Top 10 Ways Connected Retailers Can See Black During The 2013 Holiday Season And Beyond

Cisco has always been keenly interested in the impact of the Internet on society. We have watched through the years as the Internet has transformed the retail industry, not only with e-Commerce, but in shopper expectations for convenience, product availability and service. 

We’re entering a new era of technology-shaped retail; one driven by the connection of products, people and processes to the Internet. Actions of all types — product movement through the demand chain, shopper dwell times in the aisle, associate interactions — can now be turned into data, and that data into insights. Today’s leading retailers are data mavens — and are able to know sooner, decide smarter and act faster than their competitors. The result? An advantage that translates into growth on top and bottom lines.

With the holidays quickly approaching, retailers can significantly benefit by better connecting their physical stores, web sites, mobile devices, employees and merchandise. According to our Internet of Everything (IoE) research, in the year 2013, there is $1.2 trillion of value at stake for private firms across 18 different industries that adopt IoE models. And the retail industry has the biggest opportunity to realize value from implementing technologies that can identify and connect dark assets, unlock valuable data and turn insight into action. In fact, Cisco predicts that retailers that become more connected may achieve 12% higher profit gains by 2017.

Here are the top 10 tips for connected retailers to see the most value in the IoE concept as we head into the holiday shopping season and beyond.

1. Tap Into Dark Data Assets In-Store: By connecting previously-unused (or “dark”) data assets from sources such as video surveillance cameras, social media, the Internet, and customers’ mobile signals to traditional retail data sets (such as transaction histories), retailers can begin to predict new trends and empower employees to improve profitability. For example, real-time analysis of shopper traffic in the store can help retailers better position their employees and deliver faster customer service.
    
2. Trade Value For Information: Most shoppers are willing to share personal information in exchange for better, more personal service. Almost half (49%) of online shoppers are comfortable with retailers collecting personal information in exchange for more personalized recommendations and customer service.
    
3. Offer More Personalized Service:When customers freely share data about personal interests and needs with trusted brands, retailers can use the data to generate recommendations both online and in the physical store — leading to larger baskets and more revenue overall. In fact, two-thirds (65%) of global consumers are comfortable receiving retail advice based on their location through their mobile device.
    
4. Identify Events That Impact Customer Demand: Predicting what customers want and when they want it is becoming easier through real-time pairing of data. One example: pairing weather forecasts with real-time promotion and in-store merchandising. Is it a humid, wet day? There will be shopper interest, for instance, in certain types of hair care products.
    
5. Bring Wish Lists Online and In-store: Encourage customers to share their wish lists with Santa, friends and family through your brand — and make those lists easily accessible in the store. Think not only of kiosks, but of smartphone use (either through your store app, or accessed through the browser).  
    
6. Offer On-Demand Expert Advice: Most shoppers today regularly research products online before walking into the store. And whether online or in the store, they’re eager to speak with bonafide experts — the individuals who not only know what’s new, but how to use it, wear it and put it together. Brands that offer easy, one-click access to experts online via instant messaging or video chat, in the store through mobile phones or interactive screens can provide enhanced services to draw in customers and win loyalty.
    
7. Drive Higher Levels Of Stock Availability: In-stock performance is one of the four most critical indicators to overall store performance. With automated, intelligent stock management and shelf sensing, stores can keep track of merchandise and order stock when inventory falls below a certain level — all without employee intervention.
    
8. Make Your Supply Chain Transparent: Leading retailers are now implementing systems that enable full visibility to product volume, location and condition from one end of the supply chain to the other. This includes tracking materials from the source, to the factory, and through customs all the way to warehouse, delivery truck and store.
    
9. Ease The Check-Out Process: It’s no surprise — stressed consumers increasingly prefer the calm of at-home Internet shopping instead of trying to make it to a store. Check-out waiting is a big part of in-store frustration. Leading retailers are looking to implement more options across more channels, include self service check-out, mobile payments or in-store/online shopping that delivers items to the home. In fact, according to a Cisco Customer Experience Report, 52% of consumers prefer self-service stations for faster check-out lines.
    
10. Maximize Your Manpower Through Connectivity: Employees can access and share best practices, operational alerts and develop smart training and development tools from their mobile device, while giving managers new insights into efficient ways to allocate sales personnel to drive profits. In addition, employees can provide real-time feedback on product and promotion performance, leading to improved advertising, marketing and additional revenue. In fact, according to a Cisco Customer Experience Report, two thirds (65%) of global consumers are comfortable receiving retail advice based on their location through their mobile device.

    There are constantly new trends emerging and new sources of data to track, but the retailers that can identify and react to them first will have an advantage in the marketplace. Some of these tips may be things you are already implementing, some may seem futuristic in nature, but they are all things that retailers need to be aware of to remain relevant to shoppers. This advice becomes even more timely as the holiday season approaches and retailers look to push their profits into the black.