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Omni-Channel: The Future of Retail

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Omni-Channel: The Future of Retail

  2. 2. Even if they start from their cellphone but complete it from their laptop or a store visit?TODAY A CUSTOMER EXPECTS A SEAMLESS EXPERIENCE5/21/2013ARTK CONSULTING, LLC 2
  3. 3. NO MATTER WHAT CHANNEL THEY ACCESS YOU NOW NEED TO KNOWWHO THAT CUSTOMER IS5/21/2013ARTK CONSULTING, LLC 3 You know what their likes are What their shopping habits are What special offers will enticethem to purchase What coupons would makethem consider buying yourproducts
  4. 4. ARE YOUR CUSTOMERS INTERACTING WITH YOU OVER MULTIPLE CHANNELS?5/21/2013ARTK CONSULTING, LLC 4If Not you May be Missing the Train!Home Depot Inc. runs a complex business, attracting more than eight millionvisitors per week to HomeDepot.com, while operating 2,200 store locations.“Consumers expect Home Depot to solve their problems either in-store oronline ... Our goal is that there is zero channel conflict with a consumer.”– Hal Lawton, President, Home Depot Online“We know that 60% of our U.S. store sales are influenced by our customers’experience on bestbuy.com”– Brian Dunn, CEO, Best Buy“The most important thing is to always put the customer first, regardless ofthe channel.“– Glen Senk, CEO, Urban Outfitters“At Target, cross-channel shopping in which guests engage with us both in-store and online, is growing faster than either distinct channel.”– Kathryn Tesija, Executive Vice President of Merchandising, Target
  5. 5. RIS study identified toptechnologies retailers willbe investing in for 20135/21/2013ARTK CONSULTING, LLC 5TOP TECHNOLOGY TRENDS FOR 2013Using informationgathered from allchannels will beinstrumental in thefuture success of theBrand
  6. 6. 5/21/2013ARTK CONSULTING, LLC 6WHERE ARE WE TODAY IN DEVELOPING THE RIGHT ANALYTICS TOSUPPORT FUTURE PLANNING?The same RSR 2013 studyidentified the ability to useinformation to plan futuregrowth
  7. 7. SHOP ON TIME AT MACY’S AND FOREVER BE IN THEIR DATABASE5/21/2013ARTK CONSULTING, LLC 7Macy’s is one of the Best examplesof pulling it all together to identifyits customer and push informationto them
  8. 8. An Omni-channel go-to-market model is an idea whose time has come, atleast according to Macy’s Chairman, CEO, and President Terry Lundgren,who recently stated on the National Retail Federation’s blog:We talk a lot at Macy’s about Omni-Channel retailing. Our customer ismulti-dimensional. She is busy at work and out with friends. She always hasher mobile device in her hand. She’s active on Facebook and Twitter andYouTube and a dozen other social media sites… We want that customer tobe able to interact with Macy’s no matter where she is or how she shops. Itmakes no difference to us whether she buys something in our store oronline… or whether she is shopping from her desktop computer or herDroid or her iPad. Macy’s best customers are those who shop us in-storesand online. We have a whole series of strategies in place to drive our storecustomers to the Web, and our online customer to the stores…Today’scustomer is not monolithic. And that’s the way we are approaching ourcustomer.”5/21/2013ARTK CONSULTING, LLC 8MACY’S CHAIRMAN, CEO AND PRESIDENT – TERRY LUNGREN
  9. 9. 5/21/2013ARTK CONSULTING, LLC 9NOW THAT WE UNDERSTAND THE NEED FOR MORE INFORMATION, WHATNEEDS TO CHANGE? Aggregated Data Analytics and predictive models Data Science and Scientists
  10. 10.  Support Company Strategic Plan Create New Operating Models toImprove Revenue Mergers and AcquisitionsAGGREGATED DATA KEY TO SUPPORTING THE BUSINESS, NOT TRANSACTIONAL5/21/2013ARTK CONSULTING, LLC 10
  11. 11.  Better Insight to CustomersBuying habits Product Performance Channel Performance completeviewOMNI-CHANNEL MARKETING – UNDERSTANDING THE CONSUMER THROUGH ONLINE& OFFLINE DATA5/21/2013ARTK CONSULTING, LLC 11
  12. 12. CREATING PREDICTIVE MODELS5/21/2013ARTK CONSULTING, LLC 12 Information to drivethe futureperformance of theCompany. The Ability toChange is key toCompetitiveness.
  13. 13. Sales Transactions are notenough to truly understandyour CustomerROLE OF UNSTRUCTURED DATA IN DEVELOPING THE PREDICTIVE MODEL5/21/2013ARTK CONSULTING, LLC 13
  14. 14. A NEW ROLE OF “DATA SCIENTIST”5/21/2013ARTK CONSULTING, LLC 14Not only Managingthe Data, butunderstanding howto use it to provideinsight on yourCustomers
  15. 15.  Time consuming to build. Information designed toanswer only knownquestions. Single Silo / Departmentuse. Expensive to makechanges.5/21/2013ARTK CONSULTING, LLC 15TRADITIONAL WAREHOUSE NOT BUILT FOR CHANGEBottom Line: Inhibitor.
  16. 16. TODAYS DATA WAREHOUSE FOUNDATION MUST HAVE….5/21/2013ARTK CONSULTING, LLC 16Integrated information that can berapidly updated and enhanced toprovide the most complete view ofyour customers and their behaviors.
  17. 17.  Customer Group(s) Region(s) Interaction ChannelsINFORMATION MUST BE COMBINED INTO USABLE CONTEXT:5/21/2013ARTK CONSULTING, LLC 17
  18. 18. Change is Inevitable Pricing Pressures Competitors Like Products Similar EventsMUST MIRROR THE DYNAMIC NATURE OF MARKETS AND COMPETITION5/21/2013ARTK CONSULTING, LLC 18
  20. 20. WHERE DOES THE NEW DATA WAREHOUSE FIT IN THE NEW WORLD OFOMNI-CHANNEL?5/21/2013ARTK CONSULTING, LLC 20Collection of informationacross all Channels andCustomer Touch Points.
  21. 21. STRETCHING THE LIMITATIONS OF OLDER DATA WAREHOUSE APPLICATIONS5/21/2013ARTK CONSULTING, LLC 21 Constantly changing orNew Data Sources arebeing introduced Daily Unstructured Data fromAll Channels Needs to beIncorporated into theCustomer profile Machine Driven Data isBecoming more available Image & Voice are addingto the complexity
  22. 22.  Process-mediated data Structured operationaldata Machine-generated data Human-sourced: ExternalREVELANT DATA CAN COME FROM ANYWHERE5/21/2013ARTK CONSULTING, LLC 22
  23. 23. WHAT VALUE DOES THE DATA WAREHOUSE BRINGS TO OMNI-CHANNEL?5/21/2013ARTK CONSULTING, LLC 23Pulling it all together to create asingle view of your Customers
  24. 24. Nightly Batch or weeklyUpdates are no longerenough to satisfy therequirements in todaycompaniesTHE NEW DATA WAREHOUSE CONCEPT IS A GAME CHANGER5/21/2013ARTK CONSULTING, LLC 24
  25. 25. CONTEXTUAL DRIVEN MODEL IS THE NEW NORMAL5/21/2013ARTK CONSULTING, LLC 25Creating a MarketingCampaign combininginformation from multipleinput streams and datatypes:
  26. 26.  Ability to add new Data Sources New Syndicated Data Sources Geographic Sales by Category Household Spending Habits Weather AnalysisNEW CHARACTERISTICS REQUIRED:5/21/2013ARTK CONSULTING, LLC 26
  27. 27. Ability to integrate informationquickly will give planners the timeto analyze and act while Data is stillactionable.SPEED MATTERS?5/21/2013ARTK CONSULTING, LLC 27
  28. 28. 5/21/2013ARTK CONSULTING, LLC 28SO WHAT IS THE MAIN REASON FOR UPDATING YOUR CURRENT DATAWAREHOUSE?Make rapid product introductiondecisions.Shape demand using what-if analysis andscenario planning.Segment demand forecasts based on keyproduct or customer characteristics.Identify Your Customer across all BuyingChannels and Provide the Right Product atthe Right Time.Beat YourCompetitionto Market:To radically improve speed-to-insight.
  29. 29. 5/21/2013ARTK CONSULTING, LLC 29QUESTIONS?
  30. 30. 30 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Omni-Channel Data: Context Required
  31. 31. 31 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Realities For The Data ProfessionalData coming fromeverywhereTools to mine andanalyze data hittingevery laptop anddesktopThe I.T. equivalent ofa stampede towardsa cliff
  32. 32. 32 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Some Simple TruthsIf you can’t quickly find its:business relevance…business context…business contribution…Data from any channel has little(zero) value.
  33. 33. 33 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Aggregating With Business Context Is KeyAggregated data yieldssharper insights forplanners and marketersNeeds business context tocreate business valueEstablishing a contextualmodel built aroundbusiness use caseprovides a litmus test forbusiness relevance
  34. 34. 34 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Business Information ModelProvides context as to how datais defined by and used by thebusinessEnables rapid integration of newdata sources as they comeavailableEnables collaboration betweendata professional and businessprofessional
  35. 35. 35 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Thirty Minute ClassroomThursday, May 23rd11 a.m. Eastern“Rapidly Creating a Data Foundation For Omni-Channel Retailing”• 10-minute tutorial• Sample of a contextual business model• Demonstration of Business Information Modelingget.kalido.com/data-foundation-for-oc
  36. 36. 36 May 21, 2013© Kalido I Kalido Confidential I May 21, 2013Summers Sessions: Two Tracks For YOUSeries KickoffMay 14: Data Scientist: Your must-havebusiness investment now.(30 Minute Learning Sessions)May 28 Rapid Data Integrationtools and methodsJune 4 Harmonizing Data for theWarehouseJune 11 Rapid IterationMethodology UsingInformation ModelsSeries KickoffJune 25: Find your data warehouse’s hiddencosts before they find you.(30 Minute Learning Sessions)July 2 The real cost per release cycleJuly 9 Automate to reduce operating costsJuly 16 Reduce tool costJuly 23 Scale drives cost reductionsAgile Information Foundationfor the Data ScientistTCO: Find data warehousecosts before they find you.get.kalido/summer-series