Retail and Hospitality

RETAIL AND HOSPITALITY In an increasingly competitive world, what is giving leading retailers an edge? Technology providers like Microsoft and its ecosys- tem of retail partners offer tools that drive end-to-end engagement with the customer – from initial acqui- sition, through strategic early engagement to highly personalised shopping experiences that secure long- term brand loyalty and ongoing repeat business. In the pages that follow we take a closer look at the latest innovations happening within the retail, consumer goods and hospitality markets. 149 FEATURE Defining the perfect customer journey Truly knowing and understanding your customers with the help of intelligent tools, such as artificial intelligence and machine learning, is the key to delivering the ultimate shopping experience in today’s retail environment, says Microsoft’s Cath Brands BY REBECCA GIBSON hy do some online shoppers click on personalised experience for those who shop in a t-shirt, spend a long time looking at the digital and physical stores.” Wit, but leave the retailer’s website emp- Defining the perfect customer experience is a ty-handed? Is it because the t-shirt is too expen- critical step for retailers like Fabletics if they want sive? Is there a low-quality product image and to differentiate their brand from the competition insufficient information to make an informed and achieve ongoing success – regardless of decision? Or is the check-out process too long whether they operate e-commerce sites, physical and complicated? stores or both. Online activewear retailer Fabletics has come “The ‘perfect’ shopping journey is different up with a unique way to answer these questions: for everyone, but all consumers expect it to be opening more than 24 physical stores across intuitive, seamless and frustration-free,” notes the US equipped with devices connected to Brands. “If a retailer has both online and phys- Microsoft Azure to track how customers interact ical stores, they must be fully connected so that with their products in stores. customers have a consistent experience as they “By using ‘brick mining’, Fabletics can get move between channels.” clearer insights into why certain products are The key to creating standout customer expe- not selling – one particular t-shirt might be tried riences, claims Brands, is to establish a ‘golden on frequently, but never purchased, suggesting record’ of every customer to truly understand that there’s a problem with the sizing or feel of their needs and preferences. “If retailers have no the fabric,” says Cath Brands, director of Global idea what drives customers to visit their online Industry Marketing for Retail and Consumer or physical stores, what convinces them to pur- Goods at Microsoft. “Fabletics merges online chase items or what ultimately converts them into and in-store data to adjust its product portfolio, long-standing brand lovers, how can they ever inventories and customer services to offer a truly create the perfect shopping experiences?” she asks. 150 www.technologyrecord.com RETAIL AND HOSPITALITY Microsoft’s Retail Trends Playbook 2020 sug- promotions and more at their fingertips,” explains Store associates must gests that retailers focus on four key pillars to Brands. “Giving employees handheld devices have access to all the achieve this: know your customers; empower with access to customer and business insights data and tools they your employees; deliver an intelligent supply will enable them to complete daily tasks quickly, need to carry out their chain; and reimagine retail. instantly answer customers’ questions and help daily tasks “Retailers should evaluate sales data to see what consumers to find products in store. All of this factors cause troughs in sales and identify what increases job satisfaction and when employees common denominators make their best custom- are happy, they’re more invested in going above ers shop with the brand, so that they can pinpoint and beyond for the customers, which will ulti- which services to optimise,” says Brands. “Once mately drive sales and brand loyalty.” they truly understand what motivates their cus- Developing an intelligent supply chain is the tomers to buy from their brand, retailers can next vital step in creating the customer experi- determine which tools, technologies and best ence. “First, retailers must look at what is pop- practices will enable them to create the types of ular with their customers and current market product catalogues, inventories, in-store services, trends to put together the optimal product port- delivery and collection options, and marketing folio and inventory,” says Brands. “Next, they strategies that will satisfy their customers.” must explore how they can use intelligent tech- Retailers must also empower employees with nologies to procure these products and get them these tools. to the stores or the customers’ doors quickly.” “Employees are the retailer’s brand ambassadors Once retailers have these three elements in – they’re the ones on the front line who can make place, they have the foundation to build the or break a customer experience, so it’s crucial innovations that will empower them to re that they have access to a holistic view of each imagine the shopping experience. This is where customer and information about new stock, Microsoft and its partners can help. 151 FEATURE Partner perspectives We ask key Microsoft partners how their technologies are helping retailers to deliver the highly personalised customer experiences that secure long-term brand loyalty Photo: courtesy Fabletics of Cloud-connected screens outside each of the Fabletics fitting rooms track items Girish Avantsa Head of customer “Trying to understand technologies like artificial success at PopcornApps intelligence (AI), blockchain and machine learning (ML) can be overwhelming for retailers, but we can help them find the right tools to unlock “In our experience, incentivising online customers to try out products in stores helps to the power of data and then develop the services reduce shopping card abandonment and increase wallet share. Providing frictionless that will enable them to serve their customers and ways to connect the online and in-store customer experience, while maintaining the context of the customer’s needs is therefore very important. By integrating employees in the best possible way,” comments geolocation solutions with in-store technology, retailers can provide a seamless Brands. “Our ‘One Microsoft’ approach means continuation of the customer’s online journey into the store. Indoor mapping and we have tools that can tackle all the biggest retail connected store fixtures help to set the stage for conversion and create opportunities challenges. For example, we have Office 365 tools for store associates to upsell and cross sell. At PopcornApps, we provide services to to boost productivity and collaboration, Dynamics retailers that connect the digital and in-store experiences to drive increased sales.” 365 for Retail, Microsoft Advertising for effective marketing campaigns, and the Microsoft Azure cloud with its ancillary AI and ML products for capturing and analysing data. Plus, we collaborate with hundreds of thousands of incredible partners globally who build specialised industry-specific products on top of Microsoft platforms.” Major retailers are already using these technologies to redefine the shopping experience. The resultant seismic changes in the shopping experi- Joey Moore ence are making it an exciting time for Microsoft and its partners to be at the intersection of retail Head of evangelism, EMEA and APAC at and technology, says Brands. Episerver “Customers’ needs, expectations and behaviour have changed drastically over the past 10 years and it is now these consumers, not the retailers, “Consumer buying decisions are becoming increasingly complex with multiple who are defining what constitutes the perfect cus- touchpoints leading up to a purchase. Episerver data shows that 83% of tomer experience,” she adds. “Retailers are facing shoppers intend to do something other than make a purchase on the first visit to very real challenges, but new tools like AI and ML a website. Retailers must create compelling experiences that satisfy customers’ are providing them with an exciting opportunity intent to browse for inspiration, rather than making them buy immediately. The Episerver Digital Experience Cloud is a single solution for managing content, to think outside the box and transform the shop- commerce, digital marketing and personalisation in the cloud. It uses artificial ping journey in a way that surprises and delights intelligence to infer the intent of the customer and deliver a useful experience.” both their loyal and potential customers.” 152 www.technologyrecord.com RETAIL AND HOSPITALITY “One important factor in achieving positive end-to-end engagement with potential and existing customers is by communicating in a personalised and meaningful way. Creating attractive, on-brand and accurate documents, such as purchase orders and invoices, speaks volumes to today’s customer. As retailers gather increasing amounts of customer data, the use of enterprise resource planning (ERP) solutions has become the norm. However, the task of extracting business- critical information for customer communication from their chosen ERP solution and presenting it effectively is difficult. To overcome this issue, Lasernet enables retailers to generate brand-rich documentation such as quotes, purchase orders Michael Rogers

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