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Retail trends in advanced analytics

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This deck is part of the webinar that was broadcast live on Oct 20 and is available on demand at http://bit.ly/2dC3wgM

Providing a superior experience for customers that puts them in control and anticipates their needs is critical for retailers. And it’s all fueled by advanced analytics that forecast demand, optimize availability, and enable seamless, personalized experiences.

Join speaker ShiSh Shridhar, Retail Industry Solutions Director, for our upcoming webinar, Understanding advanced analytics to build a stronger retail customer experience. Learn how advanced analytics can unlock new value and give your organization a competitive edge.

During this webinar and live Q&A, we’ll cut through the hype around advanced analytics to help you learn more about:
•How you can better understand lead generation, targeting, and innovation in customer experiences with the help of advanced analytics
•The power of breaking down silos in capturing, analyzing, and executing on data-driven decisions throughout your organization
•Best practices and the tools you can use to capitalize on advanced analytics
•How other companies are using advanced analytics to optimize their operations

Published in: Retail
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Retail trends in advanced analytics

  1. 1. Listening to the voice of the customer 0 5 10 15 20 25 30 1995 1996 1997 1998 1999 2000 2001 2002 Sales Forecast in 1999 Film Cameras Digital Cameras 0 2 4 6 8 10 12 14 16 18 20 1995 1996 1997 1998 1999 2000 2001 2002 What Really Happened Film Cameras Digital Cameras
  2. 2. Retail has a multitude of devices that generate petabytes of potential insights Monitoring and mining social media data enables retailers to enhance customer insights Open data sources and internal sources enable retailers to better understand customers Democratization of data
  3. 3. Action People Automated Systems Apps Web Mobile Bots Intelligence Dashboards & Visualizations Cortana Bot Framework Cognitive Services Power BI Information Management Event Hubs Data Catalog Data Factory Machine Learning and Analytics HDInsight (Hadoop and Spark) Stream Analytics Intelligence Data Lake Analytics Machine Learning Big Data Stores SQL Data Warehouse Data Lake Store Data Sources Apps Sensors and devices Data Democratization of Tools
  4. 4. Location sales Remote sales Try on and try out products Face-to-face info In-store behavior Social connection/user reviews Product/price comparison Online history Digital transformation enables the best of online & offline
  5. 5. Technology provides solutions to existing and emerging problems VP of Stores CIO COO CMO Merchandising Director
  6. 6. Headquarters Supply chain and mobile workers Retail App Welcome valued customer! Collect data through customer opt-in to personalizethe shoppingexperience PERSONALIZATION Send real-time offers & notifications based on customer location REAL-TIME OFFERSRetail App Enjoy 20% Off Our New Line when you buy 2 items 20% OFF NEW! $ Utilize secure device- to-device payment MOBILE CHECKOUT Retail App Jacket Boots Dress $ $ $ TOTAL: $$$ WISH LIST WISH LIST Enable information-rich experiencesin store DIGITAL/PHYSICAL INTEGRATION Retail App Other colors available PURCHASE Boots $ BUY Integrate click-and-collect and customer wish lists into inventory decisions REAL-TIME INVENTORY MANAGEMENT ORDER PICKUP Give sales staff the data to delivera personalized in-store experience EMPOWERED WORKFORCE Twitter Love these shoes! #Retailer Gauge customer sentiment & trends through social media SOCIAL ENGAGEMENT EmployeeApp CLICK & COLLECT Retail App Retail App Improve operations by acting on data insights and evolving businesspractices to keep pace with rapidchange INVENTORY OPTIMIZATION Empower your field teams with mobile devicesand apps powerful enough to handle dailybusiness RETAIL EXECUTION ` Blue Green White INTERACTIVE KIOSK
  7. 7. Becoming more Competitive with Data
  8. 8. Furnishings importer delighted customers with the right offers Challenge • Give customers a better experience and selection. • Understand what customers are looking for based on online search. Strategy • Combined online and in-store transactional and behavioral data to predict what products customers would be most likely to purchase next. Results • Provided more personalized choices to customers. • Enabled targeted campaigns. • Improved inventory management. “We are continually getting better at identifying what our customer wants, using Microsoft Azure Machine Learning and resulting data insights.” — Sharon Leite, EVP Sales and Customer Experience, Pier 1 Imports
  9. 9. 11
  10. 10. Drink manufacturer optimizes operations, boosts customer satisfaction Challenge • Avert downtime and out-of-stock products • Improve operational efficiency of partners in the field • Deliver better customer service Solution • MARS DRINKS identifies the optimum time to stock and service its vending machines by using Internet of Things (IoT) technology Benefits • Improves timely product stocking and operational efficiency • Increases customer satisfaction • Drives business insights from consumer behavior data “Putting machines online, considering how a space is used, and looking at people’s beverage consumption will unlock a wealth of information that we haven’t been able to easily access before.” — Jamie Head, Chief Information Officer, MARS DRINKS
  11. 11. Technologies Size Vertical Country Partner Business need Top supermarket chain gains insight and boosts profitability with Microsoft Power BI A multibillion-dollar retailer with 230 supercenters in six states, Meijer wanted better insight into companywide performance. To improve its competitive advantage, the company is implementing Microsoft Power BI with Office 365 and SQL Server Analysis Services in a hybrid-cloud environment. Integrating with its existing data stores, the solution provides real-time access to performance information across every store and department. As a result, the company is empowering all its employees to increase profitability and enhance customer service. Business agilityobviEnceUnited StatesRetail and consumer goods Employees: 40,000 Annual Revenue: $US15.8 billion Microsoft Power BI Microsoft Office 365 Microsoft SQL Server 2016
  12. 12. Beverage company boosts business with big data analytics in the cloud Challenge • Gain new insights from sales data. • Boost profitable growth in a highly competitive market. Solution • Processed data through 200 regression models using Microsoft Azure Machine Learning. • Provided interactive analytical tools in a single Excel view. Benefits • Provided more time to focus on business strategies. • Improved ability to measure marketing successes. • Gained powerful analytical tools that are easy to expand and customize. “We can use Azure ML to generate answers for each individual area [marketing, production, logistics, and warehousing] and get combined answers for the entire company.” — Ruben Dario Torres Martinez, IT Manager, Arca Continental
  13. 13. Retail Personalization
  14. 14. 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 WeatherLocation Customer Profile Audience $50 Off Luggage BOGO on kid’s sunglassesLocal Events POS Data Digital Footprint Time of Day TRAVEL BLOGGER LAST VISIT: DEC 21 $10 Off $100 Buy One Get One Offer Bank 15% Off Shoes Summer special: BOGO kid’s sunglasses 2:30PM WORKING MOM LAST VISIT: MAR 3 Contoso Eyewear $50 off luggage for the next 2 hours! 2:30PM HIGH SCHOOLER LAST VISIT: APR 16 HIGH SCHOOLER LAST VISIT: APR 23 WELCOME Looking for a prom dress? Buy one today and get 15% off a pair of shoes!BROWSE Connect with customers at the right time, right place with the right offers • Generate relevant and targeted offers using integrated data sources • Deliver timely offers based on customer location and time of day Predict what customers want before they tell you • Anticipate customer purchases based on profiles, needs and significant events • Create natural cross-sell and upsell opportunities using predictive analytics solutions Ensure transaction continuity • Strengthen next best action engine by using outcomes of every customer decision • Improve offer uptake with better propensity algorithms • Prevent duplicate offers across channels Boost customer loyalty and marketing ROI • Keep customers engaged and delighted with personalized, event-based offers • Deliver engaging in-store experiences using digital assets to support interactions with informed sales associates Streamline operations • Become an data-driven organization • Evolve from reactive to proactive to help build, monitor, and improve your brand • Keep pace with rapid change and innovate with cloud infrastructure Sam Quinn 0 10 1 0 0 1 1 0
  15. 15. TRAVEL BLOGGER LAST VISIT: DEC 21 HIGH SCHOOLER LAST VISIT: APR 16 HIGH SCHOOLER LAST VISIT: APR 23 WELCOME Looking for a prom dress? Buy one today and get 15% off a pair of shoes!BROWSE 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 WeatherLocation Customer Profile Audience $50 Off Luggage BOGO on kid’s sunglassesLocal Events POS Data Digital Footprint Time of Day $10 Off $100 Buy One Get One Offer Bank 15% Off Shoes Summer special: BOGO kid’s sunglasses 2:30PM WORKING MOM LAST VISIT: MAR 3 Connect with customers at the right time, right place with the right offers • Generate relevant and targeted offers using integrated data sources • Deliver timely offers based on customer location and time of day Predict what customers want before they tell you • Anticipate customer purchases based on profiles, needs and significant events • Create natural cross-sell and upsell opportunities using predictive analytics solutions Ensure transaction continuity • Strengthen next best action engine by using outcomes of every customer decision • Improve offer uptake with better propensity algorithms • Prevent duplicate offers across channels Boost customer loyalty and marketing ROI • Keep customers engaged and delighted with personalized, event-based offers • Deliver engaging in-store experiences using digital assets to support interactions with informed sales associates Streamline operations • Become an data-driven organization • Evolve from reactive to proactive to help build, monitor, and improve your brand • Keep pace with rapid change and innovate with cloud infrastructure Contoso Eyewear Azure IoT Cortana Intelligence Dynamics 365 $50 off luggage for the next 2 hours! 2:30PM Azure IoT Cortana Intelligence Dynamics 365 Sam QuinnDynamics 365 Cortana Azure IoT Windows devices 1 0 10 0 0 1 1 0 Azure IoT Suite Cortana Intelligence Dynamics 365
  16. 16. TRAVEL BLOGGER LAST VISIT: DEC 21 HIGH SCHOOLER LAST VISIT: APR 16 HIGH SCHOOLER LAST VISIT: APR 23 WELCOME Still looking for a prom dress? Talk to an associate to see the items from your wish list!BROWSE 0 0 1 1 0 0 10 1 1 01 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 11 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 11 11 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 0 0 1 1 0 0 10 1 1 01 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 11 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 11 1 1 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 Weather Auto-generated Offer Bank Local Events Time of Day Recognition Software Customer Profile POS Data Digital Footprint Audience Wearables Wish list Hiking boots sale Grab and go More Frequent visits Increased Sales Higher Foot TrafficLocation 0 10 0 0 1 1 0 1 WORKING MOM LAST VISIT: MAR 3 Contoso Eyewear Connect with customers at the right time, right place with the right offers • Generate relevant and targeted offers using integrated data sources • Deliver timely offers based on customer location and time of day Predict what customers want before they tell you • Anticipate customer purchases based on profiles, needs and significant events • Create natural cross-sell and upsell opportunities using predictive analytics solutions Ensure transaction continuity • Strengthen next best action engine by using outcomes of every customer decision • Improve offer uptake with better propensity algorithms • Prevent duplicate offers across channels Boost customer loyalty and profitability • Keep customers engaged and delighted with personalized, event-based offers • Deliver engaging in-store experiences using digital assets to support interactions with informed sales associates Streamline operations • Become an data-driven organization • Evolve from reactive to proactive to help build, monitor, and improve your brand • Keep pace with rapid change and innovate with cloud infrastructure Your order is ready! Pay in-app to grab and go. Sam Quinn 1
  17. 17. TRAVEL BLOGGER LAST VISIT: DEC 21 HIGH SCHOOLER LAST VISIT: APR 16 HIGH SCHOOLER LAST VISIT: APR 23 WELCOME Still looking for a prom dress? Talk to an associate to see the items from your wish list!BROWSE 0 0 1 1 0 0 10 1 1 01 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 11 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 11 11 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 0 0 1 1 0 0 10 1 1 01 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 0 1 1 0 11 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 11 1 1 1 0 0 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 1 Weather Auto-generated Offer Bank Local Events Time of Day Recognition Software Customer Profile POS Data Digital Footprint Audience Wearables Wish list Hiking boots sale Grab and go More Frequent visits Increased Sales Higher Foot TrafficLocation 0 10 0 0 1 1 0 1 WORKING MOM LAST VISIT: MAR 3 Contoso Eyewear Connect with customers at the right time, right place with the right offers • Generate relevant and targeted offers using integrated data sources • Deliver timely offers based on customer location and time of day Predict what customers want before they tell you • Anticipate customer purchases based on profiles, needs and significant events • Create natural cross-sell and upsell opportunities using predictive analytics solutions Ensure transaction continuity • Strengthen next best action engine by using outcomes of every customer decision • Improve offer uptake with better propensity algorithms • Prevent duplicate offers across channels Boost customer loyalty and profitability • Keep customers engaged and delighted with personalized, event-based offers • Deliver engaging in-store experiences using digital assets to support interactions with informed sales associates Streamline operations • Become an data-driven organization • Evolve from reactive to proactive to help build, monitor, and improve your brand • Keep pace with rapid change and innovate with cloud infrastructure Your order is ready! Pay in-app to grab and go. Azure IoT Suite Cortana Intelligence Dynamics 365 Azure IoT Suite Cortana Intelligence Dynamics 365 Azure IoT Cortana Dynamics 365 Dynamics 365 Cortana Azure IoT Windows devices 1
  18. 18. Foodservice retailer increased revenue with a cloud-based mobile solution Challenge • Inability to identify or connect with customers. • Lack measures of customer loyalty. • Untargeted promotions erode revenue and profit. Solution • Added an analysis and insights system based on Microsoft Azure. • Gathered data on customers’ behaviors and preferences to target offers. Benefits • Expanded reach to millions of customers in five countries. • Enabled personal, relevant, contextual content that adds value for the users. • Improved promotion efficacy. “The company saw a huge increase in customers, and those customers spent 47 percent more. It was all driven at the device level.” — Scott Bradley, CEO and founder of Plexure (Vmob)
  19. 19. Next steps  Learn more about our industry solutions at microsoft.com/retail

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