Retailspeak magazine is Microsoft\'s value proposition delivery tool for enterprise retail, consumer goods & hospitality sectors. The publication covers how implementation of Microsoft and their partners\' technology helps improve business processes, how it makes people\'s lives easier and ultimately delivering the people ready dream.
1. AUTUMN 2009
The definitive word on retail and hospitality technology
IN THIS ISSUE
The multi-channel
revolution
Technology to support
the future of retailing
In-room
entertainment
Boosting revenue and enhancing
travellers’ experiences
Social media
How retailers can target
Generation Y
Reaching out
Miami’s new Epic Hotel
goes online with SuiteLinq
Visit onwindows.com for news and views on retail and hospitality
“Customers trust the opinions of their friends and peers, and the ability to
A million reasons to thank Microsoft: Nitrosell’s Tom Keane seek opinions easily can mean significant ROI for retailers.”
endorses the Software plus Services vision. Page 38 ShiSh Shridhar, Microsoft
4. THIS ISSUE 14
digest
06 RETAIL TECHNOLOGY ROUND-UP
The latest technology news including a Windows 7 roll
out at Sheraton Hotels & Resorts, Astley Clarke’s
appointment of Snow Valley to develop its new Web site,
and the deployment of a Toshiba TEC EPOS solution at
Burger King’s new Whopper Bar in Europe
lead story
14 REACHING OUT
Rebecca Lambert looks at one hotel in the US that has
stepped up its game with the latest entertainment and
communication technology
features
20 THE CONSTANT RETAILER
How embracing a multi-channel strategy will carry
retailers into the future
20
26 THAT’S ENTERTAINMENT
Employing today’s in-room entertainment technologies
may just be the answer to boosting hotel revenue and
adding true value to the traveller experience. Lindsay
James finds out more
forums
32 Expert commentary from the speciality retail, food and
drug, hospitality and mass merchandise sectors
26
spotlight
36 How Microsoft in the UK is supporting customers in the
retail sector, and how retailers in Germany are remaining
stable this year
viewpoint
38 Thought leadership from IT professionals including
Microsoft’s ShiSh Shridhar on social media and Tom
Keane of Nitrosell on the benefits of S+S
33 37
technology in action
43 Successful implementation stories from around the world
interview
48 ARTS: THE PROCESS, CHALLENGES AND REWARDS
Richard Mader and Edvard Gundersen of ARTS speak to
ProfitBase president Larry LeBlanc
AUTU M N 2009 Retailspeak 5
5. retail technology round-up
DIGEST
E-COMMERCE POS WHOLESALE
Jeweller picks Snow Valley for e-shop ACA automates GANT Centric wins Dutch
The luxury online jewellery boutique
AstleyClarke.com has appointed Snow
operations director at AstleyClarke.com.
“We followed an extensive selection
flagship store client with Dynamics
Valley to design and develop its new procedure, and Snow Valley was chosen A recently opened GANT clothing flagship store has used Retailium Intratuin, a Dutch garden centre company, has implemented a
Web site. due to its wealth of experience in this software from ACA to automate its sales processes. Dynamics AX 2009-based wholesale process solution from Centric.
The online store will be delivered using sector, and the strength of its technical The new store is situated in the fashion quarter of Antwerp, Belgium Centric RetailWorld is an automated business solution that supports
Snow Valley’s MUSE e-commerce and creative teams.” and forms part of a collection of franchised GANT stores opened by the most important wholesale processes within the head office, as well
platform, which is based on Microsoft “Astley Clarke is known for its fine Dutch businessmen, and brothers, Kees and Frank de Groot. as the logistics operations between the head office and the stores.
technology including Commerce Server, designer jewellery and for the attention Retailium Openstore is used in the stores to process all POS Centric has started the implementation process, with completion
BizTalk Server and SQL Server. Astley to detail that it pays to its customers transactions, with Retailium Enterprise for Microsoft Dynamics NAV expected by the end of 2009.
Clarke will be taking full advantage of the and their service,” said Sam Andrews, serving as the back-office stock information system where it integrates Intratuin looked to replace its current IT platform due to increasing
powerful catalogue and promotion creative director at Snow Valley. “We’ll logistics, sales, purchase policy, as well as store and financial logistics activities and expected growth. The company said it selected
engines within Microsoft Commerce be helping the company to extend that management capabilities. Both products run on Microsoft Windows Centric due to its retail and process expertise, as well as RetailWorld’s
Server, while scalable integration with its right the way across its online store. 2000 or XP and require Microsoft SQL Server to deliver the best optimum functional coverage as a solution within Microsoft Dynamics
fulfilment system will be completed using When you order a piece of jewellery performance. AX 2009.
BizTalk Server. from AstleyClarke.com you can choose “The decision to select ACA and its Retailium Openstore POS systems Elsewhere, Centric has been invited to join the Microsoft Dynamics
A number of features will be for it to arrive in a beautiful box, was an easy one to make,” said Kees de Groot. “We were looking for a President’s Club for 2009, honouring its success in the wholesale and
introduced to the Web site, including wrapped in hand-pressed Japanese professional partner in automation that could offer us the functionality retail market. This success centred on the introduction of Dynamics AX
wish list functionality and an improved paper and Italian ribbon. The design and that we need to simplify the daily management of our stores and to 2009 to new clients and on the development of Centric TradeWorld,
‘tell a friend’ function. Guided navigation, the user experience must convey that give us more insight into the results of our company. The systems of Centric RetailWorld and the Microsoft Dynamics Retail Chain Manager.
allowing customers to view products magnificent level of service from the ACA lend themselves to this excellently. ACA responds perfectly to “It is a great honour to be a member of the President’s Club. This
grouped by type or colour, will be moment the customer goes onto the GANT’s need for innovative technology that supports and fortifies the reaffirms we are moving down a good road together,” said Denhard
provided using MUSE’s faceted search Web site. We’re really delighted to be active marketing policy of the organisation.” Jongman, director of Centric Supply Chain Solutions.
solution. The new e-commerce platform working with such a successful and
will also offer greater support for ambitious online retailer.” Further info Further info
marketing and promotions, for example www.gant.com www.intratuin.nl
allowing customers to be e-mailed a Further info www.aca.nl www.centric.nl
special offer for their birthday. www.astleyclarke.com
“We are very excited to be working www.snowvalley.com
with Snow Valley on our new e-
commerce platform,” said Vicky Lovell,
COMMUNICATIONS
UK charity more efficient with .NET
UK charity The British Heart Foundation
(BHF) has introduced a broadband-based
private network solution from Vodat
improving our customer service.”
The retailer’s new private network will
be fully managed. This means all issues
Loyalty.
International in its BHF Shops to improve connected with it are dealt with by Vodat
communications and productivity across International and there is no requirement In a world of lackluster loyalty programs, Retalix isn’t
the business. for the charity’s staff to monitor or
The charity will deploy Vodat resolve network problems.
just a me-too solution. With Retalix Loyalty™,
International’s solution, which uses “Our solution not only meets the
you can create exceptionally loyal customers that
Microsoft .NET and SQL Server, to charity’s immediate needs but it will also
manage the data for the sale of both allow them to adapt to changing not only keep coming back, but also increase your
donated and new goods across its stores. requirements in the future,” said Mike
The charity’s day-to-day operational Bielinski, CEO at Vodat International. profits. It’s just one of many ways the global leader in
information is currently being gathered “This fully managed network will not only
at the head office by overnight polling of provide a more cost-efficient solution to food retail, fuel retail and supply chain software can
the 600 stores’ EPOS tills via a standard BHF Shops’ communication requirements
phone line. Steve Biddle, head of finance but will also deliver the necessary deliver for you.
at BHF Shops, said: “This was obviously an platform that will enable them to
expensive and inefficient method and we introduce other applications such as EFT
wanted to reduce costs while improving processing and e-commerce applications.
reliability. We needed a flexible It will also allow them to develop
technology that would enable us to innovative and cost effective IP
manage our data network efficiently, telephony, electronic messaging and e-
improve communications between stores learning solutions, as and when the
across the business and assist us in business requires it.”
Vodat’s solution will significantly Further info
improve communications and www.bhf.org.uk SYNCHRONIZED SOLUTIONS FROM WAREHOUSE TO CHECKOUT.
www.retalix.com info@retalix.com
productivity at BHF www.vodat-int.com
6 Retailspeak AUTU M N 2009
6. retail technology round-up
DIGEST
WINDOWS 7 MULTI-CHANNEL
Windows 7 comes to Sheraton hotels Jacobs musters multi-channel front
Sheraton Hotels & Resorts will soon roll Harper, senior vice president of brand Cecil Jacobs, the largest independent
out PCs using Windows 7, giving guests in management for Sheraton Hotels & photographic retailer in the UK, has selected
its hotels a new way to stay connected Resorts. “We found our inspiration in Multi Channel Commerce (MCC) from Maginus
and find information about local parks because they’re a symbol of to improve the customer experience across all
attractions, restaurants and more. community where people gather to play its channels.
Link@Sheraton takes the standard hotel games, to eat and drink, or just to MCC, a Microsoft Dynamics AX solution, will
business centre – typically located away unwind. With that in mind, we designed be implemented in all 17 UK stores, including
from public areas – and incorporates it the Link@Sheraton to be much more than EPOS lanes, as well as in the back office and
into the lobby with the latest Microsoft a business centre. It’s a social enabler.” central distribution centre. The MCC e-
technology. This initiative follows research In addition to offering television and commerce solution replaces the existing Jacobs
carried out by Sheraton last year the latest magazines and newspapers, transactional Web site, centring all sales
confirming that the majority of its guests each Link@Sheraton site features channels on a single solution for an improved
prefer spending time in social places. communal tables, complementary wireless According to Harper, the Link@Sheraton customer experience, as well as increased
“We wanted to create a destination service, wired ports for personal laptops experience with Microsoft has had a efficiency and productivity.
where all of our guests could come to and at least four personal computers with marked impact on business. Customer “Our customer service offering is a top
socialise, be entertained, people watch, 17-inch screens, integrated Web cams and satisfaction has increased by ten per cent, priority and even though we already provide
or be alone but not lonely,” said Hoyt Microsoft Office 2007 software. and customers have noted Link@Sheraton an excellent service, we are always looking for
as a key contributor to why they would ways to improve this even further,” said Elliott
return. In addition, food and beverage Jacobs, general manager at Jacobs. “We went provide support, but had the capability to a fully integrated retail-centric solution covering
Did you know? revenue has increased by six per cent
because guests spend more time in the
through a careful selection process, as this
software is an investment in the future of the
grow with the company and continue to
improve our services, and MCC had the
all elements of a multi-channel solution – EPOS,
ERP, e-commerce and hosting – to help support
58 per cent of retailers have had a multi-channel initiative in place for at least a lobby. company. We liked the Dynamics platform and capability to deliver.” the business as it develops.”
year. Best-in-class companies are one and a half times more likely than industry reviewed a number of Dynamics suppliers, and Russell Dorset, sales and marketing director
average and laggard companies to have implemented these initiatives in that time. Further info Maginus impressed us with its expert at Maginus, added: “We are excited to be Further info
Source: Cegid/Aberdeen Group www.sheraton.com understanding of our multi-channel challenges. working with Jacobs, a growing specialist www.jacobsdigital.co.uk
www.microsoft.com We required a solution that would not only retailer, and feel we are uniquely placed to offer www.maginus.com
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8. retail technology round-up
DIGEST
news in brief... EPOS
Eurostop, a supplier of retail management
Toshiba TEC serves up
systems to the fashion, footwear and
lifestyle market, has been selected by UK
EPOS for BK
specialist sports company London Joggers
to supply an e-commerce solution for its Burger King has successfully TRST-A15 Expediter full order
new online store. The new site, deployed a complete EPOS solution printers. Whopper Bar will also run
www.ljsports.co.uk, will improve customer from Toshiba TEC for its new the Burger King back-office Antara
service by providing online access to Whopper Bar concept in Europe. software suite from Toshiba TEC.
London Joggers’ full range of stock. Microsoft Gold Certified Partner “We are very proud of our EPOS
Toshiba TEC is the designated EPOS solution for Burger King’s new
ABI Research has released an evaluation of solution provider for Burger King in hospitality concept and are certain
RFID software solution vendors for line of Europe and supports company- that it will provide increased value
business (LOB) applications called RFID Line owned and franchisee Burger King to customers,” said Toshiba TEC’s
of Business Application Software Vendor restaurants throughout the region. CEO Masamichi Kusunoki. “In a
Matrix. Xterprise was ranked as the top For the new Whopper Bar EPOS time of economic strain, it is more
software company in the RFID application solution, Toshiba TEC has installed important than ever for business
marketplace. The study focused on a small and will maintain hardware and partners to be able to provide
group of leading, highly-specialised software, including four WILLPOS outcome-focused, coordinated
vendors that offer LOB software solutions A20 EPOS terminals, four cash solutions and services.”
targeting a broad range of applications drawers, four credit card machines,
within asset and item management. four TRTST-A15 double sided guest Further info
printers, two CRT screens, two www.burgerking.com
Fashion software provider Pebblestone has Linerless Sandwich printers and two www.toshibatec.com
formed a UK partnership with QSSD, a
Microsoft Dynamics solution specialist, to
bring together fashion specific functionality
and ERP tools. Together the companies will
offer fashion tools based on Microsoft
Dynamics NAV technology designed to
enable fashion retailers, designers,
distributors, manufacturers, and suppliers to
increase the effectiveness of their core
design, operation, distribution, and retail
activities through one integrated solution.
The Whopper Bar is a smallscale version of a Burger King, and allows
UK brand consultant Nucleus is to use customisation of burgers
EpiServer’s award-winning Web content
management system (CMS) for the P&O
SUPPLY CHAIN
Cruises Web site. The Microsoft .NET-based
system will be used initially to replatform
and introduce usability enhancements to
www.pocruises.co.uk. Nucleus found it
EMS drives forward with
best matched P&O Cruises’ challenging
requirements as it is both user-friendly and
Dynamics NAV
intuitive, leading to a significant cut in
development time. Automotive component supplier ageing and expensive-to-run legacy
Electronic Motion Systems (EMS) system with a single company-wide
US tour operator Collette Vacations has supplies control modules and solution which was fully integrated
engaged with DataArt, a high-end systems for power conversion and across all areas of our business,”
software development company electric motor drive markets. It has said EMS general manager, Rolf
headquartered in New York, to help recently installed Microsoft Dahlmanns. “We had a real
modernise its corporate information Dynamics NAV with help from problem with data duplication.
system and to extend existing functionality Anglia Business Solutions. Some of our key business processes
to better support business processes and The project, valued at £300,000, such as MPS and MRP were reliant
the user experience. Built on Microsoft and completed in just four months, on information held in various
.NET, the new system allows purchasing was a 55 concurrent user single repositories outside the core
services from inventory suppliers, wrapping phase deployment of Microsoft system. Now we have a single
tour components into packages, Dynamics NAV. The end-to-end integrated solution to manage all of
distribution over the agent network, and supply chain solution covered our processes. This provides easy
in-field support for Collette Vacations’ tour financials, inventory, warehouse and efficient access to
managers. management and manufacturing. It management information on how
also included a state-of-the-art the business is performing.
integrated warehouse mobility
solution designed to provide real Further info
time stock information. www.electricmotionsystems.com
“EMS needed to replace an www.anglialabs.com
12 Retailspeak AUTU M N 2009
9. HOSPITALITY
lead story
Reaching out
As hotels search for new ways to keep their customers satisfied,
Rebecca Lambert looks at one hotel in the US that appears to have
created the ultimate guest experience
Good customer service is the the Epic offers a full complement of digital
lifeblood of any business and a top services from technology solution provider
priority for hotels looking to SuiteLinq to guests throughout the property,
safeguard their future and keep creating an in-room and on-site environment
guests coming back. And at the heart of good that is just like home – only better. Better still,
customer service is forming a personal the technology also serves as a key
relationship with each customer – a communicator between hotel and customer.
relationship that the individual customer feels In each of the 411 rooms and suites, US-
they would like to pursue and one both parties based SuiteLinq has installed customised
can benefit from. thin-client computers and flat-panel digital TVs
These days, customers can stay in a hotel running the company’s three core products:
and have very little interaction with the SuiteLinq, a customised interactive portal
establishment. You book your stay over the offering high-speed Internet access and a
Internet; when you get to the hotel you might variety of hotel services; SuiteVOD, which
talk to the front desk staff or concierge while delivers a variety of pay-per-view video-on-
you check in, but after that you are pretty demand (VOD) content delivered in standard
much in your room or going about your and high-definition formats through an
business. Hotels are finding it increasingly hard Internet protocol (IP) network; and SuiteCast,
to make the personal connection that is an which delivers free-to-guest broadcast and
essential part of earning the customer’s repeat cable TV channels.
business. And because of this, neither When selecting a technology provider to
customer nor hotel is achieving true value install its digital amenities, Epic’s management
from each stay. was looking for a personalised, scalable and
In Miami in the US, though, one new hotel completely integrated product. Kris Singleton,
has embraced technology as a means of Kimpton’s vice president technology and chief
connecting with its guests. Kimpton Hotels & information officer, says: “I knew that multi-
Restaurants’ recently opened Epic Hotel, media and especially video-on-demand was
located on the bank of the Miami river, has changing and would be totally different in the
gone to great lengths to create a superior near future. The costs of VOD top-end equip-
guest experience and as a result, has seen ment along with the distressed economy were
customer satisfaction rise to new levels. challenging several providers. We looked at
Alongside its stunning architectural design, multiple providers and selected SuiteLinq for
shimmering pools and luxury services including the Epic Hotel. We reviewed the product
an on-site spa, in-room spa treatments, and a offering with Epic ownership and opened with
variety of dining and lounging destinations, the SuiteLinq system in December 2008.”
14 Retailspeak AUTU M N 2009 AUTU M N 2009 Retailspeak 15
10. lead story
should look familiar to any guest walking into
their room. Most importantly for Epic, it
serves as a key marketing tool for the hotel.
“The SuiteLinq portal is our original product
and one that we have been working on for
some time now,” Ziegler says. “When guests
sit down at the computer and log on, they will
see images of the hotel and its logo – they’re
stepping into an environment that is very
much about the Epic, not about SuiteLinq. We
are essentially in the background; we are
white labelling our services to the hotel.”
According to Ziegler, the portal works very
much like a Web site, but takes customer
interaction to the next level. Over and above
the standard, expected services it delivers,
such as Internet access so guests can check
their e-mail, SuiteLinq delivers functionality
that helps the hotel communicate and market
directly to its customers.
“We deliver the unexpected,” says Ziegler.
“SuiteLinq provides very detailed information
about the amenities one can find at the hotel
such as the restaurant and the spa. These
“We allow hotels to get away from the days, such amenities are very important to the
WITH REGARDS TO MICROSOFT, THERE’S A GREAT
different silos of technologies that they have hotel in driving more revenue out of every
CREDIBILITY FACTOR THERE. IN OUR EARLY DAYS to deal with. They might have to deal with guest stay. So, we help promote to the guests
one vendor for VOD, another for Internet during their stay, which is obviously the best
WE WORKED HARD TO COMPETE AGAINST SOME
connectivity, another vendor for this and that; time to get their attention.
BIG NAMES IN THE HOSPITALITY SPACE AND IT’S there are just too many vendors, too many “Unlike our competitors, we don’t just
different services. It’s a real pain point for deploy technology. We approach our services
GREAT TO HAVE A PARTNER LIKE MICROSOFT
hotels,” says SuiteLinq’s president, Craig and our products as extensions of marketing
BEHIND YOUR SOLUTIONS Ziegler. “Our main differentiator is that we activities of the brand and the property. This
integrate all these platforms, all these visual gives us a real advantage. We are not
services, into one solution delivered by technologists per se, we’re really marketers
Craig Ziegler, SuiteLinq
SuiteLinq, but backed up by some real that apply technology strategically to help
heavyweight suppliers and partners like hotels achieve their goals. So, this desktop
Microsoft.” platform is really the first step in opening up a
SuiteLinq’s association with Microsoft was a dialogue with guests during their stay. It is a
big factor in Epic’s decision-making process, great means for the hotel to serve up
and having such a credible and renowned advertising and marketing promotions on a
technology provider contributing significantly very customised level to the guests when they
to SuiteLinq solutions’ back-end functionality are most inclined to be making purchasing
is something Ziegler understands is important decisions for dining, entertainment, and
for reassuring customers. related items.”
“With regards to Microsoft, there’s a great Some of the ways Epic can market directly
credibility factor there. In our early days we to its customers include using a message
worked hard to compete against some big centre in the portal, which is very much like
names in the hospitality space and it’s great an e-mail system. It allows hotel staff to send
to have a partner like Microsoft behind your messages on a one-to-one or one-to-many
solutions,” he says. “Plus, when we’re talking basis to guests. For instance, if someone has
to prospects it’s often a long complicated come to stay in the Epic Hotel and it is known
process to get a big hotel brand on board. that they are a loyal customer, the hotel
When you’re talking to CIOs and CTOs, they might want to send a special message inviting
recognise the stack of Microsoft applications them down for a dinner promotion or offering
our products are built on and that makes another nice touch that just says ‘welcome
them feel a whole lot better. They know our back, we know who you are and we thank you
solutions are reliable, but also scalable; they for returning’. The hotel also has the
know they’re not going to be obsolete in a functionality to send a message out to a
few years.” group of customers based on a code that can
SuiteLinq’s core product is a main feature in be pulled from the reservation system on site.
Epic’s technology offering. The Web-based So, if a convention is being held and guests
SuiteLinq portal is specifically designed for use staying there are spread out in different
in hotels and runs on a customised, hotel rooms all over the hotel, staff can just
branded miniature desktop computer that integrate with the system, target them with
16 Retailspeak AUTU M N 2009
11. lead story
the group code and send a personalised THE INSTALLATION HAS PROVIDED US WITH attraction listings. This boosts potential hotel and reviewing the great amenities offered.”
message telling them all the information they revenue as well as providing for customer And the future of the partnership between
EXPOSURE TO THE TECHNOLOGY OPPORTUNITIES
need, including when and where the needs. All these extra services and details the two companies looks bright. Full SuiteLinq
conference is being held. FIRST HAND WITH CUSTOMER FEEDBACK create a ‘wow’ factor, which is proven to drive services are planned to be implemented at a
“As you can see, we offer very customised guest loyalty and return visits. new Kimpton hotel in Philadelphia in the US,
REGARDING THE USE OF THE DESKTOPS IN THE
messaging features, but we also offer some Ziegler believes offering such digital which is due to open in October this year, and
broader advertising features that are ROOMS. WE ALSO RECOGNISED SAVINGS IN amenities is a compelling competitive another new hotel in the US in Baltimore, due
supported in the SuiteLinq portal,” Ziegler advantage in today’s challenging environment. to be opened this summer, will feature
PRINTED HOTEL MATERIALS MEETING OUR GREEN
says. “All this helps the hotel recognise its “When guests use our digital platforms and SuiteVOD services. “SuiteLinq has been
customers, make their experience better and INITIATIVES services, they know that this hotel is going important in helping us market our hotel
market to them smarter. And that’s just the above and beyond for them,” he says. “That amenities, services, and Kimpton brand
desktop application.” translates into increased loyalty and revenue philosophies and core pillars,” concludes
Kris Singleton, Kimpton Hotels & Restaurants
Provided alongside SuiteLinq is SuiteCast for the property.” Singleton. “With several new Kimpton hotel
and SuiteVOD. With primary functions as a “The installation has provided us with builds in the pipeline as well as legacy
premium free television channel service and a exposure to the technology opportunities first property revamps, we look forward to
video-on-demand service respectively on the hand with customer feedback regarding the continue working with SuiteLinq and installing
large screen television in each hotel room, use of the desktops in the rooms,” says its products that have already made such a
they are also very interactive, branded to the Singleton, commenting on the benefits strong and positive impression on the guest.
property and increasingly can support a variety Suitelinq has provided. “We also recognised “At all our hotels there is a complete focus
of marketing activities with the SuiteLinq savings in printed hotel materials meeting our on creating a memorable guest stay.
desktop application. As well as its easy-to-use green initiatives. By providing easy access to SuiteLinq’s services are the perfect
electronic programme guide and multiple information about Kimpton Hotels & complement to the environment we strive to
language support, SuiteVOD features local Restaurants online, it offers convenience to create. Its innovative solution makes sense for
services such as room service and local the guest for searching our other properties our guests and ultimately for our bottom line.”
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12. MULTI-CHANNEL
feature
The constant
retailer
Retailers know that in order to reach a broader
customer base, they need to embrace multiple
sales channels. Lindsay James looks at the issues
facing retailers in defining and executing a multi-
channel strategy that will carry them into the future
In today’s retail environment, self service systems that
purchasing at the sales counter is just not only resonate with the
one of many ways of doing business. tech savvy but also spread
With the arrival of the Internet, the retailers’ reach to the
customers can not only purchase online in the less mobile, aging population.
comfort of their own home, but also on-the-go Retailers are able to reach each generation
via their mobile device. The in-store with a range of complimentary online services,
purchasing experience has also evolved, with goods and products.”
an ever-growing number of self-service The Internet has clearly had a huge impact
checkouts and kiosks making an appearance in on the current retail landscape, and the
supermarkets and speciality retail outlets alike, emergence of Web 2.0 and social networking
teamed with interactive POS, digital LCD is changing the industry further. “The retail
screens and even innovative touch experience as a whole has changed,” says
technologies such as Surface. Dominic Citino, Microsoft’s industry market
“This diverse selling environment is a world development manager for the retail industry.
apart from the offerings of retailers twenty “The Internet has become a huge part of
years ago, when a multi-channel business consumers’ daily lives, and is having a very
meant two or three channels – the physical visible effect on the way people shop, and the
store, a catalogue and maybe a call centre,” way retailers do their business.”
says Russell Dorset of Maginus. “Now With the power of the Internet, consumers
traditional retailers need to compete online in can carry out research about a product online
order to survive, and to do that they need to before they buy, gaining insight from forums,
work in a completely different way from what review sites and social networking portals
they’ve been used to.” which will influence their purchasing decisions.
“With the arrival of the Internet and the They can then choose to buy online or in-
Internet generation, retailers have had to store, depending on where they can get the
develop new channels for customers,” says best deals. “Many customers are using
Mark Ryan, EMEA retail sales leader at multiple sales channels for a single
Honeywell Scanning and Mobility. “The transaction,” says Citino. “They will use the
younger generation are natural Internet users Internet to get all the information they need,
and retailers have an opportunity to build and then quite often for bigger items such as
deep relationships with these customers by an LCD TV they will go into the store to see
using a variety of technologies to provide the the product in the flesh and to buy. This
most convenient shopping environment. In an means that customers expect the same offers
effort to target new and different audiences, and the same experience, whichever channel
retailers are turning to the Internet, kiosks and they choose.”
20 Retailspeak AUTU M N 2009 AUTU M N 2009 Retailspeak 21
13. feature
CUSTOMER
SOLUTION “Today’s customers have higher damage years of hard work in-store. A refusal
expectations than ever before,” says Columbus by poorly engaged store staff to deal with
CMR Institute, US IT’s Morten Sælemyr. “They want the same problems caused online can mean customers
CMR Institute is a business designed offers and the same product ranges whatever go elsewhere.
around the delivery of educational channel they choose, and they want “Worryingly up to 30 per cent of retailers in
content via books and CDs. The company consistency in the service they receive.” some sectors have still to offer an online
realised that it had to bring its business “Customers have come to expect a very shopping alternative to their customers. Many
online to meet customer demand, deliver flexible buying experience, and the ability to so-called ‘multi-channel’ retailers actually offer
new offerings faster, and reduce costs. chop and change from channel to channel to a multiple channel experience. Joined-up
With assistance from Ironworks, CMR suit their own needs,” says Ryan. “For example, multi-channel retailers are still the exception
Institute implemented a new e-learning if an item is out of stock, a customer can check rather than the norm. For those brick and
solution based on Microsoft software. the kiosk in-store and order it to be delivered so mortar retailers who have embraced the
The company’s move online enables he or she doesn’t need to return when an item online alternatives the challenge is to leverage
customers to easily interact with learning is in. Conversely, often an incorrect or their high street presence with joined up
materials, request new courses, track unwanted item can be exchanged in a store experience for the customer that begins to
progress, and more. For CMR Institute, instead of having to post it back to the retailer.” recognise the lifetime value of each customer
the move to an online solution is These high customer expectations, teamed and the complexity of their shopping
enhancing the company’s bottom line by with the ever-expanding universe of channels, engagements.”
enabling it to offer more courses, deliver are posing challenges for retailers both “Today’s retailers face many challenges in
new content faster, and reduce costs—all strategically and technologically. Many determining and executing a multi channel
through a solution that is reliable and retailers lack agility because they are held back strategy,” says Citino. “All of these challenges
easy to manage. by many different legacy systems that don’t are caused by spaghetti infrastructures that lack
connect with each other. integration and scalability. A lack of integration
www.cmrinstitute.org “Perhaps the single biggest challenge for a and overall misalignment across channels can
www.ironworks.com brick and mortar retailer moving into a multi- cause negative customer experiences that are
channel is the potential to disappoint extremely difficult to recover from.”
customers by delivering an inconsistent In order to succeed in today’s retail
shopping experience across different environment, and keep up with the pace of
channels,” says K3’s Nigel Stephenson. “Real change, retailers need to look at their
and lasting damage to a retailer’s brand can technology systems as a whole, bringing
be caused when retailers take a piecemeal together every aspect of the retail operation
approach to implementing the multi-channel to get a single view of the customer and to
strategy. A poor experience online can deliver consistency.
22 Retailspeak AUTU M N 2009
