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The theme of the 2009 Shop.org Strategy and Innovation Forum, “Opportunity from Adversity” rang true in every presentation. How can a retailer deliver on digital retail in this challenging economy? How can a company grow during this recession? As Josh Leibowitz, a partner at McKinsey & Co., stated, “How do you make sense of the uncertainty?” Amidst all the doom and gloom, it’s time to go back to the basics and leverage the online channels.
Some businesses have evolved so much in recent years that they have outgrown their own skins. But now, in this tough time, these businesses must remember what the key components were that brought success before, and return to those fundamental pieces. Going back to the basics often translates to cutting the business, and to a certain extent, cutting costs is necessary. But Bob Thacker, senior vice president of marketing and advertising at OfficeMax, Inc. reminded us that, “We may need to sacrifice, but must we suffer?” Many businesses are going to go to the extreme to save money, but the pain may be unnecessary—lean and mean does not always mean doom and gloom. Alfrid Lin, chairman, COO, and CFO of Zappos, talked about the benefits of incredible customer service, one of Zappos.com’s key business initiatives. He stated, “People may not remember exactly what you did or what you said, but they will always remember how you made them feel.” It is the little things that make a difference, and they can be inexpensive, too.
Now is the time to leverage online channels. Consumers are using the Internet more than ever before to make a purchase. Thirty-three percent of consumers research online to make sure they get the best price and there has been a 17 percent increase in online shopping, as mentioned in the 2009 Shop.org Research Update. Consumers are shifting from the traditional bricks-and-mortar approach to using the Internet as both a shopping tool and a shopping vehicle. Since consumers are using the Internet more than ever , it only makes sense to put resources into improving the business Web site. As more consumers see the digital retailer before the physical store, customers need to be impressed with the online world. Now is the time to re-evaluate, make massive improvements, and drive online revenues to improve the overall business.
There will be winners and losers, of course, but going back to the basics and leveraging online channels can lead to success. Attending the 2009 Shop.org Strategy and Innovation Forum was a great opportunity, for which Santa Clara students are incredibly grateful.
