There have been plenty of stories about the downfall of retail, yet time and again, certain brands rise to the top. One thing these retailers have in common: they use technology and data to make intelligent decisions for their business.

The sheer volume of data available—gathered from transactions, social media, opt-in phone tracking and more—can be overwhelming. 2.5 quintillion bytes of data are generated every day. What’s the most effective way to capture and filter valuable data, and how can it improve both the customer experience and the retailer’s bottom line?

Smart retailers don’t just gather data; using advanced analytics and technology, they apply it to create a more holistic experience through the entire customer journey—from browsing to purchase to fulfillment.

Getting personal

We often forget that data is personal; it’s generated by individuals who have individual wants and needs. This means that it can be used to create personalized experiences for customers—something they’ve come to expect.

A common example of this is personalized shopping recommendations powered by artificial intelligence and machine learning. Advanced analytics like this are also used to personalize loyalty programs, allowing retailers to tailor the experience for their best customers. 86 percent of customers will pay more for a better customer experience, and customers who are engaged in an experience are less likely to think about product cost.

Transforming the in-store experience

$0.56 of every dollar is influenced by a digital interaction—but that doesn’t mean that brick-and-mortar stores are no longer important. Rather, it means that retailers must use data to create a seamless experience between their digital and physical touchpoints. Using data gathered from digital channels, sales associates can now greet customers by name when they enter the store, as well as offer recommendations based on past purchases.

Mobile technology means that sales associates can be equipped with mobile point of sale (mPOS) devices—tablets or smartphones that are able to process payments anywhere in the store. A quick and easy checkout process is two times more important than any other retail experience, so getting this right is a big win.

Empowering frontline sales associates

Increased device connectivity and internet usage have resulted in more knowledgeable consumers. This is clearly a benefit for the customer, but it can put sales associates at a disadvantage. Digital tools enable frontline sales associates to have better access to product information and inventory. 72 percent of customers who dealt with a store associate using a mobile device to provide product info, credit card checkout, or inventory look-up said it resulted in a better shopping experience.

Sales associates can also benefit from mobile scheduling apps, which allow them more control over their shifts. Managers can use these same apps to send out announcements, training and more. These types of apps can help employees become more engaged and invested, resulting in improved customer relationships—and a 20 percent leap in sales.

Embracing robotics

Retailers are increasingly looking to offset mounting health care and labor costs, and one key way of doing this is by leveraging robotics and automation technologies. Warehouse and fulfillment centers are an obvious place to implement this. Robotic warehouse systems can be expensive to implement, but ultimately, they can save retailers as much as 80 percent in distribution-labor costs.

Automation can improve the customer experience in-store, as well. Electronic shelf-label technology automates retailers’ price-changing systems, eliminating the need for employees to change them by hand and allowing companies to run and display special offers in real-time. After a product is located, self-scan and self-checkout options empower the customer to speed through checkout as quickly as they like, on their own terms.

Providing retailers with smart solutions

Intelligent retail is not just about having the right data—it’s having the ability to apply that data, work smarter, and deliver better outcomes for customers. To stay competitive, retailers need systems in place to effectively utilize cutting-edge technology.

At Microsoft, we’re building solutions that don’t just provide access to data—they apply that data to garner insights and help retailers make more intelligent decisions that will grow their business. Microsoft Dynamics 365 helps retailers better engage their customers, leveraging advanced analytics and machine learning to deliver more relevant offers and experiences.

Our omnichannel solutions provide greater continuity as customers move between in-store and digital experiences. We’re making retail employees smarter, too, with collaborative tools and mobile access that optimize daily operations. Through intelligent distribution, retailers can automatically route orders to ship from the most optimal location—resulting in lower costs, faster delivery times, and better experiences for customers.

Uncover more trends changing the retail landscape

Learn more about intelligent retailing in our ebook Seven Emerging Trends That Are Changing Retail, featuring insights from retail industry technologists.

The post What it takes to be a smart retailer appeared first on Microsoft Dynamics 365 Blog.

Over the last decade, the retail industry has undergone a massive transformation. The proliferation of e-commerce expanded customer choice, the rise of social media changed how people gather product details, and the expansion of smartphones placed an unlimited supply of information at our fingertips. All of this means that customer expectations are changing—rapidly. Whether we’re multitasking from our couch or comparing product specs in store, this transformation has fundamentally shifted how we view shopping as an experience.

Today, shopping is not just the act of acquiring goods; it has become a prominent pastime. In a 2016 survey of nearly 60,000 18- to 24-year-olds, shopping was the third most popular pastime (67%) behind socializing with friends (77%) and listening to music (70%); it was ranked above watching TV (60%), going to the gym (41%), and partying (37%).¹ And over the last decade, consumer-spending growth in experiential categories (like travel and dining out) has outpaced retail growth averages.²

What this means is that what consumers are looking for—what they’re ultimately buying—is not just a product, but an experience. It’s not just the food, it’s the ambience of the restaurant. It’s not just a new TV, it’s the comfort of knowing that the store will replace it without hassle should it break. It’s not just the shoes, it’s the ability to make sure your size is in stock before you go to the store and try them on.

This is not to suggest that producing amazing products isn’t important—with an internet-worth of options, the benchmark for great products is higher than ever—but to suggest that businesses must redefine what their product actually is. The product that a customer purchases is more than just the “goods” themselves; it’s the end-to-end experience of discovering, acquiring, and using the product. It’s the ability to return it—easily—if it doesn’t work out. It’s the sum of every interaction a customer has with a brand; it’s the premium a customer is willing to pay a trusted retailer when they could get the product elsewhere for less. At the end of the day, retailers must design every customer touchpoint with the same level of intention and care that they do their products—because to the customer, they’re equally important.

These new expectations have created many challenges for retailers, and the industry has had its share of casualties. But smart retailers evolved. A new generation of technology-enabled retail experiences and business models are pushing the industry forward. This evolution is not a trend, but rather the new reality of retail.

In the past, retailers existed in two genres: small local shops and big-box retailers. Where the shops were often locally owned and provided more personalized experiences, big-box retailers had the most options. In 2006, the market cap of today’s largest eight brick-and-mortar retailers was roughly $400 billion, while Amazon was only valued at $17.5 billion. As e-commerce grew, it offered customers more options at lower prices, leaving big-box retailers in an un-needed middle position: having neither the best variety, nor the personal service of a local store. Today, Amazon’s market cap surpasses the eight largest retailers combined.³

As retailers fulfill the need for options through e-commerce platforms, many are re-evaluating their in-store experiences, trying to replicate the feel, service, and personalization of small local shops by providing varied services for their customers. These include food and beverages that blend shopping into a fun social activity with friends, fitness classes that bring together a community of likeminded people, and one-on-one in-store tailoring consults. These types of experiences are more than just personalized; they build relationships that are personal. To illustrate the difference: anyone can order a custom-tailored suit online, but not everyone has “a suit guy.” And when you have a suit guy, he’s going to be your first call the next time you need some new attire.

These types of in-store experiences are a great start to building personal relationships with customers, but they’re just one piece of a complex system. Data and technology have long made personalized experiences possible—for example, recommendation engines that show a customer products “picked just for you”—but today, customers crave more. They don’t just want personalization; they want a personal relationship with a brand.

For better or worse, customers expect brands to behave like people; they want to be able to have an ongoing relationship with a brand, not one that restarts at every interaction. Whenever they interact with a new sales associate or support agent, they expect that individual to understand their past relationship with the brand. They want a continuous conversation, not fragmented discussions.

Like prior personalization movements, this evolution will be largely enabled through unified data. No longer just a buzzword, omni-channel solutions enable retailers to aggregate data across every customer touchpoint. Beyond the platitudes of “allowing customers to engage anytime, anywhere, on any device, and any platform,” omni-channel does something even more simple and elegant: it provides continuity in the relationship between a customer and a brand.

Historically, customers have had ongoing relationships with brands—over multiple purchases, store visits, and interactions with store employees or support staff. However, the continuity in this relationship was one-sided. Customers remembered every interaction with a brand, but due to siloed data and systems, retailers weren’t able to tell when a customer last contacted them, and for what. With omni-channel solutions, retailers can aggregate data across every customer touchpoint, providing employees with the necessary information to make each conversation a continuation of the last—the way a true relationship with a peer would evolve.

No conversation around retail would be complete without discussing the amazing impact that augmented reality (AR) and mixed reality (MR) are poised to have on the industry. AR/MR technology is already finding its way into retail stores, like smart mirrors and customized dressing rooms, facial-mapping technology that allows customers to “try on” beauty products, and home-furnishing apps that let customers “see” how furniture looks in their spaces. But the best is yet to come. As this technology becomes more ubiquitous, it will empower retailers to provide better, more personal experiences.

Customer expectations shift rapidly, and retailers must stay ahead of the technology curve in order to build relationships that will ultimately grow their business. At Microsoft, we’re building technology to empower retailers to do more. Through Dynamics 365, we’re giving businesses of all types the power to transform. Our retail solution allows retailers to create amazing customer experiences, empower their employees, optimize operations, and transform their products.

From augmented and mixed reality to intelligent bots, we continue to invest in new technology to empower retailers and unlock new, amazing opportunities. As we help our retailer partners meet today’s evolving challenges, we’re paving the way for a new generation of retail that will reshape possibilities and redefine expectations.

We’re excited to showcase our latest capabilities at this year’s NRF. If you’re attending, please visit us at booth 2803. And for those who can’t attend, you can learn more about Dynamics 365 and the future of unified commerce at dynamics365.com.

Sources:

1. http://www.independent.co.uk/student/student-life/students-choosing-healthy-hobbies-going-to-the-gym-over-pub-visits-freshers-week-unidays-a7220371.html

2. https://www.bls.gov/cex/csxashar.htm

3. http://www.businessinsider.com/the-extraordinary-size-of-amazon-in-one-chart-2017-1

The post Building Personal Relationships through Technology appeared first on Microsoft Dynamics 365 Blog.

With diverse needs from merchandising to customer engagement, it’s no wonder many retailers believe they need a collection of targeted solutions to effectively run their business. Unfortunately, the value of piecemeal solutions is often diminished by complexities such as disparate data models, incompatible platforms, or custom tooling. These unnecessary complications ultimately make employees’ jobs harder and the customer experience far from seamless.

So, what’s the secret to providing friction-free retail? Modern retailers need a holistic solution that unifies back and front office operations. Microsoft Dynamics 365 for Retail integrates and enhances every aspect of your business from merchandising and promotion to fulfillment and in-store experience, all backed by powerful analytics and the best enterprise cloud. Let’s take a look at how Dynamics 365 enables retailers to rise to the challenges of modern retail.

Intelligent forecasting

Operational excellence requires intelligent systems. Machine learning-driven analytics and automatic inventory replenishment, two game-changing capabilities, enable retailers to address major challenges such as inconsistent fulfillment and out-of-stocks. By taking advantage of the integrated forecasting and distribution features of Dynamics 365 for Retail, retailers can shift from a reactive to a proactive posture. Retailers can also make smarter decisions faster based on a real-time and data-driven understanding of what sells when, where, and at what rate.

Personalized recommendations

Personalization is the new brand differentiator—and Dynamics 365 for Retail can help retailers outlast the competition. With a unified customer profile containing information such as customer wish lists and product history, retailers can gain a powerful understanding of each customer, laying the foundation for personalized recommendations. Once again, machine-learning technology is crucial as it can find and surface meaningful behaviors in customer data, enabling retailers to create targeted product recommendations tailored to customer desires and buying habits.

Enhanced in-store digital experience

Digital is reinventing the most frequent retail touch point—physical stores. Tools such as self-help kiosks, mobile POS, and beacon-triggered push notifications are being used to improve the in-store experience. Imagine the impact to the customer when they receive personalized offers and recommendations in real-time based on stored preferences and where they’re shopping in the store. Leveraging comprehensive data through Dynamics 365 for Retail, these digital tools provide new opportunities for retailers to delight their in-store customers. 

Out of the box omni-channel

Digital technology has created more channels for customers to connect—and retailers must meet them there. Whether purchasing through mobile apps, online, or in-store, or by engaging through social media, customers are looking for the brand familiarity they trust no matter how they engage. This familiarity is best built through a consolidated retail platform, but few solutions offer this. Dynamics 365 for Retail connects back-office resource planning to online shopping and POS to effortlessly enable scenarios, such as ordering online and picking-up in store and earning and redeeming loyalty points across channels, to create an effortless unified customer experience.

Easy deployment and servicing

Disruptions and downtime are costly for retailers, causing them to lose valuable business. With the Microsoft cloud, retailers can not only deploy quicker than typical ERP systems, this flexible and affordable platform helps simplify manual processes, speed up time to insights, and reduce maintenance and development costs. To further enhance the value of your investments, Microsoft delivers an entire ecosystem of value-added services and partners to support your journey.

Get it all in one place with Dynamics 365 for Retail

Modern retailers face many challenges and the pressure won’t be relenting any time soon. Dynamics 365 for Retail helps retailers unlock the secret to meeting these challenges and getting ahead in today’s competitive environment. With powerful solutions to drive their operations, retailers can deliver a connected employee experience and delight customers with exceptional shopping experiences, resulting in positive business impact.

The post The secret to modern retail? Dynamics 365 for Retail has it appeared first on Microsoft Dynamics 365 Blog.