Canadian Retailer - Holiday 2016 - 56

SPECIAL ONLINE FEATURE

CR: Data has become a massive tool used by retailers to help them do everything from merchandise to plan
new store openings. But, there are few retailers out there who seem to be able to use to its greatest advantage.
With so much customer data out there, how can retailers best leverage it to enhance the retail experience and
generate loyalty among consumers?
Warner: The next evolution of cus-

tomer engagement and the new retail
operating model is dependent upon
retailers creating a 360-degree view
of their customers. They must start
by collecting, cleansing, matching
and merging all of the data, and then
leveraging customer transaction,
interaction and preference data from
every customer touchpoint (e.g.
online, mobile, stores, call center,
loyalty, etc.). As new technologies
(e.g. beacons, biometric verification,
virtual reality, movement sensors,
and connected products) are incorporated into the retail ecosystem, the
retailer's ability to enhance shopping
experiences will be multiplied.
Data is the bridge that will enable
retailers to provide seamless crossThe new physical retailing imperative
Retailers must
stop looking at
e-commerce as a
channel and realize
that digital requires a
wholesame business
model change

Retailers must
increase their speed
and trajectory of
change to remain
relevant and
competitive

Retailers must
embrace innovation
with precision business purpose

50 |

As brick-an-mortar stores evolve, emerging digital technologies and services
will reduce their operational costs.
Connected shelves
SKI-level RFID

70%
61%

channel experiences that are relevant
and truly personalized to the individual. It's also the single most important resource that retailers own. With
today's real-time (or near real-time),
big data, and analytics technologies,
for the first time retailers can harness
all types of data from all sources to
enable data-driven decisions, discover new insights and prioritize investments. While there are countless
applications, here are few examples:
* Data from in-store sensors (e.g.

Connected packaging

61%
58%

New delivery methods (e.g. Uber)

heat sensors, shopper pathing, IoT
connected products) will be used
to re-design store layout, footprint,
and merchandising/assortment
and inform product design.
* Data from customer behavior will
be used by marketers to reduce the
number of campaign/marketing
pieces delivered to a given customer.
* Data from SKU-level RFID tagging will be used to optimize
owned inventory to fulfill customer demand.

CR: Recent research from a number of different sources shows that
today's consumer shops most every channel-they're shopping inperson or online using their mobile device or their laptop or desktop
computer. Considering this evolution, how can retailers ensure that
they create a seamless experience between their channels? What
needs to happen to become a true omnichannel retailer?
Warner: The reality is that the vast majority of shoppers are omnichannel
shoppers. The majority of customers today do research online and purchase
in stores. But, most retailers haven't fully evolved to enable seamless, valueadded omnichannel experiences. Cognizant's 2016 Shopper Experience Study
showed that only 31 per cent of shoppers are experiencing consistently positive omnichannel experiences when making a purchase via multiple channels.
Retailers must quickly evolve to meet their customers' expectations
related to omnichannel shopping. Following are some key focus areas:
* Enable a 360-degree view of customers along with analytics to create
individualized customer experiences.
* Enable customers to fully experience your brand using their own devices through well-designed customer-facing technologies (e.g. websites, mobile, digital marketing, etc.).
* Push innovation, test and learn and improved speed to market. Create an
environment that values new technologies and enablement models (e.g.
platform as a solution, cloud, etc.) and embraces a "fail fast" mentality.
* Ensure omnichannel enhancements consider technology, experience
design, process re-design, policy definition, training, and change management with a goal of delivering flawless customer experience.
* Change P&Ls, employee incentives, budgeting processes, and organizational design to encourage customer-centric decisions versus channelcentric decisions.

CANADIAN RETAILER | LOSS PREVENTION ISSUE

Table of Contents for the Digital Edition of Canadian Retailer - Holiday 2016