Playbook for the New Normal
It takes a while to adjust the lens to a new world. For the greater part of 2020, all of us in the industry including business professionals, thought leaders, the media and others have continued to talk about the “New Normal” as some distant phenomenon, way in the future.
Well, that “New Normal” is here.
While there has been a lot of focus on the post-COVID-19 business strategy, right from how should the supply chain be redesigned to what does your brick-and-click strategy need to be, it is important to first define:
What are the business metrics that will be important in the new normal for the Retail industry?
Our View of the Retail Value The 5 pillars of data-driven retail organizations Supply Chain Analytics Suppliers Manufacturing Warehouse / Distributor Technology Foundation Big Data Analytics | Corporate Insights Marketing Merchandising Analytics
Value Chain organizations eCommerce Analytics Store Operations Analytics .com Insights | Applied AI | Business accelerators Consumer Marketing & Merchandising Analytics
Course5 Recommends Shopper Insights need to be recalibrated to include the growing impact of D2C channels Dial up Social & Digital Insights to absorb increased engagement on multiple social platforms to form a true 360-degree Customer view Pillar 1: Corporate Insights Powers Business Strategy
Metrics That Will Matter Digital influence on Path-to-Purchase Digital channel e cacy Category-wise purchases & audience omnichannel engagement level Segment-wise purchases & audience omnichannel engagement level Digital brand health index Social responsibility perception index Digital customer experience index Micro-segment wise engagement levels
For Data-driven Marketing Pillar 2:
need to optimize to changing customer preferences, changing preferences in brands and products, and optimal utilization of retail space online and o ine
initiatives need to deliver consumer engagements that deliver assurance and empathy towards health and safety, and build consumer confidence while delivering a positive customer experience
Course5 Recommends Planograms
Personalization
Merchandising
and
Metrics That Will Matter Planogram compliance & e cacy Product stale rate, Product return rate Channel-wise optimal spend and spend e ectiveness Promotion e cacy Return on ad spend by segment Clicks and conversions Customer brand confidence index Content engagement rate and Marketing Analytics
Course5 Recommends Consumer preference based personalization powered by customer analytics is going to be critical on website and on apps Driving Customer-centricity Promotion e ectiveness & deeper content engagement on eCommerce site to get maximum return on spend coupled with omnichannel consumer engagement A sharp focus on mitigating risks to product supply, product availability and on-time delivery will be critical in rebuilding customer confidence in brands Supplier sustenance analyses and systemic issues at supplier leading to repetitive product cuts need to be proactively addressed Pillar 3: eCommerce Analytics
Metrics That Will Matter Customer retention percentage Customer repeat rate Customer experience index Page depth Cart abandonment rate Product recommendations e cacy Out-of-Stock rate On-Time-in-Full delivery (OTIF) Fill rate and service level Analytics Supplier availability risk Revenue loss to competition due to product non-availability
Course5 Recommends Dedicated focus on Demand Forecasting & Supply Planning for eCommerce and store along with improving forecast accuracy by SKU and supplier Supply chain visibility initiatives delivered to store managers and department managers at the moment of truth, with the ability to look ahead instead of looking behind, will drive unparalleled e ciencies Strengthening the core Pillar 4: Supply Chain Analytics
Metrics That Will Matter SKU-level demand shock variability forecasting Service level and fill rate deviation Supply availability index Supply quality Inventory holding costs EOQ Order lead time On-Time-in-Full delivery (OTIF) Picking and packing accuracy Out-of-Stock rate Analytics
Course5 Recommends SKU-wise shopping cart analytics to understand changing trends in products purchased and a stronger focus on loyalty program sign-ups with incentives Deeper catchment analyses by store to define assortments with a focus on healthier substitutes and strategic promotion through e ectiveness measurement can drive higher value Driving Customer-centricity Pillar 5: Store Operations Analytics
Metrics That Will Matter Loyalty program sign-up rate Basket size increase/reduction Returns quantity, quality, reasons Product assortment e cacy Promotion e ectiveness by store, by SKUs, by region Analytics
Sunder Balakrishnan AVP,
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