Restaurant & QSR

Timing is everything and ‘your newest team member’ is right on time!

Lan Nguyen, Marketing Manager, Bossa Nova Robotics

With AI and data from your newest team member, retail work has never been easier. Bossa Nova, a leader in creating autonomous service robots for the global retail industry, tracks inventory plus store and shelf conditions in real-time. Its solution delivers data with speed and accuracy. By reducing inventory time, Bossa Nova is able to provide real-time data for stock levels with improved accuracy. So how does this translate to a financial gain for retailers? First, by automating mundane tasks, employees are happy and happy employees make a happier retail environment. You might wonder how many hours are spent on mundane tasks such as inventory audits.  There are 30,098 items in the average grocery store. A typical Target store has around 80,000 SKUs and a Walmart supercenter sells up to 120,000 items. It takes about 20 human hours to audit 10,000 products. Following this logic, an average grocery store would require over 60 hours per store,  160 hours per store for Target, and a whopping 240 hours auditing shelves at a Walmart Supercenter. It’s easy to see how grocery stores following the recommended minimum quarterly inventory schedule forfeit a high proportion of human working hours to this task. For those that audit monthly, the labor costs are even more tremendous.   Bossa Nova helps retailers automate these inventory audits and monitor shelf-conditions in parallel, scanning an 80 linear foot aisle in 90 seconds with 98% accuracy. Through automation, employee focus can be shifted to more action oriented, customer-centric tasks, while the Bossa Nova robot detects anomalies in shelf conditions, covering everything from addressing out of stock and misplaced items, to pricing, and more. This shift in employee focus to the customer directly translates to higher shopper satisfaction and increased loyalty. It is estimated that out of stocks cost retailers over $129 billion in lost sales in North America - a loss of -4% of revenue annually. (the cumulative worldwide cost of out-of-stocks for retailers has now reached over $984b) A study conducted by MIT Supply Chain Management Research determined that 78% of products that are not on the shelves (i.e out of stocks) are actually on-hand. Given this, a majority of out of stock issues can likely be resolved in-store. Inventory replenishment is critical to success, and those tasks need to occur at store level. Having the right products in the right place when consumers are looking for them (both online and in-store) allows sales to escalate and deliver a sales velocity that makes the most effective use of each square foot of space. Bossa Nova is committed to maximizing this efficiency by gathing  reliable, real-time data that delivers task oriented, actionable items. Efficient inventory control improves speed to shelf by alerting store-level associates of inventory on hand, as well as buying desks / suppliers of true OOS situations. Through computer vision implementation, retailers can accurately assess, and more importantly, address in-store conditions in real-time, across all locations. Real-time accuracy is not only important to retailers, but it is also important to your shoppers. By having accurate inventory, confidence thresholds for item availability can be increased for both in-store and online shopper inventory inquiries. In fact, 81% of shoppers do research online before visiting a physical store for what they want to buy, yet only 27% of retail sites provide store level inventory. When the robot “wheels” into your stores, you will be saving intensive labor hours and improving your store conditions with unmatched accuracy. Bossa Nova has the credibility and experience to help retail operations realize the return on investment and successfully integrate with existing platforms and systems. There are two popular sayings that really affect your bottom line: “Timing is everything”, and “Time is money”, and in business, money really is everything. While many technology companies are still working to surmount the bell learning curve of applied technology, Bossa Nova is equipped with extensive retail experience and has been trusted by operations and IT professions to successfully integrate and lead this huge step in retail automation. With accurate inventory management, you can increase your revenue potential and more accurately can forecast the future. +MORE

Discovering the Holy Grail of Retail: Online-Offline Convergence

Sena Zorlu, Instapio

Over the past years, retailers have been investing into digital transformation, creating online stores and making their brick and mortar locations smarter. On the startup side, there has been a massive growth of retail technology companies in multiple areas to improve operations, cut costs and bring in more customers. There’s no Magical Solution Today there are multiple solutions that claim online and offline convergence. These are mainly: Data Management Platforms that will tie online and mobile identities to retailer’s offline data (CRM, POS, Loyalty) to provide historical view. Mobile Attribution and Retargeting platforms that will understand when mobile users are in your stores and retarget them with timely and relevant information. iBeacons that will help you communicate with your app users in granular proximity. Guest WiFi that requires social login or email that can be tied to your CRM. It is very confusing for retailers to understand what solution to invest in when the common value proposition is the same: we will bring you the holy grail; we will connect online with offline. However, the main problem with all these technologies is that they are lab technologies. They work perfectly in controlled environments where every condition is met. Well if all your customers download your mobile application and they turn on their bluetooth and they open the application and they stand next to this sensor than the technology works. Retailers are promised an amazing connected world where they have full control of their customers yet when these solutions are installed, the results don’t come near what was promised. This is why there are so many POC’s but so little mass deployments of technologies. Retailers need to understand that today, technologies that promise to connect them to customers are still in preliminary stages of growth. This is because there are pre-conditions for these technologies to work and consumers rarely act the way we aspire them to.  The costs and efforts associated with having every customer download and not delete a mobile application are astronomical. Even when you bear the costs, app store discoverability is really difficult and consumers are app tired, looking for a reason to delete an app. When a technology is not adopted by the masses, your results will be skewed because of the small usage base. Any A/B testing or campaign on a small sample size will lead for wrong strategy. Another blocker with mobile technologies is the device manufacturers themselves. Mobile based technologies use sensors and features within the mobile phone which puts the retail industry at the mercy of the manufacturers. So when a manufacturer decides to turn off location collection from mobile applications, your investment into mobile attribution may sink overnight. Which retail technologies will win? To be able to understand what is going on in the store environment, retailers need better data generation than what exists today. In order to take real time responsive action the way ecommerce sites can do, retailers need access to real time, contextual data that can speak with existing systems they have. Mobile apps do not fill the void of collecting this data. Meaningful information can only be collected with sensory technologies that will passively collect data from a large sample. The first result of this trend has been in-store analytics. In-store analytics has presented a better picture of what is going on in the store and help understand the funnel that leads to purchases. The next wave of technology is to improve what we can do with this sensory data. Historical analytics is nice to have but will not magically save retailers. The next wave of retail technology will come as software layer that sits on top of sensory information and will affect all operations from merchandising, real time campaigns, personalization, staffing and everything else. So what can retailers do today? One thing we know for sure is that consumer behavior is rapidly changing and brick and mortar retailers must adapt to the changes demanded by customers. Retailers must be educating themselves with new technologies and changing consumer behavior. Big box stores have built lab environments to test new technologies, the easiest thing smaller retailers can do is to dedicate one store, preferably near their headquarters as their lab environment. They can be open to testing new technologies rapidly and choose best startups that can act with a real store rather than doing a fancy presentation or a demo. Retailers need to be in the conversation of emerging technologies. There are many technology startups like us who are working for the core problems that retailers are facing today. Whatever the retailer’s size may be, a lot of startups will be open to testing and working with them to solve specific industry problems. Small and medium sized retailers can become more innovative by becoming part of the solution. Building internal teams, dedicating test stores, working intimately with startups, having leadership teams advise retail tech startups are just some of the things retailers can start with that won’t require significant budgets. What we are working on At Instapio, we have been working on unifying different identities customers have to paint a clear picture of what is happening in the store and bring aggregated insight to help retailers. Our goal from the first day was to bring the automagical aspects of online to the physical world. It’s a big challenge and there is no one shot solution to create it. It requires collecting and merging of data from multiple assets, unifying different identities, making all the data talk in the same language and delivering it to the retailer in a format that can be used. This is why we are building an ecosystem around bringing all this sensory information together and make it available to talk to management systems in real time. We are working closely with the Advancing Retail platform, very excited to learn and help solve brick and mortar business challenges. +MORE

Whatever the Question, A.I. is the Answer Because Nobody Likes Calling Customer Service

Susan Galer , Forbes SAP voice

Bejoy Narayana, CEO of BoodsKapper, develops AI applications that can cut down customer problem resolution time by a factor of 10. Give us your superstar customer service representative, and we’ll provide an AI application that replicates their behavior, reducing problem resolution time from 10 minutes to one. This is what I heard and saw from Bejoy Narayana, CEO of BoodsKapper at the recent SAP Financial Services Innovation Summit held at the SAP Leonardo Center in New York. The Texas-based startup develops AI applications on the SAP Cloud Platform designed to not only ferret out what customers want quickly, but also communicate in their preferred medium – using any texting app or moving to a telephone conversation.   “No one likes calling customer service, and we believe that experience can be much better by training the software to behave like the ideal customer service representative, getting to the point quickly to provide a solution for busy people,” said Narayana. “Modeling the actions of a company’s best customer agent, we can train the AI engine to be up and running in weeks just as you would a new employee. This can cut down interaction times by a factor of ten.” Creating a Human-Like Dialogue…Read the rest of this article by Susan Galer on Forbes SAP voice Posted on the CART blog with permission from Bejoy Narayana, CEO BoodsKapper +MORE

Automation and Personalization of the Retail Store

Instapio Inc.

Instapio allows chain retailers to gain control of their business and automate customer experience standards. By using Instapio, retailers create seamless and intuitive locations that are responsive to the presence and habits of their customers.  The solution will operate as a decision making engine for each store and across the chain to measure millions of data points in real time, make decisions based on business priorities and optimize operations. Imagine a super store manager that oversees the everyday operations of all stores. +MORE

Connect

DART Displays

DART Displays

DART Displays offers a way to transform the in-store shopping experience to one that is digital and dynamic, with reporting and analytics that lead to big insights about what moves your shopper to purchase.     By leveraging DART Displays structures (both permanent and flexible) you can and will create a best in class approach for enhancing the brand experience in-store.  +MORE

Connect

BoodsKapper Retail bot

Boodskapper

This is our service for the retail industry and is primarily delivered through Facebook Messenger.  Consumers are able to send a picture of an item and ask if the retailer carries the item. The software is able to look up a retailer's catalog and answer the question.  Two-minute simulation here best explains the solution: http://www.boodskapper.com/#!retail/jjvu4 In this simulation, retailer has no prior record of the customer. Customer starts an organic conversation from Messenger, just as people do in life. BoodsKapper assists the customer to locate an article at the store. The customer picks up the conversation thread several months after the purchase and enquires about a variant of the item purchased. An organic conversation ensues and a purchase is made.is Deep reporting:   We would argue that information gold for the retailer are the conversations that your customers had with you through various channels. Our AI algorithms automatically find the meaning of the written text and use that to make the conversational response. As the meaning of conversations is analyzed and documented in real time, it is possible for us to enhance traditional reporting with this information. +MORE

Connect

Smart Gammified Customer Feedback Surveys and Analytics

Wyzerr

Wyzerr builds artificial intelligence software for data collection and analytics that look and feel like games. The basis of Wyzerr’s platform is making it as fun, fast, and easy as possible for consumers to provide actionable feedback data, and business stakeholders to understand and use that data to make decisions in real-time. Wyzerr’s ‘Smartforms’ can capture 25 questions in under 60 seconds. Our secret sauce is the machine learning algorithms infused within the platform. Wyzerr smartforms processes feedback in real-time like a human being would, rapidly digesting the information and asking new questions as a human would in a real dialogue. It allows brands to truly understand who their customers really are. What they like, don’t like, what makes them sad, mad, and happy…all in real-time. This machine learning capability makes it possible for every customer to receive a unique feedback questionnaire. There’s no such thing as one-survey-fits-all at Wyzerr.  The data is analyzed in real-time to produce actionable insight around the clock. Instead of complex graphs and pie charts, our insight-based dashboard outputs data on a GPA scale, assigning grades (A, B, C, D, and F) for different key performance indicators. Similar to how progress reports in school advise students on what they should do to improve their grades, Wyzerr's AI component advises business stakeholders what they can do to improve their customer experience. Overtime, and with more feedback data, Wyzerr can also recommend new products and services to be developed, suggest improvements to existing products, identify new trends and upsell opportunities, and advise on the types of market messages to run. It’s essentially a technology to use customers’ feedback to support operational decisions. We offer data science in a box. +MORE

Connect

Robots for Retailers

Bossa Nova Robotics

It is estimated that out-of-stocks account for -4% loss in revenue, not to mention the possible long-term effects of losing loyal shoppers. Great shelving conditions can lead to great shopping experiences. Bossa Nova is the leading developer of robots designed to provide real-time inventory data for the global retail industry. Our retail service robot autonomously tracks inventory and the true state of in-store conditions to seamlessly deliver actionable tasks benefiting retailers through efficiencies and accuracy.   Ensure implementation and maximize operational efficiencies by relying on the retail experience and expertise of Bossa Nova. Our trusted team makes it work for all retailers - helping them turn real-time data into actionable tasks and insights.  Real-Time, Accurate Inventory Data Product Availablity with Efficient/Actionable/Timely Replenishment Real-time Corrective Actions to Remedy Merchandising, Pricing and Promotion Compliance  +MORE

Connect

Darius™ for Retail

Darius Technologies

Darius for Retail is a fully integrated, cloud based shopper engagement platform. Darius delivers proven and measurable return on investment, by allowing retailers to put their shoppers at the center of everything and making it easy to engage and influence them pre-store, in-store, and post-store. Darius allows retailers to design, manage, develop and, measure interactions with their customers throughout the entire shopper journey.  The ‘tech’ bit: Darius™ is a modular ‘ecosystem’ retail technology platform that is designed to integrate and allow interaction with any existing retail systems and solutions such as Beacons, WiFi, dynamic shelf illumination, or e-coupons, and so on, to make continuous engagement with shoppers possible, wherever they are on the path to purchase. The customer experience bit: Darius™ allows retailers to put their shoppers at the center of everything by making it easy to engage and influence them pre-store, in-store, and post-store. The business bit: Darius™ delivers proven and measurable return on investment. That means more shoppers in-store, more often. It means attracting new and hard to engage shopper types. And it means bigger baskets and the increased spends that comes with that. It makes marketing budgets and, where they may already exist, retail tech investments work so much harder. +MORE

Connect

LISNR

LISNR

LISNR powers transactions and connects the global customer journey with the most advanced Ultrasonic Data Platform. LISNR’s technology addresses the growing need for simple communication between myriad devices. Based on that idea, LISNR created proprietary software for encoding data into inaudible “tones”, which were then transmitted and received using standard speakers and microphones. +MORE

Connect

App Store for Retail

Sparkle CS Ltd

Sparkle connects legacy and online retail solutions into a real-time cloud ecosystem to enable Big Data, connected store marketing and a true omni-channel customer experience.  Using Sparkle’s technology, retailers from independents to major chains have been able to rapidly and cost-effectively deploy integrated digital technology to drive customer engagement and increase sales. Extensible Framework, an app store for your POS: Our framework allows the digital world to interact seamlessly with tills.  Want your till to do something we haven’t thought of? Add another app. Making Coupons Work, Example App: Redemption Validation (RV): Our RV POS App allows digital and paper coupons to be accepted by the POS with controls against mis-redemption, reuse and fraud. Driving Out Costs, Example App: Electronic Clearing (EC): No more need for expensive clearing houses! With EC, you know who owes you what within hours. Settle via trade accounts or let us manage it for you. Cloud-based Management, Take control of your tills: Our cloud-based solution will get you up and running in no time. Change how your tills behave from your tablet in real-time. Bridging the Gap, bringing tills online: We provide a range of patented technologies that allows legacy tills, from corner shops to mainline grocers, to join the App Store for Retail. Future Proof, avoiding strategic paralysis: NFC, RFiD or QR Codes? You don’t need to guess. The App Store for Retail allows new interfaces to be plugged in at low cost. +MORE

Connect

Balance Innovations Suite of Solutions

Balance Innovations

(1)

Balance Innovations offers the only retail software platform that connects all points of your currency operations,  lowering the cost of accepting cash and increasing efficiency at all levels of the organization. It provides multi‐ layer security and effortless integration of all your devices and systems to give you an immediate, complete view  of your entire enterprise.  This comprehensive visibility enables you to understand what’s happening across your entire organization without tapping into multiple systems or reports. It puts all the information you need right in front of you –  customized to thresholds you choose – so you can be proactive in addressing issues before they become problems.   +MORE

Connect

GoSpotCheck

GoSpotCheck

GoSpotCheck is mobile form and execution management software that enables team leaders to improve workforce operations. Organizations can assign tasks, analyze real-time reporting, and drive action to accomplish critical goals and objectives. +MORE

Connect

CART Weekly Report 4/11/19

CART, Advancing Retail

SURVEY: GROCERY STORES NEED TO ‘ENTER THE MODERN AGE’ | Supermarket News Gary’s Take: Fascinating survey that finds 51% of shoppers believe if supermarkets don’t ‘enter the modern age’ people will find other ways to buy food. Consumers read about new innovation in shopping nearly every day in the news - from the Amazon Go store to automated delivery vehicles. It is no wonder that shoppers experience a disconnect between what they read about and experience with Amazon and their local grocery store. Many supermarket companies are trying to innovate but simply are challenged to move fast enough. As the pace of innovation grows exponentially, change is occurring at an increasing rate, and traditional retailers are having a tougher time keeping up. And yet, as the survey calls out, they must. WALMART AND GOOGLE FORGE VOICE ORDER ALLIANCE TO BATTLE AMAZON | ZDNet Gary’s Take: Voice based commerce is poised to grow fast with millions of Amazon Alexa devices already in homes and Google coming on fast, especially with its recently announced partnership with Walmart. Walmarts voice ordering system will work across more than one billion Walmart Assistant devices. Digital commerce continues to advance quickly while many supermarket retailers are still working to get online. The innovation gap continues to grow. 18 RETAILERS WITH THE BEST LOYALTY PROGRAMS | Business Insider Gary's Take: So here's a list of the top 18 retail loyalty programs as compiled by Business Insider... and there is not one supermarket retailer on the list. At a time when shoppers expect, even demand, marketing relevancy, supermarket retailers are missing in action. Customer identified purchase data provided by loyalty programs is the fuel for marketing personalization and yet 27 of the top 50 supermarket retailers lack loyalty and the resulting data. Yes, there's a path to personalization via eCommerce and other digital engagement, but it is a much slower path to meaningful levels and business impact. Supermarket retailers need to focus on digital customer engagement and utilize new innovative technologies to provide new services and experiences to their customers. Retail today is powered by data, customer data, and grocery retail needs to get moving.  SHOULD UNIFORM PRICING BE THE NORM FOR LARGE CHAINS? | Retail Wire Sterling’s Take: As soon as we all pay the same for airline tickets and credit card interest rates we should look at generalized pricing. Different customers have different economic value and personalization customizes that. There are technological and operational kinks at some retailers that reduce benefits, but that doesn’t mean scrap the program. We should be looking at how to improve it or use technology differently. FEATURED BLOG OF THE WEEK:  GROW REVENUES USING THESE DIGITAL STRATEGIES by Yehudis Milchtein, Senior Account Manager, Harvesting Media HAPPENINGS CREATING ROI IN THE FUTURE OF AR/VR IN RETAIL: HOW RETAILERS ARE USING VR/AR TO ACHIEVE GROWTH, PROFITABILITY, AND CUSTOMER EXPERIENCE GOALS - May 14, 2019 - 2pm EST  Questions? Contact Retail and eCommerce Committee Event Co-Chair, Sterling Hawkins DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION​, Boston Immersion Event  Apply to present at Retail Tomorrow Labs: Boston - Applications due June 15th, 2019 SPRING 2019 RETAIL INNOVATION PITCH EVENT, hosted virtually on May 23, 2019 Get on the Inside - CART Community FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future.  VIEW ALL SOLUTIONS HERE   HOW CART WORKS CONTACT US     TELL ME HOW TO GET MY SOLUTION ADDED TO CART +MORE

Grow Revenues Using These Digital Strategies

Yehudis Milchtein, Senior Account Manager, Harvesting Media

Digitally savvy businesses are becoming the norm in the retail world. More and more companies are taking advantage of the untold benefits of digital marketing- there’s no way to argue with the results. Nowadays, taking control of your online presence is key to staying ahead and keeping up with your competition. There are a plethora of platforms to choose from, each optimal for running different types of campaigns or being used for a variety of purposes. Facebook, Instagram, Google My Business and other platforms are all opportunities for developing relationships with shoppers in your area. The potential for launching campaigns that make a real impact on your business has grown tremendously over the past few years. Any and every message you want your customers to see - whether it's coupons, discounts, events, or new products - becomes manageable. Customers want to hear from you and stay up to date with the latest store happenings. What can you do to make that a reality? Google My Business: Your Business can't afford to ignore Google. From the immediate benefits like ranking higher in search results to increasing trust with potential customers, claiming and updating your Google My Business profile is integral to establishing a digital presence. Show customers and potential shoppers that you’re serious about their satisfaction and that you value their feedback by monitoring and responding to reviews. For nearly 9 in 10 consumers, an online review is as important as a personal recommendation. 90% of customers read online reviews before visiting a business. Not sure how to get started? Speak to the team at Harvesting Media about how to claim your Google My Business page, respond to reviews, receive weekly reports and more. Facebook: As the #1 social media platform used by businesses, Facebook is an exceptional place to engage and interact with current and potential customers. Instantly share updates with thousands of people and encourage new shoppers to visit by implementing targeted coupon campaigns. Opening a Facebook page takes 5 minutes, and posting on update a week is an excellent start. Having a Facebook page also gives your customers a platform to leave reviews, recommendations, and reach out via Messenger with questions about your products. Ready to enhance your Facebook page and increase revenues with tracked results? Give us a call or send us an email , we’d love to talk. Instagram: Developing a personal relationship with customers and making your business more relatable has never been simpler. Set up your Instagram account and share gorgeous photos with the click of a button. Grow your Instagram account by partnering with influencers or running contests that encourage fans to follow and share your content. Excite potential shoppers by utilizing the visual aspect of Instagram- share stories with hacks, tips, and more on your page. Looking for content that captures the most popular and beloved aspects of your business? Want to lean on a capable team that does this for you? Reach out to our graphics team today. Weekly Newsletter: Getting into your customers’ inbox on a weekly basis is an extremely effective way to stay relevant and encourage customers to shop at your store again. Emails have the highest coupon conversion rates and you could use that to your advantage as you collect info from customers in-store and on social media. Use forms in-store or online to gather email addresses quickly and efficiently. Want to discuss coupon campaigns that increase basket sizes? That’s our bread and butter. Properly marketing your store can feel a tad bit overwhelming, but it doesn’t have to be! Begin with the basics by creating and consistently updating your digital channels. Once you start establishing your digital presence, partner with us to discover new channels and methods that can be implemented. Supermarkets are regularly leaning on outside help to facilitate their marketing, while the retailer does what it does best: running a supermarket. Partnering with a team of people whose job it is to manage the digital marketing component for a retailer is what more and more independents are doing. And it makes sense. Don’t guess your way through campaigns; rely on our proven methods to increase your revenues. Ready to talk? Reach out today and learn what you could be doing to multiply your sales. Let’s grow. +MORE

Personalization and Relevancy Can Be a Game Changer for Independents

David Kiehle, Senior Vice President and General Manager, Smart.Market

Independent grocers are increasingly aware of the impact of industry disruption. These retailers are facing a new landscape marked by emerging technologies, quickly changing consumer behaviors, and a wide range of traditional and nontraditional competitors building scale through acquisitions and organic growth. This new environment creates challenges across the independents’ business, and a case in point is in marketing. Independents and their wholesalers are often lacking in resources and expertise. They typically don’t have big marketing budgets. Many don’t operate loyalty marketing programs. Most are without the teams of data analysts more typical of bigger chains. Some are still tied to weekly circulars that deliver the same offers across an entire market to an eroding base of newspaper subscribers. How can independent retailers compete in this new environment with effective marketing resources and strategies? Independents are expert at being relevant for their individual customer bases. However, increasingly they need to be on-target not just for their market as a whole, but for each household and each customer in that market. This requires a more sophisticated personalized approach to coupons and other offers, supported by technology. Independents often don’t know the best ways to get started down that path. There are numerous methods to embracing personalized marketing, some effective, some not so effective. These employ a range of platforms, from digital to print. Independents need to ensure that a personalization strategy is really personal. That means it needs to be targeted to individual households and customers, rather than being merely a segmentation approach that addresses large groups of shoppers. One of the most effective and cost-efficient personalization strategies is leveraging direct mail, a seemingly mature form of retail marketing, that can be transformed through data-driven personalization techniques to drive profits and traffic. Recent research from the Data & Marketing Association (DMA) shows personalized direct mail campaigns can increase ROI from three to 10 times compared to traditional strategies. Ironically, personalizing direct mail often results in a hybrid approach between print and digital. It’s actually digitally-driven print marketing. This approach leverages the best of print and digital through a state-of-the-art process called personalized variable direct mail. It not only outperforms traditional campaigns, but consistently outpaces online digital efforts as well. The result can be a game changer for independent grocers. Here are five ways this kind of personalization can transform marketing for independents. 1-Accelerate Response Rates: Personalized variable direct mail can deliver double-digit response rates consistently, which is markedly higher than traditional direct mail. 2-Capture Performance Analytics: A personalized data-driven program should be able to provide back-end analytics to measure scores of events across a marketing calendar. Ideally a retailer should be able to leverage a database to match consumer purchasing habits back to the individual household level for each store location. This enables the retailer to learn more about its current customers by location and identify others that have similar characteristics and behaviors. 3-Blunt Competitor Strategies: Personalized variable direct mail can be effective in battling a range of competitors, from big chains to hard discounters. Making use of this strategy can help to neutralize new market entries by competitors while at the same time rewarding valued repeat shoppers. 4-Redefine Trade Areas: This personalized approach helps to establish and grow a primary trade area. It’s common to achieve material increases in unique shoppers with each campaign. 5-Engage with Customers: The point of a personalized program is to connect directly with individual customers and households to boost basket sizes. It’s also geared to supporting new customer acquisition by understanding the similarities your core shoppers have with those who are not currently your customers. Marketing pieces can be customized for a wide range of demographics and other attributes to boost performance. This strategy can be particularly effective in gaining the loyalty of millennial shoppers, who are famously resistant to brand loyalty. +MORE

CART Weekly Report 3/28/19

CART, Advancing Retail

"PRESCRIBING" FRUITS AND VEGGIES WOULD SAVE $100 BILLION IN MEDICAL COSTS | Fast Company Gary's Take: The massive food and healthcare industries are converging, driven by healthcare costs, widespread chronic conditions, the growing understanding that food is medicine, and all enabled by technology. Read about iRetail comes to Healthcare in my latest book, Retail in the Age of 'I' available on Amazon. 50,000 WAREHOUSES TO USE 4 MILLION ROBOTS BY 2025, SAYS REPORT | Robotics and Automation News Gary's Take: Automation is exploding across distribution centers as more than 4 million robots are projected to be deployed in 50,000 warehouses by 2025. That's more than a 10x increase from the 4,000 warehouses using automation in 2018. The growth of eCommerce is driving more automation as companies are focused on efficiency and accuracy in order fulfillment. At the core of the rapid increase in robotics across the supply chain are growing capabilities enabled by AI. To stay competitive, retailers and wholesalers must look to the use of automation, both in existing distribution centers and new warehouses. This trend creates big opportunity for retailers to redirect resources into customer-facing roles to improve service and customer-focus. WILL RETAILERS BE READY WHEN AR ADOPTION TAKES HOLD? | RetailWire  Sterling's Take: AR or VR (or any technology) is not the answer. It should be the result of finding better ways to deliver more value to the consumer. As we’re able to create meaningful experiences that use AR/VR, something like 65% of shoppers expect it will change the way they shop, so they’re ready and willing to engage. ARE AMAZON'S PRIVATE LABELS FALLING SHORT OR JUST GETTING STARTED | RetailWire Sterling's Take: The key that Amazon has is that they've built into their culture the ability to learn, adjust and change. Even with limited success, I'm sure they're not only capturing all the data, but understanding exactly what is happening and why for their next iteration. Instead of worrying, other retailers and brands can focus their efforts on developing their people and their cultures to continually learn how to deliver increased value to the shopper. FEATURED BLOG OF THE WEEK: IT'S INDEPENDENT RETAILERS WHO ARE BETTER POISED TO TAKE ADVANTAGE OF TECHNOLOGY, Guest blog by Chris Cialone, Director of U.S. Sales Operations, Wonder Rewards​ HAPPENINGS CALL FOR PRESENTERS FOR VR/AR ASSOCIATION RETAIL & eCOMMERCE MAY WEBINAR DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION​, Boston Immersion Event Apply to present at Retail Tomorrow Labs: Boston Immersion Event on July 17-18 SPRING 2019 RETAIL INNOVATION PITCH EVENT, hosted virtually on May 23, 2019 ​Get on the Inside - CART Community FOR RETAILERS>>  FOR SOLUTIONS>> Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. +MORE

Harvesting Media

Harvesting Media

Email Marketing Text-Message Marketing Customer Data Acquision Digital Displays In-Store Activations Content Development Social Media Management Hyper-Targeted Paid Campaigns Digital Data Analysis Video Production Ecommerce Optimization Competitive Reporting Online Review Management Creative Digital Design Strategic Initiatives Local Search Website Management Print Media (If You Make Us) +MORE

Connect

Why Your Grocery Store Needs the Latest Scanning Technology

POSRG

For independently owned grocery stores to stay competitive with nation-wide retailers like Costco and Wal-Mart, having the latest point of sale (POS) hardware is essential for both customer and employee experience. While there is no replacement for knowledgeable, friendly cashiers, the checkout line is the nexus of the grocery store experience. A bogged down point of sale severely limits an independent retailer’s ability to effectively manage long queues, ultimately sacrificing their business to larger chains. Outdated and inefficient scanners at the POS means longer lines, frustrated customers and abandoned purchases. A POS upgrade can be a simple yet effective solution to many of the challenges faced by independently owned grocery stores today. Staying on the Forefront of POS Technology  A modern retail management system can narrow the gap between independent grocers and larger chain supermarkets. People often prefer the feel of a locally owned and operated grocery store to that of a larger chain, but in order to retain a loyal customer base, maintaining high quality equipment that serves the needs of the customer is a must. It is imperative for independent retailers to be on the forefront of technological POS advancements to stay competitive amongst the nationwide conglomerates. Smartphone use is constantly increasing as it integrates itself into virtually every aspect of the modern world, retail included. Being able to easily accept mobile coupons, pay via phone, scan items without concern for damaged barcodes, and weigh items quickly and accurately to reduce shrink are all elements that a store should consider when assessing their current stations and maximizing checkout efficiency.  Effective Mobile Couponing As mobile couponing becomes more widespread, it is important to implement equipment that can actually process electronic discounts. If you can’t accept a mobile coupon, customers may end up buying those products elsewhere, lowering your profits and decreasing the likelihood of the customer returning.  And while some POS systems do accept these coupons, a customer usually must either hand the phone to the cashier to scan, or the cashier must use a handheld scanner (relying on steady hands from both parties) to input the coupon code. Unfortunately, there is always the unwanted possibility of a dropped phone in this exchange, causing the grocer to be held liable for damages to the customer’s phone.  Customer Side Scanners State-of-the-Art checkout scanners now include customer side scanners for both ease of use and liability concerns. If the customer is able to use their phone to enter their loyalty information or coupons, scan an impulse buy at the counter, or even—eventually—make mobile payments, the cashier can focus on improving your store’s efficiency while the customer is supplied with an effortless way of entering information or discounts.  Versatility in Scanning Speeds up the Process  New scanning equipment also uses better quality laser scanning, with both vertical and horizontal scanning windows and omni-directional symbol orientation, helping to improve overall scanning speed. Many of these units can read barcodes even when they’re under plastic wrap, damaged or worn, faded, or poorly printed. Older scanning units can have scratches on their glass platters, increasing the time it takes to move items through the checkout line. Newer models use glass that is scratch resistant, limiting lost time and helping items ring up smoothly. Although lines may be long, with modern POS equipment discouraged customers may be surprised by the short wait times, therefore increasing customer satisfaction.  Maintenance Made Easy POS maintenance can also be an issue for independent supermarkets. With the advancements of technology, checkout lanes and their hardware are not immune to obsolescence. As equipment ages, it can become more difficult to service, taking longer and costing more in both labor and downtime. And while upgrading your store’s POS can cause concern—you might worry that it would be too costly or time-consuming, or even call for altering the structure of the checkout counter—products are now available that can reduce the total cost of ownership, lowering the time needed for servicing and overall power consumption. They’re easy to install, use a minimal number of parts, and have no moving pieces, thereby providing fewer failure points. Also, the housing of newer systems is often secured without screws, increasing accessibility for technicians and lowering checkout downtime.   What to Expect From Reputable Service Providers As a Point of Sale IT solutions and service provider, POS Remarketing Group is committed to helping your store manage every need at any phase of your equipment life cycle—from preventative maintenance and onsite repair to custom configurations made to order from our partnered, reputable brands. To stay competitive with nation-wide retailers and supermarkets, your equipment makes a difference to both customer and employee experience.  As experts in POS servicing and maintenance, POSRG can make these possibilities a reality, helping you acquire and implement a new checkout system that that will keep you competing with larger retailers. Upgrading your POS hardware is one of the easiest and most rewarding means to boost profits, reputation, and customer satisfaction.  Contacting Us If you’re interested in our services, we can be reached at www.posrg.com. We are confident that we can help with any POS or IT issue and provide valuable solutions. We will be present at this year’s National Grocers Association Show, occupying Booth 1015, where we’ll be showcasing the Zebra MP7000, a top of the line checkout scanner with some of the technology and features mentioned in this article. The details of our exhibition can be found here. Stop by and say hello, and we’ll be happy to show you our knowledge and expertise firsthand. +MORE

It’s Independent Retailers Who Are Better Poised to Take Advantage of Technology


Chris Cialone, Wonder Rewards, Director of U.S. Sales Operations

Usually it’s the big chains that get the credit for leveraging the latest in technological innovations. We’re all used to seeing the splashy headlines announcing Kroger, Ahold or Amazon about to launch another new tech-centric feature or capability.  And it makes sense, one would think – the big guys have the big budgets, have innovation labs, and have R&D funding.  But independents have something the retailers don’t have – faster and nimbler decision-making abilities. Unfortunately, many independents don’t capitalize on this strength, waiting instead for technology to filter down – and by then, customers aren’t as excited and any point of differentiation is long gone. Today’s regional supermarket chains should find partners that can provide them a technological edge. Companies like Wonder Rewards, who have the ability to launch a turn-key, 100% digital loyalty marketing program that drives incremental sales by attract new customers, retaining the best customers, and offers up-sell and cross-sell opportunities. Wonder Rewards uses transactional data to: Plan out a responsive customer journey Analyze data for insights and segmentation Design marketing campaigns using insights Execute those campaigns with offers and content in personalized texts, notifications or email Report on results, re-calibrate and optimize campaigns What other technology is under-utilized by independents? Globalization. Technology has made the world smaller, it is now possible for a local grocery retailer to expand their customer base to include consumers in other countries, and these consumers LOVE American-made consumer packaged goods. There is a high trust factor to consumable products made in the US under stricter government safety regulations that exists outside of the US. Technology, like that made available to independents allows products sold by grocery retailers to be sold and delivered to the doorstep of millions of consumers in Asian countries.  In another example of an attention-grabbing headline from a big chain, last August Kroger released a statement saying that “e-commerce enables Kroger to quickly scale to reach new customers and markets where we don't operate physical stores, starting with China.” And that the arrangement will “meet Chinese consumers' growing demand for high-quality, organic food products.” Independent stores can now do the same with the Wonder Rewards online marketplace. You can expand the size of your customer base from your local market area to include millions of Chinese consumers who appreciate the value and quality of American made consumer package goods.  A logistic partner manages the process from product placement on the online marketplace to shipping direct to your new Chinese customer’s doorstep. E1 Marketing Edge is an example of an emerging tech-centric company that can expand the size of independent retailers’ market from those within a reasonable driving distance to a global audience, regardless of language or culture. Interested? Stop by booth # 1204 at NGA to learn more. +MORE

Meet Your Point of Sale Solution: Modular Now™

Amy Pulcini, Marketing manager, Innovative Workspaces

Innovative is pleased to be showing their Modular Now™ product line; a customizable mount solution for point of sale at The NGA show 2019. With various pole heights and mount styles, extension arms, and accessories; Modular Now ™ is the perfect solution for any point of sale environment. Expert engineering and a thoughtful production process means Modular Now™ is one of the highest quality POS mounting systems available.  Meant to withstand heavy use in point of sale environments, Modular Now™ provides an upscale look and clean aesthetic without sacrificing quality or durability. “Not all point of sale environments are alike, which is why Modular Now™ was developed. It allows our customers to quickly and easily create custom tailored solution.” says Jarrett Dugas, Point of Sale Manager. “It allows users to maximize counter space by using a single pole mount to support multiple displays as well as a payment terminal device, receipt printer, and even a keyboard tray for low counters.  Internal cable management helps maintain a clean, sleek, and attractive esthetic.”  Every customer has a unique way of doing business and therefore needs their own unique solution. Ergonomics are also becoming increasing important to reduce workplace injuries and increase employee comfort. Modular Now™ helps solve these challenges by providing a fully adaptable mount solution that can be tailored to each customer’s need. The result is better ergonomics, reduced development costs, reduced lead time, better long term support, and an upgrade path for users as parts are interchangeable. Why choose Innovative for your Point of Sale Solution? Configurable POS Solutions Not all POS installations are alike, which is why Modular Now™ was developed to allow customers to quickly and easily create a custom configured solution. Use our Modular Now configurator to build yours today. Durable Solutions for Continuous Use POS environments are notoriously heavy-use, which is why point-of-sale applications need mounting solutions that are designed and built with durability in mind. Expert engineering and a thoughtful production process means Modular Now™ is one of the highest quality POS mounting options available. Image is Everything Choose Innovative’s clean, attractive POS design to convey a quality image straight through the checkout process. Maximize Counter Space More counter space means more selling space. A single Modular Now™ pole mount can support multiple displays, a terminal payment device and a printer. Place your technology exactly where you need it Monitors, kiosks and payment terminals can quickly be placed in user-convenient positions with Innovative’s POS solutions. Do you have a unique requirement? Bring your custom projects – Innovative’s custom-design and rapid-prototyping capabilities will deliver. Join satisfied customers and partners such as Kohl’s, Starbucks, McDonald’s and Chick-fil-A to improve your POS setup today. Check out our full solutions catalog her https://innovativeworkspaces.com/pdfs/Innovative-POS-Catalog.pdf Don’t see what you need? Don’t worry. Product configuration is our specialty. Whatever your project specifications, Innovative can help you find the right solution.  Contact us today about your project requirements and technology mounting specifications: 800.524.2744 InnovativeWorkspaces.com/POS +MORE

Innovative Workspaces

Innovative Workspaces

Designer and manufacturer of ergonomic monitor mounting and height adjustable sit-stand work space solutions.  Products Innovative is an award winning market leader of monitor, laptop, and tablet mounts. We are committed to creating reliable products through insightful design, responsive manufacturing, and superior product performance, providing the best in space savings, flexibility, and ergonomic benefit.  Monitor Mounts Regardless of application, our monitor mounts offer ergonomics, flexibility, and space savings for the professional user.  Height Adjustable Bases Encourage a healthier workplace by giving workers the ability to add more movement into the work day.  Sit-Stand Workstations Improve wellness and productivity in all work environments by incorporating standing into the day.  Power Beam + Benches Bring power and data into open spaces by choosing our power and data beam or our benching system which incorporates a built-in power beam. SHOP OUR SOLUTIONS > +MORE

Connect

Vegetables Shouldn’t Be the Only Green in Your Market

Rachel Prince, Business Development, Tebo Store Fixtures

Every day, millions of people go shopping for groceries. They go to large and small grocery chains, independent markets, and even farmers markets- we all need to eat. Driving to these grocery stores wastes enough emissions as is, shouldn’t your shopping experience in turn be more efficient? By adding the use of Promolux LED, Econofrost Night Covers and Digital Menu Boards, your market can go from an ordinary every day or week occurrence to a fun, engaging and more energy efficient shopping experience. The first way that your grocery store can go green while enhancing the look of your product is by incorporating the use of Promolux Lights. Promolux Lights are a form of LED lighting specifically designed for your meat, produce, and other refrigerated displays. These long-life LED lights have a low-lumen depreciation which means they last long while staying bright. They also encompass a frosted technology which provides a diffused light to deter shadows and dark spots on food to keep it looking fresh and delicious. These lights and their cool physical temperature are safe if close to food and sprinklers and when added to your market, help save energy all whilst keeping your refrigerated displays looking superior to the rest. The next option to consider, Econofrost Night Covers, focuses more on efficiency than anything else. Econofrost Night Covers are used specifically in refrigerated cases instead of using traditional mesh or plastic covers to protect perishables. These covers are more hygienic than the traditional night shields and they reduce radiation and heat transfer onto the product. By incorporating these night shields, your grocery store can save anywhere from 37-50% of normal energy use per hour- an overall 10-12% energy savings in a 24hour period. Econofrost keeps your refrigerated cases cooler during downtime and helps reduce the amount of food shrink and discard levels up to $1 per foot per day, even during power outages and natural disasters! Because of the massive energy savings involved, some grocers have been granted tax considerations for their conscientious environmental contributions. As you can see, Econofrost Night Covers are a great way to save you money as well as keep your store running green and efficient. So far, we have discussed two energy saving options which help markets stay fresh and green, but where is the excitement and fun in all of this for consumers you ask? That is where Digital Menus enter the equation. Digital Menu Boards may just be your new favorite way to display specials and entertain customers in an economically friendly manner. Joe Michaels, VP of Product Development for the Tebo team and an active NGA member for over 10 years, has designed and built menu boards specifically for independent grocers. They a great way to market high margin and signature product, increase revenue and save money. Let me take a step back and let you know what exactly Digital Menu Boards are and why they need to be included in the grocery world more now than ever. Digital Menu Boards are durable and commercial grade screens with the option to display daily or weekly menu options, specials or ads. They have the capacity to play a moving video while highlighting the screen in different areas for specials or can be a still display to your liking. Besides all the technicalities involved, Digital Menus can help a busy lunch hour or day go by seamlessly. I will explain why in a moment. The first direct energy saving aspect involved in Digital Menus come from the elimination of paper and plastic signage, therefore cutting down on waste. Digital Menus have a proven 8-22% increase in revenue when used thoughtfully in store; whether it be the deli, over the hot foods, or on top of a refrigerated case. Aside from being green from the energy standpoint, they can also be green for your pockets by bringing in more desired sales. Another great opportunity stemming from Digital Menus is that customers can easily see highlighted specials on the board which, in turn, help sway people to purchase the item in focus. Highlighted specials are a great tool to use to drive customers to purchase more profitable and signature items. Even more, on top of the many previously stated benefits of menus, is their assistance with perceived wait times. From experience, I have noticed people often get impatient when waiting on their sandwich to be made or waiting in an order or checkout line, but this solution gives customers something to look at which can take their mind off their task, therefore making their perceived wait time dissipate. We at Tebo have been successful in integrating Promolux LED, Econofrost Night Covers and Digital Menu Boards into chain grocery retailers such as Super Value, Piggly Wiggly, Associated and Unified Grocers, as well as many single-location markets. These three solutions, designed with independent grocers in mind, have the capability to improve efficiency and save you money as well as provide a more inviting shopping environment. The focus above all is to keep markets eco-friendly and people-friendly, thus ensuring that vegetables will not be the only green in your market. +MORE

Tastry aims to shape the alcohol and food industries with the launch of new wine & food pairing platform

Katerina Axelsson, CEO , Tastry

Tastry, an AI company that uses flavor chemistry and machine learning to recommend products based on an individual’s palate and preferences, announced today the launch of their food and recipe pairing platform. Although food and wine pairing isn’t a new concept, Tastry has identified drivers for a change in this sector both for the consumer and for food and CPG manufacturers.  Their current wine recommendation platform has a proven 45% increase in consumer satisfaction and an average 3-5% lift in category sales for participating retailers.  Tastry’s data can help manufacturers predict and develop delicious, memorable foods targeted for an individual as well as cut R&D costs and predict emerging wine and food trends per shopper both regionally and beyond. Their new food pairing and recipe platform will offer recommendations based on what bottle of wine is being purchased, the dish being served, and even the occasion for a gathering. “We are excited about the launch of our new platform and the robust recommendations it will provide for customers, ” said Katerina Axelsson, CEO of Tastry.  “We believe that this new platform will allow consumers, CPG developers, and retailers to have a very personalized and informative experience as we continue to grow and increase our market presence.” Tastry has plans in the near future to release a recommender in the cannabis sector and will be issuing details shortly. To receive this information upon release, email Starr@tastry.com About Tastry: An AI company based in San Luis Obispo, California. Their patented technology has the ability to evaluate consumer taste preferences to sensory-based products using analytical chemistry, machine learning, and AI. Tastry has accurately taught a computer how to taste. The technology serves retailers by providing science-based suggestions for product development, inventory purchase, and direct-to-consumer recommendation. +MORE

Social Media: The neglected customer service department

Charlie Luck, Display and Instagram Marketer at Cisco

In today’s perpetually connected world it is more natural to contact a brand via social media than the traditional phone call. The instant nature of all social media platforms beats email and sometimes even phone calls. No customer enjoys being put on hold! Knowing that they can tweet a query or complaint and receive a reply or resolution a few minutes later will give customers plenty of peace of mind. 1. Address the Complaints Quickly! When a customer complains about you on social media, it’s important that you respond, and respond promptly. Even if you can’t immediately fix the issue, it’s great to acknowledge the customer and their problem. A simple “thanks for the feedback, we will work to resolve this issue as soon as possible” can go a long way with a disappointed client.  Customers love to feel seen and heard. There is nothing worse than waiting forever for a response from a company when you have a problem with a product that you bought from them. People get angry when they feel that they have wasted their hard-earned money. If you respond quickly and positively to complaints on social media, you may be able to turn a disgruntled customer into a loyal and raving one with just a minute of your time.  A customer willing to take their time to bash a company through social media also has great potential to gush about that very same company if their experience is turned into a positive one. Turning a sour customer situation around is easy when a company is regularly active in responding to their customers’ complaints on social media. The company also can showcase their superb customer service skills to the rest of the world when quickly addressing customer complaints.  2. Entertain or Inform!  Social media should be eye-catching, and overall, fun. Scrolling mindlessly down the timeline is a difficult reflex to break for most social media users. You need to arrest that mindless, endless scrolling of the Instagram or Twitter feed with interesting, challenging or even controversial content. The more creative you are with advertising, the better.  Funny pictures, interesting quotes, even relevant video links can capture attention from your potential customers. Posting unique messages on social media will set your brand apart from other companies that offer similar products.  A customer will remember a funny picture advertisement that made them laugh for far longer than they would a boring sales slogan. Don’t forget the power of the share. They will also be more likely to spread that funny ad and tag their friends in it--creating, even more, potential customers.  For instance, “going live” is a newer social media feature that many companies can utilize to engage their customer audience. This feature could be used to show sales in real time, to introduce members of a store team, or to showcase an event and create buzz.  Using creative hashtags or employing instagram influencers on social media to start contests can also be an effective way of getting an audience’s attention. Involving customers and starting a conversation with them online generates more views which lead to more business. Companies need to be ahead of their competition by displaying an online presence that makes their product or service more exciting and engaging.  3. Use Social Media to Educate Using social media as an educational tool and not just for advertising can bring you more customers while also answering questions that many potential customers might have about your product before they decide to purchase it.  Businesses can creatively post facts about their company as well as answers to frequently asked questions on their social media accounts. By using this strategy, you are proactively providing customer service before a customer might individually come seeking help.  Social media helps to reach a wider audience in less time than one-on-one customer service may take. Lens.com created a customer knowledge database which compiled answers to a plethora of common questions that many customers had. This proactive educational step brought them a significant increase in customer satisfaction ratings. Giving the customer more information right up front could also lead to an increase in sales (knowledge is power, after all). 4. Take Customer Suggestions While customer complaints might seem discouraging, they are a great tool for businesses to build on. A complaint is feedback that you can use to better your product. No one can improve unless they know what it is that they are doing wrong in the first place. The only way to grow as a business is to listen to what the consumer wants, and to then give them what they asked for.  When a customer posts on social media that the ice cream shop was out of their favorite flavor, the owner of that shop can apologize, and now knows to keep more of that particular flavor in stock since it’s obviously become more popular than he/she knew. Social media provides the opportunity to connect with the consumer in an immediate and convenient way.   There is hardly anyone left in the world that doesn’t own a smartphone or tablet, and everyone checks their devices on a daily basis. Checking into social media several (and sometimes hundreds) of times a day has become the normal routine for more than 50%  of the human population. By building an eye-catching and substantial social media presence, you can make your brand indispensable to the daily lives of customers in a friendly, memorable, and non-invading way that they will appreciate.  Today, most social media platforms are interactive with one another, so it is best for businesses to keep all of their social media accounts linked. Some customers may prefer Instagram to Facebook, and if a business’s posts are shared among multiple social media platforms, they will have a higher chance of reaching a larger customer base. If brands fail to recognize the marketing tool that social media has become, they will miss out on the most impactful (and often, the most cost efficient) form of advertising and customer service that is available in this day and age.  +MORE

Amazon’s Whole Foods Acquisition Ramps up Grocery Competition

Sterling Hawkins, CART

Only a year after Amazon completed its acquisition of Whole Foods, the resulting merger has ramped up competition in the grocery segment.  Amazon entered the grocery segment as part of a strategy to make it more compelling to be a member of its Prime program, a paid service that includes deals and speedier shipping. Prime members tend to buy more things and are entrenched in Amazon's ecosystem.  Amazon founder and CEO Jeff Bezos summed up the strategy: "I want to make it fiscally irresponsible to not be a Prime member." Therefore, targeting a grocer like Whole Foods was a smart move.  "If Amazon wants to make it super compelling to be a Prime member, it makes sense to make those discounts and benefits available and applicable in everyday shopping items like grocery," said Sense360 founder and CEO Eli Portnoy. By acquiring Whole Foods, Amazon has made Prime benefits available in daily shopping situations like buying groceries. For instance, Whole Foods offers Prime Deals and yellow sign deals, an extra 10 percent off sale items for Prime members. With these regular benefits, Whole Foods shoppers have a compelling reason to become and remain Prime members, and Prime members have an added incentive to shop at Whole Foods. Prime discounts have had a powerful impact on Whole Foods' performance among Amazon users. For example, the gap between Amazon and non-Amazon users who shopped at Whole Foods spiked 2x in mid-May, when Prime Deals debuted in Florida. The deals are rolling out to more stores nationwide. Sense360 also looked at the conversion of the general population of grocery visitors in 2018 vs 2017 and found that in May, June, and July of this year, Whole Foods market conversion increased from 4.8 percent of all grocery store visitors to nearly 6 percent when compared with the same period a year earlier (2.2 million visit sample size). The data illustrates how Amazon has created a cycle of competitive advantage that is challenging for grocers to compete with. The merger creates more value for Prime members and will likely increase Prime membership. That means more traffic and loyalty for Whole Foods, a win-win for Amazon and a tough formula to go against. To understand how the merger is affecting the grocery segment, Sense360 analyzed Trader Joe's traffic. The grocer was selected because 36 percent of Trader Joe’s customers also visit Whole Foods, a significant overlap. Trader Joe’s customers also have similar motivations as Whole Foods shoppers, namely food quality, health and nutrition, items not found elsewhere, and specific items or brands carried. Sense360 data showed that in 2017, Whole Foods’ and Trader Joe’s head-to-head visit share (relative traffic when two brands have stores within a mile of each other) was 51 percent to 49 percent, with Whole Foods slightly ahead. But during Prime Deals this year, it rose to 53 percent to 47 percent, with Whole Foods winning more share. That means Whole Foods is winning 4 percent more of those up-for-grabs visits when the two brands are in close proximity to each other.  Whole Foods’ gains aren’t just limited to Trader Joe's. Whole Foods has grown head-to-head market share against national retailers including Safeway, Walmart and Costco. "Whole Foods has actually increased market share when in close proximity to almost every national competitor in the grocery market, including mass merchandisers, drug and dollar stores," Portnoy said. Overall, Amazon is a formidable competitor with an enviable advantage due to the cycle it has created between Amazon, Prime and Whole Foods. "This cycle is going to perpetuate itself, and it's going to create meaningful challenges for the category," Portnoy said.    But there are still opportunities for grocers to compete against Amazon’s empire. Portnoy advised focusing heavily on data, rapidly testing and validating every hypothesis, and being prepared to course correct.  +MORE

Singularized Product Recommendations

Tastry, Inc.

Tastry is a multidisciplinary innovator in the fields of Artificial Intelligence and Analytical Chemistry which leverages hybridized Expert and Content-based Machine Learning and Flavor Chemistry to provide Multi-Criteria Recommender Systems. …we like to say we “Taught a computer how to taste”. +MORE

Connect

Retail POS and IT Hardware and Service Solutions

POS Remarketing Group Inc.

POSRG provides innovative and tailor-made solutions and support throughout the complete life cycle of our customers’ POS & IT hardware. There are many ways POSRG can help your stores get the technology and services needed to run efficiently and effectively.  Whether it’s new hardware or repairs, or on-site services such as store wirings or installations, POSRG has been in business for 15 years helping retailers of all types with their retail IT solutions. IT Hardware solutions – New or refurbished to match existing environment – POS, Digital Signage, Surveillance, Networking, Telecom, etc. Retail IT Services – Store wiring, Site Surveys, IT and POS Installation, On-Site Repair, etc. Hardware Repair and Maintenance Programs – Flat rate or customized plans to prevent and minimize downtime in grows and dispensaries Managed Network Services – Cloud PBX, Managed Wi-Fi, SD-WAN, Cellular Failover, etc. IT Asset Disposition, E-Waste and Data Destruction – Certified, end of life solutions that provide piece of mind and limit liability +MORE

Connect

Customer Touchpoints and the Human Experience

Gary Hawkins, CART

I was visiting someone in the hospital the other day and, looking about the room, noticed an Amazon Echo installed on the wall opposite the hospital bed. There was a sign under the device telling patients that they could ask Alexa to call their nurse or make other requests. In speaking with the nurse I learned that Amazon is working with the hospital in a pilot to test the application of Alexa in the hospital environment. Beyond the hospital, Amazon is pushing Alexa into the hospitality industry where a growing number of hotels are putting the digital assistant in rooms so guests can request services just by asking. While this alone is fascinating, and illustrates just how far and how fast voice-based technology is moving, it really opens up a larger discussion on customer touchpoints. Retailers today have a fast growing number of ways to connect with a shopper, inside and outside the store. And, more than ever before, retailers need to be mindful of the human experience they are providing across those myriad touchpoints because in today’s digital world, user experience is everything. Consider the myriad ways a retailer can touch a shopper: In the digital world that includes the website, mobile, email, text, social media, and more. A Deloitte study calls out that “more than 60% of customers interact through multiple channels and irrespective of time, place, device, or medium, they expect consistency.” In the store, retailers can engage using kiosks, mobile, and the POS. We can’t forget about print, including the weekly ad and direct mail, along with television, radio, and other mass channels. And of course, just like in the hospital, voice will soon be everywhere. A good exercise for retail marketers to go through is to create an inventory of all the touchpoints they currently use, and then alongside that create a list of other touchpoints that could be deployed or used. Once the list of existing touchpoints is created, work to understand which shoppers are using each and why. For example, do high-value shoppers regularly use your mobile app? Do more convenience shoppers gravitate to your website?  Don’t forget about your associates; oftentimes they are the only interaction the shopper has with your business. The Wall Street Journal had an article recently about how airlines are arming their flight attendants with extensive data on their flyers to facilitate service on board. As a very frequent flyer I have experienced this firsthand, the attendant addressing me by name and asking if I would like my usual drink. Retailers have untapped potential to arm in-store associates with product and customer intelligence via smartphones to help them provide better service. One of the largest challenges traditional retailers face is having disparate capabilities and an inability to provide the seamless digital experience across devices and touchpoints that today’s shoppers are expecting… and demanding. Another Deloitte study (Customer Ambitions Delivered) states “research shows 89% of market leaders expect to compete primarily on the basis of customer experience - a number that has jumped from 36% four years ago. As more companies realize the benefits of engaging with their customers along every touchpoint, customers are growing accustomed to top-of-the-line experiences. Modern customers expect a tailored experience— one with flexible purchasing options, painless technology integrations, and ample opportunities to provide feedback if they receive stellar or sub-par products or services.” Retailers can then extend the inventory of touchpoints exercise, thinking through the ‘mission’ of each touchpoint and its role in growing (retailer brand) awareness, shopper acquisition, growth, and retention. Core to this is making every interaction across each touchpoint contextually relevant to the shopper. Again, the human experience is critically important. Every customer engagement at every touchpoint provides an opportunity to learn more about the shopper and, for digital touchpoints, provide a more personalized experience. To do this requires identifying the shopper as quickly and easily as possible so that you respond with relevant offers and information. Increasingly we are seeing digital displays and signage in the store incorporate cameras and other sensors able to provide additional analytics and insights to customer behavior. Best practices: Create and maintain a list of customer touchpoints used. Consider grouping the touchpoints such as digital, print, in-store, etc. to better understand your capabilities Create a ‘mission’ for each touchpoint which forces you to think through how it can be used to support shopper acquisition, growth, and retention Work to create a platform infrastructure that ‘feeds’ each touchpoint to create the seamless - and relevant - experience shoppers want Use every touchpoint and customer engagement to learn; improving the relevancy of the engagement and learning to make the touchpoint more valuable Any digital touchpoints should be fed by realtime intelligence reflecting the latest interactions the shopper has had with you _____________________________ To learn more join the CART team along with Kate Favrow, Corporate Marketing Manager for AWG, and Roger Marin, CIO of Draeger’s, for the upcoming Customer Touchpoints webinar on Tuesday, July 24, at 2pm Eastern. View article on Winsight Grocery Business here   +MORE

The Amazon Doctrine and the Innovation Arms Race

Gary Hawkins, CART on Winsight Grocery Business

Amazon CEO Jeff Bezos has long understood the value of being out in front as technology innovation fundamentally alters the rules of competition. While other companies have long based competitive strategy on technology, what’s different is this point in time: We are at the inflection point on the exponential growth curve of computer processing power where noticeable change happens at an ever-increasing pace. Amazon is leveraging its innovation leadership position harnessed together with its vast resources to overwhelm the traditional grocery industry, relegating many retailers to the proverbial corner convenience store. Sound familiar? It should. In the 1980s, President Ronald Reagan, in what was to become known as the Reagan Doctrine, leveraged the powerful U.S. economy with the country’s burgeoning military innovation to launch an arms race with the Soviet Union. The result, as we all know, led to the collapse of the USSR and the end of the cold war. Last year’s acquisition of Whole Foods by Amazon triggered a grocery innovation arms race, throwing traditional retailers into a war few were prepared for. How bad is it? As Recode recently reported, Amazon spent nearly $23 billion on innovation research and development last year (2017), up 41% from the year before—more than any other U.S. company, That’s more than Microsoft, Intel, Facebook and even Apple spent on R&D. To put that in perspective for the grocery industry, a report from the IHL Groupstates: “Amazon’s 2016 R&D spending was more than the top 20 retailers (excluding Walmart) technology spending combined … and about 75%-85% of the top retailers’ IT budgets is spent on simply maintaining and upgrading existing systems. As such, retailers are completely outgunned when it comes to spending on IT.” And yet more evidence of the Amazon doctrine in action: The battle for voice-based commerce is already over—long before most retail executives knew the battle had even started. According to USA Today, “Purchases made through devices like Google Home and Amazon’s Echo are projected to leap from $2 billion today to $40 billion by 2022.” Here’s the kicker: “Amazon is forecast to have 70% of the voice-enabled speaker market this year (2018), per Tech Crunch. By 2020, it’s projected that there will be 128 million Alexa devices installed.” Amazon is aggressively expanding the Alexa platform, weaving it into everyday life, through partnerships with auto manufactures, home appliance makers, and even Microsoft to bring Alexa into the workplace. Amazon's Formidable Lead But innovation spending is not the entire challenge. No matter how much a retailer may spend on innovation today, it cannot overcome the lead Amazon has built. Patent filing activity provides a view into the overwhelming power of the Amazon doctrine. Amazon received 1,963 patents in 2017 and holds more patents than any other retailer in the industry (7,096). By comparison, Walmart, perhaps the most serious traditional retail competitor, holds only 349 patents. It may already be too late for a good number of traditional supermarket operators. The innovation arms race has gone nuclear as Kroger partners with Ocado to build automated fulfillment centers and Nuvo to use automated self-driving vehicles to deliver orders. Beyond digital disciples such as Kroger and Walmart, few retail companies have the wherewithal to invest so heavily in new innovation in an effort to keep pace with Amazon, the deity of digital. Innovation spending aside, many multibillion-dollar regional retailers are what I think of as digitally discombobulated. Many of these companies are trying to do the right thing, investing in e-commerce, putting the customer at the center of their business strategy and launching new digital services. But too often these retailers end up with overlapping capabilities, expensive or impossible system integrations, digital silos, and fractured user experiences. The very nature of competition has fundamentally changed and many industry executives do not yet get it. How important is user experience? Very. My wife and I regularly order restaurant meals delivered to our home. Living in southern California, we have our choice of delivery services; DoorDash, Grubhub, Eat24, Delish, Uber Eats, and many more. Yet for all those choices, Amazon Restaurants has won nearly all our business because of a seemingly simple thing: I can track the delivery driver in real-time through the app, knowing—literally to the minute—when dinner will be at our door. What should frighten retailers the most is that this battle is just getting started. As innovation accelerates, it is driving convergence between historically disparate capabilities and even industries. Companies such as Label Insight are using AI to deconstruct the typical package nutrition information into dozens or even hundreds of granular data points. Separately, health industry innovators are using cutting-edge data science to understand the individual person’s unique, granular nutritional requirements based on gender, weight, age and specific health conditions. At the same time, Apple is reported to be working on noninvasive real-time monitoring of an individual’s glucose levels. A well-known university is able to ascertain a person’s vitamin levels from a teardrop. And then there’s ScriptSave, with its long history of innovation in the pharmacy space, knitting together disparate capabilities to transform and personalize the health and wellness space. Think of it as a virtual dietitian helping guide the shopper to beneficial products across the store, ultimately driving recommendations off real-time health monitoring. And then embedding this capability at the intersection of food and healthcare.  What's the Next Move for Retailers? What are retailers to do? Is there any way to compete? Here are a few thoughts: Think integrated platforms not point solutions. This is especially important when considering customer-facing digital capabilities. Avoid disparate solutions powering up a splintered experience; one AI “brain” should be driving personalized, relevant engagement across every channel and touchpoint. Don’t build tech internally. Unless you are Kroger or Walmart, don’t think about building IT solutions internally; technology is moving too fast and has become too specialized. Instead, leverage advanced cloud-based solutions that provide a “technology putty”—leading edge capabilities molded to your brand and operations. Move faster. If there is one thing that I think endangers traditional retailers more than anything else it is the slow pace at which they are moving. There is no place for five-year plans; the game will be long over by then. Remember, you are now in a world of exponential growth of innovation—speed counts. So, is all lost for traditional retailers? Is the dominance of Amazon and the digital disciples a foregone conclusion? No, but retail executives must understand that shopper expectations now rule, that tech-based innovation is the new battleground, and that tomorrow will no longer resemble today. To view original article: Winsight Grocery Business +MORE

Pages