Youve got to start with the customer experience and work back toward the technology not the other way around Steve Jobs, Apple Kx has been a global software leader for complex analytics on massive-scale data for over two decades. The Kx technology is an established and trusted standard across industries such as Capital Markets, Pharma, IoT Kodak, Borders, and firms such as Nokia and Blackberry losing their retail presence. The retail landscape has been shifting online for some time now and this is nothing new, but the pressure on traditional bricks and mortar retailers that have not adapted is beginning to show. Debenhams have finally accepted that sharp discounting and reliance on short term sales and promotions is not a sustainable model, whereas John Lewis, who continue to innovate with data and technology, are seeing contrasting fortunes. Amazon continue to dominate the retail market today for one simple reason; the intelligent use of data through technology. Their mission statement clearly demonstrates their commitment to this and the sole purpose of leveraging this data and technology to deliver a customer centric range online: “Our vision is to be earths most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online” No category is safe. Amazons move in to food retailing with the acquisition of Whole Foods will concern the big players such as Walmart and Tesco. Retailers are making their own moves, with Walmarts purchase of Jet.com, and Morrisons tie up with Amazon. The food revolution is coming, and those that do not leverage technology and data to compete with Amazons consumer-focused and targeted approach will fail. Data and technology is clearly critical to retailers, but until now its been difficult to know where to focus investment to achieve the biggest gains. Kx have carried out extensive research with a nationally representative sample of UK shoppers to identify what innovations are driving customer satisfaction and loyalty. Our Retail Innovation Index (Kx RII) helps retailers understand how consumers view their brand, and helps identify key areas where consumers expect technology, data and innovation should be used to drive their customer experience. In our inaugural report, we identify where retailers need to be innovating to deliver success. Damon Bryan SVP Retail Analytics Thomas Hill SVP Retail Services Peter Denby SVP Retail Strategy 2.2x +17% +61% Transformation is sweeping the retail industry. Consumers today are much better informed and more connected. They want mobile shopping, personalized service and instant gratification. These changes are giving rise to a host of innovations around omni-channel retailing, mobile apps, customer data mining, responsive supply chains and cutting-edge, in-store, self-help technologies. Innovation is critical in the digital retail revolution and our consumer research shows that innovation is directly linked to shopper satisfaction, loyalty and ultimately revenue growth. Advocacy was 60% higher in the top 20% scoring retailers in the Kx RII compared to the bottom 20%. Those customers claimed they were 17% more likely to shop again with that retailer, showing that innovation drives loyalty with customers. What is now proved, was once only imagined. William Blake Kx RII is consumer research designed to understand the key areas of innovation and technology across the customer journey and the impact on customer experience Using a nationally representative panel of over 5,000 UK consumers Covers 50 top retailers in sectors across: Grocery, Apparel, Electronics, Health “Innovation for me is best summed up as being like playing a game of extreme, non-linear snakes and ladders. Some of the most exciting innovations can follow on from the biggest failures”. Tescos accomplished top spot in the mini league of the Big 4 grocery retailers. Tescos success was in no small part down to their delivery of effective Personalisation (30% more likely to be scored 9 or 10 than the RII average) and a smooth Checkout (20% more likely). Tescos Clubcard loyalty scheme has over 17m users which enables them to continue to lead in the use of behavioural data to drive hyper personalized marketing. 1.Ocado uses robots and smart software to automate order picking, reducing delivery times for customers and lowering operational costs 2.Tesco Labs promotes and incubates technology innovations to improve the customer experience 3.Morrisons uses machine learning to automate ordering, reducing out of stock items, increasing customer satisfaction and cutting down on waste Driver Importance Driver Performance ASOS lead the way in terms of RII however when you get in to the detail of the individual drivers, the Shop Direct brands perform better than ASOS across all apart from Value. ASOS have obviously done well to create a