Top 5 Strategies for Retail Data Analytics

Top 5 Trends in Retail Data Analytics

ShiSh (twitter: @5h15h)Retail Industry Solutions DirectorMicrosoft Corp

My insights from NRF 2017

Modern retail is data driven

Location sales Remote sales

Try on and try out productsFace-to-face info

In-store behavior

Social connection/user reviews

Product/price comparisonOnline history

Digital transformation enables the best of online &

offline

Top 5 Takeaways for Retail Data AnalyticsPersonalizationArtificial IntelligenceBlockchain in Retail Autonomous Retail Stores/Frictionless ShoppingIot

Sam Quinn, 27TRAVEL BLOGGERLAST VISIT: DEC 21

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Selina Stuart, 17HIGH SCHOOLERLAST VISIT: APR 16

Diana Jones, 16HIGH SCHOOLERLAST VISIT: APR 23 WELCOME Still looking

for a prom dress?Talk to an associate to see the items from your wish list!

BROWSE

Retail Personalization001

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Weather

Auto-generated Offers

LocalEvents

Time ofDay

RecognitionSoftware

CustomerProfile

POSData

Digital Footprint Audience Wearables

Wish list Hiking boots sale

Grab and go

Marketing Objective

More Frequent visits

Increased SalesHigher Foot TrafficLocation

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Sarah Calvert, 36WORKING MOMLAST VISIT: MAR 3

ContosoEyewear

Connect with customers at the right time, right place with the right offers• Generate relevant and

targeted offers using integrated data sources

• Deliver timely offers based on customer location and time of day

Predict what customers want before they tell you• Anticipate customer

purchases based on profiles, needs and significant events

• Create natural cross-sell and upsell opportunities using predictive analytics solutions

Ensure transaction continuity

• Strengthen next best action engine by using outcomes of every customer decision

• Improve offer uptake with better propensity algorithms

• Prevent duplicate offers across channels

Boost customer loyaltyand profitability• Keep customers engaged

and delighted with personalized, event-based offers

• Deliver engaging in-store experiences using digital assets to support interactions with informed sales associates

Streamline operations

• Become an data-driven organization

• Evolve from reactive to proactive to help build, monitor, and improve your brand

• Keep pace with rapid change and innovate with cloud infrastructure

Your order is ready!Pay in-app to grab and go.

1

Engaging customers for repeat visits7-Eleven

Objectives7-Eleven wanted to connect various sources of customer data to provide a single customer view, and use mobile & live data to track the purchase cycle and engage customers in real-time

TacticsThe Plexure solution uses a mobile app, IoT orchestration, and beacons to tailor customer promotions to personal preferences and purchasing history

Results• Linked fuel purchases to

convenience purchases, positioning 7-Eleven as the convenience store of choice

• Encouraged customers to return to 7-Eleven locations, taking up more offers more often

Built on Microsoft Cloud Technology

Frictionless Shopping

• Enable Self Checkout & BYOD

• Frictionless Shopping Experiences

• Grab and Go• Cognitive Services• Artificial Intelligence

Artificial Intelligence/Cognitive Services & Robotics

• Detect Misplaced Products

• Detect Out of Stock• Detect Wrong Pricing

Labels• Analyze & Respond to

Customer Behavior• Uses Image Recognition

/Cognitive Services / Artificial Intelligence

Mars Drinks optimizes operations, boosts customer satisfaction using IoT & Analytics

Challenge • Avert downtime and

out-of-stock products• Improve operational

efficiency of partners in the field

• Deliver better customer service

Solution• MARS DRINKS

identifies the optimum time to stock and service its vending machines by using Internet of Things (IoT) technology

Benefits• Improves timely product

stocking and operational efficiency

• Increases customer satisfaction

• Drives business insights from consumer behavior data

“Putting machines online, considering how a space is used, and looking at people’s beverage consumption will unlock a wealth

of information that we haven’t been able to easily access before.”

— Jamie Head, Chief Information Officer, MARS DRINKS

Blockchain decentralizes data in a trustless environment

Traditional System

Centralized system with stored ledger

Blockchain System

Distributed system with distributed

ledger

• Traditional ledgers are centralized and use 3rd parties and middlemen to approve and record transactions• Blockchain safely distributes ledgers across the entire network and does not require any middleman• The technology maintains multiple replicas like p2p torrent file sharing

Webjet Uses Blockchain in First-Of-A-Kind Travel Bookings Solution

Challenge • Webjet handles thousands of hotel

bookings every day that pass through multiple operators. The high volume of transactions and number of parties involved in each transaction can lead to discrepancies.

• Booking errors negatively affect customers’ experiences and undermine trust between Webjet and its partners, and can also have serious financial consequences.

Strategy• Webjet and Microsoft

developed a first-of-a-kind blockchain solution.

• The solution creates secure, independent transaction records that all parties can see. Known as ‘Smart Contracts, they streamlining the booking and payment process, and reducing errors.

Results• The use of blockchain removes the risk of

data inaccuracy, boosts security and efficiency, and enhances trust and accountability between Webjet and its partners.

• The solution gives Webjet a competitive edge and could set a new industry standard.

• Webjet has an exciting opportunity to grow by facilitating transactions across the travel industry and selling its solution into other sectors.

“Microsoft’s ongoing investments in building the industry’s most trusted cloud platform around the principles of security,

privacy and control, compliance and transparency, along with its deep heritage in guiding businesses, including Webjet,

through periods of significant IT transformation made the decision to go on this journey with Microsoft a no-brainer.” — John Guscic, Managing Director, Webjet

© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Top Five Strategies for Retail Data AnalyticsMy findings of NRF 2017Eric Thorsen (@ericthorsen)GM Retail and Consumer ProductsHortonworks

13 © Hortonworks Inc. 2011 – 2016. All Rights Reserved

NRF 2017 Recap

35,000 attendees– All 50 states represented– 94 countries represented

HR was a theme – in addition to technology, data, and automation Five observations based on NRF 2017 Big Show

– Data was a key element of many presentations– Consumer experience continues to be central to retail strategy– Unique ways to avoid distraction during systems implementation – Technology (and data!) continues to grow exponentially– Omnichannel is less a buzzword and more of an expectation


Overwhelmed by Data New types, new sources, new systems

Retailers are reporting an overwhelming variety and volume of data– Not always “big data” by volume, can be complex data by variety– Retail Data Analytics improve with greater access to all data types– 4 V’s (Volume, Variety, Velocity, and Veracity) – Veracity provided by Blockchain (per Shish)

“Identity is the core of personalization” and identity is composed of dataJeff Rosenfeld – Neiman Marcus

“Sometimes you just need to buy a lightbulb. But customers expect the light bulb to be in stock, and data can help ensure this happens.”Dave Abbott, The Home Depot


Consumer Experience

Impact of Millennials– Do not behave predictably– Most mature retailers have built business on

backs of boomers– Spontaneous, impulsive, distracted, but loyal

Expectation of personalization– Sharing data to promote deeper relationship– Introduction of “comfort factor”

Whitney Walker, GM Stores, SONOS– Importance of consumer experience


Retail Systems Leadership – Signal vs. Noise

Focus on business impact– Essence of simplification

Mike McNamara – CIO of Target– 5 Post-it notes


Technology continues to increase pace New “Moore’s Law”

– Data is doubling every year– First reported at NRF 2014 by Ginni Rometty (80% in last two years)

Process Automation and Automated Assistants– Amazon Echo will be in 40 Million homes by 2020– Evolution of drones for last-mile delivery– Automated picking and shipping in DC’s– Continued evolution of business process efficiency

Trends in Data Management– The number of U.S. firms using big data in the past three years has jumped 58 percentage points to

63% penetration– 70% of firms now say that big data is of critical importance to their firms, an astounding jump from

21% in 2012. That’s one of the fastest tech-adoption rates ever. – The title of chief data officer — the C-Suite manager of big data — a title that until recently didn’t

even exist, is now found in 54% of companies surveyed.

New Data

Traditional Data


We need a new channel definition

Omnichannel fails to summarize experience Consumers demand personalization

– Online– On application– In store– By phone

To Legacy

API

ALGORITHMS

DATAData

Ingest


How to benefit from trends and data in retail

Engagement of Hortonworks to identify and focus on business-driven prototypes• Big Data Scorecard

• Assist business leaders understand and evaluate the essential focus areas for accelerating business transformations

• Joint Innovation Program• Focus on business impact to create “Vision to Value”,

addressing key executive questions

• Design Thinking paradigm of ideation and prototyping towards vision

• Use Case Workshop• Staffed with customer architects and business leaders to

identify low hanging fruit for self-funding projects

Business( Viability )

People(Desirability)

Technology(Feasibility)

DesignThinking

Experience InnovationEmotional

Innovation

Functional Innovation

ProcessInnovation


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