NRF 2014 was held last week at the Javits Centre in New York City. It’s the biggest retail event of the year where vendors show off the future of the industry to all the delegates both using inspiring key notes and exciting demos on the Expo floors.
2014 and beyond:
It wasn’t too hard to identify that there were some common themes. On Tuesday afternoon I stood on the main Expo floor and just looking around I could quickly see the industry’s top of mind phrases and buzz words popping out:
“Omni channel”,”Onmianalytics”, “Predictive”, “Insights”, “Customer science and Analytics”, “Precise Location Matters”, “Analyze Decide”, “Mobilize”, “Mobility solutions”, “Big data”, “Customer engagement”, “Adaptive offers”, “Personalized customer experience”, “Customer Experience Analytics”
We certainly are entering the era where using data, analytics and personalization is no longer just an interesting notion or “nice to have” for retail – it is now the KEY thing companies MUST do.
And a big common theme is that mobile is exploding and changing things rapidly, so retailers either need to keep up or inevitably fall behind their competitors. Read More »
Tags: adaptive offer, analytics, Big Data, Cisco, content, context, customer, customer science, data, engage, engagement, experience, Industry, innovation, Insights, location, mobile, mobility, mobilize, NRF, nrf14, omni-channel, omnianalytics, personalize, precise location, predictive, retail, revenue
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
Superheroes and their super strengths have long captured our imaginations. And since many of these abilities are normal human traits stretched to a magical extreme, you may well have pictured how your own life would change with super speed, agility, or senses.
Today, such daydreams are getting just a bit closer to reality. And while such powers won’t necessarily save the world (yet), they will make some common activities, such as shopping, a bit more super.
Smartphones have already assumed a central role in the retail experience. Yet the current level of smartphone interactivity is just the beginning. Exciting new capabilities are transforming the ways in which we interact — connecting our physical world to digital dimensions in very simple and intelligent ways. We will see more intelligent connections emerging across the entire customer journey: consideration, purchase, and usage.
Read More »
Tags: Big Data, brand loyalty, Cisco, Cisco Consulting Services, FutureOf, innovation, Internet of Everything, internet of things, IoE, IoE Value Index, IoT, MobilizeMag, NRF, nrf14, retail, value at stake
At Cisco, we’re about ready for the NRF trade show being held in New York on Jan. 12-15. We’re at the show expo on Jan. 13-14, and will be featuring four company thought leaders in the highly popular annual Big Idea sessions. Kathryn Howe, retail senior advisor at Cisco, will be discussing one of the industry’s most forward-looking trends – how to utilize omnianalytics that help retailers extract the most data out of omnichannel environments.
Q: The concept of omnianalytics is a new one for many retailers. Can you tell us more about it?
A: In pursuit of the personalized customer experience, retailers are increasingly moving toward omnichannel selling across stores, websites, mobile platforms and applications, phones, kiosks, and so on. Each of these channels adds another layer to the customer experience, and each layer generates a new set of data. These data sets offer a new opportunity for stores to engage with the customer. Omnianalytics is the process of managing and correlating these large amounts of data to transform your business.
Q: Why is this data so important?
A: For the first time in history, retailers can collect truly objective, quantifiable customer data. Traditional shop-alongs, simulations, and focus groups are inevitably somewhat inaccurate, as simply being observed can change shopper behavior. Today’s automated systems, on the other hand, collect completely unbiased information on dwell times, traffic patterns, and other behaviors. They are also extremely scalable, meaning that consistent metrics can be gathered across thousands of stores to provide very high quality data.
Q: What do you think are the most important topics you’ll discuss at NRF?
Knowing which metrics are game changers for your business is the art and science of executing on omnianalytics. We’ll talk about how to get started and how to understand which metrics you need for your business. We’ll also be joined by John Goedert of Starbucks, who provides a wonderful case study on how his company is using omnianalytics to drive consumer interactions.
Time and Place:
“Omnianalytics: Knowledge is Good, Now How Can It Transform My Business?” with Kathryn Howe takes place on Tuesday, Jan. 14, at 1:15-2:15 am, in Room 4 on Level 3 of the Expo Hall. For those who can’t be there, a recording of the session will be available after the show. Visit Cisco’s NRF website to learn more, and do take the time to stop by Cisco booth #1954.
I’ll see you at NRF!
Tags: analytics, Big Data, big data analytics, Big Idea Sessions, consumer, customer experience, John goedert, Kathryn Howe, NRF, nrf14, omnianalytics, retail, retailer, Rose Depoe, shop-along, shopper, starbucks
We’re rapidly closing in on the NRF trade show being held in New York on Jan. 12-15. Cisco is at the expo on Jan. 13-14, and will be featuring several company speakers at the popular annual Big Idea sessions. I am honored this year to be one of these speakers, and am pleased to be joined by Bob Friday, Cisco’s vice president/CTO for Enterprise Networking – Mobility. Bob manages strategic wireless initiatives for Enterprise Wi-Fi, and we’ll be discussing the critical business issues of implementing mobile solutions in your store.
So what are the hot topics right now around mobility?
Retailers are going in some interesting directions here. Location awareness of customers is of course hot, hot, hot. Retailers want to learn from shopper behavior how they can best improve opportunities for sales. But, how can we do this without getting into the “creepy factor” of essentially stalking our customers down the aisles?
And, of course, every retailer wants to find shortcuts to ROI and monetization of the mobile platform. Part of this lies around the organization itself: It is common to see companies where IT and lines of business are simply not working together closely enough to get real value out of new technology. For example, I remember one store that was required by management to implement Wi-Fi. This was all well and good, but they didn’t implement any analytics for the new network. The result was that they have a cool technology but no idea of how to use it to engage shoppers, or even to identify how it is benefiting them.
In our session, Bob and I will discuss how you can use your Wi-Fi as a strategic asset – not just as the next awesome thing, but as a critical part of your engagement with shoppers. I’d like to also cover ideas on personalization vs. contextualization: This gets into how we can gather information without being intrusive. And we’ll talk about how to achieve ROI for your wireless investment and turn it into a new revenue driver. Please join us!
Time and Place:
“Detect, Connect, Engage: Enhance Your Customer Experience with Mobility,” with me and Bob Friday takes place on Tuesday, Jan. 14, at 9:15-10:00 am, in Room 4 on Level 3 of the Expo Hall. For those who can’t be there, a recording of the session will be available after the show. Visit Cisco’s NRF website to learn more, and do take the time to stop by Cisco booth #1954.
I’ll see you at NRF!
Tags: Big Idea Sessions, Bob Friday, location awareness, mobility, monetization, NRF, nrf14, retail, retailer, Rose Depoe, shopper, wi-fi, wifi