CART Weekly Report 6/13/19
CART, Advancing Retail
Gary’s Take: The rollout of 5G over the next several years will be transformative, especially for retailers. The speed of 5G is mind-blowing: A two hour movie download took 26 hours using 3G tech, 6 minutes with 4G, and will take only 3.6 seconds with 5G. Beyond speed, 5G offers much more bandwidth, enabling billions (trillions?) of IoT devices to stream data from everywhere - are retailers ready for the realtime store? And, for those regional retailers located in rural parts of the U.S. who think their customer base has not yet embraced the digital age - 5G will finally bring high-speed connectivity to all areas as it is much cheaper to deploy than cable. 5G will do nothing but increase shopper expectations of having everything they want available in moments. But is retail ready to deliver?
Gary’s Take: Mary Meeker, the "Queen of the Internet", is out with this year's deck calling out the most important internet and digital trends. Her report is always fascinating to review, but long at 300+ pages. Here are a few highlights as pertains to retail: eComm is now 15% of all retail sales and growth continues to outpace brick & mortar. Internet ad spending in the U.S. is up 22%; 62% of digital ad is programmatic. Customer acquisition costs are going up - in some cases it surpasses customer revenue! Targeted advertising is under threat from GDPR and other data privacy regulations. Americans now spend 6.3 hours a day with digital media and it continues to grow. Lastly, healthcare is becoming more digital - lots of implications here, especially for the food industry.
Gary’s Take: Interesting that word-of-mouth is as - perhaps even more - important in the digital age in securing new customers. With deep experience in retail loyalty, I would suggest that recognition is the most powerful way to build loyalty that in turn powers positive word-of-mouth. In years of working with prominent retailers in markets around the world I inevitably found that recognizing customers, especially a retailer's most valuable customers, transcended cultures. There are countless ways to provide that recognition - everything from a simple handwritten thank-you note to special offers to the store manager greeting the shopper in-store. One of my favorites occurred years ago when I helped M&M Meat Shops of Canada build their loyalty program. On Valentine's Day we had each store owner hand deliver a bouquet of roses to their top 10 customers. Talk about positive word-of-mouth!
FEATURED BLOG OF THE WEEK:
RETAIL’S BIG DATA CHALLENGE...AND OPPORTUNITY by Gary Hawkins, CEO CART
2019 GMDC GENERAL MERCHANDISE MARKETING CONFERENCE, Gaylord Rockies Resort, Denver, CO - June 13-17, 2019
DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION, Boston Immersion Event - Hosted July 17 & 18th, 2019
OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC
The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey.
C-Store operators can register today at https://outlookleadership.com/ using Invite Code: power
REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas
GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas
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CART is Advancing Retail by connecting the industry to innovation. Retailers, wholesalers and brands utilize CART to find, research and connect with solutions appropriate for their businesses. Solution providers use CART as a go-to-market tool that connects them directly to their target retail audience, all the way into the brick and mortar store itself. CART has unparalleled insight into what’s next in retail and shares this information regularly through multiple channels.
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