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Microsoft, Accenture, Avanade launch multi-channel retail initiative

Accenture and Microsoft Corp. have launched an initiative to help retailers tackle the challenge of linking consumers to emerging technology platforms such as social networking and online communities.

Under the multichannel retail initiative, Accenture and Microsoft will work with Avanade, a global IT consultancy created by Accenture and Microsoft, to help retailers extend the shopping experience to an ever-widening number of locations and devices, including the Web, mobile computing and new ways to shop in stores. This will let retailers deliver a wide range of services and products across every channel in which consumers interact with retailers, including mobile.

"In the current economic situation, one of the things we're hearing from retailers is that driving consumer loyalty is a high priority, and mobile is a convenient channel for consumers," said Brendan O'Meara, managing director of worldwide retail industry for Microsoft, Redmond, WA.

"Especially during an economic downturn, it makes a lot of sense for retailers to make sure they're driving an increased share of a consumer's wallet," he said. "With increased market share, they'll be better positioned as the economy improves.

"This initiative is geared toward driving convenience and loyalty for retail customers."

Consumers can buy a product online or via mobile and pick it up in-store.

Retailers are able to display products on the wired and mobile Web sites to enable comparison shopping while in the store.

Also, retailers can let consumers use their mobile device to get more information about the products they offer.

"A retailer has many different choices -- they can give consumers price points from different retailers and make a best-price guarantee, giving consumers the knowledge that they're getting the best possible deal," Mr. O'Meara said. "Mobile is really emerging as another important channel in terms of how retailers and consumers interact -- it's really taking off.

"We have the ability to provide a full experience from a Microsoft Commerce Server-enabled Web site to reach out to and address customers in new ways," he said. "It's important for retailers to have the ability to handle the various mobile scenarios that are emerging and that we believe will become more broadly deployed."

Adding mobile into retailers' mix will enable them to cut costs for the consumer and improve customer service by providing tighter integration between the in-store or online shopping experience and line-of-business applications.

These include inventory and order fulfillment, customer relationship management and loyalty programs.

The retail initiative between Microsoft, Accenture and Avanade will take advantage of dedicated resources within all three organizations that help build and deliver repeatable services.

Cross-organizational teams within the organizations will focus on strategy and technology for the Web, e-commerce, mobile commerce and digital marketing.

The initiative was announced at the National Retail Federation's 98th Annual Convention & Expo at the Jacob K. Javits Convention Center in New York.

The alliance combines Microsoft's commerce technologies, Accenture's retail industry experience and Avanade's business technology expertise on the Microsoft platform.

A new offering, which will be based on the new release of Microsoft Commerce Server 2009, was unveiled at the convention.

This product is designed to demonstrate the capabilities and importance of real-time integration between online, mobile and in-store shopping experiences.

"Retailers are continuing to evolve toward tightly integrated cross-channel operations and will be making significant investments in technology, infrastructure and organization over the next two years to implement this strategy," said Chris Fletcher, analyst for AMR Research, in his report titled "The State of Cross-Channel Operations: 2008."

"Challenges remain, however, as retailers grapple with fragmented systems architecture, align organizational structures and integrate warehousing, merchandising, analytic and business intelligence systems; in-store kiosks; Web stations; and mobile devices into their cross-channel environments," he said.

The new multichannel retail initiative expands merchandizing and marketing capabilities to include enhanced product and content management and team collaboration.

The demo includes a centralized Web store portal for managing day-to-day marketing, merchandizing and content management tasks, as well as workflow to approve, audit and publish online product information.

The product has features for consistent, targeted cross-sells, upsells, pricing and product information across channels, mobile devices for reviewing product information online and SMS messaging for order confirmation.

The demo also includes cross-channel product location, price comparison and purchasing with a "Cross-Channel In-Store Pickup" feature that will enable an online product catalog to be dynamically synchronized with the POS product catalog and inventory, continuously updating the inventory counts and product catalogs between the Web store and physical store locations.

The demo also will show how merchandising and marketing professionals can manage their online content and promotional campaigns in real-time.

For retailers focused on executing multichannel and cross-channel strategies, Microsoft provides a set of enabling technologies and services.

Microsoft claims that its investment in digital advertising platforms, consumer mobile devices, search, social networking and online content helps retailers and consumer goods companies connect the dots in their cross-channel strategies.

"For retailers, mobile advertising will become increasingly important," Mr. O'Meara said. "We have a new technology called Microsoft Tag, a colorful 2D bar code developed by Microsoft that can be read on mobile devices."

Consumers can download an application from Microsoft that will run on Windows Mobile devices, Apple's iPhone and other smartphone operating systems.

The camera phone on a consumer's handset decodes the 2D bar code tag, which includes an ID number that references back to a Web service allowing the retailer to serve content to consumers such as text messages, v-cards, direct advertisements and video.

"The creativity of the marketer is the only limit," Mr. O'Meara said. "This gives advertisers the ability to connect the digital world and the analog world.

"They can direct customers to any sort of content from the Internet, and retailers are able to connect information in store via mobile, which is very dynamic," he said. "This is content you can view as frequently as you like, and it's location-aware, so advertisers can serve different content in different locations."

Microsoft believes that mobile will continue to grow in importance for retailers.

"Because of the massive increase in the adoption of smartphone technology, retailers are considering mobile as a primary way that consumers will be shopping," Mr. O'Meara said. "Many of them are kicking tires or have already achieved full-blown implementation.

"Retailers are getting very serious about mobile," he said. "The first area of growth will be mobile shopping, with comparison shopping via mobile becoming increasingly popular.

"There are various different ways that retailers are going to be using the mobile phone as a way to do one-to-one marketing, sending out offers such as mobile couponing while consumers are on the go -- the anytime, anywhere mentality is really starting to take off."

Accentuate the positive
Accenture is a global management consulting, technology services and outsourcing company.

With more than 186,000 people serving clients in over 120 countries, the company generated net revenues of $23.39 billion for the fiscal year that ended Aug. 31, 2008.

Avanade is a global IT consultancy dedicated to using the Microsoft platform for enterprises.

Avanade, which is majority owned by Accenture, was founded in 2000 by Accenture and Microsoft Corp.

Avanade has more than 8,000 professionals serving customers in 22 countries.

"The alliance represents a differentiated offering to retailers, as it provides dedicated resources across all three organizations to build and deliver successful and repeatable projects," said Mark Cotton, the senior executive leading Accenture's global multichannel retail initiative with Microsoft.

"These include a lead ecommerce solution backed by three of the strongest brands in the retail technology industry; a cross-organizational team focused on strategy and technology for Web, ecommerce, and digital marketing; long-term ecommerce product development; and industry-specific intellectual property to speed engagements and lower project risk," he said.

In 2009 and beyond, Accenture predicts that many U.S. retailers will use mobile to enable price comparison in-store, order and shipping confirmation via SMS, payment via SMS or Near Field Communication and line-skipping at quick-service restaurants and coffee shops by ordering while en route.

Accenture stressed that integrating mobile into a multichannel approach addresses various challenges for retailers.

"The cross-channel customer is a typically more profitable and brand loyal," Mr. Cotton said. "Retailers need to build closer relationships with these consumers based on multiple points of access and a deeper understanding of their buyer values based on circumstances and the context of their shopping experience.

"The closer connection with the consumer will enable retailers to cut costs and improve customer service by providing tighter integration between the in-store or online or mobile shopping experience and line-of-business applications, including inventory and order fulfillment, customer relationship management and loyalty programs," he said.

That's just the tip of the iceberg, however.

"Additionally, core ecommerce tools will address critical business success factors such as marketing and campaign management, merchandizing and content, and pricing and promotions," Mr. Cotton said.

"The resulting multichannel retail solutions, by integrating cross-channel marketing efforts, will help to ensure a consistent buying experience to encourage consumer loyalty," he said.