Retailers Who Offer Internet of Everything Experiences Can Capture a 15.6 Percent Profit Improvement
NEW YORK, NY--(Marketwired - Jan 12, 2015) - National Retail Federation 104th Convention & Expo, Booth 2052 - The digital consumer has come of age and expects a rich palette of retail experiences that provide ever-increasing value and convenience both in-store and out. Today, Cisco (
Key Highlights
Customers Want a Convenient, Contextually Relevant Shopping Experience
The fifth annual Cisco® Consulting Services retail survey found that most shoppers want innovations that improve convenience and efficiency, extending beyond personalization into hyper-relevance. Hyper-relevance delivers value -- such as greater savings, efficiency, or engagement -- in real time throughout the shopping lifecycle, using analytics to determine the experience that best suits the customer's context (where he is, what she is looking to accomplish in that moment). Analytics helps retailers track in-store patterns and use existing video technology to determine, for example, where shoppers are spending more time in the store and which shelves need restocking, information that can immediately be used to improve shoppers' experience and drive better store performance.
When asked to identify primary areas for in store retail improvements, 39 percent of consumers identified the process of selecting and purchasing goods -- for example, having the products they want in stock and an efficient checkout process. By contrast, 13 percent chose a more personalized shopping experience. That is not to say that customers don't want personalization at all, but consumers made it clear that targeted offers must be contextual, relevant, and easy to participate in.
Digital Consumers Exhibit Strong Interest in IoE-Enabled Experiences, Creating Savings, Efficiency and Engagement
To help provide guidance to retailers on where and how to make their strategic innovation investments, Cisco tested 19 different shopping concepts with consumers in its survey. Together, these provide a snapshot of consumer receptivity to new IoE-enabled innovations in the shopping experience. These use cases are at the heart of the IoE value that is up for grabs for retailers in terms of revenue uplift and employee productivity. For an illustrative $20 billion retailer, these use cases drive a total gross annual value opportunity of $312 million and a 15.6 percent improvement in profitability.
Product Delivery
Augmented Reality
Mobility Enabled Shopping
Interactive Digital Signage
IoE is shaking up the competitive dynamics in nearly all industries -- particularly retail, which accounts for $1.5 trillion of the total private sector Value at Stake. Much of the Value at Stake for retail will be generated by innovations that depend on real-time analysis of data that is captured at the edge of the business from sensors, cameras and mobile devices. To meet the needs of new digital consumers and attain their potential Value at Stake, retailers need to increase their focus on innovations that deliver hyper-relevance, build a dynamic infrastructure and agile processes that enable hyper-relevance and develop new business models that drive innovation and hyper-relevance.
Cisco offers a portfolio of mobility, interactive digital services platforms, video collaboration, analytics, and cloud computing solutions that help retailers provide more efficient and more engaging shopping experiences to their customers. These solutions will be demonstrated at the National Retail Federation Convention & Expo (Cisco Booth 2052).
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