retail futurescape - changing technologies for improving retail operations
DESCRIPTION
Presentation to a retail operations class at UNC Kenan-Flagler, after the students presented company profiles on selected Companies to Watch. Their work supplemented my talk.TRANSCRIPT
Jan L. Davis Professional Board Member
Embracing analytics
Online and mobile
Companies to watch ◦ Pedestrian counting & tracking
◦ “Big data” solutions
Summary
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“If you can’t measure it, you can’t manage it.”
Need for metrics never more acute
Growth of online and mobile impacting brick & mortar
Understanding profit growth levers - crucial
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Marketing spend Store traffic Labor hours Conversion rate Ticket/basket size Inventory turns Out of stock conditions New product introductions
And they all interact!
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Embracing analytics
Online and mobile
Companies to watch ◦ Pedestrian counting & tracking
◦ “Big data” solutions
Summary
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Retail stores = showrooms for online shopping?
Amazon Price Check might be evil, but it’s the future, Erik Kain, Forbes, 12/14/11
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Mobile Check-out
eMobile POS
On the spot
Customer engagement
Sustaining and disruptive change
Embracing analytics
Online and mobile
Companies to watch ◦ Pedestrian counting & tracking
◦ “Big data” solutions
Summary
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Digital video single-purpose device with embedded technology
Overhead infrared readers
Side-mounted gates with infrared readers
Digital video appliance with cameras
Hybrid - automated human review of security camera video
Smart phones
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Why count traffic? ◦ Scheduling labor ◦ Measuring marketing impact ◦ Improving service through training & feedback ◦ Tracking KPIs like conversion rate
Why track shoppers? ◦ Assessing capture rate & unique or repeat visitors ◦ Improving layouts and planograms ◦ Measuring engagement with displays ◦ Calculating SKU conversion ◦ Improving service
When Retail Customers Count Conversion: The Last Great Retail Metric ◦ Both by Mark Ryski, Headcount
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13%
13%
2%
3% 4%
4%
8%
19%
34%
72%
Price
Price comparing
Quality of merchandise
Line at register
Sales assistance
Couldn’t find size
Couldn't decide on item
Couldn't find item(s)
Just browsing
Copyright © 2007 Deloitte Development LLC. All rights reserved.
Lost Retail Opportunity Reasons for not purchasing
72% of reasons for not buying are easily within the influence of the store
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Global leader in thermal imaging devices for broad array of applications
People counting and queue management in retail ◦ Resell devices to multiple people
counting companies
◦ Partner with large supermarket chains (Tesco, Kroger) for queue management
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ReTel’s Technology integrates with security cameras to track: ◦ Operations
◦ Consumer behavior
◦ Merchandising
Hybrid computer vision and video tagging assembly line
Scalable from 1 to 1000+ stores
Proprietary & Confidential – Please Do Not Distribute
“Google Analytics for Real World Stores”
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2012
Customer Counts By Day of Week
Customer Counts By
Gender
Avg. Customer Counts By
Hour
Detailed Demographics:
Age, Gender and Height
Not Shown: Group Size
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Shopper Interaction Heat Map
Category Conversion
Funnel
Sales Associate Metrics
Sales Associate
Impact
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Anonymous tracking of GPS-enabled phones
Capture rate, dwell time, unique and repeat visitors, benchmarking
Inexpensive hardware
Allows consumer
opt-out online
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Euclid Learning Machine
Removes “noisy data”
Raw Data
Heuristic Filters
Filtered Data
Operational Analytics
Marketing Analytics
External Meta Data (i.e. Yelp, Weather, Retail data, Consumer opt-in data)
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Simple metrics create real revenue opportunities
Retail Property Owners Out-of-Home Advertising
Key metrics vary by store type: Example: Apparel Example: Coffee
Used for operational, planning, advertising and leasing Example: Tenant Mix
Bringing the best of online advertising to the offline world Example: Impressions, Conversion, Relevance
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Consumer retail behaviors too numerous & diverse for commonly used tools ◦ Increasing volume
◦ Increasing speed
◦ Increasing variety, both sources & types
DunnHumby
Retail Solutions
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Partnered with Tesco to launch loyalty card Launched in US with Kroger JV, exclusive for
grocery Expanded to Macy’s & others Analyze transaction & loyalty card data Overlay research, media & online data Mine data to localize & personalize offers ◦ Direct mail ◦ Email ◦ Online contextual ads
Provide demand-based pricing optimization
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Paying customers are CPG companies.
Provide free services to retailers ◦ Analyze point-of-sale, supply chain, merchandiser
feedback, customer loyalty data
◦ Fix out-of-stocks, correct root causes
◦ Ensure compliance with pricing, promotion, planagram commitments
◦ Operate replenishment programs
◦ Improve new product introductions
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Sale
s &
Mark
eti
ng
Category Management
Pricing Management
Promotion Management
New Product Introductions
Store Operations & Field Sales
Supply
Chain
End of Life & Package Transitions
Shrink & Unsaleables
Out-of Stocks
Inventory Management & Replenishment
Forecasting and S&OP
Retail Execution
Management
Changing environment: opportunity & threat
Analytics ◦ New metrics emerging
◦ Standard metrics matter more than ever
Online and mobile ◦ Drive customer behavior
◦ Provide new operational solutions & threats
“Simultaneous discovery” epidemic ◦ Shopper counting & tracking
◦ “Big data” analysis and solutions
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Jan L. Davis [email protected] 312 961-2203 (cell)