Retail Innovation | The Ideas MachineThe Ideas Machine

December 24, 2014

Future of retail: Tech enhances real world experiences

Great article from the ever reliable blog PSFK, Ray Velez of Razorfish on the ways retailers are using digtial tech to enhance real world shopping experiences. We at The Ideas Machine particularly like his take that it is about integration and using digital in the real world space, not just about mining digital channels for customers. They touch on one of our favourite technologies, Augmented Reality and Google’s investment in Magic Leap. The startup team whose business is part funded by Google ( and consequently now valued at over $1bn) use tantilising phrases full of promise like ‘the world is your new desktop’ …..have a read about Magic Leap and why they are attracting big bucks $$$ of investment on TechCrunch here, and admire the little AR elephant jumping around in the palm of the journalist’s hand! The Ideas Machine can’t wait to have our reality well and truly augmented.

May 5, 2014

Retail Innovation at its Best

Check out this great example of the online & in-store worlds merging. C&A use mini screens on clothing hangers to display real time Facebook ‘likes’ for products. The hope is that this online endorsement encourages purchase in the ‘real world’ store. Not sure about this product…. well thousands of online shoppers can’t be wrong now can they ?

This is a fantastic example demonstrating one company’s attempt to merge the on and off line worlds. They realised the importance of peer review was missing at a critical point in the customer journey- then thought laterally about how to bring that to life at point of purchase.

I like this because it is slightly clunky – it is really the portents of things to come as technology becomes more sophisticated. It means in the ‘ future shop’ we won’t have to rely on our devices, or even on Beacons and iBeacons to alert us to coupons, peer reviews and so on, the products will do it themselves. The internet of things has massive implications for shopping and purchases too, as this embryonic example shows. I hope it works for C&A because it will get retailers thinking outside the box. At The Ideas Machine we think about this stuff a lot. Mapping customer journeys and then thinking about how technologies present opportunities to improve the critical points is a simple, effective way to make your customer experience sing. Well done C&A!

Retail innovation at it’s best. Bringing the on and offline customer experience closer. Love it! Watch the Mashable video review here.

Likes come to life

March 4, 2014

The Beacon Revolution Led by Retailers

Beacons and iBeacon are set to change the way we shop ( again). These low-cost bluetooth devices offer retailers the opportunity to connect with customers in-store, deliver contact-less payment and all sorts of other whizzy stuff. Beacons have multiple applications but reports suggest it will be retailers who blaze a trail in this space.

Despite the obvious initial barriers ( like users having to turn on Bluetooth, accept apps, and opt-in), commentators seem agreed that this technology will change how we shop and quickly move to changing our home, leisure, work and education spaces.

If this Business Insider report is to be believed, half of Americans are already using mobile devices in-store. The report outlines the impact Beacon devices are set to have in the short term. Interesting reading. Our view is that the relevance of any push notification or in-store application is still paramount; spam is spam after all, however it is delivered.

iBeacon Devices set to change the way we shop

February 20, 2014

The Secret to Successful Omnichannel Retailing

Retailers’ worst fear is customers coming in store to browse, touch, feel and try, then leaving to go price hunting online – ultimately buying from an online retail competitor. Worse, and what brings retailers out in cold sweats is a customer standing right there in a heated, well lit, beautifully merchandised store and buying from someone else via their smartphone.

Dark days, and high pressure stuff in a world where we can bid and win on an item on eBay in less than the time it takes the Barista to serve up a latte, where Amazon delivers whatever, wherever, whenever at the stroke of a smartphone and where price savvy customers will seek out bargains online.

Even more alarming for off line retailers seeking to maximise the value of their floorspace are apps like RedLaser ( over 27million downloads), allowing customers to scan UPC codes and see if items are available nearby and at what price- there is literally nowhere for traditional retailers to hide.

Onmichannel retailing as it is called – selling via multiple on and offline channels is not all a race for the bottom. Getting digital sales channels right can enhance an in-store purchase too – in a great article on this stuff, MIT Sloane Management Review– cites examples of both sides of the coin. One of their stories is about a girl who can’t find what she wants in a shoe store, she is about to leave, when the assistant pulls out the ipad with other lines, more sizes to order and complementary accessories. The assistant helps the shopper get her dream shoes, delivered to her home.

Making the ‘digital transition’ to Omnichannel retailing is a necessity- the article has some excellent examples for retailers seeking to keep their customers and remain competitive. The ideas for retailers range from owning a niche, bundling, in-store exclusives, through to on /offline promotions and synergies. Interesting, they also note the gap between manufacturing and retailing getting smaller at the back end, and the importance of personalisation, use of data and analytics on the marketing /consumer front end. Fascinating – what happens to traditional publishers when Amazon is contracting with authors direct ?

Redlaser 27 m downloads

February 5, 2014

I want shoes as well as movies 'On Demand'

Shoes made-to-measure were once the preserve of the rich and famous, or the unfortunate necessity for those with unusual shaped and sized feet. Not any more, mass customisation means we can personalise and procure idiosyncratically like never before. Shoe of Prey your-perfect-shoe-v2

offers a 3-D design process and delivers worldwide in 4 weeks, NIKE ID has already pioneered this in flagship stores and online and even Coke started personalising bottle labels in a bid to become more relevant. With Amazon experimenting with same day , 3 hour delivery and 3 D printing – it’s more than movies we can start to expect on demand. Companies like Chicago based eThreads are set to succeed where Levi’s and others made in roads and failed. The tech is better than it was in the 90’s and the distribution networks are there too. Ready, Set Go!

What does all this ‘on demand’ stuff mean for your business /brand /production /delivery / IT /eCRM ? Customer experience innovation, brand and product managers, IT teams and logistics people can no longer afford to ignore some of these radical changes – even if the picture seems a little sci fi right now. It’s not, it’s more and more real every day. Plenty has been written about mass customisation, check some of it out here.

Business models have to adapt, marketing has to keep up and customers are in charge…. all this we know , we’re told it so often it’s like wallpaper, but think about it again for a second. How prepared are you – what if your customers could order in the morning and get it by lunchtime, what if they could download the file and print a 3D version at home…. when I can order my own personalised version of pretty much anything, I won’t want what you’re selling unless I can play around with it, and effectively get it on demand.

February 4, 2014

Shoppers want seamless online -instore shopping experiences

A new study by management consultancy firm Accenture finds more US shoppers ‘webrooming’ than ‘showrooming’ in their hunt for products to buy.

But it’s not all bad news for traditional retailers, the report also highlights shoppers responding to ‘seamless’ customer experiences – using ‘click and collect’ services, buying in store and using direct home delivery services. Offering ‘real time’ product availability is cited as one example where the on and offline worlds merge.

Showing customers your stock online means a journey to your store is not wasted. The report also suggests traditional retailers need to work harder on innovation to keep shoppers in store interested, and to focus on successfully differentiating their offer from competitors ( on and off line).

We consumers are a demanding bunch, expecting offers and promotions to be channel agnostic, and the most budget conscious remain convinced the best deals are online not in store. Interesting stuff and good news for m-commerce too as users report buying from smartphones getting easier and easier.

Read the full report here.

Customers are buying online and collecting at store

December 10, 2013

Amazing logistics lessons from Mumbai Dabawallahs

An incredible logistics story from Mumbai’s legendary Dabawallahs. In his TED talk Dr Pawan Agrawal explains how this Indian group rivals the likes of DHL …..many hail from the same village and they deliver hundreds and thousands of tiffin boxes daily to Mumbai workers. Dr Agrawal reveals the secrets that won this awesome team accolades from Forbes. Their Dabawallah Code and the secret of their success is based on centuries old traditions. They recruit on enthusiasm and their delivery output and efficiency is something many Blue Chips only dream of.

From an innovation perspective, looking at related worlds, other cultures and sectors can often yield fruitful stimulus to apply to your own.

Tiffin and tea anyone ?

July 1, 2013

Business, brands and the blindingly obvious: turn poor customer service into a virtue

How to make an honest deal with your customers

Don’t promise what you can’t deliver. Blindingly obvious. So why do so many brands and businesses persist in creating illusions of customer service they simply cannot fulfil ? If I know what I am getting /signing up for, that’s cool. If you over promise and don’t deliver, I get mad, I tell my friends how mad I am with you , I start writing letters, or posting on social networks about how hacked off I am with you and maybe I don’t ever come back to your store. Brands need to be honest about their operational capabilities, customers will love them all the more for their honesty. Moreover, we won’t loathe them for letting us down. Obvious.

Swedish furniture retailer IKEA is a great example of the art of not over promising. Not only that, they make a virtue of their lack of customer service. We have all been and had family rows in their stores and been irate about their returns policy and nearly killed ourselves or a loved one wrestling with an IKEA self assembly erection! But they don’t promise it will be easy, quite the reverse. IKEA ran an in-store communications campaign themed ‘Why ? That’s why!’ designed to reiterate what customers get in return for all that hassle… you pick up your stuff yourself from their warehouse, transport and build it all yourself …. and in return you get exceptional design at eye-wateringly cheap prices – ‘Why ? That’s why!’ explained that at key ‘moments’ in the shopping journey, reminding you of the customer service ‘deal’ you are making with the store. Ultimately you only have yourself and your wallet to blame for the trials of the purchase , self selection and self assembly. You can’t loathe IKEA for under-delivering. They never promised anything extra.

What can brands learn from IKEA’s approach? Simple. Don’t over promise. Explain what the deal is. Stick to it. Done. Obvious. Check out the blog list of the top ten ‘not so excellent customer service’ issues below for more.

Top 10 of “Not So Excellent” Customer Service (business2community.com)