The buzz in retail these days is “omnichannel” – we see slogans such as “Engage with Today’s Omnichannel Consumers,” “Develop Your Omnichannel Business” frequently. Cisco itself uses this word often. But in all honesty, I don’t think many people fully grasp the concept and its potential. And I don’t know of any retailer that has a complete approach to it. That’s right: None.
Omnichannel retailing is about opening the store, its products, and services to shoppers in an immersive way that drives customer interaction across any point of access, at any time. “Omnichannel” is not just about connecting existing systems, it’s a transformational way to look at how you conduct business.
Becoming an omnichannel retailer is a broad undertaking, and many retailers are creating new executive positions to lead this strategy. However, I think these companies may be missing the boat. When thinking about omnichannel strategies, consider three key points:
First, a customer-centric strategy cuts across all organizations in the business – it can’t be sidelined into one business function such as IT. I often consult with retailers who experiment with different capabilities in a disconnected way; essentially, they throw technologies at the wall and wait to see what sticks. Instead, why not start by asking, “What does my customer want? How can I build a loyal relationship with them?” It’s all too easy to assume that showrooming is the enemy. But, really, why, for example, is Amazon successful? It’s not because they are available on a mobile phone. It’s because they are easy to do business with, offer good pricing, and deliver quickly. It’s about the way they address customer needs.
Next, I think stores often try to do too much at once (see wall-sticking, above). Instead, I recommend a phased approach that starts with the low-hanging fruit – projects that have the highest probability of effectiveness and can be measured against business targets as a whole. Every store has its niche, and one size does not fit all. By achieving rapid successes up front, retailers gain funding for the next piece of the strategy, building from success to success.
Finally, accept the fact that an omnichannel business will change how people work. Are you avoiding Internet access because you think associates will waste time surfing the web? Some may – but your good salespeople will be able to leverage online information to help them serve shoppers. Concerned that showrooming on the floor will drive customers away as they find lower prices online? Build your own identity, brand, and incentives into the online environment to drive sales. Worried that an online storefront or call center will undercut in-store sales? Run the numbers on losses over time as consumers find your store is the only one without convenient mobile customer support.
Omnichannel is not about the technology. Rather, it’s about finding the best outcome for you and your shoppers. To achieve success, IT and business must work together to solve customer problems for the store as a whole – there’s no other way to do it with complete success. Check out this great blog by Cara Waters, Five Lessons in Retail Trends.
I love retail trivia! Comment below if you know the answer to this question: What is the oldest US retail company?
Black Friday. Holiday Travel. Consumers have a more Enjoyable Experience and Businesses are Successful
Thanksgiving is around the corner and the holiday season will be upon us. What will Black Friday look like this year? I know that this is a time when things get more chaotic in my household. As my kids get excited for a break from school, and we all look forward to extended time with family and friends, we must first get through all the holiday preparations and planning. Am I better off ordering gifts for my wife and kids online versus going to the store? Do I want to deal with crowds and getting lost in a retail haze on Black Friday or Christmas Eve? And where will we spend our holiday vacation this year? Will we have access to Wi-Fi wherever we go should I need to check email, or so my kids can watch their favorite shows on Netflix?
This also got me thinking about the questions that keep businesses up at night during the holiday season. These include:
How can I have a one-to-one engagement with every customer or guest?
How can I get more customers into my venue?
How can I avoid showrooming?
How can I efficiently use my physical assets and human resources to ensure my venue is set up to maximize customer flow and staffing?
How can I stand out from the crowd and compete with rival brands?
And advertisements – how can I make them specific to the consumer in my venue rather than generic for many?
Taking these business concerns into account and listening to our customers have prompted Cisco’s Enterprise Networking Group to team up with Facebook to enable businesses to turn their challenges into opportunities. We’ve looked at how consumers can have a more connected experience while in business venues and at the same time how the business can improve the engagement with consumers while they are in the venue. We want to make this year’s holiday season more pleasant for everyone.
For that last few years, Cisco has been watching the impact of the Internet on transforming the retail industry. As more people, processes and things are connecting to the Internet, retailers can capture more data to better predict when and where consumers will want to buy and capture more revenues.
Today, Cisco released Internet of Everything research that equates to $81 billion globally in 2013. But this represents only 45% of the opportunity that could be gained by the Internet of Everything. Retailers could have realized an additional $99 billion this year if they were more connected across their operations. The good news is that retail IT executives are confident that can capture this value. On average, retail IT executives rated their ability to capture Internet of Everything at 7.2, on a scale of 1 to 10.
Hello, and welcome to my inaugural blog! I am happy to be here sharing my thoughts and experiences with you, because I have to tell you: I have the coolest job in the world.
I’ve spent my entire life in retail, starting as a part-time worker while in school and moving up through merchandising and operations to regional vice president at Shopko Stores, Inc., overseeing the work of 12,000 employees. Over more than 20 years, I fell in love with the whole process of retail. When I was invited to work in the retail technology sector, it seemed a natural extension of the work I was already doing. Relatively few tech companies build their solutions around store needs – too often, they tend to focus on technology for technology’s sake. In fact, sometimes retailers do the same thing! I saw an opportunity to impact how vendors – and retailers – think about technologies that truly add value to the business.
Today’s trend toward mobility, or BYOD, is a great example. I’m sorry if this shocks you, but mobility without a strategy has no value at all for the retailer! I have seen stores invest in Wi-Fi networks while continuing to build cell-based apps – this despite Wi-Fi’s higher speeds, more flexible capabilities, and ability to improve the shopping and selling experience. They don’t want employees surfing the Internet, so they block employee access to the network and information that could help improve sales. They understand that shoppers are “showrooming” – sharing opinions and comparison shopping online from the store – but do not leverage the same behavior to promote products and analyze customer trends.
Mobility is a vehicle for improving the business, an extension of overall strategy. (You might like to check out this Lippis Report on “Monetizing Public Wi-Fi in Business to Consumer Relationships.”) I work with companies to help determine how to use such vehicles to define the customer experience, collect and manage large masses of data, and make store operations more efficient. I also help design the Cisco solutions that solve these retail business problems.
Join me on a journey to learn how stores are approaching, managing, and dealing with today’s innovations and how they are meeting customer needs. We’ll talk about how stores are using today’s systems, the most recent trends, the latest research, and how retailers are dealing with this very rapidly changing industry. Please get back to me with your own stories and questions in the comments section.
One more word: I love retail trivia! Comment if you know the answer to this question: What retailer in the country has the highest amount of sales per square foot of its stores?
Ever felt that you’ve spent half your life searching for a parking space? Well, it’s not that much of an exaggeration. One study estimates that typical drivers spend 2,549 hours of their lives in the aimless, money-wasting, and gas-guzzling quest for a place to park.
Now imagine that through technology — connected cars, roads, and, of course, parking spaces — you could substantially reduce all of that wasted time and money.
Unfortunately, business and enterprise are rife with their own versions of wild goose chases for parking spaces: supply-chain deficiencies, checkout bottlenecks, quality-control failings, communication breakdowns, and, yes, clogged parking lots. These are but a few of the drags on productivity, efficiency, and innovation.
The solution for all these problems may be the same: connectivity.