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Safely delivering growth through better customer experience
SOLUTION BRIEF
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Safely delivering growth through better customer experience
TEchNOLOgy chaNgE haS ImpacTEd yOUR cUSTOmER RELaTIONShIpS
As you clearly know, digital disruption over the last decade has impacted how retailers communicate, connect, and sell their customers. Most retailers that we work with acknowledge as well a shift in power to more technology-enabled consumers. For this reason, they say that they need to adjust their strategies and refocus their marketing so it is more consumer-centric.
For example, Roxanne Austin on Target’s Board of Directors says their
decision to appoint Brian Cornell as Chairman of the Board and CEO
was driven by the importance of data and analytics to their brand
catching up digitally. “As we sought to aggressively move Target
forward and establish it as a top omnichannel retailer, we focused on
identifying an extraordinary leader who could bring vision, focus and a
wealth of experience to Target’s transformation.”
Roxanne goes on to say that the board had determined that “Target
would not grow if they weren’t relevant to our customers.”
As part of this change, Austin says that they now view smart phones as
their storefront which in turn has liberated them to increasingly turn
stores into actual fulfilment centres.
BUILdINg a BETTER RELaTIONShIp wITh ThE RETaIL cUSTOmER
Retailer customers are telling them it is critical to build better
relationships. The goal is to create great experiences with brands and
products by empowering consumers with knowledge. This requires
a better understanding of consumer needs as well as the removal of
Target would not grow if they weren’t relevant to our customers.Roxanne ausTin, TaRgeT
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Safely delivering growth through better customer experience
purchasing barriers. For Nordstrom, according to Jeannie Ross of MIT
CISR, they noticed a few years ago they were being disrupted just like
Target. Nordstrom responded by creating a personalized shopping
experience.
This was enabled by solving significant technology integration issues
and combining their business capabilities around a transparent
shopping experience and transparent supply chain. This in turn
powered predictive analytics. This allowed Nordstrom to predict
that what a customer needed was in stock and how to get it to them
regardless of channel.
It has become clear that strategically managing customer, product,
and supply chain data, and proactively identifying the relationships
between them, is critical to retail agility in today’s world of rapid digital
innovation. For many years, customers have been working to establish
an omnichannel commerce model. To make this work today, they need
the ability to streamline and coordinate transactions across multiple
platforms for a superior consumer interaction. Retailers need to move
beyond omnichannel to become truly customer-centric.
Consumer, product, partner, supply chain and external data in today’s
era needs to be proactively managed to ensure a complete picture
is built of customers. This needs to consider what needs and wants
attract consumers to specific products and how to satisfy the last-
mile delivery in a world where choice is king and preferences are
person-specific. Without accurate and complete data regarding next-
generation customers, neither the systems nor the resulting marketing
campaigns will function as intended. Retailers with inaccurate data
may end up frustrating consumers with irrelevant messages and offers
which will be ignored and maybe even lead to a complete shutdown in
communications altogether.
According to Pascal Viginier, CEO Office and Orange and Cynthia
Stoddard, CIO of Adobe, “data is the new currency for organizations
driving insights, customer engagement, and ultimately financials.”
Retailers need to move beyond omnichannel to become truly customer-centric.
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Data is the new currency for organizations driving insights, customer engagement, and ultimately financials.Pascal ViginieR, ceo office
anD oRange
cynThia sToDDaRD, cio aDobe
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Safely delivering growth through better customer experience
RETaININg cUSTOmER TRUST aNd gOOdwILL IS ESSENTIaL
As organizations put together their fragmented consumer information,
they need to be conscious about the business risk coming from
integrated customer data. Companies integrating data about customers
need to ensure this sensitive and valuable asset collected for retail
marketing purposes is protected because there are clear marketing
consequences to a brand for a failure to protect it. To help you think
about this, it is helpful to consider the concept of brand equity.
“Brand equity is a set of brand assets and liabilities linked to a brand,
its name and symbol that add or subtract from the value provided
by a product or service to a firm and or to a firm’s customers.”
Managing Brand Equity, Dave Aaker
Most would all consider a major loss of customer data as fitting under the
category of a ‘business disaster’. Aaker claims that it is important for business
leaders to understand that a disaster affects image, and thus, brand equity.
Aaker suggests that the best approach is for brand managers to ensure
that a disaster is avoided; where one does occur, they should detect the
disaster early and do something about it before it blows up. Aaker goes
even further saying that the remedy should be as convincing as possible.
This is clearly a tactic taken by Target in recent years. Target’s CIO
said recently, “We now have to prove to our customers every day that
their data is secure, it can never leave us again.” Another major loss of
customer data would have disastrous consequences for the Target brand.
With 10% of revenues typically spent on marketing, how much of a hit
can a brand take before this yearly marketing investment becomes
a wash? Validating this is a Deloitte study which recently found that
the primary reason consumers choose to purchase higher-priced
products is because they are ‘trusted’. The study also found that for
59% of consumers just a single data breach would negatively impact
the likelihood of them purchasing from a particular company. Deloitte
found that with confidence in an organization’s ability to protect their
data, consumers are more inclined to share information where they see
benefit. Without data protection assurance, retailers will be limited in
the information they can collect – and this will allow competitors to win
their customers’ loyalty instead.
…there are clear marketing consequences to a brand for a failure to protect it.
We now have to prove to our customers every day that their data is secure, it can never leave us again.cio, TaRgeT
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Safely delivering growth through better customer experience
For this reason, Retail brand managers can no longer allow their
organizations to plead ignorance to the possibility that customers will
walk or stay away from their brand if it fails to protect their sensitive data.
Financial penalties for failure to comply with industrial and governmental
privacy and data protection regulations can clearly erode the value
of brand investment. How many European brands want to notify their
customer base that they failed to adequately protect their data?
hOw caN pROTEgRITy hELp
Protegrity provides a data protection platform that can allow you to
make use of sensitive and valuable customer data without risking
your customer relationship and brand at the same time. For many
retailers, they tie their upsell and cross sell offers to unique identifiers
including credit card number or other sensitive elements of personally
identifiable information.
The platform allows you to make use of this sensitive data while
seamlessly enforcing data policies across the enterprise to protect
sensitive data and control access to it, regardless of where it flows, is
used, or rests. This enables retailers with complex IT ecosystems to
consistently protect sensitive information throughout the enterprise
without compromising their customer marketing.
Protegrity empowers a ‘privacy by design’ with centrally managed
security and privacy policies to control access and protect data itself
using anonymisation and pseudonymisation technologies; with these in
place, data protection is automated enterprise wide. Today, protecting
data needs to be a 360-degree conversation. It needs written policy
and user transparency as well as data protection. Protegrity allows
specific, sensitive data to be fully visible, partially visible or completely
protected depending on each user’s role within the organization. This
permits the analysis of sensitive and regulated customer data while
preserving privacy and security for different applications and parties.
pROTEgRITy SERvIcE TO RETaILERS
Protegrity has been helping companies for more than 10 years to
protect their data as a core business competency. We are used by 20%
of the largest retailers based upon Fortune Global 500 Lists released in
August of 2017.
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Key benefits• Respondtodigitaldisruptors
bycreatingcompellingdigitalexperienceforcustomerswithouttakingonsignificantbusinessrisk
• Safelyusesensitivecustomerdatatoimproveyourmarketanalysisandtopowerpredictivemarketingmodelsneededtodrivecrosssellandupselloffers
• ComplywithregulationincludingPCIandGDPRwithouteliminatingimportantmarketingdataalongtheway
• Preventadigitaldisasterbyprotectingsensitivecustomerdatafrommisusebyinternalandexternalparties
Protegrity has been helping companies for more than 15 years to protect their data as
a core business competency. Our customers include some of the largest multi-national
retailers in the world. They recognize that data is a valuable asset which we can enable
them to use securely, without restrictive costs or performance roadblocks.
www.protegrity.com
protegrity (Europe)
Suite 2, First Floor, Braywick House West, Windsor Road
Maidenhead, Berkshire SL6 1DN, United Kingdom
Phone: +441494857762
corporate headquarters: protegrity USa, Inc.
333 Ludlow Street, South Tower, 8th Floor
Stamford, CT 06902, USA
Phone: +1.203.326.7200
Copyright © 2018 Protegrity Corporation. All rights reserved. Protegrity® is a registered trademark of Protegrity Corporation.
All other trademarks are the property of their respective owners.
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Retail transformation turns data risk into reward
EXECUTIVE BRIEF
THE CHANGING FACE OF RETAIL HOW SHOULD DATA PROTECTION KEEP UP?
2 Automated Roles
TRANSACTIONS WILL bE fRICTIONLESS, USINg IN-STORE RfID TECHNOLOgy
1 Personalized experience
3 Automatic checkout
5 IOT
STRATEGY: Personalization to ensure customer loyalty and increase share of wallet
OPTIMIZATION: Protect private data itself in a way that does not hinder analytics
CUSTOmERS’ ONLINE DATA AND PURCHASE HISTORy WILL REvEAL INSIgHTS fOR TAILORED SUggESTIONS AND INCENTIvES TO bUy, IN REAL TImE
DIgITAL DEvICES WILL gREET AND SERvE CUSTOmERS AND RUN bACK OffICE OPERATIONS
www.protegrity.com [email protected]
OPTIMIZATION: Ensure use of data is for legitimate purposes only using granular, role-based access controls for devices utilizing sensitive customer and corporate information
STRATEGY: Enhance the shopping experience – no more queues
OPTIMIZATION: Protect customers in line with GDPR and PCI DSS requirements using tokenization to pseudonymize private information without impact to process or systems
SmART APPLIANCES WILL PURCHASE AND DELIvER HOUSEHOLD ITEmS AND RESTOCK SHELvES AND PROvIDE fURTHER INSIgHTS INTO CUSTOmER PURCHASINg HAbITS
ONLINE SHOPPINg WILL gROW fROm 10% TODAy TO OvER 50% by 2027
STRATEGY: AI to reduce cost and improve efficiency
STRATEGY: Make online purchasing easier and quicker for customers to improve conversation rate
OPTIMIZATION: Protect sensitive data fields in transit to speed up account creation and enhance customer experience
STRATEGY: Anticipate and respond to customer requirements on demand and streamline supply chain
OPTIMIZATION: Enable data to flow across all platforms using one centrally controlled protection method
4 Online sales
5 WAYS GLOBAL RETAILERS PROTECT THEIR CUSTOMER DATA
WAYS GLOBAL RETAILERS PROTECT THEIR CUSTOMER DATA
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Read more about how Protegrity can help your business
EXECUTIVE BRIEF USE CASES FUTURE RETAIL