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Loss Prevention Analytics

Gaining a New View of Retail Shrink

July 2013
Deena Amato-McCoy
July 2013
Loss Prevention Analytics: Gaining a New
View of Retail Shrink Analyst Insight
Eager to combat loss across their enterprises, retailers are rapidly adding Aberdeen’s Insights provide the
more intelligent solutions to collect data about the incidents causing shrink. analyst's perspective on the
However, too many retailers still rely solely on historical data when shaping research as drawn from an
loss prevention (LP) decisions. Unfortunately, historical data alone may not aggregated view of research
be enough to understand what is truly causing these detrimental losses. surveys, interviews, and
Retailers need to link existing loss prevention tools and strategies to data analysis.
intelligent analytics and reporting platforms to gain real-time — or near-
real-time — access to information that will not only help them understand
the causes of shrink, but combat it as well.
Some retailers are already making efforts to improve their loss-related
business intelligence initiatives. According to Aberdeen’s April 2012 report,
The State of Loss Prevention in Retail: Controlling Losses and Maximizing Profits,
43% of companies have integrated business intelligence exception-based
reporting in an effort to stay abreast of what causes shrink, and respond to
these incidents in a more proactive manner.
As more retailers adopt these tools, they too get better at managing data
and staying one step ahead of shrink. Aberdeen surveyed 99 retailers
between March 2012 and April 2013 to understand current pain points that
shape LP strategies, and prompt the use of more intelligent reporting
solutions. It is these solutions that will help them better predict
occurrences, and ultimately, make better loss prevention decisions.

The Ever-Changing Challenges of Shrink


Retail shrink has always been an unavoidable cost of business, however new
considerations are intensifying the overall impact. Conventional factors, such
as shoplifters or internal theft, continue to haunt retailers, however newer,
more complex threats have upped the ante. Today, loss stems from a rise in
organized retail crime rings (ORC), hampered visibility into the demand
chain, and a lack of resources needed to monitor the execution of daily
operations, such as store-level replenishment.
Combined with the long-lasting effects of the global economic recession,
retailers must deal with their thinnest operating margins, something that has
forced companies to trim the fat across all operations, including loss
prevention. Companies remain conditioned to “do more with less,” which
makes it difficult to respond to ever-growing shrink levels.
When asked what pressures currently caused the most strain across loss
prevention strategies, retailers agreed that internal theft was their top
concern (Figure 1). Internal theft has always been an issue for retailers, but
This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and
represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.
and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 2

incidents are on the rise. Currently, 41% of retailers report that employee Survey Respondents
theft of merchandise, as well as failures within front-end procedures, like Individuals answering this
cashier shortages and deposit discrepancies, are taking a toll on operations, survey came from diverse
compared to only 17% of retailers reporting the same information last year. geographies, industries, and
corporate roles:
Figure 1: Pressures Facing Retailers Compared Year-over-Year
Industries:
√ Retail – 59%
√ IT Consulting Services – 15%
√ Wholesale / Distribution –
15%
√ Manufacturing – 8%
√ Healthcare / Pharm – 8%
√ Food / Beverage – 7%
Roles:
√ C-Level – 19%
√ VP / Director / Manager –
64%
√ Others – 19%

Source: Aberdeen Group, April 2013 Geography:


√ North America: – 50%
Meanwhile, growing ORC threats are creating havoc at store-level. These
professional, deep-rooted crime rings take a toll on 34% of retailers, a √ EMEA – 28%
drastic jump from 12% in 2012. Another 21% of retailers struggle with √ Rest of the world – 23%
identifying and investigating these, and other store-level incidents, according
to Aberdeen’s data. Size of Enterprise:

Part of the challenge in fighting these thieves is a lack of overall visibility into √ Small (less than 100
these events. More than one in three retailers (38%) either lack the visibility employees) – 16%
needed to detect these large-scale thefts incidents or don’t have credible √ Mid-sized (between 100 and
data available to forecast these losses. The retailer pays for these crimes 1,000 employees) – 24%
with their lost profitability; however, these losses also filter down to their
√ Large (more than 1,000
consumers in the form of increased commodity prices.
employees) – 60%
Rather than continue to be violated by these different scenarios of shrink,
retailers are reconsidering their LP strategies and determining a new game
plan — one that gives companies more insight into issues that are
jeopardizing profit.

Using Transactional Data to Combat Shrink


As retailers reconsider their LP strategies, the first priority is to determine
if they are successfully monitoring business operations and using relevant
business data to solve their losses. Historically, retailers outfitted stores
with technology solutions that focused on fighting the traditional definition

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 3

of loss — thieves who made a habit of stealing any merchandise they could Fast Facts
discretely conceal and remove from the store. Based on current business Among the top process
pressures, however, retailers need to expand their spectrum of loss beyond capabilities used to support LP
the bad guys. Instead, today’s LP strategies must address and adopt more strategies are:
sophisticated processes that can improve operational efficiencies and
√ 88% – Centralized collection
visibility, and in the end, recover lost profits.
and storage of transaction
For many companies, this task falls in the hands of their centralized loss data
prevention department, a group often comprised of regional loss prevention √ 73% – Conducting regular
managers who are responsible for activities across several stores. To ensure audits of merchandise safety
that no activity or event is overlooked, successful companies’ LP task forces and security
consist of cross-functional teams, with representation across many lines of
business, such as store operations, sales audit, field marketing, inventory √ 69% – Regular reporting of
store transaction
management, and revenue. According to Aberdeen’s April 2012 report, The
management functions, such
State of Loss Prevention in Retail: Controlling Losses and Maximizing Profits, 53% as store returns, manager
of retailers relied heavily on their cross-functional team to establish, exceptions and overrides,
manage, and execute LP strategies across the enterprise. cash back, refunds, etc.
It is a more balanced approach compared to decentralized teams that
permeated throughout the industry, yet operated ineffectively. In fact, 61%
of companies relied on decentralized in-store LP teams responsible for
managing day-to-day LP processes and training, according to Aberdeen’s
December 2007 report, Real-Time Loss Prevention: Changing the Game in Store
Fraud.
Within the last five years, retailers that successfully augmented these in-
store teams with centralized ones have adopted new LP strategies, training
and executing operations to fight new sources of shrink. This trend will
continue going forward as 48% of companies plan to add such teams this
year. Their success however, is contingent on consistent training and policy
support. For example, 60% of companies already hold district and regional
meeting for LP best practices, and 48% support enterprise-wide training for
internal policies and procedures. Over the next 24 months, another 24% of
corporate teams will host these regional meetings, and 33% plan to extend
training throughout the enterprise.

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 4

Figure 2: Strategic Actions to Mitigate Shrink, Year-over-Year

Identify and investigate organized retail 37%


crime cases 36%
Use video intelligence to reduce
number of internal and external theft 37%
cases
32%
Improve fraud data management for 26%
exception based reporting 24%
Use electronic article surveillance / 22% 2013
source tagging to deter shoplifting 27%
2012
Improve store loss prevention 22%
response to organized retail crime 3%

0% 15% 30% 45%


Percentage of Respondents, n = 66 (2012)
& n = 33 (2013)

Source: Aberdeen Group, April 2013

The cross-functional team’s top strategy is to understand all causes of


shrink, whether they stem from traditional, unconventional, or operational
sources. Besides monitoring traditional areas of risk (such as internal theft,
shoplifting, and poor execution of store operations), 37% of companies are
eager to add new solutions to identify and investigate organized crime cases
(Figure 2). While many companies still detect incidents using traditional
measures, including electronic article surveillance (EAS) and source tagging
programs, closed circuit televisions (CCTV), and pedestal alarms, thieves
are only getting smarter and sneakier, a factor prompting companies to
augment these traditional tools with intelligent solutions that can deliver
insight into the bad guys’ every move. This is confirmed by the 22% of
companies still relying on EAS and source tagging to snag potential
shoplifters — a slip from 27% last year.
Retailers need insight to predict when, where, and how these incidents will
occur, which is a desire that pushes more companies to consider how
robust reporting can contribute to their LP strategies. Currently, 37% of
retailers (a slight increase from 32% last year) are bullish about adding video
intelligence not only to bolster LP plans, but also to reduce the number of
internal and external theft cases they currently experience. Similarly, 26%
are improving their fraud data management efforts related to exception-
based reporting, an effort that can streamline reporting operations going
forward. Meanwhile, Aberdeen’s current data reveals that 22% of companies
expect each of these strategies to improve their response to organized
retail crime.
Rather than solely rely on tools that merely report loss following the
incident, retailers are learning how reporting tools can enable them to
predict shrink-related activities and proactively protect their customers,
merchandise, and, ultimately, profits.
© 2013 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 5

A Renewed Role for Analytical Reporting


With a renewed focus on reporting and analytics, retailers are prepared to
use these tools to unleash the important information they collect during LP
cases and apply it to ward off future incidents. As a result, retailers are
integrating traditional sources, such as EAS, CCTV, with more intelligent
solutions such as radio frequency identification (RFID) and combined EAS /
RFID tags, then creating a business plan that leverages analytics and
reporting tools to extrapolate information stored in these intelligent
solutions.
When defining the top capabilities needed from these solutions, the focus is
on gathering the most actionable information possible. That said, 73% of
retailers require that these solutions support regular merchandise security
and safety audits, a jump from 67% last year (Table 1). Another 60% of
companies expect loss prevention data garnered through video surveillance
technology to optimize merchandise assortments and more strategically
pinpoint product placement — key components when evaluating LP cases.
(This is a jump from 52% of companies in 2012.)

Table 1: Loss Prevention Capabilities


Currently Planned to
Used Implement
Regular audits for merchandise security and safety 73% 23%
Historical theft analysis 67% 25%
Loss prevention data and video surveillance used
for merchandise optimization and product
placement 60% 20%
Ability to track customer count with camera
surveillance and electronic article surveillance
(EAS) data 50% 15%
Ability to track positive and negative order /
quantity store inventory adjustments 48% 36%
Real-time theft analysis 43% 43%
Source: Aberdeen Group, April 2013

Meanwhile, 50% of companies realize the value of merging camera


surveillance with EAS data to track customer counts, another factor that
comes into play when understanding the navigation and purchase patterns of
shoppers related to LP cases. (This is a significant jump from 34% of
companies in 2012.) While fewer companies expect these tools to help
them track positive and negative orders, and inventory quantities and
adjustments (48% in 2013 vs. 60% in 2012), the high level of interest proves
that retailers are keeping a keen eye on item movement, and what rate of
loss is due to external sources, internal thieves, or poor operational
execution.

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 6

Historical data is a great place to create a baseline of LP incidents, but


details from weeks or months ago are not accurate enough to predict or
detect what is currently happening in stores. By merging real-time data with
historical information, retailers can more accurately forecast the best ways
to combat — and stay ahead of — shrink. To date, 67% of companies still
rely on historical information when analyzing LP incidents, but 43% of
companies are ready to embark on real-time theft analysis — more than a
10% jump from 31% last year. Retailers are so bullish on real-time data that
another 43% of companies plan to make this transition as they firm up their
LP analysis plans for the next 12–24 months.
With more event data filtering into centralized databases, retailers are
sitting on a goldmine of information, details that can provide definitive
visibility into sources of loss. The sooner they can access real-time data, the
easier it will be to predict where their biggest challenges are.
Detection: The First Step in Merchandise Protection
As retailers revamp their current LP programs with new solutions necessary
to fight fraud, they are evaluating the effectiveness and continuing role of
conventional LP detection tools. CCTV remains the top tool within many
LP arsenals. In fact, companies using this solution to monitor point-of-sale
activity — a high source of loss across all retail segments — has increased
by 15% year over year (70% in 2013 vs. 55% in 2012) (Table 2).

Table 2: Enabling Technologies

Currently Planned to
Used Implement
Close circuit television (CCTVs) video
surveillance on POS registers 70% 17%
Mobile audit handheld devices 58% 29%
Business Intelligence exception-based reporting 52% 35%
LP business intelligence tool 46% 38%
CCTV video surveillance with video intelligence
software focused on risk areas 43% 26%
Video intelligence software 36% 32%
EAS analytics 26% 22%
Cloud-based reporting and monitoring solutions 13% 38%
Source: Aberdeen Group, April 2013

As more companies blend smart technologies into the mix, many expect a
significant change in the level of detail they will collect. For example, 58% of
retailers are transitioning to mobile auditing devices, including smart phones
and tablets — a significant increase from 28% usage last year. One reason
for the 30% increase is the strong value proposition connected with
deployment of multi-functional smart devices. By programming devices with
“apps” for customer engagement as well as auditing operations, customer-

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 7

facing associates are empowered to deliver personalized customer service


while still completing day-today operations.
Case in Point: Sears Considers Mobility to Monitor Loss
Prevention

Eager to fight new sources of loss, retailers are considering innovative,


intelligent loss prevention tools. This is an area where mobility will be
gaining traction in the near future.
Sears Holding Co., Hoffman Estates, Ill., like many companies, is
evaluating the value of mobile solutions to enhance customer intimacy
and streamline the store-level experience. One area Sears is exploring is
putting smart technology into the hands of its associates to streamline
the in-store selling and checkout experiences. However, this will also
impact the coverage of Sears’ existing LP technology, such as closed
circuit television systems.
“As transactions move away from the traditional cash wrap into the
aisles, camera coverage needs to be expanded,” said Bill Titus, vice
president of loss prevention and safety at Sears. “It also requires our LP
team to have more access to video data.”
The company is also trying to decipher how these digital devices will
impact their loss prevention strategies. “As more transactions happen in
store aisles, our LP team needs access to [associated] video,” he added.
One option is to make store-level smart technology multi-functional. By
uploading software or “apps” that link smart devices to video analytics
and other LP dashboards, retailers can leverage their hardware
investment when the devices are not being used for selling and checkout
operations. According to Aberdeen data, 25% of retailers already use
real-time loss prevention monitoring and alerts to store locations, often
via dashboards. Another 46% plan to add this functionality within two
years. Some companies are moving this information off desktops and
laptops, and into the hands of busy managers via multi-functional mobile
devices.
When considering these multi-functional tools and projects, Sears also
discussed that a cross-functional team is imperative. “When you create a
collaborative group comprised of members of IT, operations,
merchandising, LP, and other lines of business, you create a strong
partnership, one that adds value to IT roll-outs and defining potential
areas of loss,” Titus explained.
By having representatives from operations, IT, and LP for example, each
group can look at the project openly from their perspective, and
consider how potential projects will impact operations, affect loss, and
attract criminals or hackers. The more far reaching the cross-functional
team, the more prepared retailers will be for successful IT
implementations.

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 8

RFID tags are also being added to LP strategies. With the ability to deliver
real-time access to information that can enable retailers to make more
strategic decisions, RFID is a viable solution that gives retailers a firm leg up
on the bad guys. Unlike EAS tags, which are passive solutions until they
come in contact with a dedicated reader, RFID tags are embedded with an
active chip that holds characteristics of the merchandise it is attached to, as
well as item movement as each tag is detected by dedicated readers. As
tagged merchandise comes within the vicinity of dedicated readers, product
data is transmitted to a database, alerting retailers to item movement
throughout the supply chain, warehouse, and at store-level, in real-time.
While adoption remains low, interest is growing. Currently, 13% of retailers
use RFID, and another 21% plan to invest in the technology within the next
two years. Similarly, 13% already use RFID on an item-level basis, to
monitor item movement across the enterprise.
These examples illustrate that by exploiting smart technologies, retailers are
able to collect a goldmine of real-time information. This data will become
the foundation needed to uncover their top sources of shrink.

Analytics: Detecting the Roots of Loss


The real game-changing element for retailers is how they use the
information they collect. For example, 22% of companies collect and use
item-level RFID loss data to refine their LP strategies, a jump from 7% last
year. What drives this commitment? The answer is RFID’s ability to deliver
real-time access to information — a pre-requisite to making more strategic
decisions and taking more proactive measures in the fight against loss.
As they make real-time data monitoring a priority however, retailers must
transition to more robust analytical tools to immediately pinpoint sources of Fast Facts
loss and better predict incidents. It is these tools that will help retailers gain While options are plentiful, the
insight into new aspects of loss across their business — details that will following are among the top
improve how they define loss, and how to predict and combat their biggest priorities retailers plan to add
culprits of shrink. to their LP arsenals in the next
12 to 24 months:
According to Aberdeen’s April 2012 report, The State of Loss Prevention:
Controlling Losses and Maximizing Profits, 41% of companies already used √ 45% – Case management
business intelligence (BI) exception-based reporting to sift through volumes software
of data as a method of uncovering business highs and lows, and used this √ 39% – Defensive
information to make better loss prevention decisions. Another 22% of merchandising
retailers planned to add a BI platform in the near future. Fast-forward 12
months to 2013 … and commitments are growing. Currently, 52% of √ 38% – Cloud computing
retailers use some form of BI.
The adoption of smart tools, such as RFID, also creates new data streams
comprised of informational nuggets that, through reporting, can improve LP
strategies. Yet, oftentimes companies’ current BI tools are unable to
support this rising volume of information. In fact, internal data is growing by
56% year-over-year, doubling every 19 months, according to Aberdeen’s
February 2013 report, Big Data Trends in 2013.

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 9

This influx of information, often referred to as “big data,” grows on a


seemingly daily basis — making it increasingly difficult for companies to
harness critical information. Similarly, companies able to manage big data
realize more business value, improve product and service innovation, and, in
the case of LP, gain detailed performance information to rectify errors, as
well as forecast scenarios and deliver more value company-wide.
As these data levels continue to rise however, too many companies fail to
achieve these goals. In fact, only 36% of companies currently access detailed
performance information necessary to rectify errors, and a mere 17% of
retailers use data to predict capabilities needed to solve product and
customer problems, according to Aberdeen’s June 2012 report, A New
Retailing Paradigm: Solving Big Data to Enhance Real-Time Retailing.
If it can be harnessed, this data can drive insights that greatly reduce retail
shrink. As a result, retailers are adopting a new generation of analytics, one
being video intelligence. With access to digitally recorded media, 36% of
retailers (an increase from 24% in 2012) currently use this solution to view
specific details surrounding both operational and merchandise-based shrink.
(Thirty-two percent (32%) of retailers will add the reporting platform over
the next two years).
Keeping in line with the value of leveraging real-time data, predictive
analytics also affect decisions based on collected big data. For example, 43%
of companies already use predictive analytics to ensure big data contributes
to valuable, actionable information, according to Aberdeen's February 2013
report, Big Data Trends in 2013. (Another 47% of companies plan to make
this move in the next year.)
The impact of these reporting tools becomes even more significant when
retailers merge them with specific LP databases and dedicated reporting “For us, loss prevention
tools, including BI. This option has become so popular that usage has initiatives are not only key in
doubled since 2012, with 46% of retailers currently using LP-specific deterring theft and
maintaining profitability;
analytics tools. Another 38% plan to add loss-prevention BI tools in the next
efforts also protect our
24 months. company’s brand
Others are taking efforts to the next level by linking reporting tools [reputation].”
exclusively to EAS tagging systems. While retailers were only getting their ~John Maher, Executive at
feet wet with the technology last year (16%), interest is growing. Currently, Harold Levinson Associates
26% of retailers use EAS analytics to bolster LP strategies, and another 22%
plan to add the functionality within the next 12 to 24 months.
Similarly, linking video intelligence software to CCTV video surveillance is
quickly becoming a priority within LP strategies. Currently, 43% of retailers
use the technology to focus on key risk areas (up from 36% in 2012), and
another 26% of retailers plan to follow suit in the next two years.
For retailers to remain agile and make accurate predictions to forecast LP
events, some retailers operate their reporting strategies through cloud-
based analytical platforms. The cloud is an appealing proposition for a
variety of reasons, including a reduction in information technology (IT)

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 10

“LP has taken on more of a


detective role, reviewing and
infrastructure and maintenance costs, more efficient operating systems, researching transactional
speed to market, and a lower total cost of ownership. exceptions and follow-up on
unusual trends. It is currently
While some companies still shy away from the cloud, mainly put off by a planning to become more
fear of having sensitive operational and customer-specific data exist outside proactive, by developing LP
of the proverbial “four walls” of their personal data centers, retailers opt strategies and policies /
for virtualization in areas of non-mission critical operations, or those that procedures to help prevent
will not impact business operations in the event of losing access to virtual theft and improve safety.”
databases. Loss prevention reporting is one of these processes. ~Director of Finance, Large
While interest year-over-year remained minimal (13% of companies used North American Apparel
Company
cloud-based reporting in both 2012 and 2013), retailers are re-evaluating
the benefits and creating adoption plans. In 2012, 20% of companies planned
to make their move toward cloud-based reporting and monitoring solutions
in the next 12 to 24 months. This year, that amount has almost doubled,
with 38% planning to move their LP analytics to the cloud by 2015.
Whether considering virtual tools, conventional solutions, or integrating
dedicated LP databases and analytics, retailers are convinced that reporting
tools will continue playing a mission critical role in the fight against shrink.
With access to accurate details surrounding specific loss-related incidents,
as well as details needed to make improvements and protect their
enterprise from loss, integrated LP analytics will position retailers to make
better decisions in how to proactively combat loss.

Key Takeaways
Loss may be an expected cost of doing business across the retail industry,
but retailers cannot sit idle and let shrink overrun their profitability. Many
are adopting more intelligent solutions that detect shrink more accurately.
Yet, retailers must remain mindful of the influx of data these innovative
tools create. By adopting reporting solutions that deliver the insight needed
to make better loss prevention decisions, retailers will be better prepared
to fight shrink and protect margins. Following are a few tips that can make
the transition easier:
• Adopt intelligent data collection solutions to gather the
most actionable information possible. With 38% of retailers
lacking the credible data necessary to forecast loss prevention
events at store-level, the need for real-time data is more important
than ever. While traditional measures, such as EAS and CCTV,
remain important weapons within a retailer’s LP arsenal, smart
solutions, including RFID, video surveillance, and mobile solutions,
deliver the real-time information required to stay one step ahead of
sneaky thieves. Among these innovative tools are video surveillance
solutions (already used by 72% of companies), mobile auditing
devices (used by 58% of companies), and RFID. While only 13% of
surveyed retailers currently use RFID and RFID-enabled mobile
devices respectively, a combined 53% of retailers (21% using RFID
and 35% with RFID handhelds) will integrate these into their LP
plans over the next 12 months.
© 2013 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897
Loss Prevention Analytics: Gaining a New View of Retail Shrink
Page 11

• Create dedicated LP resources. New collection tools are


creating higher volumes of LP information, making it even harder to
manage multiple data sources and databases. To ensure data gets
into the right hands, create centralized resources that provide LP
teams with one location to visit and gain a single view of data.
Currently, 88% of companies collect and store this dedicated
transaction information.
• Uncover opportunities through more robust reporting and
analytical tools. The key to truly improving loss prevention
strategies is to get real-time visibility into loss — a factor that
requires retailers to adopt more robust analytical tools. These tools
include the move to more LP-specific BI and exception reporting
(46%). Other in-demand LP reporting tools include LP case
management (analytical) software (36%), and EAS analytics (26%).
Companies that can support consistent, measured reporting
processes will uncover the details needed to reduce loss rates and
improve profit.
For more information on this or other research topics, please visit
www.aberdeen.com

Related Research
Big Data Trends in 2013; February 2013 The State of Loss Prevention in Retail:
Controlling Losses and Maximizing Profits;
A New Retailing Paradigm: Solving Big April 2012
Data to Enhance Real-Time Retailing; June
2012 Real-Time Loss Prevention: Changing the
Game in Store Fraud; December 2007

Author: Deena M. Amato-McCoy, Research Analyst, Retail & Consumer


Markets (deena.amato-mccoy@aberdeen.com)
For more than two decades, Aberdeen's research has been helping corporations worldwide become Best-in-Class.
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(800) 456-9748 or go to http://www.harte-hanks.com.
This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies
provide for objective fact-based research and represent the best analysis available at the time of publication. Unless
otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be
reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by
Aberdeen Group, Inc. (2013a)

© 2013 Aberdeen Group. Telephone: 617 854 5200


www.aberdeen.com Fax: 617 723 7897

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