WHITE PAPER Analytics for digital retail

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1 WHITE PAPER Analytics for digital retail

2 Introduction The advent of organized retail propelled businesses to reach out to a wider spectrum of consumers in an effort to increase market share. This gave rise to various marketing channels and mediums for retailers to communicate with their consumers. Consumers use multiple channels such as stores, web, social and wireless devices (mobiles, tablets), to perform multiple tasks. So, the retailer has to take the initiative to reach out to these consumer segments and leverage their presence. Contents Digital maturity curve digital strategy Components of digital strategy: social, mobile and Web...04 Mobile strategy Web strategy Conclusion White paper 02

3 Digital maturity curve Digital strategies can be categorized into four phases: Toddler: In this phase retailers have basic digital capabilities through a web site, intranet and partner portals. BI, reporting and KPIs are in-store features only. Teenager: Here, retailers have basic digital capabilities through a web site, intranet and partner portals. They start focusing on brand awareness through social media and mobile, with isolated strategies across multiple channels. BI, reporting and KPIs are in-store features only. digital strategy A single version of truth (common master data) is the most important element to enable cross channel integration and provide the same data across channels. Ideally, the retailer should have a single data source for product hierarchy, inventory and profiles. Merchandise, inventory and data across stores and online channels should be integrated to provide a unified view across channels and enable consistent interaction. Mobile channels E-commerce Customer engagements, experience, needs, expectations Social channels Traditional channels Adult: Retailers have expanded capabilities on social and mobile channels, including process integration. view across channels and enable consistent interaction. They have defined digital strategy and partial integration of multiple channels. They start with analytics pilots, with a measurement and governance framework. Mature: Retailers have all their multiple channels integrated. They personalize their products with a single view of the. They co-create products and services with stakeholders with full social business capabilities. They seamlessly integrate experience at all touch points. They have a fully functioning awareness-analysis -insight-action framework based on analytics with an integrated measurement and governance framework. Analytics further leverages integrated data for effective targeting with individualized and personalized offers. Personalization depends on different categories of data such as: Need based events such as life / business / market events Behavioural data such as preferences in product, channel, cost Customer demographics and psychographics Some more integrated digital scenarios are content management, interactive marketing, profile management, self-service and real time offers. White paper 03

4 An integrated digital roadmap for retailers insight experience business functions (marketing, sales) Deliver target experience Components of digital strategy: social, mobile and Web Social strategy For retailers, listening and responding appropriately to discussions taking place around a product or service is the most direct and economical system to sell their brand. Monitoring social media feeds allow retailers to gather that data at a low cost and make appropriate changes to ensure satisfaction. The current social strategy used by the retailers is as follows: Create public forum & blogs Listen actively to your Provide feedback (positive & negative) Analyze sentiment & identify influencers Influence the s Social analytics integrates, analyses and enables organizations to act on intelligence gathered from online conversations occurring across professional and consumer-generated media sites. It enables organizations to attribute online conversations to specific parts of their business. Organizations can extract important insights, sentiments, hidden patterns, trends and unknown correlations from -centric conversations and proactively act upon them to drive business outcome. A step wise social analytics framework: VOC analytics: Retailers monitor and analyse conversation across call centers, surveys, chat and social media. They derive insights, patterns and correlations with metrics. response management system: Retailers have a dashboard for response across Facebook, Twitter, YouTube, and other such media. Social CRM measures include: Social conversation: social profile analysis, share of voice, audience engagement, conversation reach, sentiment analysis Influencer analytics: active advocates, advocate influence, advocate impact Social promotion: promotion spread, promotion engagement Social CRM response management system VOC analytics White paper 04

5 New user registrations Calls Chats response management Viral promotions Social media - Liking / interest - User preferences - Social media ID - Influence capability Voc dashboards Social profile sync Listening VOC Service request / leads / information Social CRM Run campaigns Offer customized offers / deals based on purchase pattern & interest Campaign Management ( & behavioral targeting) Personalized Future roadmap for retailers in social media Listen to your Build your brand Educate your Integrate social media with business Mobile strategy Mobile phones are the new channel for personalized services to a. Personalized promotions are based on his / her past purchases, updated with other information including complaints, service request status, follow-up feedback, information on troubleshooting a product, and so on. This is also a good medium to provide location based services which complement various channels like kiosks and stores. The growth of mobile banking means it can also act as a payment device for transactions. Though mobiles are currently used just to push information, it can also be a source of information from a consumer during the lifecycle of a product. The popularity of smart phones and tablets, combined with the evolution of GPS technology has triggered a new digital marketing trend: SoLoMo (Social-Local- Mobile). SoLoMo enables marketers to offer deals, events and shopping opportunities based on their consumer s location, over mobile applications. White paper 05

6 Customer check-out Retail database Analytics Customer near store Triggers eg. Targeted promotions algorithm Customer shopping in the store Coupons Application system Messages Applications Customer Mobile contactless payment is another new trend, which enables POS with the contactless reader infrastructure. It also supports data capture at the POS, using contactless readers. Some mobile KPI scenarios: Customer facing mobile services: number of visitors and recurrent users Staff facing mobile services: increased productivity, transactions Browser based apps: Number of downloads, active users, number of sales ready leads produced through this app Web strategy The internet has opened new doors for reaching out to consumers beyond the reach of brick and mortar stores. It enables retailers to promote store fronts, the products / services it offers, spread awareness, and attract and engage a consumer. It also opens up a new channel for sales, the online web store, electronic commerce (e-commerce). Various products enable retailers sell their products online. These products offer capabilities such as catalogue management, personalization, product comparison, search, advanced search, gift registry / wish list, order management. A roadmap for retailers in mobility: Strategize the mobility solution Develop mobile apps Operationalize facing scenarios like promotion Measure the KPIs White paper 06

7 Some e-commerce analytics trends adopted by organizations: Web CRM analytics: helps manage relationships in an organized and controlled way Web survey analytics: analyses data collected from web surveys to give actionable insights Web revenue enhancement analytics: leverages past traffic volume data to estimate revenue with most accuracy Web content analytics: analyses web content to discern much deeper patterns of meaning and more intuitive results for answer-seekers. This helps us understand content and product affinities Search Engine Optimization (SEO): acquiring visibility for s through search engines either by using SEO efforts or through paid search advertising Conclusion With the proliferation of new digital venues across social media and mobility, e-commerce retailers are actively experimenting with new concepts and realizing growth through digital channels. Forward-thinking retailers are increasingly making strategic IT investments in areas of social engagement, insightful and actionable analytics, and the consumerization or emergence of centric features in B2B e-commerce. The roadmap e-commerce retailers Target & Acquire the right s Segment s based on online interactions Prioritize critical segments Retain valuable s Increase sales & value About the author Andrew Stephen is a Consultant in Analytics CoE at Mindtree. He has over 5 years of experience in Analytics, Business Intelligence, Consulting, Solutioning. He has worked across the Retail/CPG value chain for leading clients across the globe. About Mindtree Mindtree is a global information technology solutions company with revenues of over USD 435 million. Our 13,000 experts engineer meaningful technology solutions to help businesses and societies flourish. Mindtree s consulting-driven approach makes us a strategic partner to over 40 Fortune 500 enterprises. Mindtree Ltd 2014

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