Hello, everyone! I hope you enjoyed my last blog on some of the most popular use cases for analytics in the store.
I hope you are also aware of an exciting three-part series of one-hour free webcasts that Cisco is currently doing on analytics. We don’t usually go down so far into a single topic at these quarterly retail events. However, store analytics is so new and can be complex enough that we are digging into it to help you understand what you need to set up programs to drive your sales.
In Part 1 of the series, we showed how data can help improve differentiation and competitive advantage: By identifying the right analytics and metrics, you can generate insights and innovate for retail success. (You can listen to the recording here.)
For Part 2 on June 25, being held at 10:00 am PT/1:00 pm ET, we’ll discuss how you can move toward a truly data-driven model, where your insights from data help to solve specific business challenges. Several Cisco partners will join us to talk about solutions they’ve implemented that are already helping retailers improve their business out in the real world. Be sure to bring your questions!
Register today to talk about how to:
- Determine what works best in-store
- Optimize staffing and workforce efficiency
- Increase marketing and campaign effectiveness
- Create and execute an Analytics 3.0 strategy
Plus, you’ll hear from Cisco experts who will discuss how to increase your opportunities to profit along the entire shopper journey. Whether you manage store operations, staffing, layout, assortments, a category, an entire brand, or IT, please join me for this series of webcasts to uncover immediate benefits for your retail business.
See you there!
Hello, there! My name is Kathryn Howe, and I’m a senior advisor in Cisco’s Retail Industry Practice. I am joining this blog to write regularly on my favorite topic and one of today’s hottest retail trends: Shopper behavior analytics and how they can support omnichannel selling.
Your store is probably among those that are collecting and analyzing masses of data about customers, products, and store operations to earn additional revenue and savings. The challenge of this big data, of course, is that metrics don’t mean much unless the store has access to the right data to meet your specific business needs. But when you do, such metrics become a powerful tool to create efficiencies and support your omnichannel strategies.
Most of the retailers I meet are extremely enthusiastic about the idea of utilizing shopper analytics technologies to generate deeper insights they can use to better manage their businesses – but aren’t too sure of how to do it. However, the truth is that the use cases for analytics in the store are almost infinite. As just a few examples, you can:
Predict resource requirements
Retailers can use analytics tools to measure traffic, wait times, and queue lengths, proactively anticipating resource demands across the store. For example, front-end staffing demand in grocery can be anticipated using a combination of real-time traffic counting, trip time data, and data on staff on hand. Resources are thus dynamically allocated based on real-time information, improving productivity of labor hours and improving customer satisfaction.
Drive traffic to the store
Through presence and location-based mobility analytics, retailers pinpoint the location of opt-in shoppers when they are close to a store location. With personalized reminders or discount offers sent directly to their smartphones, consumers are more motivated to visit the store if they are nearby.
Retailers can leverage customer showrooming by providing real-time discounts and price matching on the shopper’s mobile device based on their location in the store. For example, analytics from mobile or video may detect high wait times in a department or category. In response, the store can alert staff to offer immediate assistance, or send a personalized offer to the shopper’s mobile device. This turns showrooming from a threat into a promotional opportunity, improves the shopper’s opinion of the store, and builds a strong long-term relationship.
I recently authored a white paper that addresses these and many other use cases, which you can find here. For a dynamic conversation on these and other analytics topics, please join us on June 25 for a free hour-long webcast on real-world analytics. It’s being hosted by Cisco and a group of our partners to discuss how to optimize operations and workforce efficiency, increase marketing effectiveness, and strategize for Analytics 3.0. See you there!
Tags: analytics, Cisco, journey, Kathryn Howe, retail, shopper
Retail success has always been about delivering on the “4 Rs”: getting the Right products to the Right place at the Right time and for the Right price. While that success formula remains valid, technology-enabled advancements promise to disrupt how — and how well — retailers will be able to deliver on each element.
“Omnichannel” is a theme that has dominated retailers’ mindshare the last several years as digital influence and mobile connectivity become bigger and bigger elements in the shopping journey. Now emerging are the Internet of Everything (IoE) and Big Data analytics. While pervasive IoE connectivity generates a deluge of data, new analytics tools are helping to turn this raw data into actionable insights. The mashup of omnichannel, Big Data, and IoE is positioned to drive new operational benchmarks through a focus on the retail industry’s new “4 Ps of Performance”: Precision, Personalization, Prediction, and Platforms.
Read More »
Tags: analytics, Big Data, Cisco, Cisco Consulting, Internet of Everything, IoE, omnichannel, retail
Hi, readers! You haven’t heard from me recently, as I’ve been travelling and talking to Cisco customers. My colleague Jason Bettinger and I recently had a wonderful time at CDM’s Customer Experience Summit in Chicago, IL. CDM Media Summits bring together leading C-level executives, analysts, and solution providers to network and attend interactive agenda sessions on the latest business topics and trends.
At the event, we gave the opening keynote presentation to address how enterprises can strive to meet the ever increasing demands of the customer. The summit brought together some of the leading executives from a variety of industries to explore ways of confronting and overcoming current industry issues. This year’s conference focused on topics that enterprises must deal with now, not in the future:
- Leveraging Big Data
- Social Media Marketing
- Predictive Analytics
- Digital Interactive Marketing
- Monetization of the Customer Experience
- Customer Engagement Management Platforms
Increasingly, institutions are focusing on customer experience as their primary competitive advantage. Those with the highest customer experience ratings typically enjoy some of the best financial performances when compared to their competitors and research has demonstrated a high correlation between experience to loyalty and loyalty to profitability. Companies are asking themselves: How do we design and deliver differentiated customer experiences that truly matter? What expectations do today’s consumers have for customer care?
In our keynote, we showcased how new technologies that generate more positive outcomes in the customer experience era align with future business models across industries. We discussed how consistency and personalization are critical to achieving new levels of customer experience and the factors that need to be considered when trying to achieve both.
Delivering a Next Generation Customer Experience Keynote
“Consistency may be one of the least inspirational topics for most managers. But it’s exceptionally powerful, especially at a time when retail channels are proliferating and consumer choice and empowerment are increasing.” – McKinsey & Company
Today, institutions are being challenged to meet the ever-increasing demands of the customer, something that is becoming more complex. Many have found that addressing those demands requires more coordination than ever – it’s about moving to true customer collaboration throughout the customer journey and proactively engaging the customer by combining traditional tools with the power of the future.
Customers are driving how and when they interact and demanding an engaging experience. Therefore, organizations across all industries must evolve their customer care to align with new business models – addressing customer experience imperatives with new capabilities. The keynote can be viewed here.
We received some great feedback from those who attended our keynote. Below are a few key themes we heard from attendees:
- The importance of the customer is at the center of the ecosystem
- Consistency and personalization are not mutually exclusive
- Examples show that every industry is being impacted by the trends in the market today
As you can see, we had a great time at the Customer Experience Summit and we are already looking forward to next year’s conference. Did you attend? Let us know your feedback from the event in the comments section below.
Tags: Cisco, collaboration, customer experience, omnichannel, remote expert, Rose Depoe, video
As I’m sure most of you know, Jon Stine presented this morning at NRF on the results of his fourth “Catch ‘Em and Keep ‘Em” survey, which is a highly respected study done each year to identify how shoppers are responding to retail technologies. As a followup to his NRF Big Ideas session, I’d like to reproduce here Jon’s blog on his findings and thoughts. Thank you, Jon!
Want Your Share of $100 Billion? Build Customer Trust
By Jon Stine
Trust. It’s a powerful human emotion that often drives our behavior. The level of trust, or lack thereof, between a retailer and its customers can literally make or break the business. Given the importance of trust, many retailers are asking: How much do customers trust retailers? What are the benefits of increasing trust? How do retailers gather the information needed to provide the personalized experiences many customers want, while maintaining and even building trusted relationships?
These questions are especially important given the critical juncture at which we find ourselves—the convergence of people, process, data, and things called the Internet of Everything (IoE).
To help retailers build customer trust in an increasingly digitally connected world, Cisco Consulting Services surveyed 1,174 consumers in its fourth annual Digital Shopping Behavior survey.* From a behavior perspective, shoppers are becoming more digital. In fact, eighty percent of respondents are what we call Digital Mass shoppers—people who research, browse, and purchase digitally. Within this group, Über Digitals, who almost always use a smartphone to shop, increased from 11 percent last year to 18 percent this year. Clearly, your customers are digital.
Before we discuss “how,” it is important to understand “why.” Our research showed $100 billion of IoE value was available for retailers in the United States to capture in 2013 by offering more personalized shopping experiences. If you missed your share, don’t worry. This number is expected to increase slightly in 2014. Realizing this value, however, isn’t easy.
When it comes to trust, retailers are starting from a low base. When asked, “How much would you trust these companies/institutions to protect your personal data and use it to provide something you value?” respondents ranked retailers second to last, at 31 percent—behind government agencies (37 percent), and ahead of Internet companies (18 percent).
Even so, shoppers want personalized experiences. When asked, “Which personalized experiences do you prefer?” respondents ranked promotions via touch-screen or smartphone first (Digital Mass: 46 percent; Über Digitals: 53 percent). This was followed by personalized products, personalized shopping lists, and personalized service.
So, how do we solve this dilemma between a lack of trust and the desire for personalized shopping experiences, which require the collection of personal information? For answers, let’s look at a few of the research findings.
- Shoppers want personalized offers that are easy to use – Most people want to receive personalized offers via email at home. This suggests that shoppers — even Über Digitals — start the shopping process while they are in their home environment. The vision of in-store offers may simply not be in sync with the reality of shopper decision making and in-store behavior.
- Shoppers are willing to share information – Both Digital Mass and Über Digital shoppers are willing to share past purchase history and basic personal information (name, age, etc.) with retailers to receive a more personalized shopping experience. Topping the list of acceptable information for retailers to use are time spent in the store, location in the store, and products you try but don’t buy.
Based on our experience working with many of the world’s leading retailers, there are three key takeaways and actions when it comes to building trust:
- Shopper trust must be earned. Retailers can do this by delivering a clear data policy and making the benefits of providing personal information transparent and easy to understand.
- IoE is already here. To capture your share of the $100 billion value at stake, develop a strategic plan that takes into account the information above.
- Über Digitals are too important to ignore. Selling to these shoppers requires an architecture and infrastructure that can support their increasing expectations for connected, digital shopping experiences.
To gain even more insights into developing trust in an IoE world, take a look at:
* This year’s Cisco Consulting Digital Shopping Behavior survey includes responses from 1,174 consumers who are representative of the United States broadband population by age, income, and region. It is the fourth in a series of popular “Catch ‘Em and Keep ‘Em” studies by Cisco Consulting Services.
Tags: CCS, Cisco Consulting Services, Cisco Retail, data, Digital Mass, Internet of Everything, IoE, Jon Stine, nrf14, Personalization, personalized experiences, personalized shopping, protection, retail, Rose Depoe, trust, Über Digitals