digital transformation: how retailers can thrive in the new digital environment

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Tata Consultancy Services delivers solutions that help organizations navigate the path to successful Digital Transformation. Through deep industry expertise, modular, customizable solutions that meet real needs, and an “experience certainty” commitment, TCS helps retailers stay ahead of customers’ needs and drive down costs. Sources: 1. FBI, 2. White House Office of Consumer Affairs, 3. IBM, 4. RightNow CEI Report, 5. US Census, 6. Entrepreneur Weekly, 7. Lee Resource, 8. RightNow CEI Report, 9. comScore, 10. Forrester, 11. National Retail Federation, 12. Neilsen, 13. EConsultancy, 14. Aberdeen www.tcs.com Achieving Digital Transformation Achieving Digital Transformation Because customers know more, and expect more, you have to deliver more. More value, more service and more of what they are looking for. And when you do, you get more, too: customers, incremental sales, and positive reviews. 1. Deliver value to empowered customers Abandoned shopping carts. Showrooming. Customer dis-loyalty. All of these are signs your shopping experience is less than what your newly empowered customers demand. Turn those metrics around by analyzing the why of abandonment, offering real-time, targeted promotions, and converting the tire-kickers into wallet-openers. 2. Re-define the shopping experience Higher revenues are great, but only half the profit equation. New technologies give you the capabilities to better match supply and demand; connect partners, suppliers, and channels into one seamless order-to-sale supply chain; automate fulfillment and reduce customer support costs; and minimize losses due to fraud. 3. Drive operational efficiencies RETAILER 13% of dissatisfied customers tell more than 20 people 2 of consumers began doing business with a competitor following a poor customer experience 4 69% of retailers have no way of seeing their suppliers’ inventory 14 $1.2T in excess stockpiled merchandise 3 Only 37 % of brands received good or excellent customer experience scores this year 10 How retailers can thrive in the new digital environment of shoppers abandon online shopping carts 9 67% $15-30B estimated losses due to organized retail crime this year 1 89 % of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations 8 86% Retailers expect loss due to return fraud this holiday season 11 $ 2.9B Ecommerce sales are up from this time last year 5 18% 26% of companies have a well- developed strategy in place for improving the customer experience 13 90% of customers trust recommendations from their friends or peer groups 47% trust the company advertisements 12 Fewer than of retail businesses survive after four years 6 50% 2014 more to acquire a new customer than retain an existing one 7 It costs 6-7 x

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Page 1: Digital transformation: How retailers can thrive in the new digital environment

Tata Consultancy Services delivers solutions that help organizations navigate the path to successful Digital Transformation. Through deep industry expertise, modular, customizable solutions that meet real needs, and an “experience certainty” commitment, TCS helps retailers stay ahead of customers’ needs and drive down costs.

Sources: 1. FBI, 2. White House O�ce of Consumer A�airs, 3. IBM, 4. RightNow CEI Report, 5. US Census, 6. Entrepreneur Weekly, 7. Lee Resource, 8. RightNow CEI Report, 9. comScore, 10. Forrester, 11. National Retail Federation, 12. Neilsen, 13. EConsultancy, 14. Aberdeen

www.tcs.com

Achieving Digital TransformationAchieving Digital Transformation

Because customers know more, and expect more, you have to deliver more. More value, more service and more of what they are looking for. And when you do, you get more, too: customers, incremental sales, and positive reviews.

1. Deliver value to empowered customers

Abandoned shopping carts. Showrooming. Customer dis-loyalty. All of these are signs your shopping experience is less than what your newly empowered customers demand. Turn those metrics around by analyzing the why of abandonment, o�ering real-time, targeted promotions, and converting the tire-kickers into wallet-openers.

2. Re-de�ne the shopping experience

Higher revenues are great, but only half the pro�t equation. New technologies give you the capabilities to better match supply and demand; connect partners, suppliers, and channels into one seamless order-to-sale supply chain; automate ful�llment and reduce customer support costs; and minimize losses due to fraud.

3. Drive operational e�ciencies

RE TAILER

13%of dissatis�ed customers tell more than 20 people2

of consumers began doing business with a competitor following a poor customer experience4

69% of retailers have no way of seeing their

suppliers’ inventory14

$1.2Tin excess stockpiled merchandise3

Only

37% of brands received good or excellent customer experience scores this year10

How retailers can thrive in the new digital environment

of shoppers abandon online

shopping carts9

67%

$15-30Besti

mated lo

sses d

ue

to org

anized retail

crime th

is year1

89%

of buyers will pay more for a better customer experience. But only

1% of customers feel that vendors consistently meet their expectations8

86%

Retailers expect

loss due toreturn fraud thisholiday season11

$2.9BEcommerce sales are up from this time last year5

18%26% of companies have a well-

developed strategy in place for improving the customer experience13

90%of customers trust recommendations from their friends or peer groups

47% trust the company

advertisements12

Fewer than of retail businesses survive after four years6

50% 2014

more to acquire a newcustomer than retainan existing one7

It costs 6-7x