Innovation In 2016: Driving The Customer Experience
By Erin Harris, Editor-In-Chief, Cell & Gene
Follow Me On Twitter @ErinHarris_1
January 2016 Innovative Retail Technologies
As 2016 gets underway, retailers must be well past the point of retail-as-usual. We’re in an industry in transition, and, as such, I’d like to share some transformative trends that innovators will leverage to shape customer engagement in 2016.
Predictive Analytics And Machine Learning
Predictive analytics aren’t new — remember a few years back when Target used predictive analytics to promote pregnancy products to a young teenage woman whose parents didn’t know she was pregnant? Predictive data — and the means retailers use to analyze it — has matured, and retailers can rely on the analytics to avoid markdowns and out-of-stocks as well as optimize prices and purchase quantities.
But predicting shopper behavior can get very overwhelming very fast given the intricate mathematical and scientific approaches (i.e., big science) necessary to analyze Big Data. This year, retailers must improve their business intelligence capabilities and embrace predictive analytics to create a differentiated customer experience. An enterprisewide information system that analyzes data to uncover and predict trends can help retailers make quicker and more informed strategic decisions about everything from improving in-stock positions to customer-centric promotions.
That’s where machine learning comes in. Machine learning technology intelligently tracks and processes massive amounts of data and automates the analysis all the way through the supply chain to help retailers turn insight into results. Check out the article on page 21 that takes a deep dive into this very topic.
Location, Location, Location Data
Your customers’ locations change throughout the day, and using their locations to deliver contextually-relevant, personalized information that matters to them can build loyalty and brand awareness. Put simply, location data in its various forms should help streamline the customer experience. But from the get-go, retailers must develop meaningful mobile strategies that connect with overall marketing plans.
Indeed, The Location Based Marketing Association (LBMA)’s Founder and President, Asif Khan, penned an astute article found on page 30 that covers the LBMA’s 3-Layer Location Cake concept. In his article, Khan details how location data is used to “close the deal” using NFC (near field communication), payments, and loyalty; increase basket size with beacons, Wi-Fi, and magnetics; and drive traffic with push messaging and social location.
RFID
RFID is by no means an emerging retail technology, but the new and different ways smart retailers are deploying it illustrates its power and versatility inside the retail enterprise. Consider that RFID is now used to help retailers maximize the fitting room experience. What was once considered “blue sky” technology has become real and attainable. Case in point: Oak Labs’ Oak Fitting Room at Polo Ralph Lauren in New York City implemented interactive fitting room mirrors that integrate with RFID tags on apparel to streamline the fitting room process in sleek, engaging ways that ultimately increase conversion. And RFID continues to perform its duties on the loss prevention front. Joint EAS/RFID technologies not only combat shrink but also track inventory.
The Internet Of Things (IoT)
IoT is driving retail innovation by bringing every object and every consumer into the digital realm. IoT is no longer an esoteric, borderline sci-fi concept but rather a reality in the retail industry. Still in the infancy stages of adoption, IoT stymies most CIOs because they are already tasked with supporting complex IT infrastructures without having to accommodate new classes of devices. Yet Gartner predicts that 2016 will see 6.4 billion devices connected to the Internet — and 5.5 million new “things” will join them each day. As 2016 unfolds, increase your awareness of IoT and construct strategies to accommodate the connected consumer. Consider that cloud-based applications, mobile strategies, and a seamless omni-channel presence render valuable customer data that will serve as the foundation for a future IoT strategy.
There’s plenty to work on in 2016. Here’s to a leap year filled with clarity and innovation — and 366 more opportunities to improve the customer experience and boost margins.