This free report, sponsored by Motorola, highlights the top companies, people, issues and trends that dominated retail in a very tumultuous year.
Monday, June 21, 2010
Top 100 Retail Movers 2010
This free report, sponsored by Motorola, highlights the top companies, people, issues and trends that dominated retail in a very tumultuous year.
Monday, June 7, 2010
Retail Business Intelligence
Manthan - The latest in Retail Technology B.I
As a retailer today, you know - better than anyone - the need for speed in retail.
The need to arrive at optimal enterprise-wide strategies and tactics, as swiftly as possible.
The need to formulate the ideal rapid responses to ebbs and flows in the market.
In short, the need for accurate, fluid, streamlined decision making.
This is why you need solutions that have evolved beyond providing mere decision support. Products and services that are designed with our deep domain expertise in retail, to do more than merely provide raw information.
Tools that let you make sense of the flood of data pouring in from across your organization, and help you choose the best course of action.
And then, help you implement your decisions, seamlessly, enterprise-wide.
As a retailer today, you know - better than anyone - the need for speed in retail.
The need to arrive at optimal enterprise-wide strategies and tactics, as swiftly as possible.
The need to formulate the ideal rapid responses to ebbs and flows in the market.
In short, the need for accurate, fluid, streamlined decision making.
This is why you need solutions that have evolved beyond providing mere decision support. Products and services that are designed with our deep domain expertise in retail, to do more than merely provide raw information.
Tools that let you make sense of the flood of data pouring in from across your organization, and help you choose the best course of action.
And then, help you implement your decisions, seamlessly, enterprise-wide.
Retail Technology Webcast
"Facing a difficult economic environment, retailers have started to scrutinise their IT investments. As a result they are prioritising solutions that cut costs, improve efficiency and enhance their customers experience to boost profitability, even in saturated markets."
Planet Retail's Joachim Pinhammer, Senior Retail Technology Analyst
Session 1
Focus: Retail Technology Date: 28 June 2010 Time: 11am (UK Time) Duration: 40 minutes
Planet Retail's Joachim Pinhammer, Senior Retail Technology Analyst
Session 1
Focus: Retail Technology Date: 28 June 2010 Time: 11am (UK Time) Duration: 40 minutes
Wednesday, May 26, 2010
competitive supply chain of the future
According to the experts, the competitive supply chain of the future must have:
Optimization: The alignment of global supply chain resources
Synchronization: The ability to coordinate, organize and manage end-to-end supply chain flows
Profitability: The result of creating value through supply chain activities
Adaptability: The degree to which supply chain members can change in response to unexpected events
Velocity: The speed at which end-to-end flows occur in the supply chain
Optimization: The alignment of global supply chain resources
Synchronization: The ability to coordinate, organize and manage end-to-end supply chain flows
Profitability: The result of creating value through supply chain activities
Adaptability: The degree to which supply chain members can change in response to unexpected events
Velocity: The speed at which end-to-end flows occur in the supply chain
Wednesday, May 12, 2010
Ten Attributes of a Superior Self-Checkout Solution Environment
The most successful self-checkout solution represents a blend of innovation, engineering excellence and in-depth understanding of the customer experience. It incorporates rugged, precision-built hardware in a user-friendly configuration designed for flexibility and exceptional total cost of ownership.
But make no mistake, when it comes to assuring the best all-around experience for your customers as well as store associates and the information technology (IT) team, nothing differentiates a superior self-checkout implementation more than the solution software.
The link is to an NCR sponsered whitepaper on Self checkout technology.
But make no mistake, when it comes to assuring the best all-around experience for your customers as well as store associates and the information technology (IT) team, nothing differentiates a superior self-checkout implementation more than the solution software.
The link is to an NCR sponsered whitepaper on Self checkout technology.
Improving the Instore Experience
This pdf presentation ( see link) looks at 5 technologies at play in the Retail store environment that when used correctly can enhance the shopping experience and ensure retailers get closer to their customer base.
Click on the link about to download pdf or copy and paste this link :
http://global.networldalliance.com/downloads/white_papers/GlobalShop09_Enhancing_The_In-Store_Experience.pdf
Click on the link about to download pdf or copy and paste this link :
http://global.networldalliance.com/downloads/white_papers/GlobalShop09_Enhancing_The_In-Store_Experience.pdf
Wednesday, April 7, 2010
Top 10 Retail White papers
The Top 10 Most Popular on RetailCustomerExperience.com for March
"Top 100 Retail Movers and Shakers" was once again the most popular downloaded publication last month, while a story that offered tips for marketing toward women was the most popular article.
Read on for the complete Top 10 lists for March on RetailCustomerExperience.com.
TOP 10 WHITE PAPERS
1. Top 100 Retail Movers and Shakers
2. Top 10 Customer Satisfaction Survey Best Practices
3. Designing the Shopping Experience: Five crucial steps
4. Measurement and Analysis for Digital Signage
5. Small-Screen Displays in a Retail Environment
6. 10 Reasons Why Kiosk Projects Fail
7. Kiosk Branding
8. Slides: Enhancing the In-Store Experience
9. Digital Display Technology: Learning the Basics of Digital Signage
10. Social Media: An Inside Look at the People Who Use It
"Top 100 Retail Movers and Shakers" was once again the most popular downloaded publication last month, while a story that offered tips for marketing toward women was the most popular article.
Read on for the complete Top 10 lists for March on RetailCustomerExperience.com.
TOP 10 WHITE PAPERS
1. Top 100 Retail Movers and Shakers
2. Top 10 Customer Satisfaction Survey Best Practices
3. Designing the Shopping Experience: Five crucial steps
4. Measurement and Analysis for Digital Signage
5. Small-Screen Displays in a Retail Environment
6. 10 Reasons Why Kiosk Projects Fail
7. Kiosk Branding
8. Slides: Enhancing the In-Store Experience
9. Digital Display Technology: Learning the Basics of Digital Signage
10. Social Media: An Inside Look at the People Who Use It
Monday, March 22, 2010
Supply Chain Data: Real-Time Speed Is Seductive, Dangerous
Let's call it the Wall Street Effect: Many companies now face tremendous pressure to ensure that all corporate data is "up to the second," just like those traders on The Street who bask in sub-second financial data and those consumer "day traders" who now demand equal speed.
Give me my data, and Give it to me fast!
That "need for speed" in today's supply chains is one of the underlying messages of a recent report from Aberdeen Group: "Supply Chain Intelligence: Adopt Role-Based Operational Business Intelligence and Improve Visibility." (Free with registration.)
Given that Wall Street Effect, users of supply chain systems today expect this up-to-the-second data. Customers now look for it as well. The Aberdeen report notes that 21st-century supply chains must collaborate with and respond to customers, suppliers and partners at real-time speeds. Supply chain risk needs to be assessed as it happens.
In several instances, the report's authors, analysts Nari Viswanathan and Viktoriya Sadlovska, point to a coming shift in historic supply-chain strategy: from the traditional "supply chain organization" to a "customer-focused customer value chain organization" that utilizes "advanced BI technologies that are pervasive and role-based."
That may be a buzzy mouthful, but the message is clear: Supply chains must become quick to respond--to anything, anyone and anywhere in the chain.
Bad Data Delivered Faster Is Still Bad Data
Give me my data, and Give it to me fast!
That "need for speed" in today's supply chains is one of the underlying messages of a recent report from Aberdeen Group: "Supply Chain Intelligence: Adopt Role-Based Operational Business Intelligence and Improve Visibility." (Free with registration.)
Given that Wall Street Effect, users of supply chain systems today expect this up-to-the-second data. Customers now look for it as well. The Aberdeen report notes that 21st-century supply chains must collaborate with and respond to customers, suppliers and partners at real-time speeds. Supply chain risk needs to be assessed as it happens.
In several instances, the report's authors, analysts Nari Viswanathan and Viktoriya Sadlovska, point to a coming shift in historic supply-chain strategy: from the traditional "supply chain organization" to a "customer-focused customer value chain organization" that utilizes "advanced BI technologies that are pervasive and role-based."
That may be a buzzy mouthful, but the message is clear: Supply chains must become quick to respond--to anything, anyone and anywhere in the chain.
Bad Data Delivered Faster Is Still Bad Data
Wednesday, January 27, 2010
Multichannel Logistics: Walmart.com’s Site-to-Store Strategy
Multichannel Logistics: Walmart.com’s Site-to-Store Strategy
At the end of every year, Walmart holds a meeting for the investment community. Because so much of Walmart's core strategy revolves around excellence in supply chain management, I always enjoy hearing about the company's plans. What interested me the most this year was Walmart's multichannel strategy.
The linked article details some of the key points..
• Amazon is the company's main target. Walmart.com, of course, is currently much smaller than Amazon, but it is growing faster. Walmart is trying to leverage its reputation for price leadership to take on Amazon. While the company doesn't have the vast selection of books that Amazon has, Walmart wants to be the price leader for bestsellers. Many prescription drugs are now offered for $4 and can be delivered to the home. Whereas Amazon attracts many price-insensitive convenience shoppers, Walmart is clearly targeting price-sensitive shoppers, and these shoppers pay close attention to shipping charges. Some of Walmart.com's products ship to the home at ridiculously low prices. For example, if you go to the Health & Beauty section of Walmart.com, you will find that it offers 97 cent shipping for many items.
• In taking on Amazon, Walmart has added more than a million products through a partner network. Because of this, Walmart offers a much larger variety of products online than what it offers in stores. Like at Amazon, shoppers can view the same product from different partners, read reviews on the reliability of that partner, and pick the partner that offers the best combination of price and reputation.
• It is Walmart's "Site to Store" strategy, however, that really differentiates the company from other online retailers. A customer can use the Site-to-Store service to have eligible products shipped for free to their local Walmart. For a customer that is already a regular Walmart shopper, this is a great convenience. In fact, a Walmart.com fact sheet claims that nearly 90 percent of its customers shop in Walmart stores at least once per month. The online site thus serves a dual purpose. Shoppers can also use the site to research products they might want to buy in the store. For example, Walmart added a tool that allows customers to set weight loss goals and then view the food products they shop for most frequently in stores and check product details, like ingredients and nutritional content.
Forty percent of Walmart.com sales are Site-to-Store purchases. To support Site-to-Store, Walmart is experimenting at a couple of store locations with a drive-thru pick up option. It is also making the store sections where online purchases are picked up larger and more prominent.
Site-to-Store is an impactful strategy for a couple of reasons. Multichannel purchasers are typically much more profitable than customers that just shop at the store. A presentation I received from Manhattan Associates (an ARC client) about its multichannel software solutions cited Nielsen Online data showing that the typical Walmart multi-channel shopper spent 38 percent more per year than Walmart offline shoppers in 2008. Presumably this is why Walmart is testing, rather than rolling out, the drive-thru option. The company wants to make sure that what it gains from an increase in online shoppers more than makes up for the smaller transaction sizes.
But what is most impactful in the Site-to-Store strategy is that it allows Walmart to utilize its existing network of 147 US distribution centers (DCs), 51 transportation offices, 7,200 tractors, 53,000 trailers, and 8,000 drivers. Last year, Walmart made two moves in its DC network: the company opened a DC to support food imports and it closed a Walmart.com DC!
Walmart also mentioned that it had implemented a new inventory management system. I wondered why until I started to think about its multichannel offerings. If you want to support Site-to-Store or be able to sell against network-wide inventory, you would need a unified inventory management system.
Walmart competes on low prices and its multichannel tactics reflect this strategy. The company's website makes it clear that online prices do not always match store prices, and prices may also vary between stores. This is widely considered a multichannel mistake, but one can see the logic of this for a low-cost provider like Walmart. Further, I can't find a phone support option at Walmart.com.
Apparently, all ordering problems must be addressed by email.
Walmart clearly wants to use its size and scale to compete more effectively. Leveraging its existing logistics network to support Site-to-Store is just one example.
At the end of every year, Walmart holds a meeting for the investment community. Because so much of Walmart's core strategy revolves around excellence in supply chain management, I always enjoy hearing about the company's plans. What interested me the most this year was Walmart's multichannel strategy.
The linked article details some of the key points..
• Amazon is the company's main target. Walmart.com, of course, is currently much smaller than Amazon, but it is growing faster. Walmart is trying to leverage its reputation for price leadership to take on Amazon. While the company doesn't have the vast selection of books that Amazon has, Walmart wants to be the price leader for bestsellers. Many prescription drugs are now offered for $4 and can be delivered to the home. Whereas Amazon attracts many price-insensitive convenience shoppers, Walmart is clearly targeting price-sensitive shoppers, and these shoppers pay close attention to shipping charges. Some of Walmart.com's products ship to the home at ridiculously low prices. For example, if you go to the Health & Beauty section of Walmart.com, you will find that it offers 97 cent shipping for many items.
• In taking on Amazon, Walmart has added more than a million products through a partner network. Because of this, Walmart offers a much larger variety of products online than what it offers in stores. Like at Amazon, shoppers can view the same product from different partners, read reviews on the reliability of that partner, and pick the partner that offers the best combination of price and reputation.
• It is Walmart's "Site to Store" strategy, however, that really differentiates the company from other online retailers. A customer can use the Site-to-Store service to have eligible products shipped for free to their local Walmart. For a customer that is already a regular Walmart shopper, this is a great convenience. In fact, a Walmart.com fact sheet claims that nearly 90 percent of its customers shop in Walmart stores at least once per month. The online site thus serves a dual purpose. Shoppers can also use the site to research products they might want to buy in the store. For example, Walmart added a tool that allows customers to set weight loss goals and then view the food products they shop for most frequently in stores and check product details, like ingredients and nutritional content.
Forty percent of Walmart.com sales are Site-to-Store purchases. To support Site-to-Store, Walmart is experimenting at a couple of store locations with a drive-thru pick up option. It is also making the store sections where online purchases are picked up larger and more prominent.
Site-to-Store is an impactful strategy for a couple of reasons. Multichannel purchasers are typically much more profitable than customers that just shop at the store. A presentation I received from Manhattan Associates (an ARC client) about its multichannel software solutions cited Nielsen Online data showing that the typical Walmart multi-channel shopper spent 38 percent more per year than Walmart offline shoppers in 2008. Presumably this is why Walmart is testing, rather than rolling out, the drive-thru option. The company wants to make sure that what it gains from an increase in online shoppers more than makes up for the smaller transaction sizes.
But what is most impactful in the Site-to-Store strategy is that it allows Walmart to utilize its existing network of 147 US distribution centers (DCs), 51 transportation offices, 7,200 tractors, 53,000 trailers, and 8,000 drivers. Last year, Walmart made two moves in its DC network: the company opened a DC to support food imports and it closed a Walmart.com DC!
Walmart also mentioned that it had implemented a new inventory management system. I wondered why until I started to think about its multichannel offerings. If you want to support Site-to-Store or be able to sell against network-wide inventory, you would need a unified inventory management system.
Walmart competes on low prices and its multichannel tactics reflect this strategy. The company's website makes it clear that online prices do not always match store prices, and prices may also vary between stores. This is widely considered a multichannel mistake, but one can see the logic of this for a low-cost provider like Walmart. Further, I can't find a phone support option at Walmart.com.
Apparently, all ordering problems must be addressed by email.
Walmart clearly wants to use its size and scale to compete more effectively. Leveraging its existing logistics network to support Site-to-Store is just one example.
Tuesday, January 12, 2010
WMS Architecture and Total Cost of Ownership
WMS Architecture and Total Cost of Ownership
Steve Banker of ARC has written a new article on WMS configurability or Business Process Modelling & configurablity. Its a good read idf your looking to install an configurable , flexible WMS
Steve Banker of ARC has written a new article on WMS configurability or Business Process Modelling & configurablity. Its a good read idf your looking to install an configurable , flexible WMS
Wednesday, December 23, 2009
Supply Chain and Logistics Predictions for 2010
Demand Signal Repositories (DSR) market continues to grow briskly: Based on research ARC conducted for an upcoming market study, the DSR and related applications market grew 49 percent in 2009. And this occurred in the midst of a large global recession! Based on ARC estimates, i2 Technologies, a new entrant to the market at the end of 2008, grew its DSR-related revenues from under $1 million to over $10 million in one year.
We also estimate that IBM has grown its revenues in this area to over $10 million in three years, despite not offering a core DSR database product. And now Oracle has entered the market, and we expect the company to generate at least $10 million dollars in DSR-related revenues in the next five years. (i2, IBM, and Oracle are all ARC clients). Based on these factors, it's hard to imagine this still immature market not growing by a very health margin again next year.
Also look to Bluesky Tech - They have a killer app for FMCG
Google continues to roil the supply chain technology market: As I highlighted in a recent post, Google has shaken up the GPS and navigation industry with some recent announcements. Google is developing a map database to compete with the routing and navigation maps provided by NAVTEQ and Tele Atlas. The company also announced it is offering a free turn-by-turn (TBT) navigation app with its Android 2.0-based smart phones. I don't expect these to be the last announcements that surprise logisticians. I expect Google to continue investing in mobile technologies, in free cloud-based applications, and in other new areas designed to rattle its mortal enemy Microsoft. Google's primary focus is serving the mass consumer market, not providing logisticians with new solutions. Nevertheless, I expect to see more solutions based on Google technologies come to market in the supply chain arena.
Going Green: With the USA EPA ruling earlier this month that CO2 and other greenhouse gases are a danger to public health, thus giving it the power to regulate CO2 emissions under the Clean Air Act, some form of legislation from Congress is arguably the better poison for companies to swallow. The clear winners at this point: software vendors offering "carbon information management" solutions (see "Managing Carbon: A Green Opportunity for IT" and click here to read all our postings this past year related to sustainability).
We also estimate that IBM has grown its revenues in this area to over $10 million in three years, despite not offering a core DSR database product. And now Oracle has entered the market, and we expect the company to generate at least $10 million dollars in DSR-related revenues in the next five years. (i2, IBM, and Oracle are all ARC clients). Based on these factors, it's hard to imagine this still immature market not growing by a very health margin again next year.
Also look to Bluesky Tech - They have a killer app for FMCG
Google continues to roil the supply chain technology market: As I highlighted in a recent post, Google has shaken up the GPS and navigation industry with some recent announcements. Google is developing a map database to compete with the routing and navigation maps provided by NAVTEQ and Tele Atlas. The company also announced it is offering a free turn-by-turn (TBT) navigation app with its Android 2.0-based smart phones. I don't expect these to be the last announcements that surprise logisticians. I expect Google to continue investing in mobile technologies, in free cloud-based applications, and in other new areas designed to rattle its mortal enemy Microsoft. Google's primary focus is serving the mass consumer market, not providing logisticians with new solutions. Nevertheless, I expect to see more solutions based on Google technologies come to market in the supply chain arena.
Going Green: With the USA EPA ruling earlier this month that CO2 and other greenhouse gases are a danger to public health, thus giving it the power to regulate CO2 emissions under the Clean Air Act, some form of legislation from Congress is arguably the better poison for companies to swallow. The clear winners at this point: software vendors offering "carbon information management" solutions (see "Managing Carbon: A Green Opportunity for IT" and click here to read all our postings this past year related to sustainability).
Tuesday, December 22, 2009
The State of the Retail Supply Chain
The Retail Industry Leaders Association and the supply chain faculty at Auburn University recently published a report called "The State of the Retail Supply Chain." The research results are based on interviews with Senior Vice Presidents, Vice Presidents, and Directors from 45 large retailers headquartered in North America, including many retail organizations respected for their supply chain capabilities.
I've attached a link to the complete pdf document - i recommend all SCM & retail Exec's dowloan and circulate the document within their teams.
The people, products and knowledge for all companies ( not just US based) to be "leaders" is avaialable today.
If you'd like to know more contact me..
Wednesday, November 18, 2009
Multi-Channel Retailing
OVERVIEW: Multi-channel retailing is a deceptively easy concept. Simple in terminology, but complex to explain and even more so to deliver. This paper provides an overview of what it is about, covering the drivers, benefits, challenges and organizational changes needed to get there.
What is Multi-Channel?
Retailers traditionally maintained a single department, offering sales and support via a single mode of customer interaction like the physical store. Over time this has expanded to include multiple ways of selling to, engaging, and interacting with the customer, primarily via mail, catalogue and telephone.
Advancing technology however, has led to a number of new ways of inter-personal interaction like the internet, mobile phones, and interactive TV; and as these embed deeper into social culture, subsequently new channels for offering product and service.
Multi-Channel then refers to the delivery of customer propositions via multiple channels with at least some degree of cross channel integration in management, information and service, i.e. in a consistent and coordinated way across all channels.
Complete integration and sharing of information and experience across all channels is now being referred to as Merged-Channel retailing, but that's a story for another paper. If you want to know more, have a look at my paper on The High Street 2.0, which is about merging online and offline customer experiences.
Drivers
While emerging technology has been a key enabler, multi-channel growth is essentially driven by consumers. According to Shop.org, 34% of consumers today use at least three channels when shopping. Research has found them to spend up to 10 times more, to generate 25 to 50% more profit and demonstrate greater loyalty than their single-channel counterparts. The core driver then is customer demand.
The other major driver is cost saving through efficiency and effectiveness. Managing channels separately may not only impair customer relationships but also result in cost increases resulting from running separate order-management and customer service operations, multiple warehouses and fulfilment systems, and buyers and merchandisers duplicating effort across the different channels.
Multi-channel is also driven by strategic competitive advantage and differentiation opportunities, and regulatory pressures around ensuring that all customers are able to access products and services on offer.
Benefits
There are a huge number of both organizational and customer related benefits to be gained from implementing a multi-channel strategy. Here’s a few:
Organisational Benefits
• Increased revenue and growth opportunities – more touch points into target market
• Better responsiveness and sensitivity to changing environments
• Competitive advantage over pure-plays particularly around immediacy, education opportunities for complex products and easy e-merchandise returns.
• Organisational efficiency and effectiveness opportunities through sharing of processes,
technology and information
Customer Related benefits
• Better and wider customer interaction with a greater variety of information available for improved understanding of customers and identification of opportunities for increasing value per customer (business intelligence)
• Increased customer loyalty through better understanding of customers
• Better customer experience reducing churn and increasing loyalty
• Opportunity to leverage and improve brand perception
Customers themselves also benefit from increased choice in interaction opportunities and the ability to switch channels as convenient.
Challenges
I'd argue that the underlying success factor in multi-channel retail from an external perspective is a seamless customer experience, and from an internal perspective is a single customer view – different sides of the same coin. Most of the challenges to any retailer appear to stem from attempting to achieve this.
The two key areas of impact here are technological and organizational dependent on retailer age and size. The older the organization, the more likely they are to have legacy systems, and the larger they are, they more likely they are to face resistance to change. Multi-channel may therefore require integration of disparate technologies, while also needing a complete review of structure, skills, staff incentivisation, and a host of other business and marketing processes.
The 5 main challenges faced by similar retailers entering the multi-channel space are as follows:
1. Evaluating cost of investment in development of cost effective, secure, scalable environments and systems integration against probable short term impact on bottom line
2. Pricing across different channels - Store channels have higher cost structures than web channels for example, and price competition is higher on web, but consumers can be put off by different pricing for the same product
3. Channel synchronisation i.e. ensuring brand, customer experience and customer information
consistency across channels while avoiding the 3E trap i.e. trying to provide ‘everything to
everyone everywhere’
4. Problems in merging and standardising customer data i.e. unifying different systems which may have very different data models
5. Difficulties in reducing or abolishing organisational boundaries to cope with new channels
In summary, customers for whom a multi-channel approach will yield the most benefits are often those for whom achieving it the most problematic – they have the largest customer bases, most complex lines, and longest histories of systems development, with many business critical systems that supply old CRM processes.
Organisational Impacts and the Changes Needed
A successful shift to multi-channel retailing requires a number of changes to the way any traditional retail business functions, primarily in the areas of commercial capability, technical capability, and organization and processes.
Commercial Capability
• Retailers must develop the ability to differentiate between offering attributes across different
channels because they vary in effectiveness and efficiency.
• Modeling capability will be crucial in enabling a deep understanding of the target audience’s
channel preferences and their perceptions of service
• Pricing, brand impact and route to market will have to evolve to ensure a seamless customer experience.
• The organisation will have to shift towards developing multi-channel value propositions and
commercial strategies.
Technical Capability
• The core capability needed is a single customer information view, ideally via a single platform for enterprise wide customer relationship management and proposition development. This requires full integration of database and management systems across channels and also with supply chain activities.
• Multi-channel IT architecture requires a channel independent, service oriented and scalable
integration of different front-end and back-end legacy systems and 3rd party services. The front- end should support open industry standards like XML and web-services.
• Measurement capability will be vital for monitoring and review channel integration
Organisational Process
• There may be need for a culture change programme to shift from a product or function focused approach to a customer focused approach
• Where separate channels have their own objectives, management, staff and systems, these may need to be synchronised or even merged if necessary
• Organisational restructure may require a new model that adapts people, processes and
technology to meet the coordinated approach to channel management. Strong support from CEO and Management will be required.
• Multi-channel trend analysis on the industry in question will need to play a larger role in the
corporate strategy formulation process
• Channel strategy and associated business propositions must be embedded into the basic
processes of the organization
Where do you start?
A good place to start your multi-channel journey is by considering Flint and Spieler’s 4 stage process (Source - IBM white paper on Multi-Channel Customer Management: The Benefits and Challenges)
1. Create a multichannel strategy
2. Determine the relative priority for the channels
3. Reorganise for multichannel operation by reconciling central brand, experience and service
standards control with the need for local autonomy in managing individual channels
4. Adopt and implement best practices for integrating new with old technology
Summary
To summarise, while the benefits are many, this paper should have highlighted the fact that there are a number of challenges involved too. Embedding real multi-channel practices will take time as it involves both a cultural and technological shift for any organisation. My recommendation when making early stage investment and ROI decisions around multi-channel retailing, is aim to focus on long-term value and competitive advantage rather than short-term profit. In other words, think longer term when developing your business case, and have the patience to see it through. It will pay off.
What is Multi-Channel?
Retailers traditionally maintained a single department, offering sales and support via a single mode of customer interaction like the physical store. Over time this has expanded to include multiple ways of selling to, engaging, and interacting with the customer, primarily via mail, catalogue and telephone.
Advancing technology however, has led to a number of new ways of inter-personal interaction like the internet, mobile phones, and interactive TV; and as these embed deeper into social culture, subsequently new channels for offering product and service.
Multi-Channel then refers to the delivery of customer propositions via multiple channels with at least some degree of cross channel integration in management, information and service, i.e. in a consistent and coordinated way across all channels.
Complete integration and sharing of information and experience across all channels is now being referred to as Merged-Channel retailing, but that's a story for another paper. If you want to know more, have a look at my paper on The High Street 2.0, which is about merging online and offline customer experiences.
Drivers
While emerging technology has been a key enabler, multi-channel growth is essentially driven by consumers. According to Shop.org, 34% of consumers today use at least three channels when shopping. Research has found them to spend up to 10 times more, to generate 25 to 50% more profit and demonstrate greater loyalty than their single-channel counterparts. The core driver then is customer demand.
The other major driver is cost saving through efficiency and effectiveness. Managing channels separately may not only impair customer relationships but also result in cost increases resulting from running separate order-management and customer service operations, multiple warehouses and fulfilment systems, and buyers and merchandisers duplicating effort across the different channels.
Multi-channel is also driven by strategic competitive advantage and differentiation opportunities, and regulatory pressures around ensuring that all customers are able to access products and services on offer.
Benefits
There are a huge number of both organizational and customer related benefits to be gained from implementing a multi-channel strategy. Here’s a few:
Organisational Benefits
• Increased revenue and growth opportunities – more touch points into target market
• Better responsiveness and sensitivity to changing environments
• Competitive advantage over pure-plays particularly around immediacy, education opportunities for complex products and easy e-merchandise returns.
• Organisational efficiency and effectiveness opportunities through sharing of processes,
technology and information
Customer Related benefits
• Better and wider customer interaction with a greater variety of information available for improved understanding of customers and identification of opportunities for increasing value per customer (business intelligence)
• Increased customer loyalty through better understanding of customers
• Better customer experience reducing churn and increasing loyalty
• Opportunity to leverage and improve brand perception
Customers themselves also benefit from increased choice in interaction opportunities and the ability to switch channels as convenient.
Challenges
I'd argue that the underlying success factor in multi-channel retail from an external perspective is a seamless customer experience, and from an internal perspective is a single customer view – different sides of the same coin. Most of the challenges to any retailer appear to stem from attempting to achieve this.
The two key areas of impact here are technological and organizational dependent on retailer age and size. The older the organization, the more likely they are to have legacy systems, and the larger they are, they more likely they are to face resistance to change. Multi-channel may therefore require integration of disparate technologies, while also needing a complete review of structure, skills, staff incentivisation, and a host of other business and marketing processes.
The 5 main challenges faced by similar retailers entering the multi-channel space are as follows:
1. Evaluating cost of investment in development of cost effective, secure, scalable environments and systems integration against probable short term impact on bottom line
2. Pricing across different channels - Store channels have higher cost structures than web channels for example, and price competition is higher on web, but consumers can be put off by different pricing for the same product
3. Channel synchronisation i.e. ensuring brand, customer experience and customer information
consistency across channels while avoiding the 3E trap i.e. trying to provide ‘everything to
everyone everywhere’
4. Problems in merging and standardising customer data i.e. unifying different systems which may have very different data models
5. Difficulties in reducing or abolishing organisational boundaries to cope with new channels
In summary, customers for whom a multi-channel approach will yield the most benefits are often those for whom achieving it the most problematic – they have the largest customer bases, most complex lines, and longest histories of systems development, with many business critical systems that supply old CRM processes.
Organisational Impacts and the Changes Needed
A successful shift to multi-channel retailing requires a number of changes to the way any traditional retail business functions, primarily in the areas of commercial capability, technical capability, and organization and processes.
Commercial Capability
• Retailers must develop the ability to differentiate between offering attributes across different
channels because they vary in effectiveness and efficiency.
• Modeling capability will be crucial in enabling a deep understanding of the target audience’s
channel preferences and their perceptions of service
• Pricing, brand impact and route to market will have to evolve to ensure a seamless customer experience.
• The organisation will have to shift towards developing multi-channel value propositions and
commercial strategies.
Technical Capability
• The core capability needed is a single customer information view, ideally via a single platform for enterprise wide customer relationship management and proposition development. This requires full integration of database and management systems across channels and also with supply chain activities.
• Multi-channel IT architecture requires a channel independent, service oriented and scalable
integration of different front-end and back-end legacy systems and 3rd party services. The front- end should support open industry standards like XML and web-services.
• Measurement capability will be vital for monitoring and review channel integration
Organisational Process
• There may be need for a culture change programme to shift from a product or function focused approach to a customer focused approach
• Where separate channels have their own objectives, management, staff and systems, these may need to be synchronised or even merged if necessary
• Organisational restructure may require a new model that adapts people, processes and
technology to meet the coordinated approach to channel management. Strong support from CEO and Management will be required.
• Multi-channel trend analysis on the industry in question will need to play a larger role in the
corporate strategy formulation process
• Channel strategy and associated business propositions must be embedded into the basic
processes of the organization
Where do you start?
A good place to start your multi-channel journey is by considering Flint and Spieler’s 4 stage process (Source - IBM white paper on Multi-Channel Customer Management: The Benefits and Challenges)
1. Create a multichannel strategy
2. Determine the relative priority for the channels
3. Reorganise for multichannel operation by reconciling central brand, experience and service
standards control with the need for local autonomy in managing individual channels
4. Adopt and implement best practices for integrating new with old technology
Summary
To summarise, while the benefits are many, this paper should have highlighted the fact that there are a number of challenges involved too. Embedding real multi-channel practices will take time as it involves both a cultural and technological shift for any organisation. My recommendation when making early stage investment and ROI decisions around multi-channel retailing, is aim to focus on long-term value and competitive advantage rather than short-term profit. In other words, think longer term when developing your business case, and have the patience to see it through. It will pay off.
Monday, November 9, 2009
What Causes Shelf Out-of-Stocks?
Steve Banker from ARC has written up a good article on out of stock management .
See this link for the full article..
What Causes Shelf Out-of-Stocks?
Thursday, November 5, 2009
Retail Customer Experience WebSite
Tuesday, October 27, 2009
RFID - Resurgence in Mining Industry
Mining operations around the world are beginning to realize the tremendous benefits of real-time tracking systems utilizing RFID technologies. Here are just some of the benefits already being enjoyed today:
Safety: Real-time visibility of the accurate location and status of employees is
paramount at all times, but especially in emergencies. RFID systems can remain
operational during accidents, allowing you to know the precise location of personnel
during an emergency, thus greatly reducing respondent response time. RFID can also
be used to quickly locate emergency equipment such as respirators, first-aid kits and
fire suppression equipment.
Asset Management: Manage materials, equipment and personnel more efficiently with
automatic identification solutions. Accurately account for the status and location of all of
your equipment, thus dramatically improving asset utilization, and streamlining the
maintenance and repair process.
Collision Avoidance: NIOSH studies calculate that collisions between haulage
equipment and pedestrian workers or other vehicles claim an average of five lives each
year in surface and underground metal/nonmetal mining operations. Many more
workers are severely injured. New developments in RFID systems can significantly
reduce the risk of collisions, by providing automated alerts when problems appear likely.
Security: RFID can be used to limit workers from using unauthorized equipment as well
as prevent access to unauthorized areas.
No single solution works for every mining operation and a fit gap analysis is recommended so as to ascertain the cost, benefits and best technology and partners to utlise.
Sunday, October 11, 2009
Appealing to the Imagination
Extract from a recent article from Jon Bird.
Harry Gordon Selfridge, the founder of the legendary London department store which now bears his name, once said that “the whole art of merchandising consists of appealing to the imagination. Once the imagination is moved, the hand goes naturally to the pocket. But if the first appeal is to the purse, the imagination is apt to revolt and raise barriers against buying.”
Arguably, much of Australian retail is about appealing “to the purse” rather than “the imagination”. Hence we can end up with relatively sterile retail environments plastered with cardboard screaming about “this week’s offer”. The great retailers of the world, however, have always understood the importance of getting the customer’s juices going before asking for the order. And a big part of the stimulation has been in the form of exciting visual merchandising (VM).
According to David Jenkin in “What Great Retailers Do”, VM is a simple concept; “it’s all about presenting merchandise in the most eye-catching way.”UK and US retailers tend to put more emphasis on the importance of really inspiring VM. UK creative director and retail commentator Mary Portas resurrected Harvey Nichols in the UK by creating highly memorable shop windows and calls them “the art of the high street”. Mickey Drexler (now CEO of American apparel retailer J.Crew) built The Gap/Banana Republic/Old Navy empire on clever VM.
...
It’s time for Australian retailers to lift their sights and embrace VM on a more sophisticated level. By appealing to “the imagination” first and “the purse” second you might just find wallets opening automatically. Jon Bird is CEO of retail marketing specialist IdeaWorks (www.ideaworks.com.au). He can be contacted at jon.bird@ideaworks.com.au.
Harry Gordon Selfridge, the founder of the legendary London department store which now bears his name, once said that “the whole art of merchandising consists of appealing to the imagination. Once the imagination is moved, the hand goes naturally to the pocket. But if the first appeal is to the purse, the imagination is apt to revolt and raise barriers against buying.”
Arguably, much of Australian retail is about appealing “to the purse” rather than “the imagination”. Hence we can end up with relatively sterile retail environments plastered with cardboard screaming about “this week’s offer”. The great retailers of the world, however, have always understood the importance of getting the customer’s juices going before asking for the order. And a big part of the stimulation has been in the form of exciting visual merchandising (VM).
According to David Jenkin in “What Great Retailers Do”, VM is a simple concept; “it’s all about presenting merchandise in the most eye-catching way.”UK and US retailers tend to put more emphasis on the importance of really inspiring VM. UK creative director and retail commentator Mary Portas resurrected Harvey Nichols in the UK by creating highly memorable shop windows and calls them “the art of the high street”. Mickey Drexler (now CEO of American apparel retailer J.Crew) built The Gap/Banana Republic/Old Navy empire on clever VM.
...
It’s time for Australian retailers to lift their sights and embrace VM on a more sophisticated level. By appealing to “the imagination” first and “the purse” second you might just find wallets opening automatically. Jon Bird is CEO of retail marketing specialist IdeaWorks (www.ideaworks.com.au). He can be contacted at jon.bird@ideaworks.com.au.
A fingertip away from desire
A recent article by Jon Bird
In 1923, Robert Woodruff, then President of Coca-Cola, first stated that the iconic soft drink should always be “within an arm’s reach of desire”.Over the next half century or so, Coca-Cola met and exceeded Woodruff’s vision, popping up across the globe in convenience stores, supermarkets, restaurants and vending machines. Wherever thirsty consumers found themselves, there was bound to be an ice-cold Coke close by.Coke took 50 years to achieve its ubiquitous presence.
These days however, retailers can reach the same goal in the twinkling of an eye with relative ease, first via the internet and now the mobile phone. As I’ve written in several columns, the device in the palm of the shopper’s hand really does change everything. Suddenly, as the US consultancy Retail Forward notes, the “store” is no longer a location, but omnipresent. We are rapidly shifting from the concept of “place” to “anyplace” and retailers who recognise and capitalise on this fact will be winners in the future.
In a presentation last month in the US, Dan Stanek, executive VP of Retail Forward, identified that mobility = opportunity. Stanek said that transit, queues or the car can become shopping trips. With the right iPhone App, downtime can be turned into shopping time. The trick is to place your offer within a fingertip’s reach of desire during a customer’s idle moments.
Already, you can purchase music on the move from iTunes with just four clicks. Hear it, want it, click, click, click, click, it’s yours. It’s frighteningly simple... and personally, I love it.
Amazon is at the vanguard of m-commerce (mobile commerce), as they were with shopping via the web. Their new iPhone application elegantly allows you to fill a shopping cart with your fingertips no matter where you are. The app also features a neat function called “Amazon Remembers”. See something you like – say a chair that takes your fancy at a beach cafe – hit the Remembers button and your iPhone camera opens so that you can take a snap and automatically send it to Amazon. Then Amazon analyses the photo and tries to find an item just like it to offer you for sale. Clever stuff.Tesco in the UK is developing its own iPhone app to allow customers to do their supermarket shopping on the move. So you could fill your trolley on the bus, or perhaps even buy your groceries in the middle of a meeting.
US discount department store Target doesn’t yet allow you to easily purchase products from its application, but you can search for items on your mobile, check if they’re available before you shop (what’s increasingly called “know before you go”) and even get the in-store aisle location. Plus the latest deals in the Target Weekly ad are just a click away. And if you do see a product you’d like to purchase, you are linked through to Target’s online site.
Australian retailers are just starting to get their heads around e-commerce, and we can expect a rash of shopping-enabled sites in the next 12-18 months. But it’s worth starting to plan for an m-commerce world. Ask yourself this question: when customers desire your product or service during an idle moment, will you be there at their fingertips?
In 1923, Robert Woodruff, then President of Coca-Cola, first stated that the iconic soft drink should always be “within an arm’s reach of desire”.Over the next half century or so, Coca-Cola met and exceeded Woodruff’s vision, popping up across the globe in convenience stores, supermarkets, restaurants and vending machines. Wherever thirsty consumers found themselves, there was bound to be an ice-cold Coke close by.Coke took 50 years to achieve its ubiquitous presence.
These days however, retailers can reach the same goal in the twinkling of an eye with relative ease, first via the internet and now the mobile phone. As I’ve written in several columns, the device in the palm of the shopper’s hand really does change everything. Suddenly, as the US consultancy Retail Forward notes, the “store” is no longer a location, but omnipresent. We are rapidly shifting from the concept of “place” to “anyplace” and retailers who recognise and capitalise on this fact will be winners in the future.
In a presentation last month in the US, Dan Stanek, executive VP of Retail Forward, identified that mobility = opportunity. Stanek said that transit, queues or the car can become shopping trips. With the right iPhone App, downtime can be turned into shopping time. The trick is to place your offer within a fingertip’s reach of desire during a customer’s idle moments.
Already, you can purchase music on the move from iTunes with just four clicks. Hear it, want it, click, click, click, click, it’s yours. It’s frighteningly simple... and personally, I love it.
Amazon is at the vanguard of m-commerce (mobile commerce), as they were with shopping via the web. Their new iPhone application elegantly allows you to fill a shopping cart with your fingertips no matter where you are. The app also features a neat function called “Amazon Remembers”. See something you like – say a chair that takes your fancy at a beach cafe – hit the Remembers button and your iPhone camera opens so that you can take a snap and automatically send it to Amazon. Then Amazon analyses the photo and tries to find an item just like it to offer you for sale. Clever stuff.Tesco in the UK is developing its own iPhone app to allow customers to do their supermarket shopping on the move. So you could fill your trolley on the bus, or perhaps even buy your groceries in the middle of a meeting.
US discount department store Target doesn’t yet allow you to easily purchase products from its application, but you can search for items on your mobile, check if they’re available before you shop (what’s increasingly called “know before you go”) and even get the in-store aisle location. Plus the latest deals in the Target Weekly ad are just a click away. And if you do see a product you’d like to purchase, you are linked through to Target’s online site.
Australian retailers are just starting to get their heads around e-commerce, and we can expect a rash of shopping-enabled sites in the next 12-18 months. But it’s worth starting to plan for an m-commerce world. Ask yourself this question: when customers desire your product or service during an idle moment, will you be there at their fingertips?
Sunday, October 4, 2009
Top 10 brand and marketing trends for 2010
By Robert Passikoff president, Brand Keys Oct 2009
Niels Bohr once noted that "prediction is very difficult, especially about the future," but then he didn't have access to predictive loyalty metrics. Happily, we do. And, as they measure the direction and velocity of consumer values 12 to 18 months in advance of the marketplace and consumer articulations of category needs and expectations, they identify future trends with uncanny accuracy.
Having examined these measures, we offer 10 trends for marketers for 2010 that will have direct consequences to the success — or failure — of next year's branding and marketing efforts.
1) Value is the new black
Consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all. This spells trouble for brands with no authentic meaning, whether high-end or low.
2) Brands increasingly a surrogate for "value"
What makes goods and services valuable will increasingly be what's wrapped up in the brand and what it stands for. Why J Crew instead of The Gap? J Crew stands for a new era in careful chic — being smart and stylish. The first family's support of the brand doesn't hurt either.
3) Brand differentiation is brand value
The unique meaning of a brand will increase in importance as generic features continue to plague the brand landscape. Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for success — meaning sales and profitability.
4) "Because I said so" is so over
Brand values can be established as a brand identity, but they must believably exist in the mind of the consumer. A brand can't just say it stands for something and make it so. The consumer will decide, making it more important than ever for a brand to have measures of authenticity that will aid in brand differentiation and consumer engagement.
5) Consumer expectations are growing
Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive — and prosper.
6) Old tricks don't work/won't work anymore
In case your brand didn't get the memo, here it is: Consumers are on to brands trying to play their emotions for profit. In the wake of the financial debacle of this past year, people are more aware then ever of the hollowness of bank ads that claim "we're all in this together" when those same banks have rescinded their credit and turned their retirement plan into case studies. The same is true for insincere celebrity pairings: think Seinfeld and Microsoft, or Tiger Woods and Buick. Celebrity values and brand values need to be in concert, like Tiger Woods and Accenture. That's authenticity.
7) They won't need to know you to love you
As the buying space becomes even more online-driven and international (and uncontrolled by brands and corporations), front-end awareness will become less important. A brand with the right street cred can go viral in days, with awareness following, not leading, the conversation. After all, everybody knows GM, but nobody's buying their cars.
8) It's not just buzz
Conversation and community is all; eBay thrives based on consumer feedback. If consumers trust the community, they will extend trust to the brand. Not just word of mouth, but the right word of mouth within the community. This means the coming of a new era of customer care.
9) They're talking to each other before talking to the brand
Social networking and exchange of information outside of the brand space will increase. Look for more websites using Facebook Connect to share information with the friends from those sites. More companies will become members of LinkedIn. Twitter users will spend more money on the Internet than those who don't tweet.
10) Engagement is not a fad. It's the way today's consumers do business
Marketers will come to accept that there are four engagement methods including Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there is only one objective for the future: Brand Engagement. Marketers will continue realize that attaining real brand engagement is impossible using out- dated attitudinal models.
Accommodating these trends will require a paradigm change on the parts of some companies. But whether a brand does something about it or not, the future is where it's going to spend the rest of its life. How long that life lasts is up to the brand, determined by how it responds to today's reality.
Niels Bohr once noted that "prediction is very difficult, especially about the future," but then he didn't have access to predictive loyalty metrics. Happily, we do. And, as they measure the direction and velocity of consumer values 12 to 18 months in advance of the marketplace and consumer articulations of category needs and expectations, they identify future trends with uncanny accuracy.
Having examined these measures, we offer 10 trends for marketers for 2010 that will have direct consequences to the success — or failure — of next year's branding and marketing efforts.
1) Value is the new black
Consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all. This spells trouble for brands with no authentic meaning, whether high-end or low.
2) Brands increasingly a surrogate for "value"
What makes goods and services valuable will increasingly be what's wrapped up in the brand and what it stands for. Why J Crew instead of The Gap? J Crew stands for a new era in careful chic — being smart and stylish. The first family's support of the brand doesn't hurt either.
3) Brand differentiation is brand value
The unique meaning of a brand will increase in importance as generic features continue to plague the brand landscape. Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for success — meaning sales and profitability.
4) "Because I said so" is so over
Brand values can be established as a brand identity, but they must believably exist in the mind of the consumer. A brand can't just say it stands for something and make it so. The consumer will decide, making it more important than ever for a brand to have measures of authenticity that will aid in brand differentiation and consumer engagement.
5) Consumer expectations are growing
Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive — and prosper.
6) Old tricks don't work/won't work anymore
In case your brand didn't get the memo, here it is: Consumers are on to brands trying to play their emotions for profit. In the wake of the financial debacle of this past year, people are more aware then ever of the hollowness of bank ads that claim "we're all in this together" when those same banks have rescinded their credit and turned their retirement plan into case studies. The same is true for insincere celebrity pairings: think Seinfeld and Microsoft, or Tiger Woods and Buick. Celebrity values and brand values need to be in concert, like Tiger Woods and Accenture. That's authenticity.
7) They won't need to know you to love you
As the buying space becomes even more online-driven and international (and uncontrolled by brands and corporations), front-end awareness will become less important. A brand with the right street cred can go viral in days, with awareness following, not leading, the conversation. After all, everybody knows GM, but nobody's buying their cars.
8) It's not just buzz
Conversation and community is all; eBay thrives based on consumer feedback. If consumers trust the community, they will extend trust to the brand. Not just word of mouth, but the right word of mouth within the community. This means the coming of a new era of customer care.
9) They're talking to each other before talking to the brand
Social networking and exchange of information outside of the brand space will increase. Look for more websites using Facebook Connect to share information with the friends from those sites. More companies will become members of LinkedIn. Twitter users will spend more money on the Internet than those who don't tweet.
10) Engagement is not a fad. It's the way today's consumers do business
Marketers will come to accept that there are four engagement methods including Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there is only one objective for the future: Brand Engagement. Marketers will continue realize that attaining real brand engagement is impossible using out- dated attitudinal models.
Accommodating these trends will require a paradigm change on the parts of some companies. But whether a brand does something about it or not, the future is where it's going to spend the rest of its life. How long that life lasts is up to the brand, determined by how it responds to today's reality.
Seven ways to cut costs with retail systems integration and roll-outs
Retail technology like digital signage and next-generation POS can generate revenue, increase efficiency and satisfy customers – but it also requires intelligent use of resources to deploy and maintain. In this webinar, you'll learn seven strategies for working with your systems integration and roll-out teams in order to save money, make the most of your assets, and get deployments up and running faster.
Learn the best ways to communicate with front-line tech staff, and how to make sure they have what they need to use their time and resources efficiently.
Discover the hidden costs of an inefficient maintenance plan – and how you can eliminate them.
Find new ways to make deployment launches smooth and painless.
hit the link for details..
Learn the best ways to communicate with front-line tech staff, and how to make sure they have what they need to use their time and resources efficiently.
Discover the hidden costs of an inefficient maintenance plan – and how you can eliminate them.
Find new ways to make deployment launches smooth and painless.
hit the link for details..
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