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a matter of understanding that no market is infinite and get your first customer, your one millionth customer – this
getting to a perspective of how big the addressable market is the way you define your business."
is using analytics." Based on that knowledge, retailers
must calculate how much cash each store and channel will Still, retention is not without challenges. "Retention is
generate, the break-even point, and the revenue needed harder, because customers are fickle, and their switching
to support and adjust infrastructure, which includes costs are low," Fodor said. "I can go from my Lowe's app to
everything from technology to distribution center to home my Home Depot app pretty quickly and shop at a different
office. store, and they're both good apps. If the merchant doesn't
give me a good experience, I'll move to the next one." Fodor
Disruptor big four pointed out that delivery as a solution has become a trend
In segmenting retail disruptors from non-disruptors, spanning all verticals.
RSR identified four distinct areas where disruptors excel:
unified commerce, informed insight, customer acquisition In terms of modifying the store model, general
and understanding the role of the store. merchandisers scored highest for planned implementation
of shop-in-shop concepts, offering customer-facing events,
"When you think about it, unified commerce and the and repurposing stores as showrooms and service delivery
role of the store go hand in hand, because it's agnostic locations in the future.
of channels," Martin said. "People are buying on mobile Tech fortification
devices in a store and vice versa, so it's more about the
experience across channel and agnostic of channel, the Understanding which technology investments retail
frictionless journey that the customer is looking for." disruptors place a premium on can lead to more effective
bundled offerings. With the exception of business
Non-disruptors were more inclined to rely on data- efficiency programs, digital customer engagement in-
driven decisions than non-disruptors, who preferred store and assortment planning; disruptors outnumbered
a combination of data and human insights to inform non-disruptors in all tech investment categories RSR
business decisions. "I think they apply it well by using measured, as illustrated in the chart herein.
a judicious mix of human insight and machine insight,"
Rosenblum said. "I don't think you should turn over the High priority Disruptors Non-disruptors
concept of taste to a machine." technology
investments
Applications for data science will continue to evolve. "JDA
has a vision of being more predictive and prescriptive Customer insight and 75% 66%
in their analytics, and that's exactly what the disruptors personalization
are doing," Martin said. JDA recently opened the JDA Enterprise resource 55% 39%
Customer Experience Center to serve as a dynamic lab for planning
showcasing technology innovations interactively. Business efficiency 55% 57%
programs
Leading retailers today actively track social media and
shopper profiles to gauge and predict spend trends. New fulfillment 55% 52%
"We are in the very infant stages," Fodor said. "We talk capabilities
to merchants all the time about how can we look at the Micro and 53% 41%
data we have to help you make more intelligent decisions. macro space
Data analytics is a huge part of commerce." He added that management
machines are beginning to think more like humans and Labor task 53% 41%
advance in intelligence. management, in-store

"Customer acquisition is a major focus of retailers," Forecasting and 53% 46%
Martin said. "Forty-nine percent of the disruptors already replenishment
have a presence on third-party marketplaces." Although Labor management, 49% 45%
considered an essential tool upfront, disruptors felt that time/attendance/
over the long term, marketplaces distanced them from scheduling
their customers, and 17 percent expected to rely on them Digital customer 45% 52%
less in the future. engagement, in-store

Disruptors were equally focused on creating engaging Assortment 43% 43%
lifestyle content, customer-focused activities and planning
outstanding customer experiences to attract and retain Other priorities 42% 36%
customers. As one CEO of an online specialty grocery
retailer quoted in the report said, "Product, manufacturing, Source: RSR, How Retail Disruptors Drive Industry Change, commis-
fulfillment – these can all be streamlined. But the way you sioned by JDA Software Inc.
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