Retailers are only beginning to realize the potential of AR. As a new generation of shoppers steeped in AR grows up, their expectations will exceed the novelty acts the industry has put out to date. AR features won’t just be a one-off promo or tied to a game release; they will become the basis of the in-store customer experience, one that looks nothing like the retail of today.
For FedEx as for the many other companies and industries Amazon has decimated over the past 20 years, the problem in confronting Amazon may turn out to be one of margins. While FedEx needs a profitable delivery business to survive, Amazon can afford to lose money on delivery and make it up with relatively free-flowing profits from Amazon Web Services and its booming ad business.
In fact, Amazon can afford, thanks to the faith and generosity of investors, to make no profits at all. No easy task, competing with that.
There’s a renewed push in Silicon Valley to tackle last-mile delivery. The use of autonomous vehicles, drones, and artificial intelligence is what more and more vendors are pushing for. Last-mile delivery is the most expensive part of shipping, and increasing fees mean prices are only going higher. The company that can get goods from a transportation hub to the customer’s doorstep in the shortest amount of time will win the retail game, and technology firms are hoping that their innovative solutions will be the answer that retailers are looking for.
Here are six examples of companies that are working to innovate in the last-mile delivery space.
External data is incredibly hard to use and make sense of. After all, it is just data. It is usually delivered via a big CSV dump or API call. Most data companies just hand off the data to their customers and say “good luck.” In fact, a decent amount of purchased data just sits on the shelf and is never used.
This is where the forward-thinking consulting firms and agencies come in. They have a massive opportunity to help organizations make use of external data.
Amazon wasn’t the only retailer to see high purchase intent during its two-day event. Competing retailers saw similar successes piggybacking on Amazon’s newest shopping holiday with their own discounts and limited-time deals. This year’s Prime Day event drove a 14% spike in U.S. traffic on its first day, compared to baseline traffic from the month of June.
According to data collected by Constructor.io, an AI-first SaaS provider for ecommerce sites, among the non-Amazon companies having sales during Prime Day, search volume increased an average of more than 500%.
The retail landscape is going through an evolution, with mom-and-pop stores on Main Street being replaced by e-commerce outlets that rely on sophisticated algorithms to manage virtually every aspect of business operations.
While most headlines about the transformation of retail focus on the consumer-side of the equation, there’s even more change going on behind the scenes. Competition between e-commerce and brick-and-mortar is forcing innovation in the way retailers approach the challenges that come with onboarding and retaining in-store associates.
Unlike other shopping “holidays,” like Black Friday and Cyber Monday, Amazon Prime Day is specific to a single retailer. But as the event grows, other retailers—both online and offline—are finding ways to leverage the anticipation that consumers are feeling.
Last year, 63% of Prime Day shoppers said they visited competing websites to compare prices. This is a major opportunity for online retailers to capitalize on the spike in traffic and provide consumers with personalized and targeted offerings and exclusive deals.
Long lines of shoppers snaking around retail stores used to be commonplace on the morning after Thanksgiving. So was the tradition of picking up a print newspaper for an early look at the Black Friday ads. But with retailers like Amazon, Nordstrom, Alibaba, and Flipkart creating their own shopping holidays, the frenzy around Black Friday and Cyber Monday has been tamped down. Is this a sign of the times or just a blip in retail’s evolution?
To find the answer, the mobile app marketing firm Liftoff and the mobile measurement company Adjust teamed up and took a deep dive into the consumer activity on shopping apps throughout the calendar year. In a new report, the firms found that with excuses to shop year round, traditional shopping holidays, like Black Friday and the New Year period, are waning in significance. These events are gradually becoming less vital for online and offline retailers, even if they remain important moments.
Street Fight is rolling into July with the monthly theme Disrupting Retail: a look at how retail continues to transform, driven by competition from Amazon and key trends like “retail-as-a-service.”
But why is this important to Street Fight (and to you)? As we continue to evolve the definition of “local,” one key component of its market opportunity is offline brick-and-mortar shopping. After all, about 90% of all U.S. retail spending, to the tune of about $3.7 trillion, is completed offline in physical stores. And that’s usually in proximity to one’s home (thus, local).
Global brands—the kind that can afford huge teams of in-house marketers—are increasingly relying on marketing automation tools to manage triggered email campaigns, prioritize leads for sales, and leverage mobile campaigns across their customers’ journeys.
Here is how five top global brands are deploying automation to improve the way they interact with customers.
Partnerships between retailers and tech platforms will provide increasingly important benefits for local discovery as voice becomes a more established search channel. In the age of voice-driven local search, consumers looking for products and services will become accustomed to having only one option surfaced (as Assistant is unlikely to rattle off five choices), which means being a consumer’s first option will be paramount for brick-and-mortars.
There’s nothing more hyperlocal than the on-demand class of startups, which feed off the everyday use cases spurred by a mobile-first world: whipping one’s phone out to order food from a local restaurant (Postmates, GrubHub, DoorDash), hail a ride (Uber and Lyft), or cut out a trip to the grocery store (Instacart, Shipt). Postmates’ founding ingenuity was to apply the convenience of ride-sharing to product delivery. Eight years later, it’s a food-delivery powerhouse, and its value may strike nearly $2 billion.
The Local Search Association announced this week a slate of 20 finalists for its annual awards celebrating the best in local and online-to-offline marketing. Among more than 80 submissions, the finalists have been recognized for their outstanding work in such categories as reputation management, SMB software, and local search.