Leapfrogging The Competition
Very interesting that RSR research concludes that “50% of laggards (those underperforming retailers) are using homegrown or customized solutions vs. only 29% of Retail Winners. Winners are more likely to use either on-premise or cloud-based packaged solutions. These same Winners are more likely to extend their eCommerce platforms into their stores for customers, employees and even as a Point of Sale device.” Packaged tools are becoming well-aligned with common retail processes and channels are blurring across retail operations. Leading retailers are leveraging a packaged solution base and enabling their unique business requirements upon that base then leveraging the natural integration provided by packaged tools to drive consistency across all channels.
Post based on Original Article Source.
A foundational principle of RSR’s research is that Retail Winners think and do things differently than the competition. While a company might get lucky, and hit on a unique, desirable product that drives great sales for a period of time, history has shown us that in and of themselves a special product or category just isn’t enough to drive sustainable results.
In other words, for the short term, customers will put up with almost anything to get the “next big thing.” The operative phrase here is ”short-term.” They’ll wait in long lines at stores, tolerate slow or unstable web sites, and wait weeks or months for delivery… whatever it takes to get the next Beanie Baby (okay, I’m dating myself here, but I think you get my point). Niche products have a shelf-life and their value can plummet overnight. Put another way, today’s $9,000 curved screen TV is tomorrow’s $1,500 deal. Today’s hot product is tomorrow’s commodity or worse.
Suddenly yesterday’s hot retailer is today’s laggard… with sales falling below the Mendoza line of inflation rates.
This begs the question: what do you do when the rocket ship you were tied to flames out, and you’re suddenly desperately in need of fuel? Our research shows that generally, laggards hunker down. They stop spending money on technology because they don’t have a lot of money to spend. Instead they put money into marketing, hoping that a really clever ad will bring customers back into their grasp. They cut payroll, they maintain old systems, and search desperately for the next big thing. They look around at their competitors, trying to figure out their secret sauce. And most of the time, they fail. They may remain in business for months, years or even decades – limping along on prior glories – doing things a particular way because “that’s the way we’ve always done it.” …