Retail Management

1. Retail Management Module 7: Information Systems in Retail and CRM Software

2. Centralized Data Hubs

3. Methods to Gather Information Traditional methods: • Observation • Intuition Interactive methods: • Surveys • Interviews • Focus Groups Most popular method today:data driven technology!

4. Retail Information Systems What is a retail information system? Examples of retail information systems: • Point of sale (POS) transactions • Supply chain • Finance • HR • CRM

5. Data Warehousing and Data Mining Data warehouse (DW): A system used for reporting and data analysis, and is considered a core component of business intelligence. DW’s are central repositories of integrated data from one or more disparate sources. Data mining: The process of discovering patterns in large data sets and involves methods at the intersection of machine learning, statistics, and database systems.

6. UPC, RFID, and QR Codes UPC: The Universal Product Code is a barcode symbology that is widely used in the United States, Canada, United Kingdom, Australia, New Zealand, in Europe and other countries for tracking trade items in stores. RFID: Radio-frequency identification uses electromagnetic fields to automatically identify and track tags attached to objects. The tags contain electronically-stored information. QR: A quick response code is a matrix barcode made up of dots. Because it is two-dimensional, it can hold substantially more data than one-dimensional barcodes, such as UPC

7. Supply Chain Management

8. Supply Chains • The supply chain is the entire sequence of activities involved in taking natural resources and raw materials and turning them into a product for the consumer • What does it include? • All of the actions, organizations, materials, systems, people, and information involved in that process

9. Flow of Goods As products are manufactured, they “move” from raw materials or components to finished goods. At some point in that process, RFID or other identification means are implemented to monitor where the product is in its manufacturing lifecycle. The movement through the supply chain process continues when products are aggregated for shipment where they can be tracked during the transportation leg of the supply chain.

10. Sales and Information Systems How can a good supply chain management system help to increase profits? • It ensures that the right inventory is in the right place to meet anticipated demand • This serves to maximize sales potential and drive profitability as the retailer’s investment is returned • It helps to drive efficiency throughout the product life cycle, reducing costs and time-to-market • Managers can make better decisions as to who/where are the best sources of supply, how much lead time is needed to ensure on-time delivery, what are the best transportation methods, etc.

11. Supplier and Retailer Coordination How can vendors and retailers coordinate efforts? • Planning sales and inventory levels • Planning promotions • Sharing real-time sales data

12. Shopping Data Collection

13. CRM Purpose of CRM systems: • Capture internal data about customers and customer interactions and house these data in a central location • Provide business users with access to customer data in order to inform a variety of customer touch points and interactions • Conduct data analysis and generate insights about how to better meet the needs of target segments and individual customers • Deliver a marketing mix tailored to the needs and interests of these target segments and individual customers

14. Customer Database 3 Primary Categories of Information Stored in a CRM Database: • Customer Profiles • Customer Activities • Customer Management

15. Collecting Identifying Information • Retailers have collected identifying information since the business of retail was born • Before modern technology, retailers would rely on their memory to know frequent customers by name and use basic technology such as pen and paper to keep track of their clientele • Today, information can be collected simply by the consumer’s use of smartphones to complete a transaction

16. Privacy Issues Common privacy issues surrounding CRM tools: • Data breaches • Data theft • Personal data being shared legally without the knowledge of the customer

17. Analyzing the Customer Databse

18. Identifying Best Customers What does a business “look for” in its customers? • Purchase frequency • Average purchase amount • Lack of returns • Response to survey requests • Positive reviews on survey • Posting positive opinions on social media What is one to one marketing?

19. Goals of Data Analysis • Market basket analysis gives clues as to what a customer might have bought if the idea had occurred or been suggested to them • How can this analysis be used?

20. Frequent-Shopper and Rewards Programs Types of rewards programs: • Point system • A purchase amount is equivalent to a number of points • Tiered reward program • Designed to foster long term loyalty • With each designation, customers receive more benefits and perks • Charging customers an annual fee in exchange for VIP treatment

21. Customer Retention Techniques • Every day, you are a participant (willingly or unwillingly) in customer retention activities used by retailers and business owners • Examples of these techniques: • Soliciting customer feedback after each interaction with the company to learn ways to improve customer experience • Notifications of upcoming sales events, additional discount offers, cross-marketing campaigns, etc.

22. Quick Review • Methods of gathering information • Data warehousing vs. data mining • Why is it important to understand supply chains? • What are the three aspects of the customer database? • Customer profiles • Customeractivities • Customer management • What should you “look for” in a customer? • Methods of retaining customers