What Data Discovery can do for a true OmniChannel experience. A Credon White Paper

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1 What Data Discovery can do for a true OmniChannel experience A Credon White Paper

2 1 The need for Omnichannel According to Comeos (the Belgian confederation representing retail and commerce), online shopping in Belgium in 2014 represented a total revenue of 5,62 billion euro. 5,62 billion euro increasing by 15% That means that 6,4% of all shopping happens online and is increasing by 15% vs the previous year. For the Netherlands, a recent study by Gfk shows similar numbers: 5% of all shopping is purchased online and is growing to 8,4%. online shopping At the same time, the multiplication of retail channels and the increasing use of social media are empowering customers. With the success of smart phones and a wealth of information available online, consumers are better able to compare products, services and prices and choose their personal path to purchase. Customers today also expect retailers to understand them whether in-store or online, listen to them and serve them with the right product and the right price, any place, anywhere, and preferably ASAP. Seamless experiences and leveraging on what is learned as shoppers go on their journey are critical for a retailer to make the sale and build the relationship. Research from Merkle, a US-based customer-relationship marketing agency, shows that 42% of supermarket shoppers use their phones at least once during a shopping trip and a 75% increase in mobile paid search was measured in In the US, 46% of supermarket shoppers even want personalised offers sent to their smartphones while shopping in store. And while less than one-fifth of the consumers mention traditional pricebased loyalty programs as a differentiator in where they choose to shop, retailers who take an omnichannel, personalised approach to loyalty multiply their revenues by four. shopping 6,4%

3 2 In order for retailers to respond to these changes in the industry, they need to change rapidly and find new ways to collect, manage and analyse a tremendous amount and variety of data. Retailers should succeed in analysing this data to generate valuable insights for personalised marketing and improving the effectiveness of marketing campaigns, optimising assortment, pricing decisions, and removing inefficiencies in distribution and operations both in-store and online. CHANGES In the past, retailers gathered data from their point-of-sale (POS) systems once a day across all stores, and stored that data in a single data warehouse. This enabled them to run static reports per department or function: store operations, inventory management, customer marketing everything was static and separate. INTEGRATED SOLUTION 360-degree view of the company's core business 360-degree view of the company's core business analyses data across all areas of the business The challenge today is breaking down this silo-based analytics strategy and providing a 360-degree view of the company s core business. The challenge is to create an integrated, enterprise-wide solution, one that is relevant and accurate for individual stakeholders, but also analyses data across all areas of the business.

4 3 It s a new world It s a new world for retailers, where the lines between physical, online and mobile channels are blurred. This is a major challenge as their organisational structures and inventory management systems have not yet adapted to the omnichannel experience. Most stores don t even know what customers are looking for, as they struggle to link digital behaviours to in-store purchasing. When a consumer arrives in the shop, they are unaware if this is a customer looking for information or to buy. Stores also struggle to link digital behaviour across devices to actionable intelligence. A shopping journey that started with a mobile search and ended with buying via the desktop computer might be mistaken for a search that didn t result into a sale and an actual sale that occurred without any marketing influence. The future is definitely for those retailers that are able to analyse the multi-device online/offline behaviours of shoppers and integrate across channels and the store.

5 4 Data discovery One of the most important evolutions in how to get grip of information in an omnichannel world is the implementation of a data discovery layer. Where Business Intelligence was used to build static reports based on data sources such as the POS system, inventory software and data from customer loyalty cards, data discovery solutions are increasingly being used to analyse and compare data throughout the complete retail chain. With data discovery, retailers are able to look for new insights to increase the shopping experience by connecting data across disparate systems and evaluating how customer loyalty programs impact sales in store, identify shopping habits of key customers by offering targeted campaigns and by ensuring seamless customer service even when items are bought online and returned in store. Data Discovery technology also focuses on making employees smarter and better informed. Putting information in the hands of right colleague is key. This is definitely a vision that Qlik is executing; our goal is to make a Business Analyst out of everyone. Whether this is colleagues serving the consumer in an store environment, managing inventory, analysing consumers seamless shopping experience across multiple channels, creating offers and interacting with consumers through digital and social channels, or determining timing for new product launches and allocating labour to serve the consumer, it is essential retailers develop a culture of actionable decision making. Data coming together LOGISTICS services more data

6 5 A few examples of achievements made by omnichannel retailers using data discovery: Less stock on the floor By analysing customer data connected to a wider range of data sources than before, like call center records, online transactions, social media, loyalty programs, stores can focus on limiting stock and assortments on the floor while focusing on same-day or next-day deliveries. By implementing QlikView and combining data sources from the POS and inventory management system, AVA, a leading retailer in Belgium in stationery, is able to analyse the sales per products and site, daily and adjust the deliveries to the shop more accurately to limit the stocks on the floor. Improve in-store experience By combining the online and in-shop data on shoppers, stores are able to deliver a better and personalised experience to their customers. For the shopper, the sales cycle starts online, when searching and comparing products and prices, and continues when entering the store. Better pricing Better knowledge of competitive pricing, demand trends and customer buying preferences (online and in-store) can initiate sales and promotions that help avoid losing business. The use of data discovery can help retailers build smarter supply chains and predict optimal product pricing based on price and demand elasticity for each channel based on a customer s purchase behaviour, location and buying preferences. By implementing QlikView and combining data sources from the POS and the MyAVEVE loyalty program, Aveve, a leading retailer in Belgium for gardening, animal products and baking, is able to adjust their promotions and publicity to the right target audience improving the return and efficiency of the marketing efforts dramatically.

7 6 The road to success It s easy to see the value of an omnichannel business when you have the possibility to unlock insights hidden away in disparate data sources throughout the organisation. When data discovery solutions are used to facilitate an omnichannel view of the business, it creates an environment where any information can be rapidly accessed, analysed, and viewed exactly as needed, to immediately capitalise on the opportunity. omnichannel business data discovery solutions analysing customer data connected 2015 Credon BVBA. All rights reserved. All other company names, products and services used herein are trademarks or registered trademarks of their respective owners. The information published herein is subject to change without notice. This publication is for informational purposes only, without representation or warranty of any kind, and Credon shall not be liable for errors or omissions with respect to this publication. The only warranties for Qlik products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting any additional warranty.

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