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I had the opportunity to attend Google’s CommerceThink ’07 last week at the Google headquarters. CommerceThink ’07 brought together a group of dedicated online and multichannel retail executives who ventured out of their offices in November to hear Google’s perspectives on search and multichannel retailing and to talk to each other about common challenges and what’s in store for the future.
It’s always a pleasure to get out of the office and think. Sometimes, just 6 hours of uninterrupted time from a cross-country flight in and of itself is enough to get re-charged. But, when you can be in a roomful of smart retailers in an environment that oozes innovation, it’s even better. For me, there were a few key takeaways.
First, as much as our industry has grown and made progress, the challenge of measuring the off-line impact of online is still in its infancy. Anyone who can crack the code on this can secure their retirement. I’ve been in this industry for almost nine years and I’ve seen the conversations about this topic become more frequent and arrive in boardroom. But, they haven’t changed. Retailers remain frustrated with their ability to measure the impact of the Internet on anything except for online sales.
Second, even with a quarter billion dollars in online retail sales in 2007, the full impact of the Internet on retail has yet to be felt. How much commerce is prevented simply because someone looking to buy a something still doesn’t know where they can get it when they want it? If I’m home at 8 pm with a craving for a particular Spanish wine, wouldn’t it be great if I knew that there is a store 15 minutes from my house with a collection of Rioja that is also open until 9 pm? What if I unexpectedly get tickets to see the Penguins v. Capitals hockey game in Washington DC and I need to find a store that sells Penguins merchandise so I can taunt the Capitals’ fans (believe me, they deserve it)?
Third, in order for retailers to be more relevant to customers both online and off-line, they will need more information about them. If there is one thing clear from the recent behavioral targeting town hall meeting hosted by the FTC, it’s that there is more work to be done to get everyone comfortable with this equation.
2 Comments
Scott, you’re right about the challenges re: measuring the off-line impact of online. My gut is that you have to first walk the malls and specialty stores and talk to people (while handing out plenty of gift cards) to really understand this – and demographics and product category no doubt play a big role.
My guess is that the mid-to-higher-end stores are probably positively impacted by online the most, but even then there are probably plenty of deep pocketed types that are following other cues (like what their spouse tells them to do). Email is probably the most impactful of all the online touchpoints when it comes to online influencing offline. Macy’s email worked on me this past week-end (coupled with their newspaper-wrapper ad).
And your point about real-time “inventory awareness” pushed out digitally is also something people aren’t making enough of a priority … maybe Google has a RFID/supply chain story up their sleeves :>
Lastly, in my humble opinion, the privacy police have to get a life and quit working the “protect the consumer’s privacy” con and twisting the arms of online marketers to keep their names (and their, at times, dubious cause) in the news. Some of the consumer privacy folks are all starting to look like out-of-work bit actors from the Sopranos. And the privacy grandstanders undercut the solid progress and important work being made on the privacy front.
But you put it much more diplomatically Scott.
Have a good one, Kent Allen
As the Holiday Shopping season swings into early motion, I was delighted to stumble onto your blog during my “Cyber Monday” research.
Your three (3) key points taken from the Google CommerceThink landed on my head with quite an impact, causing me to consider these for the first time and incorporate them into my business plan. I will be launching a new business this coming year and there is much to consider.
By-the-way, I receive many catalogues via standard mail including thoses from brick and mortar retails such as Macy*s, etc. On “Black Friday” I went out to shop but found disappointment instead of bargains. Contemplating this, I realized that I’d already formed my Christmas Shopping List from the Catalogue deals I’d read. I spent Sunday doing 75% of my Christmas Shopping… online… based on the retailers’ catalogues.
Thank you for your interesting blog. I feel so empowered now.