How to be a Retailer of the Future

Barry LedermanSenior Business Analyst,VP of Business DevelopmentSoftengine/SAP Partner

Gil LasmanGeneral ManagerSoftengine/SAP Partner

Barry Lederman: blederman@softengine.com

Gil Lasman: glasman@softengine.com

Outline: What We’ll Cover Todayo Where is Retail Today

o Retail Businesses Continue to Face Challenges

o Where Retailers Need to Beo The Omnichannel Shoppero Inventory Visibility and Order Fulfillmento Mobilityo Payments

o How Retailers Can Get Where They Need to Beo Retail POS Systemo Integrated Platformo Mobility POSo Wireless Networko Payment Technologyo Loyalty Programso Data Analytics Programs & KPI’s

o Q & A – How It Applies to Goodwill

Where is Retail Today It’s All About The Customer

Most transactions are still completed

in brick-and-mortar stores

- PwC Survey 2015

80% of consumers use technology

during the shopping process

- MasterCard 2016

Where is Retail Today It’s All About The Customer

Expectation is to match online experience

• Convenient

• Personal

• Easy to Use

71% of consumers said they “agree” or “strongly agree” with the statement that they find shopping online more convenient than in a store.

Consumers find the online experience more personal– likely a result of receiving more personalized offers

71%

Consumers feel that ordering and delivery options are superior online compared to in store – ease of use Convenience Ease of Use Personalization

Online is more convenient than in-store

Shopper Expectations:Online vs. In-Store

Omnichannel Experience Not Consistent

Inventory Visibility & Order Fullfillment

Mobility Payment Technology

Retailers Continue to Face Challenges:

Where Retailers Need to Be

To win consumer loyalty and achieve growth across all channels, retailers must enhance their mobile commerce offerings and improve the in-store shopping experience.- Accenture 2015 Consumer Survey

S

Shopping Experience, In Store vs. Online

Where Retailers Need to BeOmnichannel

Smooth Not Smooth Not

Each consumer's best experience anywhere sets their minimal expectation everywhere.- Greg Girard, IDC Retail Insights What you might call "have it your way" fulfillment is a

good example. The consumer thinks, "if Amazon can give me so many fulfillment options, including same day in some markets for some categories, why can't other retailers?"

Where Retailers Need to BeInventory Visibility

Inventory Fulfillment& Mobility

eCommerce In store In transit Warehouse

A single view of stock makes customer service faster, more efficient and more informative

Where Retailers Need to BeInventory Visibility

Where Retailers Need to BePayment Technology

• Prevent fraud across all sales channels while maximizing merchant order conversion

• Conduct Fraud assessment prior to payment authorization preventing losses

• Keep cardholder data and their networks safe

• Be PCI Compliant

Integrated Retail POS System

Integrated Platform – ERP, WMS, eCommerce

Mobile POS Wireless Network

How Retailers Can Get ThereWhere They Need to Be

Payment Technology Loyalty System

Data Analytics Programs

How Retailers Can Get ThereWhere They Need to Be – Integrated Platform

Typically 60% ofretailers’ entire stock is

safety stock

Moving to asingle stock poolreduces this by at

least 20%

Integrated PlatformInventory Fulfilment: Single View Of Stock

Merchandising• Unify planning• Plan sales and margin by hierarchy• Tailor promotions by channel

Inventory• Address when demand is anticipated• Visibility of stock despatch• Reduce shipping costs

Integrated PlatformMoving To A Single Stock Pool: The Benefits

Avoid merchandise stagnancy and stock-outs

Savings in merchandising costs

Single version of merchandise status

Better warehouse management

Consistent customer service, in whichever channel they prefer

Avoid ‘store-as-showroom’ syndrome

Integrated PlatformSingle Stock Pool: Locate Stock Across Stores

Mobility POS - Home Depot:Help Shoppers Locate Inventory, Virtually

The Home Depot mobile app helps shoppers find product in stores faster through augmented reality, visual search and real-time inventory availability.

mPOS - Lowe's Dives Head-First Into Associate Mobile Implementation

"Associate usage of these devices is up; I don't have to preach adoption. It saves them time and allows them to be more educated about our products.“- Jay Deaton, Director of Operation

Support, Mobility and Information Services at Lowe's

How Retailers Can Get ThereWhere They Need to Be – Payment Technology

• NFC - Near Field Communication

• Mobile Wallets

• Apple Pay

• Samsung Pay

• Google Pay

• Quicker Alternative

How Retailers Can Get ThereWhere They Need to Be – Loyalty Programs

• Integrated Loyalty Programs

• Cards

• Digital

• Higher Revenue (20%)

• Redemption across networks

• Digital Marketing

A robust digital pass application can help retailers give their loyal customers more timely rewards

Consumers didn’t use loyalty points before the expiration date

Often forget to use paper coupons they receive in the store

Often forget to use loyalty cards in their wallet

Have so many loyalty cards that they find it hard to remember where they are a member

Digital Loyalty: Paper Is Dead! Long Live Digital!

When it comes to loyalty, more consumers are looking for digital delivery.

42% 30%

Want loyalty offers sent to their email

Want loyalty offers sent to their mobile device

Even among shoppers who are 55+, there is less interest in paper --47% would prefer emailed loyalty offers to paper coupons.

Pie Five:Updates Loyalty Program To Target Millennials

With its "Circle of Crust" digital rewards program, Pie Five has

grown same store membership by 90% since 2013.

The store is clearly a big area of opportunity for retailers to improve their personalization efforts

44%Desire personalized loyalty offers sent directly to their smartphone with ‘geofencing’ when they enter a store

Personalization: Increase Offers In/Near The Store

Tom's of Maine and Raven + Lily Personalize The Shopping Experience In Innovation Showcase

Interactive displays and RFID-embedded

products and store fixtures help personalize messages and product

suggestions for shoppers.

68% of shoppers said it is important that retailers have one view of

them as a customer – both from online and in-store shopping history

22% say they would like stores to know more about how they shop online and track purchasing habits so that they can improve service

Understanding The Omnichannel Shopper

How Retailers Can Get ThereWhere They Need to Be – Data Analytics, KPI’s

• Data Analytics Programs

• Real Time

• Better Decisions

• KPI’s (Key Performance Indicators) – Retail

• Sales per Square Foot

• Average Purchase Value

• Incremental Sales due to campaigns

• Customer Lifetime Value (CLV)

How Retailers Can Get ThereWhere They Need to Be – Be Trusted

• Organization Ethics

• Superior Customer Service

• Transparency

• Traceability

• Security of Data

• Build Relationship Post-Sale

How Retailers Can Get ThereWhere They Need to Be – Retain Your Customer

• Customer Lifetime Value (CLV)

Infographic from Retention Science

Where Are Goodwill Agencies Today

About Softengine & SAP

About Softengine & SAP

http://www.softengine.com/solutions/sap-business-one-goodwill-suite/

• SAP Gold Partner

• Developer of SAP Business One - Goodwill® Suite - modular system

• POS, WMS, Production, Financials, Procurement, HR, Payroll

• predesigned to plug into each other

• pick the module to start with like a “Lego" system

• Gain process efficiencies in all areas, including loss prevention

Major Gains for Goodwill Industries

• Treating Donated Goods as New Goods – Smart Label Barcoding

• Individual Pricing (Think 1% increase and ROI)

• Faster, Accurate, Secure Checkout

• Integrated POS

• Real Time Retail

• Accurate Inventory – Single View of Stock

• Higher Productivity

• Real Time Financials = Fire Prevention

• Roundup at Checkout

Thank You!Download Session Slides and Notes:

Session Presentation and Noteshttp://www.softengine.com/solutions/sap-business-one-goodwill-suite/