The convergence of channels and higher customer expectations mean the store is now an even more important ‘must win’ for Consumer Goods companies.
This requires a new focus on Retail Execution efficiencies and best practices. Are you currently engaging successfully on the frontline?
Today, we’ll talk about Oracle envisions and enables modern Retail Execution success.
More Stats:
Trade Marketing
21% of CPG executives admit that they trust their intuition more than the available data to make trade promotion-related decisions.
Accenture, Perfect Promotion, July 2013
27% of CPG executives believe their return on investment has increased by more than a quarter since the downturn, while 16% believe that their ROI has declined.
Accenture, Perfect Promotion, July 2013
58% of supermarkets and grocery retailers are bringing in outside consulting help for promotions optimization.
Aberdeen Group, The Changing Dynamics of Retail Promotions, February 2007
65% of the executives identify the establishment of more cost effective processes as a key method of improving their trade promotions performance.
Accenture, Perfect Promotion, July 2013
66% of CPG companies switched more than one quarter of their trade promotion spend to digital channels.
Accenture, Perfect Promotion, July 2013
71% of CPG companies have increased their trade promotion spending in response to the economic downturn in 2008, 23% more than once.
Accenture, Perfect Promotion, July 2013
By 2012, CPG companies using TPO increased to 87%.
Retail Leader, Special Report: Trade Promotion Optimization, April 2013
CPG brands spend 67% of their all- inclusive marketing dollars on retailer trade promotion and 11% on coupon distribution.
PointRoll, Digital Industry Outlook: CPG, July 2013
Manufacturers rated collaboration as very important 56% of the time and important 39% of the time.
IBM and Booz & Company, Promotion Collaboration
Since 1980, the average percent of revenue devoted to trade spending has gone from 5% to 18%.
Retail Leader, Special Report: Trade Promotion Optimization, April 2013
Analytics
37% of consumers are willing to share data to prompt them to purchase throughout the year.
MyBuys, Engage Consumers & Increase Buyer Readiness Through Customer-Centric Marketing, September 2013
17% of surveyed retailers perform no analytics in the omnichannel function, and a further 31% only conduct basic reporting.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
2 in 5 retailers state they lag behind their competitors in terms of their analytics maturity and a further 2 in 5 suggest they are at par.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
25% of retailers have advanced analytics capabilities, enabling delivery of personalized communications and offers.
RIS News, Creating Emotional Connections, May 2013
37% of consumers are willing to share data to prompt them to purchase throughout the year.
MyBuys, Engage Consumers & Increase Buyer Readiness Through Customer-Centric Marketing, September 2013
54% of respondents view predictive analytics as important for companies seeking improvements in performance. 56% rated predictive analytics as being desirable, or the most desirable way, for their company to improve its trade promotion efforts. 24% believe predictive analytics has limited importance.
Accenture, Perfect Promotion, July 2013
58% of retailers have no plans to integrate public or open data, such as Census data. 33% of retailers also report no plans to integrate syndicated data from sources such as Nielsen and IRI.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
70% of retailers indicate plans to implement a mobile business intelligence solution.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
71% of retailers currently have individual departments responsible for their own analytics resources, while 53% rely on the IT function primarily for analytics support.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
84% of retailers employ data analysts.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
Compared to functions such as Merchandising, Finance and Marketing, retailers’ Stores function displays lower analytics maturity. 11% of survey respondents perform no analytics, and a further 64% classify their maturity as either basic reporting or basic analytics.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Stores, July 2013
Consumer companies’ data sources typically contain large and growing volumes of unstructured data, often in the form of chat, voice, and video files and other nonstandard forms. As much as 85% of information available to a typical organization is unstructured.
Hewlett-Packard, Gain consumer insights from an information and analytics hub, April 2013
Only 18% of retailers have a shared services model in place for analytics, but 60% would like to move towards such a model.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
Only 3% of retailers currently use a mobile business intelligence solution, but 70% plan to implement one in the next 2 years.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Stores, July 2013
Retailers state their biggest customer analytics challenge is to be able to deliver insights to the right person at the right time.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Stores, July 2013
The availability of a visualization tool as part of the solution was rated as very important by 78% surveyed retailers.
Edgell Knowledge Network, State of the Industry Research Series: The Future of Retail Analytics, May 2013
And part of the reason for the confusion is no doubt that the consumer doesn’t always come directly to the manufacturer for her brand needs. Her journey crisscrosses Consumer Goods and Retail websites, as well as Facebook, blogs, recipe websites, and of course in-store. Which makes it vital that we coordinate that journey to create seamless brand messages across all of these possible interaction points, that we ensure that the messaging on the brand website is consistent with the ads she’s seeing on Facebook, is consistent with the messaging on the various retail websites, and is consistent right through to the point of sale displays, pricing, and in-store advertising she sees as she walks the aisle.
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An organisation’s digital strategy is being driven by consumer (and employee) expectations. They demand information right now on any device, they want to interact through multiple channels, they want products tailored to their specific needs and lifestyle, otherwise they will switch to another brand who more closely matches or serves their needs.
Sometimes some people forget that Oracle was the Pioneer in Customer Relationship Management Technology. Let’s touch a little on the evolution of the CRM space and where we are going with our vision.
Siebel:
In the 1990’s Siebel released the greatest on-premise CRM application. Siebel quickly gained the largest market share supporting the largest customer's complex requirements. Siebel created this market. We built industry solutions and significant IP customizing Siebel for specific customer relationship needs.
Salesforce:
Salesforce started in 99 with Larry Ellison protégé Marc Benioff coming from Oracle to create a cloud based CRM platform built on a multi-tenant infrastructure. Larry was an early investor and Oracle Database technology was used as the basis of their cloud platform. Their vision to make CRM simple in the cloud like Amazon was simple. They were very successful in the SMB space and started being used in as a departmental solution of large enterprises a time later.
Oracle Cloud:
Oracle entered the cloud market with Oracle On Demand for multi-tenant Cloud solutions supporting the SMB market and departments of large organizations. We fought head to head with Salesforce in this space. Oracle decided to take it one step further however.
In 2010 the Oracle Fusion Platform was Released - It is already running the largest HCM and ERP customers in the Cloud with 150,000 plus users in single deployments.
Now Today we have released Oracle Sales Cloud on that Fusion Applications platform. We took that great amount of IP from Siebel. Used it as the basis for Oracle Sales Cloud on Fusion platform. This isn’t Siebel in the cloud because it supports the new cloud paradigm. Running on Fusion Architecture gives organizations the Enterprise Grade Platform they need for Large Enterprise Customer Data (terabytes of data), Advanced Analytics supporting our largest on premise customers in the cloud. The dedicated virtual tenant cloud supports scaling to our largest enterprise customer’s needs without having to impose preset cloud limitations like other providers.
Meanwhile the salesforce architecture is the same. The competition started in the SMB space with the multi-tenant architecture 15 years ago and are still using that older architecture today to support enterprise customers with Departmental solutions. In most cases the enterprise customers of the competition are department deployments.
We have talked with the Competition's Customers like Dell who 10s of thousands of users but have dozens of departmental deployments and it doesn’t scale the same for a large enterprise deployments. The data is fragmented in multiple systems so that there is no 360 view of the customer and enterprise reporting isn’t possible inside the CRM.
So where does that leave us today? Well we are changing the game. Whereas SFA 1.0 with Salesforce was all about activity management or opportunity management and was successful in that role it didn’t give the Sales Reps what they wanted to really do their jobs. It felt like overhead to them. Put the deals and activities in at the end of the month to satisfy your management. We are changing the game by Releasing the Modern Selling Platform and surrounding our Sales Cloud with best of breed Customer Experience applications to go beyond SFA 1.0 to incorporate lead prospecting to opportunity management to ordering to forecasting to closing an order and getting incentive compensation visibility. From Lead to Incentive comp statement. A real valuable integrated easy to use CRM experience that provides Sales reps with true value.
The Oracle CX Cloud Suite, covers the entire spectrum of capabilities that an organization needs to deliver a modern unified customer experiences.
Our CX cloud apps utilize a foundation layer of components and services that serve to provide consistency across the applications – from Data Management where all data is collected for us, Analytics and Data Visualization which lets you understand what you’ve collected, Application Development tools that permit building custom applications to deliver that data in a way that is most consumable by your users, content and collaboration to enable sharing of that information, process and integration for automating key business processes and extending the Cloud Suite to be what you need, and security to protect it all.
Built on top of our Unified CX Platform are our market-leading CX applications that span Marketing, Sales, CPQ, Commerce, Service and Social and are supplemented by the Oracle Cloud Marketplace that offers hundreds of value-add applications from our partners.
In turn, Oracle’s CX industry solutions sit on top of our CX applications to deliver cross-functional solutions tailored to specific industry requirements. Our industry solutions address unique data model, workflow, user interface and integration requirements by industry to meet their particular business and customer needs.
No vendor can match the breadth and depth of Oracle’s CX product portfolio. Thousands of vendors market under the banner of CX but their applications are typically aimed solely at one or two of the functional areas. Even our closest competitors do not support key areas such as commerce, configure, price and quote (CPQ) and field service. Nor do they offer a data management platform or customer data management solution. And they don’t have industry solutions tailored meet your particular requirements
Oracle has invested heavily in product development and acquisitions in order to offer its customers a full and complete CX solution. Together, they offer a broad and deep portfolio that can deliver against any customer experience challenge or initiative within your organization.
Industry Sample list (left to right)
Hi Tech
Telecom
FinServ
CPG
HED
Hospitality
Retail
Utility
CX Unified Platform List (left to right)
- Data Management
- Analytics & Data Visualization
- Application Development
- Content & Collaboration
- Process & Integration
Identity & Security
Note
Rev 5/17/16
Hi rez industry icons (including FS)
Do we want to use the generic one or not at all?
Moreover, Oracle CX for Consumer Goods provides the tailored end-to-end customer experience solutions to:
consistently engage customers and consumers across channels
collaboratively plan customer contracts and promotions with insight to anticipated performance impacts
and target and execute actionable in-store goals where they will have the greatest business impact
And of course, to do so in an open and standards based fashion, in the cloud, that will enable the additions and add-ons you need to tailor our solution for your business model, supported throughout by the analytics that deliver the right insight at the right moment to help each user make the best decision for their customer and organization.
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