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The cost of online showrooming on in-store retailers

(BUSINESS NEWS) Bloomingdale’s workers want to earn commissions on showrooming – will other retail workers push for the same?

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Online shopping, in-store outrage

The advent and explosion of online shopping from singular novelty to daily routine has had multiple impact points on our daily lives.

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Ranging from new levels of price comparison before buying to the shuttering of many brick and mortar stores, online shopping has made quite the impact.

Online drama

However, the impact of online shopping is being felt in yet another place: the commission checks of employees in those brick and mortar stores who often help customers make decisions about purchases, only to see those same customers leave the store and buy the item online.

Employees of Bloomingdale’s flagship New York store have asked their union for help, as they feel that they should get commission on items that they steer customers towards, even if they’re purchased later.

As reported by Laura Northrup in The Consumerist, the Retail, Wholesale, and Department Store Union is unclear as to how the mechanics of how compensating these employees would work, but very clear that something needs to be done.

The act of looking at an item in person and then later buying it online is known in the trade as “showrooming.”

While union leaders know that there’s nothing that they can do for their members about customers who buy a product from a competitor’s website, they feel that Macy’s (who owns Bloomingdale’s) can create a way to track a purchase made on their website to the person who helped them in-store. Speaking to CNN, a union spokesman said, “I am sure the company can work on a tracking system. There’s technology for everything.”

Webrooming, too

And if “showrooming” wasn’t enough of a problem to deal with for the commission-based employees of Bloomingdale’s, there’s another issue that they face that occupies even more of their time.

Customers who “webroom.”

“Webrooming” is the opposite of “showrooming.” Customers make their purchases online and then pick them up at the store, or make them without assistance from employees, thus causing them not to earn commissions on the sale.

Bloomingdale’s employees say that “webrooming” actually takes more of their time, but doesn’t earn them anymore money.

Taryn Luna, reporting in The Boston Globe, identified that “webrooming” is more prevalent than perhaps thought. Surveys from Deloitte, a consulting firm, found that nearly 70 percent of all shoppers “webroom” before making a purchase, compared with less than 50 percent who engaged in “showrooming” before making a purchase. Amazon, somewhat unsurprisingly, is the top web space for people to “showroom,” but also is the top spot for research before buying in-store, as well.

Customers “webroom” for a variety of reasons: customer reviews, in-stock status, price matching, and tangibility of an item before making the final purchase, among others.

The development of more seamless experiences for customers between the online, mobile, and in-store experience also have affected customer behaviors, and many retailers are attempting to keep the attention of their potential customers, wherever those customers may be, to make the sale.
Which sometimes causes unintended headaches for the people making the sale to those customers, such as the case with Bloomingdale’s staff and their loss of commission based on these attempts.

They’re trying

“We are trying to reach a fair and reasonable agreement that represents our associates’ commitment to our customers,” a spokeswoman for the department store explained to CNN. “But we have to address the competitive business realities we face. And we have to be flexible about the way we take care of our customers.”

#Bloomingdale’s

Roger is a Staff Writer at The American Genius and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

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Business News

Peloton is back-pedaling: Reports of price increases, layoffs, and cost cuts

(BUSINESS) After a recording of layoffs leaks, ‘supply chain’ issues cause shipping increases, and they consult for cost-cutting, Peloton is doomed.

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Man riding Peloton bike with instructor pointing encouragingly during workout.

Is Peloton in Trouble?

According to many reports, Peloton had success early in the pandemic when gyms shut down. Offering consumers a way to connect with a community for fitness along with varying financing options allowed the company to see growth when many other industries were being shuttered.

After two years, CNBC reports that the company is “being impacted by …supply chain challenges” and rising inflation costs. According to the report, customers will be paying an additional $250 for its bike and $350 for its tread for delivery and setup.

As demand has decreased, Peloton is also considering layoffs in their sales and marketing departments, overheard in a leaked audio call. The recording details executives discussing “Project Fuel” where they plan to cut 41% of the sales and marketing teams, as well as letting go of eCommerce employees and frontline workers at 15 retail stores.

Nasdaq reported that the stock fell 75% last year, after a year where it soared over 400%.

Peloton reviewing its overall structure

According to another report from CNBC, Peloton is working with McKinsey & Company, a management consulting firm, to lower costs as revenue has dropped and the growth of new subscriptions has slowed since the pandemic. Last November, according to NPR, Peloton had “its worst day as a publicly-traded company.” It also anticipates greater losses in 2022 than originally predicted. It makes sense that the company would reexamine their strategy as the economy changes. They aren’t the only one that is raising prices amid supply chain issues.

It will be interesting to watch how Peloton fares

Peloton has a large community that pays a monthly fee for connected fitness. While growth has slowed, the company still has a strong share of consumers. Although it is facing more competition in the home fitness market and more gyms are reopening, as Peloton adjusts to the new normal, it should remain a viable company.

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Business News

CEO is offering folks thousands to *quit* their jobs, with one catch

(BUSINESS) A CEO out of Arizona is challenging employment norms by offering a sort of “sign-off” bonus upfront, but this method has one fatal flaw.

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Man counting cash in his hand representing the CEO offering money to employees who quit.

Chris Ronzio, the CEO of Trainual, a software company in Arizona that aims to systemize and scale your small business, is offering cold hard cash to quit your job in an unconventional ploy to bypass the effects of the Great Resignation.

Before you rush to turn in your notice and make some extra cash, you should know that this offer is dependent on being selected as a hirable candidate and making it through the hiring process for Trainual. This option is also offered to new hires after 2 weeks of employment.

This model of employment gives the employee the ability to fire the company and walk away with a little sum of money. The thought process of the CEO was outlined in an article by the Insider, saying it is a strategic move to retain top talent and maintain a strong company culture. While this is a unique approach…it has a glaring flaw. The offer is only good for the initial two-week period. However, it can take some time to recognize the shortcomings of any company when you begin employment. We can all recognize the long-term financial potential of reoccurring income and while $5,000 is not anything to shake your finger at, it will eventually be gone. I think we can all agree that constructive criticism can be difficult to swallow at times, however, if Trainual was truly invested in this model they would extend the offer at other key times during employment. What if this offer was again available at the 1-year mark? If the offer reappeared at a one-year review, the turnover may increase.

Per the Insider article, Ronzio was quoted as saying, “With today’s market, hiring teams have to move quickly to assess candidates and get them through the process to a competitive offer, so it’s impossible to be right 100% of the time,” Ronzio said. The CEO added, “The offer to quit allows the dust to settle from a speedy process and let the new team member throw a red flag if they’re feeling anything but excited.”

These statements detail another dimension to consider which is the employment hiring process and timeline. If top candidates are in such high demand that the process has to be sped up to secure a workforce, this monetary compensation can help to ensure the hiring decision. Although, when the offer was implemented in May of 2020, the offer was $2500, half of what it is now. Ronzio reasoned that they could stay while they looked for another job so they increased the amount to compensate for those with a higher salary range.

Let me preface this by saying that yes, accountability should exist, but I would be interested to know the turnover rate for the hiring team. The cost to the company from this unique approach adds extra weight for those making the decisions on who to hire. The stress the hiring team faces has to be factored into the candidate decisions. How many times can the hiring team get it wrong before they’re let go? While the pressure to hire the right candidate should always factor in, one has to wonder about the effects of this model.

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Business News

Zoom fatigue? This new messaging tool is here to replace live meetings

(BUSINESS) Live meetings & emails can feel monotonous & unproductive. This new messaging tool offers everything we’re wanting in remote communications.

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Woman looking at ZipMessage messaging tool on her laptop on couch.

Even before the pandemic, meetings where everyone was corporally present were becoming less frequent. With technologies allowing for Jim to “conference in” from the east coast and Judy to “video in” from the west, computer-mediated meetings have been becoming the norm for quite some time. This has become even more true over the last few years, both due to the pandemic and due to new technologies such as ZipMessage. What’s that, you ask? Let’s ask the expert. “It’s a video messaging tool made for replacing live meetings with asynchronous conversations,” explained founder Brian Casel in his tutorial video of ZipMessage.

The tool is designed to create video, voice, and screen conversations without live meetings. It’s described as async video messaging software, made for remote work.

As the website explains, people everywhere are experiencing meeting overload. Remote teams everywhere are embracing asynchronous (“async”) communication to overcome three big problems with live meetings.

First, Zoom fatigue is a real thing. ZipMessage states that “your team craves the space for the high-value deep work.”

Second, great ideas are bound to get lost in these spaces. It’s impossible to retain each item being shared, even if taking notes.

Third, email doesn’t fully cut it. Typed messages don’t always convey the full message. With ZipMessage, you can still type your thoughts, but you also have the option of recording a video and sharing attachments.

The conversation about that meeting topic is kept to one page in a back-and-forth, threaded format. Anyone with a link can join in on the conversation without anything to download, install, or sign up for.

This allows you to talk in real-time while giving the opportunity to go back and recap what may have been missed the first time around. In addition to conversation pages and the face/voice/screen/text options, ZipMessage offers intake forms and the ability to go public or private.

It also includes integration with Zapier and Slack. There are embed options, automatic transcriptions, pre-recorded message templates, text and attachments, branded link URLs, multi-speed playback, and more.

This isn’t only useful for communicating with your team, but it can be used to share information with customers, as well.

Will you be ZipMessage-ing?

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