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Solutions for retail




     IBM, Motorola and Modiv Media
     Personal Shopping Support: Putting the
     point of sale in your customers’ hands

                                                                                       Making your best customers better
                                                                                       Today’s technology-savvy consum-
                                                                                       ers understand the role mobility and
                                                                                       wireless applications play in their
                                                                                       lives. From the pay-at-the-pump
                                                                                       gasoline stations to ATMs, to cell
                                                                                       phones and PDAs, mobile and wire-
                                                                                       less are accepted, pervasive and
                                                                                       have almost become universally
                                                                                       expected. As witnessed by the ever-
                                                                                       increasing volume of e-commerce,
                                                                                       consumers have proven that they
                                                                                       enjoy the convenience of self-directed
                                                                                       shopping, without the inconvenience
                                                                                       of queuing at the cash register.
                                          Highlights                                   However, for grocery chains, home
                                                                                       improvement and big box retailers,
     ■ Drives higher sales and loyalty           ■ Adds efficiencies to marketing      or any other retailer whose clientele
        through adoption of mobile,                    processes by communicating      would prefer to personally inspect the
        customer-facing technology                     directly to customers on        product, mobile and wireless solu-
                                                       the sales floor with targeted   tions have not been exploited to their
     ■ Improves shopping experience                    messages and promotions         fullest potential.
        by tailoring offers to individ-
        ual customers                            ■ Guides customers and                Most of those same retailers con-
                                                       creates upsell and cross-       tinue to seek competitive advantage
     ■ Increases revenue by seven                      sell opportunities              through personal connections
        to 14 percent                                                                  with the consumer. Loyalty cards
                                                                                       and similar customer-facing pro-
     ■ Reduces checkout time                                                           grams have helped retailers identify
        while increasing throughput                                                    their best consumers and catalogue
                                                                                       their tendencies and preferences.
Many chains can now analyze               As the shopper progresses through           By pushing information about man-
customer behavior and push targeted       the store, scanning and bagging             ufacturer promotions directly to the
coupons and promotions to shop-           each item for purchase, the solution        shopper, retailers can potentially
pers at checkout – all in an effort to    pushes special offers, suggestions          increase their share of manufacturers’
drive greater customer loyalty through    and promotions to the handheld              incentives. Or, if desired, the scanner
ongoing interaction and transactions.     self-scanner. Accurate running totals       can send prompts regarding com-
Retailers reward their frequent shop-     are available during the shopping           peting products that the consumer
pers through incentive programs,          experience. At the end of the shop-         might be interested in – such as one
such as offering specific items for       ping trip, the self-scanner is cradled,     brand of ice cream versus another –
free after attaining a certain level of   and the shopper pays and exits.             so that the shopper can take advan-
purchases within a given time period.     No long queue at checkout, no wait          tage of a sale-priced item. Also, if a
                                          for information, and customers have         customer scans an item that needs
In our ever-evolving mobile and wire-     been presented with the best deals          batteries the scanner can suggest
less world, a realistic next step would   applicable to them as individuals.          the best deal on batteries in the store.
be to leverage those technologies,        In a world where the term “win-win”         This drives significant potential for
as well as the customer information       is applied all too frequently, this solu-   upselling and cross-selling.
retailers have already gathered, to       tion truly offers benefits to both the
more closely connect with the most        shopper and the retailer.                   Through the use of this solution,
desirable consumers. That next step                                                   retailers can directly impact cus-
is here today – with the IBM, Motorola    Personal Shopping Support – empowering      tomers’ purchases at the point of
and Modiv Media Personal Shopping         consumers while reducing costs              the buying decision. Retailers can
Support (PSS) solution. This solution     In the eyes of the customer, this PSS       drive specific, relevant and timely
helps you maintain a constant, per-       solution is a quantum leap forward          offers to customers while the custom-
sonalized dialogue with consumers         in terms of convenience. When the           ers are moving through the aisles.
in your store, and do so in a manner      customer is in a particular aisle and
perceived as unobtrusive, helpful         scanning a product, the solution can        Another benefit for retailers is to keep
and empowering.                           send prompts to the self-scanner            track of how your customers are
                                          to suggest complementary items in           navigating your store, tracking your
The concept is simple and compel-         close proximity. Additionally, the PSS      carts as they move throughout the
ling. A shopper enters your store,        solution can suggest items, based           store. This feature can be an invalu-
swipes his or her loyalty card and        on the customer’s history, which are        able source of data for future store
checks out a wireless mobile com-         currently offered at reduced prices.        planning, as it will enable a view of
puter designed for consumer self-                                                     how your store is working as a whole,
scanning. The solution immediately                                                    providing quantifiable insight into
identifies the shopper and his or                                                     the way consumers actually move
her preferences.                                                                      through the store.
Personal Shopping Support solution: The path to ROI



                                                      Primary value driver                 Operational value drivers
                                                      Primary value driver                  Operational value drivers


                                                                                            Increased basket size

                                                      Increased revenues                    Increased frequency

                                                                                            New revenue source

         Hard benefits
                                                                                            Reduced labor cost


                                                                                            Reduced front-end cost
                                                      Improved margin
                                                                                            Reduced obsolescence


                                                                                            Increased throughput


                                                                                            Low stock visibility


                                                                                            Promotion execution/plan
         Soft benefits                                Improved efficiency
                                                                                            Leverage existing technology


                                                                                            Data analysis/insights




Completing the sale painlessly               In addition to saving space, retailers    best-of-breed solution from leading
By scanning in the aisles, shoppers          can reduce labor costs by sharply         industry suppliers. Motorola, a
bag the purchases as they place              reducing the number of cashiers           global IBM alliance partner, is the
them in the cart, rather than bagging        necessary at checkout.                    world leader in retail scanning
at checkout. This offers your custom-                                                  devices, mobile computing and
ers a significant time savings.              The IBM, Motorola and Modiv Media         wireless infrastructure, and provides
                                             Personal Shopping Support solution        the Motorola MC17 retail mobile
When they have finished shopping,            All of these benefits are delivered       computer as the self-scanner. This
the customer scans an end-of-order           via this highly flexible, collaborative   self-scanner is easily programmable
barcode and then proceeds to check-          solution from enterprise mobility         and simple-to-use, with a durable
out for payment. Since bagging has           solutions provider Motorola, retail       scanning trigger, built-in audio
already taken place, retailers can use       solutions provider Modiv Media and        speaker and a 2.8-inch graphic color
small kiosks as pay stations, instead        IBM as systems integrator. This three-    display screen. Motorola also pro-
of a larger self-checkout footprint.         way collaboration enables retail-         vides the device management toolset.
                                             ers to implement a fully integrated,
Modiv Media contributes a mobile           store implementation. These services
application software platform that is      can range from ROI assessment
flexible and specifically tailored to      and business process consulting
each retailer’s needs and existing         to store design, solution integration
POS implementation. The company            and implementation. Implementation
                                                                                   © Copyright IBM Corporation 2008
has more than a decade of vast retail      services may include training, long-
                                                                                    IBM Corporation
experience developing interactive,         term maintenance, user support and
                                                                                    1 New Orchard Road
self-service grocery solutions along       even flexible financing options.         Armonk, NY 10504
                                                                                    U.S.A.
with rich promotions platforms.
                                                                                    Produced in the United States of America
                                           The contributions from each partner
                                                                                    11-08
Modiv Media is teaming with IBM,           to the total PSS solution showcase       All Rights Reserved

combining the Modiv Media Shopper          each company’s particular strengths,     IBM, the IBM logo, ibm.com, DB2 and WebSphere
                                                                                    are trademarks or registered trademarks of
solution – a self-service scan-and-bag     creating an opportunity for retailers
                                                                                    International Business Machines Corporation in
solution featuring targeted media –        worldwide to drive increased basket      the United States, other countries, or both. These
                                                                                    and other IBM trademarked terms are marked
with the IBM WebSphere Remote
                          ®
                                           size, improve the customer experi-
                                                                                    on their first occurrence in this information with
Server using WAS and IBM DB2 ®– to         ence and build loyalty. The combined     the appropriate symbol (® or TM), indicating U.S.
                                                                                    registered or common law trademarks owned by
deliver sales lift, customer loyalty and   solution helps to reduce labor costs,
                                                                                    IBM at the time this information was published.
operational efficiencies. The combi-       gain a better understanding of cus-      Such trademarks may also be registered or com-
                                                                                    mon law trademarks in other countries. A current
nation of Modiv Media applications         tomer behavior and optimize valuable
                                                                                    list of IBM trademarks is available on the Web at
and IBM middleware provides the            floor space.                             ibm.com/legal/copytrade.shtml

interface between the mobile technol-                                               Other company, product and service names
                                                                                    may be trademarks or service marks of others.
ogy offered by the PSS solution and        For more information
                                                                                    References in this publication to IBM products
a retailer’s existing IT systems.          To find out how your company
                                                                                    or services do not imply that IBM intends to
                                           can leverage this best-in-class,         make them available in all countries in which
                                                                                    IBM operates.
Comprehensive services scaled to your      end-to-end mobile PSS solution from
specific needs                             IBM, Motorola and Modiv Media,
In addition to world-class middleware,     and how to make it all possible
POS and server products, IBM deliv-        through IBM Global Financing,
ers the integrated solution through        contact your IBM representative, or
a broad portfolio of business and          visit us on the Web at:
technology services specific to each
                                           ibm.com/retail




                                                                                    RES03015-USEN-00

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Ibm, Motorola And Modiv Media; Solutions For Retail

  • 1. Solutions for retail IBM, Motorola and Modiv Media Personal Shopping Support: Putting the point of sale in your customers’ hands Making your best customers better Today’s technology-savvy consum- ers understand the role mobility and wireless applications play in their lives. From the pay-at-the-pump gasoline stations to ATMs, to cell phones and PDAs, mobile and wire- less are accepted, pervasive and have almost become universally expected. As witnessed by the ever- increasing volume of e-commerce, consumers have proven that they enjoy the convenience of self-directed shopping, without the inconvenience of queuing at the cash register. Highlights However, for grocery chains, home improvement and big box retailers, ■ Drives higher sales and loyalty ■ Adds efficiencies to marketing or any other retailer whose clientele through adoption of mobile, processes by communicating would prefer to personally inspect the customer-facing technology directly to customers on product, mobile and wireless solu- the sales floor with targeted tions have not been exploited to their ■ Improves shopping experience messages and promotions fullest potential. by tailoring offers to individ- ual customers ■ Guides customers and Most of those same retailers con- creates upsell and cross- tinue to seek competitive advantage ■ Increases revenue by seven sell opportunities through personal connections to 14 percent with the consumer. Loyalty cards and similar customer-facing pro- ■ Reduces checkout time grams have helped retailers identify while increasing throughput their best consumers and catalogue their tendencies and preferences.
  • 2. Many chains can now analyze As the shopper progresses through By pushing information about man- customer behavior and push targeted the store, scanning and bagging ufacturer promotions directly to the coupons and promotions to shop- each item for purchase, the solution shopper, retailers can potentially pers at checkout – all in an effort to pushes special offers, suggestions increase their share of manufacturers’ drive greater customer loyalty through and promotions to the handheld incentives. Or, if desired, the scanner ongoing interaction and transactions. self-scanner. Accurate running totals can send prompts regarding com- Retailers reward their frequent shop- are available during the shopping peting products that the consumer pers through incentive programs, experience. At the end of the shop- might be interested in – such as one such as offering specific items for ping trip, the self-scanner is cradled, brand of ice cream versus another – free after attaining a certain level of and the shopper pays and exits. so that the shopper can take advan- purchases within a given time period. No long queue at checkout, no wait tage of a sale-priced item. Also, if a for information, and customers have customer scans an item that needs In our ever-evolving mobile and wire- been presented with the best deals batteries the scanner can suggest less world, a realistic next step would applicable to them as individuals. the best deal on batteries in the store. be to leverage those technologies, In a world where the term “win-win” This drives significant potential for as well as the customer information is applied all too frequently, this solu- upselling and cross-selling. retailers have already gathered, to tion truly offers benefits to both the more closely connect with the most shopper and the retailer. Through the use of this solution, desirable consumers. That next step retailers can directly impact cus- is here today – with the IBM, Motorola Personal Shopping Support – empowering tomers’ purchases at the point of and Modiv Media Personal Shopping consumers while reducing costs the buying decision. Retailers can Support (PSS) solution. This solution In the eyes of the customer, this PSS drive specific, relevant and timely helps you maintain a constant, per- solution is a quantum leap forward offers to customers while the custom- sonalized dialogue with consumers in terms of convenience. When the ers are moving through the aisles. in your store, and do so in a manner customer is in a particular aisle and perceived as unobtrusive, helpful scanning a product, the solution can Another benefit for retailers is to keep and empowering. send prompts to the self-scanner track of how your customers are to suggest complementary items in navigating your store, tracking your The concept is simple and compel- close proximity. Additionally, the PSS carts as they move throughout the ling. A shopper enters your store, solution can suggest items, based store. This feature can be an invalu- swipes his or her loyalty card and on the customer’s history, which are able source of data for future store checks out a wireless mobile com- currently offered at reduced prices. planning, as it will enable a view of puter designed for consumer self- how your store is working as a whole, scanning. The solution immediately providing quantifiable insight into identifies the shopper and his or the way consumers actually move her preferences. through the store.
  • 3. Personal Shopping Support solution: The path to ROI Primary value driver Operational value drivers Primary value driver Operational value drivers Increased basket size Increased revenues Increased frequency New revenue source Hard benefits Reduced labor cost Reduced front-end cost Improved margin Reduced obsolescence Increased throughput Low stock visibility Promotion execution/plan Soft benefits Improved efficiency Leverage existing technology Data analysis/insights Completing the sale painlessly In addition to saving space, retailers best-of-breed solution from leading By scanning in the aisles, shoppers can reduce labor costs by sharply industry suppliers. Motorola, a bag the purchases as they place reducing the number of cashiers global IBM alliance partner, is the them in the cart, rather than bagging necessary at checkout. world leader in retail scanning at checkout. This offers your custom- devices, mobile computing and ers a significant time savings. The IBM, Motorola and Modiv Media wireless infrastructure, and provides Personal Shopping Support solution the Motorola MC17 retail mobile When they have finished shopping, All of these benefits are delivered computer as the self-scanner. This the customer scans an end-of-order via this highly flexible, collaborative self-scanner is easily programmable barcode and then proceeds to check- solution from enterprise mobility and simple-to-use, with a durable out for payment. Since bagging has solutions provider Motorola, retail scanning trigger, built-in audio already taken place, retailers can use solutions provider Modiv Media and speaker and a 2.8-inch graphic color small kiosks as pay stations, instead IBM as systems integrator. This three- display screen. Motorola also pro- of a larger self-checkout footprint. way collaboration enables retail- vides the device management toolset. ers to implement a fully integrated,
  • 4. Modiv Media contributes a mobile store implementation. These services application software platform that is can range from ROI assessment flexible and specifically tailored to and business process consulting each retailer’s needs and existing to store design, solution integration POS implementation. The company and implementation. Implementation © Copyright IBM Corporation 2008 has more than a decade of vast retail services may include training, long- IBM Corporation experience developing interactive, term maintenance, user support and 1 New Orchard Road self-service grocery solutions along even flexible financing options. Armonk, NY 10504 U.S.A. with rich promotions platforms. Produced in the United States of America The contributions from each partner 11-08 Modiv Media is teaming with IBM, to the total PSS solution showcase All Rights Reserved combining the Modiv Media Shopper each company’s particular strengths, IBM, the IBM logo, ibm.com, DB2 and WebSphere are trademarks or registered trademarks of solution – a self-service scan-and-bag creating an opportunity for retailers International Business Machines Corporation in solution featuring targeted media – worldwide to drive increased basket the United States, other countries, or both. These and other IBM trademarked terms are marked with the IBM WebSphere Remote ® size, improve the customer experi- on their first occurrence in this information with Server using WAS and IBM DB2 ®– to ence and build loyalty. The combined the appropriate symbol (® or TM), indicating U.S. registered or common law trademarks owned by deliver sales lift, customer loyalty and solution helps to reduce labor costs, IBM at the time this information was published. operational efficiencies. The combi- gain a better understanding of cus- Such trademarks may also be registered or com- mon law trademarks in other countries. A current nation of Modiv Media applications tomer behavior and optimize valuable list of IBM trademarks is available on the Web at and IBM middleware provides the floor space. ibm.com/legal/copytrade.shtml interface between the mobile technol- Other company, product and service names may be trademarks or service marks of others. ogy offered by the PSS solution and For more information References in this publication to IBM products a retailer’s existing IT systems. To find out how your company or services do not imply that IBM intends to can leverage this best-in-class, make them available in all countries in which IBM operates. Comprehensive services scaled to your end-to-end mobile PSS solution from specific needs IBM, Motorola and Modiv Media, In addition to world-class middleware, and how to make it all possible POS and server products, IBM deliv- through IBM Global Financing, ers the integrated solution through contact your IBM representative, or a broad portfolio of business and visit us on the Web at: technology services specific to each ibm.com/retail RES03015-USEN-00