Retail TouchPoints – The retail cloud business segment is expected to reach more than $28 billion by 2021, growing at a compound annual growth rate (CAGR) of 20.9%, according to research from MarketsandMarkets. As many as 70% of retailers say cloud will be a major factor in their business by 2020, according to a report from The Economist Intelligence Unit. But as more retailers jump aboard the cloud bandwagon, they should strive to gain a competitive edge with the technology that goes beyond the basic benefits of a cloud implementation.
This Retail TouchPoints Special Report will spotlight innovative strategies facilitated by cloud solutions that can help retailers achieve new business goals with speed and efficiency.
Many retailers already are leveraging cloud servers for business basics like POS processes, order management and fulfillment and communications across the enterprise. More advanced cloud offerings can help them:
- Personalize offers even before the purchase journey begins;
- Improve delivery and quality of product content offerings, especially as the number of SKUs they carry increases;
- Unlock and unify customer data from disparate sources; and
- Assist with in-store, mobile-powered guided selling.
ELIMINATING THE ‘SAFETY STOCK’ PROBLEM
Despite the introduction of cloud services, many merchants still haven’t taken the proper steps to give shoppers true “real-time” access to their inventory across channels. Many retailers still struggle with “safety stock” — additional quantities of an item held in inventory to reduce the risk that the item will be out of stock, according to Ken Morris, Principal of BRP.
“Let’s say I’m selling Tag Heuer watches — I must have a safety stock of two to account for this lag,”
said Morris. “If I have two or less items in a store, I have to tell corporate I have no items, because I have to account for the lag in updates to inventories between all the distribution centers and all of the stores. Although I may have two each in every store of 1,000 stores, it’s going to read as zero to someone trying to buy online and pick up in store.”
With a cloud service that incorporates data from all stores and distribution centers, retailers would be able to generate more accurate real-time stock numbers throughout the enterprise, without worrying about products going out-of-stock. Additionally, associates would be able to access this information quicker within the store, so they could assist consumers with real-time inventory data.
MOBILE APPS GUIDE IN-STORE SALES VIA SHOPPER DATA
Cloud platforms also can help retailers match products within the store to shoppers via guided selling. Morris described how an app recently designed for a BRP retail client offers guided selling in-store based on prior shopper behavior.
“Whatever they visited or put on their wish list or basket as they walked into the store, the app would guide them around to look at what they saw online and direct them with a Google map around the store,” Morris said. “This makes retail experiences way more relevant than most are today, especially because stores are changing. Having that data while the customer is in the store is key. To be able to affect the sale before checkout is what Amazon does every day online. They know who I am, they know what I buy, they know what I’m likely to buy and they help me through that sale.”