Getting Value from Digital Technologies

Companies need digital technologies in an omni-channel buying world where online and in-person interactions are complements, not either/or substitutes. Multi-channel hybrid sales solutions are required, but what are the key requirements for using the available technology for competitive advantage, rather than another cost of doing business? Based on work with companies, we see lessons from firms dealing with a humble but pervasive retail outlet: convenience stores and small eating/drinking venues. The U.S. has one such outlet for every 2,200 people, and 8 of 10 Americans visit weekly one or more of 150,000 convenience stores. The channel is even more important in other countries. In Mexico there are 800,000 outlets (1 for every 160 people), and in Europe the ratios are similar (e.g., Italy has about 350,000 small restaurants, bars, and hotels). This is a fragmented and high cost-to-serve channel, but for CPG (consumer packaged goods) companies these outlets generate up to 50% of their revenue in many countries. Sales productivity is key here, and this article discusses three required capabilities and examples of each: understanding the role of channel partners in the consumer buying journey and your sales approach; using timely data for relevant insights and overcoming common barriers to getting that data; and managing ecosystem changes and trade-offs.