Nimble, Responsive, Proactive, Creative, Woke!

I am not in any way discounting the dangerous and dire straights we are in these days with the global pandemic and how it is affecting our health and economy.  But it occurred to me when I was not doing anything this weekend (which happens a lot these days) that we are a nation of innovators, and that most of the tech innovations and discovers came from the U. S.  If ever there was a time to “think outside the box” (why do we use that expression?  Why don’t we think outside the parallelogram or the rhombus?) it is now.

Businesses are closing down by the hundreds.  How to fix this?  What can we do?  And just as I was musing/obsessing about this, we drove by a billboard on the 101 in San Francisco for Salesforces’ new product “Work.com”.  Full disclosure, my son works for Salesforce, so I am not completely objective, but my thought was “that’s brilliant”  Work.com, is described as “providing all the latest thinking, models, advice and all new work.com solutions.” Some of the things you can do with the new system are quoted as follows:

• Get products to support your return to the workplace
• Find thought leadership content from renowned experts
• Access all the latest COVID-19 data
• Learn through inspiring stories
• Extend with guidance from our ecosystem

Brilliant!  A solution, instead of a worry or obsession.  I began to look for other exciting new solutions to our current state and I found another.  The whole movie industry has been turned on its head, with the closure of cinemas.  New releases and summer blockbusters, so important to viewership at theaters, are being scheduled for first run on television private services.  One proactive solution, the reemergence of drive-in theaters!  Anyone over 30 remembers going to the drive in first with your parents when you were a kid, and then with your friends as you got older and were able to drive.  I remember getting in the trunk at the drive-in gate, with some of my friends, so we didn’t have to pay as much.  Morning Consult provides an amazing array of data on topics important to all of us.  Their entertainment sector report this morning presented data from another completely nimble solution, the return of the drive-in movie theater.

This gorgeous picture is an aerial drone view of a temporary drive-in movie theater at the Rose Bowl stadium, known for its spectacular Fourth of July fireworks which were canceled this year to reduce large public gatherings due to COVID-19 concerns. The latest polling of 2000 adults over 18 in the United States shows the following fascinating results:

Results indicate that the majority of Americans (55%) are interested in returning to the theater in a safe fashion.  The bravest is Gen Z, (aged 10 to 25 years of age) including 66 percent of Gen Z adults. Adding to the potential draw of the drive-in is that audiences are 12 percentage points more likely to be comfortable with watching a film outdoors than inside, according to separate Morning Consult polling.

Drive-in or picnic style movies are simple to set-up and earn revenue on food and beverage.  Some drive-ins have even tried offering upscale sandwiches, picnic baskets, small-batch microbrewery beers, and designer wine brands curated by a sommelier.

For commercial real estate owners, business is not good right now.  But what if we thought new:  Let’s host art shows, turn our parking lots into drive-ins (Walmart is doing this!), offer our locations for COVID testing!  Let’s have a “can do” attitude and turn around our dire situation right now! Maybe we can even give our clients and customers something to smile about!

Let me know what you’re doing creatively in your spare time.  We always love to hear from you and right now, nothing is more important than sharing ideas and innovations!

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The Rumors of Retail’s Demise Are Greatly Exaggerated – Who Will Win, Who Will Lose?

A new poll conducted by Chain Store Age asked about the best customer service retailers across 160 retail sectors.  The survey was based on more than 20,000 customers who have made purchases, used services, or researched data about the company from 2017 to 2020.

The Top 3 made me laugh because… well, look at who they are:

 

1. Disney Cruise Lines
2. Neiman Marcus
3. The Ritz-Carlton

These top three companies are high-end with customers residing in the top income tiers.  Besides the irony of Cruise lines in the age of Covid, a department store that recently declared bankruptcy, and a hotel chain when few are traveling, one of the most important customer service behaviors of these examples includes treating customers well.

The other seven retailers noted below in rank order, appeal to a broad demographic, several in the mid-market category:

1. Edward Jones
2. Chick-fil-A
3. L. Bean
4. National Storage Affiliates
5. Embassy Suites
6. Publix
7. Beau Coup (Wedding, Baby Shower and other “Significant Event” Party Favors)

While we understand that many businesses in the middle to moderate income space equate cheaper prices with less sales associates and very little customer service, that won’t work in these very competitive retail times.

As an example of doing it right, number 1, Disney, began calling their customers “guests” early on in their corporate culture.  The difference between a guest and a customer is clearly shown in the simple definition of the two words:

• A customer is a person or organization that buys goods or services from a store or business.
• A guest is a person who is invited to visit the home of or take part in a function organized by another.

When #2 ranked Neiman shook up its executive suite in 2019, Scott Emmons, who led the company’s “Innovation Lab” wrote as a parting statement:  “…we know that retailers are far from delivering what they must to guard against doomsday scenarios for physical stores.  After 16 years working for a top luxury retailer, I can say with confidence that traditional players in the US and abroad are not innovating the right way.  Processes are broken, execution is too slow, politics stalls decision-making and resources are too scarce.”

Retail is a microcosm of the culture it lives in.  One of the first steps in solving a problem is to recognize there is a problem!  The wrong way to be a stellar retailer I liken to Trump, who’s following has fallen precipitously in recent weeks. To be successful, retailers must aspire to be good enough for the majority of the population who now demand to be treated well, whether shopping at a Walmart or at a Sur La Tab.  These consumers are driving the future of retail, and on a larger scale, the future of the United States!  As we begin to thaw from the current months of lockdown and America returns to stores, restaurants, museums, and travel, the CUSTOMER EXPERIENCE will determine the winners and losers at the full spectrum of retail.  And while many of our favorite brands may not be left standing, those who continue to sharpen their “experience” skills will come out on top.

Do you agree or do you believe out-of-home shopping is gone forever?  Let us know your assessment.  We always love to hear your view!