At eTail West: Pricing Transparency in an Omni-Channel World

I HAD THE PRIVILEGE on Feb. 27 of moderating an expert panel at the eTail West conference in Palm Springs, CA. I was accompanied by two of the industry’s bright lights: Wes Woolbright, National Pricing Director of Safeway, and Carol Spieckerman, President and CEO of newmarketbuilders.

The focus of the discussion was a presentation of a research study conducted by RetailWire.com late last year on the timely subject of Pricing Transparency. Some 284 retail and supplier executives participated. IBM was the sponsor.

The findings addressed the pervasive concerns about “showrooming,” a behavior in which shoppers examine products in a physical retail store but then seek out the lowest online price using their smartphones. They also looked at the more general issues surrounding pricing consistency for retailers who do business across multiple channels and/or geographic markets.

Panelists Wes and Carol both did a superb job, drawing from their years of professional experience to add perspective and insight to the discussion. The video runs 28 minutes, but I think it’s worth the time.

The event organizers, Worldwide Business Research, recorded and posted the YouTube presentation shown here and they have made a transcript download available.

You may also download the cited research study here.

© Copyright 2013 James Tenser

In-Store Sensing Tops Online Metrics

I POSTED THE FOLLOWING commentary this morning on RetailWire.com as part of a discussion, Can Online Shopper Metrics Be Brought to Stores? I believe online innovation has influenced expectations in the bricks and mortar world. Now stores are poised to deliver sensing that online players can’t ever provide.

I must disclose a recent, prior influence. This post appears just a few days after I made a very informative visit to eTailWest in Palm Springs. Talking with vendors on the exhibit floor, I was struck by their degree of online-only thinking. Innovative analytics tools abounded, but bricks & mortar perspective was in relatively short supply. Since 90% of retail sales still take place in stores, some balance is in order.

Here’s my take:

Online metrics have certainly raised the bar, but in-store sensing will bring its own particular nuances—in some ways surpassing online practices.

The In-Store Implementation Network identifies five senses of in-store: Demand, Items, Messages, Employees and Shoppers. DIMES is part of this 2011 workshop. If you are in a rush, click forward to slide #22:

Tracking shopper movement within the physical store is only one element of the Shopper term of the equation, as I see it.

The present discussion drills deeper into shopper data alternatives—to consider whether tracking mobile phones is a better choice versus analyzing security video versus installing special-purpose video networks versus tracking transponders mounted on shopping carts. (Have we totally given up on electric eyes and grad students with clipboards?)

Further choices include: Do we analyze whole paths or stick to zones? Do we infer shopper demographics from video images? Do we mesh tracking data with POS transaction data?

However data is captured, appropriate analytics must be applied to extract managerially useful insights. The outputs must be timely and in a format that is accessible to decision-makers.

This is a lively sector for our business. With many competitors vying to be the industry standard, I can only offer some general advice:

#1 – Don’t assume comprehensive understanding of your shoppers based solely upon path tracking data
#2 – Never install more technology than is needed to achieve the desired objective
#3 – Expect best practice to change rapidly in this arena
#4 – Results will vary a lot based on channel of trade

[Tenser excerpt from “Can Online Shopper Metrics Be Brought to Stores?” discussion on RetailWire.com, Feb. 5, 2013.]
© Copyright 2013 James Tenser
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