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RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT SPONSORED BY PRESENTED BY RIS RETAIL MATURITY LADDER Maturity Ladder: Promotions Management The RIS News Retail IQ Report Maturity Ladder is a diagnostic measurement tool for a retailer’s state of technology advancement in a specific category. There are four key phases: 1. Basic – minimal capabilities, 2. Intermediate – mostly basic with some advanced capabilities, 3. Advanced – mostly advanced capabilities with some limitations, and 4. State-of-the-Art – comprehensive capabilities are fully integrated and up to date. Note that it is possible to be on more than one step of the ladder simultaneously as specific technology components and processes are upgraded in phases. 4. STATE-OF-THE-ART • Promotions management software integrates and cross-references everything involved in the promotions process — including promotions history — across channels. • Promotions management software centralizes and coordinates strategies across multiple teams and departments, including print, advertising, pricing, operations, plan-o-gramming, social media and visual merchandising. Each department is now aware of the other’s timing and agenda. • Analytic reports can be generated instantaneously to monitor a promotion’s success. • A single system of record manages vendor funds, rebates, deals, offer management and best practices for promotion execution. • The “coming together” of teams optimizes promotional performance, regardless of channels. It also eliminates the duplication of efforts on the part of different departments and ensures that everyone is working on a unified promotional plan. 3. ADVANCED • Use of internal and external data paints a complete picture of both existing and new target consumers. Information also helps determine which type of promotion (coupons vs. flyers) and promotional vehicle (paper vs. digital) work best. • Predictive analytics factor in consumer data, timing, in-store placement, lift in demand and expected profits. This helps define the likelihood of specific outcomes. • Promotions can be varied by time, day and market for maximum effectiveness. • Implementation of electronic shelf labels creates huge labor savings and ensures price changes are enacted in a timely and accurate fashion. Pricing can easily be changed by time of day or if the promotion is not generating expected results. • Personalized promotions, such as beacon-enabled apps or mobile-enabled e-circulars, target certain shoppers with specific products and promotions. 2. INTERMEDIATE • POS, loyalty card and other customer data is used in developing promotions. While this is successful in attracting existing shoppers, it does not draw enough new customers. • Lack of sufficient outside data reduces knowledge and awareness of particular demographics in some trading areas. • Promotions are all price driven. • The activities of merchandising, advertising and marketing departments are not coordinated or in sync. Thus, departments have conflicting agendas and do not have a deep understanding of the other’s role or priorities. • Lack of a centralized system makes it difficult to coordinate promotions across categories or channels. 1. BASIC • Dozens of basic spread sheets are used to plan and manage promotions. • Growth of omnichannel, new markets and/or business units make manual management of promotions increasingly complex and difficult. • Price change activity and advertising are not backed by consumer insights, demand forecasting and performance measurements. This makes outcome control haphazard. • While some promotions are successful, others eat into margins or attract “cherry pickers” who only shop sales. 2 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT Promotions have been around forever. But in today’s highly competitive landscape, retailers must use them in creative ways to persuade shoppers to buy merchandise without seriously eroding profits and margins. They must also encourage repeat traffic and minimize the number of “cherry pickers” who only shop sales. Price is not the only consideration when staging promotions — successful promotions require the right timing, consumer target, mer- In-Store Digital Technologies Used by U.S. Retailers • Mobile apps, 64% chandising strategy and store location. Retailers also need the right promotional vehicle. Historically, they were limited to print, radio, in-store signage and TV. Growth of digital, and the subsequent fragmentation of media, have made delivery choices more numerous and complex. At the same time, media has become more pinpointed, allowing retailers to target specific groups. Traditionally, retailers have used spread sheets to track promotions • QR codes, 49% and make calculations and decisions. But analytics software and oth- • Digital screens, 47% er tools are giving them better insights by cross-referencing historic, • Beacons, 15% demographic and other data from multiple sources. • Electronic shelf labeling, 13% More chains are also using promotions management software. In addition to integrating multiple functions across promotional stages, they make sure merchandising, advertising and other departments are Source: Forbes, “Closing the Loop, the Last 1,000 Feet of the Shopping Experience” on the same page when it comes to communication, implementation and strategic alignment. The 4 P’s In his classic 1960 book Basic Marketing: a Managerial Approach, E. Jerome McCarthy’s describes the four elementary pillars — or “4 P’s” — of successful marketing: product, price, placement and promotion. The book goes on to discuss analysis, consumer behavior, market research, market segmentation and planning. More than 50 years later, McCarthy’s 4 P’s are still the gold standard in marketing. What has changed is the retail landscape. In addition to the growth of mega retailers like Target and Walmart, today’s retail world is omnichannel and, on the demographics end, omni- 3 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT shopper in terms of lifestyles and ethnicities. Analytics help retailers implement the 4 P’s by factoring in target consumer data, timing, in-store placement, demand fluctuation and expected profits. Conducting snow blower demos in July, for example, probably would not work. “Predictive analytics help define the likelihood of specific outcomes,” said Omer Minkara, vice president/principal analyst, customer experience, Aberdeen. Retailers are also benefitting from wider availability of better, more Promotions are the life blood of retail. But most manage promotions in a very manual way through meetings and spread sheets rather than tools. affordable data. Five years ago, most data came from POS systems, loyalty cards and expensive outside sources like Nielsen and IRI. Today, lower priced information can be collected online. Credit companies have also improved data services. This has lowered the barriers to entry, allowing retailers large and small to make better promotional decisions. Honest Café, a new U.K.-based startup, wanted to learn more about its customers. Its coffee houses use vending machines to dispense natural and organic products in an upscale, Starbucks-style seating environment. While it had harnessed a good deal of data, it did not have an efficient way to study it. Using a cloud-based analytics service, it is crunching vending machine data to get a better picture of its “invisible” patrons. Now, Hon- DAVID NAUMAN, VICE PRESIDENT OF MARKETING, BOSTON RETAIL PARTNERS est Café can understand which customers sit and linger, which buy coffee and run, and how people pay during different parts of the day, said Mark Summerill, head of product development. Now, Honest Café can automatically offer relevant promotions and products to individuals. “We don’t have dedicated people and data is sometimes hard to pull together to form a picture,” he added. “As a startup, it’s crucial we know what sells and what areas we should push into.” Half Off or Health Fair? Analytics help retailers choose the most effective promotion type. While price promotions are most common, other strategies work well 4 RETAIL MARK GARLAND Executive Vice President Sales, Marketing & Solutions, 4R Winning retailers are taking advantage of analytics to figure out the lift they will get from a new promotion. However, few do a good job calculating the expected profitability of those promotions. INSIGHTS Analytic-Powered Promotions Q: What role does analytics play in promotion management today, and where does it fit in the future? MARK GARLAND: There are three ways analytics can be used in the promotion management process: 1. Determining the lift in demand that a promotion will create 2. Calculating the profitability of a promotion 3. Measuring the effectiveness of a promotion after the fact Today, winning retailers are taking advantage of analytics to figure out the lift they will get from a new promotion. However, few retailers do a good job calculating the expected profitability of those promotions, nor are they systematically evaluating the results of their promotions after the fact. Now is the time for retailers to step up in these areas if they want to understand the effectiveness of their promotion strategy. Q: What analytics are involved to create a new promotion? GARLAND: When a retailer devises a new promotional vehicle, they first must predict the impact it will have on the demand of the items involved. This requires the use of machine learning techniques combined with knowledge of halo effects, cannibalization, propensity for pulling demand forward, and other factors. The result is a “response model” that can be used to predict the change in demand that will occur whenever the promotion is offered. Retailers should then determine how profitable the promotion is — just because the promotion lifts demand for a given item doesn’t mean that, when all things are considered, it actually improves profitability. Q: What analytics are needed to predict the profitability of a new promotion? GARLAND: Once you have created a prediction model for a promotion, you can apply analytics to determine the increase in profitability it will generate. For brick-and-mortar promotions, this involves determining what store inventory levels will have to be to support the predicted demand increase, how much overhang will need to be burned off afterward, what other products may see a reduction or increase in demand, and other factors. The most precise analysis would involve a store-level SKU-simulation that compares the promotion scenario with a no-promotion scenario. The results of that simulation will show whether this promotion makes sense given the business goals. 4R Systems is a leading provider of advanced inventory and supply chain services, which help retailers gain significantly increased profits by optimizing their omniretail inventory and related supply chain decisions. Founded by supply chain experts from The Wharton School and Harvard Business School, 4R provides capabilities that profit optimize the matching of supply and demand. www.4rsystems.com Q: How can retailers measure promotion effectiveness? GARLAND: After a promotion has occurred, you can look back to see: 1. The prediction of demand lift accuracy 2. Additional inventory to put into stores and DCs 3. The net increase in profitability What you ultimately care about is the third item — profitability. At 4R, we recently saw an example of a “perfect storm” that illustrates how a promotion might look successful at first glance, but is actually a money-loser. An item was offered with a BuyOne-Get-One-Half-Off (BOGOHO) promotion, which is effectively a 25% discount on the price. It achieved a 60% increase in revenue, but the reduced price meant that the total margin dollars only increased about 6%. The retailer had to add inventory to support the promotion, some of which was left over and had to burn off over time, leading to higher carrying costs. To make matters worse, consumers that stocked up on the item during the sale delayed their return to the store, resulting in lower full-margin sales for several weeks post promotion. The net effect was fewer margin dollars and higher carrying costs — hardly what the retailer was looking for. Retailers no longer need to put profit at risk with each promotion. Both predictive analytics and prescriptive analytics can help retailers discover these situations and design more effective promotions that will reap more profit. RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT with particular products, environments and target customers. Retail pharmacies, for example, may conduct health fairs. Events can offer free information on diseases like diabetes or provide free blood pressure testing and screenings for other conditions. The goal is to attract more pharmacy customers, who usually shop other departments. Home centers generate sales and traffic with “how to” clinics on topics like lawn care or basic plumbing. In other channels, athlete and celebrity appearances can drive sales, as can in-store celebrations positioned around events like Black History Month. In mainstream specialty 1/3 Shoppers say they spend more when digital is part of the shopping process. Source: Deloitte, “Navigating the New Digital Divide” stores, celebrity chef demos can draw big “foodie” crowds who will buy almost any gadget or ingredient their “hero” recommends. To be truly effective, though, non-price promotions must be conducted regularly so retailers have enough historic customer data to make accurate measurements and predictions. Price promotions are usually backed by plenty of historical data. Still, retailers must come up with the right price, BOGO offer, etc. Pricing optimization tools can help determine the right promotional price based on projecting how much lift a promotion will provide (say, 300 items sold versus the usual 100) and other relevant factors. The “right price” is the one that will entice shoppers but not destroy margins. Earlier this year, arts and crafts retailer Michaels implemented an actionable analytics solution to improve pricing, promotions and markdown functions and avoid margin-gouging sales in stores and online. Chris Abell, vice president of pricing and promotion analytics, said software manages the entire process from analysis and planning through execution and measurement, which “can help implement more customer-centric campaigns across all channels.” Choosing the Right Promotional Vehicle Historically, there have been three basic choices to distribute promotions: print, TV and radio. Today, there are also many popular digital options. In fact, almost one in three shoppers say they spend more when digital is part of the shopping process, according to Deloitte’s 6 RETAIL DAN PAHOMI Vice President of New Business Initiatives, JustEnough A centralized system built specifically to address the complex requirements of promotions is key, as well as a new process. Automation without a better process will only allow retailers to be inefficient faster. JustEnough is a leading provider of omni-channel Demand Management solutions for retail, wholesale and direct-to-consumer businesses and is serving the planning needs of many of the world’s leading brands. Available OnSite and OnCloud, JustEnough’s innovative solutions help companies to forecast customer demand; plan assortments, allocations and inventory; shape demand with markdowns and promotions; turn customer data into actionable insights and then execute on those plans. To learn more, visit www.justenough.com or email [email protected]. INSIGHTS Centralized Promotions Management Q: How does a centralized promotional management system work and what are the biggest advantages to retailers in terms of cost, customer reach, time and other factors? DAN PAHOMI: Traditionally, promotions were planned by different teams depending on the channel. A retailer may have separate teams for stores, online, broadcast, mobile and social media. This can often lead to conflicting messages for the consumer and less than optimal results from the promotional campaign. As retailers have adapted to the changing landscape, they have discovered the need to centralize these activities to provide a consistent message. This can be across channels, geographies and internal departments. The foundation of this new process is having a centralized promotion planning and execution system, or a system of record for promotions. Many are trying to accomplish this thru existing systems such as the merchandising, ERP, or the pricing systems, but most still use Excel. These methods lack the sophisticated tools to be able to capture the detail needed for promotions. A centralized system built specifically to address the complex requirements of promotions is key, as well as a new process. Automation without a better process will only allow retailers to be inefficient faster. This new process needs to remove as many barriers as possible while enabling a much faster timeline from planning to execution. This allows retailers to get to market much faster, while reducing costs and errors. After they make it to market retailers can start producing more relevant and better targeted promotions, and have more accurate data to digest and analyze. Good analysis is very difficult to achieve from disparate data sources — having a centralized system is a crucial step. Q: Some retailers have moved away from loyalty cards as a means of consumer data collection in favor of other tools. What are some of the most successful tools and what is their role? PAHOMI: As loyalty programs expanded, their use has become less effective and lost their benefit as a differentiator between competing retailers. While some retailers have moved away from traditional loyalty cards, most have migrated to other ways of collecting data to better understand their customers. Besides traditional loyalty programs, there are multiple ways of collecting the necessary data to be able to analyze it. Most retailers employ more than one method. The most common is a virtual loyalty card. Credit bureaus (Experian, Acxiom, Epsilon) can do an “Append” to create a virtual loyalty card using credit-card data. This has a fairly high hit rate, but even rates as low as 20% can provide significant benefits. Other methods include e-mail sign-up, installing a mobile app, and social media. For example, when consumers follow a retailer on Facebook, that retailer can mine significant data about its followers, which contains rich attributes not found in other channels. Q: Over the past few years retailers have gotten very excited about reaching consumers through social media. Have results meet expectations? PAHOMI: As social media has matured as an interaction medium, retailers have also matured in how they use it. Initially, the prospect of targeting promotions on Facebook down to the individual consumer, created a lot of excitement. However, in practice, this proved to be too much work and not a lot of ROI. The consumers are not as responsive as previously thought. These efforts have also been challenging due to the prevalent introduction of ad blockers. Facebook is great as a delivery mechanism to a large audience and for brand awareness, but not extremely effective for individual promotional campaigns. RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT “Navigating the New Digital Divide” report that surveyed 3,000 U.S. consumers. Digital promotions range from social media tie-ins and e-mail campaigns to personalized strategies targeting individuals or small groups. The challenge is finding the vehicle and promotional medium that best reaches the target customer. Mobile apps are among the most popular vehicles, with 64% of retailers using them, said a Forbes study titled, “Closing the Loop, the Last 1,000 Feet of the Shopping Experience.” They are followed by e-commerce sites 430% Redemption rate Lowes Foods has enjoyed since launching mobileenabled e-circulars in April 2016. (60%), QR codes (49%) and digital screen messaging (47%). Towards the bottom of the Forbes list (13%) is a comparatively new technology called electronic shelf labels (ESL). ESL’s let retailers change prices as often as desired with little effort, eliminating gummy tape and the need (and cost) of paper and labor. Given that large stores average 5,000 to 6,000 price changes monthly, the time savings can be monumental, said a Bloomberg.com article titled, “Amazon Showrooming Forces Stores to Go Digital on Price Displays.” ESLs can integrate directly into POS systems and other data sources. Advanced systems give visibility to stored data that only associates can access, such as inventory levels. However, the cost is steep. Displays cost just $5 each. But most big box chains carry thousands of SKUs, putting total cost per store in the six digits. But according to the Bloomberg article, suppliers contend that ESL’s recoup costs in 12 to 18 months. Among U.S. retailers, Kohl’s is probably been the most prolific and highest profile user of ESL’s. It began implementing them in 2012, and over the past four years they have been added to all 1,164 U.S. locations. Kohl’s is on the record saying the labor savings has reduced payroll costs and increased margins. Getting Personal with Promotions Across all digital platforms, personalized promotions are growing. These can include e-mail or mobile offers along with promotions tied to social media sites or retailers’ e-commerce platforms. Thirty-nine 8 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT percent of shoppers report spending more when receiving a personalized coupon, promotion or recommendation, according to Deloitte’s “Navigating the New Digital Divide.” Lindt Chocolate is conducting personalized, seasonal promotions around holidays via a cloud-based web store. Using micro sites, holiday promotions and campaigns distribute various targeted offerings. “We move quickly between holidays, so we must respond with seasonal promotions just as rapidly and deliver a premium experience,” said Thomas Linemayr, president and CEO, Lindt & Sprungli USA. “The site allows 39% us to engage with customers in meaningful, thoughtful ways and understand behavior.” Within a few months of implementation, Lindt had more than doubled conversion rates and tripled revenue on mobile devices. “We performed beyond expectations,” said Linemayr. “Conversions were up, traffic and Shoppers report spending more when they receive a personalized coupon, promotion or recommendation. Source: Deloitte, “Navigating the New Digital Divide” basket sizes were higher.” Lowes Foods launched mobile-enabled e-circulars in April 2016, and in November, it reported coupon redemption rates had increased 430%. E-circulars provide shopper-specific marketing based on individual preferences. The one-to-one omnichannel e-circular is integrated with Lowes’ loyalty program, and displays the most relevant deals according to individual purchase history. The solution tracks conversions from online views to in-store purchases, allowing true measurement of the e-circular for the first time. Traditional online circulars do not have these capabilities. The e-circular also allows shoppers to see how much they will save as they build shopping lists. “We implemented this experience as part of ongoing efforts to provide the best possible customer experience and are thrilled guests are embracing this so quickly,” said Klaus Werner, SVP and CIO of Alex Lee, Lowes’ parent company. “It’s clear this was a missing piece and we’re thrilled to be the first grocer to offer this capability.” Lowes operates 100 locations in Virginia and the Carolinas. 9 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT Location-Based Promotions Another key technology retailers are using to manage their promotions is beacons, which were introduced just over two years ago. A shopper who has opted-in to the service and enters a store or approaches a particular display can receive relevant push notifications and promotions sent directly to their mobile device. Beacons can tell the customer what prod- 400 MILLION Beacons expected to be deployed by 2020. Source: ABI Research ucts to find in specific areas. Or, if the shopper enters a particular section, the technology can send out a coupon or offer for a specific brand. Despite the obvious benefits of the technology, just 13% of retailers are currently using beacons, according to Forbes’ “Closing the Loop, the Last 1,000 Feet of the Shopping Experience” report. Yet, ABI Research predicts that 400 million beacons will be deployed by 2020. Many of the retailers currently using beacons are outside the U.S. In fact, just 10 of the 25 retailers cited in beaconstac.com’s “Retailers Nailing it with their Proximity Marketing Campaigns” article are U.S.based. They include Rite Aid, Target, Urban Outfitters, American Eagle Outfitters, Lord & Taylor, Neiman Marcus, Best Buy, Walmart, Kenneth Cole and Nordstrom. One of the more interesting beacon deployments comes from Nordstrom, which is using beacons to enhance the omnichannel experience. A beacon-enabled app notifies shoppers if any products in their digital shopping cart are in stock as they pass a location which has a beacon installed by the door. Another bricks/clicks beacon application involves digital food brand Allrecipes and Ohio-based Marc’s grocery stores. Using the Allrecipes Dinner Spinner app, Allrecipes provides shoppers with personalized meal recommendations. Hyper-local, beacon-triggered notifications are delivered to app users on their smartphones upon entering a Marc’s stores. Heightened relevancy to shoppers is further dictated by weather and season. “This collaborative effort brings together meal solutions, the grocery experience, and digital to the forefront of customers’ experience,” said Day Armelli, marketing director for the 58-store chain. “This will open up additional doors that allow us to deliver greater 10 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT value to customers by helping them make the most out of their shopping experience.” Putting Promotions Management Software to Work Cutting-edge retailers are implementing next-gen promotions management software to improve both operations and sales. The technology integrates and cross-references pretty much everything involved in the promotions process including promotions history across channels. And, it centralizes and coordinates strategies across multiple teams and departments, including print, advertising, pricing, operations, plan-o-gramming, social media and visual merchandising. It can also encompass promotion and price optimization tools. “There’s greater 96% emphasis on integration, with best-in-class retailers integrating all Consumers that use coupons. tracked and monitored across channels, regions, departments or in- systems,” said Aberdeen’s Minkara. Information pertaining to visual layouts, content, history and other factors can be quickly reused. Simultaneous promotions can be run, dividual stores. This is not the case with ERP systems, which handle a limited number of promotions — with the rest processed manually. Source: RetailMeNot, “The State of Coupons and the Role of Mobile” U.K.-based drug chain Holland & Barrett runs multiple promotions on its 3,000 SKUs, including short-term online events, flash sales and in-store penny sales. It also offers discount coupons in its Healthy magazine. Since stores are in four European countries, promotions are uniform, and managing them all required 45 spreadsheets. In October 2015, H&B installed a promotions management system that, in addition to saving time, can instantly create analytical reports to evaluate promotional success. A forecasting function takes into account in-store product availability and the sales history of previous, similar promotions. “Promotions are the lifeblood of Holland & Barrett’s and 60% of sales come from these campaigns,” said Ray Aldis, director of projects. “We’ve been impressed by the solution’s ability to help us decide which product should be promoted, where they should be displayed 11 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT and how to optimize signage and advertising.” Promotions management software also benefits retailers selling across multiple channels, which can include more than just store locations and digital. U.K.-based pet specialty retailer Pets at Home operates grooming and veterinary channels. By replacing manual functions with promotions management software, it can manage promotions across the enterprise, said Dan Harvey, the retailer’s SAP program director. And, it provides a single system of record and manages vendor funds, rebates, deals, offers and promotions execution best practices. Despite promotions management software’s benefits, only 35% of 60% Sales derived from promotions at Holland & Barrett. retailers use it, stated a 2016 report from Martex titled, “State of the Retail Supply Chain.” Consequently, they spend an average of 79 minutes preparing a standard report and 110 minutes preparing an ad hoc report. Sixty-four percent of retailers cite promotions management as a major challenge. “Promotions are the life blood of retail,” said David Nauman, vice president of marketing at Boston Retail Partners. “But most manage promotions in a very manual way through meetings and spread sheets rather than tools.” Using promotions management tools requires tight inventory management. “You have to plan and execute demand,” said Aberdeen’s Minkara. “If you don’t, you may be promoting products you don’t have. There’s nothing more frustrating to consumers than to learn products aren’t there.” While there are tools to manage inventory, they only truly work if a retailer has end-to-end supply chain visibility across channels, which many do not. “You must understand what items are in stores in different regions and track them,” said Minkara. “As they’re sold, they’re deducted from inventory on a real-time basis. There’s more opportunity for retailers, but only for those that integrate systems. With new [digital] channels, many retailers are struggling with integration.” 12 RETAIL DRIVING REVENUE AND INCREASED ENGAGEMENT WITH ADVANCED PROMOTIONS MANAGEMENT Conclusion Many retailers are not meticulously calculating expected outcomes when staging promotions, instead relying on spread sheets and other manual tools. The emergence of mega chains and digital channels, along with diversifying demographics, has highlighted the need for more sophisticated monitoring and execution. 35% Retailers that have deployed promotions management software. Through logistics and the availability of cheaper, more abundant data, retailers can successfully choose the timing, type and preferred media vehicle for a promotion. Depending on product and audience, the latter can include everything from personalized smartphone promotions to celebrity cooking demos. About a third of retailers have installed advanced promotions management systems that automate planning, execution and analysis. By linking all departments, activities and channels, these best-in-class companies can increase productivity and collaboration and maintain their competitive edge in today’s rapidly evolving retail universe. Source: Martex, “State of the Retail Supply Chain” 13 RIS INFOGRAPHIC PROMOTIONS MANAGEMENT In-Store Digital Technologies Used by U.S. Retailers • Mobile apps, 64% • QR codes, 49% 1/3 Shoppers say they spend more when digital is part of the shopping process. • Digital screens, 47% • Beacons, 15% • Electronic shelf labeling, 13% Source: Forbes, “Closing the Loop, the Last 1,000 Feet of the Shopping Experience” 400 MILLION Beacons expected to be deployed by 2020. Source: Deloitte, “Navigating the New Digital Divide” Promotions are the life blood of retail. But most manage promotions in a very manual way through meetings and spread sheets rather than tools. Source: ABI Research DAVID NAUMAN, VICE PRESIDENT OF MARKETING, BOSTON RETAIL PARTNERS 60% Sales derived from promotions at Holland & Barrett. 35% Retailers that have deployed promotions management software. Source: Martex, “State of the Retail Supply Chain” 39% Shoppers report spending more when they receive a personalized coupon, promotion or recommendation. Source: Deloitte, “Navigating the New Digital Divide” 96% Consumers that use coupons. Source: RetailMeNot, “The State of Coupons and the Role of Mobile” 430% Redemption rate Lowes Foods has enjoyed since launching mobile-enabled e-circulars in April 2016.