Nikki Baird, Forbes contributor focused on retail, recently delivered a brilliant message – and opportunity – that applies to everyone involved in selling wine at the retail level.
Here are the critical pieces, copied from Forbes:
“So what does digital transformation mean in retail? It’s about moving from this obsolete product-centric model to one that is customer-centric.
Retailers need to focus on the digital value chain – one focused on collecting data (about products, customers, and locations), turning that data into insights, and then turning those insights into action.
Ironically, this is actually Amazon’s game.
I seriously doubt the labor savings of no cashiers in store was ever the driving value from the investment. But, oh, the data gathered!
One thing I’ve learned in my own travels is that innovative retailers do not define ROI in terms of optimizing processes. Instead, they look for projects that create opportunities to gather data – all kinds of data, including the expected and the unexpected.
The value of innovation projects comes from how quickly that data can be turned into insights, and how quickly those insights can be turned into actions. It’s those actions that ultimately drive the return on investment, by creating new services for customers, new kinds of engagements, or capitalizing on insights into what customers want by more closely meeting their needs.
Retailers fail at making this transition in three ways.” Does your organization relate to any of these three concerns?
“One, they try to protect their existing organizational structure from radical change.
Two, they don’t develop an insight-driven culture. No unified data strategy. No emphasis on turning data into insights. They continue to rely on corporate myths about what customers really want.
Three, they don’t value technology as an enabler.
Contrast that with Amazon, which is more willing to invest in new processes or technologies to see what they can learn – to collect the data, and then look for ROI, rather than the other way around.
Digital transformation is for real. Retail as a business can no longer be just about products. It has to be about customers.
The money to be made will come from the volume of customer insights a company can generate and how quickly they can put those insights into play, not from how fast they can move product.
Radical change – digital transformation – is not coming. It’s here.”
How we think of ROI has become so entrenched, it has also become a major obstacle to innovation, exponential growth and market leadership.
Please pass this excerpt on to your teams.