technologies that drive operational performance & retail associate behavior

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Technologies that Drive Operational Performance and Associate Behavior FMI Connect Retail Innovation & Technology Workshop June 11, 2015

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Technologies that Drive Operational Performance and Associate BehaviorFMI Connect Retail Innovation & Technology Workshop

June 11, 2015

Quick Introductions

2

Laura Dunn Nelson• VP of Business Development – Alchemy• 20+ years food industry expertise

Ric Agostini• VP of Client Services – Catalyst Awareness• 20+ years helping leading food retailers with communications

programs for loss prevention, safety and risk

Raj Shah• Chief Strategist - Alchemy• 25 years strategy and technology experience

Our Combined Client Experience

We impact the behavior of 2 million employees each month at 14,000 + locations

3

Front-line Associate Engagement is Key

4

Safety (Food & Workplace)

Productivity

Customer Satisfaction

Loss Prevention

Associate engagement drives behaviors that impact…

Millennials: the Main Talent Source for Retailers

5Source: Deloitte Digital Democracy Survey, 9th edition

But only 31% of Employees are Actively Engaged…

6Source: Gallup.com January 28, 2015 Employee Engagement Study

Engaged32%

Not Engaged51%

Actively Dis-engaged

18%

U.S. Employee Engagement, 2014

Gallup defines engaged employees as those who are involved in, enthusiastic about and committed to their work and workplace.

…and Millennials are the LEAST Engaged

7Source: Gallup.com January 28, 2015 Employee Engagement Study

Millennials Gen X Baby Boomers Matures0

10

20

30

40

50

60

70

80

Unengaged Workers by Age Segment (in %)

Millennials are Even Harder to Engage

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•“Digital Natives”- Don’t know world without smartphones/tablets- Live in 6-10+ screen households

•8-second attention spans - Burst vs. sustained- Different stimuli needed

•Learn through “Experiences,” not books/manuals- Want to know “why,” not just “what”

Attention Spans are Declining

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12.5 seconds

8.25 seconds9 seconds

2000 2015

Source: National Center Biotechnology Information April, 2015

Millennials Learn Through Experiences

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Millennial Characteristics Learning Mechanism

• Multimedia (Audio/video/kinetic)• Multi-device (smartphone, tablet, laptop)

Competitive

Collaborative • Social media & group learning (vs individual study)

• Real time feedback/scoringImmediate

• Benchmarking to peers

Interactive

Three Critical Associate Engagement Gaps

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1The Two-Way

CommunicationsGap

3The Experiential

LearningGap

2The 8-Second

Attention SpanGap

Three Critical Associate Engagement Gaps

12

1The Two-Way

CommunicationsGap

3The Experiential

LearningGap

2The 8-Second

Attention SpanGap

Traditional Vehicles Provide One-Way Communications

• Message Boards• Posters• Leadership Binders• Manager Flipcharts• Manager Coaching Cards• Banners• Incentives

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Bridging Two-way Communications Gap with Social Media

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Confidential and Proprietary

Bridging Two-Way Communications with Knowledge Sharing and Newsfeeds

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Associate Engagement Growth

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May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-150

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

3,529 3,8814,474

5,1015,755

6,646

8,353

9,848

11,854

13,473

15,015

16,532

Number of Questions per Month

Three Critical Associate Engagement Gaps

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1The Two-Way

CommunicationsGap

3The Experiential

LearningGap

2The 8-Second

Attention SpanGap

Bridging 8-Second Attention Gap: Live Digital Signs at C&S Wholesale

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Bridging 8-Second Attention Gap: Live Digital Signs at Large Restaurant Chain

19

Three Critical Associate Engagement Gaps

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1The Two-Way

CommunicationsGap

3The Experiential

LearningGap

2The 8-Second

Attention SpanGap

Confidential and Proprietary

Overcoming Experiential Learning Gap: elearning at Weis Markets

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• Bring communications to life with highly engaging animations, content, and learning reinforcement exercises

• Investment of 5 – 7 minutes each month per Associate

• Participation and comprehension reporting

• Reach of over 14,000 Associates each month

• Foundational change at Weis, that has lead to many opportunities

Weis Markets Results

F O O D SA F E T Y

fewer WC

reduction in failed state inspections

45%

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SA F E T Y A S S E T P R OT EC T I O N

258fewer GL 59Bottom line2M

Shoplifting Prevention48%

Increase in Operational Recoveries

79%

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Overcoming Experiential Learning Gap: Using Gamification in Training

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Confidential and Proprietary

Overcoming Experiential Learning Gap: Using Gamification in Training

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Confidential and Proprietary

Gamification : Real-time Leaderboard Use Case

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34% increase in retention

61% no racetrack 82% with racetrack

Overcome “Experiential” Learning Gap: Augmented Reality

Augmented Reality • New Hire Orientation provides

Associates with on-the-floor, immersive,

real-time experiences

• Uses Tablet’s built in camera to interact by triggering markers at specific checkpoints

• Triggers launch enhanced 3D and CGI content placed over the live store image to illustrate the particular message in context, on location and in the Associates hands

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Three Critical Associate Engagement Gaps

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1The Two-Way

CommunicationsGap

3The Experiential

LearningGap

2The 8-Second

Attention SpanGap

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Q & A

How to Participate in Social Q&A

1.Click the “Ask” button to submit a question 2.You will be able to see the questions that

other attendees are asking

3.If you see a question that you want answered, you can up-vote it by clicking on the arrow on the left-hand side of the question

4.The most popular questions automatically rise to the top.

Laura Nelson [email protected] Agostini [email protected] Shah [email protected]

Presenters:

Thank You