Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade

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Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
2021 Retail Outlook

Retail Excellence Playbook

           IN PARTNERSHIP WITH
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
In 2020, a confluence of factors impacted the retail industry in
fundamentally transformative ways.
Digital acceleration                 Supplier & supply disruptions       New behaviors                    An uncertain economic climate

A multi-generational shift in        From inventory locked in            The events of 2020 have          Consumers and enterprises alike
eCommerce adoption occurred          factories and stores during         impacted humanity in deep and    will have to contend with the
in 2020. While COVID-19 acted        global lockdowns to multifold       transformative ways, including   long-term impact of high
as a catalyst for this change, and   demand surges for essential         what we, as shoppers, value.     unemployment, shrinking GDP
growth rates may slow in the         items; from evolving global         Safety is the new experience     growth, and loss of consumer
coming quarters - this is not a      trade policies to smaller           table stakes. Store-based        activity across sectors such as
reversible trend. A new baseline     suppliers facing existential        experiences such as BOPIS and    travel, hospitality and brick &
is in place for shopper behavior.    threats - the global supply chain   Curbside Pick-Up are rede ning   mortar retail. Even as
                                     has been reshaped.                  convenience. And, shoppers       eCommerce growth o ers
                                                                         demand total transparency -      retailers a rare silver lining,
                                                                         from product origin to order     pro tability concerns remain.
                                                                         delivery.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
With so much having changed,                                                 This report is based on insights from Incisiv's Consumer
                                                                             Industries Data Pool, which is comprised of a holistic
retailers need a new playbook for                                            combination of shopper, executive and enterprise performance
customer experience and                                                      data. Data cited in this report represents aggregated insights

operational excellence in 2021.                                              from surveys spanning:

In 2020, retailers' immediate response to disruption- a quick cobbling
together of a patchwork of systems to get the job done - was swift and
                                                                             1,019
necessary. However, it should not paper over the fact that most retailers'   industry executives
business processes and systems are held together by duct tape.
                                                                             73%
As they re-prioritize transformation in 2021 and beyond, retailers must      Director level or above
focus on new experiences and capabilities that align with shoppers'

                                                                             53% of retailers
changing expectations, while at the same time re-architecting their
systems and processes to be better prepared for future disruption.
                                                                             with annual revenue > $1B
Incisiv's 2021 Retail Excellence Playbook o ers retail executives
prescriptive recommendations based on peer-to-peer research and
                                                                             Unless stated otherwise, all data cited in this report is from
benchmarking analysis of high-performing retailers.                          Incisiv's Consumer Industries Data Pool.

                                                                             See details about Incisiv's research methodology and data-pool.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
A guide to                                     Strategy Flywheel
                                               Five key areas of strategic alignment and investment.

improving
customer                                                                                    Digital

experience and                                                            Store
                                                                                          Commerce

                                                                                                             Supply Chain

operational                                                          Transformation                             Agility

excellence in 2021
                                                            Shopper                                                    Next-Gen Retail
Retailers have limited resources and a                     Imperatives                                                   Workforce
broad transformation agenda. It is critical
their investments be focused on
experiences that matter most to their
shoppers, and on capabilities that will                                                       Open
help improve operational e        ciencies.
                                                                           Modern                            Intelligent

This report o ers a strategic framework
for retailers to identify and prioritize key
                                                                                                                           Technology Foundation
transformation investments.
                                                                                        Underpinning strategic priorities with technology leadership.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
01 | New Shopper Imperatives
                              Understanding shopper
                         preferences in the new world order.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
NEW SHOPPER IMPERATIVES                      Certainty                            Flexibility                       Planning

Convenience
                                             Show me accurate, real-time          Provide me comprehensive          Show me available assortment
Redefined                                    store inventory online so I can be   ordering, delivery and pick-up    based on my choice of
Having experienced new digital               assured of product availability.     options (e.g. Curbside Pick-Up,   ful llment method, store
                                                                                  BOPIS, BORIS etc.).               and/or preferred delivery / pick-
experiences (such as Curbside
                                                                                                                    up time.
Pick-Up), convenience is no longer
just about speed of delivery for
shoppers. They demand new
                                             Give me a wider selection of         O er clear, exible returns -      Allow me to nd and lter
experiences that o er them                   available delivery and pick-up       anytime, anywhere (return         stores based on availability of
certainty, exibility and the ability         times, but narrower and more         online items in-store and vice    products, services or ful llment
to plan ahead.                               accurate estimates for pick-up       versa; return during pick-up      method.
                                             readiness and delivery times.        etc.).

Returning an item
to the store is the 2nd biggest motivator
for future store visits (behind same-day
need).                                       Deliver a consistently speedy        Give me a variety of payment      If an item is out-of-stock,
                                             experience across all aspects of     and checkout options, both in-    suggest relevant substitutes.
                                             the customer experience, from        store and online.                 Tell me when it is expected back
                                             purchase to customer service.                                          in stock; and alert me when it is.
2,510 shoppers rated their recent Curbside
Pick-Up experience an average 3.53 stars
(out of 5).

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
NEW SHOPPER IMPERATIVES                      Safety                              Trust                              Transparency

The New Customer
                                             Provide a safe and clean in-store   Make sure my experience works
Experience Table                             shopping and pick-up                as expected, especially when I
                                                                                                                    Show me where my order or
                                                                                                                    service request is in detail,
Stakes                                       experience for me and your store    need it the most (e.g. during      including complex scenarios
                                             workers.                            demand peaks, holidays etc.).      that include third parties (such
Conditioned by circumstances
                                                                                                                    as appliance installation).
(such as the constant reminder of
health risks) or less than ideal
experiences (such as a shortage of
                                             Create contactless experiences      Align with my values in your       Tell me about my product’s
essentials such as toilet paper),
                                             across product discovery (e.g.      actions (racial equality, social   origin, ingredients,
shoppers will put safety, trust and          augmented reality), self-           responsibility, environmental      manufacturing processes,
transparency above all else in 2021.         checkout and contactless pick-      consciousness etc.).               carbon footprint etc.
                                             up.

79% of shoppers
say contactless experiences are very
important to them.
                                             O er self-serve experiences,        Provide authentic sales and        Show me what data you store
                                             and provide virtual interaction     service, including instant         about me and how you use it;
69% of shoppers                              with sales and service              refunds for returns.               allow me to manage it.
rate retailers' communication of Curbside    associates.
Pick-Up order status three stars or lower.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
NEW SHOPPER IMPERATIVES                     Human/Digital Assistance             Safe Socialization                 Retailtainment 2.0

Alone, Together
                                            Allow me to connect directly         O er shared digital shopping       Continue to engage me with
With social distancing norms,               with a store or service associate    experiences (e.g. live streaming   your brand through new
                                            about any queries - about            online shopping, social media      experiences such as trial kits,
contactless experiences, and a shift
                                            product availability, order status   challenges etc.).                  innovative direct mail and
to largely transactional shopping,          or service requests.                                                    subscription services.
the "joy of retail" seems lost.
Shoppers want retailers to make
interactions with them more                                                                                         Repurpose outdoor space to
                                            Talk to me “like a friend”, using    Let me enjoy safe in-person
human, and o er new avenues and             my preferred digital platforms       experiences in your stores, e.g.   create new experiences that will
experiences that entertain and              (messaging, social media etc.)       private events, reserved           o er a greater degree of comfort
                                            rather than forcing me into          shopping trips for groups etc.     when I’m ready to return to
delight.
                                            another app.                                                            experiential retail.

91% of shoppers
miss shopping in stores, and "getting out   O er me a variety of digital         Curate digital experiences (e.g.   Create authentic moments of
of the house" is one of the top three       tools, such as store-mode in         cooking classes, workouts etc.)    inspiration and entertainment
motivators for future store visits.         your mobile app, that enhance        that align with my interests and   through social media, brand and
                                            my experience by combining the       immerse me in your brand.          in uencer marketing, and user
                                            best of digital + physical.                                             generated content.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
02 | Store Transformation
                             Digital is the front door to the store.

2021 Retail Excellence Playbook
Retail Excellence Playbook - 2021 Retail Outlook - IN PARTNERSHIP WITH - Avanade
STORE TRANSFORMATION

                                                                                                           Deliver contactless checkout,
Rapid Experience                      Rapidly scale and optimize
                                      store-based fulfillment
                                                                           Improve store inventory
                                                                           visibility to fulfill cross-    pick-up and service
Innovation                            experiences.                         channel demand.                 experiences.
Habits formed out of necessity are
now default preferences. So, online
ordering and store pick-up are here   Be able to quickly adapt             Easily access enterprise-wide   Enable contactless customer
to stay. However, shoppers demand     store-based ful llment               inventory to ful ll store and   and associate experiences
a better experience. In 2021, "good   strategies based on prevailing       online orders via tight         from within a single
enough" will no longer be good        circumstances, both at a             integration of point-of-        interface, allowing store
enough.                               chainwide and store cluster          experience and order            teams to seamlessly manage
                                      or individual store level.           management platforms.           multiple tasks.
With online ordering adoption
expected to continue to grow over
the next 6 months, shoppers will
switch loyalties to retailers who
                                                                       Tractor Supply Company rolled out Curbside Pick-Up in a
o er more seamless store
experiences.
                                                                       matter of days, and same-day/next-day delivery in a couple of
                                                                       weeks to all stores nationwide. The company also launched its
1 in 3 retailers                                                       website on a new platform and its rst mobile app in rapid
                                                                       response to the shift in shopper behavior.
do not combine online and store
inventories.

2021 Retail Excellence Playbook
STORE TRANSFORMATION

                                                                                                         Allow store teams to convert
Digital Selling                     Enable store teams to build
                                    stronger relationships with
                                                                        Mobilize demand through
                                                                        personalized promotions          and fulfill shopper demand
Store associates continue to be     shoppers digitally.                 and recommendations.             anytime, anywhere.
seen as an important source of
knowledge and insight, but
relationships with customers will   O er store teams the tools to       Give associates the ability to   Enable two-way
need to be digitized.               connect with shoppers               access all customer purchase     communication between
                                    digitally - from a customer         and browsing history, curate     stores and customers,
1 in 3 shoppers                     master list to the ability to       digital assortments and          including the ability to sell
say the ability to consult with     engage them via email, text         baskets for customers, and       in-store inventory and accept
in-store specialists is among       or social media.                    o er personalized                payments remotely.
the Top-3 things they miss                                              promotions.
about in-store shopping.

4 in 5 shoppers                                                     When the onset of COVID-19 disrupted its international
value personalized                                                  expansion plans, intimate apparel brand Knix re-created its
recommendations from store
                                                                      tting experience digitally. Customers can book a 20-minute
associates. However, 85% of
store teams don't have the
                                                                    virtual consultation with a “Knixpert”, one of the company’s
tools to share personalized                                         store associates redeployed to help shoppers, to learn how to
look books or promotions                                            take accurate measurements and nd the right t.
digitally.

2021 Retail Excellence Playbook
STORE TRANSFORMATION

                                                                                                          Be more transparent with
360-Degree Service                     Simplify return experiences,
                                       and turn every interaction
                                                                          Provide a continuous service
                                                                          experience across channels.     shoppers, offering them a
Shoppers seek greater                  into a selling opportunity.                                        variety of self-serve options.
transparency, easier access to
support and the ability to do more
within a single interaction with       Enable advanced returns use        O er 360-degree visibility      Be able to deliver automated,
retailers.                             cases, including uneven            into past orders and            in-context alerts related to
                                       returns and returns during         customer service issues to      order or service status to any
Returns will be an ever more           checkout or pick-up. Enable        store and service teams with    customer touchpoint - digital
important aspect of customer           upsell during pick-up and          appropriate role-based          or in-store.
service in 2021. Shoppers want         returns.                           access.
retailers to make it easier for them
to return items any way they like,
whether bought online, in-store or
curbside.
                                                                      Footwear retailer DSW expanded Curbside Pick-Up to
43% of shoppers                                                       "Curbside Services" - allowing shoppers to make returns
plan to increase store visits to                                      without having to enter the store. In areas heavily a ected
return an order, and 91% say                                          during the pandemic, it even added the ability for anyone to
the self-service tools                                                make shoe donations curbside - o ering a value service to the
retailers o er can be
                                                                      community.
improved signi cantly.

2021 Retail Excellence Playbook
03 | Digital Commerce
                                     New expectations call for
                                  reimagined digital experiences.

2021 Retail Excellence Playbook
DIGITAL COMMERCE

From Personalization to
Humanization
Arti cial Intelligence driven
personalization has been the
hallmark of successful digital
engagement strategies in the past
 ve years. Most shoppers,
however, nd purely AI-driven
digital personalization impersonal.
                                         Haus makes a personal connection.
2021 will see the emergence of
human-assisted personalizations,         Haus is an all-natural, low ABV, direct-to-consumer apertif brand that's taking on
from personal stylists who curate        Big Alcohol with a more responsible, transparent and personal approach. Founders
your look to dedicated delivery          Woody and Helena Albrecht feature prominently in the brand's farm-to- ute story.
partners who know your preferred         Personal touches, such as a holiday card featuring the Albrecht family sent to loyal
delivery times and product               shoppers, help position Haus as your friendly, neighborhood, artisanal winemaker.
substitution preferences.
                                         Haus launched The Restaurant Project at the peak of the pandemic in 2020 - a timely
Improving retention by 5% can increase
                                         collaboration with several restaurants and their chefs to co-create speci c aperitifs
pro ts by 25% - 95%                      for each restaurant. It o ered shoppers a way to support their favorite restaurants, as
Source: Harvard Business Review          100% of the proceeds went to the restaurant partner.

2021 Retail Excellence Playbook
DIGITAL COMMERCE

From Brand Loyalty to
Brand Love
With increasingly ine ective
digital media strategies chasing
  ckle consumer attention,
customer acquisition costs are set
to skyrocket in 2021.

Retailers must focus on customer
retention, ensuring they extract           Snowe makes room in homes and hearts.
maximum lifetime value from an
acquired customer. Doing so will           Snowe is a direct-to-consumer houseware brand that o ers well priced, elevated
require retailers to better                basics - from sheets to glassware. While Snowe's distinct design ethos pulls shoppers
understand their customers,                in, its carefully crafted customer engagement strategy builds stickiness and loyalty.
improve targeting, reward loyalty,
and be unafraid to treat valuable          Snowe's refreshingly simple loyalty program awards points for purchases and social
customers di erently.                      media engagement (such as leaving a review, or following Snowe on Instagram), while
                                           its referral program o ers both shoppers and their referred friends $35 each for new
42% of retailers
                                           purchases.
are challenged by the inability to track
targeted customers through their entire
journey.                                   In 2020, Snowe launched The Every Edit - a curated, revolving selection of products
Source: Statista                           from indie designers. Every collection centers around a topical theme such as "The
                                           Great Outdoors" or "Work From Home".
2021 Retail Excellence Playbook
DIGITAL COMMERCE

Redesigned
Experiences
Evolving shopper behavior and
preferences have led to changes in
customer journeys all the way from
search to checkout. Digital
customer experience must
transform accordingly.
                                        Subziwalla delivers home-style comfort by
As shoppers adopt digital               innovating new experiences and products.
equivalents to replace or augment
physical experiences - such as          Subziwalla is an e-grocer focused on making it easier for customers to access fair-
  nding the right t in apparel, or      priced, high-quality Indian cooking ingredients. 2020 brought about an exponential
the right product substitute in         increase in consumer adoption of digital grocery, and along with it, rapid changes in
grocery - retailers will need to        consumer behavior.
redesign existing experiences in
addition to building entirely new       With increased demand and supply chain uncertainty, Subziwalla prioritized
ones.                                   transparency in its customer experience. They used accurate inventory visibility to
                                        increase consumer con dence when ordering, and frequently refreshed curated
88% of shoppers
                                        journeys to navigate customers to in-stock items in order to avoid an out-of-stock
say retailers can make the pick-up
experience better by allowing returns   experience. For customers who would prefer to eat in, Subziwalla launched a prepared
during pick-up.                         meals service “Subziwalla Kitchen” in 2020, o ering customers a health-conscious,
                                        valuable and e ortless alternative to eating out.
2021 Retail Excellence Playbook
04 | Supply Chain Agility
                            The status quo of the retail supply
                                 chain is unsustainable.

2021 Retail Excellence Playbook
SUPPLY CHAIN AGILITY

                                                                            Combine multiple data            Provide plug-and-play
Inventory Visibility                     Provide a single view of
                                         inventory across channels          sources, internal and            convenience for partners,
The lack of inventory visibility has     and touchpoints.                   external, for richer insights.   regardless of their maturity.
been a perennial retail challenge.
The disruptions caused by COVID-
19 only served to highlight the lack     Unify a single view of             Sense and predict supply         Use standards-based APIs
of progress retailers have made          inventory across the supply        chain demand and                 and business-friendly tools
over the years despite stating it as a   chain, and enable role-based       disruptions by enriching your    to accelerate new partner on-
strategic priority.                      access across business             own data with intent and         boarding and extend
                                         functions.                         context signals.                 inventory visibility deeper
Conditions are ripe for retailers to                                                                         into the supply chain.
make advances in improving
inventory visibility. However, for
transformation to take hold,
                                                                        Walmart has been able to scale its ful llment methods (BOPIS,
enterprises need an incremental
                                                                        Curbside Pick-Up, Last-Mile Delivery) on the back of real-
roadmap that helps them achieve
big outcomes with smaller rst                                           time, accurate inventory visibility. It evolved its online
steps.                                                                  ordering experience by giving customers greater control over
eCommerce and store operations                                          choice of store, and pick-up and delivery times. The Walmart
executives access inventory data from                                   Grocery App is now #1 across US shopping apps, and the
di erent systems at
                                                                        company has seen 74% growth in ecommerce in large part due
1 in 3 retailers                                                        to its investments in inventory visibility.

2021 Retail Excellence Playbook
SUPPLY CHAIN AGILITY

Advanced Intelligence                       Use artificial intelligence to
                                            predict and automate key
                                                                                  Perform multi-factor, non-
                                                                                  linear optimization.
                                                                                                                     Business-user-friendly
                                                                                                                     tooling and experience.
Retailers must be able to respond           supply chain tasks.
quickly to macro and micro
changes.
                                            Integrate planning tools with         Optimize supply chain              O er best-in-class
Enterprise-grade arti cial                  machine learning models               decisions at a more granular       visualizations, dashboards,
intelligence is key to enrich and           across a variety of supply            level (e.g. forecasting to a day   scenario simulators and
automate critical supply chain              chain and merchandising use           x SKU level, or optimizing         results explainers to help
decisions.                                  cases.                                ful llment decisions while         business users more readily
                                                                                  balancing cost and                 trust and use AI tools.

81% of retailers                                                                  experience parameters).
do not consider the cost of markdown or
stockout in their ful llment optimization
decisions.                                                                   As its online order operations grew more complex and expanded to
                                                                             include stores, REI moved from rules-based sourcing to arti cial
47%                                                                          intelligence- based multi-objective optimization. REI’s order
of business executives "strongly agree"
                                                                             optimization engine looks at a variety of real cost drivers (such as
that arti cial intelligence tools need                                       shipping rates, labor cost at a location etc.) and future pro t impact
greater transparency for increased trust                                     (such as potential for a markdown or stockout at a particular node)
and adoption.
                                                                             to come up with the optimal ful llment solution based on REI’s
                                                                             speci ed business goals (such as product margin or shipping
                                                                             speed).

2021 Retail Excellence Playbook
SUPPLY CHAIN AGILITY

                                                                                 Provide complete                  Enable rapid development of
Business                                    Support a variety of use
                                            cases across supply chain,           configurability of inventory      new experiences atop
Configurability                             merchandising and digital.           business rules.                   inventory data.
COVID-19 will recede, but supply
chain disruptions will continue to
occur in the future. Retailers must         Allow the enterprise to start        Be able to move inventory         Enable internal IT and
transform and digitize supply               anywhere and grow exibly             across channels, segments or      external partners to access
chain processes to be better                in their use of inventory data       retail partners, and optimize     inventory data "as-a-
prepared for whatever comes next.           by enabling a range of use           inventory safety stock in         service" to enhance existing
                                            cases (forecasting,                  real-time.                        or new experiences.
                                            replenishment, ful llment,
                                            etc.).
3 in 4 retailers
believe current e orts do not adequately
                                                                             Molson Coors Beverage Company equipped its Toronto DTC
prepare them for future supply chain
disruptions.                                                                 initiative with both local pickup and local delivery. Customers
                                                                             can choose to pick up their orders or have them delivered from
                                                                             their nearest retail location. Since using its retail location to
41% of retailers                                                             ful ll online orders, Molson Coors has: launched an online
say their current supply chain technology
                                                                             store in 10 days, with local delivery in Toronto; grown sales
prevents them from quicker responses to
supply chain disruptions.                                                    188% month over month; increased orders 152% and
                                                                             conversions by 109% month over month.

2021 Retail Excellence Playbook
05 | Next-Gen Retail Workforce
                                  Essential frontline,
                                  remote leadership.

2021 Retail Excellence Playbook
NEXT-GEN WORKFORCE                       Collaboration                        Data Democratization               Consumer-Grade CX

Enabling the Next-Gen
                                         Improve cross-functional             Ensure frontline and corporate
Retail Workforce                         internal collaboration, especially   teams utilize a single source of
                                                                                                                 Enable employees to use tools
                                                                                                                 and platforms they are most
The events of 2020 thrust retail         for functions such as product        customer, inventory and order      comfortable with - bring your
store teams into the frontline. They     development, sourcing and            data.                              own device, bring your own
were asked to do more - learn new        merchandising.                                                          platforms.
procedures, keep stores safe and
ful ll more online orders - with
fewer resources in an uncertain
                                         Enable greater coordination          Enable secure, role-based          Ensure enterprise software is as
economic climate.                        between corporate and frontline      access while mitigating risks      user-friendly, mobile optimized
                                         teams, especially around             brought about by the need to       and platform agnostic as the
Corporate executives found               promotions, customer service,        expose sensitive enterprise data   best consumer apps.
themselves reluctantly remote,           and assortment localization.         in a largely remote setting.
having to unlearn old habits while
managing new responsibilities.

In 2021, retailers will need to invest
                                         Empower store associates with        Enable the workforce to work       Design resilient, robust
in three key capabilities: greater
                                         the tools to be able to more         smarter, not harder, through       enterprise applications that
internal and external collaboration,
                                         easily manage a greater              best-in-class insights,            deliver consistently high
insights-led decision-making, and        complexity of operations - from      visualization and alerts.          performance, even during peak
a best-in-class employee                 labor scheduling to task                                                load.
technology experience.                   management.

2021 Retail Excellence Playbook
06 | Technology Foundation
                              Technology re-architecture for a
                                  digital-first world order.

2021 Retail Excellence Playbook
TECHNOLOGY FOUNDATION                  Modern                                Open                                   Intelligent

Technology Leadership
                                       Innovate quickly and cost-            Integrate with existing and new
for Sustained                          e ectively: cloud-native              third party systems seamlessly:
                                                                                                                    Develop an inter-connected mesh
                                                                                                                    of enterprise and customer data,
Innovation                             architecture for faster deployment,   Open APIs for easy extensibility and   using advanced IOT and AI
                                       increased agility and lower cost.     integration with existing or new       technologies.
The "Strategic Flywheel" is moot                                             third party systems.
without a modern, open and
intelligent technology foundation.

Be it building an agile supply chain   Deliver best-in-class experience      Adapt your technology platforms to     Leverage vast stores of data to
or transforming stores to be           across deployment platforms:          your business strategy, not the        identify trends and codify
ful llment hubs, key aspects of        Support a user-centric, intuitive     other way around: Modular              algorithms to improve customer
                                       experience across multiple form       microservices architecture that        experience while protecting
retailers’ digital transformation
                                       factors and operating systems, and    allows any service or function to be   margin.
rely on technology leadership.         devices.                              deployed independently.
Technology leadership in 2021 will
be about simplifying
transformation architecture,           Ensure high performance,              Support business needs faster          Use predictive intelligence to power
lowering implementation risk and       especially at times of peak demand:   through rapid new feature              anomaly detection use cases across
cost, and building competitive         Automatically scale up or down to     development: Be able to use            the enterprise such as loss
advantage through better use of        any capacity in real time without     existing services out of the box,      prevention, returns optimization
                                       disrupted service, and without any    extend them or develop entirely        and automatic replenishment.
data.
                                       advanced planning.                    new ones quickly that run
                                                                             alongside existing deployed base
                                                                             code.

2021 Retail Excellence Playbook
Incisiv's 2021 Retail                                 SURVEY METHODOLOGY

Excellence Playbook is
                                                      Incisiv's industry benchmark surveys are conducted using a
based on insights from its                            hybrid online + Computer Aided Telephonic Interview (CATI)
Consumer Industries Data                              methodology.
Pool, including aggregated
                                                      Respondent Distribution by Role             Respondent Distribution by Region
data from surveys spanning
1,019 retail executives.
                                                      Technology                28%                USA                 64%

                                                      Supply Chain              32%                EMEA                23%
NEXT STEPS
                                                      Digital / Omnichannel     23%                APAC                13%
• Rethink the new realities of retail with Avanade:   Store Operations          17%
   Follow di erent priority paths and move through

   three manageable phases of recovery to rethink

   the way you do business.

• Dive deeper with Incisiv: Book a meeting with an
                                                      Respondent Distribution by Annual Revenue   Respondent Distribution by Level

   Incisiv analyst to discuss key ndings
                                                       $100 MM - $499 MM      12%                  Manager             17%

                                                       $500 MM - $1 B         35%                  Director            35%

                                                       $1 B - $2.5 B          31%                  VP / SVP            29%

                                                       $2.5 B +               22%                  EVP / C-Level       19%

2021 Retail Excellence Playbook
Incisiv's Consumer Industries Data Pool

Incisiv's Data Pool is comprised of a holistic combination of shopper,
executive and enterprise data
Shopper Research Data                     Executive Survey Data                       Digital Maturity Assessments

Ongoing multi-industry, multi-            Targeted exploration of key business        Observational and mystery-shopper
geography shopper scan spanning           executive challenges, priorities & plans.   based audits of digital commerce,
100,000+ consumers.                                                                   marketing and service.

8 million                                 5 million                                   200+
data points from shopper surveys          data points from 12 executive surveys       digital maturity attributes
conducted through the year.               conducted through the year.                 benchmarked for global enterprises
                                                                                      across consumer industries.

2021 Retail Excellence Playbook
IN PARTNERSHIP WITH                      IN PARTNERSHIP WITH

ABOUT INCISIV                               ABOUT AVANADE                            ABOUT MICROSOFT

Incisiv is a peer-to-peer executive         Avanade is the leading provider of       Microsoft enables retailers to deliver

network and industry insights rm for        innovative digital and cloud services,   personal, seamless, and di erentiated
                                                                                     customer experiences by empowering
consumer industry executives navigating     business solutions and design-led
                                                                                     people, enabling digital transformation,
digital disruption.                         experiences for its clients, delivered
                                                                                     and capturing data-based insights to drive
                                            through the power of people and the
                                                                                     growth.
Incisiv o ers curated executive learning,   Microsoft ecosystem.

digital maturity benchmarks and                                                      Learn more about intelligent retail at:
prescriptive transformation insights to     Learn more at:                           microsoft.com/retail

clients across the consumer and             avanade.com/retail

technology industry spectrum.

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