With almost 100 million people using mobile coupons, it’s clear the trend has continued for mobile adoption and overall adoption of coupons in general. The story and study by media post and Koupon Media shares some interesting insights. It’s not as simple as people using paper less and mobile more. People are using coupons more in every vehicle. Mobile is growing for coupons albeit at a rate less than mobile advertising or commerce ironically. One needs to ask why…
Archive for Retail
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.
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.
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 recent RevTrax blog post, found here, we spoke about the power of promotion CRM for brands and the implications of smarter coupons tracked at the household level for both better consumer research and insights as well as better retailer collaboration. If brands, for the first time, now know which offers specific households are redeeming at specific retailers, this data opens up a ton of additional marketing and targeting opportunities, as well as activation opportunities between brands and those key retailers. Read on…
It seems people love to hate JCpenney these days, blaming the lack of recovery in performance on “the prior strategy” of Ron Johnson, who tried to transform the company by eliminating coupons, deals and discounts and good with an everyday low price. The logic was sound. Except I’m guessing nearly impossible to pull a 180 in a company’s merchandising strategy from hi-Lo (promotional) to EDLP (everyday low price). Retraining the entire generation of customers was a near impossible feat.
In a great white paper by the management consulting firm ATKearney, their retail experts use some compelling data to make the argument for brick & mortar stores at the heart of the future retail model. The data don’t lie. People still spend most of their shopping time, and money, inside a physical store. Mobile and Web commerce are definitely creating additional selling opportunities, but the nature of those purchases tends to be much more of a needs-driven purchase motivated out of convenience and speed. Check out some of the great analysis in the report and decide for yourself whether physical retail is down and out.
I just read a really interesting article from The Retail Experience newsletter that covered the controversial and elusive concept of Value-Pricing. Many folks think about retail value-based pricing as charging different prices to different customers based on their perceived value of the same product. It’s great in theory but difficult in practice. Furthermore, issues around consumer privacy and misleading advertising could prevent value-based retail pricing from being put into practice. On the other hand, online retailers are adjusting prices all the time based on fluctuating inventories, time of day and how much the competition is charging. The big question is do you pay higher prices on Amazon than the next customer. If you found out, you might love Amazon a little less… Check out the entire article here.
I’ve been very interested in the different types of devices consumers use to shop, browse, and engage with retailers. Ironically, some data shows mobile apps are preferred by consumers for better user experience that only an app can provide. However, other data show that users prefer mobile websites. I’m confused at the comparison. One comparison is on volume of visits/usage. The other is quality of user experience. The volume is on the mobile web it seems, but the user experience is better on apps. Why do consumers purchase more on mobile websites than on retailer mobile apps if the experience on apps is so much better? I’m not sure, but it doesn’t seem there is an explanation. Check out part of the debate that Mediapost covered.