Johannesburg, 08 Jul 2014
Gone are the days when shopping meant jumping in the car, driving to the mall, and going from shop to shop to see what was available, and who offered the best prices. These days it's as easy as whipping out your smartphone, or going on the Internet to see what is on offer, and what the best specials are. Not only in your city, but anywhere in the world.
Gerald Naidoo, CEO of Logikal Consulting says technologies such as mobility and social media have caused a paradigm shift in the competitive landscape in retail.
"The retail sector is enjoying a radical transformation that address new customer buying behaviours, technologies and channels. E-commerce has grown exponentially, and has driven a variety of new channels beyond physical shops. Products are being bought online, over the phone and on mobile devices, and retailers are now in a position where they need to co-ordinate and manage transactions and communications across myriad shopping channels, and form a single view of consumer behaviour, if they hope to offer their customers a relevant and timely shopping experience that is personalised to them."
Naidoo says because of this, the retailer not only needs to have access to a whole lot more data, he needs to understand how to harness that data to make it meaningful.
"A solid computing platform and the right software can glean insights from this mountain of data to deliver well-timed, relevant offers to customers, irrespective of their preferred shopping channel. At the same time it can simplify supply chain management and relationships with vendors."
The other side of the coin, says Naidoo, is how to keep those customers coming back. "This is where campaign management and loyalty programmes come in, keeping the brand top-of-mind with customers."
For example, co-ordinating location data from mobile platforms with customer profiles, and then co-ordinating these with social media entries, would permit retailers to identify customers in the area, and target them specifically with customised offers, he explains.
"Having the right systems in place would make this child's play," he says. "For example, you are on your way somewhere in the centre, and you will pass one of my shops. What if I sent you an invitation to come and use free wi-fi for an hour, or enjoy a cup of coffee on me, or even a discount on a favoured item, if you visit within the next 12 hours?"
He says Logikal offers systems that allow retailers to structure and deliver those kinds of offers. "IMB Campaign, formerly Unica Campaign, offers systems that can run big data analytics in real time to convert data into insights that could lead to an instant, personalised customer offer. With this solution, retailers can quickly and cost-effectively design, execute and measure customer-driven communication strategies across all of their channels, online and offline."
"There is no doubt that in the future, consumers are going to be marketed to and segmented as individuals, and mobile devices will be invaluable to in-store marketing and product pushes. Buying behaviours will be key to retailers, and will drive their supply chain management strategies and even potentially convenience shopping, where the retailer will know what you bought and offer you delivery, or give you a free gift or special offer, targeted to you, as an individual."
Understanding customers' buying behaviours is key here, he says. "This highlights opportunities to cross-sell to customers and obtain a higher share of their wallet and increased overall margin for things like premium or luxury goods."
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