Instagram finally announced their long rumored in-app shopping experience last week. While there were talks at one point of a standalone app for Instagram Shopping (a true QVC for millennials, if you will), it looks like we’ll be able to keep all of our ‘gramming in a single app instead.
The retail industry is in a state of flux. Legacy companies are still trying to navigate the move to ecommerce, and the new upstarts are learning why a physical presence is useful. Out of that turmoil, the retail landscape has come to be dominated by two firms: Walmart and Amazon.
Walmart has done a fantastic job of rebooting their ecommerce strategy in recent years. Marc Lore, who has run the ecommerce business unit since Walmart bought his company Jet.com for $3 billion in 2016, has taken what Walmart Labs was supposed to do and super-charged it with acquisitions and a laser-focused strategy.
Walmart has built out a brand strategy through the acquisition of companies like Bonobos, ModCloth, and Moosejaw. This lets them offer unique products that can’t be directly price shopped across retailers (Bonobos) while also leaning in to premium brands (through Moosejaw and ModCloth) for the customers who don’t consider themselves “Walmart shoppers.”
With that work underway and performing well, Walmart is focusing on additional customer experience points. Recode writes of two such projects, focused on a personal shopper experience for “high net worth urban consumers” as well as a rethinking of the in-store shopping experience. We’ll leave the latter alone for now because “fixing in-store shopping” could be a book’s worth of thoughts.
The promise of digital centers around just how measurable everything is.
A marketer can go into an analytics platform and instantly see impressions, clicks, and spend by different audiences, times, and creative treatments. With on-site tracking, they can measure performance down to the individual marketing channel. The operations team is able to see how order volume changes during sales and by time of day. Finance departments can tie back every cent of revenue and cost directly to its source.
In theory, this data makes it easier to run an effective business. The marketing team can optimize around the best performing tactics, operations can forecast and plan for labor spikes, and finance has a clear view over how all of this impacts the company’s profitability. More conversions are good, less spend is good, on-time orders are good, and this is where most of our revenue comes from.
Digital platforms have become more sophisticated. The amount of data they collect and can report on has increased exponentially. This has been celebrated by many people in the business world. We agree — having that data available to a business is great. But companies should be diligent in how they consume data.