Modern retail technology has made it easier for merchants to collect large amounts of data about customers and their shopping habits. By consolidating and analyzing this information, retailers can streamline their store operations and optimize their marketing strategies. Here are three types of insights that business intelligence can provide:

• Sales trends. Merchants need to know which items are trending and predict what customers will want to purchase in the near future. Nathan Roberson, editor for The Marketing Robot, explained in Business2Community that retail reports can break down data according to many metrics, providing merchants with insights into their target markets. Upshot's trend report noted that marketing in the moment with real-time analytical information is increasingly central to business success.
• Customer profiles. Getting to know patrons helps merchants provide relevant services and improve their marketing strategies. It also facilitates personalized campaigns, which Upshot recognized as one of the key retail trends for 2014.
• Store operations. Sales and inventory data can help retailers make better decisions, such as warehouse organization, supply chain and employee performance, Roberson said. Managers can also use insights to design more effective displays. For example, they can coordinate items that shoppers frequently buy at the same time.

This entry was posted by Retail Pro on Monday, February 3rd, 2014 at 6:56 am .

Online retailers and brick-and-mortar shops alike depend on good inventory management to run an efficient business. Having the products customers want, when they want it, can be the determining factor in who makes a sale. Because warehouse space is limited and shipping takes time, merchants need to optimize their inventory processes.

David Sasson, president and co-founder of overstockArt.com, described the challenges and best practices for effective inventory management in Practical Ecommerce. It's important to hold stock, he noted, but usually inefficient to buy a lot of items in bulk. In fact, retailers have the highest return on investment when they maintain revenues while holding the least inventory.

Businesses can use retail customer intelligence to anticipate what consumers will want to buy before the demand peaks. In Entrepreneur magazine, Ronald L. Bond, a retail business owner and consultant, advised store managers to watch for indicators such as:

• High-selling items with limited stock availability
• Slow sellers and seasonal goods that can be replaced with more popular items
• Hot sellers with rising sales

Retail management software can help merchants identify trends and better track the inventory they have on hand. Integrated systems can also take advantage of technology such as RFID tags to maintain more accurate records of product location.

This entry was posted by Retail Pro on Sunday, February 2nd, 2014 at 4:11 pm .

For omnichannel retail marketing, consistency is key. Customers want to find the same deals, prices and service regardless of how they make a purchase. In addition to integrating their retail management software across channels, merchants can provide consumers with a more seamless experience by making sure their online presence is consistent for all devices. Responsive website design is one option that retailers should consider as mobile becomes increasingly important.

Mobile presence central to marketing
According to Strategy Analytics, mobile phone sales have increased about 5 percent each year, reaching 1.7 billion units in 2013. As smartphone and tablet use becomes more pervasive, shoppers are turning to their devices to look up stores, browse offerings, read emails and make purchases. For that reason, merchants that want to stay ahead of the competition need to make sure their Web presence is convenient and appealing to mobile users.

When creating a mobile presence, retailers must make sure it's integrated with the rest of their Web presence and retail technology. According to Retail Technology Review, merchants need to ensure that customers can see up-to-date information about inventory, prices, deals and orders on any platform. Consumers expect the same procedures and policies for making purchases, regardless of the channel they're using. Unfortunately, the source noted, less than half of retailers use integrated business processes and technology.

Responsive design can help simplify online presence
One way to improve multichannel integration is to make sure websites are consistent across devices. For some retailers, responsive design is the best option. Responsive websites automatically adjust based on screen size, device and locality, providing the optimal Web experience on any devices, without requiring merchants to maintain individual sites for each platform. This helps to ensure that price changes, inventory updates and store news are all presented in the same way for all devices. Responsive design also helps websites to appear higher in Google search results, Business2Community noted.

At the National Retail Federation (NRF) Convention, held January 12-15 in New York City, industry leaders discussed the pros and cons of responsive design. The development process can take longer, and might be challenging for stores with a lot of SKUs, said Jay Dunn of Bare Necessities, according to the NRF blog. Other retailers use a combination of responsive design, mobile websites and apps to provide the best information for customers. For example, the Mall of America uses responsive design for its main site but creates unique, simple sites for promotions that change frequently.

This entry was posted by Retail Pro on Friday, January 31st, 2014 at 3:07 am .

Retailers devote significant portions of their marketing budgets to converting customers, but they should also focus on maintaining relationships with patrons. Research has shown that the greatest amount of business comes from loyal shoppers, not from impulse buyers or browsers. Loyalty programs are a common tactic for drawing customers back again and again, and these strategies can be enhanced with retail customer intelligence.

According to eMarketer, customers now expect greater personalization in retail offers and services. With new technology, merchants are able to tailor their marketing messages and suggest personalized deals to consumers based on their shopping history and preferences. This same approach can improve loyalty programs. The source pointed to RIS News findings that indicated the majority of North American merchants plan to invest in the near future in behavior analytics as well as pricing and communications personalization for their loyalty marketing programs.

Jim Daleen, CEO of AppSuite, also recommended making loyalty services more personal. A sophisticated program, he said, can offer shoppers customized benefits based on information like birthdays and spending milestones. These types of rewards don't just provide customers with incentives – they also make customers feel appreciated and recognized, he noted. 

High-end retail technology can help merchants revitalize their loyalty programs by making it easier to sign up customers and gather information about shoppers' purchases.

This entry was posted by Retail Pro on Thursday, January 30th, 2014 at 12:28 pm .

The new era of retail marketing isn't about ecommerce eclipsing traditional stores – it's about merchants taking advantage of retail technology to engage consumers in new and exciting ways. Innovative resources allow retailers to be present to customers like never before, but they need to develop new marketing strategies to stay competitive.

According to the Orange County Register, shoppers aren't visiting malls any less frequently, but they have changed the way that they visit stores. Instead of browsing and buying on impulse, customers are more likely to research online before they leave for a shopping center. Therefore, businesses need different strategies to attract consumers to their stores. The source noted that many retailers are expanding their displays to create eye-catching visuals and using technology to foster an interactive, enticing experience for shoppers.

"Online is an incredible sales tool, but the store still holds a key part in the whole brand identity where customers can engage with the brand on a different level than they would with the website," R.J. Abbott, Oakley's director of global visual merchandising, told the newspaper.

As the 2014 National Retail Federation Convention, held January 12-15 in New York City, made clear, customers appreciate convenient services like mobile POS systems and tablets where they can look up more information on the spot.

This entry was posted by Retail Pro on Thursday, January 30th, 2014 at 6:21 am .

Retail customer trends and recent reports point to rising consumer confidence. According to The Conference Board's monthly Consumer Confidence Survey, Americans' confidence in the economy and business conditions rose in January for the second month in a row, reaching the highest point since August 2013. The Consumer Confidence Index rose from 77.5 percent in December to 80.7 percent this month, and the Present Situation Index increased to 79.1 percent from 75.3 percent.

"Consumers' assessment of the present situation continues to improve, with both business conditions and the job market rated more favorably," said Lynn Franco, director of economic indicators at The Conference Board. "All in all, confidence appears to be back on track and rising expectations suggest the economy may pick up some momentum in the months ahead."

Higher confidence in the economy is good news for retailers, who also saw their sales increase over the last few months, Bloomberg News reported. The Department of Commerce Monthly Wholesale Trade report, released on January 10, showed that November sales were up 1.0 percent from October and 5.5 percent year-over-year. In addition to holiday shopping at the end of 2013, cold weather helped spur business because shoppers needed to buy warm outdoor clothing and other seasonal products, Bloomberg noted.

This entry was posted by Retail Pro on Wednesday, January 29th, 2014 at 12:27 pm .

The malicious malware that hackers used to attack Target has been tied to a number of recent breaches in retail stores, including Neiman Marcus and Michaels Company, Inc.. On January 17, the FBI issued a report to leaders in the retail industry, warning that the risk for continued attacks is high.

"We believe POS malware crime will continue to grow over the near term, despite law enforcement and security firms' actions to mitigate it," read the FBI statement, according to Reuters. "The accessibility of the malware on underground forums, the affordability of the software and the huge potential profits to be made from retail POS systems in the United States make this type of financially motivated cybercrime attractive to a wide range of actors."

The malware strain used in these attacks allowed criminals to gain network access undetected. According to Reuters, the FBI believes that one variant of the software can be updated remotely, making it more difficult for retailers and the government to guard against it.

Consumer response and expectations
With all of the news about data breaches in the retail industry, consumers are highly aware of the problem. However, the issue has not significantly deterred them from shopping at stores. In fact, The Associated Press (AP) reported, customers remain more concerned about security in ecommerce software and mobile transactions.

The AP polled people to assess their reaction to the recent data breaches. It found that the majority of Americans are extremely concerned about personal data since the breach, but haven't changed their shopping habits or taken significant steps to protect themselves. For example, only 37 percent have tried to use cash instead of cards, the poll found, and 41 percent have checked their credit score.

While the source attributed these results to Americans accepting data breaches as a part of life, it also points to the fact that there's relatively little that consumers can do to avoid using credit cards and having their data collected. Therefore, the expectation is that retailers, banks and security experts should have the greatest responsibility in protecting data.

Tips for keeping POS systems secure
Even if customers are not dissuaded from shopping because of security concerns, merchants should take this opportunity to make sure their systems are as secure as possible. Having up-to-date POS software is a good place to start. In addition, Security Dark Reading recommended merchants take the following steps for defending POS systems:

• Use strong passwords
• Update POS software applications
• Install a firewall
• Use antivirus
• Restrict access to the internet
• Disallow remote access

This entry was posted by Retail Pro on Wednesday, January 29th, 2014 at 10:57 am .

With big data capabilities, merchants are increasingly using retail business intelligence to improve the shopper experience in their stores. To attract customers and engage them after their visit, brands are aiming to offer interactive experiences and personalized assistance. 

The rise in emphasis on the customer experience inspired the Temkin Group to name 2014 "The Year of Empathy," Retail Customer Experience reported.

"As companies increasingly focus on customer experience in 2014, they will recognize that their organizations lack a deep understanding and appreciation for their customers," said Bruce Temkin, managing partner of Temkin Group, according  to the source. "In 2014, we'll hear more executives talking about the need to build 'empathy' for customers."

Empathy includes anticipatory service, such as personalized offers driven by retail customer intelligence, and greater integration across channels to produce a seamless experience for shoppers. In an attempt to bolster consumer engagement, retailers are imagining possible frustrations and seeking innovative solutions, San Jose Mercury News reported. For example, merchants can use shopping trend data to improve their store layouts and mobile POS systems to make checking out easier. Interactive technology, such as virtual dressing rooms, turns brick-and-mortar shopping into a fun encounter.

This entry was posted by Retail Pro on Tuesday, January 28th, 2014 at 9:12 am .

On June 13, 2014, new regulations will come into effect for retailers in the European Union. The Consumer Rights Directive aims to simplify and harmonize rules for information rights, payment consent, credit card surcharges and buyer obligations. The Guardian noted that it's all part of an effort to make it easier for merchants to enter new markets and gain customers, but business owners need to verify that their ecommerce software and retail technology comply with the new guidelines.

The full report on the Directive is available on the United Kingdom Parliament website, but a number of commentators have identified key areas for retailers. Most of the changes have to do with the way businesses finalize sales with customers, particularly for online transactions. Therefore, merchants should make sure their retail software and websites are updated accordingly to ensure compliance. For example:

• Confirm order buttons must indicate a contractual agreement to pay. The Guardian explained that this measure protects consumers from accidentally entering subscription services.
• Clear pricing, including extra fees. Customers will not be held responsible for charges that are not explicitly disclosed in the final charge, BDaily emphasized.
• 14-day minimum for returns. Retailers must provide full refunds, including shipping costs unless otherwise noted, if shoppers change their minds within two weeks of receiving the product.

This entry was posted by Retail Pro on Tuesday, January 28th, 2014 at 5:39 am .

In the retail marketing world, omnichannel was one of the biggest trends of 2013. In the new year, its importance has only continued to grow as industry leaders explore additional ways to keep customers engaged and to use Big Data for personalized marketing. In particular, retailers are focusing on ways to create a more seamless experience for consumers. This means that to customers, the channels disappear into the background.

"Consumers don't think in terms of 'channels,' and neither should retailers," Lori Schafer, SAS retail executive advisor, explained at the 2014 National Retail Federation Convention in New York City, according to Just-Style. "They think 'I need to buy shoes today,' rather than, 'I'll buy shoes from this retailer's website instead of driving to their store today.' The retailer who moves fluidly in this channel-agnostic environment wins."

The most successful omnichannel merchants integrate their channels with comprehensive retail management software so that consumers can make purchases online, on mobile devices, in the store or over the phone just as easily. Not only does consistency over channels improve trust, it also simplifies store operations and increases opportunities to engage customers, Business2Community advised. For example, allowing customers to use coupons from their mobile devices in stores and online creates multiple ways for them to take action on deals.

This entry was posted by Retail Pro on Monday, January 27th, 2014 at 5:46 am .