Jan-Feb 2020 - ChannelVision Magazine

customers with connected solutions. This is important not only for selling IoT solutions but also driving deploy- ments past pilot projects. “Technologists beware: this is no time for making promises that can’t be kept,” RSR analysts warned, adding that retailers expect to be rewarded for any gambles they take on IoT deployments. Connecting IT and LOB RSR also points to a clear lack of communication between IT and line of business (LOB) executives, which is something to note when approaching customers. It’s becoming increasingly common for IT to conduct secret IoT deployments apart from LOB opera- tions, and vice versa. According to RSR’s findings, both LOB and IT respondents indicated that different internal organizations are piloting, implementing or rolling out sensor-related products without any centralized management. As such, there is an urgent need to bring teams together and promote visibility, col- laboration and data sharing. RSR also maintains that IT and LOB should work closer together to create practical IoT use cases. Chan- nel partners should look for opportu- nities to bring different departments together to reach common goals. CX Drives Adoption Up until recently, inventory man- agement was the main driver of retail IoT. And according to RSR, there is still interest in using the IoT to increase supply chain visibility and accuracy. Now, though, the focus is starting to shift away from operations to im- proving the customer experience (CX). This should come as no surprise, when considering that CX is now a top need for companies – especially retail- ers that are facing reduced foot traffic and surging digital competition. Partners should therefore focus on how the IoT can streamline both operations and CX when commu- nicating with retail customers. For example, cameras can be installed to measure store traffic and deter- mine average purchase rates based on daily store visitors. This type of insight could prove very useful to store managers. Ambiance is Key One of the most important things to consider when implementing con- nected solutions into retail environ- ments is ambiance – something that is increasingly falling by the wayside as new technologies are making their way into stores. According to a new study by Oracle NetSuite, for instance, there is a major disconnect right now between store owners and shoppers regarding ambi- ance. The study found that 73 percent of retail executives think that ambiance in stores has become more welcom- ing during the last five years. However, only 45 percent of customer agree, and 19 percent think stores have become less welcoming. What’s more, while 79 percent of re- tailers think that enhancing stores with virtual reality and AI will increase sales, just 14 percent of consumers think that these technologies will affect their buy- ing decisions. That’s not to say that retailers should avoid implementing robots and connected endpoints into retail environments. But in some cases, they could prove to be more useful behind the scenes. Perhaps the best example can be seen with grocery store robots that follow customers around checking for spills and provid- ing interactive experiences. To store owners, they can be seen as helpful and cutting-edge. To many shoppers, they are just creepy. The key takeaway here is to be smart about deploying IoT solutions in stores. Channel partners should keep value top of mind and make sure that use cases are appropriate, capable of generating ROI and will actually im- prove the shopping experience. o EMERGENT IoT's Impact on Retail Businesses, % Strongly Agree Source: Retail Systems Research Top Customer-Facing Opportunities From IoT Source: Retail Systems Research The internet of things will drastically change the way companies do business in the next 3 years The internet of thi gs will have a dramatic impact on consumer products in the next 3 years My company has no id a how the internet of things will impact our own operations in the next 3 years 2019 2018 Personalized recommendations and promotions Closer engagement with consumers through their internet-connected mobile devices (watches, tablets, phones) Maintaning system-wide inventory visibility and accuracy for cross-channel orders & fulfillment Closer engagement with consumers through their internet-connected fixed- location devices (desktops, appliances) Post-sales services offered to consumers through monitoring their fixed-location internet-connected devices (predictive maintenance of a connected dishwasher, for example) Retail Winners All Others 79% 70% 73% 72% 71% 55% 66% 51% 63% 49% 68% 69% 52% 56% 50% 27% Techn Source: Percentage Currently Investing Hi Lo 14 15 Wh Iaa 10 CHANNEL VISION | January - February, 2020