Georg Richter is the CEO and Founder of OceanX. Georg most recently served as the COO and President of Gunthy-Renker, before introducing the new direct to consumer (DTC) platform.
Georg specializes in implementing next-generation technologies and people to solve problems, transform industries, and increase financial performance, and he provides Digital Journal readers with his insights.
Digital Journal: How is the world of business changing?
Georg Richter: Everything in the world of business becomes more transparent and faster. Human behavior will always lag the technology trends, but the effects are showing. More communication, more products, more options, more media, more businesses. It can’t go on like this for ever, so something has to change over time.
DJ: How much of this is due to new technologies?
Richter: Clearly, most society changes are triggered by new technologies. The biggest ones in recent history were the internet, smartphones, big data and cloud computing. Next is artificial intelligence and increased workplace automation for many current business functions.
DJ: How important is digital transformation for businesses?
Richter: It is hard to think about any business which can get away not participating in digital transformation. Even businesses as diverse as small scale farming and professional sports have been radically transformed by digital transformation in recent years.
DJ: Do all sectors need to go through this process?
Richter: Yes, all sectors need to go through the process. Because society is highly dependent and influenced by technology. Technology when used appropriately can only help make better decisions. It certainly does not solve all problems and many businesses rely too much on tech and tools as opposed to a real business sense or making a real connection with your customer.
DJ: Why did you form OceanX and what does it offer?
Richter: We formed OceanX because we saw a need in the market and happened to have relevant technology and knowledge in our arsenal. It offers businesses a new channel – direct selling and relating to customers in a very personal way. OceanX offers the backbone of DTC sales in a recurring revenue generating model– from sophisticated order management to physical distribution and customer service, all supported by data and relevant iterative learning.
DJ: How does OceanX stand out from its competitors?
Richter: While others claim to have an ‘all in one platform’ for direct selling, OceanX is the only company who can prove large scale, significant volume and a deep history in completely focusing on Direct to Consumer selling. We combine technology and physical execution at a scale not existent anywhere else.
DJ: How important is the subscription business model?
Richter: Subscription is a much used word these days. There are clearly more subscriptions than ever before. However, I would define the subscription model a bit larger than what is generally considered the “subscription” industry. The overriding thought is ‘recurring revenue’ – that is created by continuously giving customers what they want and inspiring them to buy things they didn’t know they needed. The framework can be a subscription, a membership or a forever relationship.
DJ: Which business types can make most use of this approach?
Richter: There is hardly a business type where the recurring revenue approach doesn’t work. Most of us subscribe to more things than we know. Insurance, cable, etc. are not thought of as subscriptions but technically they are. Today’s subscriptions span a wide field of products, including movie tickets, software and even cars. The most growing these days in the retail side are in apparel, food and pets but nobody can know what’s next. Truly expensive, really heavy and once in a blue moon purchases are the only logical exclusions of the concept.
DJ: How do subscription boxes appeal to consumers?
Richter: Most things come in a box, but when people talk about subscription boxes they are thinking of the over 3,000 different offerings created since about 2010 (when Birchbox started a trend – with a sampling subscription box). Consumers will try a variety of boxes (the initial box tends to be heavily discounted), but stay with only those who offer useful and interesting products at a value. Supporting inspiration, education and increasingly aspects of ‘doing good’ are becoming ‘mainstream elements’ of subscription boxes.
DJ: How can companies use personalized experiences created through subscription services to compete?
Richter: The subscription business is all about personalization/customization. With the exception of sampling businesses, all subscriptions need to be highly personalized to sustain a large customer/member base. As a matter of fact, the higher the degree of customization, the longer the average lifetime of a customer will be (and so the related sales).
