Retail Technologies Highlights from NRF
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1 Retail Technologies Highlights from NRF January 29, 2014 Patrick Connolly Senior Analyst Location Technologies
2 Hot Topics at NRF
3 Table of Contents Case Study: First Omni-channel Stores Growing Importance of Mobile/Smartphones Role of Staff Dynamic Pricing ibeacons/ble Location Next Generation Indoor Location Technologies
4 Macy s The First Omni-channel Store
5 Macy s: 5-year omni-channel strategy QR codes/nantmobile Indoor navigation app:10% of customers RFiD: Inventory management Staff ipads Store-based fulfillment shopkick/ibeacons Target: Showrooming/price matching Staff ipads: Price matching Technology Innovation Center Social Integration: Popular on Pinterest, Target Awesome Shop Dynamic pricing by day, time, customer, weather, use-by date, etc. JCPenney: A lesson to be learned
6 Mobile, Mobile, Mobile. Mobile!
7 Customer Acceptance of Mobile Shopping Increasing 80% of smartphone users in the United States have downloaded a shopping app 84% use smartphone in-store 50% increase in median basket size Benefits: Create a measureable link between online and bricks & mortar channels Streamline offers/coupons, mobile payments, loyalty programs Present opportunity to help gain control over in-store Internet usage Enables new levels of analytics tools Increases customer engagement and shopper marketing opportunities RoI Analysis: Increase customer spend through targeted offers, coupons in aisle Increase loyalty with integrated loyalty programs, app reminders Increase basket size through brand upselling, product location Attract new customers through proximity marketing
8 Smartphone Applications: Utility: Shopping list, prescription refill, flight gate alerts Navigation Local search, product discovery, product information Social media integration/interaction, recommendations, check-ins Coupons/offers, rewards Mobile POS, ticketing Staff Tablets: Inventory check-up Price comparison Product information Mobile POS Indoor Location Staff Mobile App Product/Digital Signage Interaction: Proximity alerts, offers, information Scans, QR codes, downloads Active showrooming Customer Experience
9 Location-enabled Mobile Shopping App Forecasts 1,600 (Millions) 1,400 1,200 1, RoW Asia-Pacific Europe North America Branded Apps: Meijer, Walgreen s, Macy s, Target, BestBuy, Walmart, Starbucks, etc. Over-the-top Apps: shopkick, Shopular, RedLaser Shopping List: Aisle 411, Point Inside, Grocery iq Local Search: ebay, Amazon, Google, Yelp, Foursquare Daily Deals/Offers/Coupons: Groupon, Coupons.com, LivingSocial, RetailMeNot SMS Alerts: O2 Priority Moments, AT&T deals, Orange France
10 In-store Analytics and Marketing Customer Insight Examples/Recommendations: 50% visited one in-store location and left without buying identify time/day/section and optimize staff to intercept and convert 60% stayed within 30% of store-consider new layout/which brands are most popular 15% hopped lanes streamline POS by time/day/week Install and integration fees 20% purchase 1 to 2 items increase basket size by catering to these users by day and time
11 Retail Indoor Location Analytics Deployments 350, , ,000 Other Shopping Center Malls Universities/Educational Institutions Sports Venues/Stadiums (Actual) 200, , ,000 Hotels/Resorts Airports Small Retail Stores Dining/Beverage Food and Grocery 50, Large Retail Stores - DIY/Warehouse/Electronics Clothing
12 Staff
13 Employee Devices Multiple Options Mobile POS Reduced Lines Influence at Point of Decision Omni-channel Sales Inventory Look-up Online Sales Active Showrooming Price Comparison Price Matching Improve Customer Experience Rapidly Respond to Qs Increase Sales Empower Staff Efficient Management Improve Brand Perception
14 Technology Requirements: Staff Application: time management, inventory, alerts Tablets, smartphones (perhaps BYOD?) Wi-Fi/mobile coverage Integration with back-end systems Mobile POS, integration with loyalty applications Analytics/performance Staff optimization tools, e.g., IBM DSO
15 Dynamic Pricing
16 New Technologies: Graphical digital displays Centralized management platform Data and pricing analytics New Capabilities: Real-time price matching/display Dynamic pricing by day, time, customer, weather, use-by date, etc. Showrooming is a positive Built-in location capabilities Potential Issues: Customer perception Customer behaviors Algorithms
17 ibeacons: The Long Tail
18 BLE/iBeacons: Qualcomm Retail ilnside (previously WirelessWERX) BestFit Estimote Zebra Technology (Zatar IoE platform) Data Display Inc. (integrated into digital pricing labels) shopkick (American Apparel rollout) GPShopper StickNFind
19 Bluetooth Indoor Location Installation Forecasts 200, ,000 ROW 160,000 Asia-Pac (Actual) 140, , ,000 80,000 60,000 40,000 20,000 0 Europe North America Breaking 20,000 stores in 2015 Already moving into nationwide store deployments in the United States Potential to be much stronger if taking all implementations into consideration
20 Next Generation Location Technologies
21 Magnetic Field LED/VLC Audio/Ultrasound: Verifone Sensor/Data Fusion: CES, big trend Next-Gen BLE: Quuppa Next-Gen Wi-Fi: Cisco, Qualcomm, IBM, etc. 3D Cameras/Facial Recognition: NEC/Microsoft, IBM, Panasonic
22 LED/VLC Indoor Location Installation Forecasts LED/VLC Active Handsets 200 (Millions) Zero costs at handset or infrastructure Ubiquitous sub-meter accuracy Tight integration with ibeacons, sensor fusion, etc.
23 Thank you! Patrick Connolly Senior Analyst Location Technologies
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