retail trends in advanced analytics

Listening to the voice of the customer

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Sales Forecast in 1999

Film Cameras Digital Cameras

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What Really Happened

Film Cameras Digital Cameras

Retail has a multitude of devices that generate petabytes of potential

insights

Monitoring and mining social media data enables

retailers to enhance customer insights

Open data sources and internal sources enable

retailers to better understand customers

Democratization of data

Action

People

Automated Systems

Apps

Web

Mobile

Bots

Intelligence

Dashboards &

Visualizations

Cortana

Bot

Framework

Cognitive

Services

Power BI

Information

Management

Event Hubs

Data Catalog

Data Factory

Machine Learning

and Analytics

HDInsight

(Hadoop and

Spark)

Stream Analytics

Intelligence

Data Lake

Analytics

Machine

Learning

Big Data Stores

SQL Data

Warehouse

Data Lake Store

Data Sources

Apps

Sensors and devices

Data

Democratization of Tools

Location sales Remote sales

Try on and try out products

Face-to-face info

In-store behavior

Social connection/user reviews

Product/price comparison

Online history

Digital transformation enables the best of online & offline

Technology provides solutions to existing and emerging problems

VP of Stores CIO

COO CMO

Merchandising Director

Headquarters Supply chain and mobile workers

Retail App

Welcome

valued

customer!

Collect data through customer opt-in to

personalize the shopping experience

PERSONALIZATION

Send real-time offers

& notifications based

on customer location

REAL-TIME OFFERSRetail App

Enjoy

20% Off Our New

Line when

you buy 2

items

20%OFF

NEW!

$

Utilize secure device-

to-device payment

MOBILE CHECKOUTRetail App

JacketBoots

Dress

$$

$

TOTAL: $$$

WISH LIST

WISH LIST

Enable information-rich

experiences in store

DIGITAL/PHYSICAL INTEGRATION

Retail App

Other

colors

available

PURCHASE

Boots $

BUY

Integrate click-and-collect

and customer wish lists

into inventory decisions

REAL-TIME INVENTORY

MANAGEMENT

ORDER PICKUP

Give sales staff the data

to deliver a personalized

in-store experience

EMPOWERED WORKFORCE

Twitter

Love these

shoes!

#Retailer

Gauge customer sentiment &

trends through social media

SOCIAL ENGAGEMENT

Employee App

CLICK &

COLLECT

Retail App

Retail App

Improve operations by acting on data insights and evolving

business practices to keep pace with rapid change

INVENTORY

OPTIMIZATION

Empower your field

teams with mobile

devices and apps

powerful enough to

handle daily business

RETAIL EXECUTION

`

Blue

Green

White

INTERACTIVE

KIOSK

Becoming more Competitive with Data

Furnishings importer delighted customers with the right offers

Challenge

• Give customers a better

experience and

selection.

• Understand what

customers are looking

for based on online

search.

Strategy

• Combined online and

in-store transactional

and behavioral data

to predict what

products customers

would be most likely

to purchase next.

Results

• Provided more personalized

choices to customers.

• Enabled targeted campaigns.

• Improved inventory management.

“We are continually getting better at identifying what our customer wants, using

Microsoft Azure Machine Learning and resulting data insights.”

— Sharon Leite, EVP Sales and Customer Experience, Pier 1 Imports

Drink manufacturer optimizes operations, boosts customer satisfaction

Challenge

• Avert downtime and

out-of-stock products

• Improve operational

efficiency of partners in

the field

• Deliver better customer

service

Solution

• MARS DRINKS

identifies the optimum

time to stock and

service its vending

machines by using

Internet of Things (IoT)

technology

Benefits

• Improves timely product

stocking and operational

efficiency

• Increases customer satisfaction

• Drives business insights from

consumer behavior data

“Putting machines online, considering how a space is used, and looking

at people’s beverage consumption will unlock a wealth of information

that we haven’t been able to easily access before.”

— Jamie Head, Chief Information Officer, MARS DRINKS

Technologies Size Vertical Country Partner Business need

Top supermarket chain gains insight and boosts profitability with Microsoft Power BI

A multibillion-dollar retailer with 230 supercenters in six states, Meijer wanted better insight into companywide

performance. To improve its competitive advantage, the company is implementing Microsoft Power BI with Office

365 and SQL Server Analysis Services in a hybrid-cloud environment. Integrating with its existing data stores, the

solution provides real-time access to performance information across every store and department. As a result, the

company is empowering all its employees to increase profitability and enhance customer service.

Business agilityobviEnceUnited StatesRetail and consumer goods

Employees: 40,000Annual Revenue: $US15.8 billion

Microsoft Power BIMicrosoft Office 365Microsoft SQL Server 2016

https://customers.microsoft.com/en-US/story/top-supermarket-chain-gains-insight-and-boosts-profitability-with-microsoft-power-bi

https://customers.microsoft.com/en-US/story/top-supermarket-chain-gains-insight-and-boosts-profitability-with-microsoft-power-bi

https://en.wikipedia.org/wiki/File:Meijer_logo.svg

https://en.wikipedia.org/wiki/File:Meijer_logo.svg

Beverage company boosts business with big data analytics in the cloud

Challenge

• Gain new insights from

sales data.

• Boost profitable growth

in a highly competitive

market.

Solution

• Processed data

through 200

regression models

using Microsoft Azure

Machine Learning.

• Provided interactive

analytical tools in a

single Excel view.

Benefits

• Provided more time to focus on

business strategies.

• Improved ability to measure

marketing successes.

• Gained powerful analytical tools

that are easy to expand and

customize.

“We can use Azure ML to generate answers for each individual area [marketing, production,

logistics, and warehousing] and get combined answers for the entire company.”

— Ruben Dario Torres Martinez, IT Manager, Arca Continental

RetailPersonalization

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WeatherLocationCustomer

ProfileAudience

$50 Off Luggage

BOGO onkid’s

sunglassesLocalEvents

POSData

DigitalFootprint

Time ofDay

TRAVEL BLOGGER

LAST VISIT: DEC 21

$10 Off$100

Buy OneGet One

Offer Bank

15% OffShoes

Summer

special:

BOGO

kid’s

sunglasses

2:30PM

WORKING MOM

LAST VISIT: MAR 3

ContosoEyewear

$50 off

luggage

for the

next

2 hours!

2:30PM

HIGH SCHOOLER

LAST VISIT: APR 16

HIGH SCHOOLER

LAST VISIT: APR 23 WELCOME

Looking for a prom dress?

Buy one today and get 15% off a pair of shoes!BROWSE

Connect with customers at the right time, right place with the right offers

• Generate relevant and targeted offers using integrated data sources

• Deliver timely offers based on customer location and time of day

Predict what customers want before they tell you

• Anticipate customer purchases based on profiles, needs and significant events

• Create natural cross-sell and upsell opportunities using predictive analytics solutions

Ensure transaction continuity

• Strengthen next best action engine by using outcomes of every customer decision

• Improve offer uptake with better propensity algorithms

• Prevent duplicate offers across channels

Boost customer loyaltyand marketing ROI

• Keep customers engaged and delighted with personalized, event-based offers

• Deliver engaging in-store experiences using digital assets to support interactions with informed sales associates

Streamline operations

• Become an data-driven organization

• Evolve from reactive to proactive to help build, monitor, and improve your brand

• Keep pace with rapid change and innovate with cloud infrastructure

Sam Quinn

010

100

11

0

TRAVEL BLOGGER

LAST VISIT: DEC 21

HIGH SCHOOLER

LAST VISIT: APR 16

HIGH SCHOOLER


Looking for a prom dress?

Buy one today and get 15% off a pair of shoes!BROWSE

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WeatherLocationCustomer

ProfileAudience

$50 Off Luggage

BOGO onkid’s

sunglassesLocalEvents

POSData

DigitalFootprint

Time ofDay

$10 Off$100

Buy OneGet One

Offer Bank

15% OffShoes

Summer

special:

BOGO

kid’s

sunglasses

2:30PM

WORKING MOM

LAST VISIT: MAR 3











Boost customer loyaltyand marketing ROI







ContosoEyewear

Azure IoT

Cortana Intelligence

Dynamics 365

$50 off

luggage

for the

next

2 hours!

2:30PM

Azure IoT


Dynamics 365

Sam QuinnDynamics 365

Cortana

Azure IoT

Windows devices

1010

00

11

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Azure IoT Suite


Dynamics 365

TRAVEL BLOGGER

LAST VISIT: DEC 21

HIGH SCHOOLER

LAST VISIT: APR 16

HIGH SCHOOLER


Still looking for a prom dress?

Talk to an associate to see the items from your wish list!BROWSE

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Auto-generated Offer Bank

LocalEvents

Time ofDay

RecognitionSoftware

CustomerProfile

POSData

Digital Footprint

Audience Wearables

Wish list

Hiking boots sale

Grab and go

More Frequent visits

Increased Sales

Higher Foot TrafficLocation

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WORKING MOM

LAST VISIT: MAR 3

ContosoEyewear











Boost customer loyaltyand profitability







Your order is ready!Pay in-app to grab and go.Sam Quinn

1

TRAVEL BLOGGER

LAST VISIT: DEC 21

HIGH SCHOOLER

LAST VISIT: APR 16

HIGH SCHOOLER


Still looking for a prom dress?

Talk to an associate to see the items from your wish list!BROWSE

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Time ofDay

RecognitionSoftware

CustomerProfile

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Digital Footprint

Audience Wearables

Wish list

Hiking boots sale

Grab and go

More Frequent visits

Increased Sales

Higher Foot TrafficLocation

010

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11

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LAST VISIT: MAR 3

ContosoEyewear











Boost customer loyaltyand profitability







Your order is ready!Pay in-app to grab and go.

Azure IoT Suite


Dynamics 365

Azure IoT Suite


Dynamics 365

Azure IoT

Cortana

Dynamics 365

Dynamics 365

Cortana

Azure IoT

Windows devices

1

Foodservice retailer increased revenue with a cloud-based mobile solution

Challenge

• Inability to identify or

connect with customers.

• Lack measures of

customer loyalty.

• Untargeted promotions

erode revenue and

profit.

Solution

• Added an analysis and

insights system based

on Microsoft Azure.

• Gathered data on

customers’ behaviors

and preferences to

target offers.

Benefits

• Expanded reach to millions of

customers in five countries.

• Enabled personal, relevant,

contextual content that adds

value for the users.

• Improved promotion efficacy.

“The company saw a huge increase in customers, and those customers

spent 47 percent more. It was all driven at the device level.”

— Scott Bradley, CEO and founder of Plexure (Vmob)

Next steps Learn more about our industry

solutions at microsoft.com/retail