The world is ever moving at a fast pace, and one area in particular that is effecting business is the technology sector. Business leaders need to be aware of emerging trends in order to continue to stay relevant. Examples of how the US and Canada Postal service have been impacted by tech are:
- The internet allows for online billing which has replaced the need for paper invoicing.
- Bank accounts can be set up for automatic bill payments and for access to accounts, further reducing the need for mail.
- Letters and communications of a personal nature can now be sent through email or through social media channels.
- With the reduction in personal mail, home delivery services are being eliminated and replaced with neighborhood mailboxes or PO boxes for efficiencies.
- Online shopping has increased and as a result the postal services have had to adapt and allow for larger mail parcels.
- Sorting of mail has been impacted by technology as new robotics are introduced to reduce the need of employee sorting.
- With more online products being sent via the mail, theft has become a larger issue as well as security concerns for illegal substances.
- Technology will continue to play a role in how mail and parcels are delivered. For example there is emerging drone technology where parcels can be delivered to the doorstep.
- Door to door advertising has increased while T.V. and radio ads have decreased. With the advent of on demand TV, the ability to skip through commercials and with the ability to stream music, demands for radio and T.V ads have decreased. Accessing customers through mail, billboards and the internet however has substantially increased. This presents perhaps a new opportunity for the postal service.
In the case of companies like Walmart, they too have been effected by the tech industry:
- Online sales are taking over the retail sector reducing the need for bricks and mortar store fronts. On the other hand because of online sales, distribution centers are growing.
- With an increase in online sales, transportation of goods have changed from large deliveries to storefronts to individual mailing of parcels and distribution networks.
- Competition has increased as customers are now able to look online and price compare.
- Automation of check outs has reduced the need for clerks at stores. This automation however has resulted also in an increase in security technology to monitor for theft.
- How products are marketed in stores have also changed. Some stores are resorting to having picture advertisements or one display of a product, particularly large items which then refer the customer to purchase online.
- Additional services have become important at the storefront in order to attract customers. For example, including other retail services such as automobile insurance, beauty, restaurants, etc. at the store front, it is more likely to encourage a trip to the store.
- New employment opportunities have arisen such as price comparison shoppers so that storefronts can compete with online shopping.
- It is widely known that Walmart has been out performed by new companies such as Amazon whom saw the trend in online shopping, long before Walmart did.
- Walmart has further had to adapt to the changing trend in online sales by increasing the store footprint for food services as opposed to other goods.
In summary, both Walmart and the Postal Services have done their best to adapt to emerging trends, however in some cases they are lagging behind. Fortunately though, because these organizations are large in size, with plenty of investor backing, it is likely they will succeed and adapt. Perhaps the only real critique I’ve seen that I would do differently is self-checkout. It seems that this technology has not been carefully thought out and likely was introduced due to pressure from customers. Self-checkout is getting better but still has many wrinkles to sort out. Sometimes customers will think something is a good idea and put pressure on businesses to do something about it, without thinking it through fully. All you have to do is stand and watch how many times a customer gets stuck at a Walmart because they can’t look up and find the right fruit or vegetable or because something isn’t scanning right. On the contrary I liken the Costco approach where they will listen to the customer but in the end Costco knows what is best for their customer. Costco’s approach to self-checkout is that technology is not where it needs to be, it would also open the door up to customers using other customer membership cards, which is something store clerks are trained to look out for. Am I not the only one that see that self-checkouts have a ways to go before they truly make the shopping experience easier? Or will self-checkouts become redundant in retail as we head toward more online sales?
