The Future of Retail Performance Monitoring Metrics

Reform value realization and capture metrics.

Analyst Perspective

Evolving business models reshape value realization and drive the need for advanced capture metrics.

As enterprise becomes increasingly integrated, there is an undeniable flow of information linking individuals, channels, communities, and ecosystems. While retail endures to evolve and adapt to changing consumer models, processes and new technologies, it is more and more critical to develop new, more relevant metrics to accurately measure the value generated for retailers across the customer touchpoint by evolving functional execution.

An omnichannel-integrated customer-centric retail business needs to recognize:

• The need for customer experience vs channel engagement work to draw customers and convert them to effective sales
• Exactly how the advanced customer analytics tools combine customer interactions and transaction data from each touchpoint to know what the customer experienced and, therefore help understand customer loyalty behavior.
• Emerging technology that combines dashboards, business activity monitoring and real-time data infrastructure to track enterprise KPIs with precise performance metrics on a real-time basis.

Rahul Jaiswal
Principal Research Director, Retail
Info-Tech Research Group

Executive Summary

Your Challenge

• Unified omnichannel retail is driving the development of new operating models. This places leaders under tremendous pressure to implement new performance-monitoring metrics and capture value as the enterprise develops its channels and enhances customer experiences.
• Implementing and delivering real-time monitoring is the most challenging responsibility at an enterprise level and requires retailers to monitor rapidly changing consumer demands.
• Retail CIOs need a comprehensive strategy to formulate and measure value and improve core service metrics.

Common Obstacles

• Retailers are reluctant to implement and execute the future-state retail performance monitoring metrics for value realization, which is the key to measuring the success of the retail organization's strategy and operations.
• Most retailers don't know how to begin. They have not taken a structured approach to execute value capture metrics for each channel of line function.
• The right metrics, KPIs, and monitoring system are integral to the successful ongoing performance of the enterprise

Info-Tech's Approach

• Identify opportunities across your channels and functions to capitalize on monetizing real-time key customer insights.
• Realize the effects of new functions and operating models that are being felt on all entities of the physical and digital retail ecosystem.
• Learn how the best-in-class retailers implement and deliver best practice metrics and KPI variants to leverage across retail sub-sectors.
• Visualize the future state of retail performance monitoring metrics for maturity realization with the opportunity to design a list of initiatives to integrate into the IT strategic plan.

Info-Tech Insight

Enterprises need to prioritize investment in real-time monitoring platforms and analytics tools that combine dashboards, business activity monitoring, and real-time data infrastructure to track retail KPIs using precise performance metrics on an actual basis for measuring strategic priorities and improving their competitive advantage.

Unified omnichannel in retail is bringing businesses closer to the customer by understanding their needs

Source: Infotech Research Group Analysis

With customers using numerous channels, digital & physical are being increasingly viewed as one channel, forcing retailers to respond accordingly

Retailer outlook

• Business concerns
  • Unified omnichannel management across the organization and marketplaces
  • In-store picking
  • 360-degree view of customers. Integrated pick-up.
  • Customer support and personalization for customer retention
  • Omnichannel principles for loyalty management and execution
  • Omnichannel Returns
  • Integrated re-stocking and inventory optimization
• Technology concerns
  • Cohesive product information and order management systems
  • Integrated distributed order management systems and real-time inventory
  • Cohesive enterprise order, supplier management system
  • Unified and context-aware CRM systems
  • Dynamic pricing/ promotion management systems
  • Auto replenishment and fulfillment systems

Source: Infotech Research Group Analysis