How to be a Retailer of the Future

Transcription

1 How to be a Retailer of the Future

2 Barry Lederman Senior Business Analyst, VP of Business Development Softengine/SAP Partner Gil Lasman General Manager Softengine/SAP Partner Barry Lederman: Gil Lasman:

3 Outline: What We ll Cover Today o Where is Retail Today o Retail Businesses Continue to Face Challenges o Where Retailers Need to Be o The Omnichannel Shopper o Inventory Visibility and Order Fulfillment o Mobility o Payments o How Retailers Can Get Where They Need to Be o Retail POS System o Integrated Platform o Mobility POS o Wireless Network o Payment Technology o Loyalty Programs o Data Analytics Programs & KPI s o Q & A How It Applies to Goodwill

4 Where is Retail Today It s All About The Customer Most transactions are still completed in brick-and-mortar stores - PwC Survey % of consumers use technology during the shopping process - MasterCard 2016

5 Where is Retail Today It s All About The Customer Expectation is to match online experience Convenient Personal Easy to Use

6 Shopper Expectations: Online vs. In-Store 71% 71% of consumers said they agree or strongly agree with the statement that they find shopping online more convenient than in a store. Consumers find the online experience more personal likely a result of receiving more personalized offers Consumers feel that ordering and delivery options are superior online compared to in store ease of use Convenience Ease of Use Personalization Online is more convenient than in-store

7 Retailers Continue to Face Challenges: Omnichannel Experience Not Consistent Inventory Visibility & Order Fullfillment Mobility Payment Technology

8 Where Retailers Need to Be To win consumer loyalty and achieve growth across all channels, retailers must enhance their mobile commerce offerings and improve the in-store shopping experience. - Accenture 2015 Consumer Survey

9 Where Retailers Need to Be Omnichannel S Smooth Not Smooth Not Shopping Experience, In Store vs. Online

10 Where Retailers Need to Be Inventory Visibility Each consumer's best experience anywhere sets their minimal expectation everywhere. - Greg Girard, IDC Retail Insights What you might call "have it your way" fulfillment is a good example. The consumer thinks, "if Amazon can give me so many fulfillment options, including same day in some markets for some categories, why can't other retailers?"

11 Where Retailers Need to Be Inventory Visibility ecommerce In store In transit Warehouse Inventory Fulfillment & Mobility A single view of stock makes customer service faster, more efficient and more informative

12 Where Retailers Need to Be Payment Technology Prevent fraud across all sales channels while maximizing merchant order conversion Conduct Fraud assessment prior to payment authorization preventing losses Keep cardholder data and their networks safe Be PCI Compliant

13 How Retailers Can Get There Where They Need to Be Integrated Retail POS System Integrated Platform ERP, WMS, ecommerce Mobile POS Wireless Network Payment Technology Loyalty System Data Analytics Programs

14 How Retailers Can Get There Where They Need to Be Integrated Platform

15 Integrated Platform Inventory Fulfilment: Single View Of Stock Typically 60% of retailers entire stock is safety stock Moving to a single stock pool reduces this by at least 20%

16 Integrated Platform Moving To A Single Stock Pool: The Benefits Merchandising Unify planning Plan sales and margin by hierarchy Tailor promotions by channel Inventory Address when demand is anticipated Visibility of stock despatch Reduce shipping costs

17 Integrated Platform Single Stock Pool: Locate Stock Across Stores Avoid merchandise stagnancy and stock-outs Savings in merchandising costs Single version of merchandise status Better warehouse management Consistent customer service, in whichever channel they prefer Avoid store-as-showroom syndrome

18 Mobility POS - Home Depot: Help Shoppers Locate Inventory, Virtually The Home Depot mobile app helps shoppers find product in stores faster through augmented reality, visual search and real-time inventory availability.

19 mpos - Lowe's Dives Head-First Into Associate Mobile Implementation "Associate usage of these devices is up; I don't have to preach adoption. It saves them time and allows them to be more educated about our products. - Jay Deaton, Director of Operation Support, Mobility and Information Services at Lowe's

20 How Retailers Can Get There Where They Need to Be Payment Technology NFC - Near Field Communication Mobile Wallets Apple Pay Samsung Pay Google Pay Quicker Alternative

21 How Retailers Can Get There Where They Need to Be Loyalty Programs Integrated Loyalty Programs Cards Digital Higher Revenue (20%) Redemption across networks Digital Marketing

22 Digital Loyalty: Paper Is Dead! Long Live Digital! A robust digital pass application can help retailers give their loyal customers more timely rewards Consumers didn t use loyalty points before the expiration date Often forget to use paper coupons they receive in the store Often forget to use loyalty cards in their wallet Have so many loyalty cards that they find it hard to remember where they are a member

23 When it comes to loyalty, more consumers are looking for digital delivery. 42% 30% Even among shoppers who are 55+, there is less interest in paper -- 47% would prefer ed loyalty offers to paper coupons. Want loyalty offers sent to their Want loyalty offers sent to their mobile device

24 Pie Five: Updates Loyalty Program To Target Millennials With its "Circle of Crust" digital rewards program, Pie Five has grown same store membership by 90% since 2013.

25 Personalization: Increase Offers In/Near The Store The store is clearly a big area of opportunity for retailers to improve their personalization efforts 44% Desire personalized loyalty offers sent directly to their smartphone with geofencing when they enter a store

26 Tom's of Maine and Raven + Lily Personalize The Shopping Experience In Innovation Showcase Interactive displays and RFID-embedded products and store fixtures help personalize messages and product suggestions for shoppers.

27 Understanding The Omnichannel Shopper 68% of shoppers said it is important that retailers have one view of them as a customer both from online and in-store shopping history 22% say they would like stores to know more about how they shop online and track purchasing habits so that they can improve service

28 How Retailers Can Get There Where They Need to Be Data Analytics, KPI s Data Analytics Programs Real Time Better Decisions KPI s (Key Performance Indicators) Retail Sales per Square Foot Average Purchase Value Incremental Sales due to campaigns Customer Lifetime Value (CLV)

29 How Retailers Can Get There Where They Need to Be Be Trusted Organization Ethics Superior Customer Service Transparency Traceability Security of Data Build Relationship Post-Sale

30 How Retailers Can Get There Where They Need to Be Retain Your Customer Customer Lifetime Value (CLV) Infographic from Retention Science

31 Where Are Goodwill Agencies Today

32 About Softengine & SAP

33 About Softengine & SAP SAP Gold Partner Developer of SAP Business One - Goodwill Suite - modular system POS, WMS, Production, Financials, Procurement, HR, Payroll predesigned to plug into each other pick the module to start with like a Lego" system Gain process efficiencies in all areas, including loss prevention

34 Major Gains for Goodwill Industries Treating Donated Goods as New Goods Smart Label Barcoding Individual Pricing (Think 1% increase and ROI) Faster, Accurate, Secure Checkout Integrated POS Real Time Retail Accurate Inventory Single View of Stock Higher Productivity Real Time Financials = Fire Prevention Roundup at Checkout

35 Thank You! Download Session Slides and Notes: Session Presentation and Notes