1999 Must to generate sufficient volume to make the long tail Business be able to respond Challenges more quickly Equipment Driving the Use to changes in consumer demand economically productive for lots of players. And of Customer-Driven Business Intelligence Footwear Need a better match between Linear (Equipment) over the next decade or so, argues Elaine Pollock, products and customers Must be Equipment executive vice president at TNS Retail Forward Must able improve to respond customer more service quickly Linear (Footwear) to without changes increasing consumer payroll demand costs Footwear and lead author of the Retailing 2015 study, it’s Need a better match between Linear (Equipment) likely we will see a decline in the “mass-appeal approach” to retailing in favor of “niche merchandis- Must improve customer service products Difficult to and differentiate A from competitors customers Linear (Footwear) without Need to increasing reduce out-of-stocks payroll costs ing” and personalization. s Your VoIP Service Compare to Your Old Service Need Difficult to reduce to differentiate inventory GA panies with 100 or fewer employees “The Internet that have will adopted exert VoIP) more influence—continuing and from improve competitors turns to grow rapidly as a retail channel, but, Rapid growth Need to is reduce driving out-of-stocks us into new markets - need better store selection tools even more importantly, continuing to grow exponentially as the conduit to the vast marketplace and s Your VoIP Service Compare to Your Old Service Fragmented Need views to reduce inventory of our improve customers panies with 100 or fewer employees that have adopted VoIP) are costing us sales turns outside traditional space,” she says. Rapid growth is driving us into new markets - need better Need store to selection reduce shrink tools Along with other emerging trends, such as demographic dichotomies and household downsiz- are costing us sales 0 0.5 1 Fragmented views of our customers 84% 84% 60% ing, 64% consumers’ instantaneous access to infinite 80% 92% A Lot of Need Influence to reduce shrink No Influence choices online 84% and 92% the growing ability for consumers 8% to remix, adapt or create what they cannot find 0 0.5 1 Some Influence 84% 24% 60% will 64% begin to splinter mainstream retail into smaller niche offerings, 84% 92% 80% 92% A Lot of Influence No Influence 84% Source: Retail Systems Research 8% 8% 28% suggests Pollock, even down 16% 16% 12% 4% 4% Some Influence 8% 8% to 8% “units of one.” Constant connectivity and the 4% 4% 4% 4% 24% anywhere/anyway/anytime access to products Source: Retail Systems Research 8% 8% and 28% information 16% is leading to what PwC and TNS 16% 12% 4% 4% 8% 8% call “perfect 4% product 4% 4% access” 4% – availability of the right product, at the right place, at the right time – Opportunities Retailers See to Improve orse About the Same VoIP Better which in turn allows shoppers to buy less of “what Satisfaction Across All Channels is popular” and more of “what suits them.” tar In a global e-commerce economy, notions such Opportunities Create single Retailers brand See to Improve 87% 12% orse About the Same VoIP Better identity across all channels as “limited editions,” customization and “fast fashion” will replace “stack it high and let it fly” as the take delivery or return a item 65% 23% 12% Satisfaction Across All Channels Allow customers to purchase, tar Create across single channels brand u recommend VoIP profitability service to mantra, Pollock and her team argue. 87% 12% Allow inventory identity allocated across all from channels one ness peers? The general rule of thumb that 80 percent of sales 47% 36% 16% channel Allow customers be used to for purchase, another come from 20 percent of SKUs may no longer apply, take delivery or return a item 65% 23% 12% Improve operational across execution channels u recommend VoIP as service the other to 80 percent of units could represent an 71% 26% Allow inventory allocated across all from channels one ness peers? increasing share of sales and profits. 47% 36% 16% 100 channel to be used for another 34% 21% 39% < Offer customized and “The economics of scarcity will Employees 35% 51% 14% give way to the Improve unique operational product execution offering 71% 26% economics of abundance,” Pollock says. Explore across new all channels, Granted, online sales currently account for only (i.e. mobile phones) 26% 40% 34% 100 34% 21% 39% < Offer customized and 35% 51% 14% about 7 percent of sales among outdoor Employees stores with Consistent unique and clear product explanation offering an e-commerce-enable Web presence, according of product features and 61% 33% 6% 100 information Explore across new channels, 24% to figures from 52% > Outdoor Industry Association. But (i.e. mobile phones) 26% 40% 34% Employees Improve our promotional 53% 38% 9% there is more to it than your Web site’s level of e- Consistent and clear effectiveness explanation of product features and 61% 33% 6% commerce enablement or “online sales” 100 in the traditional 60 sense. It’s about 80 consumers’ 100 Employees Very Important Not very important information across channels 24% 52% > 20 40 expectations, and Improve our promotional 53% 38% 9% the challenges the retail industry faces in its attempt effectiveness Somewhat Important 20 2 to 3become more 4 customer-centric 5 in a world where 40 customers 60 are more 80diverse, 100 more educated, more Source: Retail Systems ResearchVery Important Not very important mmend Recommend demanding and Highly fully Recommend able to go somewhere else to Somewhat Important 2 get 3exactly what 4 they want the 5 way they want it. Consumers, therefore, says Brian Kilcourse, managing partner for Retail Systems Research, “no longer Source: Retail Systems Research tar Consider, for example, a recent Harris Poll commissioned mmend tar by Chordiant Software in which a full 95 Recommend Highly Recommend percent of consumer respondents said it was at least somewhat important that companies know “who I am, my buying history, past problems or complaints, preferences and billing records.” More than a third said knowledge of their personal history was important and more than a quarter said it was very important. see retailers’ traditional differentiators (product availability and price) as sufficient to win their loyalty.” So it’s not surprising that more than 50 percent of retailers responding to an in-store technology survey said their biggest challenge lying ahead is improving customer service while holding the line on cost, versus the 28 percent who said it was the troubling economic 1999 , Adds, Changes s, Adds, Changes 2000 2000 Management Management 2001 2001 Call Quality Call Quality 2002 2002 Reliability Reliability 2003 2003 Routing Routing 2004 2004 Features Features 2005 Capacity 2005 Capacity 2006 2006 Multi-Location Multi-Location 16 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008 Business Challenges Driving the Use of Customer-Driven Business Intelligence
CLIMASHIELD GREEN INSULATION, ECOSENSOR RECYCLED SHELL FABRIC AND COCONA LINER FABRIC FOR 95% GREEN PERFORMANCE VERDE 20: 3 lb 2 oz Photo: Camp 1, Abruzzi Ridge, K2, Pakistan (6700M) Photographer: Bruce Normand Get your own advanced degree in GREEN-metrics, and sign up to receive backcountry tips and win free Sierra Designs gear!
Change language