Loss Prevention, Auditing & Safety Conference 2009

Transcription

1 Loss Prevention, Auditing & Safety Conference 2009 Title Sponsor:

2 Selling Secrets that the Industry Hasn t Told You Paul Jones, Dennis Klein, & Tim Fisher

3 Current Crime Trends Crime is on the rise Retailers will buy intelligent, effective solutions

4 Shrink Losses in 2008 vs % of companies experienced a reduction in shrink 45% of companies experienced a reduction in internal 63% of companies experienced a reduction in external % of companies experiencing an increase in shrink 45% of companies experiencing an increase in internal theft 81% of companies experiencing an increase in external theft 0% -20 % -40 % -60 % -80 % shrink $ Internal $ External $ 100% 80% 60% 40% 20% 0% Shrink Internal External

5 LP Payroll Budgets 2008 vs % of companies reduced LP payroll % of companies increased LP payroll 2008 * Store payroll was reduced at many of these same companies

6 LP Budgets 2009 vs % of companies anticipate an increase in LP payroll 54% of companies anticipate no change 9% of companies anticipate a further reduction

7 Capital Spend 2008 vs % of companies reduced their LP capital 2009 vs % anticipate more capital in 2010

8 What Does This Mean? Possibly more shrink in 2009 Companies will make some adjustment in LP payroll Companies will make significant adjustments in LP capital (72%) Assumption: LP leaders intend to leverage technology to deliver their shrink for 2010

9 Return On Investment 80% of companies depend on hard number shrink reduction as the primary driver for ROI as their first measurement 20% of companies rely on reduction in expenses - write offs (fraud, risks, and cash payroll)

10 Top 3 Challenges To Obtain Funding Lack of defensible ROI IT support Business support

11 Other Tidbits 72% of companies plan their budgets September through October 80% of companies have approval in November 80% of companies gain approval by CFOs 20% of companies gain approval by committees Approximately 80% of LP leaders gain approval for their requested capital

12 Other Tidbits 90% of companies do not have a solution provider selected prior to capital budget submission 70% of companies would consider purchasing a non-budgeted solution if the project met internal ROI 80% of the capital will be used for new solutions

13 The LP Leader Highly accountable Managing a broad portfolio of risks Doing more with less Less available time and resources Have capital to invest in

14 Feedback to Solution Providers SP understand my issues: No 46% Yes 64% SP do enough work to help me sell their solutions: No 30% Yes 70% SP have skin in the game: No 53% Yes 47% SP changed based on our new reality: No 50% SP provide ROI support: Fair 70% Good 30%

15 What Are LP Leaders Interested In? EBR- Dashboard- Enterprise Loss Prevention Solution Video Analytics Refund Management Awareness Programs IP Video

16 Selling Secrets It is about hard $$ ROI Shrink reduction and expense savings If you can not clearly demonstrate your ROI for your solution, don t bother making the appointment Soft savings are nice but not relevant in the decision 70% of LP leaders believe SP need to do more to help justify and support the ROI Prepare clear verifiable ROI for your solutions Utilize case studies and white papers Work with the LP Research Council to verify solutions and concepts Document test and learn scenarios

17 Selling Secrets Prepare a presentation and collateral that may be used by the LP leader to support their internal selling of your solution Invest time and dollars into to your presentation that you may have otherwise invested in entertainment in the past Keep in mind that LP leaders have less time and resources and a higher level of accountability than ever before Help them sell your solution internally

18 Selling Secrets Learn and understand as much about the companies current business and industry trends Attend the sessions and stay current Participate in the LPRC Use social networking sites Ask to travel to their stores and see their issues firsthand Understand their LP strategic plan

19 Selling Secrets LP executives would enthusiastically embrace selling solutions where the solution provider shares in the risk and reward as a vested partner Visit Chief William Bratton & Brad Brekke, VP of Target Corporation, to discuss public-private partnerships. Prepare to sell to this channel as well, as it is an emerging trend across the industry.

20 Need for Change Brand L. Elverston Director, Asset Protection Systems & Analysis Walmart Stores, Inc.

21 Need for Change Customer!!! Shopping experience!

22 Path Forward Horizons Subcommittee Pursuit of technology Fewer mechanical devices Recruit think tanks Improve solution set/options Recruit non-traditional solution providers Change is Required

23 Why This Discussion? Consultant Retailer What are retailer s specific business needs? Be innovative in operations and service Need better understanding of pain points for specialized product development Is current technology being employed effectively? SUPPLIERS RETAILER Looking to drive technology development for the industry Competitive Dynamics require new solutions Opportunity to close the Gap between the needs of the Customer and development of next generation of product/service offerings using a data centric methodology

24 Path Forward Internal study Identify gaps Identify pain points Formalize business requirement/solution specs Bottom line improve shopping experience, advance theft deterrence scope

25 Project Scope and Deliverables Determine pain points within business processes - Objective Use a Six Sigma based methodology with a focus on three distinct areas: 1) process, 2) user experience, and 3) technology requirements Identification of pain points Proposed Outcome Use of existing technology to help improve operational efficiencies/effectiveness Share methodology and learnings with the retail industry, and partner with technology providers to develop consistent, innovative solutions

26 Questions?