A compelling digital strategy finds a balance between maintaining what you already offer while providing new, disruptive ideas that will get you to next level, hold off competition, and entice new customers. We present five digital essentials to help you rise to the challenge.
The NRF’s Big Show is underway and already there’s a lot of information out there to consume and reflect upon. I thought it would be helpful to compile some insights and thoughts around some of the most talked about retail technologies at NRF this year.
Supply Chain and Commerce
“The last mile wars are just beginning.” – Sucharita Mulpuru of Forrester, on retail shipping.
“Shipping to a commercial address is much cheaper than to residences. Therefore physical stores have an economic advantage as fulfillment centers.” – Sucharita Mulpuru of Forrester, on retail shipping.
“Less than half consumers will pay more than a 5% premium for in store convenience.” – data derived from Forrester.
Analysis: Price has and will matter, but the digital conveniences are achieving parity with physical conveniences. Ultimately these experiences will converge.
“Mobile allows for dynamic, personalized pricing to drive in-store loyalty.” – Sucharita Mulpuru of Forrester
“Email still matters for consumers to complete transactions and marketers need to be aware emails are being consumed via mobile device.” – Sucharita Mulpuru of Forrester
“20% or more of marketing budgets will be spend on social this year.” – Ginni Rometty, CEO of IBM
Analysis: Much of what was shared at CES this year around supports the need for a frictionless experience with consumer electronics through payments, natural language applications and interfaces (APIs) to these products. Much of this can be applied to mobile application development for retailers.
Big Data and Analytics
“The advances in big data will be with the growth of in-store data sources.” – Sucharita Mulpuru of Forrester
“Big data is indeed a buzzword but it is one that is frankly under-hyped.” – Ginni Rometty, CEO of IBM
“Pervasive instrumentation is driving sources of analytical data.” – Ginni Rometty, CEO of IBM
“Data is a natural resource. Those that are nimble and can leverage capabilities will be most successful using big data.” – Ginni Rometty, CEO of IBM
“80% of all data has been created in the last two years.” – Ginni Rometty, CEO of IBM
Analysis: Retailers need to set a goal to work towards molding descriptive, predictive and prescriptive analytics together for “smart analytics”.
Echoing author Clayton Christensen, “Figure what your customers unmet needs are”, and Steve Jobs, “What incredible benefit we can give to the customer” – as compiled by Phil Terry, CEO of Creative Good, Inc.
“Data is not sufficient to create a transformative experience. It is no replacement for going to the field and seeing it first hand.” – Phil Terry, CEO of Creative Good, Inc.
“It’s a mistake to focus what customers say and not follow what they do.” – Phil Terry, CEO of Creative Good, Inc.
Analysis: You have to go where your products and service provide value to your customer. How I’ve referred to gemba: https://blogs.perficientdigital.com/2011/07/14/go-to-the-gemba/
“Anything you offer as a product you need to think about how to offer it as a service.” – Ginni Rometty, CEO of IBM
“We need to distinguish between systems of engagement and systems of record.” – Ginni Rometty, CEO of IBM
Analysis: Understand your customer and provide them the means of engagement on their terms.