There are various degrees of cloudiness, or various layers of it, if you want to look at it that way. But there’s a huge difference between a company that has outsourced its hardware and basic infrastructure support, and a company that is all-in on a multi-tenant business software solution, with no customizations or extensions to that solution.
History of Omni-Channel. Merchandising In The Crosshairs
Merchandising is typically based on planning two ways – top down and bottoms up. In the top down scenario, the retailer declares a growth target: “We plan on growing sales by 5% next year.” And then it is up to merchandisers to figure out where and how that growth will come. If the retailer is on the ball, they then reconcile these two – the expected budgets for revenue and the expected number of units sold – to see if they come anywhere near each other in terms of expectations.
Why Bringing Digital Into Stores Won’t Work And How To Prevent That Outcome
The biggest mistake I see in store technology implementations is a “build it and they will come” mentality. Or one that is overly focused on driving sales. Don’t get me wrong – the main objective of in-store activity should be to drive sales. The store is where 90% of sales are transacted, and anything that takes focus away from that risks jeopardizing a business model that is already stressed.
History of Omni-Channel: The Future
It’s been fun writing this series on the History of Omni-Channel. However, I’ve run out of history, so it’s time to start looking to the future.
The State of Omni-Channel in Mexico
Mexico is a unique opportunity for both eCommerce and omni-channel. It’s the second-largest economy in Latin America, but nearly 80% of the population is located in urban areas — and one large urban area in particular, centered on Mexico City in the interior of the country. eCommerce is a small percentage of overall retail sales — only 2-3%, based on multiple estimates. But, typical these days, there is a high penetration of smartphones, encompassing nearly 60% of the population.
The Fallacy Of Retail’s Cost To Serve
A couple of weeks ago I was talking to a technology company sales executive, who at the time was trying to make the case that retailers needed to do a better job of managing their cost to serve. Basically, if a shopper engages with a retailer in, for example, the store channel, the retailer should be doing everything in their power to incent the customer to stay in that channel and not use any others, because the more channels a customer uses, the more expensive the transaction is.
The Core Components Of Retail Transformation
Microsoft has historically been very product-focused, as Chris readily admitted. But the company’s success doesn’t depend on its products, it depends on its customers. Sound familiar? Chris talked about focusing on earning fans. I have the feeling those are two deliberately chosen words.
‘Shopper Journey’ Doesn’t Mean What You Think It Does
A couple weeks ago I was on a briefing call with a vendor who started talking about customer or shopper journeys in a way I’d never heard before. They were talking about journey design and how to incent consumers to take desired next steps in the “journey process”.
When Did Tech Companies Lose Their Point Of View?
As you know, we are right in the middle of conference season, and I’ve been pounding the pavement for the last few months, with another month ahead of me. Here’s a phrase I’ve heard over and over from the tech vendors I’ve visited, which has grown tiresome: “Any way they want it.” This is in reference to their (retail) clients, and to the vendor’s willingness to bend over backwards to get their retail clients whatever they need.
eTail West 2016 Trouble in eCommerce Paradise?
Last week I attended eTail West, an eCommerce conference that has been held for years in Palm Springs. It has been several years since I attended eTail West — not since 2009, to be exact. To say that the show has expanded significantly since then is an understatement. But even the attendees who have continuously…
