The Agile Brand with Greg Kihlström®

Episode #730: Chasing Perfection When Agility is What’s Needed
Guest: Tom Schmitt, CEO of Radial
Date: September 8, 2025

Overview

In this episode, host Greg Kihlström is joined by Tom Schmitt, CEO of Radial, to explore whether the quest for a “perfect” customer experience can actually hinder organizational agility in the fast-changing retail landscape. The discussion covers the evolution of consumer expectations, the new centrality of fulfillment in customer experience, operational strategies for handling fluctuating demand, and the leadership mindsets required to drive both agility and business results. Tom brings decades of experience to the conversation, sharing insights from his first months at Radial and lessons learned from a career in supply chain leadership.

Key Discussion Points & Insights

1. Changing Retail & Evolving Consumer Expectations

Timestamps: 03:32 – 04:42

• Tom highlights three primary consumer expectations, based on a recent Radial survey:
  • Delivery Speed: Customers want their online purchases quickly—“I want to have it now.”
  • Product Availability: Shoppers expect what they’re looking for to be in stock.
  • Easy Returns: Especially in categories like fashion and beauty, hassle-free returns are vital.

Quote:

“Speed, availability, and the ability to return certainly are the three podium positions.”
— Tom Schmitt [04:20]

• Consumers don’t typically talk about “fulfillment,” but it has become core to customer experience.

2. Fulfillment as Central to Experience

Timestamps: 05:24 – 07:34

• Fulfillment is no longer just a backend operation; it is the customer experience now.
  • Tom references Fred Smith, founder of FedEx: “The information about the package is as important as the package itself.”
  • Today’s delivery experiences are expected to be trackable, visual (with delivery photos), and precise.
  • Fulfillment dictates peace of mind for customers.

Quote:

“If you want to headline this, Greg, you could actually say fulfillment is the experience. Fulfillment is the customer experience.”
— Tom Schmitt [05:29]

3. How Brands Are Rethinking Fulfillment Strategies

Timestamps: 08:04 – 10:56

• Brands must balance “left brain” (analytics, process, mathematics) and “right brain” (passion, excitement) approaches:
  • Left brain: Managing inventory, order accuracy, replenishment, cost.
  • Right brain: Cultivating excitement, emotional connection to products.
• Rigorous process required: For instance, Radial operates with 99.9% order accuracy.
• Operational excellence must support an inspiring, emotional customer connection.

Quote:

“It’s a bit of art and a bit of science.”
— Tom Schmitt [09:05]

4. Managing Fluctuating & Increasingly "Peaky" Demand

Timestamps: 12:24 – 17:17

• Tom discusses “peak season” challenges—now blurred by sales and promotions year-round.
• Best practices:
  • Strategic “De-Peaking”: Incentivize earlier purchases to avoid impossible last-minute delivery promises.
  • Blended Fulfillment Centers: Hosting countercyclical brands (e.g., gardening vs. swimwear) to balance workload across seasons.
  • Close Coordination: Open, honest, and ongoing communication between brands and fulfillment partners to coordinate sales and inventory management.
• The “new normal” is unpredictability; agility is critical to cope with it.

Quote:

“A summer sale, a spring sale, a special something sale may in some cases be a surprise to the consumer. It cannot be a surprise to your partner. This is team sport.”
— Tom Schmitt [16:20]

5. The Future: More Frequent Surges, More Agility Needed

Timestamps: 17:34 – 18:42

• Expect more frequent and creative peaks as brands strive to “wow” and surprise customers.
• Drawing an analogy to Taylor Swift’s “Easter eggs,” Tom predicts retail will get “more flexible and more agile”—not more steady.

Quote:

“I don’t think we’re going to get back to steady and boring. I do believe we have to get more and more flexible and more agile.”
— Tom Schmitt [17:45]

6. Leadership Lessons and Table Stakes for New CEOs

Timestamps: 19:11 – 25:36

• Tom reflects on his first months at Radial and his past competing against the company.
• Advice for new leaders:
  • Lead with good intentions and competence—not perfection.
  • Listen first: “Communicate with two ears and one mouth.”
  • Focus on results, not just effort.
  • Align people’s skills and will with top priorities; don’t set teams up to fail.
  • Empathy is more vital than ever (“This sucks” moments are to be acknowledged before solving).
• COVID has accelerated the need for human-centered leadership.

Quote:

“We lead with empathy like oh, this sucks, I’m so sorry. And even when you talk to a customer and we just failed them again right now, we are succeeding with them 999 out of a thousand times. But at one time when I talk with them, I’m perfectly fine saying I’m so sorry. I’m so sorry. We’re better than this.”
— Tom Schmitt [24:48]

7. Staying Agile as a Leader

Timestamps: 25:53 – 26:33

• Continuous improvement (“get better every single day”) is essential.
• Tom stays agile with physical activity (cycling) and music for mental stimulation—he’s a self-confessed “Swiftie.”
• Personal well-being practices support professional agility.

Quote:

“We strive to get better every single day. We strive to be perfect, but in Nike’s words, it’s a race without a finishing line.”
— Tom Schmitt [25:55]

Notable Quotes & Memorable Moments

• “Fulfillment is the customer experience.” [05:29]
• “It’s a bit of art and a bit of science.” [09:05]
• “If you want to win, you have to plan together—it’s a team sport.” [16:20]
• “Empathy is becoming more important... Lead with empathy like ‘oh, this sucks, I’m so sorry.’” [24:48]
• “It’s a race without a finishing line.” [25:55]

Summary Timeline (Timestamps)

• 03:32: Top 3 evolving consumer expectations revealed (speed, availability, returns)
• 05:29: “Fulfillment is the customer experience”—it’s no longer a background function
• 09:05: Balancing the art and science of fulfillment
• 12:24: Best practices for blurring, always-on peaks in retail
• 16:20: Why collaboration and communication are critical during peaks
• 17:45: Future will require even greater agility, inspired by creative brands
• 19:11: Tom’s personal leadership journey and Radial’s pioneering history
• 22:05: Advice for new CEOs—listen first, focus on outcomes, lead with empathy
• 25:55: Staying agile: continuous improvement and personal well-being

Tone and Language

• Practical, experienced, conversational, grounded in both operational detail and big-picture themes.
• Tom Schmitt brings passion, humility, and a blend of analytical rigor and creative enthusiasm (“I’m a Swiftie!”).
• Greg guides the dialogue to keep it relevant for marketing leaders, emphasizing actionable insight and thought leadership.

Main Takeaways

• Perfection is the enemy of agility. Consistent improvement, not static perfection, is vital in today’s retail and fulfillment environment.
• Fulfillment is core to customer experience. Speed, reliability, order accuracy, and communication are table stakes.
• Agility is fostered at every level—from operational planning to executive leadership and customer communication.
• Empathetic leadership and well-aligned teams set the stage for agility and business success.

For more:
Learn about Tom Schmitt and Radial at the links provided in the show notes, and follow The Agile Brand for more conversations on AI, Martech, and leadership.