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Promising Future for Communication Services and Solutions in the North American Retail Vertical - Communication services and solutions are acquiring growing importance in the retail vertical as retailers become aware of the many benefits offered by next-generation communications, a new analysis from Frost & Sullivan
Promising Future for Communication Services and Solutions in the North American Retail Vertical

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2007/09/25 - Communication services and solutions are acquiring growing importance in the retail vertical as retailers become aware of the many benefits offered by next-generation communications, a new analysis from Frost & Sullivan.

   
 
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Cost reduction is perhaps the most compelling of these, but retailers are increasingly realizing that advanced features and functionalities provide an enhanced communication experience that is becoming essential in an industry with a highly mobile workforce.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of North American Retail Vertical Communication Service and Solution Markets, then send an email to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost.com with your full name, company name, title, telephone number, city, state country and email address. Upon receipt of the above information, an overview will be sent to you by email.

"Apart from the need to provide convenience and flexibility to a mobile workforce, a strong focus on customer relationship management (CRM) and quick transaction processing as well as the move toward a centralized hub-and-spoke model of operations are other factors influencing retailer spending on communications services and solutions," observes Frost & Sullivan Senior Industry Analyst, Roopashree Honnachari.

Since delays in transactions could cause customers to shift loyalties to another store and result in lost sales, many retailers are giving top priority to improving customer flow and customers’ overall store experience by streamlining payment processing. Technologies that help in improving speed and efficiency and allow retailers to address customer demands more effectively are, therefore, much in demand in the retail industry.

With retailers so strongly focused on CRM, there is increasing interest in CRM tools, which are all set to revolutionize the functioning of retail organizations. CRM tools can be used to capture and analyze customer interactions with the retail outlet, study their buying patterns to help plan inventory management and gain insights into selling patterns of various stock keeping units (SKUs). Most importantly, these tools help understand customer pain points, allowing retailers to find solutions that ensures customer loyalty and repeat business.

Retailers are increasingly migrating from expensive technologies such as Frame Relay, ATM, and private leased lines toward broadband-based VPN technologies to provide multiple connectivity solutions between key areas of retail operations. This is because a managed broadband-based VPN can deliver the same benefits at significantly lower costs compared to traditional connectivity solutions.

Efficient supply chain management (SCM) and reducing inventory shrinkage are two other key areas of concern for retailers. Wrong inventory designs could lead to significant losses, so retailers have to plan the inventory in great detail, deciding which goods to stock and in what quantities.

Since SCM is a critical component of any retailer’s IT infrastructure due to the fundamental need to maintain accurate inventory levels in line with market demand, implementing SCM software is becoming increasingly common. Although current penetration levels remain low, an end-user survey conducted by Frost & Sullivan reveals that most of the participating retailers indicated that SCM software was one of their top priorities for technology spending.

Another major challenge for retailers is the constant threat of shoplifting and employee theft, which often translate into considerable annual losses. These two issues are two major contributors to inventory shrinkage, compelling retailers to take steps to prevent such incidents.

IP-based surveillance systems present a potentially effective solution, as they allow live video streaming and image transfer to web browsers for real-time viewing data. IP-based network also offer a more cost-effective way of implementing centralized security measures and undertaking continuous store monitoring from remote locations. Connecting surveillance footage to point-of-sales (POS) activity enables better response to cases of loss, theft and crime.

North American Retail Vertical Communication Service and Solution Markets, part of the Enterprise Communications Growth Partnership Services, provides an in-depth analysis of communication technologies for the North American retail vertical, focusing on the potential adoption rate for each of these technologies in the retail market and offering key insights into decision makers’ key concerns as well as major decision criteria. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership service, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Promising Future for Communication Services and Solutions in the North American Retail Vertical

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Contact: Mireya Castilla 
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