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Posted by Martin Gill on April 9, 2014
Digital disruption is both an opportunity and a threat.
In the age of the customer, firms that assume that what made them successful in the past will continue to drive competitive advantage in the future are doomed to failure. But as a counterpoint, those firms that embrace the opportunity digital technologies bring to get closer to their customers by creating contextually relevant, personalized customer experiences will thrive. That’s the theory, but what does it look like in practice?
This week, two major UK grocery firms paint opposite ends of the digital spectrum.
So what is Asda getting right that Morrison’s isn’t?
Retail basics remain largely unchanged. Product, price and promotion are still critical. The best website in the world won’t sell rubbish, overpriced tat. Both retailers sell similar products at a similar price point. But Asda understands its customers. It has a clear cross-touchpoint strategy. In fact, it reported a massive uplift in mobile and tablet sales and is pinning much of it’s eCommerce growth plans on click and collect. And why not? Both Sainsburys and Tesco have already proven that business case.
The moral of this story is that you need to be where your customers are. And that means understanding the increasingly cross-touchpoint, multi-device nature of modern shoppers. Forrester’s Global Retail Segmentation can help here. New Analyst Michelle Beeson has just published a European deep dive of the segmentation in the first of a series of documents that will examine the shopping behaviours of particular demographics and regions. For more insight, also read the blog post by Michelle on her new report.