Innovation In Retail: The Informed Shopper Is A Happier Shopper
from the information-is-king dept
This post is part of an Intel-sponsored series of posts we'll be doing here at Techdirt on the topic of innovation. The series consists of a video interview of myself (which you'll see below), the post, and another video interview with an Intel representative and others. That second video, obviously, is content from Intel, but my video and what I've written here was done with complete and total editorial independence. We hope you enjoy the content and take part in the overall discussion.In some ways, many people think that the world of physical retail is "over." It's been killed off by online retail. In fact, I recently heard someone refer to the challenge faced by a large brick-and-mortar retailer as "having to do more than be Amazon's showroom." But there are some interesting opportunities coming. First up, here's a brief video of me discussing the possibilities:
In some ways, this is already happening via smartphones. The fact that people can access all sorts of content via their smartphones means that some of that information is already there. But the next challenge will be for retailers themselves to provide more value through realtime information as well. The challenge is in making sure that information is really what's useful to the consumer, and not just useful to the retailer. The temptation will be to provide limited and/or biased information to push people into buying as soon as possible (and possibly the most expensive item). But unbiased and fair information can build up trust, and trust can make a buying decision much easier.
Beyond just the obvious stuff of providing the same kind of online information (reviews/specs/videos) to people in a store, let's take things a step further. Imagine a kind of open API that allows for others to provide additional information about a product. If you're buying vegetables, imagine an API that lets you easily find suggested recipes for those vegetables -- which could also check with a listing of what you already have at home and/or the store you're in and other nearby stores, to figure out how to buy whatever else you need.
For years, we've heard of retailers dreaming up the ability to text message you with a coupon as you walked by a store -- but that's an idea that's likely to piss off plenty of people, if they don't want such things. But imagine a system that lets you let stores within a certain area bid for your business. You want a cup of coffee? Set a radius, put the coffee shops you dislike on a blacklist, determine a weighting of price vs. distance vs. taste -- and see who offers the best deal.
As with pretty much anything these days, the real disruption, and the real innovation, come in making the consumers' lives significantly better in ways they didn't expect. The tools that will work and the tools that will wow are the ones that aren't so much focused on just improving retailers, but in making the consumers' lives improve. The end result, of course, for retailers who implement such systems will likely be improved bottom lines as well, but if they're just focused on improving their bottom lines without taking the consumers' viewpoint into account, it's unlikely they'll be all that successful.
Along those lines, the real lasting benefits for retailers may come from something as simple as connecting people to other people. One of the issues I've had with buying things in the past is the uncertainty of whether or not the product is right for what I need. I recently installed a new dishwasher and it required both some new tools and some new materials. I actually ended up watching some videos online before heading down to the store to pick up things, but even then I wasn't entirely sure what I was buying was what I actually needed (turned out, it wasn't, and I ended up making two additional trips that day to the store to buy/return things). While I had asked the one random store employee I found wandering among the aisles, they weren't really sure. But imagine if, from within the store, I could explain the job, take a quick picture of certain items, and reach out to a community of experts on the subject who could let me know if I really had the right tools for the job or not.
Similarly, when I ran into problems with the install, what if various retailers could tell me what I was doing wrong/missing -- and bid for my business with a complete package of everything I needed. Best package deal -- ready and waiting for me next time I came in? Sold!
In the end, what it comes down to is that by providing more information for the consumer, allowing them to better connect and improve the overall process, you improve the whole experience. Taking the guesswork, hassle or inconvenience out of shopping can be a huge win for retailers who want to compete against the online world by offering more immediacy, more information and a better overall experience.
Below you can see a video of Intel helping to enable just that kind of retail innovation
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Filed Under: innovation, retail
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Anyone else starting to feel like Mike is selling out? Stuffing ads into the discussion is pretty tacky, and not really good for the relationship between the blog and it's readers, IMHO.
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SOLD OUT / Re:
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Re: SOLD OUT / Re:
Hi Ron. How've you been?
btw, what sellout? The fact that Techdirt has ads? That's called "selling out"? Why?
It seems to me to be very clear what blogposts are advertorial in nature, and what blogposts aren't, which is a lot more transparant than your average newspaper.
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Re: Re: SOLD OUT / Re:
However, taking your stock in trade (in this case blog postings and the discussion of), and turning them into ads it a sell out. Example:
"below you can see a video of Intel helping to enable just that kind of retail innovation"
Actually, it is really "below you can watch the informercial that sums up everything I have been paid to say here". You can no longer tell what is Mike's own words, and what is someone hand up his ass turning him into a puppet.
Worse yet, it drags on to other posts. Are his partners in the (mostly ignored) step two project paying him enough to say certain things? I pointed out the other day how suddenly those companies get more mentions than before. Are any other posts "pay to play"?
It is why the FTC has some guidelines on these sort of things. Most blogs that run "pay for play" posts tend to post them with different colored backgrounds or different fonts and usually with the words "ADVERTISEMENT" above the posts. That is done to clearly separate the paid posts from the editorial content.
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Re: Re: SOLD OUT / Re:
There is no doubt that someone is more transparent than they would like.
Traditional journalism has been imploding for the last decade. While there have always been journalist , or should I say PR hacks posing as journalists for hire the general decline of journalism has driven many more people into the business.
I have been involved in many businesses for over forty years now and my experience is that PR hacks have very flexible ethical standards. To put it bluntly the majority are whores and con artists. TechDIRT Drivel, it sure looks like a PR operation.
Now I do think Mike has some merit, in that he does good First Amendment work. If only that was the case elsewhere.
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Brick and Mortar need to stop "ignoring" online
But they won't match online prices. The funny part: the add was from Best Buy online. They had different prices in the 2 places and would not match them.
Brick & Mortar need to add value to the experience of shopping there, in addition to meeting the prices.
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Re: Brick and Mortar need to stop "ignoring" online
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Re: Brick and Mortar need to stop "ignoring" online
I got my Toshiba laptop from a Best Buy store. I'd researched the heck out of it. I printed up the exact page WITH the price from Best Buy online and showed it to the guy at the check out. (The price online was $100 less.) They matched it then and there as I was paying.
Then again, this was a little over a year ago. But my brother did the same thing recently with something else and they matched the price.
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Re: Brick and Mortar need to stop "ignoring" online
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Re: Brick and Mortar need to stop "ignoring" online
It depends on the staff. Some will match and others won't. I have also been refused a price match because the price was below cost and the sales clerk said they didn't have to match it.
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Re: Brick and Mortar need to stop "ignoring" online
A few years ago I decided enough was enough and started buying almost everything online. I save money and aggravation.
For more expensive items the saving in price easily covers next day delivery and more.
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back to basics?
Business at large seems to be focused on how much money will I spend. In my life, that is not necessarily the first question I ask. My first question is how long is this going to take? How long am I going to have to wander through a store, find out they don't have what I need and then wander through the endless succession of other stores (only to find out that I'm apparently very weird or so untrendy that no one has it).
Clue to business - I pay 1 cent more for gas because the cheaper place has the slowest pumps imaginable. I might pay a little bit more for groceries but the store I go to doesn't have food on one side of a giant store and paper and pet products all the way on the other. Convenience.
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Sometimes engineers over-think and create problems that don't exist. A good application of a smart shopping agent might be to make meal suggestions before you buy anything at all. Usually, if I put something in my basket I have a purpose in mind for it already.
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Catch up to the online marketplace.
I was shopping for storage in Bed, Bath, and Beyond, but all the options were poorly made and over priced. I scanned the bar code on the one that seemed to be the best built, and Home Depot had it for $20 less (online only though). I ordered two from my phone.
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You bring people in and they will spend money in there, if you don't they won't is just that simple.
Once record stores where places where fans came in to talk and meet people it was the scene, they forgot that and failed.
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So why should a "community of experts" help you for FREE?
http://www.techdirt.com/articles/20111006/02502316233/norway-latest-country-to-look-censorsh ip-as-solution-to-entertainment-industrys-failed-business-models.shtml
Justify that all you want, but experts aren't required to subsidize you with hard-gained knowledge of dreary little things while you fly all over the world for /entertainment/.
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Re: So why should a "community of experts" help you for FREE?
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Re: Re: So why should a "community of experts" help you for FREE?
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Bricks & Mortar Just Aren't Relevant Anymore
I would love to go into a B&M establishment that is intuitive and thought-provoking and keeps me guessing as to what really cool new thing is going to show up next, but the reality is that commoditization is where most retailers are at. I don't want to reward any business that treats me like sheep, either with my money or my attention, but that's all I'm being offered. More marketing is not the answer (dear God help me, it's not); B&Ms can only compete on personalization, fun, and things that make you go WOW! Getting a price check for all the coffee shops in the area might help me find the cheapest cup of coffee today, but it's not going to make me call up my friend and talk about it. This is just another form of commoditization- a race to the bottom, if you will. How is that going to inspire loyalty?
If B&Ms really want to bring me back into the fold, they need to give me a reason to care about them. Club cards and weekly sales just aren't going to cut it.
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target
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This is supposed to be innovation ??
And what are you only just working this out now ???
Mike have you HONESTLY never heard of this before ? REALLY ??????
Possibly "honest" is not a word you are that familiar with.
Either you dont look, or you cant/wont see.
I can go (for examply) to my local computer/electronics shop and on their web site I can see the product, its price, it's specs, and on the SAME PAGE I can read CUSTOMERS REVIEWES of that product.
ON THE SAME PAGE I can see what other items or products are generally purchased with the product I am looking at !!!.
Do you know supermarkets are doing the same thing, (have you even been to a supermarket Mike??).
They group specific types of items that are more probable to be used together to make shoping easier and for example preparing a mean (or purchasing the items for a meal) easier and simpler.
(like, putting bread and butter close together for a really simple example).
for example:
Go to
www.dse.com.au
Dick Smith electronics, select a product, read customers reviews on it, and look at what customers who purchased that product have also purchased from that store.
And you'll see things like a Digital camera, you read customers reviews of that camera, you can see that people who purchased that camera often also purchased a memory card, a tripod, a spare battery, an extra lens, or some filters.
Then you can read the reviews on those products.
You can also post YOUR OWN REVIEW of that product.
It appears quite clear Mike you observational skills are non-existant, or is that willfull ignorance ?
its like you CwF+RtB crap, do you honestly believe that is not the standard proceedure that ALL companies ALWAYS DO ??
Mike do you HONESTLY BELIEVE that all companies do not "connect with fans" and give a "reason to buy" ??
Name some companies that DO NOT allready apply that concept ? Name ONE !!!!
Mike you claim to know business and finance !!
the FOUR P's of business are:
Product
Price
Packaging
Promotion
Promotion is "connect with fans"
Product, price and packaging is "reason to buy"
I know you like to "dumb it down" for your readers, but what is different to the 4 P's and you're dumbed down version of CwF+RtB ?
Mike why dont you have 'client reviews' about your own products??
or does CwF not apply to you ?.
I would like to read some positive comments by your clients about how good your products and services are !!
Like if I wanted to buy one of your crystal balls, i want to know it's specs, and read some reviews from people who purchased it about how good or bad that product is.
I would also like to know what other products clients who purchased off you also purchased off you, and then I would like to read the reviews of those products.
Are you T-Shirts good quality, do they last, do they fit ?
Were they sent out on time? was the client happy with the purchase, did you provide them a "reason to buy" that T-Shirt, did you meet your obligations in the transaction to the customers satisfaction.
Do you customers 'come back for more' or are they "one off's".
Do you have ANY "reasons to buy" and if so why not tell us about them ?
It appears you are not even willing to 'become your own client"
Mike why not apply your $20,000 "Mike Masnick works for you (sic) package" (cant even get the title right !!!!! fuck sake !!) you're really accurate and precise !!!...
"Mike Masnick works for you (sic) package"
Have you applied that the Techdirt ??
Have you 'reviewed your business plan' ?
Why dont you apply RtB+CwF to your own 'scam' Masnick ???
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Tks - best laugh I've had in a while!
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One of those costs for example is infrastructure. Online storefronts will always beat on retail, since its simple enough to have a warehouse with product and a virtual storefront (minimal employees, minimal maintenance, etc). Retail by nature can't beat that (especially if your a big box retailer, such as Best Buy).
The other consideration is that online can sell via volume and make up their sales. Retail cannot do that. Mark-ups are necessary or else they lose money in selling a product.
I would almost posit that retail operates on providing the information to the consumer, rather than consumer's deciphering the information themselves. An informed consumer unfortunately is NOT a retailer's best customer.
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Price, AMD beats the crap out of Intel Re:
There are plenty of outfits with retail and mail order that sell at one price. You can bet that they used combined sales volume to get a better price.
While on the issue of price, AMD beats the crap out of Intel. If you decide to but Intel you should first buy a tube of KY for each hand.
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Why ?
Is that the same as saying "real estate prices will always increase!" ??
Then why is it when I 'shop online' I pay THE SAME PRICE that I would of if I had of gone to the shop?
Why would purchasing a house from a builder be more or less expensive (for you or the builder) because you did it either by retail on 'online' ?
You're have played to Masnick trick, you started with a false assumption and built a conclusion (equally false) based on that assumption.
It is also very nieve to think that any savings in manufacture or transport costs will automatically reduce the retail price of that product.
It just DONT work that way, if a merchant saves $10 per item on transport costs (say by using another company), then your product you buy (the customer) will be the SAME PRICE as it always was. That $10 savings goes to MARGIN and PROFIT.
People set the price for the products they sell based on what "the market will bear", that means what people (enough people) are willing to pay for it.
Any savings in production, promotion, transport ect do not change "what the market will bear".
Therefore will not change the price.
"connect with fans" is ADVERTISING and promotion
"reason to buy" is PRODUCT
You do not "give someone" a reason to buy, their reasons are their own, you give them to choose to buy your product, and you can provide then with some example "reasons" to buy.
Even if you do give them a 'reason to buy' does that mean you have given them a reason to buy OFF YOU ??
Reason to buy (A CAR)
1) makes travelling easier
Ok, so I have a reason to buy a car, but I have been given no reason why I should buy a ford or a honda or a "mansick product".
FOOD - Reason to buy - So you dont starve and die..
The only "reason to buy" food from a food shop is the fact that they sell food !!!!
"Here is your reason to buy food from us, BECAUSE WE SELL FOOD!!!".
Connect with fans "WE SELL FOOD"
Mike dont bother going into business, stick with fortune telling as you gaze into you stock pile of "crystal balls".
So if the "reason to buy" is allready established in the customer, should not "RtB" become RtD
REASON TO DECIDE !!!
They allready have a reason to buy, why not give them a reason to decide to buy off YOU ???
So why have you Mike not ever bothered to discussus the "reason to deside" to buy ??
What if I want to buy 2 songs, but only have the money to buy one,
What then is my "reason to decide" to buy your song and not the other guys song ?
Therefore
CwF+RtB is not only irrelalent but incorrect... !!!!!!
Put much thought or effort into CwF+RtB did you Mike ??
Read any economics book and you will see
PRODUCT
PRICE
Packagin
PROMOTION
Product and price and "reasons to buy"
Packaging and promotion are "reasons to decide"
"Connect with fans" should be "Connect with clients"
CCTF
"Convert clients to FANS"
What if you do not have any "fans" (it's a new product) how do you "CwF" them (connect with fans) if you have no fans.
No you
"Connect with Clients" then CtF (Convert to fans)
Give them a "Reason to Decide" (to purchase off you and not someone else).
Masnick what DID you get right ?
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Informed shoppers dump Intel.
There is also a fringe benefit in that every time someone buys AMD their purchase helps keep Intel in check :)
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"imagine if" we could trust Intel?
And how do you know if they are real experts or just corporate shills? It is a fact that there is no substitute for actually understanding the problem and solutions yourself.
Most certainly we cannot expect to get the truth from Intel or anyone associated with them.
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retail web
At the other end of the spectrum is Lowe's Canada ... I have no idea of products they carry as their website only displays items from weekly flyer (earth to Lowe's ... I have the flyer in hand)
Three basic reasons for going to a retailers site ... do they have what I'm looking for (customer reviews and suggestions are helpful)? How much am I looking at ... (is a thermocoupler 5 bucks or do I need a second mortgage) Lastly ... IS IT IN STOCK? Home Depot finally followed Canadian Tire's lead and now displays product availability by store. (I left a voice mail with HD's Canadian president and asked if he had EVER called one of his own stores looking for availability status of a product ... next day a senior VP responded)
The next innovation for Home Depot is order online and pickup next day (or second day) at local outlet. In fact I have proposed to HD every store should also have a dedicated online associate, physically in the location .. if I order that thermocoupler online and it can be filled from store inventory ... it's done, paid for online ... I can get sent a note it's available for immediate pickup.
Canadian Tire just announced they are getting back into online ordering ... hope they pay attention to some suggestions.
The use of 2D barcodes in ads and on products is getting a lot of attention ... nice to see as we are also getting more interest in the frapple keyword linking system (keywords that can be entered on retailer website that direct connects to same information as 2D code) As I have said in many posts, we figured out how to get 300 recipes, nutritional information and a coupon on a can of tomato soup, without making a really big can ... simply enter keyword CS12 at frapple.com ... Keywords on product packaging or installation manuals can really enhance the customer experience and save manufacturers a ton of money. (Ya' think a Boeing 747 comes with a manual? They actually use procedure codes for fast lookup of the latest solutions)
And why can't other retailers follow Costco's example of Florida sized parking spots ....?
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Great column
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Baseless ranting / not about post filter..
I used to enjoy reading the posts because they usually had good other sides to the story, or something to add to the post.
I like the idea of experts via chat or something. Like when you go to a website and if you've been browsing around for so long, a little box pops up and says " can I help you ". If instead of useless stockers / sales people wandering the floor, I would rather have a barcode or link in a aisle I can scan and it would take me to that corporate experts chat room / help desk.
Someone above in a angry dismissive tone said, " but how do you know they aren't corporate shills?" My question back would be A) How do you know whoever you hired actually knows wtf he's doing? B) how do you know the help in that chat room / blog / site was actually correct. A good successful company will make sure they do give good advice to make sure the company keeps coming back.
I also liked the idea of the packages. Search the website and answer a few questions and it will tell you everything you need to install / hook up that item WITH free directions / video. Crutchfield ( online AV store ) is great about that. They give you free installation instructions w/ the product.
I'd like to see more stores w/ mostly a warehouse in the back and one item on the shelf. I think most people will be ordering online to come in and pick a product up. Having less items on the shelf will also help theft protection.
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Re: Baseless ranting / not about post filter..
Technology is not going to help you.
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Inside Jobs & Censorship Shills.
Most theft of physical products are inside jobs. This means that there will be fewer freelance thefts but larger inside thefts.
"Mike could we get a filter for the comments in which people who rail against anything w/ absolutely no details, or information to back it up with? Also a filter for " has nothing to do w/ this blog post".
Be careful what you ask for Eric.
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Reason to buy
"Buy a car, owning a car has many advantages"
One being it is easier to get to certain places.
Perfect: they have given you a "Reason to Buy" RtB.
They have convinced me that's for sure !!!!
OK, so now I have a Reason to buy a car... great
Now what ??????
I am not a "fan" of any one type of car, and I dont expect any of them to "try to Connect with me", as I am not a fan.
But even though I have a "reason to buy" I have been given NO REASON TO DECIDE apart from the decision to "buy a car".
CwC (Connect with Clients/Customers).
"This is the FORD car company, look we sell cars !!!!"
NO CwF required or possible..
You have been given a "reason to buy" (off a honda car add) and you now the FORD car company has "Connected" with you in view of giving you a
REASON TO DECIDE.. (to buy a FORD and not a Honda)
CwF+RtB = FAILURE
CwC+RtD = Success !!!!
Connect with Clients + Reason to Decide
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The Physical Shopping Will Never Die
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