Microsoft and PSFK Identify 4 Pillars for Creating Intelligent Retail Model

Milja Image
ByMilja
December 09,2019

A recent report titled Retail Trends Playbook 2020 identifies four key pillars as being crucial to taking the retail experience to the next level.

With data-driven digital technologies at their disposal, retailers can better understand consumers’ needs, design an intelligent supply chain, empower employees to deliver personalized in-store experiences, and redesigning the business model to highlight the most popular products and services.

Listening to customers

Compiled by Microsoft and US-based media company PSFK, the report asserts that retailers must gather as much data on customer behavior as possible in order to deliver on the promise of personalized shopping.

With that data, merchants can design personalized outreach campaigns. Knowing each shopper’s preferences and previous purchases is key to securing proactive marketing and tailored recommendations. According to the report, 80% of US consumers enjoy such an approach, while 58% plan to sign up for personalized offers.

Employee empowerment

When consumers think “personalized shopping experience,” they expect more than an occasional email. They want the shopping experience to be tailored to their needs in brick-and-mortar shops just as it is online. To accomplish that goal, retail brands have to empower their frontline staff with knowledge about products and customers alike.

Sales assistants can deliver a superior shopping experience only when they have access to lots of customer data. For example, Miami-based footwear brand Melissa Shoes gives shoppers the option to use facial recognition kiosks at their physical stores. When a returning customer stops by a store, employees are notified about their preferences as soon as the customer is recognized. That lets the staff provide an exceptional in-store experience.

Smart supply chain

According to the report, 52% of retailers are struggling to connect the dots between data stored across different parts of their organization. Yet 58% of consumers consider the visibility of inventory status to be important while shopping online.

To overcome the disparity of what’s going on inside organizations and what customers want to see, the authors of the report propose cloud-based communication channels powered by real-time data. Intelligent supply chains can share information among factories, warehouses, stores, and key partners.

Reimagining retail

More than 60% of retailers who have strategically used information gathered through technology say it has given them a competitive advantage.

Retailers can figure out which areas need improvement by getting a 360-degree view on in-store behavior. Data lets them understand how customers interact with products and how loyal they are to the brand. Having this wealth of information is an ideal starting point for creating actionable strategies regarding merchandising, rewards programs, and technology investments.

Investing in a series of digital solutions won’t automatically translate into higher profit margins. The report concludes that the secret to success lies in retailers having a clear image of their own brand, their shoppers, and the experience they want to deliver.

More News

Walmart’s app edged out its Amazon counterpart for the first time to become the most-installed shopping app in the US during the big sales holiday weekend kicked off by Black Friday. According to market data platforms App Annie and Sensor Tower, Walmart got 113,000 new downloads. The figure marks a 23% year-over-year increase. Sensor Tower said 2019 was the first year Amazon’s app did not clinch top spot on the US App Store’s list of most-downloaded shopping apps. The data collected shows Amazon getting 102,000 first-time installs, which marks a 10% decrease from the year before. It was enough to earn Amazon second place. The other companies on the top ten list are, in order: Target, Best Buy, GOAT, Nike, Kohl’s, Wish, Macy’s, and Adidas.However, Amazon still managed to retain the No.1 spot when the apps were ranked globally. The data suggests that Walmart’s numbers were boosted due to recent investments in its brick-and-mortar apps that make checkouts a lot faster and convenient. It’s unlikely that Amazon is too upset about slipping in the app-download rankings. The company rarely releases exact sales figures, but it did tell CNN on Tuesday that shoppers purchased “hundreds of millions” of products between Thanksgiving and Cyber Monday. Representatives said that customers worldwide set a new single-day sales record, purchasing more products in 24 hours than on any single day in the company’s history.
By Dragomir Simovic · December 15,2020
This holiday season, U.S. consumers are likely to spend up to 5% more compared to last year, according to a forecast recently published by Deloitte. Low unemployment rates and a growing economy are the leading causes of the projected growth.When the holiday season comes around, Americans go into a shopping frenzy. In the period between November 2018 and January 2019, U.S. consumers spent $1.09 trillion, which presented a 3.1% increase. This year, Deloitte predicts that seasonal spending will surpass $1.1 trillion. While retailers selling goods from brick-and-mortar stores can look forward to a spike in sales, online merchants can expect an even more significant boost. According to Deloitte’s analysts, e-commerce year-over-year sales growth will be between 14 and 18%. During the same three-month period last year, holiday spending increased by 11.2%. If this year’s predictions prove to be accurate, e-commerce holiday sales will reach $149 billion.“The projected holiday season growth is, in part, due to the current health of the labor market. Near record-low unemployment rates, coupled with continued monthly job creation, may encourage people to spend more during the holiday season,” said Daniel Bachman, Deloitte’s U.S. economic forecaster.While some economists fear that the U.S.-China trade war will slow the economy down, Bachman reminds that the economy is still growing, albeit at a slower rate. “We continue to see consumer confidence elevated, which also helps boost holiday spending,” he adds.“Based on a growth in consumer disposable income and spending indicators, retailers, across channels, should expect a strong holiday season in 2019,” said Rod Sides, vice chairman of Deloitte. Sides notes that retailers have been striving to improve customer experience and increase their omnichannel efforts. “But, convenience is the new retail currency. Retailers who offer seamless experiences, have products available, and can deliver items more quickly than ever are most likely to win this holiday season.”
By Milja · December 15,2020
Today at Paris Retail Week, a group of companies headed by Global POS has announced that starting in early 2020 bitcoin will be accepted as a payment method in 25,000 stores across France.Point-of-sale technology provider Global POS, EasyWallet application, and payments platform Easy2Play are joining forces to launch this cryptocurrency payment system in the first quarter of next year. They say their goal is to enable the 4 million French consumers to spend their bitcoin in retail stores.Around 30 retailers have agreed to accept the world’s largest cryptocurrency in their stores at more than 25,000 sales points. Among them is the American footwear company Foot Locker, along with numerous French brands such as sportswear giant Decathlon, cosmetics retailer Sephora, and furniture and home decor store Maisons Du Monde."This is an important symbolic step in the evolution of payment methods in France. However, more than a symbol, what we bring to 25,000 outlets is the ability to safely enter the world of the 3.0 economy,” Stéphane Djiane, CEO and Founder of Global POS told a French crypto portal, Cryptonews.Payments made in bitcoin will be automatically converted into euros when the sale is made. French cryptocurrency trading platforms Deskoin and Savitar will provide conversion services. Both companies are currently applying for Digital Asset Service Provider accreditations under France’s PACTE Act."With our partners, we want to simplify the adoption of cryptocurrencies as a real means of payment within the framework defined by the law. Though initially, the service we offer will allow only the use of bitcoin, our goal is to open our solution to other cryptocurrencies in the future," Djiane added.
By Ivana V. · August 26,2021

Leave your comment

Your email address will not be published.


There are no comments yet