This is especially effective for training sales associates in specialty retail. The Digital Age consumer comes to your store fully prepared. They’ve already researched your product features, compared them with your biggest competitors, and read all the customer reviews. When they approach your sales associate, they are expecting insider knowledge that they can’t get from the internet.

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Is your sales team prepared to give them what they’re looking for? The transient nature of retail creates a daunting chasm between customer expectations of your team’s product expertise and the reality. So how can you build a workforce of solid brand advocates with industry and product expertise? Implement the practice of employee-led industry training talks.

Nothing motivates an employee to master a topic than having to give a presentation to a group of people. Presenting on topics related to the work they already do gives employees a measure of confidence and at the same time fosters a deep understanding of current industry issues surrounding your retail strategy. In requiring presentations like this, you are developing a team of industry experts who can train their fellow employees to be effective brand advocates on the sales floor and at your company’s promotional events. In preparing for the presentation, your employees also develop strategies like outlining, organizing, teaching, and public speaking – soft skills that are critical for success on the job but which are only learned through experience.

Glassophobia Strikes 

In 1973, a market research firm called R.H. Bruskin Associates conducted a survey of over 2,500 adults in the United States, and found that the greatest fear for 40% of respondents was the fear of public speaking. Gallup conducted similar surveys in 1998 and 2001 with identical results – 40% of people feel anxiety over speaking in front of a group. Time and market researchers have tested and found again and again that this fear, called glassophobia, is most common in humanity, outpacing even the fear of death. It follows that more people would rather die than speak in front of an audience.

In many cases, all it takes to get over the fear of public speaking is a successful experience. Once you experience it, you realize that it wasn’t as bad you thought it would be, and we don’t have to go far to find a relevant example. I recently submitted a research project to the Association for Educational Communications and Technology, a professional association in my educational field. My paper on lecture capture policies was accepted and I was asked to present my findings at their 35th annual conference in Anaheim, CA. In addition to formal presentations and keynote addresses, the conference provides many opportunities for emerging scholars to present and receive constructive feedback on research in various degrees of completeness.

Although I had confidence in my knowledge of the topic, I had never given a presentation of this magnitude before. As the conference approached, I began to feel anxious and seriously considered backing out. I felt extremely vulnerable as I thought about the audience and their criticism. I imagined them picking apart and denouncing my work in public forum.

Finally, the big day came and I shuffled nervously toward the podium at the front of the. At first, I was a little shaky but as I began explaining the research, my interest in this subject took over and I soon forgot all about the potential critics in the audience. Before I knew it, my time was done. Afterward, a few people in the audience approached me and offered positive feedback. I was relieved. I realized that I had let my imagination take over and paint the worst possible scenario.

Lead Customers to a Sale with a Persuasive Brand Story 

In retail, your sales team may never have to present your product and brand philosophy to more than even five people at a time. But how many times have your employees lost a sale because they didn’t know how to answer your customer’s question, or unwittingly did so in a way that caused the shopper’s confidence to drop? How many of those instances could have been prevented, had your sales associate known how to look up the information through your Retail Pro retail management software?

Every instance of engagement between your sales associate and your customer is a mini-presentation on your brand story. Cultivating public speaking skills in your employees can go a long way in making them more persuasive as they lead your customers to a sale, and employers can take the following practical steps to help employees gain these skills.

 

3 Practical Ways to Build Employee Presentation Skills

 

Scaffold Shaky Speakers with a Presentation Partner

Not all of your employees will eagerly accept a request to give a product training presentation to the rest of your team. Some might require a little more hand-holding and preparation. That’s OK. The goal should not be to give a perfect, polished presentation, but rather to learn to skills associated with public speaking. You might consider pairing an anxious employee with a more seasoned associate in your company. Having someone else up there with them gives the inexperienced employee a feeling of safety in case something goes wrong.

Give Constructive Feedback to Help Employees Recognize Presenting Strengths and Weaknesses

Don’t forget to provide feedback after the presentation. We learn best through constructive criticism and positive reinforcement. Feedback doesn’t always have to be formal. Simply give an analysis of the presentation and some tips for how to improve the next time. Set a reasonable, attainable goal for your employee. For example, you can send them to a Retail Pro University product training course and ask them to prepare a training presentation on how to use the key features for your other employees, this time without a partner.

Take Public Speaking to the Next Level at Industry Events

While it may seem less intimidating to give a presentation for the employees in your department or company, a formal presentation at an industry conference like the Retail Pro Customer Summits provides an opportunity for a different caliber of presentation. Employees take it more seriously and take their skills to a new level. Remember: the company gains tremendous benefit from the added publicity and visibility that comes with having an industry expert on staff.

 

Through each of these ways you can develop a retail staff that knows the trending issues and can speak with authority and expertise on your brand. Don’t ever lose a customer to poor presentation skills again.

 

 

Interested in Retail Pro product training? Contact us at training@retailpro.com to learn more about our variety of standard and custom training solutions for your staff.

 

by Jennifer Bosavage

Avoiding the Creepy Factor In Hyperpersonalization

Is hyper-personalization creepy or cool? A recently released Accenture study, “Retail Hyperpersonalization, Creepy versus Cool,”  finds that the answer largely depends on which demographic you’re asking.

While customers appreciate personalization, many are concerned about their privacy.

While customers appreciate personalization, many are concerned about their privacy.

By and large, Millennials seem more into with retailers personalizing messaging. Boomers less so. For example, nearly three times more Millennials (17.2 percent) than Boomers (6.2 percent) think being reminded while shopping about needed items is “cool.” Also, 41 percent of Millennials say they’d welcome retailers stopping them from buying electronics that are not right or are outside their budgets.

Gender influences the perception of what constitutes acceptable personalization as well. Accenture reports that 34% of male respondents think receiving suggestions personalized to account for their families’ food preferences is “creepy.” However, 40% of female respondents consider that type of personalization “cool.”

Some forms of personalization are generally welcomed, though not universally. For example, these implementations are widely considered “cool”:

  • 82% enjoy discounts or loyalty coupons;
  • 59% welcome promotional offers based on items that the customer may be considering or lingering over;
  • 54% like receiving suggestions for items that complement merchandise that the customer is currently browsing.

Conversely, there are personalization efforts that customers find “creepy.”:

  • 36% of shoppers do not want to be greeted by name when walking into a store;
  • 42% don’t want recommendations based on their health issues;
  • 46% don’t want to be dissuaded from a purchase by a sales associate with preexisting knowledge about what the customer currently owns.

That leaves retailers with some specific rules of engagement:

First, they must keep the value proposition from the customer standpoint in mind. There needs to be significant value for shoppers in order for them to be motivated to engage.

Second, it’s important that the customer doesn’t feel overwhelmed. Too many messages or promotions can easily backfire for the retailer.

Third, retailers must be transparent about how any information gathered will be stored and used. Opt-in policies let customers play an active role in the process.

Fourth, retailers should have a system in place to capture and safeguard customer information. There should also be a plan in place detailing how a retailer’s information is to be used and how it will improve business.

Fifth, and finally, building trust is key to success; retailers must work at establishing and maintaining a bond. It’s difficult to establish, yet easily destroyed.

The Accenture study notes that there are three components for implementing a hyperpersonalization solution properly: make it expected, secure and data driven. Doing so provides a foundation for success that will drive profits as well as customer loyalty.

by Jennifer Bosavage

Are You Providing a Hyper-Relevant Experience for Shoppers?

Personalization is a hot topic in retail today, and retailers are paying close attention, rolling out beacon technology to track shoppers’ actions, focusing marketing materials to capture their attention and encouraging customer service training. But a recent study from Cisco Consulting Services finds that  today’s consumers are really seeking a hyper-relevant experience even more than a hyper-personalized

Technology has allowed consumers to reach out to brands at any time and from any place, and this has resulted in customers looking for more personalized interactions from retailers, as people want their patronage to be valued and appreciated.

Technology has allowed consumers to reach out to brands at any time and from any place, and this has resulted in customers looking for more personalized interactions from retailers, as people want their patronage to be valued and appreciated.

one.

That means that shoppers want to find what they came for and pay in a streamlined fashion. Some might want to be addressed by name, but it seems that’s not a deal breaker. What is important is getting the basics right consistently. For example, the Cisco study found 39 percent of respondents said that greater efficiency in the shopping process (e.g., ensuring items are in stock, speeding checkout times) as the top area retailers need to improve. Compare that with the 13 percent who said a more personalized shopping experience was the #1 concern.

Concentrating on efficiency has two benefits. One, retailers cut costs be eliminating waste and superfluous practices. And customers get the benefit of quicker, more responsive service. Customers end up happier, and, as a result, more loyal to those stores that make shopping easier. Retailers that build agile business processes to turn these insights into value can capture a profit improvement of 15.6 percent, according to Cisco Consulting Services.

Combining mobile technology with the in-store experience is no longer just for early adopters — it is mainstream. The next step is integrating mobile with the technology powering the Internet of things. IoT lets shoppers connect to retail in ways that makes their shopping experiences more enjoyable, and helps retailers create relevant customer experiences.

Shoppers typically want to engage a technology solution if there is a benefit for them attached. Those benefits might be in terms of cost, efficiency or engagement. To meet those needs, for example, a retailer might:

  • use digital signage to inform shoppers of a “flash” sale. The “smart sign” is notified by an IoT powered backend system about a stock situation. Preprogrammed parameters cause the promotion to launch, helping retailers clear out inventory, and can guide customers directly to the merchandise;
  • implement a buy-online-pickup-in-store solution that provides current inventory information to shoppers beginning their journey online, but opting to finish it in store;
  • provide interactive mirrors for trying on clothes, capturing the image and sharing on social media.

By investing in Internet of Things technologies, some retailers are attempting to engage consumers, attract them to stores, and attempt to cross-sell and up-sell. It’s yet another tool in a box that can never be too full.

 

by Jennifer Bosavage

Beacons Show the Way To Increased Loyalty

Beacons let retailers them to collect data that can be analyzed and put to work in the form of  personalized content that resonates with customers. The end goal? To encourage not only purchasing, but also store loyalty. A recent partnership between an advertising firm and a mobile technology company illustrates that increaing interest in using beacons to enhance the storefront and shopper relationship.

Retailers know how important offering excellent customer experiences is for their operations - by offering effective service and engaging patrons in a meaningful way, businesses are sure to see boosts in their retention and loyalty rates.

Retailers know how important offering excellent customer experiences is for their operations – by offering effective service and engaging patrons in a meaningful way, businesses are sure to see boosts in their retention and loyalty rates.

Freckle IoT, an ad tech company, has announced its partnership with Blue Bite, the Mobile Standard in Out-of-Home, which implements mobile technology for the retail industry. The relationship will aid in the deployment of 60,000 beacons nationwide. Connecting Freckle IoT’s open beacon ecosystem to Blue Bite’s location partnerships and mTAG platform helps advertisers launch innovative, integrated marketing campaigns that connect with consumers across digital, mobile and Out-of-Home environments with scale.

Retailers are leaders among industries adopting beacons, as they use  them to provide customers with product information, flash sales or deals, and to speed up the checkout process with contactless payment systems. Geo-location lets retailers send relevant information — such as discounts, special events and other promotions — directly to shoppers. That’s an effective means of competing against e-commerce outlets, which gather information every time someone visits the page, regardless of whether they purchase.

Beacons do require buy-in from the customer; customers must enable bluetooth and accept location services on their mobile devices, and opt-in to the retailer’s marketing program to receive in-store notifications. Those layers help to reduce customers’ concerns that their privacy is being invaded. User consent provides the foundation of all push-notification programs. And some applications don’t need specific information. For example, Apple, creator of iBeacons, has rolled out the technology in all of its U.S. stores, but doesn’t collect any specific user information about shoppers. For now, the company is simply using the sensors to show customers how beacon technology works.

Currently, less than 1% of the 3.5 million retail stores in the United States have rolled out beacon technology, according to Umbel, a business analytics company. That number is rapidly growing however, with household names including Macy’s, Lord & Taylor, Starwood Hotels, McDonald’s and Major League Baseball rolling out solutions.

The Freckle IoT partnership makes use of Blue Bite’s expertise in the area  of Out-of-Home mobile activations and takes advantage of the company’s extensive roster of location partners. Freckle IoT’s open beacon network connects the company’s rising number of application partners with its beacon ecosystem, addressing the challenge of scalability in proximity deployments.

As more retailers employ beacons, shoppers will find them in more unusual places — including transit, street furniture, airports, college campuses, movie theaters, bars and taxis — working to provide rich content through mobile or wearable devices and target in-app advertising on a hyper-local level. Brands can deliver innovative, contextually relevant messaging to engaged and interested consumers who want to be connected and be a part of an enhanced shopping experience.

by admin

It’s the one that everyone talks about

A chat with Retail Pro International, provider of the gold-standard retail management software, on trends, platforms and retail.

By Chris Petersen | Retail Merchandiser

Retail Pro Prism

Before the Internet, multichannel retailing was something known to only a handful of major national retailers, and the channels were limited to primarily brick and mortar and catalog sales. Today, however, consumers have more choices than ever when it comes to how they interact with their favorite retailers. The prevalence of m-commerce and e-commerce purchasing has become commonplace right along with stopping in at their favorite stores.  This new consumer landscape has created some significant challenges, as well as generated numerous new opportunities for retailers.

The new basis for retail interaction with today’s consumers spans all channels for the retailer including, brick-and-mortar stores, catalog sales, a website or even through their smartphones. A retailer is now challenged with providing the same user experience across all channels to provide a seamless experience regardless of where the consumer may be engaged. At the same time, as more retailers court international customers through their online presence, they are exposed to added complexity in terms of international tax structures and fulfillment. Navigating this complexity alone, especially in today’s omni-connected world can be daunting to say the least. Having a partner in the game like leading global provider of retail management software, Retail Pro International(RPI), can make the task much more palpable.

For more than 25 years, RPI has provided retail management software solutions and platforms which cover point of sale, customer engagement, store operations and back-of-store management, and e-commerce, through its Retail Pro® products.  In recent years, Retail Pro International has become an even more important partner to its retail customers as retail strategy complexities started growing in geometric progression. “As businesses evolve in response to market needs and rapidly changing consumer expectations it becomes critical for the retailer to evolve their business, break down operational silos and adapt; that’s where we come in,” said Director of Marketing for RPI, Alexandra Frith.

 

Flexible Solutions

The native adaptability in Retail Pro is the reason Retail Pro International’s software platforms are used in more than 54,000 retail stores in over 95 countries, and the company continues to evolve to address the expansion and needs of retailers as they grow their businesses. Frith says the Retail Pro software is a perfect fit for growing retailers. Whether a retailer is just starting out or has an operation that spans many regions, including expansions as franchises, Retail Pro can address the complex needs the retailer will encounter across their business models.

Director of Product Strategy at RPI, Kevin Connor, says retailers have traditionally been forced to maintain one software platform for each ‘channel’ of their business – one platform for point of sale, one for e-commerce sales, one for mobile sales, etc. The Retail Pro platform, on the other hand, gives the retailer a platform that can support each of the channels with one integrated product suite. Retail Pro offers platforms that are both environment-agnostic and hardware platform-agnostic, allowing one product to create a more efficient management experience for the retailers and a more pleasant and predictable shopping experience for customers.

Frith says another major component of RPI and its expansive Partner service network for their customers is helping them translate trends into actionable retail strategies. For example, she says, last year many of the company’s customers and prospects were abuzz with the idea of omnichannel retailing. The concept surfacing everywhere in the media was the new buzzword then, without much more information about the details. “We found ourselves in many conversations about this new trend. It was almost an exercise in quelling fear because everyone wanted to know that they had the capability, but only a hand-full of retailers knew how it related specifically to their business,” Frith says.

The idea of omnichannel was prevalent in the retail world but had many definitions. For some of its major customers, Retail Pro worked closely with them to develop a concise definition of what omnichannel meant for that retailer. Then taking this plan, they developed a software experience using the Retail Pro platform that erased the borders between channels to create a seamless experience for shoppers that also fit the retailer in the most effective way.

Connor says the company’s flexible approach to retail management software allows the retailer to have the system that serves the needs across all environments. Whether a retailer is enlisting endless-aisle kiosks or embracing mobility to serve the clienteling needs of their customer engagements, they can do so. This is made possible by the company’s commitment to delivering one holistic system that ties together all aspects of retail into one seamless platform.

 

Global Reach

The company’s international DNA serves as a perfect platform for business. Frith stresses the company’s international expertise, saying Retail Pro provides world-class solutions to its customers around the globe, enabling borderless retailing. “That proves to be a huge strength to any retailer who aspires to be international,” she says.

Further highlighting this point, Connor says the majority of domestic retail software is based on the local tax regulations, limiting their applications in other markets. Retail Pro International’s solutions can support all tax structures around the world, he says, making it possible for retailers using Retail Pro to maintain one system for all geographies. “Something that we pride ourselves on, is seeing ourselves as part of the global retail community,” Connor says.

 

Still Growing

The retail community is a unified community. Today, the concept of borderless retail speaks not only to retailing across geographic borders, but also to disappearing borders between online and brick-and-mortar.  Brands want consistency of presence across markets; customers want the completeness of the shopping experience across channels.  Both require ongoing effective innovation. In addition to optimizing experiences, effective innovation also encourages adopting more efficient operations and procedures, positioning retailers to add value in two directions at once by streamlining costs and improving customer loyalty simultaneously.

“What we found was that our retail customers are adapting business models, adding retail channels, acquiring other brands, and otherwise expanding aggressively throughout North America and beyond,” Frith adds.  “We see this evolution as a primary catalyst for retail growth, and brands willing to take leadership in this area will be the most competitive over time.”

 

Posted in the March/April 2015 issue of Retail Merchandiser magazine.

See the original post  here.

by Jennifer Bosavage

Millennials Look At Retail Differently

When we think of the evolution of retail we think mainly about the ways in which technology has impacted the segment: Payments are faster, inventories are managed more efficiently and there is a synergy between online and offline shopping. But the entire idea of shopping and purchasing is also being turned on its ear. The next generation of customer, the Millennial, is not sold on buying items that are generally thought of as standard purchases.

As millennials come of age, they're an increasingly important demographic for the retail industry.

As millennials come of age, they’re an increasingly important demographic for the retail industry.

Turns out that Millennials often choose not to take ownership of products. They do plenty of research, and, frustratingly, they tend to be shoppers rather than buyers, according to TIG. They are much more attracted to a service or rental economy. Think about the huge success of ride-share programs such as Uber.

But while its not unusual to rent a car or call a cab, some items and services don’t comfortably fall under the rental umbrella. Like clothing. Sure, for men, the renting of formal wear generally begins with the high school prom. Years late, a tuxedo may be purchased if the gentleman’s career necessitates, and there is no harm in wearing the same tux to multiple events. But for women, it’s a whole different ball game.

Career women faced with myriad black-tie events or socialites with filled dance cards, the rental option was not available. And then came Rent the Runway, offering 65,000 formal designer dresses, plus a wide selection of accessories for four-day rentals. The concept plays perfectly for value-conscious Millennials, who recognize brand name prestige but may not be able to or want to pay $800 for a dress they can rent for $100.

The RTR model is novel also because shoppers can use the service two ways, either completely online, or in store. Online, shoppers can order the same dress n two sizes, to ensure a proper fit, which is a great customer service benefit. Where the idea really shines is in its brick and mortar stores, however. For instance, at the Chicago store set to open April 30, dressing rooms have selfie mirrors and iPad minis. In terms of catering to its target audience, RTR’s got it going on.

The ability to share the experience with friends is critical to appealing to the Millennial customer. For many of them, “sharing” is as important as “having.” The sharing creates or enhances a relationship — and that is what is important to this shopper. Providing that extends an aura of goodwill over a brand, product or service. So retailers that help Millennials connect and build their communities will be the most successful in encouraging loyalty.

by Jennifer Bosavage

Luxe Retail Shows Off Its Omnichannel Chops

One of the biggest opportunities for personalized retail lies within the luxury market. Last Fall, for example, Neiman Marcus debuted “Snap. Find. Shop,” a 3-D visual fashion search and purchase feature, and made it available through its mobile app. The high-end retailer has been successful in leveraging its in-store success online; 21 percent of its revenue is derived from its e-commerce initiative.

It pays to be first with innovative technology; “Snap. Find. Shop” lets NM app users snap images of fashion items and instantly be provided with all close-matching products currently available at www.neimanmarcus.com. Being at the leading edge positions the company as forward thinking, and attracts the sought-after Millennial segment.

Other luxury retailers, such as Bloomingdales, Saks and Nordstrom’s, are also in the high-tech game. The benefit of providing apps that attract users is all that information they gather. By capturing orders and analyzing key information about the customer retailers are building loyalty and taking full advantage of their clienteling solutions. Clienteling incorporates many technological solutions that, in union, provide data that can be analyzed by retailers to provide customers a personalized, relevant shopping experience.

Omnichannel businesses are becoming the norm, and the most successful ones develop a consistent brand across all channels.

Omnichannel businesses are becoming the norm, and the most successful ones develop a consistent brand across all channels.

Barneys New York, for example, re-launched its e-commerce sites (Barneys, Barneys Warehouse and The Window) earlier this month, incorporating “responsive design”— an approach that optimizes e-commerce sites across a variety of devices. So shoppers will feel comfortable browsing via their smartphone, for example. Better presentation online means less scrolling and resizing images, which means customers are less likely to become frustrated and go to a competitor’s site.

The new sites provide an omnichannel view of the shopper to Barneys; they incorporate what a shopper has bought in store as well as on its sites. That provides a holistic view of a customer who might buy a Ball shock-resistant Engineer Hydrocarbon Spacemaster Orbital II watch for $6,000 in-store, but might not online. In addition, the three sites are more inter-related, particularly Barneys with its editorial site, The Window. That site offers content on all things fashion and fashionable — from what to pack for a spa vacation to A Day At The Farmers Market With Freds’ Executive Chef. The Barneys retail site provides the perfect tie-in for where to buy the items featured in The Window’s editorial. The company says that visitors to The Window site are 15 times more likely to shop at barneys.com than other visitors to the site, and they spend 40% more.

The interconnection of the Barneys sites illustrate the next step in omnichannel and providing that just-right customer experience, particularly for the luxury set. And the strategy’s resulting boost to the bottomline ensures that technology will continue to create innovative retail solutions.