|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.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
May. 7, 2015 12:15 AM EDT Reads: 5,901
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 6, 2015 06:30 PM EDT Reads: 981
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this case) takes into account the number and quality of contextual references that a user receives.
May. 6, 2015 06:15 PM EDT Reads: 2,755
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
May. 6, 2015 04:45 PM EDT Reads: 866
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
May. 6, 2015 04:30 PM EDT Reads: 1,308
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around the world, while creating a new service that Avnet and its IT solution providers can offer to their...
May. 6, 2015 02:45 PM EDT Reads: 1,084
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
May. 6, 2015 12:00 PM EDT Reads: 4,540
It's time to put the "Thing" back in IoT. Whether it’s drones, robots, self-driving cars, ... There are multiple incredible examples of the power of IoT nowadays that are shadowed by announcements of yet another twist on statistics, databases, .... Sorry, I meant, Big Data(TM), tiered storage(TM), complex systems(TM), smart nations(TM), .... In his session at WebRTC Summit, Dr Alex Gouaillard, CTO and Co-Founder of Temasys, will discuss the concrete, cool, examples of IoT already happening today, and how mixing all those different sources of visual and audio input can make your life happier ...
May. 6, 2015 11:15 AM EDT Reads: 776
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
May. 6, 2015 11:15 AM EDT Reads: 3,263
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
May. 6, 2015 11:00 AM EDT Reads: 3,009
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
May. 6, 2015 11:00 AM EDT Reads: 4,036
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
May. 6, 2015 11:00 AM EDT Reads: 5,906
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
May. 6, 2015 11:00 AM EDT Reads: 4,484
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
May. 6, 2015 10:45 AM EDT Reads: 4,506
In his session at WebRTC Summit, Peter Dunkley, Technical Director at Acision, will look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. He will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter Dunkley is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS...
May. 6, 2015 10:30 AM EDT Reads: 744
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
May. 6, 2015 10:30 AM EDT Reads: 5,511
What if, during a snow emergency, an on-the-ground sensor could automatically trigger a relevant emergency notification related to snowfall and road impact. And then, after it’s triggered, that notification is delivered intelligently to individuals based on an extensive set of rules designed to alert the most available and capable responders. This “what if” question about “smart highways” is short-sighted. We are already there, and we are only getting started. While mainstream attention is paid to machine-to-machine communications, new technologies are being developed to make these communica...
May. 6, 2015 10:26 AM EDT Reads: 627
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
May. 6, 2015 10:00 AM EDT Reads: 5,677
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
May. 6, 2015 09:45 AM EDT Reads: 3,520
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 6, 2015 09:45 AM EDT Reads: 6,065