|By Kevin Benedict||
|June 24, 2014 09:45 AM EDT||
Retailing has always been hard, but it is getting even harder. Brick and mortar stores are struggling to get people into their buildings to see and buy their products. Even when customers enter the store and look at the products, they often reach for their smartphone to check prices and opinions from other locations on the Internet. Retailers are being digitally disrupted in all kinds of ways. In many cases this disruption is via mobile devices, but that is not all of the story.
Amazon is often listed as the top digital disruptor in retailing as they are gobbling up market share in all kinds of categories. Today, they announced their own smartphone. Why? The smartphone is a data generation engine. It can provide massive amounts of data about you, your location, browsing, shopping and research interests.
My colleague, Peter Abatan has been pondering the struggles of traditional retailers and shares his insights with us here.
Recently, Tesco announced a third consecutive quarterly drop in profits and suffered its worst slump in 40 years, similarly, Sainsbury's announced its second consecutive quarterly drop. Having lived in the UK for a considerable part of my life, and being a holder of loyalty cards from both grocery chains, I wonder if these supermarkets really understand who I am, and what I like to purchase? I also ponder why it is so difficult for these behemoths to connect with me on a social level?
If ever a business or organization should be at the forefront of personal Code Halos strategies, it should be Tesco and Sainsbury's. Code Halos strategies are the information that surrounds people, organizations, and devices. Every click, swipe and view, every interaction and transaction generates a halo of code that's robust, powerful, and rich with meaning and insight. The data they hold on an individual is enough to make some basic assumptions about that person, giving them the opportunity to upsell or down-sell products and services depending on their spending patterns. For example, what a person buys can help determine whether the person lives in a one-person household or a multiple occupant household. It can indicate whether a person has realized a rise in income or an economic set back by the type and quality of products purchased. Purchases can hint at birthdays, weddings, babies, religious practices and holidays, and ethnic food preferences.
These economic trends associated with the individual can enable these grocery chains to help the customer stay loyal, by targeting special offers and deals specific to that customer's needs. For example, these grocery chains can offer a product regularly purchased by the customer, as an occasional treat to help retain loyalty. As the price cut chains like Lidl and Aldi continue to eat away at the market share of the big five in the UK, the survival of the fittest will depend on these grocery chains maximize the use of personal Code Halos to their advantage in order to engender loyalty from their customers.
I shop at any of the big 4 grocery chains because I feel none of them do really understand who I am as a customer. I have come to the conclusion that it is the ability to create a relationship with the customer that is essential to engendering loyalty. If Tesco can say to me, "Mr Abatan, we noticed that you bought the ingredients for a coconut cake, did you know that apart from making a coconut cake you could also make coconut flavored bread and here is the recipe to make it." Now that is a relationship that could last for a very long time. Another example is, "Mr Abatan we noticed that you have not bought petrol from us for a while. If you do so before the end of the week we will give you £4.00 off your next purchase."
Code Halos are about using technology to enhance relationships with the customer and to help the organization to grow in the midst of very stiff competition. There are supermarkets like ASDA that do not use loyalty cards, and use demographics to determine what products will sell in a particular area, and which ones would not. Cut price supermarkets like Aldi and Lidl probably use the same model, but I believe this is not sustainable. They all have to start to understand the individual customer and their needs, likes and dislikes.
By understanding my Code Halo, supermarkets can specifically target products that meet my needs. For example superfoods that can help me lose weight or run faster. It can begin to understand when I am likely to run out of a product and generate a shopping list that ensures that I do not forget something essential next time I visit the supermarket. These grocery chains need to connect with their customers via social media if they are to understand what their likes and dislikes are because it all goes towards understanding the personal Code Halo of every single customer.
Loyalty cards like Nectar for Sainbury's, Clubcard for Tesco and the latest edition myWaitrose by Waitrose are a great start, but these businesses need to recognize and fully understand every customer's personal needs and find a way to connect with those needs one customer at a time. As Malcolm Frank et al state in their book titled "Code Halos", "We can find meaning-making potential almost everywhere; the information surrounding every individual, product or organization is fantastically rich with clues and cues about past behavior, current needs and future possibilities". The authors go on to say ""Decoding" your customers' Code Halos - understanding in fine-grain detail who they are and what they value - is becoming the new way to win in business."
There is no doubt that Code Halos are now transforming all our lives and the lives of organizations as well. It will help us to achieve our goals faster, more efficiently and in a non-intrusive way. In essence, grocery chains need to think differently beyond price cuts and price wars, and begin to build solid meaningful relationships with each customer one-at-a-time.
Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business by Malcolm Frank, Paul Roehrig and Ben Pring.
(Published by Wiley 2014)
Writer, Speaker, Editor
Senior Analyst, Digital Transformation, EBA, Center for the Future of Work Cognizant
View my profile on LinkedIn
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Browse the Mobile Solution Directory
Join the Linkedin Group Strategic Enterprise Mobility
Join the Google+ Community Mobile Enterprise Strategies
Recommended Strategy Book Code Halos
Recommended iPad App Code Halos for iPads
***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 29, 2015 03:15 PM EDT Reads: 230
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Jul. 29, 2015 03:00 PM EDT Reads: 1,251
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
Jul. 29, 2015 02:00 PM EDT Reads: 1,165
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 29, 2015 01:45 PM EDT Reads: 419
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Jul. 29, 2015 07:30 AM EDT Reads: 275
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 28, 2015 06:30 PM EDT Reads: 1,376
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Jul. 28, 2015 04:30 PM EDT Reads: 1,754
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Jul. 28, 2015 11:00 AM EDT Reads: 2,032
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 27, 2015 09:00 PM EDT Reads: 2,039
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Jul. 27, 2015 10:00 AM EDT Reads: 2,020
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Jul. 27, 2015 09:00 AM EDT Reads: 311
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
Jul. 27, 2015 08:00 AM EDT Reads: 1,894
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
Jul. 26, 2015 09:00 PM EDT Reads: 1,559
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
Jul. 26, 2015 08:00 AM EDT Reads: 2,141
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 25, 2015 02:00 PM EDT Reads: 380
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Jul. 25, 2015 01:00 PM EDT Reads: 1,945
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
Jul. 25, 2015 12:15 PM EDT Reads: 445
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 25, 2015 12:00 PM EDT Reads: 1,522
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jul. 25, 2015 09:00 AM EDT Reads: 1,481
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Jul. 24, 2015 11:00 PM EDT Reads: 2,049