As a small digital company you might already have a product or service, which could easily be adapted to the specific needs of a Small Commerce business, for instance you might have an application or software that manages the stock of a business, and you want to adapt it to the needs of hospitality businesses which work with perishable products (which thus has implications on stock management). Or maybe you want to develop a completely new product or service from scratch to tap into this segment and generate a new revenue stream.

You also might be just starting as an entrepreneur and want to tap into the opportunities the Small Commerce sector can offer you.

In both cases you need to understand the unique needs and pain points of this type of business and in particular the ones related to the specific customer segment you are targeting. You can only do this by understanding their business processes and tap into their (tacit) knowledge on their everyday activities. 

There are several options to obtain this information and which will help you ideate the (adapted or new) product or service.

  1. Desk research: extract data and reports that provide insight into the reality of the Small Commerce sector and/or the specific customer segment you had in mind and analyse the existing offerings by your competitors. There are reports on the future of the sector, statistical data, but also interesting articles from different sources that can give you information.
  2. Dialogues with the owners and managers of the Small Commerce businesses, inquiring into the pain points, the challenges they face and the problems to be solved.
  3. Observation of the daily running of the business(es) because actions speak louder than words, the reality of the business might not always align with the information obtained with the dialogues.
  4. Co-creation session bringing together the owners, managers and even staff of one or more businesses from the same customer segment with the aim to jointly ideate a new or adapted product or service.

Point 1 is to be done in all cases, even if you start a co-creation process, you need to know where you are going, i.e., which customer segment you are covering, or which solutions you are offering. Also, you need to know what is already out there in the market,  as you do not want to start a co-creation process to end up with the same idea for a product or service as already offered by a competitor.

 You cannot start a co-creation process without clear objectives and what you want to achieve (let alone convince participants to join in without this information).

Dialogues and observations are good tools, but with regards to observations, the Small Commerce business might be reluctant to have someone peeking into their business and maybe generate “noise” and distraction for both workers and clients.

In any case, in LETZ RETAIL ONLINE we focus on using a co-creation approach as part of your ideation process, but we do not want to forget about other options you might want to consider.

Tips & Tricks

  • Bear in mind, many small commerce businesses still need to be made aware of the benefits of digital tools. So you need to ensure that you understand what is holding them back, e.g. inadequate broadband, a lack of technical skills, or huge financial barriers to investing in technology, or even “fear of the digital” by the owner/manager. Involving them in a co-creation process, means convincing them of the need to “go digital”, so dedicate sufficient time to raise this awareness and overcoming the barriers.
  • Do not assume that similar businesses from the same segment are interested in the same journey, although their pain points are different, the way these can be overcome can be different. Leave enough room in the ideation process to explore these differences, you might come up with interesting insights which you did not expect.
  • Keep an open mind, everyone goes into a co-creation process with certain expectations, especially if you are looking to adapt an existing product or process, but even with a completely new ones, you might have some preconceived assumptions. Try and avoid these to influence the process, be open minded, and really listen to the participants in the process.
  • And last but not least, keep it simple, try and communicate in an easy and understandable way, and avoid “technology gibberish”. Keep in mind the persons you are working with (see also “Understanding each other” (below).

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2021-1-LU01-KA220-VET-000035648