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Safely delivering growth through better customer experience

SOLUTION BRIEF

1

Safely delivering growth through better customer experience

TEchNOLOgy chaNgE haS ImpacTEd yOUR cUSTOmER RELaTIONShIpS

As you clearly know, digital disruption over the last decade has impacted how retailers communicate, connect, and sell their customers. Most retailers that we work with acknowledge as well a shift in power to more technology-enabled consumers. For this reason, they say that they need to adjust their strategies and refocus their marketing so it is more consumer-centric.

For example, Roxanne Austin on Target’s Board of Directors says their

decision to appoint Brian Cornell as Chairman of the Board and CEO

was driven by the importance of data and analytics to their brand

catching up digitally. “As we sought to aggressively move Target

forward and establish it as a top omnichannel retailer, we focused on

identifying an extraordinary leader who could bring vision, focus and a

wealth of experience to Target’s transformation.”

Roxanne goes on to say that the board had determined that “Target

would not grow if they weren’t relevant to our customers.”

As part of this change, Austin says that they now view smart phones as

their storefront which in turn has liberated them to increasingly turn

stores into actual fulfilment centres.

BUILdINg a BETTER RELaTIONShIp wITh ThE RETaIL cUSTOmER

Retailer customers are telling them it is critical to build better

relationships. The goal is to create great experiences with brands and

products by empowering consumers with knowledge. This requires

a better understanding of consumer needs as well as the removal of

Target would not grow if they weren’t relevant to our customers.Roxanne ausTin, TaRgeT

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Safely delivering growth through better customer experience

purchasing barriers. For Nordstrom, according to Jeannie Ross of MIT

CISR, they noticed a few years ago they were being disrupted just like

Target. Nordstrom responded by creating a personalized shopping

experience.

This was enabled by solving significant technology integration issues

and combining their business capabilities around a transparent

shopping experience and transparent supply chain. This in turn

powered predictive analytics. This allowed Nordstrom to predict

that what a customer needed was in stock and how to get it to them

regardless of channel.

It has become clear that strategically managing customer, product,

and supply chain data, and proactively identifying the relationships

between them, is critical to retail agility in today’s world of rapid digital

innovation. For many years, customers have been working to establish

an omnichannel commerce model. To make this work today, they need

the ability to streamline and coordinate transactions across multiple

platforms for a superior consumer interaction. Retailers need to move

beyond omnichannel to become truly customer-centric.

Consumer, product, partner, supply chain and external data in today’s

era needs to be proactively managed to ensure a complete picture

is built of customers. This needs to consider what needs and wants

attract consumers to specific products and how to satisfy the last-

mile delivery in a world where choice is king and preferences are

person-specific. Without accurate and complete data regarding next-

generation customers, neither the systems nor the resulting marketing

campaigns will function as intended. Retailers with inaccurate data

may end up frustrating consumers with irrelevant messages and offers

which will be ignored and maybe even lead to a complete shutdown in

communications altogether.

According to Pascal Viginier, CEO Office and Orange and Cynthia

Stoddard, CIO of Adobe, “data is the new currency for organizations

driving insights, customer engagement, and ultimately financials.”

Retailers need to move beyond omnichannel to become truly customer-centric.

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Data is the new currency for organizations driving insights, customer engagement, and ultimately financials.Pascal ViginieR, ceo office

anD oRange

cynThia sToDDaRD, cio aDobe

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Safely delivering growth through better customer experience

RETaININg cUSTOmER TRUST aNd gOOdwILL IS ESSENTIaL

As organizations put together their fragmented consumer information,

they need to be conscious about the business risk coming from

integrated customer data. Companies integrating data about customers

need to ensure this sensitive and valuable asset collected for retail

marketing purposes is protected because there are clear marketing

consequences to a brand for a failure to protect it. To help you think

about this, it is helpful to consider the concept of brand equity.

“Brand equity is a set of brand assets and liabilities linked to a brand,

its name and symbol that add or subtract from the value provided

by a product or service to a firm and or to a firm’s customers.”

Managing Brand Equity, Dave Aaker

Most would all consider a major loss of customer data as fitting under the

category of a ‘business disaster’. Aaker claims that it is important for business

leaders to understand that a disaster affects image, and thus, brand equity.

Aaker suggests that the best approach is for brand managers to ensure

that a disaster is avoided; where one does occur, they should detect the

disaster early and do something about it before it blows up. Aaker goes

even further saying that the remedy should be as convincing as possible.

This is clearly a tactic taken by Target in recent years. Target’s CIO

said recently, “We now have to prove to our customers every day that

their data is secure, it can never leave us again.” Another major loss of

customer data would have disastrous consequences for the Target brand.

With 10% of revenues typically spent on marketing, how much of a hit

can a brand take before this yearly marketing investment becomes

a wash? Validating this is a Deloitte study which recently found that

the primary reason consumers choose to purchase higher-priced

products is because they are ‘trusted’. The study also found that for

59% of consumers just a single data breach would negatively impact

the likelihood of them purchasing from a particular company. Deloitte

found that with confidence in an organization’s ability to protect their

data, consumers are more inclined to share information where they see

benefit. Without data protection assurance, retailers will be limited in

the information they can collect – and this will allow competitors to win

their customers’ loyalty instead.

…there are clear marketing consequences to a brand for a failure to protect it.

We now have to prove to our customers every day that their data is secure, it can never leave us again.cio, TaRgeT

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Safely delivering growth through better customer experience

For this reason, Retail brand managers can no longer allow their

organizations to plead ignorance to the possibility that customers will

walk or stay away from their brand if it fails to protect their sensitive data.

Financial penalties for failure to comply with industrial and governmental

privacy and data protection regulations can clearly erode the value

of brand investment. How many European brands want to notify their

customer base that they failed to adequately protect their data?

hOw caN pROTEgRITy hELp

Protegrity provides a data protection platform that can allow you to

make use of sensitive and valuable customer data without risking

your customer relationship and brand at the same time. For many

retailers, they tie their upsell and cross sell offers to unique identifiers

including credit card number or other sensitive elements of personally

identifiable information.

The platform allows you to make use of this sensitive data while

seamlessly enforcing data policies across the enterprise to protect

sensitive data and control access to it, regardless of where it flows, is

used, or rests. This enables retailers with complex IT ecosystems to

consistently protect sensitive information throughout the enterprise

without compromising their customer marketing.

Protegrity empowers a ‘privacy by design’ with centrally managed

security and privacy policies to control access and protect data itself

using anonymisation and pseudonymisation technologies; with these in

place, data protection is automated enterprise wide. Today, protecting

data needs to be a 360-degree conversation. It needs written policy

and user transparency as well as data protection. Protegrity allows

specific, sensitive data to be fully visible, partially visible or completely

protected depending on each user’s role within the organization. This

permits the analysis of sensitive and regulated customer data while

preserving privacy and security for different applications and parties.

pROTEgRITy SERvIcE TO RETaILERS

Protegrity has been helping companies for more than 10 years to

protect their data as a core business competency. We are used by 20%

of the largest retailers based upon Fortune Global 500 Lists released in

August of 2017.

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Key benefits• Respondtodigitaldisruptors

bycreatingcompellingdigitalexperienceforcustomerswithouttakingonsignificantbusinessrisk

• Safelyusesensitivecustomerdatatoimproveyourmarketanalysisandtopowerpredictivemarketingmodelsneededtodrivecrosssellandupselloffers

• ComplywithregulationincludingPCIandGDPRwithouteliminatingimportantmarketingdataalongtheway

• Preventadigitaldisasterbyprotectingsensitivecustomerdatafrommisusebyinternalandexternalparties

Protegrity has been helping companies for more than 15 years to protect their data as

a core business competency. Our customers include some of the largest multi-national

retailers in the world. They recognize that data is a valuable asset which we can enable

them to use securely, without restrictive costs or performance roadblocks.

www.protegrity.com

protegrity (Europe)

Suite 2, First Floor, Braywick House West, Windsor Road

Maidenhead, Berkshire SL6 1DN, United Kingdom

Phone: +441494857762

corporate headquarters: protegrity USa, Inc.

333 Ludlow Street, South Tower, 8th Floor

Stamford, CT 06902, USA

Phone: +1.203.326.7200

Copyright © 2018 Protegrity Corporation. All rights reserved. Protegrity® is a registered trademark of Protegrity Corporation.

All other trademarks are the property of their respective owners.

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Retail transformation turns data risk into reward

EXECUTIVE BRIEF

THE CHANGING FACE OF RETAIL HOW SHOULD DATA PROTECTION KEEP UP?

2 Automated Roles

TRANSACTIONS WILL bE fRICTIONLESS, USINg IN-STORE RfID TECHNOLOgy

1 Personalized experience

3 Automatic checkout

5 IOT

STRATEGY: Personalization to ensure customer loyalty and increase share of wallet

OPTIMIZATION: Protect private data itself in a way that does not hinder analytics

CUSTOmERS’ ONLINE DATA AND PURCHASE HISTORy WILL REvEAL INSIgHTS fOR TAILORED SUggESTIONS AND INCENTIvES TO bUy, IN REAL TImE

DIgITAL DEvICES WILL gREET AND SERvE CUSTOmERS AND RUN bACK OffICE OPERATIONS

www.protegrity.com info@protegrity.com

OPTIMIZATION: Ensure use of data is for legitimate purposes only using granular, role-based access controls for devices utilizing sensitive customer and corporate information

STRATEGY: Enhance the shopping experience – no more queues

OPTIMIZATION: Protect customers in line with GDPR and PCI DSS requirements using tokenization to pseudonymize private information without impact to process or systems

SmART APPLIANCES WILL PURCHASE AND DELIvER HOUSEHOLD ITEmS AND RESTOCK SHELvES AND PROvIDE fURTHER INSIgHTS INTO CUSTOmER PURCHASINg HAbITS

ONLINE SHOPPINg WILL gROW fROm 10% TODAy TO OvER 50% by 2027

STRATEGY: AI to reduce cost and improve efficiency

STRATEGY: Make online purchasing easier and quicker for customers to improve conversation rate

OPTIMIZATION: Protect sensitive data fields in transit to speed up account creation and enhance customer experience

STRATEGY: Anticipate and respond to customer requirements on demand and streamline supply chain

OPTIMIZATION: Enable data to flow across all platforms using one centrally controlled protection method

4 Online sales

5 WAYS GLOBAL RETAILERS PROTECT THEIR CUSTOMER DATA

WAYS GLOBAL RETAILERS PROTECT THEIR CUSTOMER DATA

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