infographic: realizing the value of supermarket pos data

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Page 1: Infographic: Realizing the Value of Supermarket POS Data

$5

$10

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INDUSTRY OVERVIEW

� Get access to data immediately as new technologies, like Hadoop, allow queries to be run against hundreds of millions of records in seconds�Augment data from sensors, offers, loyalty, SKU catalog, locations and more to gain a complete operational view�Transform raw POS data into a platform with a unified application programming interface (API) layer�����9ddgo�Yfq�\]n]dgh]j�lg�im]jq�\YlY�k][mj]dq�naY�9HAk�oal`gml�\aj][l�AL�afngdn]e]fl�����:mad\�Yhhk�^gj�eYfY_]jk�lg�Y[[]kk�\YlY�Yfqlae]$�Yfqo`]j]�����Hgo]j�afl]jY[lan]�\a_alYd�afl]dda_]f[]�\Yk`ZgYj\k

�Grow revenue by optimizing each store for their target customer and demographic market �Use machine learning to derive rich insights, including�����@go�[Yf�A�hjgna\]�egj]�j]d]nYfl�hjg\m[lk�lg�_jgo�j]n]fm]�Yf\�[j]Yl]�Y�Z]ll]j�k`ghhaf_�]ph]ja]f[]7������<]l]jeaf]�hjg\m[l�j]dYlagfk`ahk� a^�Y�[gfkme]j�Zmqk�P$�o`Yl�]dk]�oadd�l`]q�dac]dq�hmj[`Yk]!7�����O`Yl�ak�l`]�a\]Yd�hja[]�^gj�Y�_an]f�hjg\m[l�Zq�\Yq�g^�o]]c�Yf\�lae]�g^�\Yq7�����@go�eYfq�[mklge]j�k]_e]flk�\g�A�`Yn]�Yf\�o`Yl�Yj]�l`]q7�����<g]k�eq�klgj]�hjg\m[l�eap�eYl[`�l`]�dg[Yd�\]eg_jYh`a[7

� 75% of retail professionals believe inventory management has the greatest impact to managing the supply-side� Machine learning applied to POS data can help you anticipate demand by understanding:������O`Yl�Yf\�`go�em[`�afn]flgjq�k`gmd\�Z]�`]d\�lg�eYpaear]�[Yk`�^dgo7������@go�[Yf�A�hjgb][l�kYd]k�Zq�\Yq�g^�o]]c�Yf\�\Yq�g^�egfl`7������@go�k`gmd\�A�`Yf\d]�k]YkgfYdalq�gj�hjgeglagfYd�al]ek7

�Checkout fraud is estimated to cost $828 million dollars�Machine learning can automate fraud identification; APIs can trigger alerts that detect:����9fgeYda]k�af�ljYfkY[lagf�`aklgjq����=p[]kk�nga\�gj�ko]]l`]Yjl�\]Ydk����Gl`]j�^jYm\md]fl�ka_fYdk

� POS logs hold key inputs to predicting:�����@go�eYfq�ljYfkY[lagfk�oadd�g[[mj�Zq�`gmj�Zq�\Yq7�����9j]�[]jlYaf�[Yk`a]jk�egj]�hjg\m[lan]�l`Yf�gl`]jk7�����O`Yl�ak�l`]�ghlaeYd�eap�g^�^dggj�klY^^�lg�Y[`a]n]�l`]�\]kaj]\�[mklge]j�]ph]ja]f[]7

IMPORTANT TRENDS

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CITY

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VARIETY+VOLUME

Structured Data Unstructured Data

Data WarehouseHR Records

Financials

TransactionHistory

AnalyticalFactory

Shipments

Customer ProfilesPayments

Weather

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Sensor DataLocations

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EnvironmentalSharePoint

Hadoop/Map Reduce VideoOnline Forums

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Twitter

FacebookGoogle+

CHANGING CONSUMER PREFERENCES <A?AL9D�9F<�EG:ADALQ

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ECOMMERCE AND SAME-DAY DELIVERY

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SAME-DAY DELIVERYPros: -/��dac]�l`]�[gfna]f[]�g^�k`ghhaf_�^jge�`ge]3�,/��dac]�l`]�[gfn]fa]f[]�g^�`ge]�\]dan]jq

Cons: The cost to deliver low-margin groceries may outweigh the incremental contribution margin gf�l`gk]�kYd]k&�.(��g^�[gfkme]jk�o]j]�oaddaf_�lg�hYq�Z]lo]]f��)&+(�Yf\��.&-(�^gj�`ge]�delivery, but few were found to pay for in-store pickup.

�=l`fa[�hghmdYlagfk�oadd�af[j]Yk]�lg�,/��g^�MK�[gfkme]jk$�Y�)+��af[j]Yk]�af�l`]�f]pl�l]f�q]Yjk�The 65+ yr. old segment will increase 7%�L`]�mf\]j�)0�Yf\�*-%,,�qj&�gd\�k]_e]flk�oadd�\][j]Yk]�All other age segments will remain flat

VALUE OF ON-DEMAND POS DATA

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2014

�The most untapped area of value for POS transaction data is supply chain collaboration �The primary challenge with using this data is volume, velocity, and cost as larger retailers may even record millions of data points per hour�Direct Store Distributors (DSD) benefit the most from immediate sales information�����<K<�al]ek�eYc]�mh�d]kk�l`Yf�*-��g^�mfal�kYd]k$�Zml�egj]�l`Yf�`Yd^�g^�l`]�hjg^al�����<K<�kmhhda]jk�j]hd]fak`�al]ek�oal`af�log�\Yqk$�-p�^Ykl]j�l`Yf�ljY\alagfYd�hjg[]kk]k�����<K<k�lqha[Yddq�gof�l`]�afn]flgjq�Yddgoaf_�j]lYad]jk�lg�dgo]j�ogjcaf_�[YhalYd�f]]\k

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KEY FINANCIAL METRICSAmazonFreshGn]j�-(($(((�al]ek�YnYadYZd]�af[dm\af_�fresh grocery and local products=phYf\af_�lg�*(�eYjc]lk�Zq�*(),

EMERGING THREATChanging consumer preferences<a_alYd�]ph]ja]f[]k�Yf\�egZadalq:a_�\YlY�Yf\�h]jkgfYdarYlagfeCommerce and same-day delivery

IMPORTANT TRENDS

VALUE DISCOVERY AND OTHER ACTIVITIES(% Shoppers who use technology for more than 25% of Shopping Trips)

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�Grocers are poor at delivering highly relevant digital coupons to customers�Product recommendations can be built from a variety of sources; POS data is the top source�Personalized, digital coupons have numerous benefits ����@a_`]j�j]\]ehlagf2�\a_alYd�[gmhgfk�Y[`a]n]�Yf�Ydegkl�*(p�`a_`]j�j]\]ehlagf�jYl]�l`Yf�ljY\alagfYd�e]\amek����Af\ana\mYdar]\2�\a_alYd�e]\amek�[Yf�\]dan]j�kh][a^a[$�mfaim]�[gmhgfk�^gj�]Y[`�af\ana\mYd����LjY[caf_2�9fYdqr]�j]\]ehlagf�jYl]k�^gj�\a_alYd�[gmhgfk�af�j]Yd%lae]�nk&�o]]ck�lg�_Yl`]j�l`ak�af^gjeYlagf�^gj�hjafl]\�[gmhgfk����Dgo]j�[gkl2�j]lYad]jk�fg�dgf_]j�`Yn]�lg�kh]f\�egf]q�lg�hjafl�[aj[mdYjk����Laeaf_2�\a_alYd�[gmhgfk�[Yf�Z]�dYmf[`]\�af�/*�`gmjk�nk&�mh�lg�]a_`l�o]]ck�^gj�hjafl�hjgeglagfk����NajYdalq2�\a_alYd�[gmhgfk�[Yf�Z]�k`Yj]\�em[`�egj]�]Ykadq�lg�eYpaear]�j]Y[`

POS Data

REALIZING THE VALUE OF SUPERMARKET POINT OF SALE DATA

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HJG:D=E SOLUTION

L`]�egkl�nYdmYZd]�\YlY�^gj�_jg[]jk�lg�]pljY[l�gh]jYlagfYd�afka_`lk�Yf\�grow cash flow from is point-of-sale (POS) transaction logs. Historically, HGK�dg_k�o]j]�[gehd]p�Yf\�[gkl�hjg`aZalan]�lg�klgj]�Z][Ymk]�]n]f�Y�keYdd�retailer could process tens or hundreds of thousands of records daily.

�Changing consumer preferences that favor value and relevance

�The imminent competitive threat of AmazonFresh

�Drastically declining data storage fees which now allows big data to be

analyzed at a reasonable price

�The beneifts for on-demand supply chain collaboration, including data

sharing and adaptive intelligence business processes

Supermarket retailers, regardless of size, will be at a significant competitive disadvantage if they do not invest in modern technologyto facilitate data-driven marketing and operational strategies due to:

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Shopper Feedback

Automated Product Recognition

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REFERENCES

CONSUMER SEEKING DISCOUNTS(% of Shoppers)

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9FLA;AH9L=<�EG:AD=�9;LANALA=K68% of consumers believe mobile will play a significant role af�l`]�k`ghhaf_�]ph]ja]f[]

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SWIFT IQ

Always ]p`aZal]\�behavior

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recession

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recessionary behavior

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going forward

Lowerprices

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Lower prices

on specific items

:]ll]j�grocery product variety

and selection

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food quality and variety

Get coupons pre-trip

Chechk prices

pre-trip

Research products pre-trip

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on mobile device

Self checkout scan app

Loyalty application

In-store navigation

tool

Compare pricing

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