Industries

Retail

How much do we know about customers? Let's not talk about segmentation, basket size or scan data. Are we really intimate with customers to the point at where we can individualise promotions on shoppers' needs at particular store locations?

It's an amazing fact that few retailers own and manage a customer database. It's even more amazing when you consider the number of touch points retailers have to reach customers; web, wireless, POS and in-store interactive displays.

In our vision we see the most challenging aspect of retailing in today's competitive environment as the ability for retailers and their suppliers to collaborate on promotion strategies that successfully generate demand for their products in the most appropriate locations and at the right time of day.

Today's Asian customers are fickle; they show limited loyalty to both brand and location. Therefore in our vision we have included the following elements :

The setup of a collaborative dynamic connection between a supplier, retail chain and selected customer segment using multiple communication channels
Mechanisms to collect and analyze key data (location, demographics, product choices)
Plan a promotion based on real time data
- Target customer groups
- Inventory positions
- Time of day
Design and validate the promotion business process
Execute, monitor and optimize the promotion

API research indicates that promotions fail primarily because of the lack of communication, information sharing, effective event monitoring and poor post event analysis.

Main reasons for promotion failure:

Dynamic process
- Does not fit standard ERP or CRM processes
Inaccurate product data
- 30% errors in line item details
- Wrong orders/invoices not paid
Inter-departmental no single process owner
- No standard KPI
- Silos hold key planning information
High cost
- Ave 13% trade spend-(percentage of sales)
- Excess capacity
- Stock-outs
Little post-evaluation
- Inability for firm-level learning