2019 Special Report – Security

Only 38% of Retailers have Implemented a Single Token Solution Across the Enterprise

Retailers must continuously reexamine their policies surrounding customer payment and personal data to ensure the security of their customers’ information. Each day, new dangers emerge and enhanced security measures are necessary to adequately defend against these malicious attacks. A single security breach is enough to deal a crippling blow to many companies.

Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data by allowing retailers to remove sensitive information from the network by substituting payment card data with a token which is used as an identifier but has no exploitable value or meaning. Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels. What began as a solution to remove payment card data from a retailer’s environment has found additional value in substituting Personally Identifiable Information (PII) to help drive omni-channel use cases.

BRP’s SPECIAL REPORT: Security is based on findings from the BRP Consumer Study and the 2019 POS/Customer Engagement Survey and offers insights into how retailers are progressing with their security efforts to protect consumers’ payment and personal data.

The SPECIAL REPORT: Security highlights:

PAYMENT SECURITY:

  • Customer expectations: 33% are likely to allow retailers to save credit card details if it eases the checkout process
  • Retailer capabilities: 61% have implemented end-to-end encryption to offer customers greater security of their personal and payment data

PERSONAL DATA:

  • Customer expectations: 50% are likely to allow retailers to save personal details if it eases the checkout process and allows for more personalized offers
  • Retailer capabilities: 38% have implemented a single token solution across the enterprise to offer customers greater security of their personal and payment data

MOBILE WALLET/PAYMENTS:

  • Customer expectations: 38% are likely to choose a store if it offers mobile wallet/payments
  • Retailer capabilities: 59% offer mobile payment acceptance

2019 Special Report – Real-time Retail

56% of Consumers are Likely to Choose a Retailer who Offers a Shared Cart Across Channels

According to BRP’s SPECIAL REPORT: Real-Time Retail, customers want access to a single cart to shop across channels and be able to reach their cart via phone, computer, or even in the store – they want to “start anywhere and finish anywhere.” In BRP’s Consumer Study, 56% indicated that they were likely to shop at a retailer that allowed them to have a shared cart across channels instead of a retailer that does not offer this service.

The importance of real-time visibility and access to product and customer information across channels has grown significantly over the past few years as consumers’ expectations continue to rise. Today’s retail model has to venture beyond omni-channel by breaking down the walls between internal channel silos and leveraging a common commerce platform with a single order management system to deliver a holistic, real-time, personal, seamless experience.

“Consumers expect a seamless experience in the store, on the Web and via their mobile device – which makes ‘real-time retail’ the new industry imperative,” said Ken Morris, principal, BRP. “In our experience, many retailers can check inventory in real-time but the inventory data they are actually accessing is from yesterday as the data is not really updated in real-time – it is faux real-time retail. As retailers move to unified commerce, full access to enterprise-wide data in real-time will become more common as it is a necessity to survive.”

The SPECIAL REPORT: Real-Time Retail highlights:

SEAMLESS EXPERIENCE:

  • Customer expectations: 56% are likely to shop at a retailer that offers a shared cart across channels
  • Retailer capabilities: 7% offer the ability for customers to have a shared cart across channels

PERSONALIZATION:

  • Customer expectations: 87% want a personalized and consistent experience across all shopping channels
  • Retailer capabilities: 53% indicate that personalization of the customer experience is a top priority

2019 Special Report – In-Store Mobility

63% of Consumers use their Phone for Product Research, Pricing and Availability while they are in a Store, According to New BRP Report

There is no denying the power of mobile technology as a disruptor in the retail industry. Retailers realize that mobile devices are ubiquitous and recognize that a mobile device in the hands of the customer and associate holds tremendous opportunities to enhance the customer experience in the store. According to BRP’s SPECIAL REPORT: In-Store Mobility, 85% of consumers have purchased a product via a mobile app, and 33% frequently purchase via their mobile device. Mobile shopping (browsing or buying) will continue to grow as 41% of consumers in the BRP Consumer Study indicate they plan to increase their shopping frequency on their phone or tablet in the next 24 months.

As customers become more comfortable and proficient with utilizing mobile technology and researching information on their own, retailers need to offer expanded customer-facing mobile services to enhance the shopping experience. The proliferation of tablets and mobile phones provides new opportunities for retailers to enhance customer service by offering store associates tools to ‘keep up’ with the abundance of information that customers have at their fingertips. Associates can use mobile devices to answer customer questions, provide personalized recommendations, locate products and complete the transaction anywhere in the store.

BRP’s SPECIAL REPORT: In-Store Mobility is based on findings from the BRP Consumer Study and the 2019 POS/Customer Engagement Survey and offers insights into how mobile devices are changing the consumer shopping journey.

The SPECIAL REPORT: In-Store Mobility highlights:

IN-STORE RESEARCH

  • Customer expectations: 63% of consumers utilize their mobile phone while in a store to compare prices, look for offers/coupons, check inventory, etc.
  • Retailer capabilities: 49% of retailers indicate that the customer mobile experience is one of their top customer engagement priorities

COUPONS AND PROMOTIONS

  • Customer expectations: 67% of consumers indicate that mobile coupons and promotions are an important factor in determining at which store they shop
  • Retailer capabilities: 57% of retailers offer mobile coupons and promotions to their customers in the store

MOBILE POINT OF SALE (POS)

  • Customer expectations: 40% of consumers are likely to shop at a store offering mobile POS
  • Retailer capabilities: 66% of retailers currently offer mobile POS in their stores

2019 Special Report – Customer Loyalty

63% of Consumers are Likely to Stop Shopping a Brand if they have an Unsatisfactory Experience

Today’s consumers connect with brands across multiple channels, which complicates the process of recognizing, servicing, and rewarding loyal customers. According to BRP’s SPECIAL REPORT: Keeping Loyal Customers Happy, customers expect engaging and relevant interactions and conversations across all channels and they don’t have any tolerance for unsatisfactory shopping experiences. Customers want a personalized experience and if they are treated well, they will reward the retailer through additional purchases and brand loyalty.

Engaging the customer through personalized and relevant experiences is the key to attracting and keeping your customers happy and continuing to shop your brand. Retailers that identify customers when they enter the store and equip their associates with the proper mobile tools can personalize the shopping experience based on customer preferences, purchase history, what’s in their closet, online browsing history, time of day, weather and their physical location – all based on real-time information and personalized to create a bond with these valuable customers. Keeping loyal customers happy is critical as it only takes one unsatisfactory shopping experience for 63% of consumers to stop shopping your brand.

The SPECIAL REPORT: Keeping Loyal Customers Happy highlights:

CUSTOMER IDENTIFICATION

  • Customer expectations: 64% are comfortable with retailers identifying them via their mobile phone when they enter a store, as long as it means they are offered a personalized experience
  • Retailer capabilities: 63% are unable to identify their customers prior to checkout and 20% can’t identify them until after checkout or not at all

CUSTOMER IDENTIFICATION INCENTIVES

  • Customer expectations: 26% want credit or discounts towards future purchases as an incentive to allow retailers to identify them when they walk in the store
  • Retailer capabilities: 13% offer credit or discounts towards future purchases as an incentive to customers

2019 Special Report – Personalization

79% of Consumers Want a Personalized In-store Experience

According to BRP’s SPECIAL REPORT: Personalization, today’s online shoppers are accustomed to features such as product reviews, expansive merchandise choices, one-click transaction processing and personalized recommendations. These expectations don’t dissipate when the customer walks into a physical store. In fact, customer expectations are likely magnified across all channels because most consumers shop more than one channel as part of their shopping journey and expect the same benefits across channels.

In the store, sales associates are an integral part of the necessary personalization, offering relevant recommendations and offerings. According to BRP’s Consumer Study, 79% of the customers indicated personalized service from a sales associate was an important factor in determining at which store they choose to shop.

In today’s crowded and highly competitive market, personalization is a critical component for optimizing the customer’s shopping experience. Customer identification is necessary to personalize the in-store shopping experience; however, 63% of retailers can’t identify their customers prior to checkout, which is too late to empower the as

The SPECIAL REPORT: Personalization key findings include:

CUSTOMER IDENTIFICATION

  • Customer expectations: 64% are comfortable with retailers identifying them via their mobile phone when they enter a store, as long as it means they are offered a personalized experience
  • Retailer capabilities: 63% are unable to identify their customers prior to checkout and 20% can’t identify them until after checkout or not at all

PERSONALIZATION

  • Customer expectations: 79% indicate that personalized service is an important factor in determining at which store they choose to shop
  • Retailer capabilities: 53% indicate that personalization is one of their top customer engagement priorities for 2019

PERSONALIZED REWARDS

  • Customer expectations: 68% are likely to shop at a store offering personalized rewards based on customer loyalty
  • Retailer capabilities: 48% currently offer personalized rewards based on customer loyalty and another 30% plan to offer within two years

2019 Special Report – The Future Store

55% of Retailers Plan to Utilize the Internet of Things (IoT) within Three Years

According to BRP’s SPECIAL REPORT: The Future Store, stores must now encompass both the physical and digital worlds as customers expect a personalized experience in every channel.

Customers are willing to try new technologies if it improves their in-store shopping experience. According to the BRP Consumer Study, 32% of consumers are likely to shop at a store offering an augmented reality (AR) experience over a retailer that doesn’t offer AR and 29% would like a virtual reality (VR) experience as part of their shopping environment. Consumers are very interested in relying on technology instead of human interaction if it makes the purchase process quicker and easier. For example, 55% are more likely to shop at a store with self-checkout vs. a store without and 57% will choose a store offering automated returns to avoid human interactions and speed the process.

BRP’s SPECIAL REPORT: The Future Store is based on findings from the BRP Consumer Study and the 20th Annual POS/Customer Engagement Survey and offers insights into customer expectations for the store of the future and how retailers’ current capabilities match up with these expectations.

The Future Store key findings:

INTERNET OF THINGS

  • Retailer capabilities: 19% currently offer Internet of Things (IoT) capabilities and another 36% plan to within three years

ARTIFICIAL INTELLIGENCE

  • Retailer capabilities: 23% currently utilize artificial intelligence and an additional 30% plan to within three years

AUGMENTED REALITY

  • Customer expectations: 32% are likely to shop at a store offering an augmented reality experience
  • Retailer capabilities: 9% offer augmented reality to their customers and another 29% plan to within three years

VIRTUAL REALITY

  • Customer expectations: 29% are likely to shop at a retailer offering virtual reality in their store
  • Retailer capabilities: 7% currently offer virtual reality capabilities to customers and 23% plan to add it within three years

2019 POS Survey

Personalization, Mobile Experience, and Real-Time Retail are Top Customer Engagement Priorities

Retailers understand the imperative for change, as 94% of retailers, up from 81% last year, have indicated that they have or plan to implement a single unified commerce platform within the next three years. “It is time to reimagine the customer engagement model as yesterday’s retail is dead, and agility is paramount as retail continues to rapidly evolve,” said Brian Brunk, principal at BRP. “Key to this agility and transformation is a single commerce platform. Victory belongs to the agile.”

“As customer expectations for an increasingly customized experience increase and evolve, retailers are adopting new ways to identify customers and personalize their shopping journey,” said Perry Kramer, senior vice president and practice lead at BRP. “Retailers continue to offer more mobile services from a consumer-facing and associate-facing perspective that include personalized recommendations, loyalty rewards, coupons, discounts and promotions. It is also interesting to note that 63% of retailers plan on having the ability to use a customer owned mobile device as a POS device within three years.”

BRP’s 20th Annual POS/Customer Engagement Survey of top North American retailers offers insights into retailers’ current priorities and initiatives as digital and physical retail environments converge to facilitate a seamless experience across channels.

The key customer experience trends driving today’s initiatives are:

PERSONAL – Engaging the customer with personalized and relevant messaging is the key to customer loyalty

  • 79% of consumers said personalized service from a sales associate is an important factor in determining at which store they choose to shop
  • 53% of retailers indicate that personalization is one of their top customer engagement priorities

MOBILE – The pervasiveness and ease-of-use of mobile devices offers tremendous opportunities for retailers

  • 63% of consumers use their mobile phone while shopping in a store to compare prices, look for offers/coupons, check inventory availability, etc.
  • 49% of retailers indicate that the customer mobile experience is one of their top customer engagement priorities

SEAMLESS – Today’s customer journey crisscrosses channels, requiring the retailer to provide a seamless, personalized experience

  • 56% of consumers indicate they are more likely to shop at a retailer that allows them to have a shared cart across channels
  • 94% of retailers have or plan to implement a single unified commerce platform within three years, up from 81% last year

SECURE – Today’s retail environment requires security beyond retailers’ current focus on payments and networks

  • 50% of consumers are likely to allow retailers to save purchase history, personal preferences and personal details if it eases the checkout process and allows for more personalized offers
  • 61% of retailers have implemented end-to-end encryption to offer customers greater security of their personal and payment data

2018 Integrated Planning Survey

Elevated Customer Expectations Require Integrated Planning Processes and Systems

As customer shopping journeys continue to span across channels, it is imperative for retail planning processes, systems and organizations to be streamlined and integrated to meet increased customer expectations. Current disparate solutions must be transformed into one cohesive environment with the ability to offer customers a seamless shopping environment and the capability to deliver the right merchandise immediately – wherever it is needed. The 2018 Integrated Planning and Inventory Management Survey offers insights on the key challenges and benefits of integrating planning processes and systems and identify where retailers are on this path to providing a holistic shopping experience.

To achieve an integrated retail planning model, retailers need to:

Align the organization

  • 40% of retailer currently have an integrated planning organization across channels and 73% of those indicate it needs improvement
  • Within three years, 87% of retailers plan to have an integrated planning organization across channels

Integrate planning processes

  • 43% of retailer currently have an integrated planning business processes across channels and 84% of those indicate it needs improvement
  • Within three years, 93% of retailers plan to have integrated planning business processes across channels

Implement technology

  • 39% of retailer currently have an integrated planning systems across channels and 82% of those indicate it needs improvement
  • Within three years, 89% of retailers will have integrated planning systems across channels

Prioritize customer data

  • 54% of retailers are focused on better integration of actionable customer data into their planning activities
  • 44% of retailers utilize customer feedback in real-time to impact in-season planning

Download the complete report to see all findings.

SPECIAL REPORT: Integrated Planning

SPECIAL REPORT: Integrated Planning – Getting it Right

Integrated Planning Solutions are Imperative to Retail Success

Streamlined and integrated planning processes are foundational to developing sound strategies and plans that align with consumers’ expectation of a seamless, cross-channel shopping journey. While some retailers have been able to work with legacy tools and disjointed processes, their results have been hindered by siloed data. In order to keep up, retailers must evaluate their processes and technology, automate tactical activities, and focus on how they can position their organization for success.

With the knowledge that they have the right data integrated across the process, it will improve retailers’ ability to focus on finding the right products and distributing them to the right places. Integrated planning processes and technology are key to this effort by providing a single source of truth, collaborative approach, and organizational alignment.

Integrating planning process is important, but also challenging.  This special report acknowledges the obstacles involved to eliminate silos and integrate people, processes and technology: resource constraints, disparate systems, organizational/process challenges, and budget constraints.

2018 Digital Commerce Survey

Retailers’ Top Digital Customer Experience Priorities are Creating a Consistent Brand Experience Across Channels and Improving Personalization

According to the 2018 Digital Commerce Survey, 51% of consumers feel it is important to get a personalized experience across all digital channels within a brand. Retailers recognize the importance of the cross-channel, personalized customer experience, as their top digital customer experience priorities are creating a consistent brand experience across channels (57%) and improving personalization (38%).

The new retail model requires retailers to transform their business and reinvent themselves to create a successful blend of the physical and digital worlds to maintain their customers’ loyalty. New and innovative methods of shopping – driven by mobile technology, artificial intelligence and rapidly changing fulfillment methods – are elevating customer expectations. The speed of these changes requires organizational agility to quickly and easily react to increasing customer expectations and changing consumer behavior.

Key findings include:

Personalization – Effective customer engagement requires retailers to know whom the customer is to be able to offer personalized, relevant, compelling and consistent services across channels.

  • 51% of consumers feel it is important to get a personalized experience across all digital channels within a brand
  • 18% of retailers are currently utilizing customer identifying technology in the store and within three years, 79% plan to use it to personalize the experience

Digital Influence – Retailers realize that mobile devices are ubiquitous and recognize that a mobile device in the customer’s hands holds tremendous opportunities to enhance the customer experience across channels.

  • 75% of consumers use digital tools prior to their in-store visit and mobile devices are leveraged in 46% of in-store shopping experiences
  • 67% of retailers provide online customer reviews to influence and drive purchases and 76% will extend mobile offers to customers in the store within three years

Augmented Reality – Through augmented reality (AR), innovative retailers are inspiring their customers and offering them the ability to see what a product looks like in their home or even on their body.

  • 48% of consumers would be more likely to shop at a retailer that utilizes augmented reality
  • 32% of retailers will utilize augmented reality within three years