Monthly Archive for January, 2010

Online Retailing, Data Mining and Technology takes center stage at NRF’s BIG SHOW in 2010

Published on January 29, 2010 in Al Beery. 0 Comments Tags: , , , , , .

Alan Beery, Pitney Bowes Business Insight

The National Retail Federation BIG SHOW was held this year in New York City in mid-January. This is a premier event showcasing the emerging trends in retailing internationally. I had the opportunity to be among the more than 17,000 attendees from at least 50 countries who were represented at this years show. The conference highlighted how the best retailers are utilizing data and technology to effectively reach their customers. The explosion of increased customer transaction and purchase data was a theme heard repeatedly in educational sessions and conference presentations.

Of particular interest was the advanced use of research and technology to identify and attract potential customers. One such example is Wet Seal which is aggressively incorporating social media and online shopping access to successfully promote sales. Additionally, a number of retailers highlighted the intensive use of CRM technology and data mining to uncover their best prospects. This was evident in strategies such as Market Basket Analyses where the most frequent or profitable purchase combinations were identified. The most innovative retailers were also successfully quantifying how and where customers are making purchases across key channels (internet, catalog, brick and mortar, and telephone) and leveraging these channels to increase overall sales potential. As an example of emerging technology, a session focused on video analytics at Cabela’s documented customer and salesperson interactions and provided actionable strategies to improve customer service.

The NRF BIG SHOW provides great insight into the analytics, IT, and customer trends affecting the retailing industry.

12 ways location data yields better decisions – Part II

Published on January 22, 2010 in Deb Purcell. 0 Comments Tags: , , , , , , .

Nearly 70 percent of all business data contains a geographical component, so it’s not surprising that more businesses and government agencies are using location intelligence to reach, serve and grow customer relationships. Last week we looked at the latest trends related to customer-facing initiatives Today we’ll examine the ways geo-spatial data is being used in operations and the public sector.

 

Crime fighting. While governments have long used geo- technology to support public works decisions, such as highway and sewer planning, a number of specialized applications now incorporate location intelligence in the area of crime mapping. In many municipalities, citizens now have a centralized portal where criminal intelligence and information is shared by law enforcement at the local, state and federal levels—giving law enforcement agencies the insight needed to solve and prevent crimes.

E-Government: In the public sector, location intelligence is used to plan for growth, improve public services and share information with citizens. New government legislation, such as INSPIRE in Europe, is changing the way public organizations manage and share their GIS data. Many agencies have found ways to keep costs down, serve citizens and comply with new government mandates.

 

Tax management. State and local tax jurisdictions involve complex rules and boundaries that have no relationship to postal codes—and the failure to collect or pay appropriate taxes can result in significant penalties. This need is especially prevalent in certain industries, such as telecommunications, where miles of fiber optic cable may cut across hundreds of distinct tax jurisdictions—each with unique rules and tax rates.

Risk identification. In financial services, predictive analytics based on geo-demographics now provide an early-warning mechanism to detect borrowers who may be at risk of bankruptcy and default. In the insurance industry, companies have integrated spatial analysis into underwriting and claims management systems—instantly calculating the distance between a home and the nearest fire hydrant, flood plain or fault line.

Fraud detection. Due in part to the recent recession, fraud attempts are on the rise and more organizations are integrating customer data quality and location intelligence into their fraud management systems. In the credit card industry, geo-based analytics can instantly assess whether two credit card purchases could have been made by the same person using the same card based on time and distance.

Routing and fleet management. As consumers shift to online shopping, location intelligence is increasing part of the delivery system, as retailers and shippers calculate optimum drive routes and determine where to locate distribution centers—decisions that provide for faster deliveries and lower costs.

 

Experts predict that the market for business geographics and location intelligence will grow 50% over the next five years. Clearly, new solutions such as those offered by Pitney Bowes Business Insight are making an impact.

Have you started looking at any of these areas this year?  Feel free to share any questions or insights here.

12 ways location data yields better decisions – Part I

Published on January 14, 2010 in Deb Purcell. 0 Comments Tags: , , .

Location intelligence has clearly become a mainstream business practice—driving decisions across most every department. As we begin 2010, we wanted to provide you some insights into twelve of the latest trends and applications. Today we’ll look at how geo-spatial information supports customer-facing initiatives.  Next week, we’ll examine the same trends in operations and the public sector.

Site Selection. Opening a new store or branch location can cost millions of dollars, with payback often calculated in years. Companies can now analyze market demographics, competition and consumer buying habits across alternative geographies in order to predict events well into the future. This is especially important in times of economic uncertainty, when many firms are deciding whether or not to close or relocate stores and branch locations.

Customer Segmentation. Marketers can go beyond simple postal codes to identify households at the neighborhood and street level who are most likely to become new customers or to purchase additional products and services. Color-coded maps overlay multiple levels of data, including revenue, Census information, proximity and customer penetration—making it easy to visualize how market demographics correspond to sales potential.

e-Tailing. The exponential growth of online shopping adds another dimension to marketing decisions. While consumers may transact in a “virtual world” they still access the Web from specific locations. Understanding the relationship between where online customers live and work vis-à-vis the location of retail locations and competitive outlets makes it easier to develop strategies that best leverage both on- and off-line efforts.

Customer onboarding. The opening of a new account can be one of the most critical times in the relationship between a customer and a company. Geocoding applications help validate the exact location of new accounts so correspondence and shipments reach customers in a timely fashion. Increasingly, organizations are also using location-based information to make real-time decisions on which products or services to cross-sell in the first 90 days, when customers are most open to expanding their relationship.

Customer self-service. With an ability to integrate vast amounts of data, analytics and customer-friendly mapping applications, customers can now view the same information used by back-office personnel. In one instance, an insurance company shared details on a hurricane’s path online, discouraging individuals from submitting false claims.

Customer care. In many companies, telephone reps now navigate intuitive, user-friendly mapping applications to make on-the-spot decisions based on location. In most cases, these technologies are employed to identify cross-sell opportunities and provide accurate information to customers regarding network access.

While spatial analysis is just now hitting its stride in terms of business applications, it is likely that major breakthroughs are yet to come.  New tools and solutions are making it even easier to locate new opportunities, connect with customers and communicate more efficiently.  So tell us… what other ways are you tapping the “power of where” in your business?

Retailers Embrace Cyber Shopping

Published on January 7, 2010 in Elizabeth Zachry. 0 Comments Tags: , , .

Elizabeth Zachry, Pitney Bowes Business Insight

Shopping malls have been around for hundreds of years and, thus far, have been able to respond to the ever-changing demands of the consumer. What started as simple structures in downtown areas of cities have morphed into grandiose buildings in suburban settings. However, with an increasing number of consumers turning to the internet for bargains, retailers are trying to find new ways to bring shoppers into their stores. According to the U.S. Census Bureau, e-commerce sales have steadily increased over the past decade, from less than 1% of the total quarterly retail sales to more than 3%, with current trends indicating that online shopping will only increase.

Instead of fighting this trend, retailers are embracing the internet and finding new ways to integrate the online shopping experience with the traditional storefront. Some retailers, such as Gap Inc., offer the opportunity to order products online from within the store, making shopping easier for consumers when the desired product is out of stock. In addition, several retailers, such as REI, Sears, and Nordstrom, offer online consumers the option of picking up their items at a retail location, eliminating shipping costs and shortening wait times for packages. Many retailers and shopping centers even have their own Facebook pages and Twitter accounts, where people can become fans and followers and can get regularly updated information on sales and store promotions.

Increasing use of mobile technology has also led to new applications designed to improve the in-store shopping experience. One such application, by NearbyNow – a company in Mountain View, California, allows users to find and hold products in the stores nearby. If, for example, you are looking for a black shirt, the application lists all the stores in your area that sells black shirts, gives you the option to put a shirt on hold – even lets you email pictures of the various shirts to your friends to judge.

Certain aspects of internet shopping will be impossible for shopping malls to replicate, but it seems as though the future of retail encompasses both the storefront and the internet.