omni-channel: the future of retail

OMNI-CHANNEL: THE FUTURE OF RETAIL

ARTK CONSULTING,LLC

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Even if they start from their cellphone but complete it from their laptop or a store visit?

TODAY A CUSTOMER EXPECTS A SEAMLESS EXPERIENCE

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NO MATTER WHAT CHANNEL THEY ACCESS YOU NOW NEED TO KNOW WHO THAT CUSTOMER IS

You know what their likes are

What their shopping habits are

What special offers will entice them to purchase

What coupons would make them consider buying your products

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ARE YOUR CUSTOMERS INTERACTING WITH YOU OVER MULTIPLE CHANNELS?

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If Not you May be Missing the Train!

Home Depot Inc. runs a complex business, attracting more than eight million visitors per week to HomeDepot.com, while operating 2,200 store locations.“Consumers expect Home Depot to solve their problems either in-store or online ... Our goal is that there is zero channel conflict with a consumer.” – Hal Lawton, President, Home Depot Online

“We know that 60% of our U.S. store sales are influenced by our customers’ experience on bestbuy.com”– Brian Dunn, CEO, Best Buy

“The most important thing is to always put the customer first, regardless of the channel.“– Glen Senk, CEO, Urban Outfitters

“At Target, cross-channel shopping in which guests engage with us both in-store and online, is growing faster than either distinct channel.” – Kathryn Tesija, Executive Vice President of Merchandising, Target

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RIS study identified top technologies retailers will be investing in for 2013

TOP TECHNOLOGY TRENDS FOR 2013

Using information gathered from all channels will be instrumental in the future success of the Brand

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WHERE ARE WE TODAY IN DEVELOPING THE RIGHT ANALYTICS TO SUPPORT FUTURE PLANNING?

The same RSR 2013 study identified the ability to use information to plan future growth

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SHOP ON TIME AT MACY’S AND FOREVER BE IN THEIR DATABASE

Macy’s is one of the Best examples of pulling it all together to identify its customer and push information to them

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An Omni-channel go-to-market model is an idea whose time has come, at least according to Macy’s Chairman, CEO, and President Terry Lundgren, who recently stated on the National Retail Federation’s blog:

We talk a lot at Macy’s about Omni-Channel retailing. Our customer is multi-dimensional. She is busy at work and out with friends. She always has her mobile device in her hand. She’s active on Facebook and Twitter and YouTube and a dozen other social media sites… We want that customer to be able to interact with Macy’s no matter where she is or how she shops. It makes no difference to us whether she buys something in our store or online… or whether she is shopping from her desktop computer or her Droid or her iPad. Macy’s best customers are those who shop us in-stores and online. We have a whole series of strategies in place to drive our store customers to the Web, and our online customer to the stores…Today’s customer is not monolithic. And that’s the way we are approaching our customer.”

MACY’S CHAIRMAN, CEO AND PRESIDENT – TERRY LUNGREN

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NOW THAT WE UNDERSTAND THE NEED FOR MORE INFORMATION, WHAT NEEDS TO CHANGE?

Aggregated Data

Analytics and predictive models

Data Science and Scientists

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Support Company Strategic Plan Create New Operating Models to

Improve Revenue Mergers and Acquisitions

AGGREGATED DATA KEY TO SUPPORTING THE BUSINESS, NOT TRANSACTIONAL

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Better Insight to Customers Buying habits

Product Performance Channel Performance

complete view

OMNI-CHANNEL MARKETING – UNDERSTANDING THE CONSUMER THROUGH ONLINE & OFFLINE DATA

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CREATING PREDICTIVE MODELS

Information to drive the future performance of the Company.

The Ability to Change is key to Competitiveness.

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Sales Transactions are not enough to truly understand your Customer

ROLE OF UNSTRUCTURED DATA IN DEVELOPING THE PREDICTIVE MODEL

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A NEW ROLE OF “DATA SCIENTIST”

Not only Managing the Data, but understanding how to use it to provide insight on your Customers

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Time consuming to build.

Information designed to answer only known questions.

Single Silo / Department use.

Expensive to make changes.

TRADITIONAL WAREHOUSE NOT BUILT FOR CHANGE

Bottom Line: Inhibitor.

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TODAYS DATA WAREHOUSE FOUNDATION MUST HAVE….

Integrated information that can be rapidly updated and enhanced to provide the most complete view of your customers and their behaviors.

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Customer Group(s) Region(s) Interaction Channels

INFORMATION MUST BE COMBINED INTO USABLE CONTEXT:

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Change is Inevitable Pricing Pressures Competitors Like Products Similar Events

MUST MIRROR THE DYNAMIC NATURE OF MARKETS AND COMPETITION

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ABILITY TO RAPIDLY RESPOND TO THESE CHANGES IS THE KEY TO COMPETING IN TODAYS MARKETPLACE

Enterprise view is the number one Key to Competing today.

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WHERE DOES THE NEW DATA WAREHOUSE FIT IN THE NEW WORLD OF OMNI-CHANNEL?

Collection of information across all Channels and Customer Touch Points.

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STRETCHING THE LIMITATIONS OF OLDER DATA WAREHOUSE APPLICATIONS

Constantly changing or New Data Sources are being introduced Daily

Unstructured Data from All Channels Needs to be Incorporated into the Customer profile

Machine Driven Data is Becoming more available

Image & Voice are adding to the complexity

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Process-mediated data

Structured operational data

Machine-generated data

Human-sourced: External

REVELANT DATA CAN COME FROM ANYWHERE

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WHAT VALUE DOES THE DATA WAREHOUSE BRINGS TO OMNI-CHANNEL?

Pulling it all together to create a single view of your Customers

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Nightly Batch or weekly Updates are no longer enough to satisfy the requirements in today companies

THE NEW DATA WAREHOUSE CONCEPT IS A GAME CHANGER

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CONTEXTUAL DRIVEN MODEL IS THE NEW NORMAL

Creating a Marketing Campaign combining information from multiple input streams and data types:

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Ability to add new Data Sources New Syndicated Data

Sources Geographic Sales by

Category Household Spending

Habits Weather Analysis

NEW CHARACTERISTICS REQUIRED:

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Ability to integrate information quickly will give planners the time to analyze and act while Data is still actionable.

SPEED MATTERS?

ARTK CONSULTING, LLC

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SO WHAT IS THE MAIN REASON FOR UPDATING YOUR CURRENT DATA WAREHOUSE?

Make rapid product introduction decisions.Shape demand using what-if analysis and scenario planning.Segment demand forecasts based on key product or customer characteristics.Identify Your Customer across all Buying Channels and Provide the Right Product at the Right Time.

Beat Your Competiti

on to Market:

To radically improve speed-to-insight.

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QUESTIONS?

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Omni-Channel Data: Context Required

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Realities For The Data Professional

Data coming from everywhere

Tools to mine and analyze data hitting every laptop and desktop

The I.T. equivalent of a stampede towards a cliff

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Some Simple Truths

If you can’t quickly find its:

business relevance…

business context…

business contribution…

Data from any channel has little (zero) value.

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Aggregating With Business Context Is Key

Aggregated data yields sharper insights for planners and marketers

Needs business context to create business value

Establishing a contextual model built around business use case provides a litmus test for business relevance

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Business Information Model

Provides context as to how data is defined by and used by the business

Enables rapid integration of new data sources as they come available

Enables collaboration between data professional and business professional

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Thirty Minute Classroom

Thursday, May 23rd

11 a.m. Eastern

“Rapidly Creating a Data Foundation For Omni-Channel Retailing”

• 10-minute tutorial

• Sample of a contextual business model

• Demonstration of Business Information Modeling

get.kalido.com/data-foundation-for-oc

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Summers Sessions: Two Tracks For YOU

Series Kickoff

May 14: Data Scientist: Your must-have business investment now.

(30 Minute Learning Sessions)

May 28 Rapid Data Integration tools and methods

June 4 Harmonizing Data for the Warehouse

June 11 Rapid Iteration Methodology Using Information Models

Series Kickoff

June 25: Find your data warehouse’s hidden costs before they find you.

(30 Minute Learning Sessions)

July 2 The real cost per release cycle

July 9 Automate to reduce operating costs

July 16 Reduce tool cost

July 23 Scale drives cost reductions

Agile Information Foundationfor the Data Scientist

TCO: Find data warehouse costs before they find you.

get.kalido/summer-series