Why is innovation crucial for retailers? [Telstra Expert Series]

So now let’s move to the future.Let’s talk about a time, say,
five years into the future
when the internet of things means
everything’s connected –
all machines are connected, all
people and devices are connected,
and lots more information
is being generated.
What will that mean for retail?For us, the biggest technology
change is the integration
of how we access customer data.So sometimes they might order
on their mobile phones,
they might just walk into a store,
sometimes they engage with us
on Facebook,
they look at us
through the internet,
they order online
in different ways and forms.
And being able to access and trackhow customers want to
access our brands
through all those various different
communication processes
is one of our biggest challenges
in how we see us moving forward
in that area.It’s amazing with mobile and the way
that it’s changed behaviours
of our customers.Quite often now, if
we don’t have the right information,
the right service levels,
the right whatever it is,
they’ve researched and bought
on their mobile phone
well before they’ve got to
the front of the counter
and it might not necessarily
have been from us.
Mobile is the future
of our business.
Nearly 40% now of all transactions
are mobile.
We’re seeing this incredibly
accelerated iteration to mobility.
But I can’t help recalling
back in 2009, I think it was,
I was in a conference in Chicago and
one of the senior Google executives
said they’re betting the farm
retail on four things –
mobile, social, personal, local.And I think that was
an excellent telegraph,
if you like, into the future
where we are now.
I think those are all four
very powerful levers
that are driving retail future
both here in Australia and globally.
Peter, what are you seeing
a bit out in the future
about the technology
that could influence the business?
CRM is incredibly importantbut it’s really around trying to get
that single view of the customer
which is essentially
the holy grail of retail.
So when students buy 101 Accounting
from us,
we know they don’t want another
101 Accounting,
so what is that next best…
what is that next best offer?
You really have to understandwhat it is they’re looking at
on your website
and understand
even their personalities
and styles and profiles
much, much better
before you can really take service
to the next level.
I think that mobility is the centre,particularly
location-based marketing in store,
connecting with their customers’
digital activity.
And, you know, speaking to customers
through consumer groups,
they’re more than happy to share
their information for a reward,
and in most cases that usually is
a relevant and personal offer.
Yep.We’ve got a world where everything’s
connected by the internet of things.
We’ve got masses of data now.We’ve got people with wearables.Well, I think the easiest place
for me to start
is some of the work that we’re doingin the actual back of house
of our restaurants
where we have already started
the journey of
having a lot of equipment
connected up to the internet
so we can tell when it needs
repairs, when it needs maintenance,
when it needs upkeep,
quality of our food,
every single piece of chicken
that floats through
one of our KFC stores,
being able to understand how
all of that integrates together
to deliver significantly more
efficient way of operating
and also better customer experiences
as well.
Owning your own supply chain
and managing that
in ever increasing increments of
improvement all the time is critical
to the retail experiencebecause that’s the only thing
that will enable you
to serve your customers better.Yeah, so this is actually
a Martin Christopher idea.
He says brands
don’t actually compete.
It’s supply chains
that are in competition,
and the company with the best
supply chain to serve the customer
will be the winner.And that could be facilitated
by things like IOT.
IOT should sort that all outwhere our devices and machines
will order for us
and replenish automatically,which will leave me free
to do other things.
The seamless, frictionless
connection with our customers
both ways
and them connecting with us
should lead to a better
shopping experience.
But I think that will still
play out.
Clearly, we’re well on the way.

Norman Bunn

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