This article was first published by Retail Week on 31st December 2015
Star Wars caught the imagination at the close of 2015 but the film franchise that holds greater resonance for retail is surely Back to the Future.
October 21, 2015, was the date on which Marty McFly and Dr. Emmett “Doc” Brown arrived to the future in the second instalment of trilogy. The film debuted in 1989 and the passing of its most famous date last October prompted reflection on what had altered in 25 years. For retail the changes were seismic. In 1989, Walmart was the world’s third largest retailer with $25.8 billion in sales. Amazon didn’t exist. Neither did Alibaba. On 11th November 2015, Alibaba posted sales of $14.32 billion in a single day. Singles’ Day in China.
Given these significant transformations, just what will 2016 bring for retail?
Rubbish into fuel
The COP21 conference in Paris provided impetus for retailers to bring environmental issues into sharp focus as their customers demand transparency from business and value for their values. The reality in 2016 will be new stores that aim to be self-sufficient in energy, more electric delivery vehicles, and the roll out of charging points in car parks.
The movies might suggest plastic characters taking orders but the reality is more profound in the shape of Robotic process automation (RPA) in the supply chain and in-store systems that can provide digitally-led customer experiences.
Machine-to-machine interfaces have the ability to predict and match a consumer’s needs to real-time availability, location, price and delivery. The customer experience is improved and increasingly personal, while the retailer can improve responsiveness while reducing costs and inefficiency.
Assuming retailers have not replaced their staff with robots, the simplest way to connect them with the cloud and the rest of the salesforce will be a wearable device. This will simplify regular retail procedures and improve customer experience.
CXO trumps CMO
“We can’t advertise our way out of a problem we behaved our way into”. Tesco CEO, Dave Lewis, talking about the challenges the global retailer faces.
Proactive retailers are looking at their organizational behaviours to ensure they stay connected with their customers. UK retailer Game has taken an innovative approach to customer experience, not only building an award-winning app that brings together all its store tools and loyalty scheme into a very convenient mobile solution for the customer, but also empowering its managers to create a community of gamers around each store.
Everywhere, Instant & personal
People do not care about on-line, bricks and mortar or m-commerce, they want to move seamlessly between environments, platforms and devices to fulfill their shopping missions. They don’t care if something is advertising or design, shopper-marketing or promotion, social or CRM, they simply want the best experience.
Back to the Future of Retail will require brands and retailers to inspire the three human behaviours that drive purchase: search, shop and share. But, in tackling the most modern of shopping behaviours, they must not lose the shop keeping skills of the past. Know your customer and give them what they want, when they want it. Make it easy and convenient to buy and deliver value for their values.
Now what would Marty McFly make of all that?