Next Generation Retail Part 3 - Retail Transformation Best Practices
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The document outlines the evolution of retail through cloud computing and big data, emphasizing the importance of an innovative supply chain and personalized customer experiences. It discusses various technologies, such as smart cashier-less stores and advanced sales forecasting, aimed at enhancing operational efficiency and optimizing marketing strategies. Key drivers for retail transformation include improving customer experience, operational optimization, and leveraging data analytics for informed decision-making.
Next Generation Retail Part 3 - Retail Transformation Best Practices
- 1. Evolving to Retail Cloud Connecting Your Business to Customer
- 2. Opportunities - Retail Value Chain Bridges Your Business and Customers 02 / 18 Enabling open, efficient, synergetic supply chain with cloud computing and big data 02 Cloud Logistics Cost savings and increased benefits for logistics with new technology and new modes 03 Smart Manufacturing Empowering the manufacturing with big data analytics and cloud computing 04 Channel Distribution O2O, Omnichannel and other emerging services for distribution 05 Online to Offline (O2O) O2O is an emerging retail channel that connects customers and products Precision marketing, and closed-loop marketing methods for optimizing marketing and operations 07 Consumer New consumer experience and immersive service 01 Smart Supply Chain 06 Marketing & Operation
- 3. Business and Customers - the Main Drivers Behind Retail Transformation 67%Improve customer experience Optimize business operations Survive as a business / organization Transform products / services Develop new revenue streams Exploit new game-changing technologies Empower employee Prevent disruption / capture market share Retail 56% 52% 34% 42% 29% 24% 26% First mover advantage 17% Source: Microsoft, www.redpixie.com Enhance In-store & Support Experience Predict Customer Behavior Analytics Create Omni-channel Experience Manage Consistent information across all channels BusinessandCustomers 03 / 18
- 4. Innovation and Customer-facing Technology Allow Seamless Integration of Online and Offline Commerce Online Offline Advantage： • Better experience offline • Face-to-face (personalized) customer service • Real-time and quick response Advantage： • Not limited by physical space and service-staff • Easy to collect and analyze customer information Integrate 04 / 18
- 5. Innovative Technology Enables Smart Cashier-less Stores Smart Shelf Facial Recognition VIP IdentificationBehavior Tracking Magic Mirror Personalized Recommendation Image Search by Picture Self-service 05 / 18
- 6. Smart Store with Retail Cloud Solutions Offer Better Recommendations with Data Integration Consumer Visit Shopping Mall Enter Store Browse Products Select Products Try Clothes Make Payment Leave Store Shopping Mall Retail Store Shop Shelf Products Fitting Rooms Checkout Counter Store Exit Applications of Data and Analytics Tracking Behavior Data Shopping Guide Data Ad Display in shopping malls Tracking Behavior Data Interactive Marketing Data Personalized Service Recommendation Shelf Display Data Tracking Data Shelf Display Analysis Product Data Product Browsing Data Shelf Display Analysis Preference Data Shopping Tips Order Data Payment Data Personalized Service Recommendations By Settlement Data Inventory Data Storage Optimization Settlement Data 06 / 18
- 7. Traffic Analysis Monitor Store Traffic Analyze Store Traffic Real-time monitoring of store’s traffic using WiFi technology helps in optimizing sales and operations. With Alibaba Cloud Big Data, you can gain a comprehensive insight into customer characteristics and take well informed data-driven decisions. Customer Foot Traffic Customer Profiles Store Ranking 07 / 18
- 8. Store Site Selection Customer Profiles Customer Expansion Site Analysis Site Selection Perform profile analysis on members (pilot test groups), extract core attributes based on business requirements Balance Book Credit Card 51talk Five Grain Using label characteristics of pilot test groups, you can select similar user groups from the data pool of all users, and enlarge the similar population size to carry out a wider range of group behavior analysis Thermal distribution of population area time window, change trend, trajectory characteristics... Compile a list of locations for new stores, locations for marketing activities, and the optional range of advertising sites Educated Comprehensive analysis of regional economy Family income level, family composition, regional economic characteristics... Analysis of hotspots office buildings, government, schools, hospitals, shopping malls, urban and rural areas Competitor Analysis Shop distribution, Business Circle portrait... 08 / 18
- 9. Intelligent Supply Chain 09 / 18
- 10. Sales Forecasting Integration Analysis Sales Forecast You can make sales forecasting and demand predictions using your store’s historical data, competitor’s data as well as forecasting modeling techniques. Analysis of different dimensions of business sales, purchase volume, and inventory Choose from a range of filters, including, type of brand, products, and season Sales Forecast Using Factor Analysis Historical sales data Forecast sales data 线性回归模型 GBDT模型 Holidays Origin …… Sales Forecast Using Time Series Analysis 10 / 18
- 11. Inventory Optimization • Using historical data, sales forecast, current inventory analysis, ABC analysis, inventory turnover analysis, and inventory simulation, you can optimize operations. • According to the sales of different goods and sales frequency, you can determine classification (A / B / C), and use a different inventory strategy for each category. • Alibaba Cloud's High- Performance Computing platform can simulate inventory operations for advanced supply chain alerts. Case StudyIntroduction The Analysis to the Inventory Turnover Ratio(ITO) The Inventory Simulation Analysis Multiple Layer ABC Analysis Tmall Category Result After optimization, Inventory rate fell by 22.6% in the whole, rate of shorts stood at 2.2%, at the same time increased prediction accuracy reached 80%, the accuracy increased by about 20%. 11 / 18
- 12. Precision Marketing Core Competencies 1.Insight Online and offline profiles, Business districts, address analysis 2.Analysis Analyze profiles and business districts 3.Discover Enlarge customer base 4.Reach Inactive customers, new target customers 5.Evaluate Effectiveness, Optimization, Monitor public opinion 1 2 3 4 5 Who is your customer and what is your core business model? What are their characteristics? How can we attract more customers? How ads reach the inactive users? Is the ad effective and does it appeal to potential customers? Precision Marketing Closed-Loop Marketing Effectiveness Evaluation Target • Customer • User segmentation • Customer Value Analysis • Precision Launch • Forecast Marketing effectiveness • Media planning • Impact assessment • Public opinion analysis • Optimization analysis • Activate latent demand • Product optimization 12 / 18
- 13. Customer Profiling Build a multi-dimensional customer profile using a dataset consisting of both online and offline activity. Customer profiles can significantly aid in user research, marketing activities, and decision making. Profile Assets Vehicles Real Estate Career Education Location Residence Favorite Places Favorite Commercial Areas Life Stage Married Graduated Preferences Travel Online Brands Car Buy New , Buy Used, Rent, Maintain. House Social Life, Love, Interests, social… Life Travel, Food, Experiences... Gadgets Navigation, Cellphone, Communication… Read Sports, Anime, Entertainment… 。。。 Buy, Sell, Rent, Decorate…Basic Attributes Gender Age Occupation Education Spending Power Shopping Venues Brand Preferences Luxury Preferences 13 / 18
- 14. Recommendation - Thousand People, Thousand Faces Gain insights into consumer rationality and emotional appeal by using Big Data analytics. KIA Dance/Aerobics/Gymnastics Ford Football Toyota Basketball Roewe Mahjong/Chess/Puzzles 14 / 18
- 15. 360o Customer Characteristics • Oral status • Toothpaste preference • And more • Car brand • Vehicle age • And more … • Style preference • Unit • And more • Shin type • Efficacy • And more • Gestation age • Powder milk preference • And more • Hair quality • Efficacy • And more Oral care industry Wash nursing industry Decorating industry Auto industry Other industries Beauty industry Maternal and child industry Social attribute Natural attribute Interests and preferences Consumption preference Gender Age Zodiac Height And moreWeight Economic conditions Family status Social position Political religion Geographic location Values Entertainment and interest Lifestyle and personal preference ESSENTIAL ATTRIBUTES YEARN AND NEEDS 15 / 18
- 16. Personalized Online Recommendation Customer A Customer B Customer C 16 / 18
- 17. Business Monitoring and Visualization A live touchscreen dashboard helps you explore information in an interactive manner. 17 / 18
- 18. We Will Guide You in the Digital Transformation of Your Retail Business Envision Retail • Retail Assessment • IT Strategy • Retail Roadmap • Gap Analysis 32 1 Build the Core • Enterprise platform to support business and data capability • Innovation to customer experience • Data collection through touch points Go Beyond • Optimize business operation and customer experience • Data Ecosystem 18 / 18