the new age of engaged retailing

© Sonata Software Ltd, 2015. Confidential.

Consumerization of IT has blurred the lines between the online and physical retailing. The focus now is on howtechnology like Mobility, Analytics and Social are best integrated on top of an Omni Channel Commerce platform byRetailers to engage deeply with their customer needs at every stage of the purchase cycle and across channels todrive business results. This article examines this theme, with added context of our own practical experiences inpartnering Retailers who are translating the Engagement Retailing opportunity to reality.

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What is Engagement Retailing?Today’s connected world is about consumers hailing a cab to their exact location using a GPS enabled mobile app that not onlysaves them the trouble of having to make a call, but also lets them know where exactly that cab which is going to pick themup is in its journey to reach them! It is about going online to quickly check the best food and entertainment options withinfour blocks of where they are, reading reviews to check the best and inviting friends to join them – all in a few quick minutesthat enhance their enjoyment of the day! Engagement Retailing focuses on how the shopping experience needs to evolve inthis context of the customer’s life and maximize value for the customer and retailer.


Personalization, convenience and value continue to be the bigpillars of retail consumer decision making, but the scope oftechnology to take each of these to the next level needs a wellthought out roadmap. Emerging Omni Channel Commerceplatforms offer a sound foundation in terms of enabling datacapture, transaction and order interoperability across multipleinterfaces such a web, mobile, POS and Kiosk, enabling a seamlesscross channel connected environment. However, progressiveRetailers need to go beyond this to integrate other technologies andapplications such as Search, Mobility, Analytics and Social to enablea more complete customer engagement roadmap at each stage ofthe shopping cycle. Some of the key steps in this roadmap are –Seamless Shopping, Fulfilment Flexibility, Single View of theCustomer and the Intelligent Enterprise. CIOs will also need toseparately pay attention to the operations and technology issuesthat go to enabling a fast first time right enablement of theEngagement Retailing agenda!


Seamless ShoppingThe single most direct driver of enhanced shopping convenience, omni-channel platforms enable the storeand customer to interact across devices, at various stages of purchase cycle seamlessly. Today consumerstarts research on mobile, pursues on web, experiences at store and completes the purchase in any one ofthese channels. The expectation is to have seamless product info, availability, service, promotion andloyalty experience at all touch-points. A larger mobility strategy with the right platforms and apps portfoliois often integral to achieving the desired experience.

Fulfilment FlexibilityFlexibility of order fulfilment is now a must have. Consumers expect to order online, pick up from store orwarehouse, buy at store, deliver at home or any combinations of these as suits that particular purchaseoccasion. Research shows that customers value convenience in terms of a preferred time or place ofdelivery more than even speed of delivery. Omni channel commerce platforms enable portability of ordersand single view of inventory. However, often it also requires a clear shift in business mindset to achievetruly integrated operations.



Single View of CustomerAs customer behavior change rapidly to seek and transact across multiple channels, understanding thisbehavior and the underlying core values of the customer is even more important. Migrating existingcustomer data from independent multi-channel systems that often separate online and store led POS &CRM data, into a single customer data master and sustaining this in the new operating environment is acritical task, Extending the usage of this data thru Analytics and Search to aid product recommendations,offers and promotions relevant to the individual customer drives the key value lever of Personalization.

Responsive RetailerA key aspect of Omni-channel strategy is that the volume of data related to customer and operationsincreases significantly. The data also tends to have more real time actionable elements. It is critical forretailers to make them available for efficient processing for insights that drive business decisions. Forexample, even as retailers are going global, there is increasing demand to understand local needs andcreate a customer centric merchandising and promotion strategy even at the level of a single store. Storelevel self service BI to aid employee decision making can further enhance this approach.




The focus on customer facing systems needs to be matched with an effort to streamline internal operations and ITecosystems. Retail continues to be a business driven by the need to maintain high levels of operations efficiency toensure margins are sustained, especially in the face of price competition. Leading omni channel commerce platformsprovide a head-start with built in content, catalog, master data and order management features. Once again, goingbeyond the standard out of the box solutions and ensuring effective management of the IT agenda ensures optimalcosts and ROI.


Operations EcosystemThe content, catalog and campaign management features of Omni channel commerce platforms are oftennew applications that aid operations efficiency to retailers. However, further extensions and integrationsinto the wider operations footprint can add significant value. Including vendors in the commerce platformscope and supply chain innovations thru direct from vendor and ‘drop ship’ logistics partner systems cantake the operations efficiency agenda further.

Technology BackboneOmni channel commerce platforms in themselves offer significant scope for simplifying the applicationlandscape. Investments in the right vendor who can bring expertise to the table are critical to maximizevalue from industry segment specific solutions. Realizing enhancement thru value added new technologyled solutions as outlined also places a higher emphasis on the applications strategy and IT operating modelto ensure fast first time right implementation.




New technologies can help redefinethe shopping experience. Theexperimental mobile basedshopping assistance app outlinedhere is a proof of the possible.

Most leading Retail technologysolutions companies are working ona range of next gen retail applicationplatforms in the areas of Mobility,Analytics, Promotions and SocialSentiment Analysis that retailers canstrap on to leading omni channelsolutions to maximize theirengagement quotient.

EXPERIMENTING WITH THE EXPERIENCE : A Mobile Shopping Application



Sonata Software : Retail Services Overview

Sonata Software is a strategic IT solutions provider with a track record of powering business transformation initiatives of some of themost well-known Retail enterprises across the globe. The company specializes in applying technologies such as Omni-channelcommerce and analytics driven insights to enhance customer engagement for Retailers. Sonata’s Retail services are anchored ondeep technology expertise gained from long standing partnerships on class leading solutions such as Microsoft Dynamics AX Retail,hybris, Moovweb, Microsoft Business Intelligence, Hadoop and Azure to deliver superior solutions such Omni-channel revenuegeneration and fulfilment, e-commerce & mobile business enablement, dynamic promotions, personalization, loyalty and ITinfrastructure & support services. These capabilities have seen Sonata emerge as a service provider of choice for Retailers acrossMass Merchandise, Specialty, Apparel, Quick Service Restaurant and Transit Retail segments, including some of the largest globalFortune 100 and Indian brands. A unique Customer Specific Centre of Excellence model of delivering service to clients has seenSonata significantly enhance the extent of strategic focus, collaboration, innovation and knowledge management impacting eachrelationship. A wide range of Retail specific solution assets, proven frameworks, methodologies and a large dedicated Retail verticalteam, not only ensure quality and reliability but also reduce TCO for its clients. To Retail leadership seeking to drive strategic businessadvantage with IT, Sonata’s focus on the vertical, deep technology capability and commitment to customers make it a partner ofchoice for translating their vision to reality.

the new age of engaged retailing

Retail

customer needs

engagement retailing

shopping experience

shopping cycle

omnichannel platforms

seamless cross channel

physical retailing

right platforms