Today's Wall Street Journal tells us that Target "... is tired of being used." In an article discussing a concept called "showrooming," where shoppers come into a store to see a product in person only to buy it from an online rival - typically at a lower price, Target is asking its vendor partners to create special products for the banner that shield it from price comparisons.
Online sites like Amazon.com pose a significant risk to retailers like Best Buy to Barnes & Noble. The article reports that this years holiday season saw an average 4.1% jump for brick and mortar stores while on line sales jumped 15%. Target's sales were particularly disappointing in electronics, books and movies – all categories that have made a significant shift to online sales.
It appears that Target's vendors may have little choice but to play along because of the second largest discount chain's clout. For a shopper marketing agency like birdsong gregory, this just highlights more opportunities to mine the path to purchase for consumer insights that may benefit our online and B&M clients.
Recently there has been a lot of buzz around location-based marketing initiatives, such as Foursquare. These consumer-popular applications allows users to "check-in" at venues or retailers and share their current location with their social networks. In return, these apps give retailers insight into who is visiting their location and when. Marketers also gain access to communicate directly to consumers at their point of purchase.
An article in the October edition of Shopper Marketing Magazine highlights this recent shopper technology trend and its evolution into a new service called geo-fencing. According to the article, "a geo-fence is a virtual perimeter around a real-world area. When people enter that area, their mobile device alerts an app or a service that triggers the delivery of a message" to those who have opted-in.
The outdoor outfitter company, The North Face, has been one of the first companies to test out the budding technology. The North Face used geo-fencing to send tailored messages to consumers when they enter into targeted areas such as hiking trails, sporting events and local retailers. The North Face is using the technology to alert subscribers to local offers, closest retail locations and suggestions for useful gear when they are in the ideal shopper mindset.
Geo-fencing is still a developing technology with a great deal of potential for future customizations that can fit the needs of any brand. Geo-fencing seems to be a great new addition to the ever-growing list of ways marketers are able to influence the shopping experience by reaching their target audiences with the right message, at the right time and in the right place.
We are officially in the middle of shopping season. Terms like Black Friday and Cyber Monday are not only part of our vocabulary, but are increasingly how we search for deals. According to a recent MediaPost article, the search term "Cyber Monday" led all google.com search terms, jumping 120% from last year. "Black Friday" rose 60%.
While it is not news that consumers shop more and spend more during this time of the year than any other, what is news is how we are shopping. This year, more than any other in history, consumers shopped differently. Consider these statistics from this week:
PayPal saw a 511% increase in mobile payment volume on Cyber Monday vs. last year.
17% used a mobile device to visit a retailer's site.
10% used a mobile device to make a purchase.
5% of mobile traffic came from the iPad.
Year to date, online retail purchases are up 16%. All of this points to a healthy start to the holiday buying season and more, illuminates the continued adoption of mobile as a critical shopping tool.
Shoppers are multi-channel creatures of purchase and smart phones are their multi-functional swiss army tool of choice. Shopper behavior has forced retailers to stretch their offerings across channels in order to enhance shopper engagement. Retailers have started to focus on creating a seamless and similar shopping experience regardless of which channel shoppers are engaged.
What does all this mean?
Shopper technology, that is, technology that enhances the shopping experience, has to be a focus for marketers.
Digital Shopper Marketing strategies and insights are increasingly critical for retailers and manufacturers.
Organizational silos that separate online and in-store need to be unified under a renewed focus on shopper experience.
Mobile executions need to consider context. Reapplying traditional or web programs is cutting your effectiveness short.
The brave new world of the integrated, informed consumers is here. How have you adjusted your engagement with them?
If you've never heard of Martin Lindstrom, then you probably don't work in shopper marketing (like the folks here at birdsong gregory). He's the author of six highly insightful and well written books about consumer behavior and retail branding, including one of my personal favorites, Buyology - Truth and Lies About What We Buy. He also recently made Time Magazine's "100 Most Influential People" list.
He wrote a great shopper marketing article recently for Time based on one of his invaluable blog posts. The big premise?
The next time you go grocery shopping, take a look at the signs, the type of flooring, and even the carts. Everything has been designed with an eye towards getting you to grab those three cans of something that was not on your list.
Martin spent some time at a huge "shopper research" facility outside of Chicago (run by a big consumer goods company), where test shoppers spend hours pushing carts through what, to the untrained eye, looks just like a real grocery store. Of course, to the shopper marketers, consumer anthropologists, and other pointy headed brand geeks back in the control room hovering over a bank of glowing video monitors, every detail is carefully analyzed and tweaked. From the type of flooring (people move more slowly over parquet than linoleum) to how special deals are formulated on in-store price signs (using an actual dollar sign decreases the probability of purchase), it's a fascinating look at what goes on behind the shelf.
The Windy City certainly lived up to its name during the annual Shopper Marketing Expo this month in Chicago. We were buffeted by winds up to 55 miles per hour. Fortunately most of my time was spent indoors at the historic Navy Pier. The Expo brings together the brightest minds in the shopper marketing space and serves as an opportunity to share best-in-class examples of practical applications at retail. During one of the dinners I was seated next to a senior brand manager from Kimberly-Clark and we toasted each other for being fellow Gold Hub Prize winners. His team won for work related to Kotex and Poise feminine care products. It was gratifying to realize that our young, agile studio in Charlotte is competing at the level of national and international brands like Kimberly-Clark and their agency partner JWT/OgilvyAction. As we like to say, sometimes the biggest ideas can come from the smallest agencies. Learn more at www.birdsonggregory.com
The technology tipping point is here. More phones are sold than computers, becoming the preferred way to connect and compute in the twenty first century. Nielsen estimates that smartphone penetration will be over 50% by the end of 2011. With the increased adoption there is enhanced integration of technology into everyday life. And more strikingly, in shopper behavior.
55% of smartphone users believe the shopping experience is more enjoyable thanks to smartphones (Internet Retailer).
73% of shoppers would rather use their phone than talk to a sales associate (Internet Retailer).
41% of iPhone owners have made a purchase from their smartphone
These are not just shifts in behavior. They are step changes in beliefs. This is not just about digital shopper marketing. The conversation is no longer about adoption. It is about adapting marketing strategies and tactics to harness the power of this technology for your business.
So how should you adapt? Your customer should be your starting point, not technology. Watch how they are and are not using technology today. Look at trends that will continue to evolve their behavior tomorrow. Find opportunities to provide value beyond the realm of just your products. Just like shoppers have integrated technology into their experience, so should you look for ways to holistically integrate technology into your plans. Not just as the strategy, but as a way to better connect your strategy to your audience. Want to learn more? Visit www.birdsonggregory.com
This is a quick peek inside the refreshed Bloom Grocery store. This showcases just a part of the work that earned shopper marketing agency birdsong gregory a Gold Prize for excellence in the retail environment from Hub Magazine.We introduced new graphics and merchandising efforts in key departments to amplify the new product offering and improve the shopping experience. See more of this work at www.birdsonggregory.com
Retail associate are a personification of your brand. They are front line brand builders or brand breakers. They have a direct impact on your store's shopping experience.
This is a reality that spans retail channels - how associates choose to interact with your customers will form an impression of your brand. Whether shoppers are looking for a product recommendation, need help navigating the store or seeking information, when your associate doesn't take the time or have the answer, you are missing a critical shopper engagement opportunity.
Sadly, we all have examples of bad retail associate experiences. It is an unfortunate retail reality these days. But think about your recent positive associate interactions. What was common about these experiences? I would argue good retail associates are like bartenders. A good bartender engages you and seeks to understand what you want. They are ready to make a product recommendation if you aren't sure what you are having - based on understanding inventory and market trends. They know their tip is directly related to the level of service they provide and as such, they put service before product. They have the background knowledge to make what you need and the empowerment to deviate from a specific menu item to make you happy. There is follow up to make sure you have what you need.
For all the focus put on marketing, don't forget the most important contact point you have with your shoppers. How are you empowering them to build your brand with customers? Maybe it is time to start viewing your associates more like bartenders.
We've often said that at birdsong gregory we're more interested in delivering results for our clients than winning awards, but every once in a while the two come together nicely. We were just informed that the collection of work we developed to relaunch the Bloom Grocery Brand has been awarded a Gold Prize from the annual Hub Magazine competition honoring excellence in the retail experience. Our peers in the Gold category include international brands like Disney, Coca-Cola and Proctor & Gamble. And their agencies partners are some of the biggest names in the Shopper Marketing space. It just goes to show you that you don't need a big shop for big ideas. The top Gold winners are competing for the best-of-the-best Hub Cup via on line voting through September 14th. Click here to vote for Bloom.
After reading a recent article in The Times about Google Goggles, I was struck by how rapidly the world of digital shopper marketing is evolving. Google Goggles is a mobile app that uses image-recognition software to decipher landmarks, text, book and DVD covers, artwork, logos, bar codes, wine labels. etc.
Comparison shopping has never been easier, now that you can snap a quick pic of a book’s cover while in store and almost instantly check the price and reviews on Amazon, but the mind races to fathom all the opportunities a good image recognition app could offer a retailer or consumer brand. Here are a couple:
• Massively successful European billboard advertiser JCDecaux is launching an image recognition iPhone app called U snap. Users can take pictures of JCDecaux posters and billboards – which the app will recognize, and provide access to extra content. Several major brands including Orange and Lancome have already signed on, and the app is planned for Android and Windows launches as well.
• Amazon Mobile includes the “Amazon Remembers” feature, which allows you to take a picture of any product, and (using the Mechanical Turk service identify the product and put it in your wish list. This isn’t real-time yet, but several product categories (movies and books) are already automated.
• Layar is one of many popular augmented-reality apps on the AppStore which allow you to see the iPhone’s camera output in real-time, with supplemental data overlaid on it. For example, take a picture of street you’re walking down to see what stores lie ahead.
While f-commerce continues to lead the digital shopper marketing push for retailers and manufacturers, it is quickly becoming obvious there are critical differences between f-comm successes and duds. From a recent NY Times article, Doron Simovitch of SortPrice offers 7 f-comm tips:
Engage users creatively (and consistently) with likeable wall posts to support your f-commerce offering
Provide exclusivity with promotions, discounts and sales that are exclusive to your Facebook fans
Attract new fans with added incentives with one-time promo codes, coupons or discounted shipping for those Liking your page
Solicit input by asking your fans directly how you can improve the f-commerce experience
Make Facebook a PR tool with wall posts that provide news beyond retail – such as charitable and community service initiatives
Incorporate Facebook into Customer Service by enabling customer product reviews, a forum to share shopping experiences, and proactively, publicly and transparently addressing customer concerns
Keep an eye out for new features and tools with new f-commerce tools such as flash sales, group-buy offers, and contests – designed to may the f-commerce experience more fun and social
While there is benefit for brands to have a f-comm presence, it is important to ensure your strategy reflects the unique opportunity the Facebook shopping experience provides. It is not just another commerce outlet - it is an opportunity to engage your audience, allow them to interact with your products through unique offers and provide compelling incentives to purchase and share.
One of the more interesting bits of information coming out of the recent announcement of Apple's retail leader Ron Johnson going to JC Penney are insight into Apple's retail "secrets." While it is too simplistic to assume a short list of secrets are all you need to unlock your retail potential, there is much to learn from Apple's approach to retail.
As retailers and manufacturers know best, your front line is where the interaction with the shopper happens. It is where impressions are made, brands are built and products are sold. And yet, even with all the complex training and engagement strategies this is one of the biggest industry weaknesses. Given this, Apple took a KISS (keep it simple, stupid) approach to employee engagement - bringing their philosophy to life through an acronym. A: Approach customers with a personalized warm welcome. P: Probe politely to understand all the customer's needs. P: Present a solution for the customer to take home today. L: Listen for and resolve any issues or concerns. E: End with a fond farewell and an invitation to return."
What a great reminder that retail marketing requires as much simplicity as it does strategy.
This video explains Facebook commerce (f-comm) in a pretty simple way. As shopper marketing expands beyond the walls of traditional retail to include digital shopper marketing, the fundamentals of understanding shopper behavior to create a positive shopper experience is still critical to retail success.
While brands and retailers are still trying to figure out how to use Facebook, this video proves there is a lot of opportunity for creating meaningful shopper engagement through social media.
Looking for a partner to help you determine if you should enter f-comm or help you differentiate your f-comm from your m-comm? Reach out to bg - we believe not all comms should be treated equally. In this digital age, we are an equal comm opportunity shop that loves helping clients navigate the new world of retail activation.
As retail marketing evolves, talking about how retailers are changing has been easy. I have already spent time contemplating the role of retailers and talking about how they continue to evolve.
What hasn't seen as much evolution is the role of manufacturers in all of this change. The creators of brands and products now find themselves competing with their retailers for shelf space and dollar share. Even worse, as retailers evolve their brands, manufactures now compete with retailers for shopper share of mind as well.
While this is not to say that manufacturers have been sitting back or standing still, retailers have led this round of evolution with manufacturers observing and learning. Why? For one, manufacturers have more to lose as they risk angering retailers by sidestepping retail outlet to sell direct to shoppers. And yet, as brands seek to stay relevant, it is essential to be where their customers are.
Which brings us to Facebook, the worldwide phenomenon that it is. Based on the scale of the audience and share of time Facebook continues to amass globally, manufactures have been dipping their toes in the water, testing out different f-comm (Facebook commerce) models. P&G has just announced the creation of new Facebook commerce pages for Tide, Gillette, Olay, Gain, Covergirl, Luvs and Febreeze, complete with product information and purchase capabilities.
P&G is viewing these pages as "live learning labs," further ways to garner shopper insights and e-comm experience. While it will be interesting to see how this evolves (will this be the tipping point for other manufacturers to dive into f-comm) what remains to be seen is how shoppers will respond. While it may be convenient to purchase products on facebook, mixing friends and brands has yet to prove a sustainable business for most manufacturers.
As reported recently in The Wall Street Journal, the once staid barcode is suddenly getting a bit of flair. It seems that granola, juice and olives packaging are sporting barcodes that integrate famous buildings, blades of wheat and bubbles into the ubiquitous black and white rectangle of lines and numbers. This evolution of package design to include the barcode is a way for consumer-goods companies to better connect with customers. And while the the trend is popular with smaller companies, even one of the world's largest food companies, Nestle SA, is trying out vanity barcodes on its smaller brands.
The Journal reports, "Barcodes are what allow retailers to track products through their stores and change pricing without needing to retag every item. Every retail barcode number in the U.S. and 107 other countries is assigned by GS1, a nonprofit standards organization created in the early 1970s when barcode technology entered the retail landscape. A company applies to GS1 for a barcode number specific to that company. It then creates (or hires a firm to create) the barcode to match that number."
Do you have a novel vision for your next barcode? Contact Shopper Marketing agency birdsong gregory and let's chat.
Are retail employees supposed to sell products or help shoppers?
A retailer's lifeblood is sales and therefore every retail employee needs to sell products. Your retail marketing should be oriented to sell-through. But there is a difference in the answer to this question that results in a short term (sales) or long term (service) focus.
Apple's retail stores are as oriented towards service as they are sales. In fact, a quote from their training manual reinforces this: "Your job is to understand all of your customer's needs - some of which they may not even realize they have."
Said another way, your job is to help shoppers. And through that help, based on having relevant products, the solution could be a sale. But the employee's focus is not a sale, and as a result, Apple's stores provide a richer shopping experience.
Digital Life on Today posted an article this week about a very novel use of QR codes for marketing. While it seems that some people wear their passion on their sleeve, Jessica Stuart had hers printed on a silk-and-linen dress.
Described as a "... bigtime-TV-producer-cum-digital-entrepreneur." Stuart started a firm that specializes in "short form, multi-use content," and she provided a demonstration of what that is than at the recent Webby Awards. A winner of two awards for a video she created for the Elizabeth Glaser Pediatric AIDS Foundation, she wore a dress that was printed with QR codes that played the video when the the codes were scanned by those attending the event, by using their smartphones.
QR codes are mobile bar codes that are just starting to bubble up in mainstream commercial ventures. With QR — which stands for "quick response" — codes, shoppers can use their cellphones to swipe the code to buy items, shop or even watch product videos.
The codes "are popping up not only at hipster events like the annual South by Southwest music and digital conference and festival in Austin, Texas, but also in mainstream corporate marketing," noted Jonathan Blum in a recent Entrepreneur.com article. "TAG Heuer, Macy’s, and the car-maker Mini now sell using QR codes. Some uses seem rather mundane: Retail giant Sears went as far as to place QR codes in a recent mass-market tool catalog.
The world of commerce has exploded, expanding from the traditional store to include e-commerce (internet), s-commerce (social) and m-commerce (mobile). Pour on the fuel of personal payment options (Paypal, Google, Facebook, Square, clearXchange, etc) and you have a multi-dimensional retail marketing revolution that is no longer bound to place or time. What an awesome time to be a growing shopper marketing agency!
The above info graphic from Microsoft's Tag does a great job of bringing to life the adoption of m-commerce.
What is creative effectiveness? How do you judge it?
While these are relevant and important questions to ponder, they have been asked and answered countless times in countless ways. Interestingly, the famous international advertising award show Cannes has just (finally) announced their intention of bringing the perspective of effectiveness into their judging. The new Creative Effectiveness award will be judged 50% based on sales results the creative delivered, while the other 50% will be made up of strategy and the idea. While long overdue, this is a sign of the times we marketers must embrace. Marketing spending is crunched. Technology is bringing about constant change. Results and measurement can no longer be an afterthought. Shopper scrutinizes every product decision. Retailers are building private brands to compete for every dollar.
It is the new reality and in this reality, creativity that embraces the challenge to evolve will thrive. This new reality evens the playing field, forcing agencies to embrace change. It favors the nimble and the curious - regardless of size. It is in this new reality that bg thrives. While we bring a heritage of creativity, we are purpose built to connect our strategy with best in class execution vendors.
As a retail marketing focused shop, the idea of creative effectiveness is not a new one. We firmly believe that the strategy, the resulting idea and ultimately the creative output must leverage shopper insights. Why? Because without an understanding of your audience, their needs and resulting behaviors, you are creating noise. And in today's noisy economy, who wants to spend marketing dollars on noise? Not our clients.
So what is creative effectiveness? It is about creating relevant work. Work that embraces and thrives in today's new marketing reality. It is work we love developing and delivering for our clients.
Because we're social animals. That's why. And no matter how fast a network we have at home. Or however many QVC channels. Or how convenient it is to order a kayak while wearing pajamas, just because it's increasingly easy to shop online, doesn't mean we'll stop going to the mall.
Indeed, for most retail sectors, a physical store can serve a fundamentally different function, giving consumers the ability to see, taste and touch the products in a way that is impossible online. Think of prime retail spaces like an Apple Store. Or Nike Town. Or the Disney Store.
The shopper marketing challenge for retailers in the future will be to figure out a way to play up the strengths of a bricks-and-mortar store while incorporating new technology and consumer trends into the experience. From interactive video screens to a smaller, carefully cultivated selection, here's an interesting article from The Streetabout ways that retailers can remain relevent as online commerce continues to grow.
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