As experienced merchants would know, huge consideration is assigned to the supply chain. 

Determining whether a certain target audience will purchase more of Item A than Item B necessitates scrutinizing a number of factors, including, but not limited to:

• How in-store traffic is affected by each of the four seasons
• Whether the product in question sold well over the past two years
• Which demographics have historically bought Item B
• If people tend to purchase Item B in bulk or not

A product's success depends on how well it's marketed and how efficiently suppliers produce and deliver it to retailers. If hundreds or even thousands of relationships exist throughout a single company's supply chain, then it must apply predictive analytics to assess risk and determine value. 

Viewed as a strategic asset 
Accenture Senior Managing Director and IndustryWeek contributor Mark Pearson noted that, out of 1,000 senior executives surveyed by the research company, 97 percent comprehend how data analysis will impact their distribution and procurement considerations. However, only 17 percent of those respondents claimed to have used such tools in regard to separate facets of their supply chains. 

One of the ways in which companies are leveraging data analytics has expedited the time it takes for products to be delivered to market. More than half (61 percent) of noted that analysis software allowed them to reduce order-to-delivery cycle times, a huge boon for merchants pressured by omnichannel shopping.

Predicting the future 
While the aforementioned capability describes analytics solutions capable of parsing through and presenting raw data in an intelligible manner, how are retailers utilizing predictive programming? Apparel Magazine noted how location-aware beacons and radio-frequency identification technologies are being deployed in brick-and-mortar stores throughout the facility. To get a good idea of how they work, consider the following scenario: 

• Emily walks into an apparel store and turns on her smartphone
• A beacon registers the smartphone's Internet Protocol address and follow her movements throughout the outlet
• She stops in front of a particular sweater and gives it a 4-second kino test
• She repeats the same tangible exam with four other sweaters, taking 10 seconds on average to feel them over

While placing the four sweaters she held longer back in the rack, Emily purchases the sweater she felt for four seconds. The retailer identifies that the sweater she purchased was wool, deducing that Emily will most likely purchase wool sweaters in the future. 

This entry was posted by Retail Pro on Monday, October 27th, 2014 at 6:16 am .

Faults are bound to happen in different facets of the retail operation, such as sales, experience, ecommerce and inventory management.

While many occur on accident, most, if not all, are preventable, regardless of whether they're occurring in the digital or physical arenas. Ultimately, too many mistakes can have a profoundly detrimental impact on customer perceptions.

Specialty retail companies are known for providing people with world-class experiences that are unique to their brands, and fixing the following grievances will allow them to uphold this reputation.

1. Leaving customers to browse alone
Bob Phibbs, a reputed author and retail expert, maintained that leaving customers to aimlessly search for items in-store isn't constructive to enhancing their experiences. In his blog, The Retail Doctor, Phibbs discredited the token argument employees usually give to their managers: "I want to be left alone when I shop."

Believe it or not, customers have specific choices and preferences in mind. No one browses just for yucks – people are looking for products that can satisfy specific needs, some simply just don't know exactly what those items are. Bottom line: Assess a person's desires and find the goods that will fulfill those preferences.

2. Choosing the wrong locations
It doesn't make sense for a retailer specializing in cold weather apparel to set up shop in an Alabama city. In a separate article for Retail Customer Experience, Phibbs emphasized that merchants may be sick and tired of hearing about how much of an impact location can have on their sales. However, it's a factor that companies shouldn't take for granted. Otherwise, overhead costs may eat up profits.

"Fortunately, rents are a good clue," wrote Phibbs, alluding to brick-and-mortar expenses. "Yes, you can save 30 percent with a location that's off the main road but you'll probably give that 30 percent back – and more with advertising to try to get them there."

3. Putting unknowledgeable employees on the front line
No matter how capable a floor salesperson is, he or she should learn about the products on sale before being put into action. It can be surprising how challenging some of the questions posed by the average consumer can be. The solution? Test your new workers' knowledge of specific items. In addition, allow them to interact with the materials to get a better idea of what they can be used for.

This entry was posted by Retail Pro on Friday, October 24th, 2014 at 12:48 pm .

In order for merchants to conduct operations effectively, ecommerce software must be cohesive with solutions such as email marketing tools, accounting applications and other programs. 

A significant component of ominchannel, a concept that is defining the way retailers interact with their customers, obligates merchants to have the back-end capabilities needed to connect with consumers through assorted avenues.

This means that keeping track of SKUs, sending shipping information to buyers and other basic tasks shouldn't involve entering information into three different systems. Avoiding the latter situation involves synchronizing a collection of programs. 

Improving existing deployments 
American Eagle has regarded retail customer intelligence reports and has chosen to make serious revisions to its desktop- and mobile-based online shopping venues. According to Retail Solutions Online, the apparel brand's revenue has increased consistently over the past six years, and it hopes to keep this trend going by making it easier for consumers to find goods. 

One particular feature that promises to deliver more information to mobile shoppers is a pinch and zoom feature that allows smartphone and tablet users to focus on particular parts of item pictures. In addition, people can now swipe up to read further details regarding product specifications. 

Not quite there yet 
Some analysts have recognized these welcomed features, but have maintained American Eagle could have done a better job of getting the engine behind its check out and scan credit card functions. Fluid Inc. Senior Client Services Director Anne Hurst noted that the application kept crashing whenever she aimed to use it. 

In addition, she asserted that American Eagle failed to capitalize on the benefits associated with linking the app with social media platforms. Showing the number of likes a product has aggregated, for example, improves that item's reputation among consumers. 

The need for connector applications 
Practical Ecommerce contributor Armando Roggio noted the importance of integrating existing ecommerce platforms with connector software. This particular breed of tools automates data transactions between two or more systems. For example, Dlvr.it can automatically "post articles from your blog to social media sites," noted Roggio. 

This has enormous implications for online and mobile shopping. For instance, if a person finds a pair of running shoes he or she has had success with, he or she can share it on Facebook and then automatically have the activity show up on his or her Twitter feed. 

There are plenty of possibilities for how ecommerce software can be manipulated. To ensure revisions and customizations go smoothly, hiring outsourced application engineers is a sure bet. 

This entry was posted by Retail Pro on Friday, October 24th, 2014 at 6:23 am .

As merchants continue to invest more heavily in ecommerce software and merge these systems with brick-and-mortar functions, they'll be expected to provide adequate support to customers. 

Despite the fact that the majority of retail customers have access to the Web, many of them don't want to spend time searching for information regarding specific products or services. Customers often measure a merchant's capabilities by how well it can assess requests. 

Waiting too long 
Retail Customer Experience noted that the average U.S. adult spends 364 minutes on the phone every year waiting for a call center employee to satisfy their inquiries. That's almost six and a half hours listening to elevator music. The source cited statistics from Populus Research and Kana Software:

• The average amount of time employees spend addressing one compliant is one hour, four minutes
• Almost three-quarters (71 percent) of U.S. consumers have filed inquiries in the past three years
• An unsettling majority of respondents (69 percent) had to submit complaints multiple times 
• Getting issue resolved typically required people to make requests for service three times on average
• While 33 percent of survey participants claimed they used email to deliver inquiries, another 39 percent used their phones
• A mere 7 percent voiced complaints on social media platforms such as Twitter, Facebook and Yelp

Basically, it's taking too long for businesses to address customer concerns. Some may point to a lack of adequate technology, while others may place the blame on inadequate training. Maybe the manner in which systems are set up breed redundancies. The fact of the matter is, there isn't a single issue that's encouraging exorbitant wait times. 

What can be learned from small businesses? 
It turns out that specialty retail companies may be handling customer issues much better than their larger components. Business News Daily contributor Nicole Fallon referenced a survey of 1,200 consumers conducted by CorvisaCloud, which found that 50 percent of respondents asserted the best customer service is often provided by small enterprises. 

Overall, what are these businesses doing well? 

1. They create a "people first" culture, according to Fallon
2. Develop a strong first impression by having people answer calls instead of machines
3. Use retail analytics to zero in on customers who may not have had the best experiences
4. Chart each interaction between individuals and the brand 

With these four points in mind, merchants are in a strong position to reassess their customer service operations and implement changes as they see fit. 

This entry was posted by Retail Pro on Friday, October 24th, 2014 at 6:09 am .

While data breaches at big-name retailers often enter the public sphere, intrusions at specialty stores often go unnoticed. 

It's easy to assume that cybercriminals ignore medium-sized merchants, but they're far less picky than people would think. Why target the perceived "small fries" of the retail industry? Because hackers are interested in credit and debit card data, no matter where it resides. 

Backoff's effect on merchandising 
Small Business Computing noted the prevalence of the Backoff malware, which peruses environments for credit card numbers and matches them with security keys. Once the data has been matched, it's delivered to the hacker that planted the worm in the first place, allowing him or her to either sell the information or use it for his or her own purposes. 

"For every one that we hear about, there are hundreds of small businesses affected," said Andrew Bagrin, in reference to his cloud-based data security firm My Digital Shield, as quoted by the source. "I have a feeling that it's just the beginning." 

Slow to get back up (if at all) 
When a small or mid-sized retailer is hit by a malware attack, it can't recover in the way larger merchants can. While big box enterprises still sustain setbacks when cybercriminals infiltrate their databases, they can utilize a large amount of available resources to mitigate and resolve such issues. 

On the other hand, smaller operations may have to close up shop. Bagrin noted findings from the National Cyber Security Alliance, which asserted 60 percent of small businesses that encounter attacks shut down within six months after such an event occurs. 

Why tokenization is the way to go 
It's easy for people to confuse encryption and tokenization as the same technology. ITWorldCanada contributor Michael Ball identified the differences between the two. The former security protocol involves encoding sensitive data at rest and in transit, while copies of encrypted information reside in other environments. In addition, encrypted data is actually intended to be decrypted (by authorized parties, of course). 

In contrast, tokenization removes these loopholes by replacing existing information with a "unique placeholder" that is randomly generated. This replaces valid credit card numbers with fake ones, but must still be granted access through a validation algorithm. Essentially, tokenization renders hacking attempts useless, because the original data no longer exists. In addition, it's difficult – if not impossible – for a skilled cybercriminal to reverse engineer the token. 

While encryption is a common security measure, implementing tokenization is a best practice every retailer should employ. 

This entry was posted by Retail Pro on Wednesday, October 8th, 2014 at 7:06 am .

The retail industry isn't undergoing changes just for the sake of doing so. Consumer expectations transform almost every year, causing merchants to make fundamental adjustments to their operations in order to keep their customers satisfied.

While some of these changes involve the introduction of new technologies, others consist of strategic thinking. There are a number of trends that are reconstructing the way in which people interact with retail brands. While omnichannel is one of the major topics of discussion among industry players, FirstBiz contributor Gautum Kulkarni noted several IT processes that are somewhat under the radar.

1. Customer delivery proposition 
Implementing ecommerce software is a growing practice, prompting more people to purchase goods online. In order to expedite product transportation, merchants are acquiring workforce management tools with automated features.

Many customers dislike the fact that a number of retailers only deliver items during the conventional work week. In order to mitigate this issue, smart logistics administration software creates schedules that abide by government labor standards. For example, the system may rotate truck driver schedules that allow a portion of the staff to work on weekends, while receiving two days off in the middle of the work week.

2. Payment security and processing programs 
Whether a specialty retail company in California or a nationwide merchant, selling goods in foreign markets is becoming more of a reality. This means companies require ecommerce software capable of measuring currency exchanges and keeping transactions protected between endpoints. 

Authorizing credit or debit card numbers domestically carries a risk, but bringing these operations overseas can pose even more dangers. Leveraging payment systems that encrypt card data the minute an order is submitted is essential. When a computer receives authorization, the code should be tokenized so that only the secured payment database can translate the information. 

3. Personalization 
Breaking away from the technological realm, Retail Customer Experience contributor Chris Petersen noted that personalization has become a prevalent element of the retail customer experience. He noted that many specialty merchants, such as Nike, have allowed people to design their own shoes online.

The fact that the athletic brand is willing to produce footwear to a person's exact specifications requires a fundamental readjustment of its production operations. It certainly puts Nike ahead of its competitors as far as delivering tailor-made items goes. If there's one trend shaking customer expectations, it's personalization. 

This entry was posted by Retail Pro on Monday, October 6th, 2014 at 5:44 am .

Although plenty of retail customer intelligence analysts have eagerly predicted the demise of physical shopping, such a time has yet to arrive. 

Instead, enterprises focused on selling specialty merchandise have been leveraging a blend of ecommerce and brick-and-mortar outlets to optimize customer service. Big-name merchants providing a variety of goods to consumers have yet to completely abandon tangible retail storefronts as well. 

Why brick-and-mortar still matters 
Some uneducated critics have gone so far as to say that ecommerce transactions dwarf sales made in physical stores by 80 percent. However, Forbes contributor Laura Heller referenced a statistic developed by the U.S. Department of Commerce, which discovered online purchases accounted for a mere 6.4 percent of total retail sales during Q2 2014.

While this percentage is rising every year, it still doesn't change the fact that an overwhelming majority of people continue to buy goods at tangible locations. So, why is that? Heller outlined several notable factors that impact the shopping experience:

• Many people research goods online and then physically test their usability, wearability or durability at a physical location. Although many online merchants offer free returns, that doesn't mean consumers enjoy the hassle of packaging an item and delivering it back to warehouses. 
• There are plenty of sales "professionals" who irritate customers, but such aggravation is typically caused by the salesperson's social ineptness. On the other hand, there are those who work retail floors with a casual, amiable demeanor, providing their own opinions regarding certain products. This is the kind of experience the typical customer is searching for. 

Something more should be said about the salespeople who go above and beyond. Heller noted that while the Internet can provide a plethora of information, specific data can be difficult to find. She referenced an occasion when she visited a shoe store, during which a customer representative called the manufacturer of a specific brand to provide Heller with more information. 

GameStop still on its feet, still running 
One specialty retail outlet that still maintains relevancy in this day and age is GameStop, which distributed more than $3 billion worth of goods in fiscal 2013 through thousands of its brick-and-mortar stores in the U.S., GameSpot reported. 

While the source also noted that the enterprise announced plans to close 120 stores across the nation, the statement coincided with assertions that it intended to open specialty outlets, such as Spring Mobile and SimplyMac locations. In addition, GameStop Technology Institute SVP Jeff Donaldson maintained the merchant intends to install technology that will make for an even more interactive in-store experience. 

Brick-and-mortar isn't going anywhere, at least for the foreseeable future. 

This entry was posted by Retail Pro on Thursday, October 2nd, 2014 at 4:42 am .

"Big data analytics" and "actionable insights" are two phrases one is likely to encounter when reading an article packed with laudatory comments regarding information analysis. 

Misrepresenting sophistication 
Their prevalence has caused many business professionals to write the technology off as just another piece of software supported by ambiguous buzzwords. Such articles discredit the value in using retail analytics, when in fact such technology supports the following trends:

• Personalization: When an algorithm notices a person has purchased a pull-up bar, a yoga mat, and a set of 15-pound dumbbells, it not only deduces that the customer is interested in fitness, but that he or she engages in endurance and flexibility training. As a result, the solution will recommend a medicine ball and an abdominal wheel.
• Location-based inventory: While it's assumed people living in northern Idaho are more likely to purchase four-wheelers than people in New York state due to the latter region's dense population, analytics may show something different. While people residing in NYC, Albany, Syracuse, Rochester and other metropolises will probably refrain from purchasing quads, those in the Adirondacks may elect to buy such vehicles. While humans assume, software ascertains. 
• Customer service: Sensors connected to complex analytics programs can distinguish browsing behavior from knowledgeable shoppers based on the way customers move within a store. While someone moving slowly down an aisle may be "just looking," a person walking fast likely knows what he or she wants. 

For broad-stroke analytics endeavors, the kind that involve a merchandising outfit transforming its operations to achieve strategic growth, careful planning and organization is needed. IEDP noted the conclusions of Galit Shmuéli, a professor at the Indian School of Business who maintained executives shouldn't expect to encounter flawless processes. 

"The Internet is filled with a lot of emotional people, and there are many who use social media platforms to express those feelings," said Shmuéli, as quoted by the source. "Managerial support must extend to allowing failures, as long as they result in lessons learnt."

Of incredible value 
Merchants are recognizing the success of retail customer intelligence deployments and other such solutions. According to a report conducted by MarketsandMarkets, the retail analytics market is anticipated to increase from $1.88 billion in 2014 to $4.4 billion by 2019.

One of the main reasons why such technology is being valued so highly is because cybercrime and other forms of theft have become more prevalent in the industry. It is believed data analysis will reveal ways in which such deviant behavior can be deterred. 

This entry was posted by Retail Pro on Monday, September 29th, 2014 at 5:27 am .

Given the ubiquity of digital media, some may be befuddled to learn that a select few online specialty retail companies are setting up physical stores. 

The uninitiated would perceive such a move as somewhat of a step backward, but those familiar with merchandising know how much brick-and-mortar venues contribute to brand development.

People want to purchase specialty products (hunting apparel, running shoes, Olympic lifting items, etc.) from businesses that have a tangible presence in commerce. Basically, physical outlets provide consumers with the chance to validate the quality of particular goods. Depending on whether a business passes such a test, its reputation will be affected significantly. 

A different take on brick-and-mortar
Specialty merchants aren't simply setting up run-of-the-mill stores and hoping everything falls into place. They rely on retail customer intelligence tools to help them deduce what kind of experience people are looking for. When a consumer visits a tangible store, he or she is looking to develop a certain attachment to the items on display. 

According to Street Fight Magazine, that's exactly the type of environment men's apparel brand Bonobos is trying to create. The source noted the brand originally started as an ecommerce venue, but then expanded into the physical space to allow its customers to interact with its products. 

However, Bonobos isn't taking the traditional brick-and-mortar route. While Bonobos' venues allow customers to test fabric and try on clothes, the purchases themselves are processed as ecommerce orders, meaning items are delivered days later. The source maintained this allows Bonobos to sell a wider variety of inventory at a fraction of the price.

The shift to ship-from-store 
Essentially, the specialty men's apparel store is leveraging its new stores as order fulfillment centers. This strategy is similar to the one Macy's has adopted, according to Fortune. Macy's has taken a different route than Bonobos in that it began as a brick-and-mortar chain and is now investing in ecommerce. 

In order to support its online operations, Macy's is leveraging its tangible locations to satisfy purchases made on its websites. In addition, the retailer is allowing its stores to pool inventories to ensure shortages don't occur. 

"The customer is driving innovation," said Macy Chief Omnichannel Officer RB Harrison, as quoted by Fortune. "She or he is increasingly expecting a seamless experience between a digital and in-store environment." 

As far as how omnichannel strategies will progress in the future, it depends on how creative executives are. The more versatile and open-minded they are, the better they'll be able to satisfy consumers with high expectations. 

This entry was posted by Retail Pro on Thursday, September 25th, 2014 at 2:18 pm .

When merchants gain complete visibility over their supply chains, they believe they're inherently executing an omnichannel strategy.

Don't make assumptions
Just because a clothing enterprise knows exactly where a specific ecommerce order is located and how many designer jeans are held in a Grand Rapids, Michigan warehouse, doesn't mean it's running multichannel activities.

If merchandisers want to achieve this level of operability, they'll need to develop and initiate a retail inventory management plan. Knowing how to allocate goods in response to store demand and prioritize trucking routes to expedite ecommerce deliveries doesn't come with simply implementing a real-time tracking system.

Be proactive
Before having a clear idea of what decisions need to be made, it's important that distribution managers ask the appropriate questions. Retail Info Systems News contributor David Landau outlined several, all of which relate to improving cross-channel sales and creating an omnichannel customer experience:

1. Do warehouses replenish stock in order to satisfy both ecommerce and regional store orders, or are they designed to accommodate one or the other?
2. Do outlets possess the IT infrastructure (mobile devices, sensors, shipping label creators, inventory software) to keep fulfillment updates relevant to shopper demand?
3. Do stores have shipping docks at which small trucks can quickly deliver products to customer doorsteps?
4. When carrying out an omnichannel fulfillment strategy, do stores have the labor necessary to complete day-to-day operations? If so, does the workforce have the required assets to execute tasks in a cost-efficient manner?

Once these questions are adequately answered, the retailer can begin making applicable adjustments to the supply chain. While specific changes need to be made, a much-needed holistic adjustment is the dismantling of segregated processes. Any responsibilities defined by ecommerce and store fulfillment must be reconfigured to include both.

Be flexible
Even in omnichannel strategies, many merchants choose to fulfill store and ecommerce needs based on location. Initially, this approach makes sense because it reduces transit time and shipping expenses. However, Apparel Magazine posited an interesting situation.

Suppose an item is particularly popular in California, but a warehouse in Ohio has a surplus of that specific product. In order to liquidate as many items as possible, it makes more sense to fulfill California store needs with the inventory held at the Ohio distribution center.

That's where logistics come into play. While setting fundamental operational plans is a good measure to take, failing to make necessary adjustments simply because it's "not the way we do things" isn't conducive to implementing an omnichannel strategy.

This entry was posted by Retail Pro on Wednesday, September 24th, 2014 at 11:23 am .