For instance, a family of four can be alerted to different show times, special enclosures and souvenir stores based on their known preferences or general profile. Mehta shared with Computerworld Singapore the presence and location technology landscape of the region.
1) Retailers in the region can be very cost conscious and slow in adopting technology. What is your go-to-market strategy then?
In the last two years, we are seeing retailers assessing the adoption of technology against its impact on business. Technology valuations are also being based on return on investment (ROI) rather than capital expenditure.
Put simply, it is all about the business case and that is how it should be. Our go-to-market strategy is thus aligned with our customers - we must have business impact with a fair ROI.
Organisations do not have the time or expertise to experiment with conceptual solutions of the future. At Motorola Solutions, we do an incredible amount of internal analysis, leveraging our domain knowledge, before speaking to some of our customers and developing a POC (proof of concept) with them.
The retail industry is an incredibly competitive environment. The market forces are driving the need for differentiation among retailers, and this can only be delivered through innovation.
How does one differentiate a pair of jeans? We all understand the generic segmentation of premium, mid and value-driven brands and consumers. How then do you differentiate within these sub segments given that there are a host of options available to the consumer simultaneously, even for seemingly similar items?
Our view is that differentiation is driven by increased interaction with the end-user and an intimate understanding of their preferences. The data collection, analytics and alerts prompted to achieve this have an endless number of permutations that simply cannot be done manually.
2) Some of the retailers seem to have the oldest systems around. How can your systems work together with legacy platforms?
Integration with legacy systems is not an issue for most of our solutions. Motorola Solutions' Proximity Awareness and Analytics can work with the customer's existing Wireless Local Area Network platform.
This solution enables retailers to detect, analyse and act on location information from a wi-fi device, all using their existing wi-fi network. We use the information collected by the customer's existing infrastructure, in conjunction with information collected from Motorola Solutions' infrastructure, to detect customer proximity and calculate accurate location co-ordinates. We can then feed this information back into the customer's CRM system for the retailer to take action.
3) What are the pain points that CIOs need to be aware of when they implement sensors and location-based tools in their IT environment?
The pain points are not in the implementation, but in managing expectations. Additionally, organisations must realise that the success of the solution rests on a clear definition of objectives and workflow.
One foreseeable challenge is how to drive customer adoption of the solution on their smartphones and tablets. Marketing will be an important function to drive this. Early adopters should also consider customer education as part of their launch, to help shorten the adoption curve.
4) What are the benefits of using presence sensing and location-based tools in retail?
Fundamentally, presence sensing and location-based services are focused on creating a context for the consumer. In today's world, where the customer is inundated with mass marketing, smartphones provide the ideal platform to connect in a personal way.
With the Proximity & Analytics solution, we can identify the device owner and location, and provide the necessary platform for retailers to act upon this information. The action could be a personalised greeting to a high-value consumer, or sending a discount coupon to price-conscious ones. This strategy of delivering personalised marketing improves conversions, builds customer loyalty and eventually increases the customer lifetime value.
5) What type of customers will this functionality be most suitable for?
In the early stages of adoption, we see this solution being applicable to larger scale retail stores such as the hypermarket and large malls.
We also expect early adopters among vendors in fast-moving consumer goods (FMCG) segment given that they have been among the most active and savvy in terms of in-store POP (point-of-purchase) tactics. Presence sensing and location-based tools will give these retailers even more control over the consumer purchasing habits, allowing them to eventually influence purchasing decisions.
6) What are the latest trends in retail that support the move to proximity awareness and analysis?
Presence sensing and analytics comes more into focus as demonstrated in a report by publication Chainstoreage.com indicating that shoppers who used a mobile device in-store are six percent more likely to make an in-store purchase.
Retailers who employ a Proximity Awareness and Analytics solution leverage this surge in mobile devices by identifying customers and using rule-based push notifications such as personalised greeting messages and coupons. Such personalised service would lead to positive interaction and stimulation for the consumer, and ultimately, for the retailer, a positive purchasing decision.
As competition for customer spending intensifies, retailers should look at strategies to attract, retain and increase customer conversion. Analytics solutions can help retailers formulate the right loyalty-based programme designed to enhance customer lifetime value.
7) What are the boundaries retailers should be aware off when collecting shoppers' data?
This depends on the privacy regulations in each country. We provide the tools to collect, analyse and action the data collected from shoppers. As with any business strategy, retailers must conduct due diligence to mitigate potential risks.