Observations From Shop.org

Some thoughts and observations as a result of attending Shop.org's annual Strategy and Innovation Summit down in Florida last week. 

Attendance was way down from prior years.
Not a big surprise.  This has been a tough few months for retailers and it will continue for a while.  However, online retailing has done well in comparison.  Many retailers were still represented at shop.org, but fare less attendees per retailer.  Also there were many senior execs there.  For retailers, online is the area of hope (and growth) for 2009.

A tale of two strategies
There seem to be two different strategies being talked about, both at the sessions and in the hallways.  One strategy was we need to "cut, cut, cut", and hold on and wait for the recovery.  The second strategy was a time to fight, take share, innovate and rise above the competition -- and do it as cost effectively as possible.  Now while I understand what drove some folks to take the first strategy, it sounds like a death march.  How long can you get away with cutting costs to keep up with dropping revenues and market share?  Probably not long enough to survive.  Yet, a strategy of focusing your efforts on moving up, gaining market share is a drive to success.  I pick the second strategy every time.  Remember that what this economy has brought us is a very competitive environment.  The same number of people competing for a shrinking (or not growing) pool of consumer spending.  Those that can win the competition will survive and thrive.  Those that lose the competition will lose...and probably not exist in the future.  And how do you win - you satisfy your customers.  A satisfied customer will buy more, recommend more and is the last one to leave.  A dissatisfied customer jumps to the competition at the first chance they get.

Is it the year of mobile?
While there was a lot of talk about mobile, mostly centered around creating a merged channel experience; bringing the web into the store; the best comment I heard was it "was the year of the mobile, just like it has been since 1999".  Similar to the point above, those that move forward will win and those that don't will lose.  Just imagine this scenario, people are shopping in your store and when they find the product they want, they grab their iphone to check the product reviews.  But you don't have a web/iphone application so they go to Amazon and lo and behold, they order from Amazon with a simple click on their phone instead of in your store.  Not a good scenario (unless you are Amazon).  Much better if they are on your mobile/iphone app checking those product reviews, product specs, etc.

Simplicity?
Sat in on a presentation with a focus on simplicity.  I have to disagree with this.  This may have worked in a simpler time, where the rising tide lifted all retailers.  Not any more.  The competition is not going to be simple.  Unfortunately we have learned that the data you gather, the metrics you use are not going to be simple.  If we simply focus on conversion we will miss huge opportunities.  If we simply focus on bounce rate we are will miss huge opportunities. And if you are a multi-channel retailer and you simply focus on online sales you will miss huge opportunities.

 We have learned time and time again, there is not only one important metric, there is not only 1, or 2, or 3 important questions to ask.  Those that can take data and turn it into information will have the building blocks of success at their fingertips.  We need to move away from trial and error, we need to move away from gut instinct.  We need to apply scientific rigor to all we do. 

Simplicity leaves us with data, science takes that data and turns it into information.

Spend 10% of your budget on tools and 90% on people?
Another suggestion from a presenter and another one I have to disagree with.  Now this was said in context of metrics, data and analytics.   If you have to rely on that kind of an investment in people you are missing the science that is available to you.  This is not a very scalable model, and only as good as the people you have on your team.  We should be able to rise above that. We should be able to set up a system of metrics, a system of analysis and by utilizing scientific and proven techniques be effective. Now, if you have simple data you may need that many people to make sense of it.  But there are better ways -- take advantage of them.

It was much warmer in Orlando then it was in Ann Arbor
It was a shock to the system returning from Orlando to negative temperatures in Ann Arbor.  While I would love to show all my shop.org colleagues around beautiful Ann Arbor Michigan, I was quite glad to spend a few days in the warmer climate of Orlando.

Comments

[aion kinah online]

This is not a very scalable model, and only as good as the people you have on your team.