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professional retailing

Meeting today’s connected shopper

Retail 2D captures and employs customer insight and product information capture and embed insight on customer behavior in their processes, and dynamically align their offering with what cusHoneywell’s Enzo Capobianco, EMEA (Europe, Middle East and tomers value the most. Customer insight is therefore the second dimension to be Africa) industry marketing manager, discusses the value of a captured in order to improve retail optwo-dimensional retail strategy employing customer insight and erations productivity, where product asproduct information. In Retail 2D, stores utilize information about sortment, product pricing and product promotion strategies are all tailored to products and consumers, while store associates become more match customer behavior and expectacustomer centric and service focused. tions. Product information and customer insight are the two dimensions which features, find out about product promoneed to be captured by scanning and Retail Challenges With a mobility solutions in order to be ready Product-focused Strategy tions and compare prices. They use the for what we call “Retail 2D.” Internet and mobile technolThe current retail model is being In order to succeed in challenged. It is a system based mainly ogy, inside and outside the Retail 2D, it is no longer on one dimension: the product. store, to interact with other enough to capture and According to this model, products are consumers and friends, master product data and manufactured, distributed and sold to check references, validate product information. Comconsumers who buy what they find on the their buying options, share shelves at local retail stores, stimulated their shopping experience panies are investing in adby traditional promotional activities and write reviews about a vanced technologies and socommunicated using mass marketing retailer or a product/service lutions which enable them media. It is a linear, push-based prousing their favorite socialto capture and analyze their networking tool. customers’ insight, democess, centered on the one-dimensional Although most purchase (1D) EAN/UPC bar code. Over the last graphic attributes, personal decisions are still influenced 40 years, the standard adaptation of the preferences and expectaand finalized in the store, EAN code by the industry has played tions. the new connected shopper a key role in the huge improvements In this new scenario, the is expecting to be recognized achieved by retailers in their supply store is becoming a miniand empowered in store with chain optimization. Still, retailers today data center without the technologies offering the lose millions of dollars due to two main I.T. staff where automatic same interactive and seamissues: identification solutions capture, connect and mine less experience available   excess stock of unsolicited merinformation about prodonline or on a smartphone chandise, which leads to increased disapplication, with the further counting and lower margins and ucts and customers. The benefit of a direct and perrole of store associates is   stock-outs on requested merchanchanging from being task dise which leads to reduced sales and sonal shopping experience. directed and sales focused market basket size. to customer centric and serOver-discounting and empty shelves The Store Is Still are the main consequences of a retail the No. 1 Channel vice focused. It is no longer model focused on products, where sales about getting the shelves According to research forecasts are based on past sales results, full with the products refrom the IBM Institute for rather than on what consumers expect Business Value, almost nine tailers want to sell based on to find in their favorite stores. out of 10 retail transactions last quarter’s results, but it Retailers taking a 2D approach will be able to serve their worldwide still take place in is more about understandcustomers better using mobile scanning technology. a store, which is also the secThe New ing what customers expect A key role will be played by store and how to meet these demands with a Connected Shopper ond source for product awareness and associates who need to be empowered tailored offer and an enhanced shopping the third source for product research. In today’s retail operations, the gap with new tools and technologies that experience. The Internet and mobile technology is between a product-based model and help them recognize, engage and interact empowering consumers to search for one based on consumer expectations is with shoppers in order to offer a tailored what they need, as well as where to buy even more relevant when we look at the Empower the Staff, experience and enhanced customer serit and at what price; however, most constaggering adoption rate of new mobile Engage and Interact technologies that make consumers more sumers still prefer to complete purchase vice. The reward is a loyal customer who Today, retail workers use tools that informed and empowered in the purtransactions in a store for the following may spend up to 30% more at each inallow them to quickly and accurately reasons: store transaction. carry out routine tasks, manage inventochasing process. In fact, the use of the Internet along with the availability of ry and move customers quickly through   Immediate satisfaction: Shoppers new and more powerful mobile devices the check-out process. However, to serve Know the Shopper’s get a sense of satisfaction from their that can be used to connect to the web and meet the expectations of the new inshopping when they are directly involved Expectations anytime, anywhere is reshaping consumin the selection process and take the merIn order to adapt the customer exformed and connected shopper, retailers need to empower their employees with er buying behavior. chandise home with them. perience offered in store and meet the innovative productivity tools that can The new connected consumer can expectations of the new technology  “The market inside”: Consumers can now go online to research a product’s empowered customer, retailers need to see, try, touch, listen and taste their favorite r e ta i l 2D, page 34

BY ENZO CAPOBIANCO, Honeywell Scanning & Mobility

product, as they’ve done for centuries.   Personal: Shoppers are emotionally involved and can get personal support and advice from store associates. However, retailers need to change to meet to the expectations of connected customers for a seamless shopping experience across the various selling channels (e.g., Internet, mobile and in-store). Retailers using the in-store operations model need to adapt their processes to a customer-centric model where product assortment, pricing and promotion are aligned to customer demand.

“The role of store associates is changing from being task directed and sales focused to customer centric and service focused.”

Christian Retailing March 2013  
Christian Retailing March 2013  

Serving the Christian products industry worldwide