Data analytics is the next big thing for businesses. It helps businesses understand data to improve their processes. A company called RetailNext assists stores collect data and use the data to make improvements and changes. RetailNext is about In-Store Analytics. It has worked with Bloomingdale’s, Gander Mountain, Procter & Gamble, Frito Lay, and many other companies. For example, RetailNext could help improve sales by 8-10%.
RetailNext follows four steps to provide data to companies. They collect data, perform analysis, provide visualization, and give insights. The ways that RetailNext collects data is through video cameras, Wi-Fi, point of sale systems, weather, and calendars. They use devices inside and outside of stores to collect data. RetaiNext performs analysis through its software. It is a secure software that can analyze data for more than one store location and bring it all together. Then, RetailNext provides visualization of the data. The data can be viewed on the web or on a phone, it creates reports, and alerts can also be created. Trends can be identified through the visualizations and comparisons can be made between new and old data. Finally, RetailNext provides insights to stores. The stores can use this insight to make improvements. The insights can include things about who customers are, how many customers come to the store, what do customers when they are in the store, how does a store’s staff affect the store, and overall store performance. Data about the customers could be about their gender, where they go when in the store, and whether or not they have been to the store before or not. Data about the staff could include how they treat customers and how that helps or does not help sales.
I think RetailNext is a great way for companies to collect data, and use the data to improve their operations. Stores could improve their revenue, the layout of their store, the products being sold, and customer experience. It is a benefit for companies to have all their data in one place in an easy to understand way. Companies cannot make improvements if they do not understand the data, so it is beneficial that RetailNext provides the data in multiple different ways. I think the reports generated are the most useful because companies can look at the graphs and numbers and figure out what is really going on in their store.
What do you think about RetailNext? Do you think the data collected can actually help stores improve?
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I think that RetailNext and sites like it could really help many industries, not just retail. For example, I was offered a position with Nestle Purina for a Big Data position. Here, I would go to different manufacturing warehouses, in addition to other aspects of the business, and use their current software to collect data on efficiency, sales, etc. One thing that RetailNext could do is to bring it to a lot of small shops as opposed to large corporations. By compiling the data and analyzing it in terms of seeing what is the best next step for your specific store or company, many companies that would have gone out of business could stay open and just change the way they conduct business. I also think that this will make store owners and managers more aware of how consumers act and how they need to change their current business structure in order to maximize sales and consumer satifaction.
First thing that has come to my mind after reading this post is of course privacy issue. I feel comfortable when thinking that somebody spies on me, analyzes all information about me. But then I thought: “What are the good things that RetailNext can deliver to me?”. There are actually a couple things that RetailNext can offer me.
After analyzing all data about my purchases, how much money I spend, how frequently I shop in particular shopping malls, etc., with the help of RetailNext selling companies can actually understand that I always look for high quality products. Given that they will offer such products first. Therefore, I don’t need to waste my time on searching products of particular quality and price. In addition, various stores can offer you discounts after they understand that you purchase things frequently from them. I am sure everyone likes discounts along with high quality personal service. Hence, we can turn showrooming into advantage and mutually benefit from stores. More information can be found here: http://retailnext.net/blog/using-showrooming-to-your-advantage/ .
The second advantage produced by RetailNext business is move to fast and convenient shopping with our smartphones. Stores will allow you to shop sitting at home with just our smartphones and they will be able to provide products and service of the highest quality as the ChoiceStream COO, Eric Brosco, says (http://www.bizreport.com/2012/08/the-benefits-of-showrooming.html).
To sum up, showrooming is one of those things that seems to have only negative effects on us and our lives. But we can easily turn it into advantage if we use it appropriately. But if you do not want to be tracked at all, you have to turn your wifi and data on your smartphone off so that stores will not be able to read the MAC address of your device.
I think RetailNext is big for companies from a profit stand point, but as a consumer it concerns me. Two aspects concern me as a consumer: privacy and advertising.
Privacy is becoming a major problem with technology that tracks and collects data. We can never be sure what is being tracked and collected. A previous comment mentioned “The way it works is that wi-fi routers in stores pick up your device’s unique 12 digit MAC address. Then as it pings that address throughout the store it can track where you’re going, how long you’re there, and how many times you enter a store.” My biggest question from this is can stores then track you after you leave? Can they see where go everyday?
As for advertising, I feel like with these mass data collections the main thing that comes from them is more advertising, and do we really need more advertising?
I am very looking forward to have data analyzing system like RetailNext. A notable benefit of RetailNext is maximizing profitability of all retail stores using it. It will improve the store’s revenue by identifying what sort of products are needed more or less. It also gathers data through video cameras, Wi-Fi, weather, calendars, etc. Tracking customer’s movement through video cameras seems a big violation of customer’s privacy, but it serves some good purposes as well. Featuring advanced video surveillance and integrated monitoring and analytics are good solution to the loss prevention. Retailers will have an access to both live and recoded video from all stores in a chain and security events like door openings, key pad usages, panic buttons and more. According to Reuters, “more than 200 retailers and brands worldwide have adopted RetailNext solutions to glean the insights necessary to improve customer experience, increase same-store sales, reduce theft and eliminate unnecessary costs”.
http://www.reuters.com/article/2015/06/24/retailnextnrfprotect-idUSnPn3jWk30+88+PRN20150624
RetailNext and services like it really worry me. Don’t get me wrong, I think that it is a great business tool and terrific way for companies to learn about the shopping experience of their customers. I disagree with RetailNext from a consumer point of view.
I personally do not like mass data collection that is then used as a means to more profit for a company. The whole situation just makes me uncomfortable. For example, the way the stores use wi-fi to track your movements seems like some sort of violation of privacy. The way it works is that wi-fi routers in stores pick up your device’s unique 12 digit MAC address. Then as it pings that address throughout the store it can track where you’re going, how long you’re there, and how many times you enter a store. They do all of this without you ever knowing and without your permission.
I think that RetailNext is a great idea from a business side, but I think that as more and more consumers learn exactly how their data is being used without their permission there will be come backlash. Simply put, I do not think that RetailNext is respectful to any person.
Check out this link to learn more about how wifi tracking works in stores and some broader viewpoints on the issue:
https://www.washingtonpost.com/blogs/the-switch/wp/2013/10/19/how-stores-use-your-phones-wifi-to-track-your-shopping-habits
Data collection in stores is not the next big thing; it is the only thing. It’s already here we just don’t have it in front of us everyday to look over the data. Chain restaurants meticulously track customer data to help them prevent overages in food orders. They want to see what specials or coupons customers respond too the most so they know whether to pull the same trick again or not. Its all about saving the most money and drawing the same customer back by customizing the stores offerings to their desires. Where were we before this innovation? I can’t imagine a world without it. Stores were blind to my every need. Wouldn’t that be annoying?
“You may think you’re walking into a store.
But, if the establishment is being monitored by in-store data analytics firm RetailNext, you’re actually walking into a data-capturing and -integrating honeypot.”
Almost everything you do nowadays and everywhere you go, you are being monitored by something, whether it is by your cell phone, computer, security cameras, cash registers, loyalty cards, and many other types of devices and things.
I have found a recent article about RetailNext that state that they “score a whopping $125 million to turn store into data systems”. This has really moved the company up to the next level in analytics companies. RetailNext relies on video cameras, point-of-sale systems, WiFi, workforce management systems, geo-fencing, beacon, and other avenues. Another point I found interesting is that RetailNext collects data involving the local weather conditions and departure schedules.
Obviously, RetailNext is a good company and making significant progress or producing good results for the companies that they work for because if they did not produce good results and help the companies, there is no way that they’d be making such a significant amount of money. RetailNext helps stores in determining what kind and how many customers come into the store, what they do, and how to generate more money from them. Other elements that were analyzed were how the store should be staffed, how effective any in-store display or sale has been, and what is the most effective way to get more profit from shoppers walking around the store. RetailNext is a great way to gather data about your company and customers in the most efficient and timely manner.
I obviously believe that RetailNext is a good company and definitely beneficial to those who take advantage of it. Companies who do not use a Big Data solutions or analytics type of company to help determine their new ways of marketing and attract new customers or become more profitable with their customers now.
References:
http://venturebeat.com/2015/04/15/retailnext-scores-a-whopping-125m-to-turn-stores-into-data-systems/
I think RetailNext could definitely benefit the stores that utilize it. Especially those that may be struggling and need to figure out what they need to do to improve their stores profitability. RetailNext collects all sorts of data in many aspects of companies. By compiling data from individual stores as well as company wide databases they are able to figure out ways to optimize profitability. The only real issue I see with RetailNext is that they say they collect data from customers such as where they go in the store and their interactions with the staff but this would require that the customer has their location services on and that RetailNext is able to access them. As for the customer to staff interactions they could possible use security cameras located in the store to evaluate interactions however they won’t really be able to understand the context of the conversation. To really understand they would need either the customer or the staff to write up a report or review of how the encounter went which could be a hassle especially if the staff is expected to write up customer interactions on top of their other duties. Overall RetailNext seems like it would be beneficial to companies and they already work with several very successful companies which adds to their credibility.