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WHITE PAPER7 ways to transform your retail organization with mobileCreate efficiencies throughout stores, HQ, and supply chains
Copyright InformationAll Contents Copyright 2016 MicroStrategy Incorporated. All Rights Reserved.Trademark InformationMicroStrategy, MicroStrategy 6, MicroStrategy 7, MicroStrategy 7i, MicroStrategy 7i Evaluation Edition, MicroStrategy 7i Olap Services, MicroStrategy 8, MicroStrategy 9, MicroStrategyDistribution Services, MicroStrategy MultiSource Option, MicroStrategy Command Manager, MicroStrategy Enterprise Manager, MicroStrategy Object Manager, MicroStrategy ReportingSuite, MicroStrategy Power User, MicroStrategy Analyst, MicroStrategy Consumer, MicroStrategy Email Delivery, MicroStrategy BI Author, MicroStrategy BI Modeler, MicroStrategy EvaluationEdition, MicroStrategy Administrator, MicroStrategy Agent, MicroStrategy Architect, MicroStrategy BI Developer Kit, MicroStrategy Broadcast Server, MicroStrategy Broadcaster, MicroStrategyBroadcaster Server, MicroStrategy Business Intelligence Platform, MicroStrategy Consulting, MicroStrategy CRM Applications, MicroStrategy Customer Analyzer, MicroStrategy Desktop,MicroStrategy Desktop Analyst, MicroStrategy Desktop Designer, MicroStrategy eCRM 7, MicroStrategy Education, MicroStrategy eTrainer, MicroStrategy Executive, MicroStrategy Infocenter,MicroStrategy Intelligence Server, MicroStrategy Intelligence Server Universal Edition, MicroStrategy MDX Adapter, MicroStrategy Narrowcast Server, MicroStrategy Objects, MicroStrategyOLAP Provider, MicroStrategy SDK, MicroStrategy Support, MicroStrategy Telecaster, MicroStrategy Transactor, MicroStrategy Web, MicroStrategy Web Business Analyzer, MicroStrategyWorld, Application Development and Sophisticated Analysis, Best In Business Intelligence, Centralized Application Management, Information Like Water, Intelligence Through Every Phone,Intelligence To Every Decision Maker, Intelligent E-Business, Personalized Intelligence Portal, Query Tone, Rapid Application Development, MicroStrategy Intelligent Cubes, The FoundationFor Intelligent E-Business, The Integrated Business Intelligence Platform Built For The Enterprise, The Platform For Intelligent E-Business, The Scalable Business Intelligence Platform BuiltFor The Internet, Office Intelligence, MicroStrategy Office, MicroStrategy Report Services, MicroStrategy Web MMT, MicroStrategy Web Services, Pixel Perfect, Pixel-Perfect, MicroStrategyMobile, MicroStrategy Integrity Manager and MicroStrategy Data Mining Services are all registered trademarks or trademarks of MicroStrategy Incorporated.All other company and product names may be trademarks of the respective companies with which they are associated. Specifications subject to change without notice.MicroStrategy is not responsible for errors or omissions. MicroStrategy makes no warranties or commitments concerning the availability of future products or versions that maybe planned or under development.Patent InformationThis product is patented. One or more of the following patents may apply to the product sold herein: U.S. Patent Nos. 6,154,766, 6,173,310, 6,260,050, 6,263,051, 6,269,393, 6,279,033,6,567,796, 6,587,547, 6,606,596, 6,658,093, 6,658,432, 6,662,195, 6,671,715, 6,691,100, 6,694,316, 6,697,808, 6,704,723, 6,741,980, 6,765,997, 6,768,788, 6,772,137, 6,788,768, 6,798,867, 6,801,910,6,820,073, 6,829,334, 6,836,537, 6,850,603, 6,859,798, 6,873,693, 6,885,734, 6,940,953, 6,964,012, 6,977,992, 6,996,568, 6,996,569, 7,003,512, 7,010,518, 7,016,480, 7,020,251, 7,039,165, 7,082,422,7,113,993, 7,127,403, 7,174,349, 7,181,417, 7,194,457, 7,197,461, 7,228,303, 7,260,577, 7,266,181, 7,272,212, 7,302,639, 7,324,942, 7,330,847, 7,340,040, 7,356,758, 7,356,840, 7,415,438, 7,428,302,7,430,562, 7,440,898, 7,486,780, 7,509,671, 7,516,181, 7,559,048, 7,574,376, 7,617,201, 7,725,811, 7,801,967, 7,836,178, 7,861,161, 7,861,253, 7,881,443, 7,925,616, 7,945,584, 7,970,782, 8,005,870,8,051,168, 8,051,369, 8,094,788, 8,130,918 and 8,296,287. Other patent applications are pending.
WHITE PAPER7 ways to transform your retail organization with mobileCreate efficiencies throughout stores, HQ, and supply chainsMobile technology is the link that delivers real-time,This white paper outlines seven ways mobile can be featured asuser-friendly and unified information across every retailthe centerpiece of a unified commerce strategy and deliver theorganization. With the right mobile solutions in place, retailersfollowing benefits:can provide the personalized experience today’s shoppers Significantly higher sales revenuedesire while improving organizational efficiencies. The results?Higher revenue and lower costs across the organization.All types of companies can realize savings from the use ofmobile apps — the savings might be more than you’d think.For example, a large home improvement retailer recently Improved business user experiences across the enterprise Real-time data that can be used to create actionable strategies Increased efficiencies across stores, HQ and the entire supply chain Enhanced customer shopping experiencereported 4.5 million in annual savings.Smart retailers already realize the potential of updated mobile1. Optimize store operationsstrategies. As many as 68% of the most successful retailersHelp for: store managers, store associatesdescribe “deeper customer engagement to drive sales throughRetail applications: Store Operations, Clienteling, Sales Productivitypersonalized offers” as just one of the opportunities offered byThe store is still the centerpiece of retail activity, but it must bea mobile strategy.*transformed to perform in the long term. Mobile applicationscan help all store stakeholders deliver the experience today’sMobile apps can deliversignificant ROI for retail brands: 4.5M annual savings due to storemanager productivity gains 17% time savings for store managers 38% boost in product sales 56% increase in transaction size 60% increase in productivity ofstore auditors- Source: MicroStrategydigitally savvy shoppers demand. The following are threeexamples of mobile apps in action.Keep store managers on the sales floorWhen store managers can get out from behind the computerin the back office and onto the store floor equipped witha mobile app, they can maximize the effectiveness of instore promotions, monitor out-of-stocks, manage storeassociate productivity and scheduling, and access realtime product and sales information. By providing themwith seamless in-app access to all of their information andsystems needs, store managers are empowered to focus ondriving sales, coaching associates and serving customers.*Mobile In Retail: The New Normal, Retail Systems Research, March 31, 2016microstrategy.com 1
WHITE PAPERCase study: Lowe’sCase study: The Container StoreiPad12:30 PM100%Problem: Lowe’s store managers were spending an inordinateamount of time off the sales floor, in the back room, handwriting sales figures — every single day. As a result, productivity,Problem: The Container Store wanted to improve its storesales and revenue were suffering.reporting capabilities, shifting from email and Excel-basedSolution: By implementing the “mobileDart” app fromMicroStrategy, 20,000 managers, assistant managers and othercorporate employees were able to access store-based sales datareporting to a nimbler, mobile system. The retailer had identified“gaps in store reporting” as the greatest opportunity forimprovement and innovation.via mobile devices in real time. Teams in different locations canSolution: The Container Store brought all key stakeholdersnow work together to analyze sales statistics. They’re out of thetogether to conceptualize a new mobile app and create aback room and untethered from static workstations.development roadmap. With the overall concepts in place, theResults: The new mobile BI initiative has been a win-win forLowe’s, resulting in: 4.5 million savings across 1,700 stores due tostore manager productivity gains better visibility into best-selling items, out-ofstocks, and slow sellers that need to be discounted workforce flexibility, allowing managers tospend more time interacting with associatesand shoppers and to better allocate talentretailer implemented “The Score” app, the naming conventionoriginating from its motto, “There is no way your team can winthe game unless everyone on their team knows the score.” Thisuser-friendly app contains 14 dashboards and provides storeleadership teams with information related to sales and payroll.Benefits: With the new mobile app in place, The ContainerStore is able to share payroll information across business unitsand optimize employee schedules based on current trendsand predictive analysis. With the ability to compare sales perpayroll hour to customer-facing payroll per hour, managers canformulate more efficient staffing plans. Store leadership teamsmicrostrategy.com 2
WHITE PAPERare now more productive, make better decisions and spendSolution: With a new Clienteling app in place, GUESS?more time on the sales floor.employees have a 360-degree view of the customer at theirfingertips. Now, when interacting with shoppers, store associatesHelp store associates improve the customercan share information on loyalty points, new products,experience with clientelingpromotions and more. They can even use the app to messageWith mobile solutions in hand, store associates can improve theshoppers about specific products that might interest them.one-on-one customer relationship by sharing the latest productBenefits: By viewing customer data in real time, store associatesinformation, offering upsell and cross-sell opportunities, andcan better target customers with relevant recommendations andpersonalizing the shopping experience with unique promotionsinformation, resulting in a higher conversion rate. Associates alsoand offers.have endless aisle access, enabling them to share cross-channelproduct information to convert shoppers from single-channelOnly 29% of consumersreport that sales associates areknowledgeable and helpful.- Real-Time Data Drives the Future of Retail,Forrester, January 2016customers to omnichannel brand advocates.Boost sales productivityApps provide store managers and associates with instant accessto training materials, product information and sales performancedata. They can view sales tips and merchandising best practices,and monitor sales effectiveness at the store and employeelevels. Gamification strategies provide incentives and boost salesCase study: GUESS?performance levels as well.Case study: Sonic AutomotiveiPad12:30 PM100%Problem: With 1,600 stores in 95 countries, and four different brandconcepts, GUESS? is constantly striving to impart the best customerProblem: With 105 stores and franchises in 26 U.S. markets,insights to its large and diverse workforce. Until recently, the retailerSonic Automotive was challenged with consolidating financialhad only four people accessing loyalty data on 10 million customers.and customer data in a user-friendly way to help employeesThen the company’s executives asked themselves, “What if we unlockimprove productivity and efficiency. Specifically, the automotive[the data] and give it to thousands of store associates?”retailer was struggling with handling large amounts of data anddisplaying that data to make it usable for all employees.microstrategy.com 3
WHITE PAPERSolution: Sonic partnered with MicroStrategy to developKey benefits of adding the Store Inspection app include the following:a mobile app that delivers an overarching view of business eliminate pre-inspection spreadsheet prepperformance touching on internal sales, services, finance andinsurance as well as external market data. Sonic corporateexecutives and regional leadership rely on this mobile appdaily to evaluate sales performance at its 100 dealerships, increase audit efficiency share results quickly with all stakeholders improve follow-up capabilitiesconduct monthly financial reviews and compare performanceof the other dealerships across regions. This app also providesa scorecard for each dealership with insight into saleseffectiveness across automotive brands, product categoriesand geographic regions. It incorporates gamification for salesassociates to gauge where they stack up compared to theirProductivity of the store auditorsincreased 60% with the MicroStrategyStore Inspector mobile app at alarge, fast casual restaurant chain.peers. Dealership managers also are able to evaluate theircompliance with corporate playbooks using this app.Benefits: Sonic has replaced large binders of spreadsheetsand saved significant time by eliminating the need to performmanual analysis. Car product sales have increased by 38%, and3. Give headquarters the powerto make data-driven decisionsSonic has gone from selling between 800 and 900 in productsHelp for: C-level and line-of-business executivesper car to nearly 1,100.Retail applications: Customer Insight Analysis, Financial AnalysisExecutives need to be able to access vital business information2. Streamline store inspectionsHelp for: Store auditors, store managersRetail applications: Store Inspectorwherever they are to make critical, data-driven businessdecisions at a moment’s notice. Shoppers will not wait foryou to collect different data sets, analyze spreadsheets, emailinformation to business leaders and then eventually meetUsing mobile apps, store auditors can collect and submit up-todate data in real time from inside the store. Auditors can shareinspection results with store managers on site and attach photosto discuss a go-forward plan. They will quickly move on to acompetitive brand. These decisions must be made quickly usingactionable data to avoid losing customers.to the app report to highlight best practices or identify issues.With a unified platform that connects business users via mobileHighlights of the Store Inspector app include the ability to:apps, vital BI data and analytical information is accessible to all log results on mobile app in real timedecision-makers when and where they need it. Now they can use geo-location to identify stores for inspectioncombine all the resources and capabilities they need: customer submit ratings for categories including associate friendliness,analytics, transactions, multimedia, collaboration and security —store cleanliness, product presentation, and moredelivered together via a unified mobile platform. input notes related to inspectionsTwo primary apps can help C-level and line-of-business access past inspection history and compare storeexecutives derive business value from actionable, real-time data:performances against othersmicrostrategy.com 4
WHITE PAPERCustomer insight analysisCustomer insight analysis can streamline total strategy decisionsaround customer segmentation, targeted promotions, and overallbusiness planning and operations. Executives can access currentpromotional campaign performance to change the directionSolution: Coach worked with MicroStrategy to develop reusablereporting templates and deployed a mobile app to its executivesin place of large binders of paper. Used within a unified BIplatform, the app is helping the retailer obtain a more holisticview of the business.of a strategy quickly. This capability gives retailers the ability toBenefits: By moving manual processes to mobile apps, themaximize overall campaign effectiveness and overall profitability.leather and accessories brand is now able to test and launch newstrategies to become more relevant to a core and expandingFinancial analysisconsumer base. Executives are able to immediately find answersFinancial analysis applications streamline reporting processesto their questions, and business meetings are more productive.and analyze performance data to improve the profitabilityof merchandise, customers and operations. Now high-levelstakeholders can easily identify opportunities and challenges tomake timely, effective business decisions. For additional context,the mobile app can offer easy access to relevant financialdocuments and company news, as well as competitive andmarket information.4. Arm merchandising with real-time dataHelp for: Planners, buyers, replenishers, allocatorsRetail applications: Merchandising Optimization, PromotionalAnalysis and PlanningCollaboration is key when it comes to building better businesspractices across the organization. Buyers, planners and otherCase study: Coachkey decision-makers need access to vital, real-time data whilein meetings, when traveling to stores, and working off-site withvendors and other partners. Mobile provides that vital link.Merchandising analyticsMerchandising analytics help all users make better, fasterdecisions related to product assortments, inventorymanagement, promotions and planogram optimization.Exception-based app reporting supplies buyers with earlyvisibility to issues so they can immediately modify futureproduct orders, adjust pricing plans and negotiate vendorreturns. Comprehensive, visually appealing dashboards make iteasy for buyers to understand how various promotions, brandsand business categories are performing. Buyers can quicklymake the necessary strategy adjustments from their apps,leading to better category management, increased customersatisfaction and improved profitability.Problem: Stuck in an outdated, manual system of collecting andanalyzing data, Coach was unable to identify loyal customers,analyze shopping behavior and adjust promotional capabilitiesin an effective manner.microstrategy.com 5
WHITE PAPER 1.1trillionis the global overstock andout-of-stock cost for retailers.- We Lost Australia! Retail’s 1.1 Trillion InventoryDistortion Problem, IHL Group, 2015user-friendly visual cues on a weekly, monthly and yearly basis— covering the overall business down to the individual stores.Merchants can take a virtual tour of individual stores before avisit, prepping for discussions on the right product mix, salesstrategies and promotional plans. They also can pull up historicaldata on sales trends to compare the performance of a currentstyle to one sold in the past.5. Improve vendor relations and performanceHelp for: Supplier partners and merchanising departmentsCase study: GUESS?Retail applications: Vendor PortalWhen vendors can benchmark their performance against that oftheir peers, they are more motivated to improve service, containcosts and boost supply chain efficiencies. The vendor portaloffers timely performance data that can improve retailer-vendorcollaboration and overall business performance. This includesproduct delivery, merchandising and promotions.Retailer-supplier relationships can be tenuous. In the past,many retailers have been reluctant to share vital sales andinventory data with vendors, but today more are realizing thevalue in collaborating to improve overall business outcomes.With a mobile-optimized vendor portal app, the process can beProblem: GUESS? needed a way to bring a diverse set ofseamless, and both parties can be assured that they’re accessingthe same up-to-date data.decision-makers together to analyze sales performance andbetter manage merchandising categories. As a team, as well asin their individual roles, their design-oriented employees werelooking for a user-friendly, visual way to stay connected to thebusiness and assess strategies.Solution: A new iPad app aligned executives, regional directors,visual merchandisers, designers, buyers and planners tocollaborate on trends and pain points. With 13 dashboards attheir disposal in one app, the team can compare region-byregion performance and agree on improvements to build salesgrowth across the brand.Benefits: Depending on their roles and responsibilities,44% of retailersbelieve that bettercollaboration with suppliersis a top-three issue in theareas of supply chain planningand execution.- State of the Retail Supply Chain 2016,Martec Internationalexecutives can view a
Retail applications: Store Operations, Clienteling, Sales Productivity The store is still the centerpiece of retail activity, but it must be transformed to perform in the long term. . They can view sales tips and merchandising best practices, and monitor sales effectiveness at the store
