More Retail Trends: Customer Data Protection and Value Chain Control

As with every week, we publish two new trends for the Retail industry. In this post we are going to talk about the following trends:

  • Trend 7: Retailers will have to find ways to manage risk and protect customers.
  • Trend 8: Retailers will take full control of the value chain management.

It is crucial to avoid breaches of security from improper handling of data in Retail.

In 2014, the “Identity fraud and breaches study” concluded that there was an increase of half a million victims of data fraud and breaches on a total of 13.1 million people in 2013. This has come at a cost of 3.5 million euros, about 15% more than last year’s figures. But this is not just a matter of numbers. At this time, consumers are not only looking for unique experiences. They want secure purchases. Therefore, in 2015, risk anticipation and data security will be among the priorities of retailers.

There are different ways of managing the associated risks: train the entire organization to soak in the importance of information management, or include aspects in salesperson selection processes related with the responsible handling of data.

Retailers and credit card payment methods are implementing the use of PINs that are much less vulnerable than signatures, or as Apple is doing through its Apply Pay application, assigning an unique account number by mobile phone that is used together with a security code in each transaction so that the credit/debit card numbers are never transmitted in transactions.


Some of Overlap’s solutions that impact this trend:

  • Increasingly clearer instructions in transactions and authorization requests for customer interaction.
  • Teams trained in safe processes and behaviors.
  • New and more secure transactional systems without exposing the means of payment.

If retailers want to provide excellent customer experiences, they must manage and better control how their products are manufactured, distributed and the marketing that is done with them.

The most successful retailers are those who have a complete control of the value chain of their products, from its manufacture to its consumption. Those who are implementing this trend (Apple, Ralph Lauren), despite having high prices, obtain loyalty and customer profitability thanks to the effort of having complete control of the value chain, a strategy that is also reflected in excellent products and a memorable customer experience.

Retailers are likewise using time and resources to create different formulas for managing orders and distributing their products so that speed and convenience are key to put the product into the hands of the customer.

This is reflected in proven management practices and handling of orders (such as daily replenishment or “click and collect”), on the road retail (including pop-up shops and self-sales), third party self-service centers (e.g. Amazon Lockers) and other non-traditional retail means.

Some of Overlap’s solutions that impact this trend:

  • Implement category management with suppliers.
  • Implement omni-channels in logistics and distribution: online shopping and offline pickup, using third party networks to delivery purchases, third party deliveries to create traffic, etc.
  • Own brand name creation of “top seller” traffic generating products.

Remember that you can see the previous trends in these links:

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