Being Remarkable · Brand Marketing · Customer experience · Digital · Share of attention

The new retail ecosystem: NRF edition 

For quite some time, we’ve thought about stores, catalogs and the internet as distinct shopping entities. Today the blended channel is the only channel.

For quite some time, we’ve run our retail businesses as a loose affiliation of vertical departments and systems. Today we see that brands are horizontal and that silos belong on farms.

For quite some time, we’ve talked about customers “going online.” Today, most customers practically live online and there is a “nowness” to marketing that we’ve never experienced.

For quite some time, we’ve said that product is everything. Today, product is clearly important, but experience has a way of making product secondary.

For quite some time, the front door of our store was literal and faced the street or the interior corridor of the mall. Today–increasingly–it is often virtual. And dynamic. And you’re probably holding it in your hand right now.

For quite some time, we started to believe that physical stores were dying and that most categories would be revolutionized by “online only” brands. Well, physical retail IS becoming different, but it’s not going away. And–plot twist–pure play retail is on its death bed.

For quite some time, we’ve evaluated store closings on the straightforward four-wall profit contribution and costs of exiting a lease. Today, a physical location is merely one manifestation of a brand, serving to fulfill a digital intent while also serving as a gateway to e-commerce–a relationship portal of sorts.

For quite some time, marketing was mostly one-size-fits-all. Today, as the world grows ever noisier, it’s harder to detect the signal amidst the clutter, the cacophony and the downright boring. The burden has shifted to becoming more relevant, more personalized, more remarkable.

At NRF, we’re already hearing some speakers make some or all of these points as if they are revelations, when they are merely after the fact observations and, more likely than not, strong evidence of a lead from behind strategy.

The new retail ecosystem has been coming into shape for more than a decade. The most salient and actionable points have been obvious for years. That is, if one were really paying attention and truly committed to a plan of action.

As much as I might hope that the really juicy and useful stuff were shared at a conference in a room filled with the competition, alas, my experience tells me otherwise.

 

 

 

 

 

Digital · Frictionless commerce · Mobile · Retail · Share of attention · Winning on Experience

Retail’s new front door

In a “brick & mortar first” world, retailer’s embraced the old adage: location, location, location.

Once the site was determined, a lot of time and money went into the design of the store–with a particular emphasis on making it as strong a magnet for consumer traffic as budget and inspiration would allow. Then the visual and marketing teams went to work, creating attractive window displays and generating eye-catching promotional signage, all with the goal of capturing the customer’s attention as she walked or drove by. If these marketing strategies worked, they would lure her across the threshold and the retailer would have a chance at a sale.

Today, it’s rapidly becoming a “digital first” retail world. More retailers are reporting that the majority of customers start their consumer decision journey online. More and more brands are discovering that a very high (and growing) percentage of new customer acquisition is occurring through a digital channel, not a physical one. And when we say “digital”, it’s increasingly likely we mean some sort of smart mobile device. The power of the traditional store front is waning.

In the vast majority of categories, brick & mortar is not going away. As I like to say, physical retail will be different, not dead. In many cases, stores will remain critical to generating sales, but their role in acquiring a new customer, generating repeat business or building on-going customer engagement and loyalty is diminishing–and, in many cases, quite rapidly.

Right now, for many brands, for many consumers, for many shopping occasions, retail’s new front door is a smart mobile device.

So if your brand’s mobile experience isn’t compelling, the odds of capturing a new customer aren’t that great. If the mobile experience doesn’t help reduce friction for an existing customer (in or out of a store), good luck getting that repeat business. If the mobile experience doesn’t position your brand well in those key decision points that my friends at Google call “micro-moments”,  there’s a pretty good chance you aren’t making that sale.

Embracing the notion that mobile is becoming your brand’s new front door can be profound.

It forces process redesign and budget re-allocation. It requires breaking down the silos that exist in the channel-centric thinking, organization and metrics that persist in so many retailers. It causes us to admit that if we don’t win in a digital channel it barely matters where our stores are located, how good they look, what products we carry or whether we’ve got great salespeople. Heresy, some might say.

It’s apparent that there are quite a few retailers that get this new reality and are acting accordingly–and often boldly. For them, the precise end-game is anything but clear, the path is hardly smooth, but they are in the arena, taking risks, investing where they need to be.

Yet far too many others are merely treading water or paying lip service to this new world order. Sadly they are crippled by legacy thinking and systems, burdened by a store-first culture, unwilling to let go of the past, even when it’s obvious it’s not working. Unless they pivot soon and decisively it’s fairly certain that this will end badly.

 

 

Being Remarkable · Customer experience · Innovation

When the shift hits the fan

Shift happens. And it’s never been more expansive and dynamic.

The shift from brick & mortar to e-commerce.

The shift from “going online” to living online.

The shift from traditional media consumption to a digital first model.

The shift from silo-ed customer experiences to harmonious ones.

The shift from highly intentional shopping to more spontaneous “micro-moments.”

The shift from isolated customer journeys to those that are deeply connected.

The shift from brands’ being in control to empowered consumers who are increasingly calling the shots and dictating their requirements.

The shift from one-size-fits-all to highly personalized interactions and marketing. The end of mass, the beginning of us.

Confronted with these profound shifts, the tendency of many organizations is to go on the defensive. Overwhelmed by the shifting tides–and afraid to take risks in a fast-moving and highly uncertain environment–they circle the wagons to fight the changes or develop plans to cope with them. But survival is not enough.

When shift happens our goal has to be to understand it, to accept it and to go through it rather than around it. We must embrace it in a desire to thrive, not simply survive.

And most importantly, we need to get out in front of it well before it hits the fan.

H/T to Seth