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5 Ways Data is Transforming the Future of Retail

Introduction

ConclusionGet on Board

Data Building BlocksPersonalizationMetricsTechnologyCreate a Roadmap

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CHAPTER 5:

Contents

As the retail landscape rapidly shifts, grocers transitioning to the digital environment are seeking innovative ways to successful customer engagement. Swift consumer technology adoption has created informed shoppers who expect to interact with retailers anytime, anyplace, anyhow.

Integrated commerce is on the rise. Massive amounts of consumer data is being generated, creating opportunities for retailers to craft seamless, personalized, memorable shopping experiences for shoppers, both offline and online.

This ebook explores how data, personalization, metrics, technologies and planning are key factors in transforming today’s retail store into the store of the future.

INTRODUCTION

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Data Segmenting

Integrated commerce generates massive amounts of data, providing retailers the opportunity to interact with shoppers in targeted and meaningful ways. But how is this data evolving in the retail landscape? The types of data generated are fundamental building blocks to using data effectively.

Today’s data is as dynamic and unique as the shoppers browsing for their items of choice, directing a grocer’s strategy. To ensure customer experiences are aligned with individuals’ shopping histories, retailers have to be responsive to nascent industry trends and implement new technologies such as in-store sensors and geolocation tools.

Transactional information was once the sole resource available to retailers in their search for customer insight. Now, merchants can also identify product data, customer data and store data to execute successful multi-channel marketing and operational programs.

This involves analyzing some ofthe following:

DATA BUILDING BLOCKS

Data can be seen as the fuel that drives interaction with shoppers. How data is collected, organized and utilized is critical to efficient personalized marketing campaigns.

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PRODUCT INFORMATIONsuch as UPC and price

STORE DATAincluding location and accessibility

SPECIFICS ABOUT SHOPPERSpurchase patterns, loyalty card, preferences

The types of data generated are fundamental building blocks to usingdata effectively.

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Customer-Centric Analytics

Focus on consumer-centric data will be the key differentiator for grocers leaping into the digital arena. Administering data analytics allows retailers to let their shoppers communicate their needs and preferences.

Analyzing how shoppers engage will help:

Evaluating how data is gathered, tracking it and implementing strategies accordingly is essential in discovering best practices in data analytics. Adopting retail technology solutions capable of capturing these data points and extracting the most value from their data will allow retailers to see transformative results.

What does this value look like, and how is it realized? In the next section, we’ll examine how these data resources can be used to deliver the personalized online shopping experience consumers want.

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· Inform on shopper attitudes, changing needs and preferences

· Allow for early detection and response to new shopping trends

· Enable customer service to readily adapt to new shopper needs

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Personalization

TAILORING THEUSER EXPERIENCE

Every grocer moving into the digital channels wants to deliver advanced customer engagements. How can you leverage data and consumer centric analytics to facilitate personalization?

Leveraging Data Sets

Collecting and storing data is essential to successfully transition into the online environment. Yet, making use of this data is easier said than done. This is why retailers with integrated commerce solutions have an advantage when it comes to curating the

customer experience on a personal level. When data can be easily accessed and data sets understood, a grocer gains insights and can quickly leverage information into tangible actions that drive personalization and richer shopping experiences.

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This data can serve as a reference for personalized discounts on a customer’s favourite products or be developed into a tailored e-newsletter.

USING MASTER DATA FOR PERSONALIZATION:

Master Data

Master data consists of a fully integrated view of each shopper through the organization and across multiple channels and systems. Consisting of key attributes such as name, demographic, location, loyalty and preferences, this data set facilitates personalization by improving customer interaction and experience. Most important are real-time information updates as shoppers interact with retailers across various touch points, online and offline.

Tracking these preferences puts powerful insight in the hands of a merchant to create an impactful customer experience. Should a shift in the customer’s buying behaviour occur, a grocer with integrated retail intelligence is able to react and adjust quickly.

Consumer Segmentation

Master data consists of a fully integrated view of each shopper through the organization and across multiple channels and systems. Consisting of key attributes such as name, demographic, location, loyalty and preferences, this data set facilitates personalization by improving customer interaction and experience. Most important are real-time information updates as shoppers interact with retailers across various touch points, online and offline.

Cross Channel Data

Creating a seamless experience between online portals and in-store visits is a key part of personalization. Data collected from online marketplaces is synchronized in real time with discoveries made in physical store settings. The goal is to provide an individualized shopping journey through every channel. Personalization efforts don’t end when a customer leaves a retailer’s store or website. Social media dialogs and other third-party platforms are vital resources that can add value to marketing efforts and the shopping experience.

Personalization will be a key differentiator for grocers to increase ROI, customer satisfaction, retention and loyalty. In the next section, we’ll explore how retail metrics play into the development of a targeted strategy for the future of retail.

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TR ACKING PROGRESS, GET TING RESULTSThe role of metrics and real-time feedback is crucial to tailoring personalized initiatives and developing strong brand loyalty.

Tracking Data

Although the grocery eCommerce field has been around for years, the level of personalization retailers hope to achieve today requires best practices to be discovered through an organic process. Using data for decision-making involves compiling retail metrics and key performance indicators. Analytics dashboards tracking how consumers are responding to specific elements of online and in-store campaigns can include analyzing store traffic patterns, the effectiveness of marketing efforts and the average checkout process.

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RETAIL METRICS

ADOPTION USE

AWARENESS EXPERIENCE

IMPACT

The following areas will offer key metrics for decision-making:

AWARENESScusomer & employee

ADOPTIONincluding location and accessibility

USEpage views, site conversion

EXPERIENCEsite availability, overall satisfaction

IMPACTsite changes, cost per order

An Iterative Process

Using retail metrics for decision-making is a slow iterative process. It is important to determine what to measure and then create metrics that will track progress and sound alarms. The details of these metrics will inform strategy from decision-making on whether to launch new initiatives or to adjust tactics due to early warnings. Information regarding customers’ browsing journeys and conversion rates is highly valuable if a retailer can make quick adjustments that streamline the user experience.

Setting Goals & KPIs

Metrics are also crucial for setting goals and forming KPIs that show a retailer’s progress on specific initiatives and allow for planning performance improvements. A platform that integrates analytics with other aspects of a brand’s digital controls makes it easy to make sense of abstract findings and drive results. Integrating metrics successfully will be an integral part of what will define the grocery store of the future.

It is important to determine what to measure and then create metrics that will track progress and sound alarms.

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Personalization will be a key differentiator for grocers to increase ROI, customer satisfaction, retention and loyalty. In the next section, we’ll explore how retail metrics play into the development of a targeted strategy for the future of retail.

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Identifying goals

These solutions are important investments as they:

· Produce data that creates deep consumer insights

· Give the ability to manage consumer interaction and experience

· Expedite time to market

However, they also represent some adoption challenges. Moreover so many tech options saturating the market can cause confusion and challenge decision-making. Identifying goals up front is key – what a retailer is trying to accomplish and setting up metrics accordingly will ensure the implementation and execution of technology solutions that support these goals and drive the customer experience forward.

TOOLS OF THE TR ADE FOR ECOMMERCE SUCCESS

In a technologically advancing world, decision-makers know that innovative retail technology is a must-have for the digital grocery environment. Countless new marketing technology solutions available to retailers offer strong customer insights and the ability to deliver impactful engagement.

These are now essential components in a competitive IT blueprint.

· Cloud computing · Advanced Analytics · Social Platforms · Mobile Integration

Just a few of these include:

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Identifying goals

These solutions are important investments as they:

· Ensuring customer information is properly understood – this will mean moving beyond master data to identify an accurate customer profile, preferences and behavior information that will drive physical and digital touch points;

· Focusing on a clear and specific business improvement initiative with KPIs on which to focus advanced analytics;

· Monitoring feedback on new features and early pilots before deployment;

· Tracking customer and media reaction to stay informed on early warning signs and concerns;

· Ensuring data security is in place early in the process.

Channeling Data

Simply acquiring and implementing these systems is not sufficient. Accurate customer and item information can be used effectively to provide shoppers with memorable experiences. When data collection channels, analytics resources and social media insights are integrated with content delivery methods, retailers have a fast, streamlined process through which they can implement key findings. It is this agility and accuracy that will dominate the future of grocery retail.

Integrated platforms can only fulfill their potential if they work in conjunction with a long-term plan – a clear brand vision will be key in grocery eCommerce. In our final section, we look at how retailers can develop a robust roadmap for the future.

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SET TING GOALS, ALIGNING SOLUTIONS AND EXECUTING FOR SUCCESS

We have discussed how data, personalization, metrics and current technologies are changing retail. In this ebook, we have explored the various technologies that are propelling the grocery sector into the digital age. The process involves creating an enterprise roadmap that will serve as a guide on the path to successfully implement the store of the future.

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Understanding the Environment

Although the tools and resources of the modern grocer have changed, the nature of competition has remained the same. Developing a roadmap will serve as a strategic guide to prioritize work. Business leaders need to cultivate an acute understanding of their position in the market and flesh out a strategy that includes:

· Inform on shopper attitudes, changing needs and preferences

· Allow for early detection and response to new shopping trends

· Enable customer service to readily adapt to new shopper needs

Once retailers identify and establish their goals that align with their overarching company missions and values, they can map out granular solutions with clarity on how newly leveraged systems will help target demographics.

Starting Slow

Given the huge market potential of grocery eCommerce, it may be tempting to dive headfirst into the digital arena, but decision-makers must be careful not to implement drastic brand transformation strategies at once. Taking in surroundings includes considering the current state – what is practical, which problems need to be tackled and of course, what success will look like. Setting targets and working in iterations is the most viable and successful approach. Communicating and creating visibility for those involved at each stage of the plan will create an understanding of the roadmap, its progress and outcomes achieved.

Setting targets and working in iterations is the most viable and successful approach.

CONC LUS IONA strong value proposition and compelling digital campaign will be critical elements in the future of the online grocery sector. Retailers cannot rely solely on their internal expertise to remain competitive – especially given the highly integrated nature of the IT systems required to make an impact.

Developing a close partnership with a third-party solutions provider will bring in the support grocers need to make a successful transition into the online environment and confidently navigate the retail landscape of the future.

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