It’s Time to Reinvent Your Retail Organization and Break Down Silos

Customersamp8217 online shopping used to consist of consulting a website to compare products before making an instore purchase amp160Now shoppers complete an entire transaction solely online amp160from product and price comparison to purchase completionamp160 The online journey is now central to sales and directly connected to how attractive the customer finds a brandAs the ecommerce industry evolved and expanded retail companies began to recognize the chasm upon which they now sit at the edge a strong organization mastering offline activities struggling with the new media world and a siloed marketing organization focused on digital and innovation that is in reality much closer to the consumerWhile the marketbreaking change was an evolution of technology and consumer preference rather than a revolution in time four aspects continue to impact the marketplace and contribute to the challenges marketers face today1amp160 Consumer Shift in HabitsConsumers are in control amp160Itamp8217s a line we have all embraced for years amp160Today marketing is more actionable and accountable to sale and market share than ever before because of access through technology amp160In a 25 trillion retail industry ecommerce represents 12 of that total growing six times faster than retail amp160By 2020 ecommerce will represent 20 of total retail amp160Let that sink in amp160A 2 trillion shift is roughly the size of the GDP of CanadaThis growth has a direct impact on where ecommerce sits on the CEO priority list and provides an opportunity to grow faster in a more dynamic environment amp160Ecommerce does not represent the biggest share of sales today but it is undeniably the fastest growing channel in a world where many brands are struggling to show strong growth amp160If brands are to command the ecommerce space the same as they do offline they need to start improving their digital shelf from an experience and visibility standpoint and make sure they are getting at a minimum their offline share online2amp160 Advertisers Realize Media Can Drive Tangible Business ResultsRetail teams inside brand or client organizations typically sit on their own budgets closely correlated to sales performance amp160With big retailers the motto is amp8220win with the winneramp8221 amp160What is unique about these budgets is that they are typically cut last as theyamp8217re a key reason for growth amp160Marketers on the other hand along with agencies have struggled with some of the shortcomings of the industry amp160lack of sales measurement agreement on digital standards etcAs these two industries evolve they cannot continue to live or succeed in silosamp160 Retail interactions need to be closely audited to be as transparent as media investments going beyond yearly commitments to agile shorter planning periods amp160Media on the other hand needs to continue to be more accountable driving tangible business results and most importantly be the growth driver not the first dollar cut in economic downturns3amp160 Players Orchestrating the IndustryTech players are given much of the credit in accelerating the consumer and digital media industry but a higher proportion of the ecommerce credit goes to the pure players like Amazon or Alibaba amp160Ad revenue continues to be the fastestgrowing category for these players with Amazon announcing a whopping 2 billion in ad sales in Q2 2018 amp160As pure players continue their domination and strong players like Walmart become real contenders commerce and media dollars become simply inseparable amp160To drive the most out of retailers you need to think about them as commerce and media partners driving awareness down to sales across the consumer journey4amp160 Attention as a CommodityBy 2019 Zenith estimates that consumers will spend 1706 minutes or nearly three hours a day online amp160Often that time is dedicated to scrolling through a social media feed and those social platforms trade attention and eyeballs for advertising dollars to the tune of 13 billion at Facebook aloneHowever social media is not the only place getting a share of attention online retail platforms like Amazon receive increasing amounts of face time with online browsers scrolling for a good deal amp160The lesson here is simple to make the most of an online retail platform it should also be seen as a media space offering brands the opportunity to capture the attention of their shoppersThe ecommerce industry will move much faster than media driven by all parties amp160Consumers want more convenience and speed advertisers are seeking higher growth channels and retailers want a share of the 300 billion digital ad business amp160This is forcing tech players to invest heavily to make their platform more accountable but in many cases pushing hard to invest in ecommerce amp160In this fastpaced retail environment we all need to make sure it is built on solid ground amp160Itamp8217s time for tech players to play catchup and for marketers to focus on how to move their products off the shelves in this dynamic industryPhoto creditamp160 RawpixelUnsplashClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

Click to Make Your 2025 Contribution to Support the MediaVillage Education Foundation

It’s Time to Reinvent Your Retail Organization and Break Down Silos

Author

Publish date

Channel

Ali Nehme

"About That" with Carl Mayer: Corinne Casagrande (Episode 8: Consumer Spending) - By Carl Mayer

More Videos:

Click to Make Your 2025 Contribution to Support the MediaVillage Education Foundation

It’s Time to Reinvent Your Retail Organization and Break Down Silos

Enjoying This Commentary? There's More to Love

Ali Nehme

"About That" with Carl Mayer: Corinne Casagrande (Episode 8: Consumer Spending) - By Carl Mayer

The payment was successful

Cookies