The IoT X factor: Maximizing customer & employee experiences_MTI
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This document discusses how Internet of Things (IoT) technologies can be used to connect customer experience (CX) and employee experience (EX) in the retail industry. It notes that CX and EX greatly impact brand loyalty and business performance. The document then outlines trends in retail like personalized shopping and discusses how IoT applications can improve areas like inventory management, customer tracking, and training. It emphasizes using IoT to provide real-time communications, sales enablement tools, and efficiency to improve EX while enhancing the customer experience. Finally, it presents a model for connecting the retail world through optimized CX, empowered EX, asset protection, and global execution.
The IoT X factor: Maximizing customer & employee experiences_MTI
- 1. The IoT X Factor: Maximizing Customer & Employee Experiences
- 2. Travis Hooper VP of Products & Strategy
- 4. Retail IoT Connects CX & EX CX Customer Perception & Brand Loyalty Are Greatly Impacted by In-Store Experiences Internet of Things EX Highly Engaged & Empowered Employees Drive Both Top & Bottom Line Improvements .
- 6. Total Retail by 2025 (www.statista.com) China will have the largest retail spending in 2020 81% of retail sales projected to be In-Store Of Internet users on social media by 2025 Store sizes will reduce size by 2020Total Online retail by 2025 Retail is Alive and Well……..
- 7. 5 Trends Reshaping the Retail Industry $3.4B $50.6B 64% 60% 70% Spend in Artificial Intelligence Click-and-collect based Revenue Prefer personalized shopping experience based on past purchase behavior Lack data to effectively manage customer acquisition initiatives Customers believe it is easier than ever to take their business elsewhere.
- 8. Digital Capabilities Rapidly Transforming Commerce Historical Retail (100’s of years) Intro of eCommerce (Last 20 years) Channel Convergence (Last 5 years) New Norm New Expectation Instant, coordinated, automated and personalized shopping experiences
- 9. Brick & Mortar Must Continue to Evolve When Bain & Company asked organizations to rate their quality of customer experience, 80% believe they are delivering a superior experience vs 8% of customers who believe they are receiving a great customer experience. COMPANIES vs CUSTOMERS “Retailers are no longer selling things. They’re selling the experience of buying those things.” - Dan Newman, Futurum Research
- 10. Retail IoT
- 11. Camera Mobile Check-In Mobile Pay Data & Analytics POS RFID Digital Signage Kiosk “Connecting systems, providing unified visibility, real-time decisions, and deepen insights into customers, competition, product, portfolio, and performance.”
- 12. Thing or Device Gateway Cloud Analytics User Interface Data Data Data Data Major Components of IoT
- 13. Growth in Connected Devices Science and Tech Sector All Sectors
- 14. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sensors RFID Tags Wearables Beacons New Use Cases Driving Growth in IoT Hardware 2014-2025 (USD Billion) Supply Chain (Cost & Inventory Tracking) Proliferation of Connected Things & New Use Cases
- 15. IoT Retail Applications Customer Interactions & Tracking Asset Protection Connected Mobile App Experience Rich, interactive experiences Personalized virtual closets Completely centralized information
- 16. 2020 IoT Trends in Retail Personalization Expansion of Data Collection & Analytics Technology Proliferation Visual & Voice Search Mobile Shopping Apps Augmented & Virtual Reality
- 17. Data Collection & Analysis 79% Cameras and video analytics for operational purposes 75% Predictive analytics 79% Loss prevention and inventory visibility elements enabled by operational technology 75% Cameras and video analytics for customer experience 78% Software analytics for loss prevention, price optimization 72% Visual analytics for making sense out of loT data 77% Big data solutions for storing and analyzing loT generated data 72% Cognitive computing to drive optimizations and insights
- 19. Customer Expectations Rapidly Changing…… Customers Are More Knowledgeable Than Ever Before Gen Z Prefer Shopping In Stores Gen Z + Gen X + Millennials Are Becoming The Majority New Norm - Buy What you Want, When you Want, How you Want Customer Expectations
- 20. Customer Experience #2……… 7% 8% 17% 22% 37% 47% 52% Social Responsibility Selection Availability Price Brand Reputation Customer Experience Quality Source: Harvard Business Review Analytic Services
- 21. The Empowered Consumer… • Tech-Savvy: Moves seamlessly & interchangeably between devices • Well-informed: Shopping as a mission • Relies on online referrals, reviews, price comparison and recommendations • Requires loyalty to be rewarded – otherwise it’s short-lived • Grasps new concepts quickly – gets bored easily • Seeks stimulation and expect constant change • Highly conscious of time and value The balance of power has shifted to consumers – they are setting the agenda and retailers must follow.
- 22. Upside of CX 55% of consumers would pay more for a better customer experience – Defacto Research 65% of buyers find a positive experience with a brand to be more influential than great advertising - PwC 86% of consumers with an excellent CX are likely to repurchase - Temkin Group 4-8% Companies that excel at customer experience grow revenues 4-8% above the market - Bain & Co
- 23. Consequences – Poorly executed CX 70% of retail leaders believe customers will wait 5 MINUTES OR LESS for service before going elsewhere –Upstream Commerce 78% of Customers have bailed on a transaction due to poor service experience –Maritz CX 58% of consumers with an excellent CX are likely to repurchase - Temkin Group 95% 95% of customers tell others about their bad experience -ZenDesk
- 24. What is CX Missing…? The Future of CX is Human 59% of consumers feel companies have lost touch with the human element of customer experience. - PwC
- 27. Employees are the Essential Ingredient ………….. “The key to success when it comes to creating a store experience that shoppers want to return to again and again is grounded in highly engaged associates; investing in human capital is vital.” - NRF
- 28. What is Employee Engagement? 1. THINK 2. FEEL 3. ACT Engagement is defined by 3 factors. How employees…
- 29. Benefits of Highly Engaged Employees 2.5x 2x 62% 50% 40% 24% 18% 12% Greater Revenue Growth Annual Net Income Fewer Accidents Less Absence Days Lower Employee Turnover Higher Net Promoter Score Higher Productivity Higher Customer Advocacy *For more data & other resources, please visit www.engageforsuccess.org
- 30. Gaps In Engagement ENGAGE Build Strengths and Purpose Frequent Refresh and Touch Base PERFORM Drive Expectations Measure & Provide Feedback DEVELOP Coach Career Growth Active Dialog ONBOARD Affirm the decisionATTRACT RecruitTopTalent DEPART Positive Send-Off PERFORM Employee Journey
- 31. Improving Employee Engagement with IoT Provide Real Time Communications Drive Sales Enablement Conduct Regular eLearning & Training Provide Effective Inventory & Space Management Promote Efficiency & Task Automation
- 32. Consumers Business Buyers 64% 80% 1. IoT Impact- Real Time Communications Employee Tools Must Be: • Proactive & Predictive - Resolve Issues Before CX Impact • Aggregated – Dashboards, Infrastructure & Systems • Actionable - Deliver Context/ Problem + Solution
- 33. 2. IoT Impact- Sales Enablement Balance Employee Empowerment & Loss Prevention Personalize Loyalty Customer Journey Provide Tools that Support Customer Journey
- 34. 3. IoT Impact- eLearning & Training Training On Demand • Optimized for Mobile Personalized & Experience • Employee, Customer, Environment Guided, Curated Experiences • AR & VR “Digital Twin” Gamification • Increases Retention Rates • Provides Instant Feedback • Boosts Productivity • Drives Behavioral Change
- 35. 4. IoT Impact- Inventory & Space Management Inventory Visibility & Accuracy - No more manual counts Inventory Tracking Locate on-demand Space Planning Communication & Execution
- 36. 5. IoT Impact- Efficiency & Automation Reduce Redundant & Manual Processes Opening & Closing Procedures Simplified Task Management & Reporting
- 37. Measuring Engagement- eNPS 20.3% -0.1% 5.1% -4.6% Front LineManagerVP/DirectorC-Level “On a scale from 0 to 10, would you recommend your company as a place to work to a friend or colleague?” Employee Net Promoter score (ENPS) = % promoters minus % detractors; Responses categorized as promoters (9-10), passives (7-8) or detractors (1-6)
- 38. Not Engaged - Productive, but they are not psychologically connected to their company. They miss more workdays, more likely to leave. 52% Actively Disengaged - Physically present, but psychologically absent. They are unhappy and insist on sharing this unhappiness with others. 19%Engaged - Loyal and psychologically committed. More productive, higher retention. 29% Are Employees Engaged?
- 39. Best Practices
- 40. Connect Your Retail World Customer Experience Employee Engagement Asset Protection Partners & Vendors Execution
- 41. Optimize the Customer Experience • Engage & Drive Brand Experiences • Drive Interactive Demos • Enable Product Specific Content • Enable Customers to Provide Real-Time Feedback • Provide Exceptional Speed of Service • Quick Access to Floor Inventory • Increase Conversions & Net Promoter Scores • Put Real-Time Product Information in Employee’s Hands
- 42. Enable & Empower Employees • Empower Staff & Simplify Operations • Auto Alerts & Intuitive Tools • Increase Time with Customers • Improve Store Execution • 24/7 Connectivity • Real-Time Actionable Metrics • Regional, Corporate & Brand Visibility • Ensure Consistent Global Execution
- 43. Maximize Asset Protection • Intelligent Protection • Self Diagnosing Products • Real-Time Alerts • Ensure Compliance & Health • Reduce Shrink • Employee Specific Key Tracking • Centralized Access Management • Drive Internal Accountability
- 44. Engage Partners • Open Platform Integration • Real-time Planogram Execution • Smart Digital Signage • Time & Attendance • Deliver Analytics & Insights to Brands • Actionable Dashboards • Manage by Exception • Provide Visibility & Accountability to Performance
- 45. Execute Globally • Improve Return on Display • Accelerate Response Times • Promote Exception Based Management • Maximize Brand Advocacy
- 46. Connected Retail World Customer Experiences Execution Security Operations Partners
- 47. Digital Initiatives Checklist Can Initiative Impact both CX & EX Identify ROI Drivers & Success Metrics Is it Real Time? Privacy & Security Integration Potential
- 48. To Learn More Visit: MTIGS.com Thank you! Travis Hooper MTI, VP of Products and Strategy travis.hooper@mtigs.com
Editor's Notes
- #2: Good Morning and Welcome. My name is Travis Hooper and I am the VP of Products, Innovation and Strategy for MTI. My company has 40+ years of experience helping Retailers Merchandize and secure products with Software, Security and Service offerings. A few years ago we ventured into the IoT space and made a decision to transform our product offering and incorporate IoT technology into everything we do. We believe that providing Real-Time visibility into performance coupled with an open platform drives successful Customer Experiences while empowering and engaging employees. I am excited to spend the next 30 – 45 minutes with you sharing what we have learned and offering best practices for Connecting Customer and Employee Experiences
- #5: Customer Experiences and Brand loyalty can be greatly improved by positive in-store experiences. Highly Engaged and Empowered employees have been proven to drive both Top and Bottom line improvements Historically these 2 initiatives have been viewed separately and have lacked integration between the 2 strategies With many of the recent advancements in technology, IoT has now provided simple and cost effective ways to connect CX with EX. Brands that are able to execute a tight integration between CX and EX are maximizing business results
- #6: Before jumping into the CX and EX discussion, I wanted to share a few insights from the industry
- #7: Many of you have been inundated with stats around retail and everywhere you look at this s With all of the talk about Digital experiences and the growth of Amazon capabilities, the industry is still projecting that 81% of Retail Sales will happen in-store as opposed to online. Although the majority of sales will occur in-store, the customer experience will dramatically change as customer expectations are rapidly changing.
- #8: 55% increase YoY. In year 2024 projected to be $90M 64% of customers prefer a person Rise in House Brands
- #9: Digital capabilities have turned the industry upside down. What was a very slow & gradual transition from Single Channel Commerce to eCommerce has now become a rapid evolution where Unified Commerce is the new norm. All channels have converged and having a single view of customers across all channels is a must. The new consumer expectation is one of instant, coordinated, automated and personalized shopping experiences in an omnichannel fashion.
- #10: The new consumer expectation is one of instant, coordinated, automated and personalized shopping experiences in an omnichannel fashion.
- #12: “IoT is more than just the “things” of connected devices, products, or services. IoT can connect systems, providing unified visibility, real-time decisions, and deepen insights into customers, competition, product, portfolio, and performance.”
- #14: In recent years, we have seen an explosion in the # of Connected Devices. As technology allows beacons and sensors to get smaller and more powerful we will continue to see this exponential growth. What started as Smart Phones, has now become smart cities, smart homes, smart retail. Every industry is being transformed by this technology
- #15: In early IoT adoption, the focus was primarily on sensors and RFID to drive efficiencies and cost savings in the supply chain. We are now seeing large growth in beacon and wearable based hardware as use cases continue to evolve
- #16: Customer Interactions / Tracking Connections to IoT devices allow retailers to track an extra dimension of data from customers’ visits. Reduce shrink RFID tags, radio antennae and infrared cameras track merchandise before it leaves the store. Connected Mobile App Experience Send special offers and greetings, and shoppers can scan products for competitive price checks and instant discounts. Rich, interactive experiences Digital tags and interactive displays allow shoppers to do research and customize products. Personalized virtual closets Try on new clothes with items shoppers have at home using purchase histories. Completely centralized information All IoT devices talk to each other and the CRM for instant customer feedback and retailer action.
- #17: AR & VR – Historically used for Gaming, now starting to become more main stream. (Training) Expansion of Data Collection – Recording everything that is happening store created more Big Data, now that question is what do you do with it? Technology Proliferation – Explosion of devices now created infrastructure problem (Bluetooth, Ultra Wide band, Zigbee, Zwave, etc) Visual & Voice Search – Amazon, Google, and Apple continue to drive advancements in this category Mobile Shopping Apps – using location services and personalization to drive promos, deals, and experiences Personalization – everything is being personalized
- #18: MTI Point of View Linkage to action orientated data, move to exception based management, real-time visibility to planograms Macro level to Micro data to highlight those things that need to be changed and actioned (product specific etc)
- #26: Idea- consumers can get lost in a sea of digital technologies without an employee to support that experience.
- #31: Idea- consumers can get lost in a sea of digital technologies without an employee to support that experience.
- #32: Real Time Communications Sales Enablement eLearning & Training Inventory & Space Management Promote Efficiency & Task Automation