omni-channel: the future of retail
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OMNI-CHANNEL: THE FUTURE OF RETAIL
ARTK CONSULTING,LLC
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Even if they start from their cellphone but complete it from their laptop or a store visit?
TODAY A CUSTOMER EXPECTS A SEAMLESS EXPERIENCE
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NO MATTER WHAT CHANNEL THEY ACCESS YOU NOW NEED TO KNOW WHO THAT CUSTOMER IS
You know what their likes are
What their shopping habits are
What special offers will entice them to purchase
What coupons would make them consider buying your products
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ARE YOUR CUSTOMERS INTERACTING WITH YOU OVER MULTIPLE CHANNELS?
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If Not you May be Missing the Train!
Home Depot Inc. runs a complex business, attracting more than eight million visitors per week to HomeDepot.com, while operating 2,200 store locations.“Consumers expect Home Depot to solve their problems either in-store or online ... Our goal is that there is zero channel conflict with a consumer.” – Hal Lawton, President, Home Depot Online
“We know that 60% of our U.S. store sales are influenced by our customers’ experience on bestbuy.com”– Brian Dunn, CEO, Best Buy
“The most important thing is to always put the customer first, regardless of the channel.“– Glen Senk, CEO, Urban Outfitters
“At Target, cross-channel shopping in which guests engage with us both in-store and online, is growing faster than either distinct channel.” – Kathryn Tesija, Executive Vice President of Merchandising, Target
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RIS study identified top technologies retailers will be investing in for 2013
TOP TECHNOLOGY TRENDS FOR 2013
Using information gathered from all channels will be instrumental in the future success of the Brand
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WHERE ARE WE TODAY IN DEVELOPING THE RIGHT ANALYTICS TO SUPPORT FUTURE PLANNING?
The same RSR 2013 study identified the ability to use information to plan future growth
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SHOP ON TIME AT MACY’S AND FOREVER BE IN THEIR DATABASE
Macy’s is one of the Best examples of pulling it all together to identify its customer and push information to them
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An Omni-channel go-to-market model is an idea whose time has come, at least according to Macy’s Chairman, CEO, and President Terry Lundgren, who recently stated on the National Retail Federation’s blog:
We talk a lot at Macy’s about Omni-Channel retailing. Our customer is multi-dimensional. She is busy at work and out with friends. She always has her mobile device in her hand. She’s active on Facebook and Twitter and YouTube and a dozen other social media sites… We want that customer to be able to interact with Macy’s no matter where she is or how she shops. It makes no difference to us whether she buys something in our store or online… or whether she is shopping from her desktop computer or her Droid or her iPad. Macy’s best customers are those who shop us in-stores and online. We have a whole series of strategies in place to drive our store customers to the Web, and our online customer to the stores…Today’s customer is not monolithic. And that’s the way we are approaching our customer.”
MACY’S CHAIRMAN, CEO AND PRESIDENT – TERRY LUNGREN
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NOW THAT WE UNDERSTAND THE NEED FOR MORE INFORMATION, WHAT NEEDS TO CHANGE?
Aggregated Data
Analytics and predictive models
Data Science and Scientists
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Support Company Strategic Plan Create New Operating Models to
Improve Revenue Mergers and Acquisitions
AGGREGATED DATA KEY TO SUPPORTING THE BUSINESS, NOT TRANSACTIONAL
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Better Insight to Customers Buying habits
Product Performance Channel Performance
complete view
OMNI-CHANNEL MARKETING – UNDERSTANDING THE CONSUMER THROUGH ONLINE & OFFLINE DATA
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CREATING PREDICTIVE MODELS
Information to drive the future performance of the Company.
The Ability to Change is key to Competitiveness.
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Sales Transactions are not enough to truly understand your Customer
ROLE OF UNSTRUCTURED DATA IN DEVELOPING THE PREDICTIVE MODEL
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A NEW ROLE OF “DATA SCIENTIST”
Not only Managing the Data, but understanding how to use it to provide insight on your Customers
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Time consuming to build.
Information designed to answer only known questions.
Single Silo / Department use.
Expensive to make changes.
TRADITIONAL WAREHOUSE NOT BUILT FOR CHANGE
Bottom Line: Inhibitor.
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TODAYS DATA WAREHOUSE FOUNDATION MUST HAVE….
Integrated information that can be rapidly updated and enhanced to provide the most complete view of your customers and their behaviors.
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Customer Group(s) Region(s) Interaction Channels
INFORMATION MUST BE COMBINED INTO USABLE CONTEXT:
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Change is Inevitable Pricing Pressures Competitors Like Products Similar Events
MUST MIRROR THE DYNAMIC NATURE OF MARKETS AND COMPETITION
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ABILITY TO RAPIDLY RESPOND TO THESE CHANGES IS THE KEY TO COMPETING IN TODAYS MARKETPLACE
Enterprise view is the number one Key to Competing today.
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WHERE DOES THE NEW DATA WAREHOUSE FIT IN THE NEW WORLD OF OMNI-CHANNEL?
Collection of information across all Channels and Customer Touch Points.
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STRETCHING THE LIMITATIONS OF OLDER DATA WAREHOUSE APPLICATIONS
Constantly changing or New Data Sources are being introduced Daily
Unstructured Data from All Channels Needs to be Incorporated into the Customer profile
Machine Driven Data is Becoming more available
Image & Voice are adding to the complexity
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Process-mediated data
Structured operational data
Machine-generated data
Human-sourced: External
REVELANT DATA CAN COME FROM ANYWHERE
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WHAT VALUE DOES THE DATA WAREHOUSE BRINGS TO OMNI-CHANNEL?
Pulling it all together to create a single view of your Customers
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Nightly Batch or weekly Updates are no longer enough to satisfy the requirements in today companies
THE NEW DATA WAREHOUSE CONCEPT IS A GAME CHANGER
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CONTEXTUAL DRIVEN MODEL IS THE NEW NORMAL
Creating a Marketing Campaign combining information from multiple input streams and data types:
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Ability to add new Data Sources New Syndicated Data
Sources Geographic Sales by
Category Household Spending
Habits Weather Analysis
NEW CHARACTERISTICS REQUIRED:
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Ability to integrate information quickly will give planners the time to analyze and act while Data is still actionable.
SPEED MATTERS?
ARTK CONSULTING, LLC
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SO WHAT IS THE MAIN REASON FOR UPDATING YOUR CURRENT DATA WAREHOUSE?
Make rapid product introduction decisions.Shape demand using what-if analysis and scenario planning.Segment demand forecasts based on key product or customer characteristics.Identify Your Customer across all Buying Channels and Provide the Right Product at the Right Time.
Beat Your Competiti
on to Market:
To radically improve speed-to-insight.
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QUESTIONS?
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Omni-Channel Data: Context Required
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Realities For The Data Professional
Data coming from everywhere
Tools to mine and analyze data hitting every laptop and desktop
The I.T. equivalent of a stampede towards a cliff
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Some Simple Truths
If you can’t quickly find its:
business relevance…
business context…
business contribution…
Data from any channel has little (zero) value.
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Aggregating With Business Context Is Key
Aggregated data yields sharper insights for planners and marketers
Needs business context to create business value
Establishing a contextual model built around business use case provides a litmus test for business relevance
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Business Information Model
Provides context as to how data is defined by and used by the business
Enables rapid integration of new data sources as they come available
Enables collaboration between data professional and business professional
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Thirty Minute Classroom
Thursday, May 23rd
11 a.m. Eastern
“Rapidly Creating a Data Foundation For Omni-Channel Retailing”
• 10-minute tutorial
• Sample of a contextual business model
• Demonstration of Business Information Modeling
get.kalido.com/data-foundation-for-oc
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Summers Sessions: Two Tracks For YOU
Series Kickoff
May 14: Data Scientist: Your must-have business investment now.
(30 Minute Learning Sessions)
May 28 Rapid Data Integration tools and methods
June 4 Harmonizing Data for the Warehouse
June 11 Rapid Iteration Methodology Using Information Models
Series Kickoff
June 25: Find your data warehouse’s hidden costs before they find you.
(30 Minute Learning Sessions)
July 2 The real cost per release cycle
July 9 Automate to reduce operating costs
July 16 Reduce tool cost
July 23 Scale drives cost reductions
Agile Information Foundationfor the Data Scientist
TCO: Find data warehouse costs before they find you.
get.kalido/summer-series