STORES BIG Show - Monday, January 11, 2010 - (Page 1)

Monday Convention Daily Visit Jesta I.S. Complete end-to-end solutions Sourcing | Retail | POS | SCM at booth 2437! January 11, 2010 Keeping Them Happy: Studying Shopper ROI ome might see seasons of economic crisis as a time for keeping heads down and plodding on. In Brazil, however, a successful seller of electronics, furniture, appliances and toys has been focusing on innovation instead—such as opening 50 stores in one day with 2,000 new jobs while other companies were laying employees off; creating sale days with such deep discounts that customers line up a week in advance; and honoring employees of the month with their pictures on billboards. Rather than unrelated, scatter-shot methods, however, Magazine Luiza’s efforts have all stayed true to a clear company strategy: “a strong and truthful focus on client well-being,” says Frederico Trajano, the company’s sales and marketing general manager. And so far, so good: 85 percent of those new Sao Paulo stores were at profit level within a year, that year’s revenue matched the company’s previous 46 and Magazine Luiza received free advertising via media coverage. No wonder, then, that Magazine Lu- S Frederico Trajano spoke of a“strong and truthful focus on client well-being.” iza was one of three companies featured as part of “Shopper ROI: New Strategies for Optimizing Market Spend” midday Sunday. Magazine Luiza offered the big-picture view; Barbara Hagen, senior marketing director, brand strategy and communications, Best Buy Co., sharpened the focus from a macro to a micro perspective with its customer centricity efforts; and Angelo Quagliata, director, strategic accounts, Proclivity, spoke about available technology for companies hoping to make it happen. Lack of data, according to Quagliata, is not the problem. It’s knowing what to do with it that matters, and Proclivity is able to establish valuations for each consumer relative to each SKU. “We forecast what each consumer is most likely to buy and at what price over time,” he said. That allows insight and platforms for making informed decisions. At Best Buy, the customer centricity efforts began several years ago with the grouping of customers into segments. But more recently, the focus is on how those customer segments are communicated. Personalization leads to increased customer retention and loyalty, improved response and close rates and more. As such, there are now personalized messages for different segments. A young man who visits the Best Buy website and then goes on to ESPN, for example, may receive a See “ROI” on page 24 Diagnosing, Predicting the Future of Retail Business Analytics well-attended Sunday breakout session entitled “Sowing the Seeds of Change: The Future of Retail Business Analytics” was kicked off by NRF’s Lisa Marzetti. Noting that two of the morning’s panelists had been quoted in a major article in the business section of the January 3 issue of The New York Times, Marzetti quoted Times writer Steve Lohr saying “retail is emerging as a real-world incubator for testing how computer firepower and smart software can be applied to social science—in this case, how variables like household economics and human behavior affect shopping.” This brought on the panel itself: moderator Lori Schafer, executive advisor, retail solutions, SAS Institute; Chris McCann, president, 1-800-FLOWERS.COM; and Tom Davenport, president’s distinguished professor of information technology and management, Babson College. “What,” asked Schafer, “do we mean by business analytics?” What we mean, she said, is information that provides answers, or at least clues, to two different kinds of questions. Diagnostic analytics look at what happened, what the problem was and what to do about it. Predictive analytics concern themselves with why they occurred and what would happen if various different scenarios were to play themselves out. In terms of subject matter, she said, there are four types of business See “Analytics” on page 24 Tom Davenport (left) of Babson College and 1-800-FLOWERS.COM’s Chris McCann.

Table of Contents for the Digital Edition of STORES BIG Show - Monday, January 11, 2010

STORES BIG Show - Monday, January 11, 2010