BIG DATA ON THE SHOP FLOOR FEATURE Information Constraint


Despite the innovative ideas, most retailers are fundamentally constrained by the continued reliance on relational database (RDBMS) technology that delivers decent operational analytics but nothing more. Instead, retailers rely on an annual exercise of more complex basket analysis to determine store performance by product, by layout, and local demographics. The result? In store activity is based on last year’s performance, not today’s customer behaviour.


This is clearly not sufficient in an era of fast changing consumer behaviour. From showrooming and click & collect to new buying habits and brand loyalty, consumers are fundamentally changing the way they interact with retailers. Retailers need to change – and fast. That means not only gaining an insight into these critical issues at head office but empowering those on the shop floor to respond in real time. And that means working from the same, single data source – not providing marketing, sales and operations with separate data warehouses; and moving beyond aggregate data to true online analytics that combines both structured and unstructured data sources.


Real-Time Performance


With 15 minute updates on key issues such as product sales, margins, performance against sales targets that day, social media sentiment, even weather forecasts, a department manager can make decisions that deliver serious bottom line value. For example, if a promotion is performing really well – based on up to date figures on both sales and margin - the product manager can decide to extend the promotion for another hour or two.


Delivering insight to people on the shop floor will enable them to make the decisions that will truly change the way customers eperience that retail environment.


Alternatively, if a department is still 2% below its daily sales target at 5pm on a Friday, the General Manager can be on the shop floor, looking at the performance dashboards on a tablet and responding immediately: getting all available staff into that department, actively engaging with customers and undertaking the intense selling that can change profitability in just a few hours of trading. By close, the department has met its sales target. Given the marginality of the retail environment, multiply this up by hundreds of stores and the value of well-targeted activity can make the difference between a good week and a bad one.


Essentially, by mobilising those on the shop floor, decisions regarding the store layout, product performance, the impact of promotions, marketing and TV campaigns are being reviewed and considered continuously – at store level, by the individuals in a position to make the decisions that can make a difference. The more granular the information and the more frequently it is updated, the more successful each manager, each store and each retailer is going to be.


Engaging the Customer


Clearly operational analytics is really important – retailers need to ensure the right products are at the right price, on the right shelf and at the right time. But in this market, retailers need also to improve customer engagement: and the only way to do that is to ensure every part of the business is working together and that includes the shop floor.


Improving the customer experience is not just about innovative concepts. It is about changing the mix of what is in store – not based on yesterdays performance or some annual analysis of store performance and demographics, but as a reflection of actual customer behaviour both in that store and online, via social media, in real-time.


Delivering insight to people on the shop floor will enable them to make the decisions that will truly change the way customers experience that retail environment. By harnessing big data and providing relevant, trusted and up to date information via mobile to the shop


floor, retailers move beyond playfully innovative ideas and take the next step in delivering a truly responsive and innovative customer experience.


The Zizo Solution


Zizo provides a service and a solution, which enables retailers not to have to do the hard work of handling the data. The value in data is all about the outcome, how we use it to improve on what we do. What Zizo will do is provide a way of looking at the data, which will change the way of doing business and reacting to the market. Big data has a place for everyone, traditionally it has been very cost prohibitive for people to get involved. Larger chain stores may have some budget available to build systems and train people, but of course, smaller businesses can have some data or some information. A huge change that’s happening now is that a number of data is being made available. Known as open data, this includes information from the government, councils and institutions in general. Zizo has access to these feeds and can pool information together with data from standard COS Systems, delivery and orders and social media.


www.zizo.co.uk Tomorrow’s Retail Floors Spring 2015 | 29


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