It’s (Still) All About the Data

 

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This January, NRF’s Big Show hosted 35,000 attendees, 510+ exhibitors and 300+ speakers. And though there was talk of innovation and continued discussion about personalization, many of the conversations centered around data: how to gather it, how to use it, and how to protect it.

Brian Krzanich, CEO of Intel, talked about retail transformation, during a morning keynote. Strategic gathering of data and implementation based on that information lets retailers gain insight and predictive abilities that are new and exciting. The result is a store that can provide customers more control over product selection, special promotions, etc., while the retailer receives more data. The better the data, the more responsive a retailer can be to customers’ desires. And the most responsive retailers will be rewarded not only with more sales, but with a loyal customer base.

Virtual reality — once limited to video games — is becoming a force in retailing, Krzanich said, explaining that VR solutions can play a big role in understanding customer movements within a store, as well as predicting where they’ll go next. Intel demonstrated the use of virtual reality for store configuration and planograms in addition to shopping in a virtual version of the customer’s own home.

“You can see how in your store, your customer can have a very different experience, and you’re going to get data about what they are looking at,” Krzanich said. “What styles they like. What colors they’re looking for. What’s interesting to them. What they put into their shopping cart but then take out at the end of the day and don’t purchase. All of that data is available.”

And it’s valuable. A study by MyBuys  found that 40 percent of survey participants said they buy more from retailers that personalize their shopping experience across channels. Of course, collecting “big data,” and then using business analytics to distill it is not new. But the ways in which information is being gathered — e.g. the aforementioned virtual reality — is.

“With as many tech options as are out there to help retailers address various customer-facing elements of retail strategy, enterprise retail on the backend now has to deal with security concerns, with the increased complexity of managing all those technologies, with integrating all the data, getting maximum use out of them, etc,” noted Alexandra Firth, director of marketing, of Retail Pro.

Retail Pro provides software solutions for retailers globally, and is acutely aware of the need to provide security around all that data. Information security products and hiring consultants can be expensive, and the retailers most prone to getting hacked — small to midsize businesses — are also the ones least able to afford the investment. A few tips for SMBs:

  • Conduct a security audit. Learn where the gaps in coverage are and then hire a consultant to focus on those specific areas.
  • Train employees about the risks of phishing and viruses.
  • Determine which data is most important and then protect it. Not all information is vitally important to protect.

It’s a perfect time to focus on strengthening security, Firth added, because 2017 is shaping up to be a back-to-basics year. “Retailers are focusing on internal, structural evolution, evolving their process and procedures,” she said. “They are simplifying, streamlining — and making themselves more efficient. Simply put, they are optimizing their operations.”

NRF 2017: In-Store Personalization and Better Store Fulfillment

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In-store personalization has been slow in coming, but at this year’s NRF Big Show, vendors showcased technology that indicated the tide may be turning. And why not? Retailers are well aware that the ability to create a personalized experience for every customer could methodically lead shoppers to the point of purchase.

However, while retailers have embraced personalization techniques online, that success has not provided the impetus for similar in-store implementations. The benefits personalization offers e-commerce are known and envied by their brick and mortar counterparts. But there are myriad types of personalization – navigational and predictive, for example. Personalization can be based on third-party data, database segmentation, past purchase history, location and more. It’s complicated to start on the path to personalized selling and it doesn’t get easier.

That may change shortly, as the costs of the technology have decreased, third-party integrators are more fluent with the necessary equipment and software, and the benefits are becoming more evident. Shoppers, too, expect a unified commerce, tech-driven experience in which in-store mirrors online, and vice versa. Vendors are more motivated than ever to provide retailers with tools that will help them reflect the online experience inside a physical store. In addition, increasingly, those tools are easier to use and to integrate with existing systems.

One of the big challenges for retailers is determining how to make in-store personalization attractive to shoppers; some customers see the technology as overly intrusive. In its second annual “Creepy or Cool’ survey, RichRelevance found customers embraced personalization when it suited their needs.

“For the second year in the row, the study finds that shoppers think it is cool to get digital help finding relevant products and information – on their own terms when they choose to engage,” said Diane Kegley, CMO of RichRelevance. “However, they are creeped out by digital capabilities that identify and track without a clear value offered in return.”

However, it’s difficult for retailers to understand exactly what shoppers’ expectations are at any given time because they are shifting and evolving. To address that, part of the focus of this year’s NRF was the underscoring of the need for retailers to get back to basics and to develop scalable, repeatable and reliable processes that support their enterprise order management capabilities. A solid foundation built on those principles is likely to be more responsive to constantly changing – and expanding – shopper expectations.

Much of the ordering technology that is currently available to retailers is focused on the flow of product from one channel to the next. Understanding and pleasing the customer, unfortunately, has until now been simply the result of having solid ordering technology. The customer experience is largely an afterthought.

Many of the vendors at NRF believe that consideration of customer satisfaction and their preferences will move to the forefront this year. While order systems must be accurate and efficient as well as cost-effective, those characteristics are no longer a differentiator in retail. Instead, they are a requirement. What will distinguish the great retailers are those that can receive orders and provide internal inventory visibility across all sales channels as well as track customer satisfaction with store fulfillment.

Although efficiency and process are obviously important to retailers, personalization offers the potential of increased sales as well as customer loyalty. People enjoy patronizing businesses that know their tastes and provide that personal touch. In addition, retailers can further improve the customer experience by providing insight into inventory and delivery, which in turn helps the customer feel empowered. As retailers continue to blend the right mix of product, service and ordering flexibility, they encourage a sense of empowerment that enhances the customer experience.

New year, new retail! 5 ways to use mobile in your stores

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Each new year comes with new excitement, new potential, new initiatives – like mobile in your stores!

Start 2017 off right – see how one fashion retailer uses mobile in their stores. Then, book your NRF meeting to talk with us in person about how Retail Pro can help you go mobile!

Book my NRF meeting now

 

How to Build Your Tech Strategy

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Technology empowers efficiency in your retail operations, so building a solid tech strategy is critical to effective execution.

See how Earthbound Trading Co is increasing operational efficiency by building their tech strategy with Retail Pro.

Then – book your NRF meeting to talk with us in person about how Retail Pro can help you optimize your retail tech strategy.

Book my NRF meeting now

 

 

How to Unify Commerce

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Last week we invited you to meet with us at NRF to discover optimized retail with Retail Pro.

Let’s count down the final weeks before NRF with tips on HOW to optimize your retail operations, in step with market trends and proven strategies of retailers using Retail Pro.

Then – book your NRF meeting to talk with us in person about how Retail Pro can help you optimize and unify your commerce profitably.

Book my NRF meeting now

 

3 Tips for Using Your Retail Data to Attract More Customers

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For retailers, much of the work that goes into making a sale is done before your customer ever sets foot in your store. Here are 3 tips for using your retail data to attract more customers.

 

1. Use outbound marketing as a targeted follow-up to inbound marketing.

Fresh, high-quality content is available to sales prospects 24/7. Whether it’s on the web, in stores, or via email, information is out there, waiting to be consumed by eager customers. Savvy retailers are using their content assets to attract customers, and it’s working: Interesting, relevant material attracts leads to a business’ site, social media presence and/or store. That content must position your company as a market leader. Valuable content that informs the customer is key. The more specific your content, the more focused you can be.

2. Collect data on your customer.

To really provide such highly focused, relevant content, you must understand customers’ interests and tastes, as well as their demographic information. Only then can you tailor both your content, which attracts customers, and the message, which will be used to close the sale. Outbound marketing only succeeds when it reaches the appropriate audience. Personalized campaigns can go a long way when you are courting a customer. Let the data you gather help inform the way you engage with customers.

3. Use predictive analytics.

Look back and use past performance to gauge future sales. Predictive analytics examines a variety of data and then systematically offers the makeup of the best leads. Big data crunching can help find those sweet spots invisible to the naked eye. In addition, sales teams knowledgeable in the science of data analytics can gain insight into purchasing triggers. Paying attention to small triggers can get your retail marketing campaigns out ahead of the competition’s.

 

 

 

Battery Life Important for mPOS Success at Holiday Time

 

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Mobile POS systems are becoming increasingly important to many retailers.

With the Christmas season just about officially starting, retailers are readying the last few tools needed to make point of sale transactions as efficient as possible. One area in need of improvement is the battery life of mobile POS devices.

Often used for “linebusting,” mPOS is a great way to ensure customers have a smooth, expedited checkout experience. It’s also a terrific means of engagement with customers on the sales floor. Many retailers have transformed the customer experience by integrating mPOS into the checkout.

But the batteries used in the tablet devices are notorious for having short lives.

Retailers with extended sale hours, for example, would need to have mobile battery packs on hand to keep devices functioning, even if it they were fully charged when doors opened. Few things are more frustrating than missing out on sales because there is no way to authorize transactions.

Larger retailers and those handling greater numbers of transactions – holiday rush, anyone? — are seeking longer battery life to reduce the need to recharge. That way, store staff can transact sales continuously for an entire shift, reducing overall recharging requirements as well as the number of devices retailers need to keep on hand.

Overall, battery life in consumer electronics is constantly being upgraded. Today, for example, laptop battery life is roughly two and a half times longer than it was in 2012. So it’s logical to assume that mPOS battery life will ultimately improve as well.

To that end, manufacturers are debuting new products that have batteries that can be swapped out easily for rapid replacement, along with docking stations that can be used to simultaneously charge not only mPOS devices but also the accompanying mobile or tablet devices.

Other improvements are on the horizon as well: Often, mass market devices are not durable enough to withstand the hazards of the sales floor. Spills and drops leave many merchants with broken devices, and software or connectivity malfunctions are sources of further frustration. Many retail merchants are therefore migrating from popular commercial hardware to more purpose-built retail solutions. Ruggedized solutions (from Panasonic, for example) are becoming popular also.

Implementing tools that can reduce line time and improve the customers’ interaction with sales associates is, of course, a move in a positive direction. Retailers need to be aware of potential pitfalls brought on by poor battery life and be ready to quickly circumvent any problems that arise.

Ironically, new technology that fails can irritate customers more than the previous “old system.” So, until improved battery life is commonly available on mPOS devices, make sure your equipment is fully charged, and you have spare battery packs or devices on hand.

3 Tips to Improve Your Loyalty Program

 

What every woman wishes retailers knew

If your loyalty program is lacking luster, it’s likely time for an overhaul or at least a close inspection.

So, you have a loyalty program, but:

  • It’s not attracting new members
  • Its members are not as active as you’d like
  • No one knows about it

Your program is dying on the vine, and it’s top management’s fault. If it’s not top of mind for managers, it won’t be for anyone else, certainly not customers.

Successful loyalty programs are big. Sure, they have plenty of members, but they are vibrant and enticing to customers. Here are three ways to improve your program:

Devote Time To It

Cultivating customer loyalty is a strategy. Retaining existing customers is less expensive than finding new ones, so it’s worth investing the time and effort into making them feel special.

Define specific goals for the program: Do you want to increase memberships? Boost members’ sales? Only then can you forge a roadmap to make those goals a reality.

Improve Your Customer Service

No one wants to be loyal to a place that doesn’t treat them well.

If your customer service isn’t top notch, ask yourself, “Why would anyone return?” Terrific service lays the groundwork for customer loyalty.

73% of consumers say friendly customer service reps can make them fall in love with a brand, according to RightNow.

Furthermore, providing a superior experience not only helps to retain that customer but also to grow your base, because consumers with positive experiences tend to recommend the brand to others.

Go Big

Let’s face it: The value proposition must be extremely compelling.

Many of your competitors have loyalty programs. And if they don’t, they might just be offering something you can’t: Lower pricing, free shipping, certain brands, etc.

Grab Stats notes that the average U.S. household belongs to more than 18 programs, but is active in only 8.4. Therefore, your loyalty program must stand out and offer something irresistible.

Sephora members, for example, earn points with each purchase that they can redeem for rewards. The program is tiered depending on the dollar value of customers’ annual purchases. Spending more is an incentive to get free products as well as entry into exclusive events.

What differentiates a great loyalty program from others is that customers are eager – excited, even – to join a program that meets their needs.

The day someone asks an associate to join your program without being coaxed is the day you know you’ve hit on a winning formula.

But customers’ tastes change. So enjoy the winning formula while you can – and keep innovating.

 

 

 

POS App Gets It Right

 

Customers want easy ways to shop for routine items – those products they use daily, that are staples of their homes or workplaces.

For these types of purchases, ease of doing business is extremely important. No one wants to stand in line for a bottle of shampoo after a long day of work and an evening of household chores ahead.

Being respectful of customers’ time is a big part of creating great shopping experiences for customers.

While an exciting store design and atmosphere can lure customers, execution excellence – clerks who are quick to respond, cashiers who are fast and accurate, associates who will efficiently check stock —  provides the foundation for any responsive business.

A familiar neighborhood  retail recently launched a point-of-sale mobile solution aimed at creating a more convenient customer experience.

CVS Health’s core competency is in personal staples: everything from toothpaste to stationary to prescription meds. But its new app illustrates how selling any product, whether it’s luxury or commodity, can put customer needs front and center.

CVS Health

CVS Pay is a new, end-to-end mobile payment solution that integrates payment, prescription pickup, and its ExtraCare loyalty program, and is part of the CVS Pharmacy mobile app.

Here’s how it works:

  • CVS customers can combine multiple steps into one scan.
  • Customers can refill, manage multiple prescriptions and get alerts when prescriptions are ready, all within the app.
  • They then pick up and pay using a single barcode.
  • Their ExtraCare card can be linked as well, so at checkout all ExtraCare deals will be processed.

“We’ve been excited by the level of customer adoption of these digital solutions, and we will continue our quick pace of innovation and deployment to make our customers’ health care experience even easier,” said Brian Tilzer, SVP and chief digital officer, CVS Health in a press release.

When an app eases a shopping pain point, it will be a success.

Too often, retail apps feel like an “add on” — something more for the consumer to do, without an evident value proposition for the consumer. CVS Pay is integrated into the customers’ shopping experience, which makes it a natural fit rather than an appendage.