Retail Insider the magazine, Volume two Issue three

VOLUME TWO

ISSUE THREE

The Ballroom Bowl: where the good times roll

Creativity, innovation, intuition and technology leading to retail industry enhancements >>> Pg. 14

Start With Customer Loyalty

The Digital Customer Journey

Protecting and Enhancing Retail

Why your start-up needs repeat customers right away to ensure success pg. 20

Diving into the retail experience and impacts of digital technology pg. 24

GardaWorld helping to ensure a safe and secure retail environment pg. 30

✅ Develop talent ✅ Scale efficiently ✅ Streamline store operations

“There is a clear correlation between Progress Retail and the positive impact on our store sales and operational metrics.”

Justin Asgarpour Chief Vision Officer

UPFRONT // PUBLISHER’S DESK

Focusing on, and enhancing, the retail consumer experience The retail industry is undoubtedly fascinating, moving at breakneck speeds while constantly shifting and transforming in order to meet evolving consumer needs and satisfy their ever-increasing desires. In fact, it’s the dance between retailer and consumer, and the nuances of their engagement, that makes it such an interesting industry to follow and report on. And, it’s with the consumer in mind, combined with the ways in which brands look to attract their attention, that has driven the content within the Fall issue of Retail Insider the magazine.

The Canadian Federation of Independent Business’ Ryan Mallough contributes a column that highlights the value that small businesses offer their consumers, while emphasizing the significant part they play in ensuring health, strong economies, both locally and nationally. George Minakakis takes a look at the journey for most consumers today and the ways in which brands can leverage strategic technologies, and combine them with the clever use of data, to better understand their needs.

We feature the launch of The Ballroom at Yonge and Dundas Square in Toronto where the venue promises to deliver a bowling and entertainment experience that the industry has never seen before, setting a new standard for everyone to follow going forward.

Lia Grimberg contributes her thoughts on the Canadian start-up retail business, the reasons it’s so critical to gain the loyalty of customers, and

the value in employing a data-driven marketing approach from the outset in order to do so.

We also sit down with JLL’s Lee Jackson to explore the impacts of digital technology on the retail customer journey, the ways the Canadian shopping experience is currently being influenced, and how it’s helping to shape future experiences.

And, we highlight the many ways that GardaWorld works to keep the retail environment safe and secure, protecting the assets, staff and customers of brands across the country every day. From physical security and alarm systems to monitoring and surveillance, the suite of services offered by the company provides retailers of all sizes with just about everything they need to meet their loss prevention needs.

We hope that you and your teams enjoy the content within this issue of Retail Insider the magazine and that it inspires you to explore the experience your brand offers consumers and to make enhancements where necessary as we approach the busy holiday shopping season.

Sincerely,

Craig Patterson Publisher craig@retail-insider.com

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IN THIS ISSUE //

Volume two, Issue three 14

14 // Brand Profile The Ballroom Bowl: where the

good times roll

The Ballroom Bowl in Toronto is a sprawling entertainment development that promises to deliver experiences like no other, setting a standard for all future venues to follow. With ambitious plans to roll the concept out to more locations across the country, The Ballroom Bowl has secured a lucrative location at Dundas Square in Toronto, and will be focussing much of its effort on customer service and ensuring a premium bowling experience for its guests.

20 // Retail Marketing Start with Loyalty: why

your start-up needs repeat customers right away

Within the hyper-competitive post-pandemic retail landscape, there are few things more important than repeat customers. With this in mind, and an eye on increasing revenue, it’s critical that retailers establish their businesses with customer-centric, data-driven, and loyaltyfocused approaches from the outset in order to properly engage consumers, attract their interest, and retain their loyalty.

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20 24 // Digital Retail The impact of digital technology on the customer journey, and how it’s helping to shape future experiences As the world around us continues to evolve, so, too, does the retail customer journey. Impacted by a number of different forcing functions and influences, it remains the focus of most retailers across the country that are always trying to better understand the behaviour of their consumers and the things that they look for from the shopping experience. Today, a plethora of technological tools help consumers find efficiencies and convenience within their engagement with brands. For retailers, they offer an opportunity to strengthen their connection with consumers, and elevate the experience they offer.

MASTHEAD //

Departments 03

Publisher’s Desk

06

Insider Insights

08

Main Street Matters

10

PUBLISHER Craig Patterson ASSOCIATE PUBLISHER Dustin Fuhs EDITOR-IN-CHIEF Sean Tarry

Evolution of Retail

GRAPHIC DESIGN GBC Design

24

CONTRIBUTORS Lia Grimberg, Shelby Hautala, George Minakakis, Craig Patterson, Mario Toneguzzi HEAD OF SALES AND SPONSORSHIP Darryl Julott darryl@retail-insider.com _________________________________ _______ EDITORIAL OFFICE 100 Bloor Street West, Toronto, ON, M5S 3L3 Retail Insider the magazine is published four times each year by Retail Insider Media Ltd.

30 // Retail Loss Prevention Protecting and

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enhancing the retail experience

With an aim to protect and enhance the retail experience, GardaWorld helps to ensure a safe and secure environment for the staff, guests and assets of retail organizations everywhere. therimagazine.com | 5

UPFRONT // INSIDER INSIGHTS

Safe and secure?

Disparity in opinion:

A recent survey conducted by Leger found that less than half (45%) of Canadians asked believe that retailers within the country are employing the right amount of security measures to prevent shoplifting.

27%

believe that there haven’t been enough measures implemented

10%

say that stores are doing too much to prevent shoplifting

Earning customer loyalty

Deloitte recently published a report titled ‘Evolving trends in brand loyalty and consumer behaviour: 2023 edition’, revealing that Canadian consumers continue to appreciate their favourite loyalty programs, with the majority believing that paid programs, with tiered memberships, offer the best rewards.

53%

pay for their loyalty programs

60%

agree or strongly agree with tiered memberships

62%

believe that they make consumers feel appreciated

Consumers are checking their lists Retail Council of Canada and Leger recently released the findings of their ‘Holiday Shopping Survey 2023’, revealing that the average Canadian consumer plans to spend an estimated $898, a rise from last year’s total average spend of $782. In addition, the report, based on a survey of 2,500 consumers across the country, helps identify the things Canadians are looking for from their holiday shopping experience.

66%

48%

will prioritize holiday sales and promotions

will be looking for exclusive in-store offers

55%

26%

will prioritize free shipping

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will be seeking value bundles

25%

will want to sample product

60%

will seek distinct online promotions

An experience worth paying for

86%

According to a recent PwC study, the customer experience remains an extremely critical component of the overall retail value proposition. In fact, the survey of Canadian consumers found that 86 per cent are willing to pay more for a better experience from the brands they shop with.

The study also found that 33% of Canadian consumers will stop doing business with brands after just a single poor experience. Further, 73% say that a positive customer experience is a key driver of loyalty.

Digital transformation In the ‘KPMG Tech Report 2023’, it’s revealed that Canadian organizations, generally speaking, realize the importance of prioritizing cutting-edge technologies in order to support growth and success. And, although Canadian businesses continue to lag behind their global counterparts when it comes to the implementation and use of innovative tools, organizations across the country plan to leverage the capabilities of the following technologies to achieve short-term ambitions (0-3 years):

56%

Artificial Intelligence/ Machine Learning

44%

Robotics/Automation

52%

Edge Computing (including the Internet of Things)

35%

Virtual Reality/ Augmented Reality

24%

21%

Quantum Computing

Web3 Technologies (including tokenization)

Interest rate impacts The Bank of Canada recently released findings from its ‘Canadian Survey of Consumer Expectations—Third Quarter of 2023’, revealing a range of perspectives among Canadian consumers concerning the impacts of recent interest rate increases.

27.6%

believe that the worst of the impacts are just beginning

22.1%

believe that impacts are about halfway through

11.8%

don’t believe that there have been any significant impacts

11%

believe that the worst of the impacts are mostly behind us

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UPFRONT // MAIN STREET MATTERS

Keeping Canadian consumer spend in the country by promoting shop local Helping consumers understand the value in shopping with local small businesses to benefit the overall health of the Canadian economy // By Ryan Mallough, Vice-President, Legislative Affairs, Ontario and VicePresident, Communications, Canadian Federation of Independent Business

There’s no better way to spend a fall afternoon than walking down main street and checking out the local shops. The window displays, the great products and – if you’re like me – the sweet treats often leave my wallet feeling a little bit lighter than when I started.

I’m always happy to support a great local business when I’m able.

But I never really think about what happens to my dollar after I spend it.

Turns out most Canadians are the same When it comes to shopping, Canadian consumers really don’t understand how our money is recirculated after we make a purchase.

A recent Angus Reid Group public opinion poll conducted on behalf of CFIB showed that Canadians wildly overestimate how much of each dollar they spend at multinational companies with bricks-and-mortar locations, like the Walmart around the corner, is reinvested locally. At the same time, they underestimate small businesses’ contributions.

When asked to guess how much money stays local when shopping at a large retailer with a physical location, on average Canadians said 37 8 | Retail Insider the magazine | Volume two Issue three

cents. Respondents also guessed that 38 cents on average stays in the community when buying from a small business.

This means Canadians think that large multinationals and small businesses contribute almost equally to local economies.

Not only is that not true, it’s not even close Our research shows that when consumers buy from a local small business, 66 cents out of every dollar spent stays local. On the other hand, only 11 cents of every dollar spent stays within the community when customers shop at a large multinational business.

The difference is staggering It means 55 cents of every dollar spent gets pulled out from your community when consumers shop at large retailers.

Or thinking about it the other way: six times more money goes back to your community when customers choose to shop local.

These results prove again how essential small businesses are to our local economies. Their

employees are local. Their profits and charitable donations are local. The goods and services they source are local. They support the whole local ecosystem in a way the retail giants just don’t.

Shopping at a small business helps keep our communities thriving.

We all benefit from it, we just need to be more aware of it.

Governments also have a role to play to help: • Firstly, ensure fairness in the digital economy so small businesses can innovate, thrive and compete fairly with online giants.

• Reduce the tax burden on small firms so they can pay their pandemic debt, reinvest in their business or increase employee compensation.

• Red tape is another big headache for small

businesses, so policymakers should prioritize cutting unnecessary regulations and letting entrepreneurs do what they do best: run their business.

A near-unanimous 95 per cent of small business owners wish their customers knew how much further their dollar went when it’s spent at local independent small business. Call it the next conscious consumerism. We all need to realize how much our choices can affect the economy, both locally and on a wider scale.

------Ryan Mallough is the Vice-President of Legislative Affairs (Ontario) at CFIB, Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region, 22,000 of whom are operating in retail.

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UPFRONT // EVOLUTION OF RETAIL

Digital futures powered by retailers with a focus on customer growth Leveraging strategic technologies and a clever use of data can help retailers continuously adapt to better understand evolving consumer needs // By George Minakakis, Founder and CEO of Inception Retail Group, and Author of The New Bricks & Mortar Future Proofing Retail

Jack stood confidently in front of his closet, with some concern and anticipation in the air. An invitation to an elite gala the following week sat in his email, part of many events he may attend with his new role, he was determined to make an impression and get out of his jeans and t-shirt combos he is so well known for at work. With his wardrobe limited he turned to his wife Sarah. She immediately launched her AR-powered fashion app and, with a few additional tweaks, they were looking at men’s fashion. Jack pointed to a few options that he thought matched his style. Sarah then flipped over to the AI-driven personalized assistant, attuned to her past choices, and unbeknownst to Jack she had fashion stores that she used to buy clothing for him. The personalized assistant found collections from different retailers that matched their choices. And with their commitment to sustainability, they verified Jack’s choices against a dedicated ethical fashion database. They picked the retailers, the personalized assistant connected with the retailers AI, quickly verifying that they could pick up the clothing within an hour.

Behind the scenes, the retailers were equally as proactive and tech-savvy as Sarah.

The moment Sarah interacted with the AR-powered fashion app, data analytics tools at a host of retailer’s sprang into action. These tools, collect10 | Retail Insider the magazine | Volume two Issue three

ing real-time data on user interactions, provided insights into popular trends, items frequently tried on, and even those that were often abandoned before purchase. Such insights allow retailers to fine-tune their offerings, ensuring that stock levels match demand and marketing strategies are aligned.

When Sarah utilized the AI-driven personalized assistant, the machine learning algorithms didn’t just stop at providing her and Jack with recommendations. They also sent feedback to the retailer about user preferences, highlighting items that were frequently paired or recommended together. Such data empowered retailers to design future collections with pieces that seamlessly complemented each other, ensuring a cohesive and curated shopping experience for all customers.

Lastly, Jack and Sarah’s sustainability check didn’t go unnoticed. The rise in consumers verifying the sustainability of their purchases urged retailers to integrate blockchain technology, offering transparency in supply chains. This not only instilled trust but also gave retailers an edge in the com-

petitive market by showcasing their commitment to ethical practices.

So how did the retailers win these two customers and their order?

The retailers realized that the modern customer was not just looking for a product, but an experience. They understood that the purchasing journey now started long before entering the store or clicking ‘buy’ online. In response, they invested heavily in advanced technology to ensure that their brands were not only visible but also enticing to technologically-savvy customers like Sarah and Jack.

If you can imagine for moment in this future shopping scenario artificial intelligence apps are dominating the search landscape for faster and more precise results. This could actually block many retailers from being seen by potential buyers if they are still waiting for the traditional in-store or website visit. To be more precise it is AI that will be doing the search. What did these smart retailers do?

Integrating with popular APIs is important Retailers were able to ensure that their products are accessible to a wider range of applications for broader visibility. APIs allow for real-time synchronization of data because a seamless experience is important. The retailer on their part had to standardize data formats, regular updates are important to make their API compatible with the latest version of AI apps and other platforms.

This also means they established strategic partnerships with AI app developers allowing for product launches and promotions. Retailers would then monitor traffic and data requests coming through their APIs. Allowing the retailer to make strategic decisions.

Immersive AR Experience Retailers worked closely with tech developers to create an immersive AR shopping experience.

This meant that shoppers could virtually try on clothes and see every detail, like how the material looks. They did this in order to bridge the gap between stores and online which is still a problem.

Integrating AI in stock management AI-driven stock management ensured that there was no gap between demand and supply. Machine learning algorithms predicted stock requirements, especially for trending items, ensuring that popular items were always available. This ensured that the product was in inventory before a recommendation was made.

The success of the retailers in this journey was a testament to their adaptability and forward-thinking.

It wasn’t just about using technology, but leveraging it strategically, combined with a deep understanding of evolving consumer needs. These retailers didn’t just sell products; they sold experiences, trust, and sustainability. therimagazine.com | 11

Image by luza studios

Personalized marketing strategies

Feedback loops

Using the data from the AI-driven personalized assistant, retailers crafted highly personalized marketing campaigns. Just like sponsored promotions on social media, retailers could invest in strategic ad placements within AI-driven apps, to reach the highest visibility. A user like Sarah may even receive an instant offer.

These retailers didn’t just use AI and data analytics passively. Feedback from these tools was continuously leveraged to plan and manage strategies, products, and marketing.

Training and preparing the human workforce Technology was just one side of the coin. Retailers also understood the importance of human touch. Sales teams underwent rigorous training to understand and leverage these new tools and how they were to prepare for customers picking up their orders. And to eliminate unnecessary returns, they showed customers the fitting rooms and had other options ready for them.

Building trust through blockchain When it came to sustainability, blockchain became an integral part of building trust with consumers. With blockchain’s transparent and immutable features, customers could see the entire journey of a product, from source to store.

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In conclusion The success of the retailers in this journey was a testament to their adaptability and forward-thinking. It wasn’t just about using technology, but leveraging it strategically, combined with a deep understanding of evolving consumer needs. These retailers didn’t just sell products; they sold experiences, trust, and sustainability.

And in doing so, they didn’t just win a sale; they won loyal customers for life. What else will win the Jack’s and Sarah’s of the future? Simplification and convenience will be key drivers for them.

Retailers harnessing advanced technologies will allow their brands to continuously adapt.

------George Minakakis is the CEO of Inception Retail Group Inc. and Author of The New Bricks & Mortar Future Proofing Retail

FEATURE // BRAND PROFILE

The Ballroom Bowl: where the good times roll Sprawling entertainment development in Toronto promises to deliver experiences like no other, setting a standard for all future venues to follow // By Mario Toneguzzi

The Ballroom Bowl at Dundas Square setting the standard for all entertainment venues to follow

14 | Retail Insider the magazine | Volume two Issue three

T

he Ballroom Bowl is where the good times roll in Toronto in a sprawling entertainment venue that has ambitious plans to roll out the concept to more locations.

Paul Donato, President and CEO of Dundas Valley Advantage Holdings Inc., which operates the unique sports and entertainment venue, says he’s owned the Ballroom Bowl in downtown Toronto for 13 years and the idea has become a popular one in the city.

Images courtesy of The Ballroom Bowl

“Obviously, the foundation of the Ballroom Bowl is bowling,” says Donato. “When I financed the original Ballroom Bowl back in 2010 it was all because of the bowling and the discovery that if I took a flier on this business venture what I had discovered was it would be the only bowling alley in downtown Toronto. And we’re still the only game in town. The intention has always been to build out the Ballroom Bowl as Canada’s only and first premium casual bowling company.

It will be all about service, service, service. But bowling is the mainstay. Bringing a different, not just a different concept, but an enduring business and an enduring industry that Canadians kind of forgot about. I have big plans for the company.”

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Currently, the original location at John and Richmond in the Entertainment District has been operating for the past 13 years.

“We are currently in the middle of construction at Yonge and Bloor (in Yorkville) and we have now finished a deal for Dundas Square,” says Donato.

The location in Yorkville is scheduled to open in November with the Dundas Square location to open late next year.

Ryan Johnson, Founder of Defy Them All, an agency that helps brands attract attention and build business, is helping reinvigorate the Ballroom Bowl brand and prep it for expansion.

Mimi Wheeler, Senior Director of Strategy for Defy Them All, said originally Donato had a vision to name each location differently, but the

“We’re introducing something unique in that we’re bringing the social gaming component to that. When you’re going into a tourist area, we’ve got so many things we can pull on. We’ve got the tourist element. We’ve got the Toronto Metropolitan element. It’s got all the ingredients for success.

We’re thrilled.”

- Alex Edmison, CBRE

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company learned that there was a lot of equity in the Ballroom Bowl brand.

“People know it. It stands for something. It’s the first premium, casual bowling chain in the whole city of Toronto and, in fact, Canada. Being a strategist, I wanted to leverage every asset that I could. And so our recommendation was, given the fact that the neighbourhood of Yorkville comes with a lot of equity and stands for certain things, it would be very complementary to what the concept for the bowling offering in Yorkville was going to be, which was upscale, premium, beautiful bar - the top of the line. It’s very, very different from the one in the Entertainment District,” says Wheeler. “So our recommendation was to leverage the equity of Yorkville in naming this and keep the Ballroom Bowl as the master brand. It means less investment, quite frankly, because as you’re expanding you don’t have to change the name. You don’t have to reinvent the name - you just build on that equity, establishing sort of a sub-brand which is the Yorkville version of the Ballroom Bowl. So each one has a different flavour. And as you know, Dundas being in the centre of everything, it’s much more dynamic, a lot of vitality. That one again will have a very different, more urban flavour.”

Alex Edmison, Senior Vice President with CBRE on the urban retail team, is representing the brand in its expansion plans. He says the corner of Yonge and Dundas is one of the busiest intersections in the country, if not the continent.

“We’re introducing something unique in that we’re bringing the social gaming component to that. When you’re going into a tourist area, we’ve got so many things we can pull on,” he said. “We’ve got the tourist element. We’ve got the Toronto Metropolitan element. It’s got all the ingredients for success. We’re thrilled.”

Jennifer Crispel, Senior Director, Retail Leasing at BentallGreenOak, representing the landlords at Dundas Square, says the traffic in that area is undeniable.

A fantastic location at Toronto’s Yonge and Dundas promises to offer something for everyone.

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“We really took the opportunity over the last four or five years or so in an effort to try and reposition this centre into a full-on entertainment, food and beverage centre. So the use was perfect for us in so far as the qualities that it offered for the building, number one, and for the area as well,” she says. “It’s right along the lines of exactly what we were looking for. People going there, eating, enjoying life, drinking, bowling. So really it’s just the perfect match for our vision of that entire property.”

Edmison says if a company is looking to build a brand, typically they go to very prominent locations.

“We aren’t going to stop at Dundas and 1 Bloor.

We’re going to scale this out and build it. So these are the logical places to start with. They’re the best intersections in Canada. That’s going to propel growth,” he adds.

Johnson says that the brand’s key message is that this is where Toronto comes to play.

“From a creative person’s perspective there’s nothing more engaging than being able to play with the tension of everything we have to do with our daily lives and then what we get to do when we find an escape or respite from that,” he says. “The Ballroom Bowl, in particular, presents a really unique, creative opportunity in that we now have all of these different flavours within the same concept that we get to bring to life.”

knows,” says Johnson.

The original location is 23,500 square feet. Yonge and Bloor will be about 20,000 square feet and Dundas will be about 15,000 square feet.

How many of these does Donato see in the future?

“The upside is infinite,” he says. “I think the biggest thing with regards to our national expansion plan is the fact that we already have the executive management team in place. We’ve got a Four Seasons-trained beverage director. We’ve got one of the top chefs in the entire city of Toronto who’s already recruited another chef to come on board with us. There are things that we’re doing that nobody else in the entire Canadian bowling industry is doing.”

Edmison says the brand will be looking for sustainable growth.

“It’s opportunity-driven,” he says. “We’d like to do as many as possible, as fast as possible. But we want to grow in a sustainable way. If you look 20 years down the line, we would want to be represented in every major market in Canada - anywhere you would see an Earl’s or a Keg. Those would be logical areas where we could put a bowling venue. We’re probably going to grow it out GTA-focused. We’ll consider other markets.

It will be a mix of strategically going after areas that we’re interested in while also pursuing other opportunities that present themselves.”

The original location will remain “kind of sports, bowl, rock and roll.” Yonge and Bloor is going to become a really upscale, very sleek, almost “clandestine” destination where people can come and hide out. It will have two separate lanes on the VIP side that are going to be exclusive. Dundas Square is going to be loud - a much more urban, almost industrial feel.

The original Ballroom Bowl describes itself as Toronto’s “coolest” interactive entertainment centre with 23,500 square feet, including 10-pin bowling, dozens of TVs, a rooftop patio, music and elevated pub fare.

“As a creative partner in this, we get to express all three of those different flavours underneath the Ballroom Bowl brand. And beyond that - who

“Customer first, Four Seasons-like differentiating service - it’s what we are bringing to the bowling industry, which doesn’t currently exist.”

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Donato says he’s had a singular focus in his career regarding razor-like service.

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FEATURE // RETAIL MARKETING

Start wi

Why your start-up nee // By

20 | Retail Insider the magazine | Volume two Issue three

Image by designer491

ith loyalty:

eds repeat customers right away y Lia Grimberg

L

oyalty and customer-centricity are concepts typically applied to mature businesses, while start-ups predominantly focus on brand and growth marketing. For new businesses, customer acquisition takes precedence, leading them to allocate most of their time and resources to activities like branding, SEO, SEM, and digital advertising, all geared toward attracting a broad audience and building a prospect pipeline.

However, what if loyalty concepts and data-driven marketing were ingrained from the outset?

Leapfrogging is notably more straightforward than the arduous process of rectifying legacy systems and retrofitting processes and mindsets.

The critical question to consider is whether to prioritize acquiring new customers or nurturing repeat customers. Did you know that loyal customers buy 90 per cent more frequently, spend 60 per cent more per transaction, and deliver 23 per cent more revenue and profitability than firsttime purchasers? Increasing customer retention rates by 5 per cent can increase profits by 25-95 per cent. therimagazine.com | 21

Net Revenue Retention (NRR) is emerging as a pivotal metric used in determining a startup business’ potential longevity. Even though it is used primarily for subscription businesses, it should have broader applications. If repeat business and long-term revenues pique your interest, let’s begin by defining the four Rs of loyalty principles: 1. Recognition - Utilizing customer data, you must extract insights to truly understand your customers and their interactions with your business. Loyalty operators should identify their top and potential customers and invest in them accordingly.

2. Rewards - It’s essential to establish a fair exchange of value for your customers’ data. While many loyalty managers tend to associate rewards solely with cashback, points, travel perks, or merchandise, rewards can encompass anything that holds value for members, such as entertainment, access, community, time-saving features, or environmental, social, and governance initiatives.

3. Relevance - Data collection and storage can be costly endeavors for retailers to undertake.

Customers are more likely to abandon a brand if they don’t receive value in return for sharing their data, whether in the form of tailored offers, relevant products, personalized communications, or an enhanced overall experience. In fact, 33 per cent of consumers are inclined to abandon a brand lacking personalization. Would you be willing to lose a third of your customers due to a lack of personalized experiences?

4. Relationship - Loyalty functions as a two-way street; customers who show loyalty expect reciprocity for the brands that they engage with. It’s about engaging in a dialogue rather than engaging in one-sided communication.

Now that we comprehend the vital loyalty principles and the advantages of establishing customer-centric systems and processes from the outset, let’s delve into the five steps to ensure your start22 | Retail Insider the magazine | Volume two Issue three

up is poised for success: 1. Set Your Objectives - One of the primary reasons loyalty programs fail is a misalignment among C-suite executives regarding objectives and a lack of communication about these objectives throughout the organization.

In order to ensure success, retailers will want to clearly define meaningful metrics, their prioritization, and what constitutes break-even or success for each metric.

2. Customer Strategy - Every facet of your business, including location, customer experience, merchandising, pricing, operations, and marketing, should commence with the customer in mind.

What are her needs? More importantly, how are you fulfilling these needs in a unique way? What value do you offer in exchange for her hardearned dollars, and how do you reward her loyalty? Remember, value need not solely be financial; it can encompass various forms like time savings, relevant communications, access to a community, or engaging entertainment.

3. Collect and Analyze Data - Unless you’re a small, local business owner, customer data is pivotal for scaling your understanding of customers.

To meet customer expectations of personalization, establish systems and processes for: (a) collecting data at the customer level; (b) deriving insights to identify pain points and opportunities; (c) disseminating insights throughout the organization; (d) making informed data-driven decisions; and (e) personalizing and delivering relevant content and marketing.

Many businesses falter at step (b), failing to analyze the data, rendering it an expensive and underutilized resource.

4. Marketing and Loyalty Technology - Prioritize strategy before technology; don’t make the mistake of designing them in reverse order.

Image by cacaroot

Loyalty and marketing technology should serve to enable users to create a unified customer view across all of their brand interactions, analyze data efficiently, manage loyalty programs more effectively, and execute highly personalized, segmented, and trigger-based marketing communications.

5. Seamless Operations - Execution is crucial for the success of loyalty programs. It hinges on factors such as integrated systems, effective communication with both staff and customers, and seamless integration into in-store operations. Develop comprehensive customer journeys across all touchpoints and rigorously test these experiences to eliminate friction and ensure flawless customer interactions.

Establishing your business with a customer-centric, data-driven, and loyalty-focused approach from the outset is significantly more straightforward than retrofitting processes, organizations, and technology later down the road. The benefits span from increased ROI to deeper customer understanding and the creation of emotional

connections. While it may not be a simple endeavor, I strongly recommend engaging a knowledgeable partner or consultant who understands customer mindsets, interprets customer data, and can help implement the necessary technology to bring your vision to life.

------Lia Grimberg is the Principal of Radicle Loyalty, a personalization and loyalty consulting firm.

Radicle Loyalty helps you find the root of the issue, the radicle. We analyze your data, gather insights, and use it to personalize your communications with your customers. Radicle Loyalty creates marketing strategies and designs loyalty programs to correct customer behaviour and drive emotional loyalty.

With more than 20 years in loyalty both as a practitioner and a consultant, Lia honed her loyalty and marketing skills during her corporate career at companies such as The Bay, Loblaw, LoyaltyOne, The Home Depot, and American Express. therimagazine.com | 23

FEATURE // DIGITAL RETAIL

Image by atakan

The impact of digital technology on the retail customer journey, and how it’s helping to shape future experiences Understanding your brand and the experience you offer customers is integral in ensuring long-term success // By Shelby Hautala

I

n today’s fast-paced digital era, technology has revolutionized the way consumers interact with businesses and has altered the consumer journey. The evolution of technology has brought significant changes throughout the retail industry such as personalization, seamless transactions and enhanced customer service. Looking to the future, technology holds limitless potential in retail and as it evolves retailers must learn to navigate, stay relevant and continue providing exceptional experiences to consumers. Lee Jack-

24 | Retail Insider the magazine | Volume two Issue three

son, senior vice president at JLL Digital Solution Advisory, discusses in what ways technology is improving the consumer journey, challenges and how it will continue to evolve.

Technology and the Consumer Journey – in what ways does technology impact the consumer journey?

Consumers rely on technology to navigate their way through retail by finding products, new

brands and to interact with retailers they use frequently. Retailers on the other hand dive into technology to provide exceptional customer service and experience online and in-store.

Consumers today have access to the use of online shopping, mobile apps, virtual shopping assistants, augmented reality, chatbots, digital payment options, self-checkout system, personalized loyalty programs, and more. If retailers use technology properly it will elevate the consumer’s shopping journey, if not – the relationship between consumers and retail could be damaged.

“In the simplest fashion – technology impacts the customer every day,” says Jackson. “Technology shapes consumer experiences and behaviors by offering convenience, personalization and efficiency. Consumers can now shop online, use mobile apps, engage with augmented reality and receive targeted recommendations based on their preferences.”

The use of technology makes finding what consumers are looking for easy. All it takes today is a quick search on a mobile device and consumers have access to a variety of brands and products.

Not only does easy access provide a seamless shopping experience – it increases brand awareness.

“I think in one way where technology has impacted the most is just from a discovery standpoint. You are able to explore, research and compare with digital tools in a way you have never been able to before. A customer journey used to start in simple places before we had mobile devices and even the internet. Before, people would open a newspaper or they would visit a physical store to find what they are looking for. Today, it is as simple as opening your browser and typing into a search platform what it is you are looking for and retailers know that is the start of a consumer journey.”

Jackson says with the use of technology, consumers can also search for reviews, alternatives, different price points and different brands. Mobile

devices have also put the ability for consumers to shop out of their hands for “immediate gratification. Technology has played a meaningful role in helping to continue the drive of growth of retail sales in the marketplace.”

With technology – responsibility also comes into play. Retailers must take responsibility for what tools they decide to use and to use them effectively, accurately, to protect privacy and to help consumers navigate these tools without confusion. When used correctly, retailers can use the technology they have to intercept consumers faster and provide consumers with information and current offers through sponsored placement, SEO and SEM capabilities and mobile devices.

This can help personalize the consumer’s journey and provide loyalty programs, perks, offers and promotions; however, without finding the right balance – retailers can accidentally overwhelm consumers.

Exhausting the Consumer: The Rise of Mass Marketing Although consumers have easy access to retailers – it runs the risk of being exhausting.

Daily consumers are getting bombarded with emails, social media advertising, text messages, mobile applications and have to keep up with which loyalty program they are involved with.

“I think there is fatigue that can come into place.

Technology can exhaust or overwhelm the consumer if not implemented thoughtfully. Bombarding customers with excessive notifications or irrelevant ads can lead to information overload and dissatisfaction. It is important for retailers to find the right balance and ensure technology is used to enhance the customer experience rather than overwhelm them.”

With the screen time average of 13 hours per day, according to a survey conducted by Nielsen in 2021, unnecessary messages from brands can be excessive. Jackson advises brands to make sure what they are sending out is of value to the therimagazine.com | 25

consumer, includes offers or promotions and is needed through a “balanced and thoughtful way.”

Additionally, retailers should consider using technology to provide insights into customer journeys, provide personalized marketing, and to test and learn to ensure the brand is making the right choices.

When consumers are receiving notifications nonstop from brands, it might lose the personalized feel and Jackson says consumers can become lost and feel unrecognized by the brand.

“If you have to provide your information every single time you make a transaction, whether it is through an e-commerce experience or within a store – most people find it frustrating. Con-

“A sports fan might not want to look at arts and culture products, a mom of three may not have the same interests as a teenager or a young adult who is single and has a different lifestyle at that moment in life.

So retailers really need to get segmented, personalized and thoughtful about how they are delivering messaging through digital channels and how they are engaging with consumers.”

- Lee Jackson

26 | Retail Insider the magazine | Volume two Issue three

sumers might think ‘Why do you not know me?

I have shopped here before’, so it can certainly be frustrating.”

Bottom line – brands should not be sending out mass amounts of information to consumers; unless it is necessary, has value and is relevant to consumers.

The Era of One-Size Fits All Approach If everyone has different lifestyles, then why is everyone under the same marketing approach?

With technology, retailers now have access to personalized information regarding what consumers are buying, what age they are, if they have children, where they are shopping from and more. Personalization is trending and retailers need to recognize how each shopper is unique and provide a more targeted approach.

Someone who is 20 studying at school is going to need different marketing strategies compared to someone who is 30 with a family. If retailers use repetitive and generic advertising on consumers, people will again feel unrecognized and will eventually stop reading those mass emails and social media campaigns. Consumers may also avoid ads on social media, decrease their purchases, provide negative feedback about a brand to others and could move to a brand who recognizes their needs as an individual.

“A person who shops for one product may not be seeking another product. A sports fan might not want to look at arts and culture products, a mom of three may not have the same interests as a teenager or a young adult who is single and has a different lifestyle at that moment in life. So retailers really need to get segmented, personalized and thoughtful about how they are delivering messaging through digital channels and how they are engaging with consumers.”

Jackson says Retailers can do this through loyalty programs, perks, offers and promotions. Retailers can also align with consumers from a personal

Image by Funtap

belief system or a culture standpoint: “There are a number of ways retailers can take care of that valuable relationship.”

To do this, Jackson provides multiple ways on how retailers can provide a more personalized experience. One way is for retailers to use sensor technology. This would allow retailers to detect live movement in stores, to see where people are going within stores, how long each consumer is staying and what products they are engaging with.

“From that point forward, retailers would be able to connect these dots through opportunities such as loyalty apps, real-time navigation through optin methods, promotions and offers. If the person gives you the right to communicate with them, you are able to understand what are the products

consumers are engaging with within the store and use that information to help personalize the products that are being marketed to the consumer.”

The second way Jackson says is through retail media and digital screen networks.

Unlike the first concept, retailers would use the information it gathered from sensor technology and use it to provide a personalized in-store experience.

“A digital signage within premise. Taking the same concept, but understanding the time of day and how to advertise the products, how to bring forward promotions, how to connect and what you are displaying on the screen in-stores and personalize it to the individual. That is something therimagazine.com | 27

that has been really growing in the marketplace as a retail technology solution.”

testing and promptly address customer issues to maintain a positive relationship.”

Building a series of technology methods is important, such as connecting loyalty programs, data capture at point of sale, connecting your omni channel between e-commerce and in-store so you can recognize each consumer no matter how they shop; therefore, providing an enhanced personalized experience, giving the consumer a reason to keep coming back.

The Astonishing Possibilities: Unlocking the Future of Technology

Improving Technology to Boost Consumer Experience – And What Happens When You Don’t “Retailers in Canada can improve their technology adoption by focusing on areas such as mobile payments, e-commerce integration, supply chain optimization and data-driven decision making.

Technology can help retailers succeed by providing real-time inventory management, targeted marketing, personalized loyalty programs and enhanced customer service. It can also help identify areas of failure such as inefficient processes and gaps in the customer satisfaction, which can be addressed to improve overall performance.”

If retailers ignore necessary changes or fail to provide a seamless journey for consumers by not using technology correctly, Jackson says it could lead to a negative impact.

One way Jackson says some retailers fail at using technology, is data breaches as he has seen “a tremendous amount of headlines and many retailers and organizations have broken trust with the consumer.” Jackson says any negative experience with the brand, such as data breaches, consumers are unlikely to share with the retail – but will share with consumers and will move forward with another retailer that suits their needs better.

Jackson suggests retailers need to test, test and test again to learn what works and what isn’t.

“Poorly designed websites or mobile apps, technical glitches during the checkout process and inadequate customer support can lead to frustration and a loss of trust. It is important for retailers to invest in user-friendly technology, conduct 28 | Retail Insider the magazine | Volume two Issue three

New technologies and innovations will continue to evolve and shape the retail landscape, which will provide exciting opportunities for both retailers and consumers. With the right tools, Jackson says retailers will be able to fully connect the online and in-store experience to provide a more personalized experience, have tailored marketing campaigns, personalized product recommendations and provide new experiences such as cashierless stores and virtual realities.

“Technology will continue to evolve in retail driven by advancements in AI, machine learning, automation, the internet of things, and data analytics,” he asserts. “In the future, we can expect improved personalization, seamless integration of online and offline experiences, cashierless stores, virtual and augmented reality experiences and enhanced chain supply visibility. Additionally, sustainability and eco-friendly technologies are likely to play a more significant role in the retail sector. As an AI assistant, I would like to see technology being used ethically and inclusively, providing equal access and benefits to all consumers.”

Jackson also says he thinks the future of technology in retail will involve a “holistic customer convenience” so the consumer can do just about anything in or out of the store with their mobile device. This could include AI supporting product discovery and personalized chats.

“The biggest gap is many providers have not made the fundamental upgrades to their infrastructure to become true Omni. Retailers who solve these components and bring them all together for the customer will make it incredibly easy, convenient and it is adding significant value to the consumer’s experience and journey – that will be the retailers that win.”

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FEATURE // RETAIL LOSS PREVENTION

Protecting and enhancing the retail experience GardaWorld helping to ensure a safe and secure environment for the staff, guests and assets of retail organizations everywhere // By Sean Tarry

A layered suite of GardaWorld security and monitoring services allows retailers to protect their assets.

30 | Retail Insider the magazine | Volume two Issue three

W

Images courtesy of GardaWorld

hen it comes to achieving success within the hyper-competitive retail industry, there are a number of different elements and aspects of the operation that brands must consider, from marketing and merchandising to supply chain and information technology, and everything in between. However, given the fact that retail is essentially about satisfying the consumer, nothing is more effective than the creation of an engaging environment within which the customer can shop and interact with the retailer.

And, nothing, says Sean Sportun, Vice President, National Accounts & Community Engagement at GardaWorld, is more important than ensuring the safety and security of that environment and of the staff, guests and assets of the retail organization.

“The physical brick-and-mortar store is, in most ways, where the retail experience takes place,” he asserts. “It’s where customers go to touch, feel, test and purchase product, and to engage with retail associates about product details and features.

It’s where employees of the brand are spending a considerable amount of their time throughout therimagazine.com | 31

each week. And it’s where the retailers’ products are sitting on shelves and being stocked. In short, the retail store serves as a significant hub of sales and activity for brands. And, as a result, it’s in the best interest of all brands to ensure a safe and secure environment in order to enable the extraordinary experiences that they’re attempting to create for their employees and guests.”

Combatting retail theft GardaWorld – a global leader in security operating in more than 45 countries across 5 continents around the world - provides a breadth of services and solutions designed to help businesses in a number of different industries and sectors protect their people and assets. And, with nearly three decades of experience doing so, the insights and understanding that the company brings to each of its clients are incredibly beneficial in helping them implement services and solutions,

“Our goal is to help protect retail businesses, their people and their assets. And, because we understand that every retailer is different, with varying business and security needs, we allow our clients to build a customized suite of services and solutions that fit their unique needs.”

- Sean Sportun, GardaWorld

32 | Retail Insider the magazine | Volume two Issue three

or enhance current solutions already in place, in order to bolster the safety and security of their premises. With respect to securing the retail environment, Sportun recognizes the challenge in combating the scourge of the industry – theft.

“One of the biggest problems with theft within the retail environment is the fact that it’s been viewed by many as a ‘victimless’ crime – a property crime,” he says. “And that’s just not true. It’s estimated to be an issue that costs the industry approximately $5 billion every year. And, it’s not just the retailers that are suffering the consequences. Theft also hits the customer who ends up paying for the price inflations that are often required in order to make up for the shortfall caused by dishonest visitors.”

Range of solutions Sportun goes on to explain that the cost associated with theft is not limited to finances, however, citing the brand’s reduced credibility in the minds of their consumers as a loss due to theft that cannot quite be properly quantified, but which is one that bears significant impact.

In an effort to help retailers address the issue of theft and implement some solutions to address it, GardaWorld offers a robust selection of physical security services to clients within the retail community, including ambassador guards at the front door, floor walkers that can help identify shoplifters, and mobile patrols that roam from store to store, in addition to consulting and investigation teams that add a critical layer of strategy and intelligence to a brand’s suite of protective solutions. And, according to Sportun, they are all solutions that have been designed with the end-user – the retailer - in mind.

“We have a whole range of solutions and services that we offer retailers,” he says. “And, we work with all types, formats and sizes of retailers, from single location mom-and-pop shops to brands operating multiple locations across the country. Our goal is to help protect retail businesses, their people and their assets. And, because we

Physical security provides a meaningful defense against theft and other retail-related crimes.

understand that every retailer is different, with varying business and security needs, we allow our clients to build a customized suite of services and solutions that fit their unique needs. We send a team in to conduct a complete risk assessment of the store and evaluate the security elements that are required in order to create a safer and more secure environment. And, because we work with a number of different retailers operating in provinces and territories right across the country, we have access to an entire network of data and information that we can share across the board in order to help businesses more easily identify trends and take the necessary measures to protect themselves from crime.”

Preventing loss In addition to theft, retailers have got to defend themselves against other forms of loss. Shrink, which also includes fraud and operational defi-

ciencies, poses daily challenges for businesses of all sizes and can have a significant impact on a retailer’s bottom line. With a deep understanding of these challenges associated with loss prevention, GardaWorld assists and equips retailers in safeguarding their assets and reducing losses through a range of services.

“As a retailer, it is crucial to strike the right balance between protecting profits and ensuring a positive customer experience,” notes Marc-Andre Plaisance, Director of Loss Prevention at GardaWorld. We have developed a comprehensive approach to loss prevention to ensure that we address the various sources of loss a retailer may face.”

The cornerstone of this prevention effort is undoubtedly the security audit. GardaWorld’s team of experts conduct a thorough evaluation of the physical and operational security measures of the therimagazine.com | 33

Full GardaWorld surveillance and monitoring ensures that assets are proactively protected in real-time.

business. They identify weaknesses, assess the effectiveness of existing security measures, and propose enhancements. These audits not only improve protection against both external and internal theft but also create a safer environment for customers and in-store personnel.

“A security audit is like a health check-up; you need to understand the source of the problem before prescribing a treatment,” adds M. Plaisance.

In cases of suspected internal theft or fraudulent activities, GardaWorld’s investigation services assist merchants in building a strong case. This ranges from examining cash reports to searching for potential irregularities and conducting indepth interrogations, ensuring that the legal and ethical aspects of the process are strictly adhered 34 | Retail Insider the magazine | Volume two Issue three

to, which helps merchants, whether small or large, resolve their internal theft issues.

As for external theft, the company’s trained guards operate incognito as “floor detectives,” dressed in civilian clothes. They’re visible enough to deter potential thieves, but discreet enough to intercept any attempted shoplifters. This proactive approach not only minimizes shoplifting but also fosters engagement with employees, who view the floor detective as an ally in the fight against theft.

Sound the alarm In addition to offering physical security solutions that are second-to-none, GardaWorld also provides its clients with a comprehensive range of el-

ements to choose from in order to build the ideal security system for their store or stores, which can include intrusion detection and live video monitoring, electronic access control, water leak detection, fire alarm, mobile surveillance units, and more. Combined with the human expertise that the company employs, its innovative and performance-driven security systems continue to play a significant role in its ability to protect the assets of retailers all over the world. And Charles Ethier, Senior Director, Commercial Systems Sales - Eastern Canada at GardaWorld, suggests that the capabilities of the company’s systems and technologies are only increasing.

“The alarm system is obviously an incredibly important piece of the protection toolkit, especially within the retail environment,” he recognizes.

“It serves a number of different purposes, and is often deployed by businesses for a number of different reasons. With respect to the physical assets of an organization, it’s the last line of defense.

But it also serves as a lifeline to the GardaWorld monitoring and surveillance centre, allowing for real-time remote control which allows for quick verification as to whether it’s an emergency or a false alarm. It’s just one of the many ways in which this type of security technology has changed over the years, becoming more intuitive and better at detecting intrusions and anomalies.

Technology is allowing for all of the tools that we’ve been working with for years - motion sensors, glass break detectors, camera systems, network video recorders, and other access control devices – to improve and connect to one another, adding more protection and more resources to loss prevention managers and their teams.”

Business intelligence As Ethier explains, this type of security ecosystem of connected technologies and devices certainly helps brands in their loss prevention efforts. However, the informing capabilities of the data that’s generated from GardaWorld’s state-ofthe-art security systems extends well beyond the scope of loss prevention and catching criminals.

In fact, according to Ethier, it’s serving retailers as incredibly meaningful business intelligence – advanced analytics that’s helping to not only transform retailers’ loss prevention performance, but the performance trajectory of their organizations as a whole.

“When most people think of security systems, they typically tend to associate them with intrusion burglar alarms,” he says. “But, with advances in technology, we’re able to deploy advanced intelligence systems that offer business intelligence for retail operators and store managers, such as customer heat maps that illustrate where visitors to the store are spending most of their time. Data related to insufficient stock on shelves can also be relayed, prompting automatic messages to be sent to employees responsible for replenishing stock in order to alert them of the situation. Essentially,

“The advancements that are currently being made around the development and use of technologies fuelled by artificial intelligence are immense and are providing retailers and other businesses with the technological wherewithal to improve their operations.”

- Doug Sales, GardaWorld

therimagazine.com | 35

today’s security systems, combined with the continued evolution of a range of different technologies, are providing a critical service to retailers by way of keeping their premises and assets safe and secure, in addition to helping them improve their business outcomes and the development of future strategy.”

Technological advancement It’s a consistent evolution and advancement of technology that’s also recognized by Doug Sales, Senior Director, Commercial Systems Sales Ontario and West, at GardaWorld, and one that he believes poses the potential to transform the way retail organizations and their loss prevention professionals work forever. Driven largely by innovations around artificial intelligence and machine learning models, he sees an entire new generation of tools, software and solutions emerging that are smarter and more accurate than they have ever been before.

“The advancements that are currently being made around the development and use of technologies that are fuelled by artificial intelligence are immense and are providing retailers and other businesses with the technological wherewithal required to improve their operations,” he states.

“It’s also serving as another layer of the store’s operations and loss prevention efforts, allowing them to not only capture recordings of incidents and the data related to those incidents, but the intelligence now allows retailers to quickly and precisely find that video data, creating efficiencies and saving time and money, too. In short, this type of technology, and the advancements that are being made every day, has made the job of today’s retail loss prevention professional that much less daunting, opening up a whole new world of business opportunities for the brands they work for.”

A hybrid approach Sales explains further that as the technologies and their capabilities continue to enhance, so too 36 | Retail Insider the magazine | Volume two Issue three

do the possible uses for them, suggesting that, as a result of the types of services and solutions available to retailers, that the industry could be on the tipping point of a real reduction in shrink.

Despite the potential that he sees in it, however, he says that technology should only ever serve as a layer of the protection employed by any retailer or business, advising that a combination of tools and technologies that are supported and managed by human resources will likely always be the best approach to security.

“Some of the technological tools and solutions today are incredible,” he says. “But security systems that are comprised only of cameras, speakers, alarm systems or access controls will only be as effective as they’ve been designed to be. In other words, many within the retail industry are finding that a hybrid solution, one that deploys the very best in technological tools, artificial intelligence and human intuition, is the security system that has the greatest impact, allowing for the most sophisticated responses within a layered approach.”

Securing the retail experience Preserving the retail experience – the one that both the customer and employee of the store receives – is obviously of paramount concern for brands operating all across the country. As a result, loss prevention teams are constantly looking for newer and better ways to ensure the safety and security of their retail establishments and provide an environment for visitors that is welcoming and enjoyable. By exploring the latest in security technologies and systems, brands can custom build the suite of solutions that works best for their businesses, while enhancing their performance and protecting their future successes and growth.

------For more information about GardaWorld and its suite of safety and security services and solutions available to retailers, visit garda.com

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In the next issue…

• • •

The art and science of retail data Retail store design A look ahead to 2024

Distributing December 2023

38 | Retail Insider the magazine | Volume two Issue three

Image courtesy of Nick Fox

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