Understanding and Organizing Around … Anywhere Commerce

There are a range of buzzwords in the industry today that can be lumped together: anywhere commerce, everywhere commerce, seamless commerce, never not shopping, shopper media marketing, the always-on shopper, the always-connected shopper and even the omnichannel shopper.The terms speak to the same idea that whether in-store, on the train via mobile phone or at home on a tablet or computer, shoppers have the power to engage (and even transact) with a retailer or consumer product company whenever they’re willing.What’s further complicating this concept is that, with a shopper who is always on, traditional brick-and-mortar retailers are now being pushed into a world of new media and advertising platforms as well as content publishing.For manufacturers, the challenge is how to organize around the always-on shopper and how to work with those retailers who are now publishers. And that’s not to mention the new model of retailers, including everyone from Google and Amazon.com to Instacart and Postmates.“The problem a lot of brands have is they don’t have anyone managing these edge cases or the gray area between shopper and consumer and between retailer and media,” says Keith Anderson of Profitero.Anderson and six other industry thought leaders recently discussed the always-on shopper and anywhere commerce with Shopper Marketing. Here is an edited virtual roundtable discussion:Explain to me the phrase, “retailers as publishers.”Russell Ferrara: Retailers are branded ecosystems. Players like Amazon and Walmart are no longer just retail outlets. They have devoted audiences that our brands value, and just as we are seeking to tell stories on our brands, retailers are delivering stories to their guests ranging from video ads and searches to – in the case of Amazon – delivering custom-produced movies and television series.Anderson: Retailers are publishing recipes and cooking guides or home decor guides. Whatever the questions that someone might have when they’re engaging with a category that retailer sells, the retailers are increasingly publishing content in all kinds of formats: video content, short and long form text – you name it. In many cases, there are opportunities for brands to engage in it.Peter Hsia: No retailer has time to develop content on all the products they carry. They will always need the CPGs to provide content that the retailer can use in their own digital vehicles. It can start as simple as providing the library of digital images of products for online shopping, but it is a great opportunity to figure out CPG brand stories that can fit into the strategic messaging themes of the retailer.Ferrara: Retailers are not just selling shelf space, they are selling eyeballs, and we have to find ways to engage those audiences in authentic, relevant ways.What is “anywhere commerce” and what does your organization call it?Marco Trezzi: Shoppers do not see mobile, online and in-store as separate sources. Instead, they see one brand and expect a consistent message across all touchpoints. Therefore, anywhere commerce means that brands must be able to seamlessly sell products and services wherever their customers are.Ferrara: We think of delivering a consistent, seamless experience no matter where, when or how an individual interacts or shops as “omnichannel.”Sonia Parekh: We use the term “seamless commerce.” In the relationship between brands, retailers and consumers, consumers hold the power. We believe that in order to win in the current environment, brands must embrace seamless commerce and meet consumers on their terms.How is “anywhere commerce” different from “shopper media marketing,” if at all?Trezzi: Shopper media does not require a commercial transaction and is only supported in a digital environment. For example, when consumers are shopping and use a mobile phone to research additional information – where it was produced and how to use it – this is shopper media. This research usually happens in a traditional retail environment. Anywhere commerce happens when consumers research, generate a transaction and finalize the purchase online.Scott Gamble: We define shopper media as understanding how consumers behave as shoppers and targeting them with a specific message to drive a desired behavior and build brands in a retail channel environment. Anywhere commerce is similar in its targeted approach but is more holistic in terms of reaching across all shopper and consumer channels to deliver an experience that matches the consumer’s intent at each touchpoint.Alicia Smestad: Yes, there is a difference, and sometimes, no, there is not. Business objectives always must be at the core. How these objectives line up against the opportunities and their stakeholders define when it might be shopper media versus when it may be anywhere commerce. The key is to break down the siloed, planning walls between sales and marketing to build fully aligned and integrated views of how to best meet the objectives.Where should “anywhere commerce” fit within a CPG organization?Gamble: Anywhere commerce does not fit well in a traditionally defined, functionally siloed organization – one where the key groups such as sales, marketing and supply chain collaborate but are predominantly driven by their own goals and metrics. Processes, roles, data, systems, decision-making and incentives need to be aligned around meeting the consumer’s needs, first and foremost.Smestad: Nearly every cross-functional group needs to have a seat at the table between marketing, sales, supply chain, insights, IT, etc. Building accountability and empowerment along with cross-functional governance and communication processes is critical. Every company has its own culture – this accountability and cross-function needs to be built within that culture to succeed. I wish it was as easy as “plug and play,” but any major change takes effort to be successful.Ferrara: We have reorganized our marketing activation team to drive integration and collaboration around the following capabilities: shopper marketing, media, promotions and content. We have infused our shopper marketing team with talent from ZenithOptimedia, Delta Airlines and our own brand teams to ensure we can deliver the best experience for consumers, our retailer partners and our brands.Anderson: Historically, e-commerce as a function has reported to sales in about three-quarters of CPG companies. It is starting to report to marketing in the more progressive companies. Marketing has a more complete view of the overall media and marketing mix and is not looking narrowly within individual retailers and is not drawing a big boundary around who’s a consumer and who’s a shopper.How are retailers and CPGs responding to this new challenge so far?Anderson: It’s been a hot potato organizationally, and if you take something like Google Shopping or Instacart, one internal group will say, “Instacart isn’t a retailer, they’re a platform, and so because we aren’t selling products directly to them, it’s not our job.” And marketing will say, “Yeah, but they’re not a display media network, it doesn’t fit into any of the existing buckets.” What happens is nobody does anything.Trezzi: Brick-and-mortar retailers are beginning to adapt and meet the changing buying behavior or shoppers by embracing digital agility within the store and outside. Some physical stores are using social media, loyalty cards, mobile apps and beacon technology to reach shoppers at every point of their journey.Hsia: To us, the always-on customer is just one more element to address in the marketing mix. The main challenge we have seen is that the typical profile of the always-on customer is younger, with much less usage of traditional marketing vehicles. They don’t watch traditional TV or read traditional magazines and newspapers. Yet, a mobile-only approach isn’t necessarily the best way to communicate for some stages of the purchasing journey.Trezzi: Just because brands can reach consumers wherever they are doesn’t mean they should. Instead, retailers should take a strategic and contextual approach. Rather than contacting a shopper on all channels, focus on the channel they prefer, when it makes the most sense and when it adds value to the customer.Gamble: The challenge is how do we maintain or improve margins while we invest in learning and developing these new business models. For companies to win, they will need to become more effective at quickly analyzing large amounts of data from multiple sources, developing actionable insights, taking action, and measuring and learning from results.Smestad: Shoppers’ needs outpace execution challenges for the retailers, and there are 100 different ways this shopping experience is developing. It’s funny, having a clean store, good service and selection have always come after price and location as the key drivers of retailer selection. Imagine how your click and collect experience – from interface, through item fulfillment, to delivery or pick-up – will impact retailer selection now. The rules have changed, and those who figure out the best end-to-end service will win.

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