6 minute read
THE IMPACT OF DIGITAL DISRUPTION
Digital disruption and its impact on the OP industry
Michelle Aston, marketing manager at Aston and James, explores the impact of digital disruption on our industry – and how dealers can make the most of it
THE CHALLENGE
What digital disruption is starts with you. Although the term ‘disruption’ has negative connotations, in reality, it is only negative for those who choose to dismiss it in the hope that it will go away and not have an impact. Kodak and Blockbuster video are good examples of this; they saw it coming but did not adapt their product offering to compete with changes in digital technology.
For those who choose not to ignore it, it presents an opportunity to embrace new technology and review both internal and external processes. In a nutshell, quoting the Gartner definition, digital disruption is, ‘an effect that changes the fundamental expectations and behaviours in an industry that is caused by digital capabilities, channels or assets’.
Disruption is the result of emerging digital technologies and business models driven by intelligence, technology and consumer expectations. Personalisation, artificial intelligence and big data are shaping the way we, as consumers, buy while, at the same time, raising our expectations. Digital technology is shaping the way businesses operate, enabling new ‘hyper disruptive’ business models, such as the subscription model - eg. Netflix, Amazon Prime - and the eco-system model - eg. Google and Apple.
Whether we like it or not, disruption is real. As I see it, there are two key points of impact on us as office products dealers - power and expectations; power of competitors and changing customer expectations
HYPER COMPETITORS
The constant changes in digital technology make it necessary to know, not only who our competitors are, but also what our competitors are up to. How does their online customer experience differ? What new products are they offering, are they changing pricing strategies? What technology/ software are they using?
Competition in the office products industry is fierce and, with increasing innovations in digital technology, power has shifted from dealer to consumer. Consumers, along with a click of a mouse, are presented with the product they desire at varying prices - prices for we dealers to compete with. Google refers to this as ZMOT – the zero moment of truth - the moment in the buying process when a consumer researches a product before purchasing. Although not as straightforward with B2B, and the use of customer contracts, the consumer still has the ability to compare prices quickly and easily.
Digital disruption has enabled a new breed of competitors: hyper competitors (indirect competitors). We are now in an increasingly borderless, category-less market, with competitors from other business sectors trying to compete. Facing threat from indirect competitors is going to become an increasing challenge for dealers. The market is being determined by strength of brand, and the ability to grow and diversify in order to meet consumers changing needs. Once a company wins a consumer’s trust, it becomes easier for them to consolidate, and for the brand to accommodate their changing needs. At Aston and James, we have grown through related diversification into new products categories to be able to continually compete for ‘share of wallet’.
CUSTOMER EXPECTATIONS
As a digital marketer, this is what fascinates me – how digital technology has changed not only how we buy, but the experience we want when we buy, and the challenge this gives organisations to continually improve in order to compete for brand loyalty. As a consumer with convenience high on my agenda, I continually strive to find excellent customer experience and, when I do find it, I am happy to spread the word.
I shopped online for the first time with Morrison’s recently; after easily navigating my way round the online store, and placing my order, I received a text to again confirm my time slot, the name of the delivery driver and the van registration number. I then even received a free gingerbread Morrison’s delivery driver biscuit as a ‘thank you’ for placing my first order. I was one very happy customer, looking forward to ordering again. I am not alone – consumers want to buy easily, quickly and conveniently, and even be rewarded for doing so.
Emerging digital technology has enabled significant improvements in customer data, which is used to enhance our buying experience. Personalisation software is a good example where data is used to capture our buying habits to personalise our experience by way of recommended products and offers.
We have the likes of Amazon to thank for this. Love them or hate them, they are known for placing customer-centricity at their core. Although selling everything from A to Z, first and foremost they sell convenience and have the data and software to do so successfully. We get used to the shopping experience such use of data provides and so expect it when shopping online, regardless of the brand.
THE OPPORTUNITY
There is no easy way for companies to fully embrace and prepare for its impact – yet with the right tools, mindset and knowledge, disruption presents an opportunity to be transformational and not get left behind. There is much to be said for the saying ‘You snooze, you lose’. As dealers, we may not have access to AI, personalisation and big data software like large retailers and Amazon do, but there are some changes that can help us compete for that all-important brand loyalty.
First and foremost, acknowledge digital disruption. A major barrier to addressing disruption is the inability to implement and manage change, whether as a result of lack of management buy-in or resources.
Once acknowledged, accept and embrace the opportunity to build trust and provide customers with what they need, along with the experience they expect. An understanding of customers’ needs can open up opportunities for growth, as well as improving the online experience. This is by no means a difficult task; customers can be segmented, profiled and surveyed to find out what their pain points are in order to understand how you can help solve them. At Aston and James we have done this on several occasions with interesting results.
It may sound obvious, but take yourself on your customers’ journey, both on and offline, from the moment they land on your online store, to the moment the products arrive on their desks. Where are the ‘leaking buckets’? Which steps in the process are causing pain, and which steps create trust? Which parts of the journey can be optimised, both to improve customer experience, and opportunities for conversion?
There are many options when it comes to your online store, including banners and product reviews, and even speaking to your online store provider to find out about new integrations. Customer experience also extends to post-sale engagement, with the possibility of sending targeted product recommendations and offers, as well as blogs. A simple ‘How was it for you?’ email goes a long way to make the customer feel valued.
Even though, as dealers, we may not have the budget for big data and personalisation, we do have access to useful data to address the age of disruption. Google Analytics, social media insights, internal sales data and ‘voice of the customer’ data by way of surveys and feedback can all help improve our customers’ experience and build trust.
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