This is the second post on social media versus messaging and its effects on suppliers into the supermarkets and business relationships with customers in general. The first one can be read HERE
As applications like Facebook Messenger or WeChat or Slack ( Slack Improves Slash Commands So You Can Call A Lyft And More From Inside Slack) move to have more and more activities and transactions inside their apps it is changing the nature of how people use their mobile devices and where they spend their time. From the applications point of view it is a very smart move because the more time that people spend inside the apps the more they can serve ads in their system . In addition if they become the gateway for all sorts of suppliers to the consumer and tie that contact with identification and other social data they can take a cut of all transactions through their application. A dual income business model.
The example that has been used to describe the Facebook Messenger changes is that of booking an airline flight which then creates a permanent one on one connection between the airline and then purchaser through which they can send boarding passes and notifications. Done in the right way and with subtle advertising approaches this link minimises friction for the consumer and provides information for the seller. An ideal win win.
If I move back to the subject of suppliers into the supermarkets the conversation has to be different. Either the product has to be different or the way it is delivered has to change in a way that reduces friction or reduces costs, or preferably both
Take me for example. As part of my preparation for the summer triathlon season I have been mostly pursuing a slow carbohydrate nutrition plan which involves replacing carbohydrates in bread,pasta,rice,potatoes, etc with complex carbohydrates and proteins. It also means much more salads and vegetables. As a result I have been eating a lot more canned fish and canned beans. I am not that particular when it comes to the brands of those cans that I buy and generally do a weekly stock up and buy what is on special that week.
Now if one or more of those suppliers is able to communicate with me inside my messaging app and give me a quick option on a weekly delivery or a tap on quantity option then they have a relationship with me that bypasses the supermarket and may tie me to their brand
Having solved that problem and reduced the friction they then have a delivery problem. I have long been a believer that Uber is a long term data play rather than an alternative people transport company and that they will use the data they are gathering for all sorts of uses including package delivery. In the long term that will be automated between driverless cars but in the shorter term they are still options. Once Uber has enough data they can offer package pick up and delivery options to drivers based on their known patterns of movements.
If a driver is heading home anyway and can pick up 5 packages and deliver them near their home for an extra income that will be an attractive proposition to them and a low cost delivery system. The reason I put the Post Office in the title of this post is that the Australian Post Office (along with others all around the world) is struggling with its business model and profitability in an era of reduced letter postage and increased parcel delivery competition. Its major strategic assets are its locations and its special place in the hearts of the community. A partnership with Uber using the post offices as a pick up and drop off location would provide an extra income stream and also drive foot traffic into their locations. Customers could pick up their packages or the messaging app could sense that they were home via GPS and ask if they want their package delivered now.
The key question in all of this is whether the logistics costs of a personalised pick and pack system and delivery system can reduce costs to the end consumer compared to a direct delivery service into distribution centres , taking into account the margins of the supermarkets and the other costs they impose on suppliers.
The secondary question is one of a cultural change. I know from personal experience in the food business that a big cultural change is required to move from a make it and ship it out culture to a customer focused culture.
The changes to our digital tools throughout the supply chain make these questions worth asking and exploring.