This entry was posted by Ulyana Avetisov on Sunday, January 17th, 2016 at 7:32 am .

The Internet of Things (IoT) is generating much buzz in consumer circles – but is it a reality for retailers today? At its core, the IoT is a network of connected devices sharing data to increase efficiency. This includes optimizing and automating (where possible) your decision making, workflows, queues, staffing, and inventory management processes – as the means for increasing conversion in your retail stores.

IoT is within reach for retailers but requires a proper technological foundation. Three key components to your connected strategy include a converged platform, business intelligence, and smart devices.

Converged Platform

The base for IoT is a converged platform like Retail Pro® retail management software. It connects the data from all your devices and retail tools – like mPOS, eCommerce, integrations to Amazon and other digital marketplaces, shipping tools, loyalty applications, etc. – in one platform. A converged platform allows information-sharing between devices, giving you a complete picture of customer and operational activity across channels and enabling process automation.

Business Intelligence

Once you have a converged platform that unifies all your data, you will need business intelligence software to help you make sense of the data chaos you will generate from your connected devices. Having a plan for data analysis is critical, as “90% of the data generated by smart-connected devices is never analyzed or used for anything, and 60% of it begins to lose value just milliseconds after it is generated,” according to IBM.

Devices are not inherently smart and data is not inherently useful – it still takes the human mind coupled with business intelligence software to direct device placement in your stores and to drive operations optimization and conversion.

Smart Devices

The IoT devices you select for your strategy will depend on what you want to accomplish for your stores. Here are 3 basics used in retail today:

RFID for inventory accuracy and customer engagement in-stores: American Apparel uses item-level RFID for inventory management with Retail Pro, running daily reports to see what’s trending, what’s missing and in-stock, and which stores are struggling or need to cycle count. Complete visibility into their inventory enables greater efficiency and ensures products are available when and where they are wanted.

Burberry implemented RFID tags to take the customer experience to the next level: the tags activate smart mirrors in the changing room to run video footage of the clothing item’s creation and debut on the runway. This kind of engagement draws customers into the story behind each piece and forges a stronger connection with the brand.

Beacons for personalized marketing: Brands like Hamleys, Armani, Longchamp, and Hackett leverage beacons in their Regent Street stores in London to personalize their mobile marketing strategies. The beacons target passersby who have opted in for messaging through the Regent Street App and drop timely, relevant communications about discounts, in-store promotions, and exclusive events and products directly to shoppers’ smartphones.

Now there is also Google’s Eddystone – beacons which open URLs in a web browser instead of apps. This can decrease commitment levels required of consumers (as with downloading an app), thereby increasing the potential pool of shoppers willing to receive these personalized marketing messages.

Vendor drop ship for fulfillment efficiency: Massey’s Outfitters integrated a vendor dropship and eCommerce application to the inventory in their Retail Pro platform. This seamless connection allows them to rebalance goods between stores for a leaner inventory and fulfill orders directly from vendors when goods are not available in stores.

With a strong technological foundation built on the Retail Pro platform, you too can reap the benefits of IoT today.

This entry was posted by Alexandra Frith on Thursday, January 7th, 2016 at 10:17 am .

For the wealthiest Americans, 2016 is coming up roses.

According to a recent report from the American Affluence Research Center, the top 10 percent of U.S. citizens have a positive outlook regarding their personal net worth and income. Two million households with a minimum $1 million net worth took part in the study. This group of affluent people account for roughly 40% of total consumer spending.

High-end luxury items are seeing strong sales.

Nearly half (46%) of the participants have some large purchases in mind, such as new auto, a cruise, a home remodeling project, and a primary or vacation home. However, 32% of the affluent responded that they plan to defer or reduce expenditures during the next 12 months — an all-time low for the metric.

Affluent households were forecast by the National Retail Federation to spend $33 billion for December holiday gifts or an average of $2,773, which is approximately four times that of all households. But, while a merry Christmas may have been had by the uppercrust or top 10 percent, the air is about to become even more rarified. As the stock market continues to be volatile and threats of terrorism plague tourist locations, the top one percent of consumers will likely be the sweetest spot for retailers.

That’s because the “one percenters” are least likely to be influenced by any of the ripples that would make most mortals quake in fear: Job loss, Wall Street fluctuations — those are largely inconsequential to this shopper breed. But what it does have in common with the general population is a sense of the type of retail experience they want. They are looking for shopping to be easy, convenient, efficient and tailored to make them feel unique. Easy, yes, but not without style.

The super rich seek a meaningful and personalized the shopping experience. Retailers aiming to serve the niche should not only have well trained staff on hand, but also technology tools that will help them to impress their clients. For example, mobile devices for every associate is a start, but how does that help the customer looking to buy a Rolex? The goal should be to gather all the customer data that is collected in real time, analyze it and then provide pertinent suggestions and promotions based on customer context.

It’s a tough row to hoe: High-end clients may think they want the ease of an Amazon, but they often want far more attention, especially if the purchase is pricey or complex. By using data including past purchases and online browsing history, retailers can glean insights to customers shopping behavior that makes the shopping experience relevant.

Of course, interpersonal relationships will still be crucial for sealing the deal. How better to accomplish that task than through technology? Customer relationship management software and data analysis can help associates learn about customers’ tastes and build relationships. Purchases can be tracked and information used to offer tailored loyalty rewards. Ironically, an associate that uses technology to glean customer information can make the personal touch even more meaningful. And offering personal service, custom-fit for every shopper, is the key to enriching and improving revenue in the affluent shopper segment.

This entry was posted by Jennifer Bosavage on Tuesday, January 5th, 2016 at 6:46 am .

As we are in the last hours of 2015, it seems like an ideal time to reflect on three technologies that made a large impact on retailers this year, and that are poised to make a “huge”— to use a word commonly used by one certain presidential candidate — impact in 2016. Retailers looking to increase visibility as well as revenue should consider these implementations.

1. Beacons and geofencing
Beacons give retailers visibility over foot traffic, in addition to the ability to push relevant information to consumers’ smartphones.

Geofencing lets retailers promote products when shoppers enter a specific, predetermined area. It’s not difficult to see how these technologies can complement each other and drive quality customers through the door. However, geofencing works best when used in combination with beacon technology, and can provide a more complete view of customer behavior. Retailers are beginning to see the potential; according to luxurydaily.com, investment in geofencing will reach $300 million by 2017. The challenge for retailers is to get customers to enable location services and bluetooth on their smartphones. Such services use battery power and, to some, bring up privacy issues. Given the proper incentives by retailers, much of that resistance can be overcome.

2.  RFID
Yes, this technology has been around–and around. But it’s time to shine has finally arrived. Juniper Research recently reported

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

that Internet of things (IoT) technologies will be implemented by far more retailers in 2016; the firm expects merchants will spend an estimated $2.5 billion in hardware and installation costs, nearly a fourfold increase over this year’s estimated $670 million spend. And RFID is a part of that investment. RFID helps retailers with in real-time asset tracking, reduced labour costs and even dynamic pricing according to stock levels and online pricing. Software applications are catching up to what this veteran technology can offer. Linking the potential capabilities of RFID tags with beacons and geofencing promises more thorough business insight and an improved customer experience.

3. BOPIS: Buy online, pick up in store
Shoppers are looking for ways to streamline their lives, just like retailers want to make their operations more efficient. By facilitating “strategic strikes” — shopping trips that are meant for specific items, in which the customer is a buyer, not a shopper — retailers cultivate goodwill. A customer who knows a trip for a specific green sweater will be met with success and will require minimal waiting on a checkout line is likely to return. Look for BOPIS to evolve to include curbside pickup. Target and Kroger recently rolled out curbside pickup services in some locations, while Sears has expanded its in-vehicle curb services to include returns and exchanges. Curbside services acknowledge that the customer is patronizing the store for a specific reason and does not want to go inside. Rather than fight that fact and risk antagonizing customers with offers to “come inside for…” smart retailers are accommodating the desire to pick up merchandise and leave. They recognize that they’ll be back again, either for a quick trip or an extended visit. Either way, a sale is a sale.

This entry was posted by Jennifer Bosavage on Thursday, December 31st, 2015 at 8:36 am .

Half the battle for success in retail is getting the customer in the door or on the website, followed by the challenge of closing the sale. According to MyBuys research, highlighted in Personalization Comes of Age, 75 percent of shoppers would buy from a merchant if they received a discounted price on the merchandise. In addition, roughly the same number would buy online if a special offer including free shipping was provided.

Seems obvious that customers want to hear from retailers with pertinent information. In other words, they want to know more

As merchants streamline their multichannel store operations and focus on enhancing the customer experience, many shoppers are choosing to return to stores to make their purchases.

about products and services in which they’ve expressed prior interest.  Busy people appreciate a quick reminder about products left in shopping carts — or even about those they may have been researching — especially if a purchasing incentive comes with that reminder. Discounts or other benefits, coupled with personalized messaging and recommendations can provide customers information that will help them determine that the products they’re considering are just right. A substantial number, 70%, of shoppers want recommendations on retailers’ web sites: It’s always nice to corroborate a potential purchase.

That feeling of purchase satisfaction can’t be underestimated. The MyBuys research found that few shoppers (27%) buy when they perceive they are “settling” for a product. It’s not enough for them to purchase something “just like” the one that’s desired. “Close enough” just doesn’t cut it. Therefore, to achieve true customer satisfaction, it’s crucial for retailers to supply messaging that not only corroborates the purchaser’s decision, but also makes it an undeniable value.

Of course, the retailer must be conscious of not overstepping boundaries, which may not always be intuitive. For example, while MyBuys reported that 39% want to receive personalized messages on social media, such as in a Facebook stream, they may not want to be greeted in-store with the same message. It’s one thing to be wished “Happy Birthday!” in an innocuous post from a retailer on Facebook, but another, more unsettling, experience to be told that by a store associate who is a stranger. However, couple that social media greeting with a “get 10% off on your special day by mentioning this Facebook message,” and the retailer will likely be rolling out the welcome mat that day.

Proximity marketing, enabled by beacons and bluetooth technology, are also excellent ways of drawing in customers. New data from Juniper Research found that retailers will spend an estimated $2.5 billion in hardware and installation cost of such Internet of Things technology by 2018. MyBuys found that 39% of those surveyed welcome mobile advertising, such as proximity marketing, and that number is likely to grow as installations increase.

Retailers will look to beacons and beyond in 2016, and continue to invest in data science and analytics to better serve customers both in-store and online.

This entry was posted by Jennifer Bosavage on Thursday, December 31st, 2015 at 7:31 am .

Consumers are accustomed to seeing large display screens in retail stores, but those screens are rapidly evolving to not only provide supplemental information on products but also to predict what products a particular shopper might want to buy.

In North America, retailers are taking advantage of the benefits of Internet of Things technology by implementing solutions that help them monitor and interpret their shoppers’ behavior. In-store contextual marketing is gaining popularity as retailers aim to capture continuous, real-time streams of data. That information comes from mobile devices, online customer activity, in-store Wi-Fi routers/beacons as well as video cameras. Acting on the intelligence that information provides can result in an omnichannel experience for customers in which e-commerce and traditional retailers are interested.

Store displays highlight retailers’ products.

Digital signage initially was a one-way street: Stores pushed out information on merchandise to all shoppers. Today’s technology lets retailers be far more discriminating: Content can be tailored and can change depending on the customer viewing the display. The display itself can be equipped with sensors that can detect the height or even facial characteristics of a passerby, and deliver customized information. Such real-time adaptation can maximize a retailer’s potential profit.

According to the International Data Corp., the use of digital signage in retail outlets will increase to $27.5 billion in 2018 from $6 billion in 2013. That’s a 35.7 percent five-year compound annual growth rate. And it underscores the important role digital screens can play in the customer experience.

No longer are screens glorified televisions, relegated to keeping customers entertained while standing on checkout lines. Today’s screens can be programmed with content selected and even created by the retailer. Grocers wanting to beef up sales of steak can program content showing barbecue recipes. But even more than that, beacon technology can be integrated into an IoT signage system, providing retailers the means of offering customers discounts and product information that can be displayed. Signage can even tell what areas are “hot” in a particular store and through the use of heat-mapping technology, can upsell items based on those identified high-traffic areas.

In addition, signage is becoming more interactive. Touchscreen navigation can provide customers with relevant and personalized content, the ability to check inventory, or speak with an associate using video conferencing. Connecting to social networks and displaying customer’s posts is another way of connecting with customers, particularly Millennials.

Digital Signage Today reported that, according to InfoTrends, digital signage has increased brand awareness by 47.7 percent, purchase amount by 29.5 percent, sales volumes by 31.8 percent, repeat buyers by 32.8 percent, and in-store traffic by 32.8 percent. Around the world, retailers are discovering the many uses of digital signage, and the advantage of connecting the technology to the Internet of Things. The content fills a void in situations in which salespeople are unavailable. Signage is a piece of the IoT puzzle for retailers, and it can be used as a helpful tool to provide the service and extraordinary experience customers crave.

This entry was posted by Jennifer Bosavage on Tuesday, December 29th, 2015 at 11:57 am .

Retail is not easy. Ok, let’s face it – most days it’s downright hard.

That’s why retailers everywhere are taking a stand against retail chaos, in their own way, and every action counts.

Tell the world how you’re taking control of your retail environment to drive your strategy, and then find out how Retail Pro® can empower you to do even more at NRF 2016!

How do YOU #StopRetailChaos? Use this hashtag on social media to join the conversation.

This entry was posted by Ulyana Avetisov on Thursday, December 3rd, 2015 at 12:57 pm .

While digital business will influence every part of the retail experience in the near future, it’s important for stores to recognize that the customer — not technology — will still be the star of the show.

Enhancing customer satisfaction begins with a well-run operation.

Sure, the digital store will use technology to excite customers and to streamline store operations. But, as analysts at the  Gartner Symposium/ITxpo 2015 noted, delighting the customer is job #1.

And that is logical, for without a happy, satisfied customer base, a retailer has no foundation. To begin with, retailers must cover the basics: Does the store have sufficient inventory? Are the store associates pleasant and available to serve the customers? Is checkout hell on Earth?  How smooth is the return process? Without those pillars in place, a retailer is stuck constantly trying to invent itself. Customers won’t wait for a retailer to “figure it out,” they’ll simply take their business elsewhere.

Technology can help bolster those pillars, making them strong enough to withstand product shortages, labor issues and other challenges.

“Well established technologies, such as electronic shelf labels and RFID used in the past in the back office for stock management, are now being used in innovative ways at the front end to enhance the customer experience,” said Miriam Burt, research vice president at Gartner. “Retailers need to evaluate how these ‘old’ technologies can be used in conjunction with newer applications of technologies such as NFC, augmented reality and smart machines for robust execution of the in-store basics.”

Once the basics are nailed down, retailers should determine how they can make their customers feel special, valued and appreciated. Historically, coupons were used to thank customers. And in the 1930s, S&H Green Stamps ushered in the first “loyalty rewards” program, with shoppers collecting stamps as a reward for making purchases, and eventually trading those stamps for other goods. Today, technological personalization and innovation can be combined to offer shoppers incentives for their continued patronage. In-store beacons, for example, offer shoppers personalized deals, discounts, recommendations and rewards based on how the shopper has been interacting in all their channels.

Today’s retailers have the opportunity to use technology, and to connect multiple systems in an effort not just to provide shoppers what they want, but to help them enjoy and enriched retail experience. In addition, that experience must reach across channels, with online complementing the brick and mortar experience, and vice versa. That means not duplicating the experience, but to offer a seamless journey, one that can pick up where the other left off. That’s the type of technology-enabled service that will have customers leaving a digital business with a smile.

This entry was posted by Jennifer Bosavage on Monday, November 30th, 2015 at 7:55 pm .

McDonalds is joining other fast-food restaurants in automating the ordering process. But at the Golden Arches, it’s happening (for now) mainly in Europe, where 7,000 touch-screen kiosks to perform cashier duty. The touch screens will only accept debit or credit cards.

In the United States, McDonald’s home base, the company recently added 62,000 employees. However, if the kiosks work well across the Atlantic, it stands to reason they’ll be here pronto. The kiosks should increase efficiency and make ordering easier for customers. McDonald’s is a company that tests its outlets on timing and accuracy, at least in the United States, using secret shoppers — so it takes satisfaction seriously.

The system will also be an excellent source of customer data. How many meals are sold? A la carte items? Do people really want an apple pie with that? That could help McDonald’s refine and expand their menus and potentially cater to regional tastes.

We shall see how quickly the kiosks move stateside. But the U.S. has not been shut out entirely; the fast food giant does offer, in select markets, a build-your-own burger kiosk. That’s a digital display in primarily California outlets but also in NYC that lets customers select from various ingredients and make their own creation. The chain has come a long way from what made it popular to begin with: Mass produced food that was uniform. Sure, it’s still relatively cheap and it is certainly speedy, but technology has allowed McDonalds to answer the call of consumers requesting their unique culinary demands be met.

The global interactive display market is expected to reach a value of more than $14 billion by 2020, according to research by Markets and Markets. That’s a huge opportunity for kiosk makers and solution providers, but it also means that retailers should start looking for opportunities in which a display or kiosk can enhance the customer experience — before the competition does.

This entry was posted by Jennifer Bosavage on Wednesday, November 25th, 2015 at 8:49 am .

Understanding your customer is key when it comes to offering service that meets and anticipates customer needs, cultivates loyalty, and stimulates repeat business.

Retail Pro® provides native functionality that allows you to capture and analyze the exact information you need to understand your customers’ shopping habits, needs, and expectations across channels.

Data collection with user-defined fields 

User-defined fields (UDF) in Retail Pro allow you to track a virtually unlimited number of data elements.

UDF and auxiliary fields can be completely customized to ensure you capture the specific type of data you need to inform, for example, your merchandising or marketing strategies.

Capture customer preferences like favorite colors, styles, and activities to personalize your marketing campaigns, or arm your sales associates with access to those details on a mobile device so they can make meaningful recommendations.

For example, a cosmetics retailer might track a customer’s favorite brand, shade of eye shadow or lip tint, or their skin type based on their transaction history, and can send special offers for those products when they shop online or come into your stores during their birthday month.

Data analysis with calculated field 

Calculated fields like total sales, total transactions, total units, and the total number of visits enable you to analyze your customers’ sales history and determine their lifetime value.

Then, using that key criteria, build targeted customer lists to increase the effectiveness of your marketing across channels.

For example, you can create segments to market to customers with total sales over $10,000 or every customer whose favorite hobby is fishing.

Whatever your engagement strategy, Retail Pro gives you the tools you need to gather and analyze the customer data that helps you drive effectiveness and build greater loyalty and customer satisfaction.

This entry was posted by ketv on Wednesday, November 11th, 2015 at 2:20 pm .