Tag: Retail analytics

Should Retailers Bet on Customer Data?

Posted on by Omprasad Devadiga

The Power of Data in Modern Retail

Retailers today recognise the value of customer data in elevating service standards. By collecting and analysing vast amounts of consumer information, businesses can tailor their offerings to individual preferences, driving sales and loyalty. However, this data-driven approach comes with substantial risks.

As retailers accumulate more data, they face increasing security challenges. The widespread adoption of remote work and the expansion of databases have created vulnerabilities that cybercriminals exploit. A data breach can tarnish a company’s reputation and expose sensitive customer information, leading to severe financial and legal consequences.

What are the Benefits of Data-Driven Retail?

  • Personalised Experiences: Tailored product recommendations, targeted marketing campaigns, and personalised customer service.
  • Informed Decision-Making: Data-driven insights to optimise inventory management, pricing strategies, and supply chain operations.
  • Enhanced Customer Loyalty: Building stronger relationships through personalised experiences and timely communication.

Like two sides of a coin, data-driven retail has risks…

  • Cybersecurity Threats: Data breaches, ransomware attacks, and other cyber threats can compromise sensitive information.
  • Privacy Concerns: Misuse of customer data can erode trust and damage brand reputation.
  • Regulatory Compliance: Adhering to data privacy regulations like GDPR and CCPA is complex and costly.

Why Does Modern Retail Love Data?

In today’s retail landscape, data has emerged as a strategic asset. Leading retailers recognise the power of customer data to enhance service, personalise experiences, and drive sales. By collecting and analysing vast amounts of consumer information, these companies can tailor their offerings to individual preferences, boosting loyalty and increasing market share.

The scale of data collection in the retail industry is staggering. Beyond traditional retail, companies are leveraging data to generate additional revenue streams.

As the retail industry evolves, data analytics is becoming a critical competency. The global big data analytics market in retail is projected to quadruple between 2019 and 2027, underscoring the growing importance of data-driven strategies.

The Fine Line Between Personalisation and Privacy Intrusion

While businesses are increasingly driven by the potential to increase revenue through data-driven strategies, customer expectations are also evolving. Consumers now demand personalised experiences, with 62% prioritising personalised retail experiences from brands. This demand is particularly strong among high-income individuals, which rises to nearly 81%.

However, this desire for personalisation is intertwined with growing privacy concerns. A significant number of consumers (58%) feel more positive about companies that recognise them and their past behavior, even though many perceive data collection as intrusive. This paradox highlights the delicate balance that businesses must strike between leveraging data for personalisation and safeguarding customer privacy.

Before the 2020 holiday season, 66% of US consumers expressed concerns about potential data breaches, and 78% indicated a preference to avoid retailers that had experienced such incidents. Additionally, nearly half of consumers believe that retailers should prioritise anonymity. This heightened awareness of privacy risks can hinder the adoption of new shopping behaviors, as evidenced by the one-third of respondents who avoid voice-enabled devices due to security concerns.

How Can Customer Data Compromise Payment Security?

In today’s digital age, customer data has become a valuable asset for retailers. It enables personalised experiences, targeted marketing, and data-driven decision-making. However, the collection and storage of sensitive customer information, particularly payment card data, presents significant risks. Cyberattacks, data breaches, and identity theft are prevalent threats that can have severe consequences for both businesses and consumers

To mitigate these risks, retailers must implement robust security measures to protect customer data, especially payment card information. This includes:

  • Encrypting sensitive data
  • Using strong passwords
  • Regularly updating security software

Additionally, businesses should be aware of and comply with data privacy regulations such as GDPR and CCPA, which impose stringent requirements on how personal data, including payment card data, is collected, processed, and stored.

ETP: Your Partner for Enhanced Data Security

ETP’s commitment to data security is evident in the recent PCI SSF certification of its V5.5 R10 Omni-Channel POS solution. This certification ensures that ETP’s solution meets the highest industry standards for protecting payment card data. By choosing ETP, retailers can be confident that their customer data is safeguarded, reducing the risk of data breaches and financial loss.

Furthermore, ETP’s solution offers a range of features to enhance security, including:

  • Secure authentication
  • Remote access controls
  • Comprehensive logging

These measures help to prevent unauthorised access and detect and respond to potential threats.

By partnering with ETP, retailers can focus on growing their business while knowing that their customer data is in safe hands.

Fashionably Loyal: Win Customers Over in a Cutthroat Retail World

Posted on by Omprasad Devadiga

The fashion retail landscape is undergoing a seismic shift. Gone are the days of passive consumers simply browsing racks and accepting whatever a brand offers. Today’s savvy shoppers are bombarded with choices, empowered by technology, and fiercely loyal to brands that prioritize them. This “Fashionably Loyal” article explores the transformative customer landscape, the high cost of customer churn, and the power of a customer-centric approach in this competitive environment. We’ll then delve into actionable strategies for creating exceptional customer experiences, building long-lasting relationships, and ultimately, winning hearts (and wallets) in the cutthroat world of fashion retail.

1. The Modern Transformative Shift in the Consumer Landscape

The rise of e-commerce, social media, and mobile technology has fundamentally reshaped how consumers discover, research, and purchase fashion items. Today’s shoppers are digitally-savvy researchers, often armed with smartphones and a wealth of information at their fingertips. They expect a seamless omnichannel experience, transitioning effortlessly between online and offline touchpoints (think browsing online reviews before stepping into a physical store). Social media influencers heavily influence purchase decisions, and customer expectations for personalized recommendations and loyalty programs have skyrocketed.

This shift in consumer behaviour demands a response from fashion retailers. Those clinging to traditional, siloed approaches risk losing ground in the ever-evolving landscape. ETP Group’s Unified Commerce Solutions bridge the gap between online and offline operations, providing retailers with a single, holistic view of their customer data. This empowers retailers to deliver consistent messaging and a seamless shopping journey across all touchpoints.

2. The High Cost of Customer Churn

Losing a customer isn’t just a missed sale; it’s a missed opportunity for future purchases, brand advocacy, and referrals. Studies by Bain & Company show that a mere 5% improvement in customer retention can lead to a profit increase of 75%. The cost of acquiring new customers can be five times greater than retaining existing ones.

Customer churn is a serious threat to a fashion retailer’s bottom line. It’s crucial to understand why customers leave and implement strategies to win them back. ETP Group’s Omni-channel Retail Solutions offer powerful analytics tools that help retailers gain insights into customer behaviour and identify potential churn factors. By proactively addressing customer concerns and creating personalized experiences, retailers can turn disengaged shoppers into loyal brand advocates.

3. Customer-centricity, a Competitive Advantage

In an environment of fierce competition, customer-centricity is no longer a luxury; it’s a necessity. Shifting the focus from selling products to building long-lasting customer relationships unlocks a multitude of benefits:

  • Customer Loyalty: By prioritizing customer needs and exceeding expectations, retailers foster trust and loyalty. Loyal customers are more likely to make repeat purchases, even at premium prices.
  • Referrals: Loyal customers become brand ambassadors, enthusiastically recommending the brand to friends and family. This organic word-of-mouth marketing is invaluable and cost-effective.
  • Resilience to Market Fluctuations: Loyal customers are less likely to be swayed by competitors’ promotions. They understand and appreciate the value proposition of their preferred brand, providing a buffer during economic downturns.

Building a customer-centric culture requires a strategic shift in thinking. It involves understanding your customers, their needs, and their preferences. It’s about creating personalized experiences that make them feel valued and appreciated.

4. Strategies for Delivering Exceptional Customer Experiences

Fashion retail success hinges on delivering exceptional customer experiences across all touchpoints. Here are a few key strategies:

  • Personalized greetings and recommendations: Train staff to greet customers by name and offer personalized recommendations based on past purchases and browsing history.
  • Streamlined checkout processes: Implement frictionless checkout options like self-service kiosks and mobile wallets to minimize wait times.
  • Engaging online experiences: Create a user-friendly website with high-quality product images, detailed descriptions, and easy-to-use navigation.
  • Omnichannel rewards programs: Offer a unified rewards program that allows customers to earn and redeem points across all channels, online and offline. ETP Group’s solutions facilitate the seamless integration of such programs, fostering a more rewarding customer journey.

By focusing on these strategies, fashion retailers can create an exceptional customer experience that fosters loyalty and drives revenue growth.

Stay tuned for Part 2 of “Fashionably Loyal,” where we’ll delve into the essential building blocks of customer-centricity – comprehensive customer understanding, data-driven personalization, and seamless omnichannel experiences.

Why do you need a franchise management software?

Posted on by Omprasad Devadiga

etp-blog-franchise management software

To begin with, franchising is a retail business model that involves two parties – the franchiser and franchisee. The franchiser permits the franchisee to use its brand name and business model, based on certain terms, conditions and clauses involving revenue that are agreed upon. Franchising is a very popular business model especially in regions where foreign brands use franchisees to expand their presence in the market.

Since this business model involves 2 parties, complications and issues are bound to arise due to the involvement of separate entities collaborating over a business. Further, since the franchiser is the owner of the business and is allowing the usage of his brand and products, he would definitely want to have an overview and manage the franchisees. This could be tricky if not tackled the right way. Enter – franchise management software.

Let’s dive deeper into how can a franchise management software fit into the franchise model of a retail business.

A franchise management software can be perceived to be a platform that facilitates collaboration between franchisers and franchisees, as well as assists in increasing engagement between the two parties regarding various aspects of the business such as marketing, sales, branding, CRM, inventory management, reporting, operations, and so on. The software essentially establishes business rules and processes in mutual agreement between the two parties. Using these processes and business rules as a base, franchisers can look to grow their business further by hiring more franchisees. Moreover, the software with preset rules and processes allows the franchiser to monitor performance based on real-time analytics, and streamlining operations as well as exercise control over the franchisees, and also capture and store market data and trends for further analysis and bench-marking. The franchisees on the other hand can use the software to automate their business operations and also keep track of their business performance and provide necessary reports to the franchiser. Also, the franchise management software can help to connect multiple franchise sites through integrated communications.

Here are some aspects where a franchise management software can benefit your retail business:

Inventory and supply chain management:

A good franchise management software generally enables access to inventory data to help you in forecasting the inventory levels. Purchase orders can then be placed to replenish stock. The software could help the business keep track of the supply chain process from order placement to stock replenishment, allowing to foresee and mitigate risks/issues that can arise in the process.

Customer management:

Customer loyalty and retention is extremely important for every retail business and it is dependent on the quality of customer service in your franchisee outlets. A solid franchise management software aids customer relationship management by providing capabilities such as customer registration, loyalty programs, customer information look-up, inventory look-up, customer feedback, and so on that enable you to attract and retain customers in the long run.

Process management:

A good franchise management software helps in the inspection of your franchise outlets following certain industry audit standards and checklists. By having capabilities of storing historical information of your outlets, you can use the information as a benchmark for performance tracking and inspection. Moreover, tracking sales data, employee data and performance, inventory data, and other important information, you can map out any discrepancies as well as keep a tight control on the processes and operations.

Also Read: Top 5 Questions To Ask Before Investing In Retail Pos Technology

Top 5 Retail Trends

Posted on by admin

The retail industry is continuously evolving with increasing complexity and momentum. Fluctuating demographics, domestic downscaling, savvier consumers, multiple information and business channels, and trends require nimble, flexible and intuitive models and processes to manage customer expectations, stay relevant and increase profitability. Retailing is rapidly and perhaps irreversibly becoming an industry that must tailor its offerings to its customers, in order to win them over and foster greater loyalty. Well, the future is here and here are its most important retail trends:

Top 5 Retail Trends in 2015 | Retail Software | etpgroup.com

Personalized In-store Experience: A recent Infosys survey reported that 78 percent of consumers are more likely to be a repeat customer if a retailer provides them with targeted, personalized offers. The burgeoning competition and the homogenous products and service market space has resulted in customers cutting ties and ending long-standing loyalty, post even a single unsatisfactory shopping experience. Delivering the right store experience has become and will continue to be vital in order to differentiate one’s brand from the competition and also increase repeat sales and overall productivity. Falling short of customer expectation in this regard leads to negative word-of-mouth, which is often more freely dispersed amongst family, friends and co-workers.

Right Business Intelligence: The retail analytics market is estimated to grow from $ 1.88 billion in 2014 to $4.4 billion by 2019. Business Intelligence technology helps retailers effectively reach consumers, reduce operational time and costs and allocate their resources more efficiently. Most importantly, it lends the marketing and operational ingenuity to make better strategic decisions, accurate targets and devise fail-safes. Gartner recently revealed that “Leading business intelligence (BI) vendors will shift the emphasis of their new product investment from IT-authored production reports to business-user-driven data discovery and analysis tools.” This trend shall gain more impetus through increasing adoption of Cloud Technology, Mobile and Big Data applications for analytics which contribute to the mass implementation of IT in retail.

Chuck the “Hard-Sell”: In the year 2015, brands will employ processes and people that impart likability and approachability to induce a solution-based dialogue and build relationships. The cool clinical expertise approach is swapped with regular staff training to arm all customer-facing employees with the right tools to be more perceptive and engaging. Business is done between people, not companies – customers first learn to trust and be comfortable with the person representing the brand or the company. This is followed by building enough customer inclination to venture understanding brand offerings, consume products and services and become loyalists.

Omni Channel Shopping: Consumers expect a consistent and seamless shopping experience, regardless of the channel they choose to engage, at any given time. Forrester Research expects $ 1.8 trillion in retail sales via online and web-influenced channels in the year 2017. The line between physical and digital touch-points will continue to blur. Today, the customer’s retail journey is non-stop – dynamic, accessible, and constant. According to Teradata, by 2015, a company’s digital strategy will influence at least 80% of a consumer’s discretionary spending. While retail stores remain relevant and the nerve-center for the industry, accurate omni-channel strategies will help retailers increase volume of sales and revenue via other channels.

Emerging Markets: Retail organizations are beginning to understand the brimming potential of markets within Brazil, China and India. To give an example of how these hyper-growth markets are geared to change the world’s retail landscape – By year 2020, 53 percent of the world’s retail consumption will be from Asia alone. Companies from the emerging world are increasingly becoming major players in global markets—the BRICs now account for 75 of the Fortune 500, compared with just 29 in 2005. Retailers will expand operations to these countries, exploring unique opportunities of each market.

The retail industry is being beckoned by booming opportunities across continents, despite cultural disparities and local limitations. Each retail enterprise needs to set their own course and business trajectory which will determine eventual success. From the above trends, it is fairly easy to establish the large role technology continues to play in our lives. Retailers who adopt, build and integrate stable, scalable IT in their business shall remain resourceful and ready to unlock the market potential.