Digital is doing a lot of good, but one of its most important contributions might be the one it is least credited for – its ability to completely undress the gap between what companies think they need to know about their customers and what they actually know.
What I often see as a result are companies entering a digital world with old strategies, that worked when industries where solid, pre-programmed structures and everyone where doing the same mistakes, but now when competition can come from anywhere don’t hold up.
The question to these companies become: are you fighting a digital problem or a customer problem?
In the article below changes in customer demand in the retail / grocery industry are being discussed
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. Digital investments seems hard to pay of, but ASDA seemingly has an ace up their sleeve and it has got nothing to do with digital and quite a lot to do with some sensible customer insight.
Three quotes from the Guardian article: Nervous supermarkets lefts with miles of aisles they don’t want ( http://bit.ly/1nM7UJP )
“The reality is that the model of retailing for the last 60 years is no longer fit for the changing needs of consumers,” says one senior industry source
. “The question is: what are you doing to adapt your space to the new economics?”
“Ibbotson said changing shopping habits meant it had to “reassess” its strategy
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. “I have been in the industry for 30 years and in the past three years it has changed more [than the previous 27 years] and we expect for it to change more quickly over the next three years than the last [three],” said Ibbotson.”
“Asda is more exposed than most to this trend because the vast majority of its sales come through superstores, but what has insulated it is [fashion label] George, which is a destination brand,” he says. “Tesco has got a problem with its big box stores because it doesn’t have a George.”