Who's Job Is Growing? The CUSTOMER's Job!

Think about cost-savings programs in stores - e.g., less staff on the selling floor and more "self-service". Self check-out by the customer. Online searches by the customer for product information. Online shopping.  

Don't each of these actually shift the work to the customer? 

The "job" of being the customer just keeps growing. (In fact, some grocery stores are starting to experiment with programs "allowing" the customer to scan the merchandise, place it into their shopping bag in their grocery cart, and then automatically ring up the total charge and pay via debit card - all using the customer's time, effort, and smart phone! "Attention Shoppers: Bring your own cash register.")  

Where is the "value" for the customer in all this?  

Reflect for a moment on the definition of "value".  Value: Benefits received, for the burdens endured.  

Certainly, many of the shopping burdens have been shifted to the customer, especially with the onslaught of new technology. But, what benefit does your customer receive for the increased "burdens" they now endure?

Some enjoy cost savings. Others like the increased sense of control. Still others may relish the time savings, or at least not having to wait for service.  But of course, not every customer has the same concept of a "burden".  

Want to deliver more "value" to your customers?  Start by understanding what your best customers consider the burdens of shopping with you.  Then, as a competitive edge, unburden them the best way you can! 

Google and Amazon As Retailers?!?

Amazon's best-selling holiday item was its own Kindles. And now Google is selling its Nexus One smart phone online, directly to the customer (bypassing Google's previous customer, the phone carriers.)

Yep, selling to the ultimate consumer IS the definition of retailing. Increasingly, manufacturers assume that only they can "do justice" to their product line.

We all know what these companies are trying to do. They have immense confidence in the merits of their respective products, and they think retailing is easy. But it's not just the product. And retailing isn't easy.

The real test is whether these technology giants-turned-manufacturers-turned-retailers actually can be merchants? That is, can they consistently provide value to the customer?

Value: the benefits received for the burdens endured.

In our view, Google and Amazon are asking consumers to assume most of the burdens in these transactions.

• Go to the website, learn about the product, choose the item
• Ring up the transaction; send the money to us safely
• Be available to take delivery of the product
• Have questions? Use the online help forums.
• Have a return? Box it up and send it back.
• And "trust us" about receiving the credit.

Remarkable cost savings for the manufacturer. All those burdensome "retailing" issues have been shifted to the customer. Granted, maybe 10% of the market will think this is wonderful. No muss, no fuss.

Still this nagging question: Will the rest of the customers willingly endure these burdens?

Hasn't Apple proven that there's a role for storefronts "for the rest of us"?