innovation insights

Jan 10, 2017

Is Online Shopping on the Wane?

Computer graphic illustration about internet shopping in virtual world.

Originally published on November 11, 2016 as a Guest Column in The Globe and Mail: http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/is-online-shopping-dead/article32658017/

A few years ago, I was sitting with friends and talking about a job offer that one of them had just received. It was with a new online retailer of “everything gardening.”

I laughed. Then choked (elegantly) on my drink as we learned that our friend had already accepted the new position. For greater context, this Ivy League-educated professional had been wooed away from a Tier One international consulting firm to join a startup aiming to sell spades and seeds online.

It’s not that I don’t believe in the transformative potential of the Internet. I was and continue to be an avid online shopper for what I call non-tactile purchases: commodities such as books and music, where, once you’ve made your decision to buy, price and speed of access are the key, rather than place of purchase. I can even be pushed as far as buying shoes online from brands that I know and trust, feeling confident that they will arrive on time and fit as comfortably as the ones I just wore out.

But this was gardening! And gardening may be the most tactile of all pastimes. Avid gardeners spend hours of their scarce free time lovingly planning, shopping for, implementing and showing off their creativity and passion for the beauty of nature.

It just seemed counterintuitive to me that a hobby driven by touch and feel could be fed by a computer screen and two-day shipping. Of course, we all wished our friend luck and praised him for getting in on the ground floor. But it turned out we weren’t the only ones with reservations. Less than a year later, that “sure thing” startup laid off staff by the bushel, and it was back to Tier One consulting for my friend.

What made me think of this so many years later? On a stroll along Toronto’s Queen Street West, I passed one of the new Warby Parker “brick and mortar” stores. Warby Parker, for the non-hipsters among you, is an American company that formed in 2010 to sell affordable, good quality prescription eyeglasses and sunglasses. Despite its online roots, Warby Parker now has 40 retail locations, with many more planned, including both standalone outlets and mini-showrooms lodged inside existing boutiques.

Naturally I went online to read more about Warby Parker and this crazy new trend of shopping in stores. In an Inc. magazine article entitled Amazon Could Open up to 2,000 Grocery Stores, author Eugene Kim noted “Physical stores are becoming increasingly central to Amazon’s business ambitions as the company expands beyond its online-retailing stronghold and looks for new ways to reach customers.” New ways to reach customers? Incredible. Physical stores are now being heralded as innovative solutions to tech companies’ growth challenges. What Tier One consulting firm helped Amazon achieve this stunning breakthrough?

I get riled up about all this because I staunchly, consistently counsel companies not to chase all the shiny new toys. I know that online retail is not just a fad. But I will never believe that human beings will come to a point where they no longer need personal contact with each other.

A world in which we shop and do business cocooned in our homes or offices, void of smiles, advice and all human contact seems a dreary place to me. And it seems to miss the point that shopping is a personal experience, all about learning, growing and sharing with each other.

If you are a retailer, build the multichannel approach to reaching customers both online and off. If you are in business-to-business, the personal element is even more important. Get off your e-mail, tear yourself away from the Internet and do something novel: Pick up the phone or get in the car and go visit your customers. In real life, they don’t just want commodity service and the lowest price. They want more advice, more reasons to trust, and stronger personal relationships. These competitive advantages can’t be developed with the click of a mouse.

Remember, it’s called customer engagement for a reason.

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Category: Blog, Business, Culture, Icicle, Spyder Works

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Jul 16, 2012

The Three Basic Tools of Innovation: Eyes, Ears & Feet

new-product-development

Innovation Insights

One of a series by Ken Tencer, Spyder Works CEO

During a recent presentation on product innovation to the HBA Global Expo in New York City, I was asked a great question:  “What tools do I need to be a great innovator?”  My answer surprised many people with its simplicity: “Your eyes and ears.” Innovations are all around us, and when we take time to notice them they can stimulate more creative thoughts within each of us.  And I really should have also added “feet,” because the day before I had walked 40 Manhattanblocks looking for interesting and outrageous inputs to spur my own innovative thinking.  Here are two examples of what I found:

First, I noted that Ben & Jerry’s has introduced new Greek frozen yogurt.  They’re jumping on the trend that has seen smoother, higher-protein Greek yogurt double sales in each of the past three years.  It’s still not that healthy – Ben & Jerry’s positions its Greek frozen yogurt as a “reasonable reward,” not health food.  But it’s a fast, clever move to harness consumers’ changing tastes and growing health concerns, while maintaining Ben & Jerry’s reputation for flamboyant branding.  Who else would sell Greek frozen yogurt in flavors such as Strawberry Shortcake, Raspberry Fudge Chunk and Banana Peanut Butter?

I couldn’t miss the A&E TV show Storage Wars.  Why do people love this reality show?  It’s about discovery.  Four (and now more) modern-day treasure hunters, competing to find abandoned storage lockers concealing antiques, bargains, collectibles and other forgotten finds.  In tough economic times, this combination of hope, disappointment and triumph has become a magic elixir to lighten our daily struggles.

If you’re a product developer or retailer, the point is this: little discoveries and everyday surprises are all it takes to engage today’s cash-strapped consumers.

Next time you’re in a distant city – or even a new part of town – don’t even think of sitting back in a cab or going deep underground in the subway.  Take a walk.  Look up, look down, notice what people are wearing, venture into stores you’d never normally go into.  The more we get out of the office to see and hear other people, other products, other places and new approaches, the more ideas we can gather to make our own work more innovative and impactful.

Plus, it’s healthy.

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Category: Innovation, Spyder Works

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Jul 3, 2012

The Cake Pop is the Essence of Innovation

essence-of-innovation

Innovation Insights

One of a series by Ken Tencer, Spyder Works CEO

Some say that successful innovations “mask the complexity behind them”. I put it a bit differently – I believe that successful innovations harness the obvious. One of the great examples of this is the cake pop. These deceptively simple desserts –  frosted balls of cake on a lollipop stick – reflect everything that is right about innovation. It’s a bold new use for a traditional product that opens up huge opportunities for creativity and new sales venues, while reflecting a societal shift to healthier lifestyles (smaller portions), more frugal indulgences, and ease of access for people on the go (look ma, no fork!).

Let me say that again: cake pops didn’t come out of nowhere. Invented by blogger/baker Angie “Bakerella” Dudley in early 2008, they took off a month later when Martha Stewart invited Dudley to make cake pops on her TV show. But cake pops succeeded because they addressed changes in societal norms and consumer behavior.  They also met one other need: they brought a rare and fun originality to the baking and catering industries. Covered with sprinkles or styled to resemble mini ice-cream cones, cupcakes, Christmas trees and even flowers, cake pops can now be found at birthday parties (where they leave much less mess behind than slices of cake), weddings, corporate events and family dinners – anyplace where gracious hosts and hostesses are always competing to serve the newest of the new.

Understanding consumer needs and capitalizing on market shifts represent the essence of innovation. It’s bringing new things to market to continuously re-engage your customers and meet their changing needs. Surprise your customers, delight them and solve their problems, and watch your sales pop.

 

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Category: Innovation, Spyder Works

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