Monday, June 25, 2012

The Sound of Dinosaurs - Part 2


The point of yesterday’s post was not to bash retail. There are far many more issues with retail than I can hope to cover in a few blog posts, and I don’t really care about retail. It’s just such a good case study for identifying future trends. The real point I was trying to make is that the knowledge and skills of sales people are no longer of much value to the consumer, and certainly not worth the retail premium. Other factors such as the ability to “try before you buy” are always going to be a factor for some types of retail, but the idea that the salesperson had some sort of privileged insight into the merchandise is long gone.

In fact this particular aspect of retail has changed so much that people don’t even seem to remember how important sales staff skills used to be to the success of the retailer. We still occasionally see retailers trying to revive this idea, but it usually falls on deaf ears. It has certainly been a failure for Dick Smith and the “Talk to the Techxperts” slogan. You could argue that the Apple Store has revived this approach, but I think the success of the Apple store has more to do with the idea that it is a cool place to hang out. The Apple Store sales staff certainly don’t seem to sell very much.

A bit of personal history for context. One of my first roles in IT was working in a computer shop, fixing PCs, writing autoexec .bat and config.sys files, and selling software. Back in the pre internet era the primary ways a customer could find out about software and systems was to either read a short review in a magazine that was a couple of months out of date or to talk to retail sales staff.

A good sales person was expected to know the product, and be able to demonstrate it. In fact the best sales staff owned and used the products they sold. In my job this was a case of owning a decent computer (a big investment on my pathetic retail wage), buying the software and using it extensively in my personal time. Fortunately I loved what I did, so it was no great chore. I was part of the community, an advocate, a fan, a trusted resource and that is what made a good sales person.

Now the retailer holds no monopoly on product knowledge. A consumer can go to MetaCritic or Amazon to find hundreds of passionate users providing a large range of opinions. They can go to YouTube to watch video demonstrations, training, hints and tips, even advice on how to modify, improve or integrate with other products. And all for free, without any ulterior motives except passion, interest and a willingness to share. How can even the most dedicated sales person compete with the wisdom of crowds?

I know many people will argue that consumers want to talk with real people, and there is an element of human interaction in the sales process that cannot be replicated on line.  But I would argue this is just habitual. People who need constant reassurance during the sales process can seek out forums of like-minded souls, and maybe even chat with the original designers and inventors. How can the value of a single stranger’s opinion compete with that, just because you happen to be in the same physical location? On line communities are real, the interaction is real, the friendships are real, and they don’t disappear once the cash register has rung.

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