Executive Planning For 2014: Ten Major Issues

Executive Planning For 2014
Ten Major Issues
Kevin Hillstrom
President, MineThatData

Kevin Hillstrom, President, MineThatData
http://blog.minethatdata.com
kevinh@minethatdata.com

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The Ten Issues That Will Impact 2014

Here is a link to the blog post that describes the ten major
issues for 2014, in detail.
Click here to read more.
http://blog.minethatdata.com/2013/12/dear-catalog-ceoswhat-is-happening-ten.html


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Issue #1: E-Commerce Being Cut-Off By Mobile
Most folks believe that e-commerce and mobile are the
same thing. They are not. E-commerce belongs to Jennifer’s
generation (age 36-51). Mobile belongs to Jasmine’s
generation (age 20-35).
What strategy will your Chief Marketing Officer, Creative
Director, Customer Service Director, and Chief
Merchandising Officer implement to deal with mobile
cannibalizing page views and mindshare from e-commerce?

Discuss.

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Issue #2: E-Commerce Impacted By Amazon
In the past decade, e-commerce grew by cannibalizing
catalog marketing. Those days are over. Increasingly, ecommerce growth will stall or slow because of challenges
from Amazon, who now owns 25%+ of e-commerce, and
from mega-retail brands with expanding e-commerce
platforms.
Merchandising Officer implement to protect business that is
increasingly going to shift to Amazon over time?
Discuss.


4

Issue #3: Branded Merch Impacted By Amazon
Businesses that sell the same merchandise at the same price
as Amazon have inherent challenges. Why buy a sound bar
from a store when you can have Amazon deliver it to your
home, cheaper and faster?
Merchandising Officer implement to counter branded
merchandise that Amazon sells, or similar product that
Amazon could knock off and sell cheaper?
Discuss.

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Issue #4: Discounts / Promotions
Black Friday – Cyber Monday 2013 included discounting at
previously unseen levels. JCP, for instance, discounted by up
to 70% on Black Friday. Retailers will likely discount heavily
in the future, in an effort to gain market share to compete
against e-commerce, mobile (and ultimately, Amazon).

Merchandising Officer implement to get customers to pay
full price for merchandise in the future?
Discuss.

6

Issue #5: Demographics
Going forward, traditional catalogs belong to Judy (age 52 –
67), e-commerce belongs to Jennifer (age 36 - 51), and
mobile belongs to Jasmine (age 20 – 35). We’re afraid to talk
about demographics, because it forces us to acknowledge
the limitations of our existing customer base.

Merchandising Officer implement to either change the
demographic profile of your business, or maximize the
current profile? What would it cost to change the profile?
Discuss.


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Issue #6: Customer Service
The urban customer will get free same day and free next day
shipping from both retailers and from Amazon. The rural
customer will get free, ten day shipping from catalogers.
There is a growing dichotomy between urban and rural
shoppers. This will impact future shopping choices.

Merchandising Officer implement to either compete with
retailers / Amazon in urban areas, or to take market share
from catalogers with slow delivery options?
Discuss.


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Issue #7: Vendors
In catalog marketing, the most important vendor (USPS)
chose Amazon as a preferred partner (Sunday Delivery),
while strongly considering postage hikes that hurt long-time
catalogers. And Big Data vendors will exploit clients for their
own personal gain, to protect their future (co-ops).

Merchandising Officer implement to reward vendors who
are client-centric? How will manipulative vendors be
managed?
Discuss.


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Issue #8: Mobile Selling
Only so much information can be shared on a five inch
screen. While e-commerce was about selling everything
under the sun, mobile is going to be about selling only what
the customer wants at a specific moment in time. Hard
work, don’t you think?

Merchandising Officer implement to segment and market to
customers who have specific interests at specific points in
time that can only be solved with mobile solutions?
Discuss.


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Issue #9: Distractions
Most of my clients have had the same 40% repurchase rate
and 2 purchases per year for the past two decades,
regardless of an explosion in technological sophistication,
strongly suggesting that merchandise, and not technology,
drive customer loyalty.

Merchandising Officer implement to avoid distractions (Big
Data, Social Media, Optimization)?
Discuss.

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Issue #10: Merchandise
Our lust for technological solutions blinds us to the real
reason customers buy from us – merchandise. Why can
Apple sell an iPad on Black Friday at full price, but JCP must
offer 70% off to attract store traffic?
Merchandising Officer implement to increase new items,
increase productivity of existing items, and develop a
merchandise plan that combats Amazon, retailers, ecommerce only brands, and catalogers?
Discuss.


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Your 2014 Strategy
Ask each department head to craft answers to each of the
ten major issues in this outline. Don’t worry if the
department head is not accountable for the solution to an
issue, you’re looking for insights from your most valuable
employees.

Given all answers, set goals and objectives for 2014 that
provide a solution to the ten major issues described in this
outline.
2014 is a major inflection point in the evolution of the
customer. Have a strategy to combat our ten major issues.

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Questions?

Kevin Hillstrom
President, MineThatData
206-853-8278


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Executive Planning For 2014: Ten Major Issues

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Executive Planning For 2014: Ten Major Issues