Don't Bring a Knife To A Gunfight
Bricks and mortar retailers are in a fight for their lives. The consumer path-to-purchase has migrated online, with Internet retailers benefiting to the detriment of traditional retailers who struggle to match the price points of their online competitors while their physical stores drag down margins. It makes you wonder why so many legacy retailers show up to this fight for the consumer without the right technologies.
An executive of a leading, forward-thinking retailer emailed me recently to ask about a disturbing observation. After the executive visited a page on his company's website describing products for sale, he then went to Amazon and saw an in-house Amazon ad promoting the same product he just looked at on his own site. Of course, the price was much lower on Amazon.
Needless to say, the executive wasn't pleased. In this fight for consumers, getting price-shopped on Amazon is hardly a rare occurrence, but this was something else altogether. Amazon is effectively greeting customers at the door and putting an explicit offer in front of the customer for the exact product they were looking at somewhere else and saying, "You should buy this at Amazon. Here's a better price."