4. SERIES
ConsumerConnected #CCS14
About Retail TouchPoints
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5. SERIES
ConsumerConnected #CCS14
Panelists
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Brion Reusche
Industry Principal, Retail
Junction Solutions
Paula Rosenblum
Managing Partner
RSR Research
7. Agenda
About RSR & The BOOT MethodologySM
Retail’s RESET Moment
Satisfying Channel Agnostic Customers
• Next Generation Fulfillment
• eCommerce Technologies Come to the Store
• Managing the new “customer dimension of data”
• Impact on Merchandising
• Bringing Advanced Analytics to the Masses
7
8. About RSR
Founded in 2007 to quickly become the leading source of
insights for trends in retail technology, and retail in general
Mission: To elevate the conversation about retail technology
to a strategic level within the retail enterprise by:
• Providing objective, pragmatic advice to both retailers and
solution providers
• Leveraging our extensive retail industry experience
• Providing a deep bed of research into retailers' technology
investment plans and the business opportunities and
challenges that drive those investments.
9. RSR’s BOOT MethodologySM
9
They sell more “stuff” but… they also think and
act differently than their competitors.
Retail Winners: Year-over-year comparable store
sales outperform inflation.
Business
Challenges
Opportunities
Organizational
Inhibitors
Technology
Enablers
11. Consumer Behaviors Are
Fundamentally Changing … From
This …(very orderly)
Investigate Select Pay For Fulfill
Investigate Select Pay For Fulfill
Investigate Select Pay For Fulfill
Investigate Select Pay For Fulfill
Store!
Web!
Catalog!
Direct Sales!
12. …To This (Many Paths To
Purchase / Chaotic Patterns)
Web!
Investigate! Select! Pay for ! Fulfill!
Store! Store! Store! Store!
Call
Center!
Call
Center!
Call
Center!
Direct
Delivery!
Web! Web!
Mobile!
Anything!
…and !
Direct
Sales!
Direct
Sales!
Direct
Sales!
This is the Omni-channel
Phenomenon
13. This Chaos Brings Profit
13
17%
10%
7%
28%
38%
18%
3%
3%
29%
47%
Don't Know/Can't Tell
Less Profitable Than Single Channel
Customers
Equally Profitable
Slightly More Profitable Than Single
Channel Customers
Significantly More Profitable Than
Single Channel Customers
Multi-Channel Customers Are:
2013 2012
RSR Research, June 2013
But you have to execute differently
15. • Optimize Consumers’ Paths To Purchase
• Define One Brand
• Re-Integrate The Store
• Solidify Marketing’s New Role
• Re-align The Supply Chain
Retailers Know They Need To…
15
“Bathe” Everything In Analytics
16. This Changes Everything
16
RSR Research LLC, June 2013
13%
33%
42%
44%
46%
50%
52%
53%
64%
73%
75%
80%
84%
54%
48%
55%
49%
44%
47%
41%
43%
36%
21%
19%
16%
16%
33%
19%
3%
7%
10%
3%
7%
4%
6%
5%
4%
Traditional advertising
Customer call center
Procurement/Assortment
Demand Forecasting
Customer segmentation
Store Operations
Loyalty management
Pricing strategies
Digital marketing (E-commerce, Mobile, Social Media)
Customer Order visibility across all channels
Fulfillment
Inventory visibility across all channels
Consistent customer experience across all channels
Value of Processes to Your Company’s Omni-channel Strategy
Very Important Some Importance Little to no Importance
17. Consumer Expectations Are
Driving The Change
17
RSR Research LLC, June 2013
20%
18%
27%
33%
41%
37%
53%
51%
15%
19%
32%
41%
42%
44%
48%
51%
Need to control labor costs while integrating new
cross-channel processes into our operations
Consumers know more about products and prices
than our employees do
Digital channels are creating increasingly global
competition for consumers’ “share of pocket”
The way consumers use channels to make
purchase decisions is unpredictable, but important
A good customer experience in one channel is not
enough to maintain customer loyalty
We are not doing enough to leverage our assets
(digital, inventory, or otherwise) across channels
We struggle to effectively integrate new processes
driven by cross-channel strategies into the store
Consumer expectations outpace our ability to deliver
cross-channel experiences
Top Three (3) Business Challenges Faced In Cross-channel
Strategy
2013 2012
18. Retailers’ Vision of the Future
18
29% 39% 21% 6%5%
The future of online commerce lies more with
cross-channel or merged channel capabilities
Agree/Disagree
Strongly Agree Agree Neutral Disagree Strongly Disagree
Source: RSR Research, November 2013
7%
13%
21%
21%
12%
15%
13%
18%
6%
5%
12%
8%
21%
13%
27%
17%
54%
55%
27%
36%
eCommerce as in-store employee-facing handheld application
eCommerce as in-store kiosk
eCommerce as mobile platform
eCommerce as Point of Sale
Plans for Extending eCommerce Platform to Other Parts of the Retail
Organization
Implemented Current Project Budgeted Project Planned, Not Yet Budgeted No Plans
19. The Supply Chain Must Support
New Fulfillment Strategies
19
RSR Research LLC, June 2013
10%
10%
70%
30%
60%
60%
70%
5%
25%
35%
45%
63%
65%
73%
Buy via TV
Buy via social commerce site
Buy online/direct, pick-up in store
Buy online/direct, fulfill through any store
Buy via mobile device
Buy in-store, fulfill through online/direct
Buy online, return in-store
Which Cross Channel Activities Does Your Company Engage in
Today?
Retail Winners Laggards
20. The Question That Is Only
Beginning To Be Asked Is…
“How Do We Meet These Fulfillment
Requirements Profitably?”
20
21. In The Next 18-24 Months, Retail Will Move To
Address How To Profitably Serve Anytime/
Anywhere Shopping
2010-13 2013 2014 2015-16
The Impact of the
massive adoption of
consumer
technologies
(mobile, social) on
the Retail selling
environment
The harmonization of the
digital and physical selling
environments
Next Generation
Marketing
Next Generation Supply Chain
21
22. So Far…A Sorry State of Affairs
22
RSR Research, September 2013
11%
26%
47%
16%
6%
26%
40%
28%
6%
22%
31%
41%
Advanced:We are ahead of most of our peers and have
executed on most of our strategy.
Moderate:We have identified our strategy and are
executing on it.
In Process:We are developing our strategy and
beginning to execute the plan.
Lagging:We are exploring our omni-channel options
and haven’t yet set our long-term strategy.
Omni-Channel Strategy & Execution: Current Progress
Retailers Vendors LSPs
Retailers lag…likely needing a champion (as marketing was for
sell-side)
23. A Harmonized Omni-Channel
Environment: Wishes vs. The Budget
Source: RSR Research, June 2013
20%
30%
40%
50%
60%
70%
80%
90%
Omni-Technology: Current Status vs. Perceived Value
Implemented "Very Valuable"
#1#2#3#4#5
23
25. Why Does Visibility Matter?
If retailers can promise availability, they can save the
sale
• Show it online even when online is out of stock
• Promise it in the store if it’s in-stock online
Some retailers have reported significant sales
improvement when they can connect online inventory
visibility to stores (“endless aisle”)
25
27. Big Data and Advanced
Analytics
A definition for “big data” in retail seems to be coming into focus
• Enhanced and improved demand forecasting
• Incorporation of customer data into all aspects of the business
• Truly becoming a more data-driven enterprise
• Pro-active vs. reactive
• Responsive vs. reactive
• New and improved KPI’s
The next generation retail operator has grown up in a tech-enabled
world. An easier sell than times gone by
An expectation for visually-oriented data
27
28. Using Data to be Proactive
28
12%
21%
22%
25%
35%
37%
44%
47%
57%
To help us manage our relationships with trading
partners
To get out the word about our Brand Value
To uncover new opportunities we can exploit for
competitive advantage
To put actionable information into the hands of
operators
To help us to optimize our operations
To uncover trends that impact future objectives
To report the results of our business activities
To help us manage our relationships with
consumers
To help us to plan and execute more effectively
The Three Most Important Uses of Data
RSR Research, January 21014
29. A More Scientific Enterprise
29
37%
42%
43%
53%
66%
52%
47%
51%
37%
30%
11%
10%
7%
10%
4%
Lifecycle price optimization
Localized assortments
An optimized, end--to--end merchandising lifecycle
Unified pricing, promotion and assortment modeling
Retail Forecasting (demand forecasting, forecasting for
replenishment, etc.)
Importance to Your Retail Success
Extremely Important Somewhat Important Not Very Important
Source: RSR Research, September 2013
You can’t get any of these things without sophisticated analytics
30. Improve and Transform
Merchandising Processes
30
19%
22%
24%
24%
28%
38%
40%
42%
46%
Merchant--oriented workflows and automation
Localized promotions to better match demand against
available inventory
Shifting to a holistic pricing, assortment and promotion
decision--making process
Consistent, accurate and detailed demand forecasting
platform
Improving our ability to adjust to deviations from sales
forecasts
Tailoring assortment to customer preferences
Price and markdown optimization to boost sell-through
Integrating planning with cross--functional teams
Better incorporation of customer segmentations &
preferences into the planning process
Top Three (3) Opportunties to Improve Merchandising
Processes
Source: RSR Research, September 2013
31. Simplifying Data Presentation
31
55%
40%
55%
73%
63%
65%
For data discovery
For prototyping
For presentation to business users
Plans for presenting data in a visual, graphical
form (Data Visualization)
Winners (Have/Implementing) Laggards (Have/Implementing)
RSR Research, January 21014
A majority of survey respondents want/need simpler tools.
• A shortage of “analyst” talent
• A pre-requisite to democratization across the enterprise
32. Thank You!
Paula Rosenblum
RSR Research
prosenblum@rsrresearch.com
Further Information on
Products & Services:
info@rsrresearch.com
www.rsrresearch.com
34. JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
Omnichannel Customer
Success
BRION REUSCHE, PRINCIPAL, RETAIL INDUSTRY, JUNCTION SOLUTIONS
35. Agenda
§ About Junction Solutions
§ Strategies to Achieve Omnichannel Success
§ Simon Pearce Case Study
§ Path Forward to Omnichannel Retail Success
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
36. About Junction Solutions
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Founded in 2002
§ Provides solutions supporting Microsoft® Dynamics AX platform
§ Implementation Services
§ IT and Operational Consulting
§ Flexible Delivery Options: On-premise, Cloud, Hybrid deployments
§ Hundreds of successful ERP implementations
§ 90% of Junction Solutions customers would recommend us to a
friend or colleague
37. Strategies to Achieve Omnichannel Success
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Develop a long-term plan to promote omnichannel
§ Invest in technology to connect customers via multiple
channels
§ Optimize integration to enable end-to-end visibility
required for an omnichannel business model
38. Develop a Long-Term Plan
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Gather input from managers
involved in each touch point of
customer experience
§ Evaluate current strategies,
operations, supply chain,
technology assets and processes
§ Identify opportunities for
improvement & growth
§ Adapt a business model to support
evolving needs of customer
39. Why New Technology Investments are
Needed
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Are your systems more than 7
to 10 years old?
§ Does your system lack
integration capabilities that
promote organizational silos?
§ Are there numerous
customized applications to
compensate for substandard
performance from your legacy
systems?
40. Why New Technology Investments are
Needed
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Do you lack total visibility from the register to the
warehouse?
§ Do you trust the accuracy and timeliness of your data?
§ Are you relying on numerous time-consuming manual
processes and Excel spreadsheets?
41. Prioritizing Technology Investments-ERP
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Replace outdated legacy systems with a flexible and
scalable retail ERP system to support customer-centric
processes
42. Prioritizing Technology Investments - BI
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ BI integrated with ERP can harness Big Data into
actionable intelligence
§ BI integrated with ERP enables faster information
access than BI used alone*
§ Improving data analytics was leading technology
initiative for companies in 2013**
*Aberdeen Group, “ERP Plus BI,” June 2012
**Forrester Research, “Best Practices: Maximize your Changes of BI Success,” July 24, 2013
43. Benefits of BI
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Analyze customer data to incorporate into channel
operations
§ Make better predictions, decisions and adjustments in
real time
§ Integrate with personalization tools to ensure
customers see available products and content that is
relevant in real time
44. Prioritizing Technology Investments-
mobile, ecommerce, and social media
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Disruptive technologies that transform how retailers
interact with customers
§ Consumers increasingly rely on ecommerce sites to
research products, price and availability
§ Mobile devices revolutionizing how retail staff deliver
service at point of sale
§ Social Media offers key outlet to promote products and
analyze consumer opinions
45. Optimize Integration
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Unify operations to one open enterprise platform to
minimize number of integration points
§ Reduce number of disparate legacy applications
§ Select a system with comprehensive functionality to
minimize customizations
47. Challenging the Status Quo-ERP is costly
and Monolithic
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
Reality:
§ Some ERP systems are specifically designed for
multichannel retailers requiring virtually no costly
customization
§ A single comprehensive ERP costs less and is more
secure than numerous disparate systems
48. Challenging the Status Quo-Fear of Failure
and Business Disruption
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
Reality:
§ Experienced IT partners can implement change
management and technologies in months not years
§ Consultants’ expertise can assure virtually no
disruption to business
§ Ease of use facilitates training and speeds time-to-
benefit
50. Simon Pearce
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Specialty retailer and manufacturer of
beautiful hand crafted glass and pottery.
§ Produces more than 450,000 pieces of
pottery and glassware each year.
§ Operates five different channels
including retail stores, catalogue, online
store, a corporate award business for
personalized merchandise and a
wholesale business.
51. Simon Pearce: Business Challenges
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Lack of visibility throughout its channels
§ Numerous time-consuming manual processes
§ Unable to access real-time product information
§ Inefficient shipping processes
§ Manual processes in special orders led to inaccuracy
and delays in information access
52. Simon Pearce: Solution
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Junction Solutions provided implementation services
and business consulting
§ Implemented Microsoft Dynamics AX for Retail,
Dynamics AX for POS and related retail applications
§ Integrated Dynamics with their key point solutions
53. Simon Pearce: Benefits
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Improved order turn time
§ Customers now can view product
availability in real-time, increasing
customer satisfaction
§ Order taking and order fulfillment
is seamless in every channel
§ Eliminated manual processes
§ Improved efficiency in shipping
54. Path Forward to Omnichannel Success
JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
§ Work with an experienced IT or Consulting Partner
§ Incorporate change management to fully exploit new
technologies and promote channel transparency
§ Focus on Integration in selecting technology and
implementing
§ Continue to identify opportunities for growth
55. JUNCTION SOLUTIONS FOR THE RETAIL INDUSTRY
Omnichannel Customer
Success
BRION REUSCHE, PRINCIPAL, RETAIL INDUSTRY, JUNCTION SOLUTIONS
56. SERIES
ConsumerConnected #CCS14
Q & A // Panelists
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Brion Reusche
Industry Principal, Retail
Junction Solutions
Paula Rosenblum
Managing Partner
RSR Research
57. SERIES
ConsumerConnected #CCS14
10
Thanks for attending!
Don’t miss the next session:
APRIL
Endless
Aisle:
Virtual
Merchandising
In
An
Omnichannel
Marketplace
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