TABLE OF CONTENTS. Contents SVOC - AN ENHANCED VIEW INTO CUSTOMER BEHAVIOR JUNE 2013

Transcription

1 JUNE 2013

2 TABLE OF ONTENTS ontents Single View of -An Overview 4 Key Drivers for Single View of 4 HL s approach for SVo 5 HL Solution Overview 5 Business Benefits for the Retailers 8 onclusion 9 Authors 9 About HL 10 2

3 onsumer buying behavior has been constantly evolving over the years. However, what the retailers are witnessing today is a paradigm shift in the buying behavior and a significant increase in the rate of change. This shift in consumer buying behavior is because of the increased adoption of technology to research a product, access product reviews, compare prices and product features, and identify best deals and discounts. In addition, the proliferation of websites, mobile apps, and social media sites etc. have simplified the process of hunting down information. Generation Y GenY becomes a fan of the retailer visits a store to pick up chosen brands adds new products to order in web / mob apps now recieves promos / loyality bonus offers recieves coupons for multiple (QR, NF, Online) brands brand choice not available in the store signs guest book recieves coupons modifies order through mobile downloads enrolls mobile apps from to royalty program app store, creates shopping list in mobile apps requests for store availability checks out,redeems / loyality points using mobile changes order to store pickup shops online checks out online, earns rewards ontact centre directs customer to the store with preferred brands completes the visit & buys merchandize looks store inventory through mobile app / website Repeat Purchasing Loop Data Integration Figure 1: Multi-hannel/ Multi-Brand Journey A Scenario Armed with this information, consumers have become more demanding and less brand loyal. Therefore, retailers are finding it a challenge to acquire and retain customers. In fact, customers often shift their allegiance to a competitor because of reasons like: Poor customer experience Failed transaction at the first attempted channel Better customer experience In this competitive business environment, retailers stand to lose approximately $300 with each truncated customer relationship. In order to stay ahead of the competition retailers have to develop customer-centric business strategies by enhancing their ability to analyze the latest trends and anticipate future consumer buying behavior. As a result, it has become imperative to have a run-time analysis. To facilitate such advanced analysis, retailers need to have a Single View of i.e., a single platform to track the various interactions between a customer and the retailer occurring across all touch points/channels. 3

4 Single View of -An Overview Single View of (SVo) is a complete, uniform and transparent view of the interactions across all the touch points between a customer and the retailer. This view would provide the retailer a single and accurate source of truth about the buying pattern and the demographics. SVo enables retailers to analyze and predict customer-buying behavior, which in-turn helps them to streamline and optimize merchandizing, pricing, promotion and marketing strategy. Therefore, SVo provides the platform for retailers to build their customer-centric business strategies. Key Drivers for Single View of Lack of SVo poses challenges starting from strategic planning to execution of day-to-day operations. Some of them are: Single Version of Truth No single consolidated view of the customer attributes do not have a standard definition ross Domain Relationships Relationships across multiple domains such as -to-item, -to-location are not tracked The information is spread across multiple systems Unique Identification of Lack of defined process for uniquely identifying a customer across the organization Process and Workflow setup process spans several departments and systems No consolidated view of the process Data duplicated across multiple systems Data Quality Incorrect customer addresses in non-standardized format Lack of duplication identification/validation process Governance Insufficient audit and logging of changes to master data Improper user rights management ritical customer data modified without notifying impacted departments Transfers/Mergers Delayed transfer/merger process 4

5 PK olumn5 olumn1 olumn2 olumn3 olumn4 olumn6 olumn7 ontact Details PK P Address hone Number Address PK A Address1 ddress2 Extended Attributes PK A A A A Attribute1 ttribute2 ttribute3 ttribute4 ttribute5 SVO - AN ENHANED VIEW INTO USTOMER BEHAVIOR JUNE 2013 HL s approach for SVo HL s Retail and PG Solution team has been diligently following the trends in retail industry and they are of the opinion that retailers have to become customercentric or they will have to contend with the threat of losing market share. This is not only true for large retailers but also for medium and small retailers. expectations, preferences and buying trends will be the core business insights for devising the future business strategies by retailers. analysis will not only provide key inputs for strategic decisions but also helps in streamlining operations to provide a uniform and enhanced customer experience. Given this background, HL s SVo approach encapsulates HL s understanding, expertise, thought leadership, and leverages the evolving technology landscape to overcome the challenges faced by retailers. Integrate ETL EIIE AI Govern Workflows Roles & Responsibilities Event Management Relate Hierarchies Affiliations & Relationship onsolidate ross Referring Source System Key Management Merging De-duplicate Deterministic Matching Non-deterministic Matching leanse Standardization Data Transformation Data Enrichment Integrate Master Data Model Meta Model Figure 2: SVo Building Blocks HL Solution Overview SVo is built on a combination of Service Oriented Architecture (SOA) and process orchestration layer. This will enable the usage of a flexible integration layer as a solution to cater to both the current and the future scenarios, and will encompass the following key aspects: 5

6 Solution built on Open Source tools for Database, Master Data Management, Enterprise Service Bus and Portal entral database based on the customer data model Initial customer data load from customer database Real time data synchronization Data quality management Business and data rules identification and management Data standardization and cleansing of personal and address data De-duplication of customer data by enforcing business and data rules at various touch points ETL (Extract, Transform and Load) and data quality Real-time services to manage customer data Audit customer data to ensure data accuracy Marketing / -entric Model Enhanced single view of customer Portal services: Incorporation of mash up applications Web application integrator Data Merging / Unmerging Services Rules onfiguration reate / Read / Update / Delete Services Data Standardization/ leansing/ Matching Services Rules onfiguration Internationalization: support many languages out-of-box Theme customizer Data onsolidation Engine Data Management Data Quality Engine Auditing services and Reports Single view of customer Flexible access to the enterprise data and applications ommon Infrastructure Services (Logging, Audits, Security ) Flexible access to the external feeds or web data Stores all center Web sites Mobile commerce Loyalty Marketing and Branding Research and Surveys Social media Feeds Figure 3: HL Solution Overview 6

7 SVo key architectural tenets: Layered architecture: Gives the flexibility to build a loosely coupled architecture, which has the ability to scale up to any layer. In addition, communication across layers is not tied to any vendor specific protocol and open standards will be used for message exchange. Dynamic user interface: Has a content management tool, document and template repository to drive the screen flow on the portal. The underlying business process will govern the content and it will allow the user interface/ forms to adapt automatically to changing business requirements. Service orientation: In order to enable the long-term view of the enterprise, the plan is to implement the solution in alignment with the SOA. Service inventory comprises of different types of services, namely entity, task and utility services. Service reusability: The platform to host the services would follow the typical SOA governance principles to manage the service life cycle and to enable reusability. Usability: Web enabled rich user interface will enable intuitive user interaction with the business processes enabling better user experience and increased productivity. SVo key differentiators: Open source based solution with low cost of ownership Highly scalable and flexible to cater to future requirements Out-of-the-box services requiring negligible customization and lower cost of maintenance profile database allows definition of advanced business rules, validations, access rights directly on the model Ability to build workflow processes for managing customer data Powerful user interface for performing stewardship activities on customer data leading to effective data quality management 7

8 Business Benefits for the Retailers SVo enhances customer engagement activities by providing a better understanding of customer expectations, and identifying the most profitable customers requiring special level of service. Retailers can accurately identify profitable channels for marketing by analyzing the customer demographics. Optimum pricing and markdowns will be predictable across channels. As customers are exposed to different retail channels, having a single-view will help retailers to gain better insights into their activities across channels. Strategic issues such as store location, space planning, interests of the targeted customers, and sales forecast will be easier to address. Retailers using a single-view would be agile in understanding the factors affecting product assortment such as customer s taste, dominating brands etc. Retailers will be able to forecast the future trends in consumer buying behavior and thereby become customer-centric, deliver better customer satisfaction and witness increased brand loyalty. Merchandise Planning How much should I order for each category/subcategory/item? Which brands should I focus for the next year? What is the frequency in which I should replenish my items? Space Planning How much space should I allocate to each category? What are the optimum number of facings for every item? Who are my target customers? Should I make some changes to my space plan over weekends? Assortment Planning What styles/varieties do my customers prefer? How much of each item should I stock in my shelves? What brands should dominate my stores for each category? Merchandise Planning Space Planning Assortment Planning Engagement Multi-Brand, Multi-hannel Data Integration Strategic Planning Strategic Insights What is the best place to open my stores? What are the interests/likes of the people in this area? How much sales can I expect in the new store? Insights How loyal are my customers? Who are the 20% customers who contribute to 80% of the margin? What value do they expect when they shop? Marketing Management Price & Promotion Planning hannel Management Marketing Insights Who are my target customers? What is/will be the ROI on my marketing dollars? Which communication channel has the maximum customer reach? Pricing and Markdown Insights What is the optimum price of an item in each channel? How many markdowns should I plan for each category and at what time? What is the customer s propensity of to respond to promotions? hannel Management Insights Are certain categories selling well in a particular channel for certain reasons? What is the hit rate of my web site? Why do certain customers abandon shopping over the web? Figure 4: Business Benefits for the Retailers 8

9 onclusion Given the dynamics of consumer buying behavior, SVo enables retailers to gain a better understanding of customers and customer expectations. HL s Retail and PG Solution team proposes to build a solution using Open Source software platforms and applications. This would enable small and medium-size retailers to have access to solutions similar to those offered by expensive OTS (Off-the- Self) products, but at a better total cost of ownership. SVo will streamline the handling of customer data and enable retailers to transform customer service. The ability to analyze, including the hierarchy of social-relations of the customer, makes this an important tool for retailers to analyze a customer to the core. This analysis will serve as a feeder for better marketing, strategic and RM initiatives. However, at a customer touch-point, it is the service delivered which has a high impact on brand loyalty and hence it is essential to consider SVo as a strategic tool to facilitate better service to the customer. Authors Siddharth Dixit is a part of onsumer Services Solutions & Presales Team of HL Technologies. He has around 15 years of experience in Presales, onsulting & Package Solution Implementations in onsumer Services & Manufacturing ompanies Pradeep sharma is a Retail Business consultant currently working with HL s Retail & PG Vertical Solutions team. He has executed many business consulting assignments in retail and PG industry. His experience has been in Supply hain, Store Operations, Merchandize management, fresh item management, Point of Sale, store back office and e-commerce areas. He has conceptualized, developed and deployed solutions addressing business requirements and pain points of retailers across the globe. Amita Ardha is a business analyst with HL s Retail and PG consulting team. She has been part of ERP implementations and consulting projects in HL. urrently she develops and deploys domain specific solutions for Retail and PG clients. 9

10 ENGINEERING AND R&D SERVIES USTOM APPLIATION SERVIES ENTERPRISE APPLIATION SERVIES ENTERPRISE TRANSFORMATION SERVIES IT INFRASTRUTURE MANAGEMENT BUSINESS PROESS OUTSOURING About HL About HL Technologies HL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HL focuses on transformational outsourcing, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, onsumer Services, Public Services and Healthcare. HL takes pride in its philosophy of Employees First, s Second which empowers our 84,403 transformers to create a real value for the customers. HL Technologies, along with its subsidiaries, had consolidated revenues of US$ 4.5 billion (Rs 24,709 crores), as on 31st March 2013 (on LTM basis). For more information, please visit About HL Enterprise HL is a $6.2 billion leading global technology and IT enterprise comprising two companies listed in India HL Technologies and HL Infosystems. Founded in 1976, HL is one of India s original IT garage start-ups. A pioneer of modern computing, HL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (IT) products across a wide range of focused industry verticals. The HL team consists of over 90,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HL has partnerships with several leading global 1000 firms, including leading IT and technology firms. For more information, please visit