Lessons from the NRF 2021: Retail's Big Show

Last month I virtually attended the NRF2021 Retail39s Big Show the Global Expo held in New York that brings together exhibitors innovators startups and speakers to showcase and discuss the challenges and possibilities that will transform business through the lens of retail The energy positivity and hope regarding the impact and lasting effects that the retail industry could and should have in reenergizing the economy was palpable throughout the sessions But there are lessons to be learnt if businesses and leaders are to truly understand the evolved consumer priorities today so as to determine what subtle shifts considered integrations and widespread overhauls are required to operational models and technologies talent initiatives and experience design to deliver sustained growthHere are the top learnings on how to empower teams to make better decisions faster to design and execute more compelling more innovative and more connected ECommerce experiences in the year aheadLesson 1 See both the forest and the trees to understand people intimatelyLesson 2 Distraction and unnecessary friction leads to abandoned carts and lost revenueLesson 3 Retail is detail so pay close attention to the details and pursue active attentionLesson 4 Experiences should encompass expansive ServicesLesson 5 Collapse siloed Category thinking to craft Better ExperiencesLesson 6 Culture is local so understand respect and celebrate the differencesLesson 7 Consumers have set the bar for excellence It39s set at Safety Sustainability Inclusion and TrustLesson 8 Build a bigger bench and then trust the team to collaborate innovate and make Better decisions faster on your behalfBelow are the explanations and sources that led me to arrive at this summationLesson 1 See both the forest and the trees to understand people intimatelyPut another way this is about simplifying the complex without ignoring the complexity of deeper consumer understanding In the session Navigating disruption to drive sustained growth and balanced business objectives the former CEO and Chairman of PepsiCo Indra Nooyi reminded us to 39remember our first principles of marketing39 While the compression of the timeframe for digital acceleration meant that all ages were suddenly thrust online for work school and so much more our core needs and priorities are fundamentally the same However the ways we access brands and products has changed and the ubiquity of online services has expanded what we have come to expect from brands and the services they provideLesson 2 Distraction and unnecessary friction leads to abandoned carts and lost revenueWe live in an age of distraction in which our capacity to process information is perpetually under pressure In the session Making Sense of the Aftermath of Uncertainty Andrea Bell from WGSN commented on the cumulative effect of social jetlag the disconnect between our internal biological and social clock which distorts our sense of time the emotional plurality felt as a result of the changing positive and negative news around COVID19 and the everyday prediction error stress when we go to buy a product online only to then find it39s not available The impact of these stresses serves to further erode our capacity for active and sustained attention which in turn results in online cart abandonment rates of between 66 85 depending upon the sector and data source usedLesson 3 Retail is detail and we must pay close attention to the details and pursue active attentionRetail has always been an early indicator of shifting consumer demands capturing both the everyday essentials as well as the soughtafter luxuries of life and showing how consumer expectations might evolve across other categories In Consumer Behavior Shifts to Online How to deliver in 2021 journalist and author Miya Knights provided an overview of the innovations that consumers were introduced to in 2020 including BOPIS click ampamp collect curbside delivery traffic light queuing systems scan and go apps and explained how our growing comfort and familiarity with these functions will make us more willing to have lowtouch experiences when we39re able to go back into brick ampamp mortar stores The key to omnichannel success is to be functionally flawless and that means 70 of the focus should be in operations and 30 in stating the visionIn Remapping the Customer Experience A reinvention imperative Krista Bourne Verizon39s senior vice president of consumer sales Verizon echoed the point about innovating around peoples39 needs for personal safety This led Verizon to gear its strategic ambitions and operations to roll out appointment setting and touchless checkins selfserve kiosks contactless digital payments and curbside fulfillment In 2021 the shift in emphasis will be to personalization of connected commerce that continues to prioritize touchless functionalityIn the spirit of practicing what I preach and keeping the wider marketing forest in view I am reminded of the body of evidence regarding the Attention Economy Human attention is a finite resource and companies should assess every innovation according to its ability to hold the consumer39s active attention and deliver a positive experience otherwise it39s simply a cost exercise that did not yield valueLesson 4 Experiences should encompass expansive ServicesLast year the companies that thrived were the ones that innovated at speed They listened intently to customers they trialed different formats and services and the most successful NPDs answered previously unmet needs and untapped desires In Creature Comforts Serving Consumers39 Desire for Life39s Simple Pleasures Sumit Singh CEO of Chewy the online pet food retailer explained how their team39s close connection to customers allowed them to pivot quickly and launch a telehealth service to connect to vets and provide triage to customers in their home By staying true to their core mission and knowing their customers intimately they were able to disrupt the market and create a compelling and sticky experience to answer the new demand opportunity that arose from the increase in pandemicfueled pet ownershipLesson 5 Collapse siloed Category thinking to craft Better ExperiencesWhile endless headlines have been generated about the hockey stick growth of Ecommerce the sheer range of online experiences that all generations have experimented with have made us all naamp239ve experts as regards our omnichannel expectations In a relatively short space of time we39ve experimented with online education spent endless hours working on Zoom Microsoft Teams and WebEx calls We39ve trialed and judged half a dozen platforms for TV film and news content signed up to and cancelled various subscription services and assessed different grocery apparel consumer electronics and home supply retailers and can compare and contrast the online differences to instore and delivery approaches We39ve seen and felt the speed of innovation and our expectations for excellence have been raised The watch out here is that we don39t live in category silos While a brand may choose to focus its competitive analysis and brand tracking on its core competitive set to limit the data points it reviews marketers should avoid adopting a blinkered vision when thinking about omnichannel experiences and should evolve their measurement approach to account for both a focused and broader perspective to really understand the love consumers have for a brandLesson 6 Culture is local so understand respect and celebrate the differencesThe meaningful application of empathy demands an appreciation of culture That means understanding local market nuances as well as generational advocacy to determine what39s appropriate and what39s notIn Luxury goes digital Understanding how Alibaba and Moschino are driving new innovations Christina Fontana Head of Fashion ampamp Luxury at TMall Luxury Division explained that the luxury consumers in China are much younger than the rest of the world which is why selfexpression through fashion is such a significant driver of the digital experiences that are delivered So whether China is deemed a mature fashion market rather than a mature one it demands the energy entertainment fun speed and events demanded by their younger customers The broader implication is that when designing product experiences that will resonate with your audience you must consider what is truly authentic not opportunistic and this requires great respect and understanding of your audience39s needs culture and historyLesson 7 Consumers have set the bar for excellence It39s set at Safety Sustainability Inclusion and TrustToday all brands are on a level playing field 2020 exposed consumers to the widest plethora of ecommerce innovations and opportunities and the points of comparison have been vastly expanded Sustainability and commitment may offer extra points of comparison for shoppers deciding where to place their dollars In How Sustainability is Changing the Retail Landscape the message from Abigail Kammerzeil HampampM US Sustainability Manager and Jennifer Keesson IKEA Sustainability Manager centered around the importance of consistent People ampamp Planet positive practices across the entire supply chain and how their brands are leading the charge with responsible retail Both HampampM and IKEA are working to reinvent their operational models to reward consumers for their local sustainable efforts and this was both gratifying and inspiring to hearIn terms of Safety the exhibitors at both NRF and CES showed us a future that delivers clean and clinical experiences through touchless functionality The smart kitchen tech included the LG Instaview Refrigerator with a UV light in the water dispenser that that kills 999 of bacteria to the Samsung Family Hub refrigerator and Samsung39s Smart Things service that connects the items fridge to the meal planner to grocery retailers so that when supplies run low you can get them delivered within 2 hours if you sync it to DoorDash As people continue to prioritize their time and attention into high value versus low value tasks we39ll see levels of trust and familiarity rise for such products services and experiences Those brand to consumer relationships and habits will also become stickier as long as the execution remains flawlessMeeting the demands of ECommerce requires a focus on both the minute details and the big picture You have to craft resonant consumer experience design that are twinned with perfect operational execution and that means orchestration organization and optimization with AI machine learning analytics as well as creative inspiration And that bring us to our final pointLesson 8 Build a bigger bench and then trust the team to collaborate innovate and make Better Decisions Faster on your behalfWhile the goal of leaders is to simplify the complex it is also to recognize that organizations need teams comprised of talent with diverse skillsets to tackle tough business challenges Whether 2021 will be a year of Survival Stabilization or Acceleration for an organization depends upon how much was learnt from 2020Innovation is the result of systematic incremental improvements to technology as well as the application of data to achieve smarter insightsFor retailers those insights and innovations must bring the best of digital and physical experiences together to keep pace with consumers evolved use of brick and mortar versus online shopping options Store associates will need to become experts in understanding stock availability and be empowered with mobile capabilities to drive sales while customers will need to see the continued refinements in how the mobile shopping experience uses time space and place in a way that lets them search browse filter discover and discuss as they see itTeams needs to be comprised of specialists who are connected through consistent ways of working that give them a good overview of the overall business and their role within it The winners will be the ones who enable teams to see both the forest and the trees when crafting more resonant and reliable connections between consumers and brands across retail and communications channelsClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

APPLY FOR JOBS | SUBMIT YOUR RESUME | REGISTER FOR FREE MEDIAVILLAGE CONTENT

Lessons from the NRF 2021: Retail's Big Show

Author

Publish date

Channel

Chrissie Hanson

APPLY FOR JOBS | SUBMIT YOUR RESUME | REGISTER FOR FREE MEDIAVILLAGE CONTENT

Lessons from the NRF 2021: Retail's Big Show

Enjoying This Commentary? There's More to Love

Chrissie Hanson

Stay in the know with more from MediaVillage

TAGS:

Cookies