DYNAMIC

GlobalShop, North America’s largest showcase for anything that happens in stores, happened two weeks ago. Attendance registrations were up 11% over 2011, a promising sign of renewal and growth in our industry.

I have attended these events for years. My, how times have changed! The events have become better-attended, more educational and more international. Ours is a vital, dynamic industry.

Why is our industry so dynamic? First, people buy in stores. Yes, yes, more and more online buying occurs but still 92%+ of every American consumer dollar in spent in a store, not online or through the mail. Stores matter to both buyers and sellers. It remains the only place where the shopper, product and mindset to buy coexist simultaneously. Instant gratification!

Second, while we serve the largest consumer packaged goods companies in the world, ours is a deeply entrepreneurial industry. Companies large and small compete on the basis of creativity, responsiveness, execution and value. Competition drives dynamism.

Third, buying and selling is rapidly evolving. Technology-enabled shoppers surf for information, seek & share recommendations and comparison shop. Online and in-store are converging. Stores deploy new technology to communicate and employ data-mining technology to predict and spur purchases. In-store dynamically unites consumers with the products they need and want.

The oil and gas industry is having a dynamic impact on our eastern Ohio region but in-store dynamism spans the globe. Ours remains a great industry with great opportunities.

PSST, YOU ON AISLE 5!

Some 30+ years ago, retailer loyalty cards came into existence and with them the dream that, one day, marketers could know your habits, what you buy and thereby figure out how to sell you more. That dream has quietly become reality. Powerful computing algorithms and clever marketers today know you, your purchase habits and preferences, and are working overtime to attract your attention.

Charles Duhigg has written a new book about it all. Articles in the Wall Street Journal, New York Times and a host of magazines trumpet The Power of Habit: Why We Do What We Do in Life and Business. It’s fascinating stuff – and a little scary.

No one likes to feel manipulated but everyone wants to be understood. Like Norm Peterson in the long-running sitcom Cheers, you want people to know you, even greet you by name, when you enter the store. You want the store to have what you want when you want it. Getting to know us through our purchases histories helps stores have the things we want, at prices we’re willing to pay, when we want them. It’s win-win, right?

One counter argument is that we are inherently private people. We don’t want just anybody to know us. We want to decide who knows our likes, dislikes, preferences and purchases. And that’s our right, right? Sure. But we give away some of that right when we respond to incentives offered by marketers and retailers to share information. When we do, we win discounts and lose a little privacy. By the numbers, it appears to be a trade many willingly make.

DON'T BELIEVE IT

So, 2012 will be the Year of Customer Satisfaction. According to a recent survey, retailers are determined to invest in the latest "widgets, gadgets and advanced links" to woo and soothe their customers. Read some highlights here.

I don't believe it. Neither should you.

Technology investments are vital. Online and m-commerce initiatives are important. But making the store environment cleaner, less cluttered, easier to navigate, properly staffed, comfortable and filled with the right products attractively displayed should be THE priority if shoppers are indeed the #1 priority. Who's watching the store?

Executing at the in-store level - where an average of 70% of actual purchase decisions are made - needs more attention. For most retailers, however, it's a zero-sum game: money and attention spent here won't be spent there. Diverting attention to the detriment of the store environment hurts the customer shopping experience. And that's bad business for any retailer.