Guest Blog by Jon Stine
It’s no secret that shoppers increasingly prefer the experience provided by e-commerce retailers. Brick and mortar brands have long excused that preference with references to lower prices and at-home convenience – but the truth of the matter is that best of the e-commerce brands win with data.
Take Amazon, for example. Consider their best-in-class customer experience, complete with personalized recommendations, suggestions of “go-withs” and accessories, ideas from others, and shipping addresses on file.
All working together to positively influence shopper decisions, to create bigger baskets and an emphatic “yes.” And all created through data acquisition, analysis, and action.
In today’s internet-of-everything world, it’s not just online retailers who can create new value from the realm of data. Brick and mortar retailers can take a page from their playbook and leverage the people, processes and things that increasingly connected to the Internet to better predict when and where consumers will want to buy, and ultimately capture more revenues.
For that last few years, Cisco has been watching the impact of the Internet transform the retail industry. Our research started with the observation that retailers just aren’t taking advantage of data already available. Here is how retailers can better connect and capture the data available to them to increase profits this holiday season and beyond:
1. Connect and Build Customer Trust: When customers freely share data with trusted brands, (via social media, mobile [location-aware] or at the website), retailers have the opportunity to upsell and match offers online and in the physical store – leading to greater revenue.
Example: Amazon shoppers don’t mind the retailer knowing where they live, their browsing history and what their favorite brands are because in exchange for this information, Amazon gives them personalized recommendations tailored directly to their needs.
2. Maximize Your Manpower Through Connectivity: Employees can access and share best practices, operational alerts and develop smart training and development tools from their mobile device, while giving managers new insights into efficient ways to allocate sales personnel to drive profits. In addition, employees can provide real-time feedback on product and promotion performance – leading to improved advertising, marketing and additional revenue.
Example: Imagine if your top sales person could be in all your locations everyday, providing expert advice to shoppers and suggesting additional items to go with their purchases. A workforce connected video collaboration can do just that. And by recording top performers, other employees can watch and learn how to do a successful upsell from anywhere, at anytime.
3. Drive Higher Levels of Stock Availability: In-stock performance is one of the four most critical indicators to overall store performance. With automated intelligent stock management and shelf sensing, stores can keep track of merchandise, order stock when inventory falls below a certain level and service customers – all without employee intervention.
Example: Numerous apparel retailers are now rolling out item-level RFID on their private label assortments. Numerous studies have documented the value of that investment in reducing stock-outs in basics, and lifting turn and revenues. Such an investment also pays dividends in omni-channel management, as it allows retailers to create an “endless aisle” of linked and available inventory.
4. Tap Into Dark Assess In-Store: By connecting dark assets like video surveillance cameras, social media, customer’s Wi-Fi signals to online analytics, retailers can predict new trends and empower employees to respond to drive profitability.
Example: A leading retailer is using sensors in the parking lot to help employees anticipate store traffic, and more efficiently staff checkout lanes.
5. Make Your Supply Chain Transparent: Retailers need to have full visibility across the supply chain process by connecting every component. This includes tracking materials from the source, to the factory, to the delivery truck and ultimately to the store or warehouse. In this model, retailers can anticipate exceptions to business rules and respond before anyone else.
Example: If a retailer has complete visibility in to the supply chain, they will know exactly when a shipment falls behind, and why. They don’t need to wait for a shipment to be late to know there is a problem. This allows them to reallocate inventories and promotional schedules as necessary.
These tips are just the beginning. There are countless ways to take advantage of the data available to your organization. Data comes from everywhere and there are trends starting right in front of you, all you need to do is be on the look out to realize the potential revenue they can provide.
Jon Stine is director, retail industry for Cisco Consulting Services