Traditional bricks-and-mortar stores are still the primary way people acquire merchandise. As physical retailers’ extension into a multi-channel world grows – along with consumers’ expectations – the pressure on retail stores to be the heartbeat of an all-channel customer experience has never been greater. Making the most of every dollar invested in labor is critical to ensuring optimal service levels, timely task execution, maximum revenue and loyalty-building store visits. In this presentation, Dave Bruno, Director of Commerce Studies for RedPrairie, explores the latest research into the challenges facing modern retail workforce managers and discusses modern techniques that many leading companies leverage to engage, empower and mobilize their workforce to deliver optimal all-channel store experiences.

1. Stores Under Siege
Balancing Costs, Service, and Execution
in a Low-Growth, All-Channel Market
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2. #CommerceInMotion
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3. Stores Under Siege
The Pressures Have Never Been Greater
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4. US Retailers Have Closed
5,299
Stores a Year Since 2001
*Excess Space Retail Services
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5. Analysts forecast a
2.2%
Decline in store traffic
during 2011 holiday season
*ShopperTrac
Foot Traffic is Falling
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6. 25.60%
Increased
46.20%
Remained Flat
28.20%
Decreased
2011 Labor Budget Changes
*Integrated Solutions for Retailers
Payroll Keeps Tightening
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7. 75%-110%
Retail Turnover Every Year
Source: NRF
Turnover is Constant
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8. All-Channel Shoppers Emerge
New Devices, New Networks, New Channels,
New Opportunities
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10. Share of Wallet Continues to Shift
to Digital Channels
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11. Social, Mobile, Local Shoppers
Are Everywhere
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12. m-Commerce: Relentless Growth
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13. s-Commerce: Explosive Growth Looms
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14. t-Commerce: Compelling Early Numbers
the average iPad conversion rate is
7x iPad shoppers purchase
that of smartphone devices
*Shopatron
Dual owners buy on mobile twice
as often as single owners.
“Duals” made >20 mobile
purchases in the last year.
50%
more than traditional web users
*Shopatron
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15. The Good News?
More Channels = More Success
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16. 74% of Retail Winners
enable store-level pick, pack, and pay
processes for non-store customer orders
Source: RSR Research
Competitive Pressures
Are Rising
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17. More and More Retailers Are
Taking A Shot…
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18. New Channels, New Challenges
Evolving Service, Fulfillment, and Promotion
Execution Pressures Increase the Strain on Stores
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19. So Far, Experiences Are Mixed
Only
33% of shoppers refuse to pick up orders
in store because of long wait times
and bad experiences
*Compete Retail Survey 2011
50%
of winners have effectively
integrated new
cross-channel processes
*RSR Research
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20. 83% of Retail Winners
are struggling to effectively control
labor costs while integrating new cross-
channel strategies into the store
Source: RSR Research
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21. 40% of coupon enthusiasts
have household income over
$70K *Neilsen
84%
of US consumers plan to use mobile shopping
apps to help save money on holiday gifts
Source: Experian
62%
rarely pay full price for clothing
Source: Mintel
Pricing Pandemonium
Puts a Premium on Service
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22. 55%
of retail associates indicated that
shoppers were better connected
to product information than
in-store associates
*Motorola Shopper Survey 2011
Service is Slipping
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23. 28%
of store visits end with an average of
$132
unspent
Deal-habituated behavior
Smartphones influence
Out-of-stocks
39%of all walk-outs
*Motorola
Limited store associate assistance
Long check-out processes
*Motorola Shopper Survey 2011
Conversions Are Declining
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24. The Bottom
Line…
55% of retailers cite
“Changing Customer Expectations”
as the top pressure driving
Workforce Management efforts
*Aberdeen Group 2011
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25. Fighting Back…
Four Keys to Better Experiences, More Cost
Effective Execution, Higher Conversions
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26. 1
Better Forecasting = Better Experiences
Matching Staff to Only…
Total Demand 21%
of retailers employ
forecasting software
*Aberdeen
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27. 1. Account for unique demand patterns
inside – and outside the store
2. Incorporate promotion plans
3. Forecast in multiple dimensions
4. Smooth demand aberrations
5. Embrace dynamic modeling
6. Incorporate non-sales demand data
Steps to Matching Staff to Demand
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28. Better Forecasts Deliver
Better Experiences
Service and Fulfillment
Schedules and Skills Capacity Increases
Are Better Aligned During Peaks
Events are Auto- to Demand
Detected Across
Channels
64%
Seasonality
and Non-Store Demand
is Anticipated
Better Data,
Science Integrated
into Forecasts
of retailers list forecasting as
their top workforce priority
*RIS News
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29. Effective Scheduling is Critical
2 to Cost Control
SCHEDULING BEYOND
POINT OF SALE MATTERS!
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30. A Recipe for Optimizing the Talent Pool
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31. Best in Class See
11%
Improved customer
Satisfaction
Wall-to-Wall Scheduling Optimizes Investments
Best in Class Industry Average Laggards
90% Scheduling Accuracy 86% Scheduling Accuracy 69% Scheduling Accuracy
4% of overtime unplanned 10% of overtime unplanned 37% of overtime unplanned *Aberdeen Group
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32. The Next Level
Empower Employees
with Agile Scheduling
to Reduce Turnover
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33. Improving Work/Life
Fit is Mandatory
“High attrition and absenteeism stem from
an outdated assumption… that any
responsible and committed employee is
always available for work.
This was a reasonable assumption
in the 1960’s economy when
breadwinners married homemakers.
*The Center for Work-Life Law ”This assumption is
now sorely outdated
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34. Best Practices for Agile Scheduling
Companies that Automate Scheduling
• Incorporate employee and Enable Bidding/Swapping:
preferences
• Employee self-service 8%
Employee Engagement
• Ubiquitous access
• Shift Swapping 13%
Customer Satisfaction
• Bidding for shifts
• Mobile enablement 22%
Overtime
*Aberdeen Group
29%
of retailers provide shift
availability on mobile devices
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35. Efficient Execution Can
3 Ensure Optimal Service
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36. 70% say workloads
have increased
and
74%
say labor budgets are
down or flat
*Integrated Solutions for Retailers
Store Managers Are Feeling the Pressure
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37. Best Practices for Execution
Management in an All-Channel Store
• Standardized Best Practices
• Centralized Communication The Key to Store Revival?
•
•
•
•
Task Prioritization
Workload Balancing
Store-Specific Content
Systematic Issue Escalation
44%
of retailers identify improving store
operations workflow as the top strategy
due to…
• Easy Assess to Task Status the disruptive nature of changing customer
wants, needs, habits, and desires
• Executive Scorecards *Aberdeen Group
• Integrated Mobility
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38. Mobile Task Management
Gains Momentum ALERT
44%
New Store Pick Up
Order Waiting
of best-in-class retailers use mobile
devices to increase labor effectiveness
*Aberdeen Group
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39. 4
Improve Conversions with Clienteling
• Arming sales associates with
customer history, product
information, CRM tasks, etc.
• Ensuring exceptional selling
and service
– Pre-Sale
Personal outreach, appointment
setting, visit prep
– During
Recommendations, cross-sells,
wish lists, preferences
– Post-Sale
Thank You outreach, satisfaction
inquiry, next visit planning
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40. SoMoLo Salespeople = SALES LIFT
63%
larger transactions
33%
more repeat visits
3.5x
annual spend *Raymark
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41. Recap: Thriving in an All-Channel World
Better Forecasting = Better Experiences
1
Effective Scheduling is Critical to Cost Control
2
Efficient Execution Can Ensure Optimal Service
3
Improve Conversions with Clienteling
4
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42. Workforce Management @Work
Four Success Stories Powered by
RedPrairie (Today’s Sponsor)
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43. RedPrairie
Transforming All-Channel Customer Experiences
All-Channel Commerce
WEB MOBILE KIOSK CONTACT CENTER CRM SOCIAL STORE CENTER
Enterprise Inventory Enterprise Workforce
Management Management
SUPPLIER WAREHOUSE 3PL STORES IN-TRANSIT
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44. 1 Advanced Forecasting @Work
Business Profile
Pharmacy retailer with 6,000
employees serving 250 stores
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45. Objectives, Strategy, Approach
• Objectives
– Manage complex pay rules in a multi-union environment
– Leverage Pharmacy resources across stores
– Single, integrated T&A and scheduling solution
– Simplify management of and communications with diverse,
multi-culture management team
• Strategy & Approach
– Created ‘center of excellence’ from Pilot store
– Phased approach – T&A, Schedule front end, then pharmacy
• Share licensed pharmacists across stores/districts
– Aggressive roll-out schedule supported by key executives
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46. Results
• Increase store manager time on floor by 50%
• 88% reduction in overtime spend
• Labor as % of sales improved by 170 basis points
• Customer Experience improved via scheduling to demand
– Net Promoter Score increased 17 points
• Improved employee morale
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47. 2 Agile Scheduling @Work
Business Profile
Broad-line retailer with 325,000
employees serving 4,000 stores
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48. Objectives, Strategy, Approach
• Objectives
– Consolidated scheduling/execution of all store functions
– Trained associates are assigned tasks in their domain
– Greater visibility, communication and collaboration
– More sales floor time for store managers
• Strategy & Approach
– Implement a single workforce management solution across
the entire enterprise
• Scheduling/Time & Attendance, WFM, Execution Management
– Streamline process, communication, assignment, and
measurement across all formats
• All Stores/All Banners, Outlets, Call Centers, Service Centers
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49. Results
• Re-investment of 2.5M store manager hours a year into
sales and service time
• Automated forecast disbursement and consolidated
scheduling of tasks saved $1.2M
• Reduce scheduling hours and payroll by $4M
• Significantly improved retention of skilled cashiers
• Reduced HR field headcount
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50. 3 Execution Management @Work
Business Profile
Grocery retailer with 136,000
employees serving 1,000 stores
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51. Objectives, Strategy, Approach
• Objectives
– Manage extremely heavy promotion business
– Reduce time from truck to shelf
– Improve sales per labor hour
– Increase sales floor time for key roles
– Improve customer experience
• Strategy and Approach:
– Integrate Workforce Management with Scheduling
– Establish priorities centrally, adjust locally
– Streamline and prioritize store/district managers assignments
– Integrate all workforce activities through Site Manager portal
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52. Results
• 6.7% reduction in hours invested
• 29% reduction in premium labor costs
• Improved Department Manager Coverage on key days:
– Saturday 8% improvement
– Sunday 12% improvement
• Reduced shifts not 4/5/8 hours by >42,000 shifts/week
– Week 1: 46,587 shifts
– Week 38: 4,440 shifts
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53. 4 Clienteling @Work
Business Profile
Apparel retailer with 2,500
employees serving 130 stores
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54. Objectives, Strategy, Approach
• Objectives
– Document, replicate, and maintain best practices in sales and
service throughout all stores
– Exceed heightened customer expectations
for service excellence
– Improve collection of customer data
– Go beyond marketing to clients based on user-entered interests
• Strategy and Approach
– Implement Clienteling solution supported by integrated CRM
– Begin with pilot stores to identify and adapt best practices
– Develop comprehensive training/change management programs
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55. Results
• Increased Client data capture rate to 70%
of all transactions
– Better data led to better segmentation marketing
• 35% - 50% of store sales attributed to Client
Book association
• 6% overall sales lift YOY
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56. Today’s Content Developed by
Commerce in Motion CommerceInMotion.com
A thought leadership program
developed by/targeted to supply
chain and retail executives
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57. Questions?
David.Bruno@RedPrairie.com
#CommerceInMotion