In theory, a technology’s value should outstrip its use. But in many of the areas we research, we find retailers have often been coaxed into implementing various technologies before realizing the value for their specific needs. This has happened all too often in stores, in particular, and is either usually the result of fear that if a retailer doesn’t ride a particular wave, they will be left out or because so much infrastructure technology must be implemented before any value can be had from the investment.
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.
Small Town Blues
Small towns have been in the retail news a lot lately, and not for the best of reasons. In particular, Walmart’s announcement that it would close more than 150 U.S. stores has caused many small towns to cry foul because of lost tax revenue and the impact to local employees and consumers. That complaint is the flip side of the concern expressed for years that Walmart’s entry into a local market destroys small businesses.
Small Retailers: Missing Their Mobile Window?
Small retailers are currently faced with a tremendous opportunity with mobile technologies. By leveraging their nimble nature, and because they consistently operate fewer stores than large chains, small retailers stand to fold more mobile solutions into the entire shopping experience than their larger competitors.
‘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”.
Where Are Mobile’s Biggest Opportunities?
As a shopper, what do you use your mobile phone for most? I’m asking in the traditional retail, sense, of course — not the texting between social media sessions or weather checks (all of which can factor into retail shopping these days). But more in the sense of finding a store, or searching for merchandise, or creating a shopping list, or checking order status…
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.
Small Retailers: A Dilemma For Tech Services Providers
RSR’s E-Commerce study indicated that small retailers place far higher hopes on digital than the largest retailers do as a way to secure their futures. While that may seem a little counterintuitive (after all, the largest retailers have the most wherewithal to develop the digital side of their selling environments), the smallest retailers see digital as a way to make the shopping experience more enjoyable for their consumers, and thus insulate themselves from large impersonal competitors that otherwise could crowd them out with their big assortments and super-low prices.
