Stepping into the future of retail execution
Data is pervasive in the retail industry, but today, very few Consumer Packaged Goods (CPG) companies are using it to its fullest potential. Without means to capture and transform data, CPG companies are missing out on critical revenue-driving opportunities to improve efficiency and precision in retail execution. And as the technology footprint in this sector grows, the gap between those who embrace digital transformation and those who stick with legacy technology will continue to widen.
Legacy approaches create inefficiencies and missed opportunities
Over the last several decades, experienced retail execution professionals have relied on paper and legacy technology to run their daily operations. A recent EKN poll found that 64% of these professionals were still doing physical paperwork in-store[i]. The result of this reliance on manual, dated approaches is excessive work for employees and a lack of visibility into real-time customer trends[ii].
Let’s look at the typical day of a retail execution professional constrained by legacy technology. They start out their day prioritizing store visits, planning their traffic routes, calling up old audit records, and reviewing open orders and operational activities using PC-only applications. Not only are employees stuck behind their desks planning rather than actually engaging out in the field, this process is also full of guesswork. Next, once employees are out conducting store visits, the information gathering process is slow, inefficient, and often riddled with mistakes. Imagine capturing information using physical pen and paper the first time around and then having to manually translate the same information a second time into a slow, electronic database. Undeniably, this process is prone to human error and drains valuable time that could be spent with customers.
By the time the day is over, account reps and their managers have limited capacity to analyze store performance or share best practices. Key pieces of information captured throughout the day via email and spreadsheets must now be analyzed and processed in order to derive insights that then must be relayed across the organization. These inefficiencies from daily operations, perpetuated by legacy technology, contribute to the stress retail execution practitioners experience. It’s no wonder the EKN polls report that high employee turnover is common within retail execution teams.
Opportunities of today’s data analytics technology
Now, let’s look at the opportunities available today: new technologies such as big data and advanced analytics are enabling CPG companies to take steps toward faster, more intelligent retail execution. IDC estimates that retail companies taking full advantage of their data have the potential to raise an additional $94B in revenue over companies that don’t[iii]. With the advent of unlimited computing capacity in the cloud and advanced analytics capabilities, retailers now have the ability to combine massive amounts of data types of all varieties, velocities, and volumes[iv]. This can include information from loyalty programs, customer reviews, social media posts, in-store monitoring of customer behavior, and even external factors like weather and local events. Gathering all of these data sources into one combined view enables retailers to discover subtle patterns, make predictions, and solve problems more quickly and more accurately than ever before.
Retail execution professionals empowered by data and analytics can already begin to transform every part of their day, making tasks more efficient and precise. Mobile, data-driven planning using retail execution apps frees representatives from the confines of their desks, enabling them to spend more of their day in the field. Equipped with mobile devices that provide instant access to relevant data, reps can capture data more quickly and accurately during visits, and spend more time having meaningful conversations rooted in data with location managers.
And better yet, by connecting real-time data from store performance, brands have the opportunity to deliver fresh perspectives and relevant best practices across their organization to equip their sales associates with the most effective strategies. This, in turn, enables CPG companies to better deliver relevant products, services and marketing messages to customers.
Today, the AFS Retail Execution solution, built on Microsoft cloud technology, puts these transformative capabilities into reach. Its robust, flexible mobile solution is designed to empower field representatives to quickly manage daily tasks and deliver on their retail execution objectives. The solution supports field sales and merchandising planning more effectively, executing on-site tasks more efficiently, and understanding the business more holistically. AFS Retail Execution offers an industry-specific set of features that fulfill the core set of requirements for field sales execution. In addition, it is designed with a level of configurability that allows you to address advanced requirements and unique needs without software customization.
Extending the value of data analytics
Digital transformation is not just about the technology that’s available today – it’s about the potential for expansion in the future. By embracing a data-driven approach now, CPG companies are setting themselves up to win long-term with advanced analytics, machine learning, and IoT technologies. These technologies will enable retailers to make the most of business opportunities and apply a more effective approach to marketing, merchandising, and other retail execution processes.
The growing capabilities of advanced analytics and machine learning increasingly take the guesswork out of retail execution. In its most basic form, comprehensive data enables CPG companies to see which branches are successful. However, with advanced analytics, CPG companies can dive into the details of why particular strategies are working and determine their ROI. In the future, machine learning technology will preemptively suggest ways to improve struggling branches.
With IoT, retailers will soon be able to install smart sensors on shelves that provide the real-time data necessary to order additional inventory in advance and significantly reduce out-of-stock rates. IoT can even help demystify customer behavior by correlating in-store traffic patterns with weather, holidays, local events, new products, and campaigns. This, in turn, enables CPG companies to better align inventory with demand based on a variety of factors.
Although technologies such as advanced analytics, machine learning, and IoT are rapidly delivering value, many CPG companies are slow to adopt these technologies due to legacy constraints and aggressive sales goals that must be met. There’s simply not a lot of time to rock the boat. However, brands need to take the first step today by getting away from the pencil and clipboard. Microsoft is committed to helping CPG companies realize the game-changing potential of today’s technologies by offering a path forward with AFS POP Retail Execution.
Try it today
Want to learn more about AFS POP Retail Execution? Try the preview solution at www.appsource.com today and learn more about how Microsoft and AFS is turning business process into business advantage for organizations across the globe.
LinkedIn: Nina Lund
Twitter: @lund_nina
[i] EKN Outlook, 2016
[ii] Reflexis Inc, 2016 http://www.reflexisinc.com/solutions/
[iii] IDC Data Dividend Study and Survey, 2014 http://0ca36445185fb449d582-f6ffa6baf5dd4144ff990b4132ba0c4d.r41.cf1.rackcdn.com/IG_Data%20Dividend_FV.pdf
[iv] “Getting started with IoT”, Microsoft, 2016 https://enterprise.microsoft.com/en-us/industries/retail-and-consumer-goods/getting-started-with-iot-the-five-ways-retailers-can-drive-down-costs/
