intelligent merchandising: creating a unique shopping...

An Economist Intelligence Unit report sponsored by SAP

Intelligent Merchandising:Creating a Unique Shopping Experience PART ONE Understanding the customer

© The Economist Intelligence Unit 2007 �

Intelligent Merchandising: Creating a unique shopping experience

PART ONEUnderstanding

the customer

Intelligent Merchandising: Creating a unique shopping experience is a three-part Economist Intelligence Unit report sponsored by SAP. The Economist Intelligence Unit bears sole responsibility for this report. The Economist Intelligence Unit’s editorial team conducted the interviews and wrote the report. The findings and views expressed in this report do not necessarily reflect the views of the sponsor. Stephen Harris was the author of the report and Rama Ramaswami was the editor. Richard Zoehrer was responsible for layout and design. Our thanks are due to all the interviewees for their time and insights.

May 2007

Preface

� © The Economist Intelligence Unit 2007


PART ONEUnderstanding the customer

Introduction

ack in the late 1990s, many of the bulletin boards and cubicles at the

headquarters of Dell Computer sported a sign that read “The Customer Experience: Own It.” Those were not empty words. Dell employees’ treatment of customers directly affected their bonuses and profit sharing. Dell was “customer-centric” long before that expression was coined—and it has gone on to enjoy the fruits of its then-innovative approach. Today, however, retailers face unprecedented challenges when they try to make that kind of intimate connection with customers. Fierce competition, new manufacturing locations, and the disappearance of exclusive buying arrangements and proprietary sourcing have created a highly complex business environment. Commerce has become transparent,

thanks to the Internet and increasingly sophisticated information technologies. At the same time, increasing incomes in China, India and the Pacific Rim are helping consumers in those regions join the ranks of the insatiable global consumer, bringing new money and enthusiasm to the marketplace. To customers bombarded with so many products and experiences, it is the brave retailer who can claim to offer anything unique by way of merchandising or customer service. So just how do retailers try to hook customers with fresh, unusual and relevant shopping experiences? We aimed to answer that question through a global survey of 180 senior retail executives, conducted by the Economist Intelligence Unit on behalf of SAP. We investigated three aspects of retail merchandisers’ relationship with customers: understanding customer behaviour, anticipating what their needs are likely to be in the future and inspiring customers to buy. This paper is the first of a three-part series discussing these issues.

B

About our surveyIn April 2007 the Economist Intelligence Unit conducted an online survey of 180 senior global executives from the retail industry. The survey queried respondents on their current and planned strategies to understand and anticipate customer needs. Forty percent of the respondents are C-level executives, 18% of whom are chief mer-chandising officers or heads of merchandising. Twenty-nine percent of the respondents are located in North America; 29% in Western Europe; 25% in the Asia-Pacific region; and 17% in Latin America, Eastern Europe, the Middle East and Africa. Of the total sample, 40% report revenues of under US$500m; 33% post revenues of US$500m to US$5bn; 10% claim annual revenues of US$5bn to US$10bn; and 17% report that their annual revenues are more than US$10bn. In addition to the survey, we conducted interviews with senior execu-tives worldwide to get detailed responses and analyses.

Please select the one technique your company uses mostto identify and understand its best customers.

Tracking of purchasing records through loyalty cards (recency, frequency, monetary value) 40%

Formal use of surveys/questionnaires at point-of-sale (POS) 26%

Analysis of participation in incentive contests and programmes (eg, promotions)15%

Analysis of dispute resolution (eg, returns, pricing errors) 9%

Other 8%

Don’t know 2%




the customer

History lessons

hen it comes to understanding customer behaviour, retail

executives start with traditional merchandising values. Worldwide, our survey results show that the three most frequently chosen descriptors of the ideal retail experience (in order of preference), are fulfilment, value and convenience. One of these key words, value, has a tangential relationship to price, but the other two, fulfilment and convenience, have primarily to do with service, which is increasingly becoming a key differentiator. Delivering good customer service depends on understanding the customer. The top three methods that our survey respondents use to identify and understand their best customers are purchasing records (40%), questionnaires (26%) and contests (15%). Retailers apparently prefer to use the statistical data most readily available to understand their customers’ habits and proclivities. This use of recent history to predict external trends is as old as the merchandising profession. And paying attention to external trends is critical, according to Rebecca Jewett, managing partner of the Windward Group, a strategic consultancy for multi-channel retailers, and previously a top executive at such prominent U.S.-based apparel retailers as Talbots, Norm Thompson Outfitters and Chadwick’s of Boston. “Determining the lifetime value of your key customer segments is a critical analysis. It tells you how much to invest in maximising the productivity of those segments,” Jewett says. The low status that our respondents accord to dispute resolution (9%) as a tool for improving

performance suggests that the old saw “A customer that complains is doing you a great service” may be slipping from common acceptance. Like the returns department, the service (or lack thereof) that the dissatisfied customer receives is frequently ignored as a potential source of information and stimulus for performance enhancement. A clear exception to this trend is Bakker of Holland, the world’s largest direct marketer of horticultural merchandise. According to John van Rooijen, product manager, “We learn from complaints, which makes it possible to bring products and services to a higher level continuously.” Bakker tracks the details of customer concerns on their customer accounts, recording the article concerned, the country of complaint, the type of complaint, the date received and the date of the shipment. This tabulated report is monitored daily to determine whether to change shipment methods, adapt product quality, change packing procedures or drop the article entirely. This attention to the detail of customer concerns allows Bakker to bring the best possible service to their 4m customers in 18 European countries. In a clear understatement, van Rooijen asserts, “Our goal is customer satisfaction.”

W




radition also underlies the strategies used to enhance customer loyalty.

Strategies that appealed to more than half the respondents were introducing new products (63%), local store activities (56%) and targeted discounts for specific customers (52%). With new-product intro-ductions failing at a rate of 85%, the search for the perfect product continues worldwide, followed closely by attention to in-store promotions and selective af-finity discounting. Reinvention, demonstrations and coupons are as old as the supermarket, and seem to have rooted themselves as loyalty enhancers across categories and continents. “Merchandising leaders relentlessly search for new product,” says Jewett. She characterises merchandis-ers as either innovative or stale (see box below). “You can ‘smell’ the leaders by just spending a few minutes in their offices.” Bakker’s commitment to new product amounts to

“15-20% new articles in their line every season.” Van Rooijan explains the key to fresh merchandise lies within “a good and committed relationship with their suppliers.” Contented suppliers bring new develop-

Sniffing out the winners

T

n Wait for customers to accept trends

n Merchandise based on history

n Rely on line extensions

n Risk averse in product development

n Focus on the fact that most products fail

n Make excuses for the dogs

n Carry too many unproductive SKUs

n Create trends

n Lead their customers

n Push the envelope in product development

n Cold heartedly kill the dogs

n Encourage responsible risk

n Expect a great deal

n Strive relentlessly

n Have swagger and bravado

‘Tired’ merchandisersMerchandising leaders

Which of the following promotional techniques does your company undertake to increase customer loyalty?(Select all that apply)

Incentive programmes for repeat purchases at the POS (eg, cards, clubs)

Off-site incentive programmes for repeat purchasers (eg, rewards, discounts)

Follow-up phone calls to customers after significant purchases

Customised promotions based on past purchases

“Special customer only” events and promotions

Targeted advance notification for sales and promotions

Special e-mail discount codes for best customers

Other

Don’t know

29%

48%

37%

41%

19%

46%

2%

3%

42%

© The Economist Intelligence Unit 2007 7



the customer

ments to their best buyers first, offering exclusive ac-cess to new products for set periods of time, and a real advantage to the retailer. “Furthermore, our product managers are visiting all relevant fairs, reading all trade periodicals and cruising the internet.” As always, however, “Our customers evaluate the new products,” van Rooijen says, “The level of sales, combined with the level of complaints, are most impor-tant for [new product] evaluation.” Store offerings and targeted discounts are strate-gies that take the responsibility for customer loyalty out of the merchandiser’s hands and push it down to the level of store managers and their understanding of their local customers. Our respondents’ faith in front-line employees points to senior management’s confidence that point-of-sale (POS) patterns and histories are reliably available to in-store personnel. Not surprisingly, retailers’ top three promotional activities revolve around customer affinity, specifically repeat purchase incentives at the point of sale (48%), advance notification of sales and promotions (46%), and special customer promotions (42%). By imitating programs perfected by the airlines, retailers appear to agree that making customers feel special is criti-cal to encouraging them to return. Retailers are also

demonstrating confidence that they know who their best customers are. What is surprising, however, is the lack of coordination across various sales venues such as brick-and-mortar stores, mail order catalogues and online stores. Only 19% of respondents express inter-est in using e-commerce discounts to support store promotions—a technique that can be highly effective, as Jewett points out. “Talbots was able to prove that mailing catalogues to prospects in a retail store’s market area actually drove customers into the store, an example of using analytics strategically, and what an impact it can make.” Doug Cadmus, web architect of Green Mountain Coffee Roasters, a US$137m wholesale, direct-mail and e-commerce operation in Waterbury, Vermont, encourages merchandisers to use the Web as more than just a purchasing channel. “Write for your customers, not just for search engine keywords,” he says. He also recommends breaking out of online for-mat restrictions and making messages punchy, visual and less formulaic. Customer loyalty is based on the extent to which merchants connect with customers’ interests, values and needs, so the onus is on retail-ers to use every means available to communicate with the customer in new and invigorating ways.

Measuring the experience

ommunicating is one thing, but measuring the success of that

communication is another. We asked respondents what measures they use to track the success of promotions. The top two responses were somewhat intuitive indicators—customer satisfaction (55%) and customer retention (52%)—while the

eminently measurable sales per square meter of retail space/week (40%) offered a strong statistical counterpoint. A balanced but less pronounced popularity across all of the more technical options suggests that merchants find it difficult to acquire accurate promotions data in a usable and timely format, so they are looking at everything. This

C




hunger for faster and better in-house performance data, especially when measuring the results of qualitative programmes, is a recurring theme throughout the survey responses. Bakker of Holland uses a balanced approach to measuring the impact of promotional initiatives. “The parts we measure are response rates, average order values, number of items per order, customer complaints and customer service input,” observes van Rooijen. Since “the customer experience” is a qualitative factor and therefore difficult to measure, merchandisers would be well advised to equip front-line employees—who are the ones with the most direct contact with customers—with the technical tools and training to capture as much data as possible that relate to customer satisfaction, retention and loyalty. The moment to collect this data is at the point of sale. Feedback from customer service representatives is equally vital to the merchandiser. Asked what metrics were used to measure the

effectiveness of the merchandising initiatives they had launched in the past 12 months, respondents mostly cited sales figures before and after significant changes (68%) and during those changes (59%). Clearly, the sales spreadsheet remains the old standby of measurement, with profit per stock-keeping unit (SKU) coming in a distant third (38%). With the other five options gaining less than a third of the responses each, it is possible to conclude that merchandisers (and merchants) are still counting too heavily on very basic, non-qualitative statistics.

It is interesting to note that in-store traffic (31%) and customer opinions (31%) are still perceived as important indicators, again emphasising the heavy reliance that executives place on sales staff. This dependence on the lowest-paid member of the retail organisation as a reliable observer of customer behaviour is a conundrum of contemporary retailing. Despite the number of advanced data collection technologies available, the sales associate is still the retail organisation’s number-one ambassador and data collector, so the acquisition, training and retention of appropriate help is a critical element in the strategy of any successful merchant. But such help is hard to come by. According to Penny Reynolds, a senior partner at The Call Center School, an industry consultancy based in Lebanon, Tennessee, fewer than one out of every 15 applicants for a sales position actually has high sales ability. “Good references don’t mean much, just as good customer service does not equate to good sales,” she says. Even more frustrating, she adds, is the fact that “good sales people are not likely looking for work.” Reynolds advises retailers to advertise their needs in non-traditional ways, such as handing out flyers at the local mall and local sporting events. Suitable candidates need to be screened for “listening ability,

The acquisition, training and retention of appropriate help is a critical element in the strategy of any successful merchant.

What metrics does your company use to evaluate the successof promotional activities?(Select all that apply)

Sales per square metre of retail space per week

Customer satisfaction

Share of wallet

Margin per product stock-keeping unit (SKU) line per week

Rate of new customer acquisition

Customer retention

Other, please specify

Don’t know

21%

40%

55%

32%

8%

52%

6%

39%




the customer

multi-tasking skills, no fear of rejection, and the self-confidence to persuade and influence customers,” she says. The next step is to conduct psychometric testing and predictive assessments, the cost of which can run anywhere between $50 and $200 per applicant. Training is likewise critical. As the motivational speaker Zig Ziglar has quipped, “Motivation doesn’t last, neither does bathing.” To be effective, training must be ongoing, part of a cyclical reinforcement program, and related to both individual and corporate performance metrics. Creative incentives also work, as long as they are tangible, based on short-term programmes and simple to calculate. The American Compensation Association reports that the return on investment on performance incentives is 300%. The Timberland Company, a US$1.6bn retailer of outdoor apparel and accessories, is an outstanding example of a global employer determined to create a desirable place to work. The majority of Timberland’s employees work outside the United States, and two-thirds of them do not speak English as their primary language. According to Erin Flanigan, Timberland’s director of talent management, the firm’s selective

hiring policies “drive down turnover and return over US$1m annually to the company’s bottom line.” By making it a priority to hire only the best and brightest from the available labour pool, Timberland has built a reputation as an exceptionally sought-after employer.

Conclusion

nderstanding the customer is clearly not a matter of choice. It is

critical if merchandisers wish to stay in business in today’s marketplace. Increasingly, retail executives worldwide appreciate the importance of good data acquisition, strategic data sharing and aggressive employee evaluation. Just as communication and cohesiveness are critical to success within the organisation, so are they vital to the customer

relationship. The challenge for retailers today is to acquire and share the appropriate data to strengthen the bond between the seller and the customer. While historical customer data is helpful to some extent in understanding customer needs, a true understanding of what drives customer loyalty will occur only when front-line employees are trained, empowered and provided with the technical tools to capture the nuances of customer behaviour.

Of those merchandising initiatives your company launched inthe last 12 months, how did you measure their effectiveness?(Select all that apply)

Sales figures for the duration of the initiative

Sales figures for the “before and after” of significant changes

Cost accumulation and analysis after-the-fact

Solicitation of customer opinions

Profit per SKU

End-of-life inventory by SKU

In-store traffic levels

Cost savings over previous year(s)

Other

Don’t know

33%

59%

68%

31%

31%

17%

29%

1%

3%

38%

U

10 © The Economist Intelligence Unit 200�

Appendix: survey results Intelligent Merchandising: Creating a unique shopping experience

Appendix: Survey results In April 2007, the Economist Intelligence Unit conducted a global online survey of 180 senior executives from the retail industry. Please note that not all answers add up to 100%, because of rounding or because respondents were able to provide multiple answers to some questions.

Please select the one technique your company uses mostto identify and understand its best customers.

Tracking of purchasing records through loyalty cards (recency, frequency, monetary value) 40%

Formal use of surveys/questionnaires at point-of-sale (POS) 26%

Analysis of participation in incentive contests and programmes (eg, promotions)15%

Analysis of dispute resolution (eg, returns, pricing errors) 9%

Other 8%

Don’t know 2%

Which of the following marketing strategies has your companyused in the last 12 months to enhance customer loyalty?(Select all that apply)

National brand advertising

Local store activity

New product introduction

Event promotion (eg, sporting events, musical performances)

Direct marketing (eg, personal mail)

Targeted discounts for specific customers

Value building on repeat purchases (eg, cards, clubs)

Enhanced multi-channel contact (eg, catalogue and/or online)

Statistical trackingof most recent market trends

Other

Don’t know

63%

49%

56%

46%

43%

52%

44%

29%

1%

4%

51%

Which of the following promotional techniques does your company undertake to increase customer loyalty?(Select all that apply)

Incentive programmes for repeat purchases at the POS (eg, cards, clubs)

Off-site incentive programmes for repeat purchasers (eg, rewards, discounts)

Follow-up phone calls to customers after significant purchases

Customised promotions based on past purchases

“Special customer only” events and promotions

Targeted advance notification for sales and promotions

Special e-mail discount codes for best customers

Other

Don’t know

29%

48%

37%

41%

19%

46%

2%

3%

42%

What metrics does your company use to evaluate the successof promotional activities?(Select all that apply)

Sales per square metre of retail space per week

Customer satisfaction

Share of wallet

Margin per product stock-keeping unit (SKU) line per week

Rate of new customer acquisition

Customer retention

Other, please specify

Don’t know

21%

40%

55%

32%

8%

52%

6%

39%

© The Economist Intelligence Unit 200� 11


Of those merchandising initiatives your company launched inthe last 12 months, how did you measure their effectiveness?(Select all that apply)

Sales figures for the duration of the initiative

Sales figures for the “before and after” of significant changes

Cost accumulation and analysis after-the-fact

Solicitation of customer opinions

Profit per SKU

End-of-life inventory by SKU

In-store traffic levels

Cost savings over previous year(s)

Other

Don’t know

33%

59%

68%

31%

31%

17%

29%

1%

3%

38%

What steps has your company taken to enhance/create stronger competitive differentiation in the last 12 months?(Select all that apply)

Tightened our merchandising focus to better appeal to our best customers

Conducted more in-house customer research (ie, data mining) to guide assortment planning

Undertook customer interviews and surveys to improve customer satisfaction

Created “richer” (ie, more stimulating) in-store selling environments

Reacted to focus group results to direct merchandising

Increased our promotion planning efforts to accentuate our uniqueness

Other

Don't know

49%

49%

52%

47%

3%

54%

1%

26%

Which of the following statements accurately describes how yourcompany tracks the performance of your closest competitors?(Select all that apply)

Track the value of their stock vs ours

Track the impact of their promotions on our sales statistics

Track our competitor’s promotional positioning

Track their price points on similar merchandise

Utilise “mystery shoppers” to measure customer service levels

Evaluate their websites and online promotions

Other

Don’t know

59%

29%

32%

68%

5%

46%

3%

34%

Please complete the following sentence in a way that most closely reflects your company’s view of customer satisfaction. “Our customers are most deeply satisfied when…”

...they find what they are looking for with the least distraction possible." 25%

...they are confident that their purchases are supporting organisations aligned with their values." 19%

...they are pleasantly surprised with new and improved services and merchandise each time they visit us." 41%

...they discover other people they respect turn out to be loyal customers of ours as well." 7%

Other 3%

Don’t know 5%

12 © The Economist Intelligence Unit 200�


Which approach best typifies your company’s strategies to predict and react to your customers' changing demands?

Direct point-of-sale questions to best customers 17%

Direct off-site marketing to best customers via questionnaires and surveys 17%

Online surveys of best customers 12%

Close tracking of trends through trade press 18%

Forensic analysis of sales data by SKU 27%

Other 4%

Don’t know 5%

What do you see as the single, most effective strategy your company can adopt to stay up with the changing needs of your customers?

Invest in marketwide sales analysis to identify trends 29%

Discuss our best customers’ concerns in online forums, offering incentives to participate 10%

Conduct more focus groups and opinion research 20%

Train sales associates to solicit and report customer responses to carefully framed questions (ie, use the ears we already have) 40%

Other 1%

As the marketplace continues to fragment, what has your company done in the last 12 months to adjust its merchandising strategy?And what do you expect it will do in the next three years? (Select all that apply)

Focused on being the “sole provider” of more SKUs

Worked to accelerate the rate of new product introduction

Conducted more market research to uncover trends and purchased accordingly

Reduced variety and gone deeper into the “classics” (ie, reliable performers)

Increased our focus on professional and stimulating presentation of merchandise

Invested in ways to increase our customer visit duration

Other

Last 12 months

Next three years

No plans

Don’t know32%

30%27%

4

11%

47%44%

13%7%

38%27%

25%8%

56%48%

12%3%

50%46%

9%6%

38%35%

18%8%

2%3%

8%7%

© The Economist Intelligence Unit 200� 1�


As the marketplace continues to fragment, what has your company done in the last 12 months to adjust its merchandising strategy? And what do you expect it will do in the next three years? (Select all that apply)

Quality level of merchandise

Customer convenience

Interior décor development

Additional in-store services

Selective discounting

Multi-media POS stimulation (eg, music, video, graphics, etc.)

Multi-channel engagement

Other

Next 12 months

Next three years

40%28%

4

7%9%

7%9%

24%18%

5%5%

2%8%

11%20%

3%2%

Please indicate the level of importance your store staff are trained to assign to the following subject areas. (Rate on a scale of 1 to 5 where 1 = Critically important and 5 = Unimportant.)

Routine business practices (eg, cash register/safety/security protocols)

Customer interaction (eg, greetings, engagement, up-selling)

Personal grooming and hygiene

Customer satisfaction (eg, going the extra mile)

Performance metrics (eg, what success looks like)

Sales acceleration strategies

Other

1 Critically important 2 3 4 5 Unimportant Don’t know

39% 26% 21%

4

56% 21% 11%

3%

5% 2%

34% 30% 22% 5%

61% 19% 7% 6%

24%

24%

9%

38%

32%

12%

22%

26%

6%

7%

6%

5%

5% 6%

6%

7%

5%

5%

8%

4%

2%

3%

2%

9%

28%

62%

1� © The Economist Intelligence Unit 200�


In which technologies has your company invested to enhance the customer shopping experience in the last 12 months? Which do you expect it will invest in over the next three years? (Select all that apply)

Queue shortening

Fast-track checkout counters for low number of items

Price-check kiosks

High-speed networkds between store and corporate

Inter-employee audio communication

Improved access to customer information at the POS

POS hardware

Real-time inventory online

Online links to co-branding partners

Other

Last 12 months

Next three years

No plans

Don’t know

30%26%

27%

4

9%

13%23%

41%9%

37%33%

17%8%

22%26%

31%8%

21%24%

35%8%

27%42%

18%9%

38%39%

13%8%

34%37%

18%8%

17%34%

30%10%

2%3%

5%9%

Which of the following primary strategies does your company employ to inspire your customer to purchase more frequently? (Select up to three)

Design of store environment

Rewards programmes and discounts

Off-site customer direct marketing

Assortment planning

Presentation of merchandise (eg, lighting, cleanliness, arrangement)

Ease and speed of transaction

Sales and discount planning

Customer comfort (eg, seating, food, music)

Other

Don’t know

22%

46%

42%

20%

28%

28%

16%

3%

3%

47%

Which competitive advantage does your company seek toutilise with the most consistency? (Select up to three)

Adaptability to trends and tastes

Supply-chain optimisation

Managed off-site contact with customers

Priority status with wholesalers and suppliers

Commitment to measured, continual improvement

Receptivity to staff suggestions for improvement

Data-based merchandise planning

Sensitivity to customer satisfaction

Other

7%

22%

18%

6%

8%

3%

22%

2%

12%

© The Economist Intelligence Unit 200� 1�


Which of the following techniques has your company initiated inthe last 12 months for your customers? And which do you expect to initiate within the next three years? (Select all that apply)

Diversification of services

In-store educational seminars or classes

Improved display media

More real-time customer data available to staff at POS

Focus group discussions

Scheduled appearance of celebrity endorsers

Strategic promotion of corporate beliefs

Increased availability of product histories and usage information

Discuount optimisation

Customer behaviour analysis

Other

Last 12 months

Next three years38%34%

4

48%34%

31%34%

26%26%

36%28%

23%23%

31%33%

34%31%

28%38%

35%46%

0%2%

Which of the following techniques has your company initiated in the last 12 months to create an original and memorable online shopping experience for your customers? And which do you expect in the next three years?

Diversification of services

In-store educational seminars or classes

Improved display media

More real-time customer data available to staff at POS

Focus group discussions

Scheduled appearance of celebrity endorsers

Strategic promotion of corporate beliefs

Increased availability of product histories and usage information

Discuount optimisation

Customer behaviour analysis

Other

No plans to initiate

Don’t know18%

7%

4

11%8%

16%9%

29%9%

27%7%

34%11%

18%10%

17%8%

19%8%

9%8%

4%9%

1� © The Economist Intelligence Unit 200�


Which of these words would you associate most with the ideal retail experience?

Theatre 8%

Science 7%

Consistency 14%

Value 26%

Fulfillment 27%

Convenience 17%

Other 1%

In which region are you personally based?

Asia-Pacific 25%

Latin America 6%

North America 29%

Eastern Europe 3%

Western Europe 29%

Middle East and Africa 7%

What is your organisation’s global annual revenue is US dollars?

Under $500m 40%

$500m to $1bn 16%

$1bn to $5bn 17%

$5bn to $10bn 10%

Over $10bn 17%

Which of the following techniques has your company initiated in the last 12 months to create an original and memorable online shopping experience for your customers? And which do you expect in the next three years?

Periodic online contact with our customers who have opted to be contacted

"Internet only" access with special pricing

“Preferred customer” clubs with special pricing

Video content in promotions

Links to co-branding sites

Cross-channel engagement opportunities (eg, browse catalogue, buy online)

Incentives for multi-channel purchasers

Call centre (CSR) staff to handle questions made by e-commerce customers

Real time inventory information provided to customers

Other

Last 12 months

Next three years

No plans to initiate

Don’t know

49%27%

16%

4

8%

27%25%

30%9%

17%27%

32%11%

29%26%

32%9%

22%28%

32%9%

25%37%

19%11%

17%29%29%

11%

31%29%

26%8%

22%29%

25%11%

0%3%

6%12%

© The Economist Intelligence Unit 200� 17


What are your main functional roles?(Please choose no more than three functions)

Customer service

Finance

General management

Human resources

Information and research

IT

Legal

Marketing and sales

Operations and production

Procurement

Risk

R&D

Supply-chain management

Strategy and business development

Logistics

Merchandising

Other

35%

11%

17%

4%

4%

9%

28%

12%

3%

3%

3%

3%

1%

13%

8%

27%

5%

Which of the following best describes your title?

Board member

CEO/president/managing director

CFO/treasurer/comptroller

CIO/technology director

Chief merchandising officer/head of merchandising

Other C-level executive

SVP/vp/director

Head of business unit

Head of department

Manager

Other

6%

2%

12%

1%

14%

2%

7%

10%

8%

21%

18%

What is your primary retail business?

Apparel, accessories and jewelry

Books and music stores

Convenience stores

Department stores

Discount/off-price stores

Electronics and appliances

Furniture

General merchandise

Grocery/specialty foods

Hobby

Home/domestics

Internet/interactive

Office supplies

Pharmacy

Restaurant

Sporting goods

Travel goods

Other

4%

15%

2%

9%

3%

12%

6%

7%

4%

1%

4%

3%

2%

2%

3%

2%

18%

2%

LONDON26 Red Lion SquareLondon WC1R 4HQUnited KingdomTel: (44.20) 7576 8000Fax: (44.20) 7576 8476E-mail: [email protected]

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