STORES Magazine - September 2017 - 64
How Data Will Save Retail
By Ben Reynolds, Senior Director of Enterprise Retail Solutions at MaxPoint
From our vantage point at the intersection of the online
and physical worlds, we've seen the convergence coming.
It brings formidable challenges for both camps.
mazon's multi-billion dollar acquisition
easy purchasing, same-day shipping and
of Whole Foods has been hailed as
the arrival of a retail convergence between
There are ways bricks-and-mortar retailers
ecommerce and bricks-and-mortar retail.
can do the same.
This retail convergence is bringing the data
* In the store, shopper traffic and behavior
and customer intelligence of online to
data captured by new sensing and pathing
physical stores. In truth, it is an indicator of
technologies give bricks-and-mortar retailers
an underlying evolution of retail that's been
the same level of customer traffic intelligence
going on for a while.
as their ecommerce counterparts. These devices
Amazon definitely is on the front end
sense in-store activity as it happens. This helps
of this convergence, but they're hardly the
retailers see and address friction points - such
only ones. Several online retailers such
as long checkout lines and spaces with high
as Indochino, Fabletics, Modcloth and
dwell times but low conversion.
Bonobos are starting to compete in
* Out-of-store data, such as demographics,
retailer spending history, product purchasing
With e-tailers establishing beachheads
habits, online interests and purchase intent
in the traditional space, the message to
indicators can be captured at the household
bricks-and-mortar store operators could not
level, giving online and traditional retailers
be clearer: Act now to respond to changing
a 360-degree view of their customers for a
buying dynamics and customer needs. Evolve
more intimate and personalized engagement.
With e-tailers establishing * Richer consumer data is enabling
to compete in a new, converged ecommerce/
beachheads in the
bricks-and-mortar reality or cease to exist.
new measurement models that provide
In particular, invest in new technologies that
closed-loop shopper analysis from intent
traditional space, the
enable deeper consumer behavior insights to
message to bricks-andinform the customer experience.
The retail convergence is here, and is being
mortar store operators
From our vantage point at the intersection
manifested in new shopping models. Retailers
could not be clearer:
of the online and physical worlds, we've seen
that adapt and make necessary adjustments
Act now to respond to
the convergence coming. It brings formidable
to the overall experience (online and in-store)
changing buying dynamics to meet their customers' needs will win.
challenges for both camps. E-tailers like
Amazon know every movement we make on
The seminal question is: "What does that
and customer needs.
their sites - when we log in, what we search
customer really want?" To start, they want
for, what we abandon and how we review
understanding and a frictionless experience.
products. This has allowed them to redefine the shopping
How do we get there? Data - in the store, out of the store and
experience by providing customized curated product lists,
overall measurement - helps answer that question and creates
along with reviews, price options,
STORES September 2017