Retail Marketing, Smart Retail, In-store Analytics, Trends on Retail and Consumers, Drivers for Smart Retail, Data for retail

1. Evolving Smart Retail
Through In-store
Analytics
Improve Customer Experience with a Data-
first Mindset Using In-store Analytics
Technology Solutions
Name: Nilendra Singh
PRN No: 17020348012
Course: Ex-MBA 2017-2020
Subject: Retail Marketing
Case: Highlights of Frost & Sullivan survey

2. Background
 Physical retail stores face diminishing prospects due to the increase of e-commerce
stores and the economics of last-mile logistics. Yet, these stores remain the most
important touchpoint for customers.
 Customers are increasingly incorporating digital transactions into their shopping
experience through mobile devices, with habits like “webrooming” and “showrooming”
becoming more common.
 Retailers, therefore, must focus on bringing the digital experience to their physical
stores.
 The transition is done in stages. In the first stage, the stores gain digital awareness by
using Internet of Things (IoT) and technology. The second stage involves enhancing the
digital interaction experience with the customer to improve immersion.
 Implementing digital awareness and digital immersion in the physical store provides
retailers with business insights and enables them to make data-driven decisions.

3. The Transforming Retail Landscape
Technology and Our Changing Society
 Society has completely integrated technology into daily life. Mobile devices and the internet have changed the way people live, work and play.
 The new connected generation is also causing shifts in consumer demands. Learning from their experience with online stores, customers are
expecting more personalized, on-demand services.
Bricks and Clicks
 Before the year 2000, the retail business are primarily physical retail stores (“bricks”) like department stores, supermarkets, and hyper markets.
 The advent of e-commerce (“clicks”) after 2000 led to the proliferation of online stores and mobile applications (apps).
Continued Importance of Physical Stores
 In spite of the constant negative news regarding the ”demise” of retailing due to the rise of e-commerce, physical stores remain the most
important customer touch point with shoppers.
 e-commerce accounted for less than 8% share of the total global retail sales in 2015. Its share is even smaller in Southeast Asia, home to many
developing countries, at less than 1%.
 Retailers need to better leverage their physical stores by digitally enhancing the in-store experience.
A Need to Incorporate Smart Retail: Digitizing the Physical Store
 Digitization of the retail store begins with understanding the customer journey during a visit, to generate vital data regarding store design and
the product ranges stocked. This allows for data-enabled decision-making, helping retailers optimize their layout and design.
 Besides the tracking, retailers also need to progress further toward digital immersion – i.e., increasing client interactivity to positively influence
customer spending and brand loyalty.

4. Impact of Selected Mega Trends on Retail and Consumers

5. Need to Move Away from Traditional Ideas of Retail
 Physical retail stores face diminishing prospects due to the increase of e-commerce
stores and the economics of last-mile logistics
 Enhancing the in-store experience is key to bringing customers back to brick-and-
mortar stores.
 The final frontier in digital and omni-channel retail is bringing the digital experience
into physical brick-and-mortar stores.
 Unlocking the sub-conscious mind digitally – IoT is able to quantify what happens in
a store beyond just what is purchased at the point of sale (POS).
 Digital immersion is key to driving customer experience in the store

6. Drivers for the Shift to Smart Retail
Rising Customer Expectations
 Conditioned by excellent online experiences eg. immediate and personalized service—customers expect similar expectations from
in-store retail (have a declining tolerance for long lines, slow service, and out-of-stock merchandise)
Consumer Mobility
 An increase in use of mobile devices for retail activities, including product and store research, customer service, “showrooming”,
“web rooming”, and purchases.
The Role of Social Media
 Social media has intensified the pace at which consumer products and their attributes (features, designers, styles, designs, colors)
gain or lose popularity with the consumer.
Empower Sales Staff with Digital Resources
 The physical store remains the most important customer touch point. Customers often know more about products than the sales
staff. Offering the staff a helpful tool can empower them with product information/ data to enhance their selling capabilities.
Intensifying Competition
 Brick-and-mortar and pure-play e-commerce retailers are battling with each other, while at the same time competing against new,
more agile, lower-cost retailers and pop-up stores on short-term leases.
 The increased competition is clearly visible, with brick-and-mortar stores like Walmart moving strongly into the e-commerce space
to compete against the likes of Amazon, and Amazon testing data-centric concept physical stores.
Omnichannel
 Customers now increasingly interact with retailers, both online and off-line, using social media and on mobile devices. Retailers
need to make investments into people, process, and technology to integrate in-person and online retail channels to gather a 360-
degree view of their customers’ preferences (for example, analytics to drive product recommendations)

7. What is Smart Retail?
 What it achieves? Better understand customers and their behavior
 How Smart Retail can help? Optimize shopping experiences through
multiple channels
 Why is there a need to think about Smart Retail? To deepen customer
loyalty, brand experience, and business performance

8. Future of Retail
Creating interactive experiences is the key to enhance customers’ experience

9. Creating a “Data Fabric” for Smart Retail
 Retailers can deliver business outcomes through new data sources mined
through digital means.

10. Dimensions of Data

11. Key Takeaway: The Future of Retail
 The future of retail involves influencing customers through interactive
experiences.
 To meet the changing needs of customers, retailers need to also adopt
technology and enhance their in-store experience.
 Future retail needs to integrate aspects of both the physical store and e-
commerce (“bricks and clicks”) formats by leveraging technology to give
customers the best shopping experience.
 Physical stores remain the most important customer touch point with
shoppers.

12. Thank You 