Making the Connection. Using Technology to Connect with the Shopper and Work Smarter

Making the

Connection

Using Technology to

Connect with the

Shopper and Work

Background



Deena M. Amato-McCoy

Analyst, Aberdeen Group’s Retail Practice



18+ years retail industry experience with

leading business publications



Strong retailer, technology provider

relationships

Overview



Top Business Pressures

Process Automation



Three-Step Technology Strategy

Trends



Educate Yourself

Key Takeaways

The Role of Technology

 What role is technology playing today in your

company?

 If it isn’t yet, it needs to be.  Aberdeen Research Reports:

 The 2012 Self-Service Handbook: The

Empowered Consumer, December 2011 1

 The Customer-Connected Store: Store

Operations Automation Best, March 20112

 Social Media ROI: Customer Engagement,

Brand Interactivity and Revenue, August 20103

Top Pressures

Top Business Pressures for small- and mid-sized retail community (annual revenues of $50 million or less:

 Lingering Recession

 Evolving retailing channels

 Personal, mobile communication devices

 More touch points changing the way consumers interact

with retailers

Automate the Sales, Marketing Process

 20% of retailers focused on building efficiencies across

specific in-store customer, employee functions 2

 POS

 Inventory control  Transaction control

 Customer engagement

 61% of retailers reported that personalization is paramount

Three Step Technology Strategy

 Step 1: Establish Dealer Management System (DMS) to integrate all

dealership functions:

 Unit (vehicle) sales  Finance and insurance  Warranties

 Service an retail parts sales

 Currently, 16% of SMB companies have visibility into available inventory,

which streamlines order processing. Another 47% plan to add functionality within 12 months1

 Heart of this strategy = centralized data warehouse

 Accurate, single view of information  Customer

 Inventory data

New Meaning for Point-of-Sale (POS)

 Step 2: Revamp the concept of POS. With access to a

singular database, POS takes on a new meaning.

 Configurations still vary: some are basic cash registers;

others are PC-based units.

 The Killer App: Mobile solutions that link to DMS and

data warehouses, enabling dealers to interact with consumers wherever they are in the showroom.

Mobile Point-of-Sale



Step 3: Explore mobility.



Mobile POS is top priority for retailers reshaping

the customer experience within next 24 months.



30% of companies currently use mobile

application



44% plan to deploy mobile POS in next 24

Consumer Adoption of Mobile POS



Mobile POS demand increasing due to the

growing consumer adoption of personal

communication devices, including smart phones

and tablets



Retail examples:



Apple



Urban Outfitters

Nordstrom

Mobile in the SMB Segment

With mobile solutions, retailers are positioned to cut costs by leveraging consumers’ personal technologies on premise in the showroom:

 10% have a mobile-ready store

 38% plan to implement a mobile strategy within 12 months.

 Smart phones  iTouch

 Tablet computers

 32% plan to add mobile or tablet solutions for employee-based

applications within 12 months

Mobile in the SMB Segment



10% of retailers currently offer a retail application

on consumer-owned mobile devices for in-store

usage



58% plan to offer service within 24 months



key functions:



Mobile-optimized web sites

Personal checkout

Trends

Watch for:

Trend #1: Personal Shopper Interaction

 Personal shopper interaction – through consumer mobile

devices

 Currently, only 25% of retailers are able to personalize

in-store offers, merchandise, offers, pricing and selling programs, but at least 40% plan on developing their localization efforts over the next two years 2

 Currently only 5% of SMB retailers are providing

customized store promotions via consumer smart

phones, but 19% plan to offer this service in 12 months, and another 48% plan to offer beyond 12 months.3

Trends

Watch for:



Personalization

Social Media

Trend #2: Social Media



Set up shop on Twitter or Facebook to solicit

feedback, deliver promotions, and discuss

merchandise.



85% of retailers have a social media initiative in

place to help manage brand reputation and

encourage revenue-building consumer

Trends

Watch for:



Personalization

Social Media

Trend #3: Analytics

 Move from spreadsheets to automated

analytics/business intelligence

 72% of SMBs use spreadsheets as primary analytical tool4

 Modern BI presents faster, more accurate data

 Learn more about:

 Consumers

 Sales history, trends

 Marketing opportunities, i.e., promotions, social media

Educate Yourself

 Associations:

 Recreation Vehicle Dealer Association (www.rvda.org)

 The Recreational Vehicle Industry Association (www.rvia.org)  National Retail Federation (www.nrf.com)

 Resources:

 Recreation Vehicle Industry Association -- RV Business online

publication (www.rvbusiness.com)

 RV News Magazine -- The Voice of the RV Industry

(www.rv-news.com)

Key Takeaways:

 Engage technology solutions to:

 Get all data and repositories clean and accurate  Link DMS to the data warehouse

 Trade in manual and legacy POS systems for a flexible

Mobile POS configuration

 Leverage the power of consumer devices  Leverage personalization

 Create and apply social media strategies  Analyze and apply data analytics

Contact Details

Deena M. Amato-McCoy

Research Analyst, Retail Practice

Aberdeen Group

516 208 9493