Re-tales: An Interview with Michelle Grant
Posted by Amanda McLaughlin on Aug 4, 2020
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Re-tales is an interview series featuring experts in retail, commerce, and technology. In this post, we speak with Michelle Grant, Senior Manager, Strategy & Insights, Retail and Consumer Goods at Salesforce. Michelle is a seasoned researcher and a top voice on retail, studying digital disruption to help organizations build the future of their business. She talks about the impact of COVID-19 on the industry, as well as the launch of a new program that will define what makes a great retail leader.
I’ve been a lifelong analyst. I started out at the global market research firm Euromonitor International where I studied trends in a lot of different industries. In 2014, there was an opportunity to lead global research for the retail industry. At the time I was studying travel and tourism, which had gone through its own digital disruption. The opportunity to take on an even more complex industry on a global basis was really appealing to me. Then in March of 2020, I transitioned to Salesforce to again track trends for the retail and consumer goods industry but this time with more of a lens on technology and its impact on those industries.
The essential technologies that retailers need to implement now are around the last mile. We know that store capacity is constrained as far as how many people are allowed in the store. We also know that the traditional last mile providers like UPS and FedEx have had their limitations given the uptick in ecommerce. Deliveries are more expensive. How retailers are going to get their products from digital orders to consumers is critical, especially for the upcoming holiday season. We’re likely to see record high ecommerce sales during that time. It’ll be critical for retailers to ensure that their websites can handle the additional volume, but they’ll also need to make sure that the last mile capabilities can handle the surge in demand. That’s where I would be placing my investment right now for holiday and probably the next few years.
The main area of focus is going to be checkout. Before COVID, there were many experimental technologies and pilots in place related to checkout — think of the “just walk out” technology at Amazon Go stores. The checkout experience has long been a poor experience for customers, from waiting in line to tracking down a cashier. This is a problem retailers were working on before COVID but it is even more important now when people want to spend less time in the store and touch fewer surfaces. You need to be able to get people through the line as quickly as possible with minimal interactions.
The other thing we’ve seen dramatically increase due to the pandemic is contactless pickup at the store, whether that’s curbside pickup or in-store pickup. According to the Salesforce’s Shopping Index, sites advertising buy online, pick up in-store or curbside pickup options saw digital revenues grow by 127% year over year during the second quarter in 2020.
While the solutions that have been rolled out during this time are great, the spaces they’re being used at weren’t built for them. Many retail buildings are 20 to 30 years old. They don’t have the entry and exit layouts that are conducive to a good experience when it comes to fulfilling from the store. So, in addition to checkout, I think the front end of the store will be reimagined in order to drive efficiencies around these types of fulfillment.
“We believe the people component of digital transformation is key. It’s not just about the technology.”
There’s been a massive digital disruption in retail that’s only been accelerated by COVID-19. We believe the people component of digital transformation is key. It’s not just about the technology. We want to provide a blueprint for retail leaders to succeed with their digital transformations. As for why now, the retail community is really coming together to navigate the uncertainty around the pandemic. It’s a critical time to help leaders who are seeking answers about digital transformation and how to implement it. Becoming Retail is a platform to communicate, share, and learn so that we can all navigate to a better, more successful future.
The retail industry is massive and complex. In that, I think we lose sight of the people that make it happen. So, when we say we want to give a platform to the people, that is really the case. We want to hear from the leaders themselves. We want to hear their stories and learn about their careers. It’s about the person, not the company. We can all read about the company’s initiatives in the press or in their investor relations releases. What we really want to know is the behind the scenes and what it takes to be a great retail leader.
Our definition of digital transformation is a radical rethinking of how an organization uses technology, people, and process to fundamentally change business performance. It requires the infusion of digital into different facets of the retail business — from merchandising to marketing to operations. Now, that’s our definition and during the course of our research we will be asking others what their definition is because it is a broad topic.
Personally, I think who holds the key to success is senior leadership. They set the vision and the course for the whole organization but it’s important for everyone to buy in and execute against that vision.
My prediction is that our thesis is right; it is all about the people. I think we will learn how to inspire, empower, and organize people. It’s a huge organizational challenge to do things differently. We will learn some best practices on how to engage people in your own organization and also the wider community as it undergoes change.
Personally, I’m eager to learn through Becoming Retail how leaders come up with their vision for the future. The ability to create a vision and then get organizational buy-in from thousands of people is a unique and rare skill set.
Also, I’d like to note the reason why we’ve chosen a book as the outcome of the program is because we want to leave something behind for the next generation of retail leaders. We want people to learn the timeless aspects of leadership. The hope is that the learnings will hold true and in 10 years, you can dust off the book and refer back to it.
“It’s not just about studying your own data, or sales figures, or the industry even. It’s about understanding human psychology.”
This is my vision for the future of retail on a long-time horizon. I like to start by looking at the two types of shopping behaviors. One is related to buying essential items such as groceries, which can feel like a laborious task but you have to do it. The other is shopping for things that excite you, like new clothes. I always keep these two behaviors in mind when thinking about the future because how you respond to them is different.
In the buying category, technology and predictive analytics will make it so a retailer knows what we want and it’ll appear — either in the mail, by drone, or by robot. I’m not just speculating here. There are some really interesting patents out there by Amazon and Walmart to make transactional buying frictionless.
As for shopping for pleasure, normally I would have said stores would become experience-based but that is no longer possible because of the pandemic. The longer the pandemic goes on, the less stores will be viewed as a safe and enjoyable place to be. This doesn’t mean the behavior of shopping for pleasure goes away. It migrates online. But there are some areas of retail like beauty where shopping on a website is still difficult. These passion categories don’t translate digitally yet. So, this is where a lot of technological innovation will happen to make it a more enjoyable shopping experience.
What I love about being an analyst is following where the consumer is going. It’s not just about studying your own data, or sales figures, or the industry even. It’s about understanding human psychology. We can see the signals today about how people are behaving in the digital and physical worlds across industries. How do you maximize what they’re doing and surprise and delight them with innovation?
I cannot live without Twitter. It’s the first thing I check in the morning to see what the industry is talking about. I’ve learned so much from Twitter and have met so many great people through it.
To cultivate a network. And I use the word “cultivate” with intention. Again, it’s all about people. You need to make sure that you’re contributing to your network and asking them for help. People are generous with their time and that has had an impact on both my professional and personal development.
My ideal weekend pre-COVID involved beautiful weather in Chicago. I would go to the lakefront for either a walk, picnic, or to read a book. It was all about enjoying the lake and the wonderful skyline with friends. Post-COVID, it’s a similar experience except the lake is closed so you have to keep walking on the trails. A lot more exercise!
Editor’s Note: The Becoming Retail program’s purpose is to tell the stories of people in the retail industry. If you’re interested in being showcased or highlighted, reach out to Michelle Grant via email michellegrant@salesforce.com or on Twitter @MGTalksRetail.
