Shopping in Olympic proportion
This year’s Olympics coverage on NBC stood in stark contrast to the television network's failed attempt to offer expanded audience choice through their pay-per-view “Triplecast” in 1992. Remember that 20 years ago, NBC aired the Olympics through three pay-per-view channels? Their total number of subscribers, either for a one-day pass or any of the “gold,” “silver” or “bronze” packages probably couldn’t equal even the smallest service area for a major cable company.
This year, NBC had an Olympics multicast – and viewers didn’t have to pay a single dime to catch a single dive. It reminded me of today’s shopping trends and the countless choices shoppers now have.
The days of single-channel shopping are waning. In fact, a recent report released by Kline & Company – OTC Retailing: U.S. Alternate Channel Analyses and Opportunities – points to the sharp growth in non-traditional channels, including online, convenience stores, dollar stores and warehouse clubs. The report cites significantly faster growth in alternative retail formats that now account for about 15% of category sales.
Gone are the days when loyalty is assumed. Gaining consumer loyalty now requires something from retailers beyond simply having product available. The trick for traditional channels may be reminding shoppers that there is a difference between retail options. Shelf assortment and arrangement, availability of a healthcare professional and reliable, trusted supply chain logistics are important differentiators.
I have observed Olympic-scale efforts by retailers who have recognized that providing an enriched shopping experience and a point of difference can positively affect their business operation. I’d love to hear your thoughts on who you think is putting forth a gold-winning performance. What are they doing that will foster continued customer loyalty?
Dave Wendland is VP and co-owner of Hamacher Resource Group, a retail healthcare consultancy located near Milwaukee, Wis. He directs business development, product innovation and marketing communications activities for the company and has been instrumental in positioning HRG among the industry’s foremost thought leaders. You may contact him at (414) 431-5301 or learn more at Hamacher.com.