In one of the better recent articles focused on OMNI-channel retail strategy, this article from HBR really hit home for me. It outlines a research-driven process for testing several hypotheses about merits of OMNI-channel. In short, getting shoppers to buy online had a negative effect on retail profitability. However, getting online shopper to buy in-store gave a major boost to profitability. Perhaps the article is biased toward brick and mortar, but not blindly so. There are some good insights into what criteria make for more profitable channel shoppers, including a shopper’s proximity to the store. The conclusion I drew from this was that if retailers can win shoppers in any channel, go for it. But if they can get online shoppers to go in-store, they will boost margins and sales. That’s why ship-to-store is the best OMNI-channel strategy to capture this online to offline customer behavior.
In a recent article by AdAge, a variety of companies shared their approach and desire to use purchase-based data to enhance targeting of digital ads, specifically by CPG brands. Epsilon, Acxiom, Datalogix among others are referenced. Lots of talk around high-level trends, but not as much discussion around what specific data is being used, where it comes from and how marketers are using it. Devils always in the details.
I read a post from Seth Godin recently focusing on the fatal dilemma of focusing on the urgent matters often in lieu of important matters. He puts it in simple English what the perceived versus real trade off is between the two. I venture to guess that he is suggesting to focus on the important item that can impact the long-term and help avoid the urgent. Sometimes you can’t, which means that it’s a matter of time management and prioritization so we don’t focus exclusively focusing on putting out fires versus figuring out how to prevent them in the first place.
The retail industry, specifically large brick and mortar retailers, is continuing to struggle against fierce competition and changing consumer tastes. This article highlights some specific reasons why Macy’s, KOHLS, and JCPenney have suffered and have closed stores as a result. Malls continue to see traffic shortfalls, and large anchor tenants like these retailers suffer proportionately. Plus, lower pricing and availability of trendy merchandise elsewhere for retailers with faster supply chains make it hard for these big guys to compete. Troubling trend and not sure there is an end in sight. Check out the full article for some details I missed.
Pretty interesting take on change management Here. Although I think that it’s missing some relevant information and observations of why certain people reject change more than others. Plus, not all individuals want growth, which breeds uncertainty. Some people like stability and predictability, which I believe are fundamentally different than change and growth. Enjoy!
Here is a great article breaking down the differences and details of what makes Comscore and Quantcast unique from Google Analytics and others in the online audience measurement arena. I found the description very informative and objective. I’m a huge fan of both companies and always interested in understanding what’s going on “beneath the hood.” You can check out the full post here.
There are so many articles and books written on the subject of entrepreneurship. Most are fluffy and overly positive. Few focus on the negatives, challenges and issues that most entrepreneurs face. This is one of the rare articles that is raw and honest. It hit home for me and likely for most, so I figured I’d share. Check it out here.
Kantar Research has published a report sharing that Kroger, Walmart and Walgreens are the leaders in their categories in terms of the increase in digital coupons offered on their respective websites. The study references digital coupons as a critical pre-shopping planning tool for customer before they go to the store. Retailers that offer digital coupons will engage shoppers and ensure those shoppers plan online and do their shopping inside that retailer’s physical stores. This online-to-offline trend is not new, but is certainly growing in popularity among marketers and consumers.
No big surprise here. Based on a recent survey, MediaPost announced that 45% of consumers want real-time mobile offers while they are inside a retail store. So it’s not quite the majority, but it’s close. I’m somewhat surprised so many consumers want to be bombarded with messages while shopping. I guess if the messages have a coupon to save you money, sure, bombard away… The most surprising trend is that acceleration of mobile promotion adoption by consumers. It’s happening faster than most analysts expected…
In a big splash article in AdAge, found here, P&G CEO announced a shift in strategy to focus more on sampling for many of its key brand franchises. He cited a loss in market share as well as a huge opportunity to increase the number of households that haven’t yet used many of P&G’s leading consumer brands. Sampling is a go-to strategy for most CPG marketers, and P&G has certainly done this for a long time. What’s new is that they are talking about spending less on traditional media and shifting that budget to digital channels and activities like sampling.