M-Commerce Gains Traction

Posted on November 15, 2010 by aposner

Reaching your customers via their mobile phones – wherever they are – combines convenience and urgency.

Shaun Ryan reports in the E-Commerce Times that U.S. mobile commerce sales hit US$1.20 billion in 2009 and will grow to $2.42 billion this year, according to Coda research consultancy. This is great news for online retailers that are prepared to meet this rapid revenue increase.

Another recent survey from Shop.org reveals that despite the growing popularity of mobile commerce, 62 percent of retailers have either not yet begun or are only in the early stages of planning a mobile strategy.

Mobile phones don’t have a lot of browsing real estate, so it’s important to carefully configure your mobile website for ease of use and to remember that mobile connections are slower, so keep sites pared down to the basics. Search features are critical, According to writes Jakob Nielsen, a Web usability expert “Today’s mobile users are highly search-dominant”.

There is tremendous benefit to be gained by retailers who embrace the technology and pay close attention to ease of use and their customer’s m-commerce behavior.


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Mystery Shopping – a Real Value or a Real Bust?

Posted on November 11, 2010 by drich

Mystery shopping is the program everyone loves to hate. Yet, it’s the only real objective retail tool available. Why is it so disrespected? Because its’ often misunderstood, poorly implemented or improperly used. Mystery shopping tells you exactly what’s happening in your stores including how employees are performing, how your displays look, how clean your stores are, how bathrooms are being maintained, how long someone waits to pay for a purchase. You work tirelessly to get it right at the corporate level, but how do you know your plans, goals and training are being properly and effectively implemented in your stores?

When done right, Mystery Shopping is a tremendous asset for retailers. Results can be used right away to improve the customer experience and to motivate employees, optimize resources and improve operations in every way. Sound big? It is. Mystery shopping is observational research at the business level and like any research, you have to know what data needs to be gathered and how to best interpret and use it. Without these metrics in place and properly carried out, the value is questionable. And like most things, something done poorly is usually worse than not doing it at all.

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Using Innovative Technology to Boost Sales

Posted on November 8, 2010 by aposner

Shopping online has become commonplace for the American consumer – but there’s more than one new approach to making more sales – online and at brick and mortar locations.

With the season that for many retailers is ‘make-or-break’ rapidly approaching, many retailers are trying fresh approaches. Mobile shopping apps are gaining popularity, allowing retailers to send offers directly to shoppers’ phones with the aim of reaching those buyers when they’re within a short walk or drive of the stores.

About 33 percent of retailers plan to have “location-based marketing” technology in place by year’s end, up from almost nothing a year ago, according to the National Retail Federation.

Two months ago, The Gap offered coupon for a 24-hour window through the popular site groupon.com. Shoppers could buy half-price shopping vouchers for everything from jeans to trendy messenger bags.

“At one point more than 1,200 people a minute were snaring the coupons, so many that the site that arranged the “flash” sale had to redirect some shoppers and tell them to come back later. But by day’s end, almost 450,000 potential customers had bought into the deal” reports Jen Wieczner in SmartMoney Magazine.

That’s tantamount to having an entire city line up to make purchases at your store and makes understanding and embracing the new technology well worth the time and effort.


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Give Customers Exactly What They Want

Posted on November 1, 2010 by aposner

That’s precisely what the new online shopping site Plum Willow is hoping to achieve by working with teenage interns who are telling them what they like and why. Savvy and resourceful, these teens have their finger on the pulse of a group that has considerable retail purchasing power.

“They definitely aren’t shy about telling us what they like and don’t like,” says Lindsay Anvik, director of marketing at PlumWillow, who helps oversee the internship program at its offices in Manhattan.

Flexible, web-based companies aren’t just creating products and services based on customer preferences – they’re making their target market part of the design and marketing process reports Susan Etlinger, a consultant at the Altimeter Group, which researches Web technologies and advises companies on how to use them.

Moving beyond “the old-fashioned focus group and into co-creation with your demographic is something that will happen more in the next couple of years,” Ms. Etlinger says. “All business will have to learn how to cope with a new generation of users that are used to their particular experience of the Web.”


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Macy’s Shakes it Up

Posted on October 28, 2010 by aposner

Macy’s has a new approach to keeping things fresh. Their ‘Impulse’ department will rotate designers every two months. They’re working with top international designers to create lines especially for their stores.

The Impulse department targets younger shoppers and prices will range from $50-300. “This customer loves to shop,” said Jeff Gennette, the chief merchandising officer of Macy’s. “She wants to be in our store all the time, and we’d better be interesting.”

The first designer featured will be Kinder Aggugini, well know on the London runways, but virtually unknown in the US. The New York Times reported that Mr. Aggugini was enticed by the notion of creating something affordable that still felt like a runway collection — draped dresses in washed silk paired with a tailored military or leather jacket, for example — especially for shoppers who may have never heard of him. “How cool,” he said. “Something that sells on the strength of what it is, rather than who I am.”

Among many other, it works for Martha Stewart at Home Depot and Isaac Mizrahi at Target, why not at Macy’s?


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Amazon Breaks New Ground – Again

Posted on October 25, 2010 by aposner

Amazon expert and staff writer for TechFlash Eric Engelman reports that the online retail giant was just granted a patent for ‘environmentally conscious electronic transactions’. The patent envisions a system in which customers are given “a shipping option that might not be as fast, and might be more expensive, but that is more environmentally friendly in at least one way.” It also suggests letting people buy carbon credits to offset the emissions generated by the packaging and shipping of their purchases.

Who would have thought you could patent slower, more expensive shipping? The patent covers many consumer options including the option to have products shipped in smaller boxes, have items packaged together and using a shipping company that has a deliberately smaller carbon footprint.

Some of these shipping options may take longer and/or cost more, but Amazon apparently sees a market niche it can fill. It might just be the answer for people who don’t like all that Styrofoam floating around. We’ll keep an eye on how these new options are implemented and how the public responds.


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Holiday Season 2010

Posted on October 22, 2010 by aposner

Consumers are most interested in value and price this holiday season. Spending is up and so is bargain hunting. The National Retail Federation is forecasting holiday sales will be the best in four years. Some sources report the numbers might be stronger for online than for brick and mortar locations.

According to NRF chief economist Jack Kleinhenz, retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts,”

Colin Sebastian of Lazard Capital Markets is predicting e-tail growth of 10-15 percent this holiday season but also warned that customer acquisition costs could go up as well since more and more shoppers tend to begin their online shopping on search engines and marketplaces.

Retailers can position themselves to benefit from shoppers caution by responding to the interest in low prices. Consumers also noted that they favor the retailers that offer a broad selection of product choices.


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A New Twist on Geo-Targeting

Posted on October 20, 2010 by aposner

The North Face, the outdoor and apparel retailer is testing a new geo-targeting strategy known as ‘geo-fencing’. Customers can opt-in to receive ‘auto check-in’ service which allows North Face to send an SMS message via a smart or standard cell phone. Essentially, users are opting to be identified when they arrive and leave certain areas.

When customers opt-in to the “Summit Signals” program, they automatically receive SMS offers once they are within a 1.5 miles radius of a North Face location. Customers also receive other information relevant to their location that would be of potential interest such as hiking trails or outdoor recreation areas.

The technology is provided by the San Francisco-based Placecast, using their “Shop Alerts”. The North Face markets the service through email, in stores and on their website and is testing the strategy in 31 of its locations.


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The Value of Facebook Fans

Posted on October 18, 2010 by aposner

Facebook wields power and influence. People are influenced by the preferences of the people they connect and communicate with online. According to a Retail Daily survey, 38% of respondents reported that they would likely become a fan of a brand if they saw a family member or close friend do so.

According to AdWeek, a new six-country survey from DDB reveals that Facebook users who like a brand’s page on the social networking site use its products regularly or occasionally and, after following the brand on Facebook, more than a third of the respondents “want to buy this brand’s product more”.

Turns out Facebook fans are active and involved brand advocates. Most people start following brands they are already familiar with or have been recommended to them, specifically so they so they can get promotional offers.  They graduate to becoming a brand advocate and often go a level deeper, wanting to know about new products, have access to exclusive and breaking information as well as the ability to share and express opinions on the brand.


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Strong Holiday Season Predicted

Posted on October 15, 2010 by aposner

The International Council of Shopping Centers released its forecast Tuesday, predicting an increase in sales during the holiday shopping season of between 3% and 3.5%.

The National Retail Federation expects holiday sales to rise 2.3% over last year to $447.1 billion, the biggest increase in three years, in part because of more aggressive pricing strategies. The tone was set by the discount-driven back-to-school shopping season, which wrapped up in September with strong sales of children’s and teen clothing; according to MasterCard Inc.’s SpendingPulse unit that tracks payment by cash, check and credit card.

The International Council of Shopping Centers released its forecast Tuesday, predicting an increase in sales during the holiday shopping season of between 3% and 3.5%.

The trend toward discount shopping and consumer price consciousness continues. The consumer mindset is price driven and retailers are aware of the trend. Many seem to agree that a current climate causes is one of promotion and keeping an eye on competitors and reacting is a viable strategy.


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