The roller coaster ride that is the financial marketplace over the past month will not affect retail open-to-buy dollars or inventories for the holiday season. But experts say retailers should get used to a phrase that will become much more important than any government bailout. That phrase: “the psyche of the American consumer.”
“Retail stocks may have hit their bottom in July. The real fluctuations are in the psyche of the American consumer,” says Bob Carbonell, EVP and Chief Credit Officer of retail financial analyst firm Bernard Sands. “What is the American housewife going to do this Christmas? The holiday season is everything, much more so this year than any other year.”
Prognostications from most every corner say that psyche is rattled and cautious. Holiday spending will most certainly be well off last year’s pace. But the depth of that decrease, the products that will succeed in hitting sales goals, the retailers that will attract customers, and the channels that will prevail are still very much in play. One relief can be found in the sound fundamental structure of retail purchase budgets and the credit necessary to execute them. Experts point to three reasons for that stability:
1. Timing: It’s simply too late in the sales cycle to back out of inventory commitments. “There’s just not a whole lot of time left in terms of actionable steps retailers can take, if they wanted to,” says Aberdeen retail analyst Ben Ream.
2. Retail Financing is Solid: Carbonell points out that the banks that lend most of the money to key retailers have not been caught up in the mortgage-based securities that have crippled many firms. Bank of America Retail Finance, GE Captial, and LaSalle financial are among the retail lending leaders and have established themselves as liquid.
3. Business Model Simplicity: Retailing is retailing, say many experts. “You buy stuff, you sell stuff, you answer questions politely, you treat your customers well,” says Carbonell. “Retailing has remained true to some very basic tenets and has avoided some of the complex issues that have hurt other businesses.”
Outside of the core fundamentals, retailing has become more complex in how goods are sold and how information is accessed. Therefore the cross-channel framework may be more important in addressing the damaged psyche of the cross-channel customer. Ream believes consumers will go “the extra mile” in terms of product research, price comparisons, product reviews and store locations this year in order to ensure that the purchase decisions they do make will be the most informed. Ream urges retailers to heavy up on cross-channel preparation and measurements. Understanding conversion rates in all channels, units per transaction, and repeat purchases are even more important to understand in a tough economy.
While open-to-buy dollars are expected to remain solid, promotional dollars have already taken a hit. Best Buy has officially announced an advertising cutback for the balance of the year, and tough Q3 numbers may lead more retailers to follow suit.
In terms of measuring the consumer psyche, Carbonell is looking toward Halloween as an early barometer. On a positive note, Visa has predicted an 18% bounce for Halloween, even after the stock market slide. The average person will spend $47 on candy and decorations, this year, up from the $40 Americans reported they were planning to spend on Halloween last year.
"Depriving our children, and our neighbors' children, of Halloween trick or treating is not something Americans seem willing to bear," said Jason Alderman, Director of Financial Education at Visa Inc.
Retailers arehoping that will hold true for spending around year-end holidays as well.
Thursday, September 25, 2008
Thursday, September 11, 2008
With Shopping Trips Down, Retailers See Redemption Rates Soar On Work Targeted Promos
Fueled by rising gas prices and a slow economy, more consumers are shopping near work or on their commute route, according to recent research. In the August 2008 Consumer Intentions and Action survey from BIGresearch, 57.2 percent of respondents indicated they will be driving less because of gas prices. In addition, 54.4 percent said they would be taking “fewer shopping trips.”
By targeting “commute route shoppers,” one grocery chain recorded its strongest promotion results to date, according to Stephanie Molnar, CEO of WorkPlace Media, the promotion provider. The grocery chain’s coupon redemption exceeded 20 percent in a typical four- to eight-week promotion period. “I would have estimated a low single digit response and was shocked,” notes Molnar.
WorkPlace Media, in business for more than 20 years, has traditionally targeted the restaurant/foodservice industry with its workplace promotion solutions, but has recently begun to focus on other types of retail, including grocery and convenience stores. Some of its most well-known clients include Sheetz, Kmart, Lenscrafters and McDonalds.
The results of WorkPlace Media’s promotions are impressive. In the past year, grocery redemption averaged 11.3 percent, other retail/non-grocery averaged 8.06 percent, and all programs (including restaurants and CPG) averaged 8.99 percent, Molnar reports.
To get their errands and chores done, many consumers are combining their daily drive to and from work with stops for shopping, more than ever. “Historically the working consumer spends 60 percent of his or her waking hours at work or commuting to and from,” notes Molnar. “They are efficient in their shopping patterns, but even more so with the advent of high fuel costs.”
Commuters are taking care of a number of different types of errands during their drive to and from work, according to BIGresearch, in its At-Work Consumer Media & Shopping Behavior survey from December 2007:
Workers more likely to redeem
Marketing to workplace consumers has proven fruitful. Consumers who receive shopping promotions in the workplace are three times more likely to respond to those offers compared to offers received at home, says Molnar.
It’s also a win-win for the sponsoring retailers and the employers, Molnar adds. For retailers, WorkPlace Media can provide real-time consumer feedback to find out intent to purchase, in-store experience, feedback about the promotion and more. Employers are happy because they are able to provide a free benefit to their employees, “and they enjoy distributing them, usually face-to-face,” says Molnar.
At press time, WorkPlace Media maintained a network of 920 businesses which voluntarily participate in the firm’s permission base, allowing WorkPlace to reach more than 64 million consumers. “When we survey our network we typically find out that 98 percent want to receive more workplace promotions in the future,” says Molnar.
To further flesh out the reasons why the workplace consumer is growing in importance as a target market, WorkPlace Media is conducting a webinar in conjunction with the Promotion Marketing Association, on September 16, 2008 at 2:00pm EST. Visit https://www.pmalink.org/shop/aw_091608.aspx for free registration.
By targeting “commute route shoppers,” one grocery chain recorded its strongest promotion results to date, according to Stephanie Molnar, CEO of WorkPlace Media, the promotion provider. The grocery chain’s coupon redemption exceeded 20 percent in a typical four- to eight-week promotion period. “I would have estimated a low single digit response and was shocked,” notes Molnar.
WorkPlace Media, in business for more than 20 years, has traditionally targeted the restaurant/foodservice industry with its workplace promotion solutions, but has recently begun to focus on other types of retail, including grocery and convenience stores. Some of its most well-known clients include Sheetz, Kmart, Lenscrafters and McDonalds.
The results of WorkPlace Media’s promotions are impressive. In the past year, grocery redemption averaged 11.3 percent, other retail/non-grocery averaged 8.06 percent, and all programs (including restaurants and CPG) averaged 8.99 percent, Molnar reports.
To get their errands and chores done, many consumers are combining their daily drive to and from work with stops for shopping, more than ever. “Historically the working consumer spends 60 percent of his or her waking hours at work or commuting to and from,” notes Molnar. “They are efficient in their shopping patterns, but even more so with the advent of high fuel costs.”
Commuters are taking care of a number of different types of errands during their drive to and from work, according to BIGresearch, in its At-Work Consumer Media & Shopping Behavior survey from December 2007:
• 74 percent dine out during or to and from workIn addition, during work consumers often skip lunch and take care of shopping: 61 percent for apparel, 53 percent for beauty care and cosmetics, 48 percent for shoes and 24 percent for jewelry and watches.
• 72 percent purchase groceries and other food and beverages
• 56 percent are stopping to purchase medicines, vitamins and supplements
• 49 percent complete shores such as picking up dry-cleaning and purchasing new eyewear
• 35 percent get their cars serviced
Workers more likely to redeem
Marketing to workplace consumers has proven fruitful. Consumers who receive shopping promotions in the workplace are three times more likely to respond to those offers compared to offers received at home, says Molnar.
It’s also a win-win for the sponsoring retailers and the employers, Molnar adds. For retailers, WorkPlace Media can provide real-time consumer feedback to find out intent to purchase, in-store experience, feedback about the promotion and more. Employers are happy because they are able to provide a free benefit to their employees, “and they enjoy distributing them, usually face-to-face,” says Molnar.
At press time, WorkPlace Media maintained a network of 920 businesses which voluntarily participate in the firm’s permission base, allowing WorkPlace to reach more than 64 million consumers. “When we survey our network we typically find out that 98 percent want to receive more workplace promotions in the future,” says Molnar.
To further flesh out the reasons why the workplace consumer is growing in importance as a target market, WorkPlace Media is conducting a webinar in conjunction with the Promotion Marketing Association, on September 16, 2008 at 2:00pm EST. Visit https://www.pmalink.org/shop/aw_091608.aspx for free registration.
Thursday, August 14, 2008
Survey Says Fewer Brand Decisions Made at the Shelf
By George Anderson, RetailWire
Editor’s Note: This article is an excerpt from one of RetailWire’s recent online discussions. Each business morning on RetailWire.com, retail industry executives get plugged in to the latest news and issues with key insights from a “BrainTrust” of retail industry experts.
As an AdAge.com article points out, it has become common for those in consumer products to state that 70% of all decisions on what brand to buy are made at the shelf. A new study from OgilvyAction contends that it's time to throw out the old number and go with a new and lower one.
According to the study, 39.4% number is the real number of consumers who wait until they're in a store before deciding what brand to buy. About 10% change their minds while in the store and 20% leave a product on the shelf that they intended to buy. Nearly 30% of consumers wind up making a purchase from a category that they didn't intend to buy from before walking into a store.
"That 70% figure we've all heard over the years always sounded a little high, and we all know it's a little high," said Peter Hoyt, executive director of the In-Store Marketing Institute. "Some think it's a lot high. I think what the Ogilvy study does effectively is help decompose [the data]. I think it's closer to what we can accept as statistics having some validity. ... But it's not that 70% of every shopping cart is made up of something people didn't [originally] intend to buy. That's just not real."
The original 70% study was conducted in 1995 by Meyers Research Center for the Point of Purchase Advertising Institute (POPAI). In a statement, POPAI continued to support the 1995 findings. "There have been various studies that have arrived at different in-store decision rates over the years, based on unique methodologies, trade channels, and the context and location of consumer interviews. POPAI welcomes any research that helps brands, retailers and agencies understand the strategic importance of marketing at retail."
The OgilvyAction study was based on interviews with 6,800 consumers in the U.S. (14,000 total across the globe) and covered shopping behavior in 13 categories including beverages, confectionary, hair care, and household cleaning products.
While the new research failed to answer just how much advertising outside the store environment influences purchases, it did determine important factors that drive impulse purchases. Sampling and product displays ranked one and two.
"The good news for marketers is that a product display and sampling can build brand equity," Jeff Froud, senior strategic planner for OgilvyAction, told AdAge.com. "No matter what rulebook you studied when you were studying marketing, price promotions don't build any brand equity and in some cases can be equity destroyers."
"More and more of our communication is moving to store," A.G. Lafley, chairman and chief executive at Procter & Gamble, said last month at the International Advertising Festival in Cannes. "And the reason it's moving to store is that more and more consumers are... making their purchase decisions in store. And in a period where you have a fair amount of food price inflation, we think more of that shopping list, whether it's just in [a shopper's] head or actually written down, is being decided in the store."
Pursue at the Point of Purchase
“Getting through to the consumer with your product message and features is easier and more effective at the point of purchase,” says Dan Nelson, CEO of Leadership Resources. “The amount of clutter in more traditional media and the options of what consumers watch, read and view on the internet and cable has made effective use of advertising dollars much more difficult.”
One analyst acknowledges the impact of sampling and product displays on sales. “Whether it's 70% or 40%, the key point here is the immense opportunity that retailers and their suppliers have to dramatically influence consumer buying behaviors,” says Kevin Graff, president of Graff Retail. “Now, imagine if you can the impact you could make on performance if you could engage the workforce in the stores to the point that they become brand ambassadors, both for the store itself and for key products.”
The power of reviews and targeted offers are the way to go, says one analyst. “Impulse shopping is alive and well. But the shelf is now digital,” according to Liz Crawford, president of Crawford Consulting. “Increasing dwell time at the shelf, whether 3D or virtual, is still the name of the game. The field has moved, but the game is still afoot.”
Friday, August 1, 2008
Will The Logo Mean A Kinder, Cooler Wal-Mart? Can The Retail Giant Live Up to the Logo Change
By Andrew, Bogucki, Principal & Creative
Retail monolith Wal-Mart has taken the plunge and changed its identity. While I’m referring specifically to the logo and all the design elements that support it, a new aesthetic identity can also indicate a shift in a company’s corporate identity in a more universal sense.
Changing a corporate or brand identity is a big undertaking. When done right, it sends a powerful signal to the outside world. It makes you sit up and take notice, ready to hear the rest of the story. But if there is no story… well, it can do more harm than good.
Changing a logo, to use a personal analogy, is a little like changing your “look”: new wardrobe, new hairstyle, new glasses, etc. It sends a signal that something about you is new or has changed. When the loveable but slightly scruffy and lazy mailroom guy suddenly shows up to work clean-shaven and wearing a bespoke suit, people will notice. The message he’s sending is: “I’m not lazy anymore! Give me the chance and I’ll prove it to you!” And if, in fact, he changes his lackadaisical ways and becomes more disciplined and pro-active, then management may truly see him in a new light, and potentially offer him new opportunities.
But if the new suit is simply a cover-up for the same old lazy habits, the message he is sending is hollow, and will quite likely bring even more scrutiny. The same principle is true for companies and brands.
Truth be told, perceptions of the highly profitable Wal-Mart have started to suffer from decades of aggressive business practices and dubious employment policies. Now the bulk of the revenue-generating customer base might not be paying much attention to those issues. But on top of that, the world’s richest company has always had a decidedly un-cool, low-end, bargain-basement image. There’s no question that a re-positioning on some level is in order. So what’s Wal-Mart’s new story? Well, based on cryptic postings like this (sourced from identityworks.com), it sounds like a touch-up:
“This update to the logo is simply a reflection of the refresh taking place inside our stores and our renewed sense of purpose to help people save money so they can live better. The updated logo won’t begin to appear on storefronts until the fall."
In contradiction, the logo seems to be signaling a bigger personality shift than that. The former bold, all-caps, industrial strength typography has been replaced with a lighter, friendlier, upper- and lower-case treatment. This makes the name feel more approachable, as though being used in a conversation instead of an institutional pronouncement. The deep, monopolistic blue has been traded for brighter, less ominous cyan. This adds a certain freshness and energy to the mark. The military-style star has turned into a bright yellow spark. While not the most own-able symbol one could choose, it certainly feels more contemporary, optimistic, and yes, lively. And the hyphenated WAL-MART has become the single word Walmart, making it feel like a proper name, instead of a coined reminder of the mega-retailer’s somewhat humble roots. All-in-all, the logo change sets expectations for a pretty different version of the Wal-Mart experience.
The store environments themselves need to play a big role in that experience. The obvious competitor in the mega-retail space is Target, which has always understood the value of good design in all aspects of the brand experience; and its favorability scores overtook Wal-Mart’s last year in CoreBrand’s Brand Power Analysis. Shopping at a Target (while not exactly like browsing specialty shops and boutiques in, say, Paris) is certainly a different experience than shopping at a Wal-Mart. Much of the merchandise at Target tends to be better designed; the graphics and packaging are more sophisticated; the overall environment feels downright warm and inviting compared to Wal-Mart’s stark, fluorescent, Five-and-Dime glare. Revamping the in-store experience for Wal-Mart should be a large part of signaling change. What those changes are remain to be seen.
So what’s the rest of the story? At a cursory glance, certain changes are noticeable. Wal-Mart is stocking and promoting many “green” products, demonstrating not only environmental-consciousness, but purportedly allowing families to save money in energy usage. Their new high-production-value commercials feature lifestyle and benefit messaging, a shift from the pure price-slashing message from before. And new licensing deals are being sought out, such as an exclusive clothing line from rapper Master P, to add a hip, contemporary edge to the image.
It’s certainly a start. Wal-Mart is a mighty big ship to turn around, with a fair amount of brand baggage to purge before perceptions can really begin to change. Sheer scale, longevity, aggressiveness and ubiquity have woven Wal-Mart quite firmly into a very specific part of American, and increasingly world, culture. The new logo signals a pretty big change. Can they back it up? We’ll just have to wait and see.
directs all creative activities at CoreBrand. Before joining CoreBrand,
Andrew was Design Director at Interbrand where he was integral in creating
corporate identity systems for clients such as MCI, 3M, and BankBoston.
Since joining CoreBrand, Andrew has developed a full range of design and
identity systems for numerous global brands including AT&T, American Century
Investments, BearingPoint, Catalent, MasterCard Worldwide, Tektronix, and
Thomson.
Monday, May 12, 2008
Retailers Learn It's Not Easy Being Green, But Continue Investing
By Debbie Hauss, Executive Editor
Retailers are treading lightly in the green marketplace, taking note that consumers are skeptical and reticent to commit to trading much of their “green” for green merchandise. Although a large percentage of consumers (81.9 percent) say they have incorporated some level of green activity into their lives, most of their efforts do not translate to dollar signs at retail, according to a recent survey of more than 6,000 consumers conducted by Burst Media.
It turns out that the consumers respond most positively to green messages about recycling and healthy recipes, then alternative energy sources, natural remedies, eco-friendly cleaning products, green technologies, nature/outdoor recreations, tips for simple living, gardening/organic gardening, and organic foods, Burst reports. The bottom line is that the retailers offering products related to these subject areas are most likely to be successful.
A new Benchmark report from RSR Research also validated that retailers are moving forward with green initiatives, despite the fact that many respondents are not yet seeing a big shift consumer spending toward green products and services. The RSR Research report, 62% of retail respondents said consumers are not yet spending on green products, however 44% said green initiatives are still strategic initiative in their company. The motivations for the green practices include ethical obligations as well as cost concerns.
Green food is a Natural
Supermarket retailers, in particular, are faring well in this area by offering more organic and whole foods, as well as environmentally friendly programs. This is a trend that has been in place for a number of years and is growing. It started with brands like Whole Foods and Trader Joe’s but is slowly infiltrating more mainstream grocers, such as Kroger, Supervalu and Safeway.
The mainstream supermarket retailers are hoping to benefit from offering lower prices for their organic goods compared to the specialty stores, which should be especially palatable to consumers in 2008 who are struggling with higher food prices, as well as increasing gas prices and other financial issues related to the current recession economy.
Some recent activity in this segment includes:
· Kroger introduced a plastic recycling program and is promoting is through an online contest called “Design Kroger’s Next Reusable Bag.”
· Safeway is banking on its line of private label organic products and some new Lifestyle store formats
· Supervalu-owned Acme Markets opened the first environmentally friendly supermarket in the Philadelphia, Pennsylvania area in April. The new store was built according to Leadership in Energy and Environmental Design (LEED) form the U.S. Green Building Council. For the Supervalu stores, the company is adding private label organic food products after failing with a small line of organic markets, introduced in 2005 under the Sunflower Markets brand.
· Tesco entered the U.S. market with its Fresh & Easy chain which focuses on healthy, reasonably priced prepared foods.
In a recent report, released in March by Citibank Global Markets, analyst Deborah Weinswig noted Kroger and Safeway as the stores best positioned to gain share from bigger, national brands.
Sustainability the word of the day
While “organic” has been the term most closely associated with healthier, better choices for food products, the term “sustainability” is taking over as the all-encompassing term that may help to attract consumers to other types of retailers.
Touted as Wal-Mart’s largest “sustainability” campaign to date, the retail giant’s Earth Day 2008 effort used advertising, in-store displays and featured products to reinforce Wal-Mart’s goal of making sustainable products available to customers at affordable prices, the company reported. Wal-Mart also has micro sites available for consumers including walmart.com/sustainability, walmart.com/green and walmart.com/earth. The company is selling more than 50 green products in-store and more than 500 online.
Home Depot introduced its Eco Options label in 2007, which includes 3,000 products from compact fluorescent lights to organic plants. The brand sold as well or better than similar products, exceeding sales goals and reaching $3 billion, the company reported.
The Marketing Challenge
A number of barriers are stalling retail sales of green products, including limited product availability due to uncertain consumer demand, and inconsistent product standards. In addition, consumers are less-than-confident in the green marketing messages from advertisers, according to Burst Media. The Burst survey found that 22.7 percent of respondents say they seldom or never believe green claims made in advertisements, and 65.3 percent said they “sometimes” believe the claims.
To help steer consumers in the right direction, one third-party source, called thepurplebook green, is offering a guide to green shopping online. Companies that sell their green products online are invited to submit their site for inclusion in the guide at www.thepurplebook.com. The sites and the products are then reviewed by thepurplebook staff and consumer feedback is considered to determine if that site will be included in the book as a recommended retailer.
Is green a viable, long-term market segment or a passing trend? The jury is still out.
Retailers are treading lightly in the green marketplace, taking note that consumers are skeptical and reticent to commit to trading much of their “green” for green merchandise. Although a large percentage of consumers (81.9 percent) say they have incorporated some level of green activity into their lives, most of their efforts do not translate to dollar signs at retail, according to a recent survey of more than 6,000 consumers conducted by Burst Media.
It turns out that the consumers respond most positively to green messages about recycling and healthy recipes, then alternative energy sources, natural remedies, eco-friendly cleaning products, green technologies, nature/outdoor recreations, tips for simple living, gardening/organic gardening, and organic foods, Burst reports. The bottom line is that the retailers offering products related to these subject areas are most likely to be successful.
A new Benchmark report from RSR Research also validated that retailers are moving forward with green initiatives, despite the fact that many respondents are not yet seeing a big shift consumer spending toward green products and services. The RSR Research report, 62% of retail respondents said consumers are not yet spending on green products, however 44% said green initiatives are still strategic initiative in their company. The motivations for the green practices include ethical obligations as well as cost concerns.
Green food is a Natural
Supermarket retailers, in particular, are faring well in this area by offering more organic and whole foods, as well as environmentally friendly programs. This is a trend that has been in place for a number of years and is growing. It started with brands like Whole Foods and Trader Joe’s but is slowly infiltrating more mainstream grocers, such as Kroger, Supervalu and Safeway.
The mainstream supermarket retailers are hoping to benefit from offering lower prices for their organic goods compared to the specialty stores, which should be especially palatable to consumers in 2008 who are struggling with higher food prices, as well as increasing gas prices and other financial issues related to the current recession economy.
Some recent activity in this segment includes:
· Kroger introduced a plastic recycling program and is promoting is through an online contest called “Design Kroger’s Next Reusable Bag.”
· Safeway is banking on its line of private label organic products and some new Lifestyle store formats
· Supervalu-owned Acme Markets opened the first environmentally friendly supermarket in the Philadelphia, Pennsylvania area in April. The new store was built according to Leadership in Energy and Environmental Design (LEED) form the U.S. Green Building Council. For the Supervalu stores, the company is adding private label organic food products after failing with a small line of organic markets, introduced in 2005 under the Sunflower Markets brand.
· Tesco entered the U.S. market with its Fresh & Easy chain which focuses on healthy, reasonably priced prepared foods.
In a recent report, released in March by Citibank Global Markets, analyst Deborah Weinswig noted Kroger and Safeway as the stores best positioned to gain share from bigger, national brands.
Sustainability the word of the day
While “organic” has been the term most closely associated with healthier, better choices for food products, the term “sustainability” is taking over as the all-encompassing term that may help to attract consumers to other types of retailers.
Touted as Wal-Mart’s largest “sustainability” campaign to date, the retail giant’s Earth Day 2008 effort used advertising, in-store displays and featured products to reinforce Wal-Mart’s goal of making sustainable products available to customers at affordable prices, the company reported. Wal-Mart also has micro sites available for consumers including walmart.com/sustainability, walmart.com/green and walmart.com/earth. The company is selling more than 50 green products in-store and more than 500 online.
Home Depot introduced its Eco Options label in 2007, which includes 3,000 products from compact fluorescent lights to organic plants. The brand sold as well or better than similar products, exceeding sales goals and reaching $3 billion, the company reported.
The Marketing Challenge
A number of barriers are stalling retail sales of green products, including limited product availability due to uncertain consumer demand, and inconsistent product standards. In addition, consumers are less-than-confident in the green marketing messages from advertisers, according to Burst Media. The Burst survey found that 22.7 percent of respondents say they seldom or never believe green claims made in advertisements, and 65.3 percent said they “sometimes” believe the claims.
To help steer consumers in the right direction, one third-party source, called thepurplebook green, is offering a guide to green shopping online. Companies that sell their green products online are invited to submit their site for inclusion in the guide at www.thepurplebook.com. The sites and the products are then reviewed by thepurplebook staff and consumer feedback is considered to determine if that site will be included in the book as a recommended retailer.
Is green a viable, long-term market segment or a passing trend? The jury is still out.
Monday, March 3, 2008
Experts Offer Strategies On How Retailers Can Crack The Code On Mobile Marketing
By Amanda Ferrante, Assistant Editor
After seeing coupon redemption rates of 50% in its initial 12 test stores, Subway Restaurants recently expanded its “My Subway Mobile” campaign to more than 100 locations. The chain is now offering a dozen different promotional offers to more than 5,500 customers through the program, which is managed using a service from Modiv Media.
In another recent indication of the power of mobile marketing, Papa John’s Pizza recent Super Bowl campaign, “TEXTRA Points for Pizza,” drew over 115,000 registrants who were looking to score super discounts on pizza based on the final outcome of the big game.
While many of the early success stories around mobile marketing have been in the QSR sector, industry analysts suggest there are significant opportunities for other retailers to get in on the mobile action.
“The possibilities for mobile marketing are endless,” says Brad Beasley, president of CrossLink Media, a mobile marketing company offering both messaging and Bluetooth ad-serving software. MessageLink, the company’s proprietary messaging system, executes mobile campaigns via a secure online interface that enables clients to log in and create, modify, and deploy within minutes.
In addition, MessageLink provides a fully automated CRM solution offering additional information and request follow-up communication. “MessageLink provides a great CRM tool as clients now have immediate interaction with their mobile database and can reach these customers anytime, anywhere via the consumer’s most personal device – the wireless phone,” says Beasley.
MessageLink also controls CrossLink’s “Txt 2 Buy” feature that enables consumers to purchase products directly from their wireless phone and makes every advertisement and communication with the consumer an immediate point-of-sale opportunity. With Txt 2 Buy, consumers don’t need to wait until they get online to place an order, nor do they have to wait on the phone for an operator to complete the order.
Beasley says the highlights of mobile marketing include the following potential payoffs for retailers:
Ø 1-to-1 interaction with consumers vs. mass communication
Ø Measurable results
Ø Increased store traffic
Ø Increased impulse buys
Ø 24 x7 x 365 access
Ø Ability to reach only those customers who have specifically asked to receive your offers. No more wasted advertising
DIALING UP URGENCY
Andy Nulman, CMO of Airborne Entertainment, a mobile marketing company that’s worked with major brands such as Taco Bell, Maxim Magazine, and the NHL, agrees there is a big opportunity for retailers to cash in on the immediacy that the mobile medium provides.“It’s not about technology, it’s about people. People are interested in finding deals. Mobile marketing is just getting off the ground…the time is right now.” Nulman builds his case for mobile marketing around the acronym NOW, pointing to the following strategies:
Nearby: “Customers need to be in your radius, close, local. Shoppers aren’t traveling very far for a pair of jeans.”
Only: “There has to be a limit. Create a sense of urgency for your campaign. Establish a relationship to create an addicted customer.”
Wow: “Make a compelling offer. Make consumers opt in for select communication. You want them to come sporadically.”
A few of the key benefits of mobile marketing Nulman points to include the local drawing power of mobile media and the urgency that is created by text messages. “It is also dynamic so that you can take action when you need to. Do you have an empty store? Do something about it,” Nulman says. He offers the following 5 strategies retailers can employ to take advantage of the rapid growth of mobile marketing:
1. The NOW Psst: “Limited time offers, but they need to be engaging and special. Target people near your location.
The Secret Sale: Things like in-store sales, or special offers. Having consumers text to a special number will provide them with a message/discount/coupon. It’s completely opt-in and there are no paper costs.”
2. Random Discounts: “For instance, have promos that allow consumers to text for specific discounts, coupon codes, etc.”
3. The In-store Experience: “Give the customer control of what they want. Get them additional information like the back-story on products. When you make products more people-oriented, like Gap’s Red campaign, it becomes personal, and people will want to buy. Let consumers feel like they have the inside scoop.”
4. The Countdown: “Let the shoppers know that time is running out to save. Text alerts like ‘Only ten pairs left’ with an image of the product. And do so whenever there’s a new number to report. This creates urgency and keeps the customer’s mind on the store.”
5. Develop WAP Sites: Create a mini website for people to view on their phone. Keep it simple with your company logo and plain text. This lets people know what’s going on in your store.”
Another point of value in the mobile phone is its capability to increase customer loyalty. Dustin Young, Vice President of Emerging Technologies at InComm, a leading distributor of stored-value gift and prepaid products with over 145,000 retailers, says there are three points of true value in utilizing the mobile phone as a CRM tool:
· Provide the retailer with a cost effective channel;
· Provide the consumer with a user-friendly way of accessing unique offers, like an abbreviated dial code;
· The ability of the merchant to tie coupons to existing vehicles of POS code
After seeing coupon redemption rates of 50% in its initial 12 test stores, Subway Restaurants recently expanded its “My Subway Mobile” campaign to more than 100 locations. The chain is now offering a dozen different promotional offers to more than 5,500 customers through the program, which is managed using a service from Modiv Media.
In another recent indication of the power of mobile marketing, Papa John’s Pizza recent Super Bowl campaign, “TEXTRA Points for Pizza,” drew over 115,000 registrants who were looking to score super discounts on pizza based on the final outcome of the big game.
While many of the early success stories around mobile marketing have been in the QSR sector, industry analysts suggest there are significant opportunities for other retailers to get in on the mobile action.
“The possibilities for mobile marketing are endless,” says Brad Beasley, president of CrossLink Media, a mobile marketing company offering both messaging and Bluetooth ad-serving software. MessageLink, the company’s proprietary messaging system, executes mobile campaigns via a secure online interface that enables clients to log in and create, modify, and deploy within minutes.
In addition, MessageLink provides a fully automated CRM solution offering additional information and request follow-up communication. “MessageLink provides a great CRM tool as clients now have immediate interaction with their mobile database and can reach these customers anytime, anywhere via the consumer’s most personal device – the wireless phone,” says Beasley.
MessageLink also controls CrossLink’s “Txt 2 Buy” feature that enables consumers to purchase products directly from their wireless phone and makes every advertisement and communication with the consumer an immediate point-of-sale opportunity. With Txt 2 Buy, consumers don’t need to wait until they get online to place an order, nor do they have to wait on the phone for an operator to complete the order.
Beasley says the highlights of mobile marketing include the following potential payoffs for retailers:
Ø 1-to-1 interaction with consumers vs. mass communication
Ø Measurable results
Ø Increased store traffic
Ø Increased impulse buys
Ø 24 x7 x 365 access
Ø Ability to reach only those customers who have specifically asked to receive your offers. No more wasted advertising
DIALING UP URGENCY
Andy Nulman, CMO of Airborne Entertainment, a mobile marketing company that’s worked with major brands such as Taco Bell, Maxim Magazine, and the NHL, agrees there is a big opportunity for retailers to cash in on the immediacy that the mobile medium provides.“It’s not about technology, it’s about people. People are interested in finding deals. Mobile marketing is just getting off the ground…the time is right now.” Nulman builds his case for mobile marketing around the acronym NOW, pointing to the following strategies:
Nearby: “Customers need to be in your radius, close, local. Shoppers aren’t traveling very far for a pair of jeans.”
Only: “There has to be a limit. Create a sense of urgency for your campaign. Establish a relationship to create an addicted customer.”
Wow: “Make a compelling offer. Make consumers opt in for select communication. You want them to come sporadically.”
A few of the key benefits of mobile marketing Nulman points to include the local drawing power of mobile media and the urgency that is created by text messages. “It is also dynamic so that you can take action when you need to. Do you have an empty store? Do something about it,” Nulman says. He offers the following 5 strategies retailers can employ to take advantage of the rapid growth of mobile marketing:
1. The NOW Psst: “Limited time offers, but they need to be engaging and special. Target people near your location.
The Secret Sale: Things like in-store sales, or special offers. Having consumers text to a special number will provide them with a message/discount/coupon. It’s completely opt-in and there are no paper costs.”
2. Random Discounts: “For instance, have promos that allow consumers to text for specific discounts, coupon codes, etc.”
3. The In-store Experience: “Give the customer control of what they want. Get them additional information like the back-story on products. When you make products more people-oriented, like Gap’s Red campaign, it becomes personal, and people will want to buy. Let consumers feel like they have the inside scoop.”
4. The Countdown: “Let the shoppers know that time is running out to save. Text alerts like ‘Only ten pairs left’ with an image of the product. And do so whenever there’s a new number to report. This creates urgency and keeps the customer’s mind on the store.”
5. Develop WAP Sites: Create a mini website for people to view on their phone. Keep it simple with your company logo and plain text. This lets people know what’s going on in your store.”
Another point of value in the mobile phone is its capability to increase customer loyalty. Dustin Young, Vice President of Emerging Technologies at InComm, a leading distributor of stored-value gift and prepaid products with over 145,000 retailers, says there are three points of true value in utilizing the mobile phone as a CRM tool:
· Provide the retailer with a cost effective channel;
· Provide the consumer with a user-friendly way of accessing unique offers, like an abbreviated dial code;
· The ability of the merchant to tie coupons to existing vehicles of POS code
Thursday, January 17, 2008
Office Max "Elf Yourself" Final Results Are In
By Amanda Ferrante, Assistant Editor
Even if you didn't create your own Elf on ElfYourself.com this holiday season, you probably opened your inbox to the big hit that infiltrated pop culture with a huge viral impact.
Elf Yourself 2007
The Elfin' Impact from 11/20/07 to 1/2/08 :
- Over 193 million site visits
- Over 123 million elves were created
- 60 elves were created per second
- Users spent a combined average of 2,600 years on the site
- Ranked #51 most visited website on the web (HitWise Intelligence)
- Ranked #1 on "Movers & Shakers" (Alexa Rankings)
- Ranked as top 1,000 website in 50 countries (Alexa Rankings)
- Featured on CNN American Morning, ABC World News, Good Morning America , The Today Show, TNT Sports News, Fox News, & Rosie O'Donnell's blog.
Elizabeth McDowell, Publicist for EVB San Francisco, the co-creator of "Elf Yourself," says "The success is in part due to three fundamental characteristics 1) Keep it Simple 2) Make it Personal and 3) Give People a Reason to Pass it on."
Discussions for a 2008 version of last holiday season's favorite online activity are underway.
Even if you didn't create your own Elf on ElfYourself.com this holiday season, you probably opened your inbox to the big hit that infiltrated pop culture with a huge viral impact.
Elf Yourself 2007
The Elfin' Impact from 11/20/07 to 1/2/08 :
- Over 193 million site visits
- Over 123 million elves were created
- 60 elves were created per second
- Users spent a combined average of 2,600 years on the site
- Ranked #51 most visited website on the web (HitWise Intelligence)
- Ranked #1 on "Movers & Shakers" (Alexa Rankings)
- Ranked as top 1,000 website in 50 countries (Alexa Rankings)
- Featured on CNN American Morning, ABC World News, Good Morning America , The Today Show, TNT Sports News, Fox News, & Rosie O'Donnell's blog.
Elizabeth McDowell, Publicist for EVB San Francisco, the co-creator of "Elf Yourself," says "The success is in part due to three fundamental characteristics 1) Keep it Simple 2) Make it Personal and 3) Give People a Reason to Pass it on."
Discussions for a 2008 version of last holiday season's favorite online activity are underway.
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