The trend for companies in the Consumer Industries is to get more personalized using modern technology—to get a holistic view of the customer and offer unique recommendations that fit their needs. This is actually getting back to an older way of serving the customer face-to-face, says Steve Okun, Director at /N SPRO, who spoke on a Consumer Industries panel for SAP Game Changers radio recently.
On January 15, 2015, Target Canada shocked the business world by filing for bankruptcy protection. The retail giant’s Canadian stores had been open for less than two years, their operation marred by high profile failures: delayed openings, empty shelves, and annual losses that added up to 2.1 billion USD. Analysts, reporters, and Target’s own employees unanimously identified the culprit – bad data in SAP.Exclusive: Target Canada’s supply chain gridlock: how Barbie SUVs snarled traffic
This in and of itself was not a new story; the two largest food retailers in Canada – Loblaws and Sobeys – had both had significant issues with their SAP implementations. Target believed that flawed data conversions had caused these implementations to stumble. Target believed the problems other retailers faced were due to error in data conversion. To avoid this issue, Target decided to fill the Canada SAP systems with entirely new data rather than converting data from their US databases. Unfortunately for Target, this strategy did not pay off and led to many of the well-publicized failings that shuttered its Canadian stores for good.
Why was Target Canada so afraid of data conversion?
Done correctly, conversion allows for a smoother cutover between old and new systems – no telling customers they must remake their online order accounts, for example – and saves countless labor hours that would otherwise be spent populating data by hand. For many companies, especially in retail, conversion is the only sensible choice. But despite best laid plans, many implementations face uncertainty in the data conversion process. Late changes to functional requirements, large data volumes, and complicated data dependencies all present opportunities for data headaches leading up to and beyond go-live. And with the critical role data plays in modern business processes, a small conversion flaw can have a […]
A New Outlook For The Retail CMO … working title Join host Bonnie D. Graham as she invites you to take an additional coffee break July 14th 12:00pm-1:00pm EST, with game-changers for a special series on how SAP is taking its unrivaled industry expertise into the cloud, on Industry Cloud Trends with Game-Changers Radio. Joining Bonnie for this discussion, is our very own Brian Cederborg, VP of Retail & Wholesale Consulting for /N SPRO, Dan Berthiaume, Chain Store Age & Nancy Casey from SAP.
The omni-channel migration within retail has had far-reaching implications. Consumers demand to shop when, where and how they want, while expecting a consistent experience across channels. This has not only impacted sales models but marketing strategies as well.
To keep up with consumers, the retail chief marketing officer job description has changed, and will likely continue to change for another three to five years. Once known for traditional sales enablement and advertising, the CMO role now requires an intimate knowledge of multiple (and emerging) communications channels, the ability to create and target customer personas, an understanding of big data, analytics and the tools required to uncover consumer insights, and an awareness of how all these variables apply to the customer journey.
This means that CMOs are now dealing with roles and responsibilities that overlap with the chief information officer and chief technology officer, overseeing complex data and product innovation platforms to predict, understand and align with consumer behavior. To justify new strategies and tools, and hone in on the right activities that will move the needle, measurement has become an even more critical element of the CMO role.
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“Retailers that extract new and meaningful insights from their data (loyalty and/or transnational data) will be better equipped to reward and retain a more loyal shopper base.” Tools like SAP CAR and consuming applications now provide retailers with tools that can efficiently mine and present actionable information from their vast pools of data to provide consistently better offers for their target customer base.
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SAP Customer Activity Repository is a foundation that collects transactional data that was previously spread over multiple independent applications in diverse formats. The repository provides a common foundation and a harmonized multichannel transaction data model for all consuming applications.
Retailers can use SAP Customer Activity Repository to gradually transform their system landscapes from traditional database technology to the revolutionary, in-memory database technology.
SAP Customer Activity Repository includes the following features:
- POS Data Transfer and Audit (POS Data Management)
- Multichannel Sales Repository (MCSR)
- Multichannel Sales Analytics
- Inventory Visibility Analytics
- On-Shelf Availability
- Predictive capabilities, leveraging the Demand Data Foundation (DDF) and Unified Demand Forecast (UDF)
Grocery companies should consider prioritizing their mobile offerings as they shape their omni-channel strategies. Food shoppers buy products differently than apparel or hard goods shoppers. A robust mobile channel will be required to be competitive for most food retailers.
Post based on Original Article Source. When it comes to buying stuff online, most people still prefer PCs. But mobile is becoming an increasingly important sales channel for one particular retail industry above all others: Groceries.
Based on data from PriceWaterhouse Coopers charted for us by BI Intelligence, 37% of all grocery e-commerce sales in October came from purchases on a mobile device like a phone or tablet. Other retail industries, like furniture and health, are not too far behind, but BI Intelligence predicts sales of online groceries will grow at a much faster rate than sales at traditional supermarkets. Considering how the US grocery industry accounts for roughly $600 billion a year in sales, BI Intelligenceforecasts the online grocery market will grow about 21% each year for the next three years. After all, the food and beverage industry is the largest retail industry by far, and online services that can get food into your home — whether it’s fresh from the store or already prepared by a restaurant — are in high demand: Companies from GrubHub to Amazon and Uber are already launching campaigns to get in on the action.