Intelligent retail business transformation

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“In the world of excess supply of goods, the customer has too much choice to choose from when they want to buy. Whether shopping for daily necessities or for fashion clothing, today’s empowered consumers are looking for clear and compelling differences among retailers. This challenges Retailer to develop a clear and compelling Branding Image and needs some measurable marketing tool to convert the store traffic into sales as well as they are able to proactively targeting their customer wants and needs to attract the return revisit.Retailer should learn from Retail Bank which have started to build their “Card” system as their core competence from 80’s century. Prepaid Card solution would be the same “Card” weapons which are for Retailer to leverage. This book is to discuss why and how Retailer should use different type of prepaid card for different business needs.

Transcript of Intelligent retail business transformation

  • 1. CERIDIAN STORED VALUE SOLUTIONIntelligent Retail BusinessTranformationKelvin TaiIn the world of Supply > Demand, how Retailer can drive the customer behavior

2. Chapter 1 - Mission StatementEnable Retail BusinessTransformation 3. For Retailer Brandingproduct selling is equally importance with customershopping experience. Retailer needs to interact with their customerintelligently and better shopping experience2 4. Chapter 2Today Retailer Challenges 5. TodaySection 1Today Retailer Challenges- SUMMARY1. Increasing Operating Cost in China2. Lack of Measurable Marketing Tools3. Lack of cost effective tools to increase Actual Spending4. Decrease of Customer Loyalty to the BrandP.S. Different Retailer would face different challenges,I am here to list out the common challenges4 6. Interactive 2.1Today Operation Cost Increase- Stock Turnover ChallengeIncreased Competition & Economic slow down caused theinventory pilling upCase Study 1 25 7. Interactive 2.2 Lack of Measurable ToolsToday - Unknown ROI of Marketing CampaignLack of data available, It is more like relying on intuition feeling whendoing budget and planMarketing ResourceMisallocation1 26 8. Interactive 2.3Interactive 2.4 Low Response rate for Voucher Need to Attract Customer TrafcCustomer RevisitProactive Targeting 1 2 1 2Today - Myth of drive store trafc & conversion rate & Basket Value Litte empirical evidence exists on the impact of trafc on store performance and the increase of basket. 7 9. Interactive 2.5 Next Generation Today- Myth of winning customer love Many Retailer nd their own loyalty card but 1. Hard to tell how success because lack of data tracking and analysis 2. Simply giving rewarding points or couponing 80/20 Rules still prevail Without the business intelligent, you cannot shoot the Cupids arrow right to the customer heart. 12 8 10. CREDIT CARD IS A POWERFUL TOOLSection 2 1. Branding & Loyalty Every Bank will issue their Credit CardLesson from Retail Banking 2. Protable Product 3. Cost EffectiveCross Selling tool Retailer might think : We are not the bank, we sell the productWhat does thismean to me? Weare not the bank 9 11. With Prepaid Card, Retailer can do almost the same as what Retail Bank do...Retail Gift Card Promotional Card Loyalty CardEye ball catching card design with Brand logoPromotional Card vs Coupon the response rate Loyalty Card is the powerful cross sale toolattract the people to buy as gift to othersis exceptional higherwith business intelligence Why Retailers are leveraging the Prepaid Card Solution to empowerProactive and Accurate marketing with business intelligenceMeasurable ROI to maximize the limited marketing budgetLever to increase in sale and basket value 10 12. Retailer FutureNot Just ERP or other The nancial performance of a retailer relates to its ability toattract trafc into its stores and convert the incoming trafc intosales protably.No Customer = No BusinessInteraction with you customer is the Key 13. Section 1Chinese Customer Some Statistic from BCG report: 1. The no of Middle Income level customer in China will growfrom 50,000,000 to 140,000,000 in 2020 but will more geo-graphically scattered. 2. 80/90 generation are the golden group, which have the great-est potential to spend more 3. In Major City, Female shows a strong growth on spending and Lorem Ipsum dolor amet, consecteturexpect to weight over Male in future; In Minor City, Male maystill slightly over Female in Spending 4. Retailers need to have wider city/province coverage in 2020but their preference and needs are widely different 2011 Q4 AC Nelson reported the index of consumer sentiment in China is rising to 108 points, 19 points higher than other countries12 14. Image 3.1 Image 3.2 In the 40/50s, the chinese people need to ght for buying goods but it isNowadays, Chinese people have too many choice to choose from no long existed nowadaysWhat do these meant to Retailer? Leverage technology to understand Improve the payment and shopping Multi-Channel Sales and Marketingyour customer needs and proactiveexperienceto let your customer having unitymarketing with business intelligentexperience13 15. Section 2Learnt from Retail BankingRetailer Future Please refer to Chapter 2, Section 2= Info Science? Retailer should treat their own Merchant Label Card as one oftheir core business strategy.Image 3.3 Merchant Label CardDifferent type of Prepaid card have their own purpose, but ultimately, itis to increase the protability.14 16. Value Proposition: Case Study - One of the famous Fashion & Apparels retailers Being the Lever toLift of incremental Gift Card is a over RMB$1,000,000,000 businesssales Merchant Cash$150,000,000Machine Sales Data Tracking $100,000,000Interactive 3.1 Lift is the lever of boosting sales$50,000,000 2009$02010Germany USInteractive 3.2 Cash is King Cash is King Basket ValueLIFT AMOUNT Interest Income15 17. Value PropositionCase Study : - One of the famous Fashion & Apparels retailers Image 3.4 Promotion Card drive exceptional sales performance Proven tool for store over coupon trafc driver and sale conversion Being the Lever to Lift of incremental salesInteractive 3.3 Driver for Grand Opening Interactive 3.4 Driver for New Product LaunchDriver for Store Trafc Driver for New Product SalesLIFT is exceptional Exceptional Store Trafc 16 18. ValueProposition Case Study - One of Specialty Retail (e-card only) Enable AccurateTarget marketingClient Result Drive forcustomer behaviorRedemption Rate30% Better payment LIFT Ratio642%experienceIncrease in Sales US$30,000,000No of Return Visit> 30,000Interactive 3.5 Drive for sales by proactively demand creation Interactive 3.6 Data Mining of Customer Behavior Return VisitDrive CustomerBehavior Proactive TargetAnalysis of Customer Marketing17 19. Chapter 4About Ceridian Stored Value Solution 20. 20+ experience in Prepaid SolutionSection 1World Leading PrepaidSolution We are a World Leading Prepaid solution service company, serving different customers in different retail industry all over the world ACHIEVEMENT SUMMARY 1. Global Provider: 650+ clients across 45 countries 2. 550 MM+ card production ; 1.2 Billion transaction processed 3. More Top 100 retailers than anyone else Ceridian SVS has been the pioneer since 1992 in providing prepaid solution service for 650+ customer worldwide in which 6 of top 10 retailers in USA19 21. Image 4.1 SVS clients are all over the world and in different retail industry20 22. About Arthor : Kelvin Tai Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution xxi 23. xxii