1. A New Retail Roadmap Analytics Innovation for Airports & Retailers
March 14th 2018
Alex Arifuzzaman
Partner, Interstratics Consultants

2. About Me
Alex Arifuzzaman is a Founding Partner of Toronto based InterStratics Consultants Inc. which specializes in advanced and innovative analytics to drive corporate strategy at retailers, shopping centres, airports and eCommerce organizations. 
He has worked on retail analytics projects globally for over 20 years, including some of the largest retail, ecommerce organizations and the retail at a number of airports, including Dubai Airport. 
Alex holds an MBA from the Rotman School of Management,  He also teaches Retail Analytics to MBA students at the Schulich School of Business in Toronto.

3. How Much Information?
Researchers at the University of Southern California took four years , 1993, 2000 and and extrapolated numbers from roughly 1,100 sources of information. 
Credit: Todd Lindeman and Brian Vastag/ The Washington Post

4. Good news: More insights, better decisions, more profit
2021
Good news: More insights, better decisions, more profit
Bad news: Information overload, noise, cost, skills rapidly obsolete
Solution: Must be selective, innovative, leverage analysis- Focus
Emmett Cox (Retail Analytics)
“Data without use is overhead”
2014
2007
2000

5. So What?
Retail is Transforming Analytics measures the underlying force linking consumers and retailers – driving this transformation

6. Analytics at Airports & Airport Retail
Traditionally Airports have been “Islands” that were independent from the rest of the retail in the community
Consumers now have more information… but so do the retailers…. harnessing this information is key
Pricing
Leveraging Location Insight
Analytics

7. Retail Analytic Paradigms
Type of Information
Modeled
Extrapolated
Complete
Direction of Analysis
Examine Past
Evaluate Present
Predict Future
Traditional Strategy
Surveys & POS Analysis
Airlines & Amazon

8. Complete vs. Partial Data
Online Companies and Airports have data on 100% of their customers, traditional retailers do not.
Information imbalance gives significant advantage to online in understanding their customers on many levels and acquiring new ones
Retailers have always had to model or extrapolate their customers – new tools are changing that

9. Pricing

10. Pricing
Airlines are the master of Pricing – every customer and every product (flight) offered a unique price
In airport retail it is basically the same pricing structure that has existed since airports have been created - now driven by traditional market analysis
Things are changing – consumers have been conditioned
Opportunity to leverage data to maximize margins – surveys do not work for this
Online and Airlines can be a model

11. Next Best Offers
Allows you to present to a consumer the product that they will be most likely want next
Retailers with private label credit cards allow them to collect information at the consumer level

12. Retail Margin by Category

13. Leveraging Location Insight

14. Leveraging Location Insight
In the past surveys answered questions on where customers lived or worked
Then we were able through loyalty or credit cards dive deeper and look at transactions and some cross shop
Now aggregated (de-personalized) data can answer questions on everyone who walks by the store customer or non-customer and track marketing effects

15. Where are the Tourists in Toronto?
Pearson Airport
Downtown

16. Location of Consumers : 2 hrs before and 2 hours after visiting property
Source: Data from Uber Media – Pre-Post Report ubermedia.com

17. Consumer Distribution By Day of Month
Source: Data from Uber Media – Zero Point Report

18. Consumer Distribution By Hour of Day
Source: Data from Uber Media – Zero Point Report

19. Unlocking the Consumer Journey Leads to Better Decisions
Gaining a comprehensive understanding of the offline consumer journey unlocks limitless opportunities for your business and helps you make better business decisions.
What would you like to know?
How often do consumers
visit my store?
How much time do they spend in store and when?
How is my Brand performing vs. competitors?
Where should I open my next store?
Which stores are over- and underperforming?
Is my campaign driving consumers to store?
cuebiq.com

20. Some Public Examples What drives online visits Social Media Analytics
Locals vs Tourists -  
Twitter by Device -  
Foursquare Pulse of Cities  

21. Analytics

22. So What?
Retail is Transforming Analytics measures the underlying force linking consumers and retailers – driving this transformation Linking different data sets is where the value lies Overall goal is to develop model of customers that can be linked, measured and scaled

23. Must Look at Big Picture
AI Hedge Funds Got Crushed the Worst Ever During Selloff: Machines Learned the Wrong Things in One-Way Market
selloff-machines-learned-the-wrong-things-in-one-way-market/

24. Algorithms Need Managers Too
THE CAUSES
All algorithms share two characteristics: They’re literal, meaning that they’ll do exactly what you ask them to do.
And they’re black boxes, meaning that they don’t explain why they offer particular recommendations.
January–February 2016 Harvard Business Review

25. Innovators Dilemma Disruptive technologies
Lower apparent economics... In short term
Must switch to new model economics and away from extrapolation

26. Algorithms Need Managers Too
THE SOLUTION
When formulating algorithms, be explicit about all your goals. Consider long-term implications of the data you examine.
Make sure you choose the right data inputs
January–February 2016 Harvard Business Review

27. Thank You
Alex Arifuzzaman Interstratics Consultants Inc. 1 Yonge St. Suite 205 Toronto, Ontario Canada Twitter: alex_ari