Jason Lobel. CEO & Co-founder SwiftIQ

Transcription

1 Jason Lobel CEO & Co-founder SwiftIQ

2 Making Retail Smarter via Insight Automation & Machine Learning

3 Using Data to Grow EBITDA Feels Good. You Can Do This!

4 SMARTER OPERATIONS LARGER BASKETS HIGHER PROFITS Cell: THE FASTEST, MOST ADVANCED INSIGHTS AND VENDOR COLLABORATION PLATFORM FOR CONVENIENCE RETAIL

5 Advanced Insights & Data Collaboration Platform 6 Top 20 C-Stores Independents > 20 Stores + $100B in Receipt-Level Transaction Data Unify Disparate Data & Mine Billions of Records in Seconds 2016 & 2017 Vendor of the Year Key Recognition

6 Today s Topics 1. Amazon s Agility & Innovation 2. Noteworthy Data / AI Use Cases 3. The State of Analytical & Engineering Talent 4. The Value of Transaction Data 5.How to Lead with Data & Collaboration

7 AMAZON IS COMPETITIVE EVERYWHERE Best-In-Class Data Accessibility as a Platform Granular Measurement & Automated Insights Automation/AI from Supply Chain to Store to Digital Substantial Cost Efficiencies Great Customer Experiences

8 Anyone Who Doesn t Do {This} Will be Fired Have A Nice Day!

9 APIs Facilitate Amazon s Best-In-Class Data Accessibility In ~2002, Bezos sends memo to all employees mandating they expose their data through application programming interfaces (APIs)

10 APIs Help Amazon Innovate & Bring Costs Down External Value of APIs Source: Amazon.com

11 Applications Feed Robots to Power Supply Chain Automation Amazon Acquired Kiva for ~$775mm in 2012 In Jan 2018, Amazon had over 100,000 robots >2x more than Jan 17; 5x more than in Jan 2016 Reported 20% productivity increase

12 Now Create Automated Ordering with Just 10 Lines of Code! Key Benefits API = Partners = Accelerated Growth

13 How Are Our Peers Using Data & AI to Create Value?

14 2009 debut Crowdsource New Product Development Source:

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16 Artificial Intelligence Initiatives

17 AI in Supply Chain

18 AI in Shelf Management Walmart testing inventory-scanning robots in 50 stores Scan shelves for out-of-stocks, misplaced/ mislabeled items, and incorrect pricing Reported 50% more productive than human counterparts 3 times faster vs store employees who have time for 2 scans per week Robots proved to be more accurate Source: Walmart, Reuters

19 Automation / AI in Pricing Electronic Shelf Labels are prominent in Europe Do not be surprised if this leads to dynamic price optimization Source:

20 AI to Personalize Billions of Recipes Data Input Personalization Web behavior History Product catalog CRM Segments Logic Exclusions Digital Coupons Other

21 AI for Mobile Audiences Receipt-Level Data Mobile Device Data Location (lat/long) Location (lat/long) Timestamp (date and time) Tender (Cash, Credit, Debit) Timestamp (date and time) Mobile device identification (IDFA, AAFA, WAFA) Loyalty (if available) Products (SKUs)

22 Automation/AI is Complex Requires Vigorous Testing & A Long-Term Commitment Source:

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26 Finding Analytics/Engineering Talent is Tough for Retail/CPGs Data Science & Analytics: Demand by Industry

27 To Start Food Retailers Need Decision Automation in Stores

28 HOW MUCH REVENUE WILL YOU GENERATE IF 10% OF YOUR CUSTOMERS BUY ONE MORE ITEM?

29 Building Blocks of Insight Automation MEASURING ROI (promotions, displays, coupons, etc.) SMARTER ASSORTMENTS based on revenue and full value to store OPTIMIZING BUNDLES to maximize promotion success ENRICHING DATA to optimize analysis and maximize insights REPORTING PERFORMANCE to achieve sales and market share objectives TRACKING NEW ITEMS to analyze their performance

30 Insight Automation = Answers in Seconds or Minutes

31 Receipt-Level Data is the New King Current Weekly Sales Location Product Customer ID (if available) New Basket Tender Timestamp Source

32 Can You Measure ROI.to Item? Category? Retailer?

33 How Do You Test & Measure a Hypothesis Rapidly? Should We Add Coolers? Measure Test vs Control

34 What Drives Assortment Value: Revenue or Basket? Do you understand destination items and their incremental value? Item 1 has 14% higher basket value per trip ($9.29 vs. $8.14). Item 2 has 5.9% more total revenue and customers spent 19% more than item 1 Laggards (Shrink/Remove) Opportunities (Grow) Item 1 Revenue: $4.32mm # of Baskets: 1.07mm $ per Basket: $9.29 Avg. $ Basket (Item): $4.04 Avg. $ Basket w Item: $5.25 Sales w Item: $5.6mm Item 2 Revenue: $4.58mm # of Baskets: 1.39mm $ per Basket: $8.14 Avg. $ Basket (Item): $3.31 Avg. $ Basket w Item: $4.83 Sales w Item: $6.7mm

35 How Do You Think About Item Relationships? Most Unique Categories Fresh Fruits Gum Nuts/Seeds Salty Snacks % 377.1% 328.8% 231.9% Nuts/Seeds Gum Salty Snacks Snack Cakes 264.6% 223.5% 178.8% 70.2% Affinity Index = A measure of the unique strength of relationship between the item and the category

36 Item Relationships Can be Optimized for Shopper Missions v v Purchases peak in Summer On weekends Starting morning till the afternoon

37 Are You Optimizing Each Category/Item by Season/Day/Hour? Sandwich & Slide + 6 Pack Bundle Take Home Pizza + Multi-Pack Bundle Salty Snacks + Single Tornado or Hot Dog + Single

38 Do You Utilize Loyalty/Tender Data for Smarter Marketing?

39 Can You Deliver Contextually Relevant Marketing? Lottery is a destination; text Saturday AM & when jackpot is >$500mm $1,600 Powerball Prize $1,400 $1,200 $1,000 $1,500 $800 $600 $700 $570 $400 $200 $0

40 Amazon Drives Costs Down

41 Amazon Drove Down ecommerce Costs

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43 Storing and Processing Data is Not Expensive Cloud providers have eliminated cost and processing barriers

44 Data Costs Are Expected to Approach Zero

45 How Valuable is My Data?

46 Raw Data Even if Clean Has Limited Value Most convenience data needs substantial enrichment Data on its own has limited value because it is not always usable Lacks Metadata Inconsistent PRODUCT ATTRIBUTES Attributes to discover patters Value is most driven by insights and decision automation from clean, enriched data

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48 Suppliers Can Provide Huge Value Augmenting Your Data Monetizing Data = Enrichment & Engaging Suppliers PRODUCT ATTRIBUTES Attributes to discover patters SPACE / PLANOGRAM to achieve sales and market share objectives SHIPMENTS Identify inventory, and better manage working capital

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50 Walmart Shares Data; Expects Operating Excellence Walmart hoped to add $1 billion to revenue by improving product availability at stores. In 2017, Walmart wanted orders delivered on time 95% of the time Large suppliers were notified they must deliver full orders within a window by 85% or face a 3% fine Previously, these suppliers had to hit a 75% threshold Smaller supplier delivery rate will move to 50%, up from 33%

51 How Will You Use Data & Automation to Drive Down Costs?

52 Key Takeaways 1. If Data is Not Clean & Accessible You Are Less Agile & Competitive 2. Amazon Is Reducing Costs; Decision Automation Reduces Cost 3. AI is Complex; Take Small Risks & Test With A Long-Term Commitment 4. Engineering/Analytics Talent is Hard to Find; Plan to Outsource 5. You Cannot Apply AI if You Do Not Have Basic Insight Automation 6. Receipt-Level Data is the King for Measurement & Activation 7. Data Sharing is Caring!!! Suppliers Have Value to Offer!

53 Jason Lobel CEO & Co-founder SwiftIQ