Retail Technologies – Highlights from NRF… · 2014. 2. 3. · Omni-channel Sales Inventory...

© 2014 ABI Research

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Retail Technologies –Highlights from NRF

January 29, 2014

Patrick ConnollySenior Analyst – Location Technologies

[email protected]



Hot Topics at NRF



Table of Contents

• Case Study: First Omni-channel Stores

• Growing Importance of Mobile/Smartphones

• Role of Staff

• Dynamic Pricing

• iBeacons/BLE Location

• Next Generation Indoor Location Technologies



Macy’s—The First Omni-channel Store



Macy’s:• 5-year omni-channel strategy• QR codes/NantMobile• Indoor navigation app:10% of customers• RFiD: Inventory management• Staff iPADS• Store-based fulfillment• shopkick/iBeacons

Target:• Showrooming/price matching• Staff iPADs: Price matching• Technology Innovation Center• Social Integration: Popular on Pinterest, Target Awesome Shop• Dynamic pricing by day, time, customer, weather, use-by date, etc.

JCPenney: A lesson to be learned



Mobile, Mobile, Mobile…. Mobile!



Customer Acceptance of Mobile Shopping Increasing

• 80% of smartphone users in the United States have downloaded a shopping app• 84% use smartphone in-store• 50% increase in median basket size

Benefits:• Create a measureable link between online and bricks & mortar channels• Streamline offers/coupons, mobile payments, loyalty programs• Present opportunity to help gain control over in-store Internet usage• Enables new levels of analytics tools• Increases customer engagement and shopper marketing opportunities

RoI Analysis:• Increase customer spend through targeted offers, coupons in aisle• Increase loyalty with integrated loyalty programs, app reminders• Increase basket size through brand upselling, product location• Attract new customers through proximity marketing



Smartphone Applications:• Utility: Shopping list, prescription refill, flight gate alerts • Navigation• Local search, product discovery, product information• Social media integration/interaction, recommendations, check-ins• Coupons/offers, rewards• Mobile POS, ticketing

Staff Tablets:• Inventory check-up• Price comparison• Product information• Mobile POS

Product/Digital Signage Interaction:• Proximity alerts, offers, information• Scans, QR codes, downloads• Active showrooming Customer Experience

Staff

Indoor Location

Mobile App



Location-enabled Mobile Shopping App Forecasts

• Branded Apps: Meijer, Walgreen’s, Macy’s, Target, BestBuy, Walmart, Starbucks, etc.• Over-the-top Apps: shopkick, Shopular, RedLaser• Shopping List: Aisle 411, Point Inside, Grocery iQ• Local Search: eBay, Amazon, Google, Yelp, Foursquare• Daily Deals/Offers/Coupons: Groupon, Coupons.com, LivingSocial, RetailMeNot• SMS Alerts: O2 Priority Moments, AT&T deals, Orange France

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In-store Analytics and Marketing

Customer Insight Examples/Recommendations:• 50% visited one in-store location and left without buying—identify time/day/section and optimize staff to

intercept and convert• 60% stayed within 30% of store-consider new layout/which brands are most popular• 15% hopped lanes—streamline POS by time/day/week• Install and integration fees• 20% purchase 1 to 2 items—increase basket size by catering to these users by day and time



Retail Indoor Location Analytics Deployments

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Shopping Center Malls

Universities/Educational Institutions

Sports Venues/Stadiums

Hotels/Resorts

Airports

Small Retail Stores

Dining/Beverage

Food and Grocery

Large Retail Stores -DIY/Warehouse/ElectronicsClothing



Staff



Omni-channel SalesInventory Look-up

Online Sales

Employee DevicesMultiple Options

Mobile POSReduced Lines

Influence at Point of Decision

Improve Customer ExperienceRapidly Respond to Qs

Increase SalesEmpower Staff

Efficient ManagementImprove Brand Perception

Active ShowroomingPrice Comparison

Price Matching



Technology Requirements:• Staff Application: time management, inventory, alerts• Tablets, smartphones (perhaps BYOD?)• Wi-Fi/mobile coverage• Integration with back-end systems• Mobile POS , integration with loyalty applications• Analytics/performance• Staff optimization tools, e.g., IBM DSO



Dynamic Pricing



New Technologies:• Graphical digital displays• Centralized management platform• Data and pricing analyticsNew Capabilities:• Real-time price matching/display• Dynamic pricing by day, time, customer,

weather, use-by date, etc.• Showrooming is a positive• Built-in location capabilitiesPotential Issues:• Customer perception• Customer behaviors• Algorithms



iBeacons: The Long Tail



BLE/iBeacons:

• Qualcomm Retail• ilnside (previously WirelessWERX)• BestFit• Estimote• Zebra Technology (Zatar IoE platform)• Data Display Inc. (integrated into digital pricing labels)• shopkick (American Apparel rollout)• GPShopper• StickNFind



Bluetooth Indoor Location Installation Forecasts

• Breaking 20,000 stores in 2015• Already moving into nationwide store deployments in the United States• Potential to be much stronger if taking all implementations into consideration

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Next Generation Location Technologies



• Magnetic Field• LED/VLC • Audio/Ultrasound: Verifone• Sensor/Data Fusion: CES, big trend • Next-Gen BLE: Quuppa • Next-Gen Wi-Fi: Cisco, Qualcomm, IBM, etc.• 3D Cameras/Facial Recognition: NEC/Microsoft, IBM,

Panasonic



LED/VLC Indoor Location Installation Forecasts

• Zero costs at handset or infrastructure• Ubiquitous sub-meter accuracy• Tight integration with iBeacons, sensor fusion, etc.

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Thank you!

Patrick ConnollySenior Analyst – Location Technologies

[email protected]

Retail Technologies – Highlights from NRF… · 2014. 2. 3. · Omni-channel Sales Inventory...

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