RSR Research LLC Brian Kilcourse, Managing Partner

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RSR Research LLCBrian Kilcourse, Managing
Partner
How To Get Closer To Retailers (a short version
of Selling Technology Value To Retailers)

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Todays Agenda

• Who is RSR who are You?
• A Quick review of Solution Selling
• Answer the question What Are Five Ways To Get
  Closer to the Retailers of Your Dreams?
• Reveal Lessons Learned From Past Selling IT
  Sessions

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Who / What is RSR Research?

• A group of retail industry veterans providing
• Insight into business and technology challenges
  facing the extended retail industry
• Thought leadership and advice on navigating these
  challenges for specific companies and the
  industry at large
• Our research products include technology adoption
  benchmark reports, custom research, and
  comparative personal benchmarks.

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(No Transcript)
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Stacking the Deck Towards a Strategic Purchase
(a 1-Minute course in Solution Selling)

• Get in early during budget cycle
• Find problems that they didnt know they have
  (and which you have a solution for!)
• 3 Steps in Getting a CxO to Listen
• INDUSTRY-SPECIFIC (how is it relevant to the
  industry)
• COMPANY-SPECIFIC (how is it relevant to the
  company)
• PAIN (how is it relevant to the CxOs pain ?)

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What Are You Selling?
FOCUS

• The Customers Customer
• Corporate Value
• Business Process Improvement

Value
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Who Are You Selling To?
Value

• Honesty Integrity
• Business Knowledge
• Accountability

C Level
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Whats Most Valuable to Executives?
RSAG Survey 3/2005
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1 KNOW THE VALUE PROPOSITION
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Retailing Fundamentals Remain Simple
1907
2007

• Grocer knows name
• Bought on credit
• Delivered when needed
• Focus on fresh
• Location determines regular store trips

? (electronically)

• Grocer knows name
• Bought on credit
• Delivered when needed
• Focus on fresh
• Location determines regular store trips

? (electronically)
Source Cannondale Associates Power Ranking 2007,
Local Vigor
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20th Century Channel Masters dominated Retail,
and this led to
best product
Product Leadership
Product differentiation
Bland
Unresponsive
Customer responsive
Operational competence
Efficient
Operational Excellence
Customer Intimacy
best total solution
best total cost
Source The Discipline of Market Leaders Michael
Treacy Fred Wiersema
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Retailers face a World of Paradox
Improve Customer Service
Cut Costs
Global Supply Chain
Localized Demand
Focus on Customers
Please Shareholders
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New Ways to Differentiate
Product Leadership best product
Exciting
Product differentiation
Customer responsive
Operational competence
Efficient
Operational Excellence best total cost
Customer Intimacy best total solution
Service!!
Source The Discipline of Market Leaders Michael
Treacy Fred Wiersema
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The New Retail Mantra
Success is no longer defined by how you want to
sell, but by how customers want to buy
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How CUSTOMER CENTRIC Are They?
Price/Convenience
Sustainment Security
Belonging Esteem Wisdom
Value
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2 Know Where the Money Goes
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Retailers Are Perpetually Focused on improving
performance
Change in Market Value
Investment Growth
Return On Investment
Costs/Margin
Working Capital
Capital Expenditures
Sales
Selling more
Keeping more of every dollar sold
Tying up less capital for every dollar sold
Growing value-creating formula
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You Make the Call!
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COG 71.9
SGA 25.2
Op. Income 2.9
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What Happened?!?
5.4
6.0
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COG 31.4
Op Income 28.5
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MessageRetailers Measure Improvements in 10ths
of a percent of sales
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3 Understand Attitudes About Technology
Enablement
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Questions Businesses Ask IT
Financial Services How Soon?
Telecomm How ?
Retail Why?
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The Value Of Technology to the Organization

• Traditional Process Optimization
• Tactical
• Internal Influence
• Future New Value Creation
• Strategic
• External Influence
• Enabler
• Intensifier

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Challenges Driving the Use Of Technology
Must be able to respond more quickly to
changes in consumer demand
Need a better match between products and
customers
Must improve customer service without
increasing payroll costs
Difficult to differentiate from competitors
Need to reduce out-of-stocks
Need to reduce inventory and improve turns
Rapid growth is driving us into new markets -
need better store selection tools
Fragmented views of our customers are costing
us sales
A Lot of Influence
Need to reduce shrink
Some Influence
No Influence
0
20
40
60
80
100
Source August 2007, RSR Research
The goal Be responsive AND relevant
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According to recent research, 41 of retailers
re-invent the integration wheel every time a new
application arrives on the scene.
The Future of Application Delivery in Retail-
Benchmark 2008, April 2008, RSR Research LLC
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• Retailers Are Being Eaten Alive by Maintenance
  

The Future of Application Delivery in Retail-
Benchmark 2008, April 2008, RSR Research LLC
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• And So they are Not Very Happy

The Future of Application Delivery in Retail-
Benchmark 2008, April 2008, RSR Research LLC
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What Are the Important Technology Enablers?
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Retailers Tend To Favor Point Solutions But
Attitudes Are Changing
The Future of Application Delivery in Retail-
Benchmark 2008, April 2008, RSR Research LLC
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The Future of Application Delivery in Retail-
Benchmark 2008, April 2008, RSR Research LLC
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4 Use the CIO To Connect To The Business
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An Industry Debate
Sell To the CIO? Or Around the CIO?
Sell Through the CIO !
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This is what most CIOs want to be!
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This is where many CIOs stand!
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The IT Alignment Problem Explained
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The IT Alignment Problem Explained
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The IT Alignment Problem Explained
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Your Mission Is To

• Help the CIO
• Do better
• Look Better

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5 Understand The Decision Process
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Where Do the Requests Come From?
Board of Directors
- Risk Mitigation
Executive Strategy
IT Planning

• Business Strategy/
• New Value Creation

Line of Business
IT Infrastructure

• Business Tactics/
• Process optimization

- IT Infrastructure to Support the Business
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The Buying Process Explained
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(No Transcript)
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• Lessons Learned From Past SELLING IT Sessions

• Be relevant Learn about the market, the company,
  and the function youre targeting (use Yahoo go
  shopping!)
• 9 out of 10 opportunities are about increasing
  efficiencies, either in improving COG or reducing
  expenses but this is a catch-up game!
• Improvement is measured in 10ths of one percent
  of top line revenue be careful about promising
  new revenue

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• Lessons Learned From Past SELLING IT Sessions

• Use industry peer references if you dont
  have one, buy one
• You only get one chance to be credible
• Sell through the CIO
• Leave bread crumbs
• Remember that what retailers do best is buy
  stay focused on Value

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• www.rsrresearch.com

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Thank You!

• www.rsrresearch.com