Meeting The Challenges Of The Empowered Consumer

Retail is experiencing substantial change because consumers are now empowered by the web with information about price, availability, and merchandise features.

The retail industry is still served by solutions that are too fragmented to adequately balance the asymmetry introduced by radical price transparency. There are solutions for transactions, web site, stores, and so on but little to empower the cross-channel retailer to really meet the consumer’s needs.

I’ve recently been looking at IBM’s Smarter Commerce initiative and its portfolio that integrates:

1)    Store applications. IBM has well-established high-volume store apps appropriate to high-volume, low-touch retailing but correctly identifies these as inappropriate for fast-growing specialty retail with low-volume “high touch.” This is why it acquired the “asset” of Open Genius.

2)    Web metrics. IBM acquired Coremetrics in order to bring the discipline of measuring traffic, conversion, and average order to cross-channel retailing. It’s only by monitoring such metrics that retail can understand which marketing strategies are really successful and which market segments are most receptive.

3)    Direct-to-consumer initiatives. IBM acquired Unica as a platform for integrating automated direct-to-consumer marketing with its cross-channel offering.

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