Razors, Blades and Bananas – Innovation in The Fight Against Big-Data Driven e-Retailers

Hey, you, Mr. independent dealer. I’d like to talk to you about your “innovative solutions”, and for now let’s use the age-old analogy of razors and blades.

Just like Gillette we all know it’s about the blades, you quote pricing by the shave and to keep your customers interested you offer a full line of creams, brushes, aftershave lotions, etc.

Oh yeah, that’s right I forgot, you think you’re innovative because you’re now also offering haircuts and hot towels. If the razor breaks, you’ve got a team that can repair it within hours. Great, what makes you any different than the dealer down the street or even, the lurking online retailers? Don’t tell me it's the personal relationship that you maintain with your customer, I'm sorry that doesn’t cut it today (pun not intended).

Ask the local grocer or butcher how that personal relationship helped them when Walmart came town. Or maybe we should talk to any of the Big Box retailers who are getting their butts handed to them right now by Amazon.

Even the Almighty Walmart is losing market share to Jeff Bezos’s data driven, marketing monster. Online has now bridged the last mile gap with the recent acquisition of service groups and brick and mortar locations, they are the local option as well.

Stop thinking about adding things like hot towels, fancy lotions, Hipster decor and even massages. Products and services within your current scope are not going to cut it anymore (pun intended). If you want to be in business to tomorrow and growing, well then you need to rethink the way and reasons that we shave. You, more than anyone know your customers and if you don’t find a way to utilize that information to expand your offerings, well then I’d start thinking about selling while you still have some value.

Let’s move away from the analogies, I’m sure you got the point and it’s getting annoying even for me.

Do you know why Walmart and Amazon are gaining ground so mind-blowingly fast? They embrace and revel in massive amounts of pure customer data – they know everything about every one of their potential and current customer. They utilize this information to localize stores and offerings and then plan every aspect of their futures around it. I call what they do the This and That methodology. You buy this, you need that; You want this, you’ll buy that, etc.

Stop thinking that you are only an office technology partner and start finding new avenues. Explore not only where your customers are today but where they want to be next year and find ways to help them get there. Saving them $0.001 per copy doesn’t buy you a seat at the table because even though print is nice and people still do it, it’s not a business-critical operation anymore. 

How do you start thinking and acting truly innovative? I’d start by hiring people way outside your current knowledge & comfort zones, start thinking like an entrepreneur again and analysis your customers entire business model looking for that next big idea. You must consider truly innovative solutions like your business depends on it – because it does.

Why did Jeff Bezos step way outside and buy Whole Foods? Simple, a huge percentage of WF customers are Prime members and if you’re going to get into groceries well then knowing what your current customers are buying (that’s data) is crucial, and most importantly Amazon is now in their neighborhood with a familiar brick and mortar location.

Why have an Amazon "Geek Squad"? Easy, local service so that they can move into offering larger and more technical solution. Which are supported by warehouses who have logistics down to a science. Amazon now has a technologically fluent service force and can offer same day / next day delivery solutions for high-tech.

Doesn’t all of this scare the crap out of you? The second that Amazon has a local sales team the OEM(s) are going to be standing in line to sign up, if they're not already. Where will you be then? What value do you bring to the table? If you don't innovate, and quickly, I'll bet you’re going to be forgotten about like an old rag flapping in the breeze.

So, tell me again what are your innovative solutions that online retailers can’t compete with?