Posts tagged: mobile

Social, mobile and other bright, shiny objects

It’s official. Social media and mobile commerce are this year’s bright, shiny objects. I recently attended a couple of industry conferences where those two topics dominated the agendas, and the trade mags and email newsletters are full of articles on everything social and mobile.

Heck, I’ve also written a white paper and blogged about social media.

Don’t get me wrong. I think social and mobile are important opportunities for us to improve our businesses. I just don’t think we should focus on them to the exclusion of some of the core aspects of our sites and businesses that still need a lot of work.

The level of our success with any of these new technologies is going to be limited by the effectiveness of our core site capabilities and constrained by any internal organizational challenges we might have.

Here are some topics I’d love to see get a little more press and conference content time:

  • Usability
    From my vantage point at ForeSee Results, where I can see customer perceptions at many different retailers, it’s clear that our sites have not come close to solving all of our usability issues. In fact, I’ll go as far as saying improving usability is the #1 way to increase conversion. I’m currently reading a book called “The Design of Everyday Things” by Don Norman. The book was written in the ’80s (I think) so there’s no mention of websites. Instead, he talks a lot about the design of doors, faucets and other everyday objects and, most interestingly, the psychology of we humans who interact with these things. The principles he discusses are absolutely relevant to web page design. Other books, such as “Don’t Make Me Think” by Steve Krug and anything by Jakob Nielsen are also great sources of knowledge. I’d sure love to see us cover these types of topics a little more in our conferences and trade mags. Also, how do different retailers approach find and solve usability issues? In the end, if the experiences we create aren’t usable our social and mobile strategies won’t reach their potential.
  • Organizational structure
    How often do we come back from a conference with great new ideas about implementing some new strategies (say, a new social media or mobile commerce strategy) only to run into competing agendas, lack of resources or organizational bureaucracies? Discussing and writing about organizational structure doesn’t have the panache of social media or other exciting new frontiers, but there’s little doubt in my mind that the structure of our organizations can make or break the success of our businesses. When we were first setting up the organization for the new Borders.com, we spent a LOT of time studying the structures of other companies learning about the pros and the cons from those who lived through different schemes. It was hugely useful and more interesting than you might think. Mark Fodor, CEO of Cross View, just wrote an excellent piece for Online Strategies magazine that discussed the hurdles involved in going cross-channel and included a very good discussion about the need for mindset shifts. I’d love to see these topics further explored in interactive environments at industry conferences.
  • Incentives
    Books like Freakonomics make strong cases for the fact that incentives drive our behaviors. I’d love to hear how other companies set up their internal incentive structures. And there are multiple types of incentives. Certainly, there are financial incentives that come in the form of bonuses. But there are also the sometimes more powerful social incentives. What gets talked about all the time? How do those topics of discussion influence people’s behaviors? How do all those incentives align with the needs generated by new strategies to maximize the power of social media or mobile commerce?
  • Data/analytics storytelling
    We have so much data available to us, and we all talk about being data driven. But how do we get the most from that data? How do we use that data to form our strategies, support our strategies and communicate our strategies. John Lovett of Web Analytics Desmystified wrote an excellent piece on telling stories with data recently. There are also several great blogs on analytics like MineThatData, Occam’s Razor, and the aforementioned Web Analytics Demystified. I’d love to see more discussions in trade mags and conferences about how to get the most from our data, both in analyzing it and relating the findings to others.
  • International expansion
    We used to talk a lot about international, but it doesn’t seem to be a big topic lately. Yet the opportunities to grow our businesses internationally are immense. So, too, are the challenges. Jim Okamura and Maris Daugherty at the JC Williams Group wrote an absolutely excellent white paper late last year on the prizes and perils of international expansion. Jim did have a breakout session at last year’s Shop.org Annual Summit, but I’d love to see more discussion from retailers who have gone or are going international to learn more. Or it would also be good to hear from those who simply ship internationally or those who have decided to stay domestic to learn more about their decision making processes.
  • Leadership
    Leading lots of people and convincing big, disparate groups to do new things is hard. I just read the book Switch: How to Change Things When Change is Hard by Dan and Chip Heath. There are some amazing tips in that book about implementing change in organizations (and in other parts of life, for that matter). I would love to see more discussion of these types of leadership topics that help us all implement the changes we know we need to make to take advantage of new opportunities like social media and mobile commerce.

I know a lot of these topics are more business basics than retail or e-commerce specific. But the reality is we need to be our absolute best at these business basics in order to implement any of our new ideas and strategies. I personally always enjoy talking to other retailers about some of these basics, and I certainly never tire of reading books that expand my horizons. I’d love to see more about these topics in our conferences and trade mags.

But these are just my opinions. I’d really love to know what you think. As a member of the executive content committee for Shop.org, I’m actually in a position to influence some of the excellent content that my good friend Larry Joseloff regularly puts together. But I’d love to know if you agree or not before I start banging the drum. Would you mind dropping me a quick comment or an email letting me know if you agree or disagree. A simple “Right on” if you agree or a “You’re nuts” if you don’t is plenty sufficient; although, I certainly appreciate your expanded thoughts if you’d like to share them.

Please, let me know what you think of my little rant.


Predicting the Future of Retail

The world is changing incredibly fast — maybe faster than ever — primarily due to rapid technology innovations. If our business models don’t keep pace, we’ll quickly be left behind. Since I believe that defending the status quo is what kills companies, thriving and surviving requires somewhat accurately predicting the future. So I thought I’d take a few moments to predict the three advances I think will most affect retail in the next 15 years.

I’ll start with an easy one:

1. Just about everyone will be connected at high speeds at all times

Heck, we’re almost there now. Technologies like WiMax and its successors will be incredibly prevalent in 2024. Furthermore, screen size will no longer be an issue. Innovative technologies like OLED will allow for large foldable and rollable screens that can be neatly tucked into devices the size of ballpoint pens. But it won’t just be mobile devices that are connected. Our cars, our clothes, our sunglasses, our appliances and just about everything else will be connected. Everyone will have exactly the information they need at any given time immediately accessible at any point in time.

2. Video communications advances will make today’s office spaces almost extinct

This one is where I’ve met with the most dissent when I’ve discussed it with people. I think we’ll all have wall-sized screens in our homes that allow us to have life-sized video conversations with people, and that technology will allow us to telecommute in massive numbers. So many people will telecommute that offices as we know them today will no longer make sense. Our co-workers will be spread throughout the globe, yet our communications with them will come close to the same quality we have today with someone in the same office.

The normal argument I hear against this prediction is that nothing can take the place of the types of in-person conversations we have today. That may be true, but maybe we don’t need that level of quality for the vast majority of our office conversations. We’ve proven over and over throughout the years that we’ll trade quality for convenience. In communications alone, we’ve traded phone conversations for what used to be in-person conversations. We’ve also more recently traded the higher sound quality and reliability of land line phones for the lesser sound quality and lesser reliability of mobile phones. Texting has replaced email for many, and even instant messaging has frequently substituted for in-person conversations. I’ve seen people IM each other even though they’re sitting in directly adjacent cubicles where they could have easily just spoken in normal voice.

I’ve used current versions of video conferencing that are pretty impressive. I once attended a meeting at Google’s Ann Arbor office where we met with people in Google’s Mountain View office via video conference. After a couple of minutes adjustment, I felt like we were in the same room. We were even drawing on the white boards for each other.

This particular technological advance will also be driven by environmental concerns and continuously rising prices of fuel. The “world is flat” phenomenon may also be a significant contributing factor as companies will be able to leverage their use of these technologies to hire the best talent available regardless of physical location.

3. Supply chain advances will make same-day delivery commonplace

One of the most often cited advantages of physical retail over e-commerce is the immediate gratification available at a local store. This advantage will not hold for long. I can just about guarantee someone at Amazon is currently trying to find a way to deliver most of their goods to almost anyone in the same day. They’re actually already doing it for some items in some cities today. And they’re not alone. The auto parts retailers have long been able to deliver parts to commercial garages within an hour. In fact, I can imagine the types of distribution networks built by auto parts stores becoming a model for many retailers. Supply chain professionals are some of the most amazing people I’ve ever met.
They are constantly finding new efficiencies in their processes, and I have no doubt they will be able to solve the issues associated with same day delivery.

Do these predictions sound crazy?

If so, think back 15 years to 1994. Hardly anyone had mobile phones or emails. Amazon didn’t exist, nor for all practical purposes did e-commerce. Those of us who connected to the internet did so on dial-up modems at 56k speeds. We’ve come a long way in the last 15 years, and I don’t see any sign of us slowing down for the future.

So, what does this mean for retail?

Many of today’s current physical store advantages are going to be neutralized, so multi-channel retailers are going to have to significantly change their business models. Furthermore, the commonplace usage of video conferencing will likely cause population shifts and cause the need to shift real estate strategies. I can see some people migrating towards urban environments to satisfy their needs for more personal interaction in their social lives, and I can see others going the opposite direction and moving to rural environments to satisfy their needs for more solitude and outdoor living. Suburbs as we know them today will have less appeal and may see significant population decreases.

As I think is already the case today, the retailers who create the best customer experiences across all channels are best positioned to thrive in the future. As retail becomes increasingly self-service via customers’ constant connections to retailers and to each other and to general information everywhere, it’s going to be the retailers who get customers the right information in the right way at the right time and with the best overall customer experience who will garner the most loyalty among customers.

Retailers with physical stores may consider leveraging those physical stores as distribution warehouses while maintaining selling spaces that are in many ways showrooms. Retailers will need to consider whether or not distribution and delivery should be outsourced or become core capabilities. Will sales associates and delivery drivers become one in the same? Will sales assistance occur both via video conferencing and via direct discussion on a customer’s doorstep? Is that crazy from a customer’s perspective or incredibly convenient?

I believe the retailers who best leverage their cross-channel capabilities today will be best positioned for this brave new world. And those who attempt to protect the status quo will face pressures from all fronts.

There are lots of other things that could happen in the next 15 years that are potentially even more radical than anything I’ve predicted here. But one thing’s for sure: there can be no doubt the retail landscape 15 years from now will be very different from what we see today.

What do you think of my predictions? Even more importantly, what are your predictions? How do you think retailers should react?

Retail: Shaken Not Stirred by Kevin Ertell


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