Intelligent retail business transformation

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In the world of Supply > Demand, how Retailer can drive the customer behavior CERIDIAN STORED VALUE SOLUTION Intelligent Retail Business Tranformation Kelvin Tai

description

“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

Page 1: Intelligent retail business transformation

In the world of Supply > Demand, how Retailer can drive the customer behavior

CERIDIAN STORED VALUE SOLUTION

Intelligent Retail Business Tranformation Kelvin Tai

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Chapter 1 - Mission Statement

Enable Retail Business Transformation

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“For Retailer Branding,product selling is equally importance with customer shopping experience. Retailer needs to interact with their customer intelligently and better shopping experience”

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Chapter 2

Today Retailer Challenges

Chapter

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Section 1 Today - SUMMARY

1. Increasing Operating Cost in China

2. Lack of Measurable Marketing Tools

3. Lack of cost effective tools to increase Actual Spending

4. Decrease of Customer Loyalty to the Brand

Today Retailer Challenges

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P.S. Different Retailer would face different challenges, I am here to list out the common challenges

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Today - Stock Turnover Challenge

“Increased Competition & Economic slow down caused the inventory pilling up”

Operation Cost Increase

Case Study

Interactive 2.1

1 2

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Marketing Resource Misallocation

Lack of Measurable Tools

Interactive 2.2

1 2

Today - Unknown ROI of Marketing Campaign

“Lack of data available, It is more like relying on intuition feeling when doing budget and plan”

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Proactive Targeting

Low Response rate for Voucher

Interactive 2.3

1 2

Customer Revisit

Need to Attract Customer Traffic

Interactive 2.4

1 2

Today - Myth of drive store traffic & conversion rate & Basket Value

“ Litte empirical evidence exists on the impact of traffic on store performance and the increase of basket”.

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80/20 Rules still prevail

Next Generation

Interactive 2.5

1 2

Today - Myth of winning customer love

Many Retailer find 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

“ Without the business intelligent, you cannot shoot the Cupid’s arrow right to the customer heart.”

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Section 2CREDIT CARD IS A POWERFUL TOOL

1. Branding & Loyalty

2. Profitable Product

3. Cost Effective Cross Selling tool

Lesson from Retail Banking

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What does this mean to me? We are not the bank

We are not the bank, we sell the product

Retailer might think :

Every Bank will issue their Credit Card

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Why Retailers are leveraging the Prepaid Card Solution to empower

Proactive and Accurate marketing with business intelligence

Measurable ROI to maximize the limited marketing budget

Lever to increase in sale and basket value

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Eye ball catching card design with Brand logo attract the people to buy as gift to others

Retail Gift Card

Promotional Card vs Coupon the response rate is exceptional higher

Promotional Card

Loyalty Card is the powerful cross sale tool with business intelligence

Loyalty Card

With Prepaid Card, Retailer can do almost the same as what Retail Bank do...

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Retailer Future

Interaction with you customer is the Key

Not Just ERP or other

No Customer = No Business

“ The financial performance of a retailer relates to its ability to attract traffic into its stores and convert the incoming traffic into sales profitably.”

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Some Statistic from BCG report:1. The no of Middle Income level customer in China will grow

from 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 expect to weight over Male in future; In Minor City, Male may still slightly over Female in Spending

4. Retailers need to have wider city/province coverage in 2020 but their preference and needs are widely different

Chinese Customer

Section 1

2011 Q4 AC Nelson reported the index of consumer sentiment in China is rising to 108 points, 19 points higher than other countries

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• Leverage technology to understand your customer needs and proactive marketing with business intelligent

• Improve the payment and shopping experience

• Multi-Channel Sales and Marketing to let your customer having unity experience

What do these meant to Retailer?

In the 40/50’s, the chinese people need to fight for buying goods but it is no long existed nowadays

Image 3.1

Nowadays, Chinese people have too many choice to choose from

Image 3.2

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Learnt from Retail Banking Please refer to Chapter 2, Section 2

“ Retailer should treat their own ‘Merchant Label Card’ as one of their core business strategy.

Retailer Future = Info Science?

Section 2

Different type of Prepaid card have their own purpose, but ultimately, it is to increase the profitability.

Image 3.3 Merchant Label Card

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LIFT AMOUNT

Basket Value

Interactive 3.1 Lift is the lever of boosting sales

Value Proposition:

• Being the Lever to “Lift” of incremental sales

• Merchant “Cash Machine”

• Sales Data Tracking

$0

$50,000,000

$100,000,000

$150,000,000

20092010

Gift Card is a over RMB$1,000,000,000 business

Germany US

Case Study - One of the famous Fashion & Apparels retailers

Interest Income

Cash is King

Interactive 3.2 Cash is King

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Value Proposition

• Proven tool for store traffic driver and sale conversion

• Being the Lever to “Lift” of incremental sales

LIFT is exceptional

Driver for Store Traffic

Interactive 3.3 Driver for Grand Opening

Image 3.4 Promotion Card drive exceptional sales performance over coupon

Case Study : - One of the famous Fashion & Apparels retailers

Exceptional Store Traffic

Driver for New Product Sales

Interactive 3.4 Driver for New Product Launch

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Value Proposition

• Enable Accurate Target marketing

• Drive for customer behavior

• Better payment experience

Proactive Target Marketing

Drive Customer Behavior

Interactive 3.5 Drive for sales by proactively demand creation

Case Study - One of Specialty Retail (e-card only)

Client ResultClient Result

Redemption Rate 30%

LIFT Ratio 642%

Increase in Sales US$30,000,000

No of Return Visit > 30,000

Analysis of Customer

Return Visit

Interactive 3.6 Data Mining of Customer Behavior

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Chapter 4

About Ceridian Stored Value Solution

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Section 1

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

World Leading Prepaid Solution

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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 USA

“ We are a World Leading Prepaid solution service company, serving different customers in different retail industry all over the world”

20+ experience in Prepaid Solution

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Image 4.1 SVS clients are all over the world and in different retail industry

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About Arthor : Kelvin Tai

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“ Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution”

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