Category case study

Many Success Stories Actually Are Great Stories

Photo credit: Tom Ipri on Flickr.Throughout history, there have been many products that didn’t survive the Darwinian test.

But, those that have survived have helped launch careers and built companies.

Many of these companies have an interesting story to tell.

For example, did you know that some of the most beloved breakfast cereals can trace their history to the Battle Creek Sanitarium or that a housewife and mother of a seven-month-old child convinced her husband to launch one of the most successful baby food brands in the world? How about the fact that an unusually large order for milkshake-mixers led to the later success of one of the world’s most popular fast food restaurants or that the founder of one of America’s favorite fried chicken restaurants was really a colonel?

These and other stories are documented in the book,Symbols of America: A Lavish Celebration of America’s Best Loved Trademarks and the Products They Symbolize, Their History, Folklore, and Enduring Mystique,” by Hal Morgan.

Dr. John Harvey Kellogg and the Road to Wellville

In the 1890’s, Battle Creek was the headquarters of the Seventh Day Adventist Church. It was from their belief in vegetarianism and healthful eating that led to the inventions of some of world’s favorite breakfast cereals.

During this time, Dr. John Harvey Kellogg, one of the Adventists’ staunchest supporters of healthful eating habits, ran the Battle Creek Sanitarium.

According to Morgan’s book, “Kellogg’s patients at the sanitarium lived on a diet of nuts and grains, often prepared from recipes created in the hospital’s experimental kitchen. Dr. Kellogg’s early food innovations included meat and butter substitutes such as Protose, Nuttose, and Nuttolene, as well as foods that have better stood the test of time, like granola, first made at the sanitarium in 1877. Patients were not allowed to drink tea or coffee, but received instead the home-brewed Caramel Coffee, made from bran, molasses, and burnt bread crusts.”

While Dr. Kellogg was more interested in promoting healthful eating, it was his brother, W.K. Kellogg, who saw the potential for a new business venture in the foods that were being made at the sanitarium. In particular, he focused on the flaked cereal that they had invented in 1894.

At first, the brothers started selling the cereal as Sanitas corn flakes to patients who had left the sanitarium and wanted to continue the healthy diet prescribed by Dr. Kellogg.

However, in 1903, W.K. Kellogg set out on his own to promote the cereal to a broader market. In the process, he changed the name to Kellogg’s toasted corn flakes and added malt, sugar and salt to improve the flavor—something his brother had opposed as unhealthy.

In 1906 W.K. Kellogg officially opened the Battle Creek Toasted Corn Flake Company. Its name was later changed to The Kellogg Company and the rest is history.

On a side note, after his second nervous breakdown, C.W. Post found himself under the care of Dr. Kellogg at the Battle Creek Sanitarium. It was there that he was inspired to start his own breakfast cereal company, the Postum Cereal Company, now known as Post Holdings. Some of his early products included Postum Cereal beverage and, the better known, Grape Nuts cereal.

In 1993, T.C. Boyle wrote a novel, titled “The Road to Wellville,” that was later adapted into a movie in 1994.

The novel is a historical fictionalization of Dr. John Harvey Kellogg’s work at the Battlecreek Sanitarium.

The Birth of Gerber

Morgan’s book also explains the origins of the Gerber Products Company.

According to Morgan, “It took a mother to come up with the idea for commercially processed baby food—a mother with connections at the Fremont Canning Company, of Fremont, Michigan. Dorothy Gerber was straining peas for her seven-month-old daughter, Sally, one Sunday afternoon in 1927 when she asked her husband why the job couldn’t be done at his canning plant. “To press the point,” she recalled, “I dumped a whole container of peas into a strainer and bowl, placed them in Dan’s lap, and asked him to see how he’d like to do that three times a day, seven days a week.” The following day Dan dutifully asked his father if the baby’s vegetables couldn’t be strained at the cannery. Their tests proved it could be done, and by the fall of 1928 the first Gerber strained baby foods were on the market—carrots, peas, prunes, spinach, and vegetable soup.”

Conclusion

It is important to remember that even the largest brands in the world started out as fledgling companies founded on a hope and a dream.

As shown in the accounts of the origins of Kellogg’s and Post cereals, as well as the Gerber Products Company, many success stories are interesting stories. (Hint: This can be used in your content marketing efforts.)

As for the other two companies that I alluded to earlier, I’m sure that you guessed that I was referring to the McDonald’s and Kentucky Fried Chicken restaurant chains. Their stories might be good topics for future posts.

However, if you don’t want to wait, you might want to pick up a copy of the book. It was published in 1987, but you can still purchase it on Amazon.com. You might also be able to find a copy at your local library.

It’s an interesting read; I’d recommend that you check it out.

Photo credit: Tom Ipri on Flickr.

Note: This post was originally published on HubPages in October of 2012. I removed it from HubPages in November of 2016.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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A Few Ways to Use Pokémon Go, Ingress, and Other AR Games to Promote Your Business

Photo credit: Eduardo Woo on Flickr.By now, you have probably heard about the new location-based augmented reality (AR) game from Niantic.

According to USA Today, “The mobile game Pokémon Go topped 15 million downloads on Apple’s App Store and Google Play, according to estimates from research firm SensorTower.”

“Pokémon Go is also among the most heavily used apps on a daily basis since its launch,” the article continues. “According to iOS usage data from Monday, users spent an average of 33 minutes a day playing the game. By comparison, the average iOS user spent 22 minutes on Facebook and 18 minutes on Snapchat.”

The article also points out that according to data from SurveyMonkey, as of July 11, Pokémon Go has 21 million daily active users in the United States alone.

As the game expands to other countries, the numbers of Pokémon Go players should continue to skyrocket.

With this in mind, businesses might be looking for ways to cash-in on the Pokémon Go craze.

For those businesses, here are a few suggestions.

Take Advantage of the Increased Foot Traffic

As several business news sites have pointed out, Pokémon Go is a location-based game that will drive potential customers to local businesses.

As a Forbes article suggests, business owners should check out the game to see if their business doubles as a Pokémon gym or Pokéstop.

If so, it could create a Pokémon-inspired drink or dish or offer discounts to customers who are playing Pokémon Go.

Knowing this, some businesses might be wondering how they can be included in the game.

At this time, it appears that a business can’t request to become a Pokéstop or Pokémon gym.

This is because they are currently being created based on data collected from Niantic’s other popular augmented reality game, Ingress. (Note: A Wall Street Journal article mentioned that the idea of a business paying to become a Pokéstop or Pokémon gym to increase foot traffic will be an option in the future.)

Those of you who are familiar with Ingress know that many of the portals used to in the game are actually places submitted by users and approved by Niantic. In order to be approved, the places needed to fit a specific set of criteria. In particular, Niantic was looking for locations with a cool story, places with a historical significance or educational value, cool pieces of art or architecture, hidden gems or hyper-local spots of interest to the community, public libraries, and public places of worship.

As Derek Walter points out in a post on Greenbot.com, you can use the Ingress Intel Map to help locate Ingress portals, Pokéstops, and Pokémon gyms.

If your business is lucky enough to have a Pokéstop nearby, you can help get increased foot traffic by purchasing an in-game item call a “Lure Module”. This will help attract Pokémon to the Pokéstop. And, where there are Pokémon, the Pokémon Trainers (i.e., potential customers) will inevitably go.

A recent Bloomberg article pointed out that L’inizio’s Pizza Bar in Queens was one of the first businesses to give it a try.

“Food and drink sales spiked by about 30 percent compared with a typical weekend, according to pizzeria manager Sean Benedetti,” the article reports. “It was part luck—the game chooses which public locations to imbue with special significance in its virtual world—but there was also savvy strategy. Benedetti, 29, spent about $10 on “Lure Modules,” an in-game purchase that attracts Pokémon to a specified location. Players soon picked up on the fact that L’inizio’s was well worth visiting. “People are coming out of the woodwork because of this game,” he said.”

The Bloomberg article also points out that while the quest to find Pokémon might increase foot traffic, it doesn’t always translate into increased sales.

However, I would guess that the locations that haven’t seen an increase in sales might benefit by offering a special or discount to entice people to become paying customers.

Take Part in Game-Related Events

Ingress currently has a series of free events that allow players to gather and compete with other local and visiting players.

While I am not sure if it is possible to become an official sponsor of these events, if your business is located near one, it would be a smart idea to offer discounts to players who would need to refuel along the way.

There hasn’t been any mention of similar Pokémon Go events. However, given the immediate popularity of the game I would be willing to bet that there will be some in the near future.

Become Part of the Game

Actually becoming part of the game is a possibility.

Anyone who has played Ingress is familiar with the sponsored items that enhance in-game play.

These include the AXA Shield (sponsored by AXA—the French multinational insurance firm,) the SoftBank Ultra Link (sponsored by SoftBank Group Corp.,) the MUFG Capsule (sponsored by Mitsubishi UFJ Financial Group,) and the Lawson Power Cube (sponsored by Lawson, Inc.)

While experts are already warning that adding too much advertising could ruin the in-game experience in Pokémon Go, sponsorships and other in-game advertising are a possibility. However, sponsorships are probably going to cost more than many businesses have in their budget, particularly if Pokémon Go continues to grow in popularity.

Either way, businesses should probably keep an eye open for sponsorships and other in-game advertising opportunities.

Final Thoughts

I definitely see the possibilities that are created by Pokémon Go, particularly because of its appeal to a wide range of people.

The suggestions that I included in this post are just some of the things that businesses can do to leverage the interest that people have shown in Pokémon Go.

If the game has staying power, it will not only be good news for Niantic and The Pokémon Company, but it will also be good news for companies that plan to release other AR games in the future.

Furthermore, it will also be another way for business owners to use mobile phones to get new and existing customers to visit their businesses.

That’s a win-win-win.

Now, I need to go find me some Pokémon.

Photo credit: Eduardo Woo on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Product Packaging—Valuable Real Estate in a Mobile World

The package that a product is sold in is valuable.

In fact, sometimes it can actually be the reason why a customer chooses one product over another.

Malcolm Gladwell highlighted this in his book, “Blink: The Power of Thinking Without Thinking.”

In the book, Gladwell talked about Louis Cheskin’s work with package design, which on more than one occasion led to dramatic increases in sales.

Paco Underhill also addressed package design in his book, “Why We Buy: The Science of Shopping–Updated and Revised for the Internet, the Global Consumer, and Beyond.”

And, if you look, a quick search on Google could uncover a lot of advice from designers that you might find useful.

But, what I find interesting are some of the things that brands are currently trying that not only can influence sales, but can also provide value to customers, encourage sharing on social media, and can be an additional source of revenue.

Here is a list of a few examples that I have found recently, each of which encourage customers to use their smartphones in one way or another and ultimately help get customers talking about the brand online.

While the examples listed do not include packaging found on a shelf in a brick-and-mortar retail store, the lessons learned could easily be applied there as well.

 

A photo posted by Chad Thiele (@chadjthiele) on

Amazon Minions Boxes

When a customer purchases an item from Amazon.com, everyone who sees the product get delivered knows where they bought it. With its arrow that looks like a smile, the Amazon.com logo is easily recognized.

However, when Amazon.com sold the space on their boxes to advertise Minions, it created a lot of positive buzz for the brand and the movie.

Aside from the novelty factor (this was the first time that non-Amazon ads appeared on the boxes,) they also encouraged customers to take a photo of themselves holding the box and post it on social media sites using the hashtag #MinionsBoxes for a chance to win a $1,000 Amazon gift card.

Therefore, they not only generated some extra revenue by selling the space on their boxes, they shared in the spotlight when customers posted their photos on social media.

And, a lot of people posted these photos.

You can still search the hashtag on Twitter and Instagram for examples.

Zappos #ImNotaBox Campaign

As an article on Adweek.com points out, “Zappos wants you to think outside the box. Beginning with the box itself.”

“On June 1, the online retailer will begin shipping some shoes in a very cool new box (designed in-house) that features a collection of template designs printed on the inside—encouraging the recipients to fold, cut and otherwise reuse the box into item [sic] like a smartphone holder, a children’s shoe sizer, a geometric planter and a 3-D llama,” the article continues.

Similar to the Amazon.com box, Zappos is encouraging customers to share the creative things that they do with the box on social media.

The boxes haven’t started shipping yet, but there is little doubt that they will get some people talking about the brand online.

For additional information, go to www.imnotabox.com.

McDonald’s Turned a Happy Meal Into a VR Headset

In March, McDonald’s Sweden launched a promotion that they dubbed “Happy Goggles.”

According to Adweek, McDonald’s Sweden created 3,500 Happy Meal boxes that could be turned into virtual-reality viewers. These special Happy Meal boxes were available in 14 restaurants over the weekends of March 5 and March 12.

“The push is tied to the Swedish “Sportlov” recreational holiday, during which many families go skiing,” states the Adweek article. “With this in mind, McD’s created a ski-themed VR game, “Slope Stars,” for use with the oggles [sic] (though they work just as well with any mobile VR experience). The game can also be played in a less immersive fashion without them.”

As the Adweek article also points out, it is similar to Google Cardboard.

This is just one mobile marketing campaign that McDonald’s has recently tested.

They also recently tested a placemat made from a special paper that works with a smartphone and an app that allows customers to create music while dining at McDonald’s restaurants.

They called this special placemat the “McTrax.”

Alas, this campaign was only available in the Netherlands. Last month.

It appears that McDonald’s lets its European customers try all the cool things first.

Final Thoughts

As a result of Louis Cheskin’s work, we know that package design can have a huge impact on sales.

We also know that smartphones are a huge part of your customers’ lives.

Therefore, it makes sense that brands encourage customers to engage with the brand in various creative ways using the packaging that their products are sold and shipped in.

As with everything that we do in the marketing world, it is important to test and monitor the effects that these creative package designs have on sales. Because, as pointed out, the packaging can influence sales in both positive and negative ways.

That said, if you don’t try new things, you might be missing out on a huge opportunity to create buzz around the brand that can impact your bottom line in immeasurable ways.

Photo credit: @chadjthiele on Instagram.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Local Inventory Ads: A Key Ingredient for Mobile Marketing Success (Case Study)

Photo credit: RubyGoes on Flickr.In the short term, having the ability to confidently tell a customer that you have the exact product in stock at a nearby brick-and-mortar store directly within a mobile ad or even on your website is going to give retailers a huge competitive advantage. However, before you know it, this level of information is going to become table stakes.

While there are a lot of obstacles that retailers need to overcome to provide accurate inventory data for their brick-and-mortar stores, it is important that they start to work through this problem.

As a case study mentioned in an article on the think with Google blog proves, this type of information will help drive traffic into stores.

And, I believe there will be many more case studies like this in the not so distant future.

Local Inventory Ads Drive Shoppers into Stores

The case study mentioned earlier shows that local inventory ads can be very effective.

As the original article on the think with Google blog states, “With over 1,200 physical stores across the country, Sears Hometown and Outlet Stores has embraced Google local inventory ads (LIAs) to bring nearby customers on mobile devices into stores. The results: a 16% higher click-through rate and a 122% higher store visit rate compared with online PLAs.”

The article also points out that Sears Hometown and Outlet Stores local inventory ads yielded return on ad spend (ROAS) higher than other offline marketing.

In fact, in the article David Buckley, CMO of Sears Hometown and Outlets stores, states, “When we compared our most recent performance of local inventory ads with offline media typically used to drive store sales, such as a recent broadcast television campaign, local inventory ads returned in-store sales at more than 5X the rate of TV advertising for each dollar spent.”

Buckley is also quoted as saying, “We’ve been closely monitoring the performance of local inventory ads and our most recent analysis points to more than $8 of in-store sales for each dollar invested.”

Not bad.

Giving Customers the Information They Need

“If people are searching for a product on their phones, there is nothing more targeted than serving that item with a picture, description, and price while letting the customers know exactly how far they are located from the product,” Buckley adds.

In my opinion, I think that he is understating the significance of being able to give customers the knowledge that the product that they are looking for will be found at a specific brick-and-mortar store.

In fact, I think that the knowledge that the item will be in stock could be more important than price in some cases. As the adage goes, “time is money.”

The importance of letting customers know that an item is available at a nearby store is confirmed by a finding in a report, titled “Digital Impact on In-Store Shopping: Research Debunks Common Myths October 2014.”

According to the report, “Search results are a powerful way to drive consumers to stores. Providing local information, such as item availability at a nearby store or local store hours, fills in information gaps that are keeping consumers away from stores.”

In fact, the report goes on to point out that, “1 in 4 consumers who avoid stores do so because of limited awareness of nearby stores or the risk of items not being available.”

While the report is now over a year old, it has a lot of insights that retailers could find useful.

Final Thoughts

The more information that a retailer can give customers before they make the trip to the brick-and-mortar store, the better.

As the case study on the think with Google blog points out, providing item availability information to customers who are near a particular brick-and-mortar store helps increase the effectiveness of a mobile ad.

Keep in mind that it is important to make sure that the information that retailers provide to customers is accurate, because if a customer is told that the item will be available only to find out that it is sold out when they get to the store could potentially damage the credibility and trust that the customer has in the store.

While there are obstacles that retailers need to overcome to be able to provide accurate inventory data to customers online, it is something that they should be working on.

I think that being able to provide this type of information to customers could be more important than even the think with Google article leads the reader to be believe.

And, it is only going to be more important as time goes on.

Photo credit: RubyGoes on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Sometimes It’s What a Brand Doesn’t Do That Loses the Sale

Photo credit: Ron Bennetts on Flickr.In almost every instance where a business is trying to sell a product or service, it takes multiple positive interactions before a prospect becomes a paying customer.

The average number of positive interactions, or touches at various touchpoints, required typically varies by the type of product or service being sold.

Furthermore, while multiple positive interactions with a brand can lead to a sale, the reality is that negative interactions can also prevent a sale from taking place.

Sometimes it is something that the brand has no control over that causes a prospect to choose the competitor’s product or service.

There are some things that can be done to combat this problem. However, it does require some effort.

To illustrate this point, I am once again going to use my recent smartphone purchase as an example.

The Incumbents: Motorola and Verizon Wireless

I have been a loyal Verizon Wireless customer since I moved to Louisiana back in 2006.

When I moved there, I asked some of the local residents what provider they recommended since U.S. Cellular wasn’t an option in the area, at least at that time.

Nearly everyone who I talked to suggested Verizon Wireless, because they felt that Verizon Wireless had done the best job getting service restored after hurricane’s Katrina and Rita.

I took the advice of the residents of Louisiana and 10 years and two states later, I am still a customer.

As for the device, I think that all the cellular phones that I have owned up until this year were Motorola phones. (Some of my earliest cellular phones might have been made by Nokia, but I am not sure.)

Something that I am absolutely sure of is that the phone that I purchased when I move to Louisiana was a Motorola, as were my first two smartphones. And, my satisfaction with the brand was extremely high.

That was, until Motorola and its parent company, Lenovo, announced that they plan to phase out Motorola and only offer the Moto phones.

The Choice: Motorola Droid Turbo 2 or Samsung Galaxy S7 Edge

I was now faced with the option of getting one last Motorola phone or make the inevitable switch to Samsung.

During my initial visit to the Verizon Wireless store, the salespeople who I talked to spoke highly of both phones, but seemed to slightly favor the Samsung Galaxy S7 Edge.

Needless to say, I left the store that day still undecided.

So, I did what many people do and asked for advice on Twitter.

As you can see, the only response that I received was from the Sprint Forward Twitter account.

They recommended the Samsung Galaxy S7.

I then got a promoted tweet from Verizon Wireless offering a free Samsung Gear VR headset with a purchase of a Samsung Galaxy S7 or S7 Edge. (At the time, Best Buy was offering a similar promotion.) (Note: I think that this was the promoted tweet from Verizon Wireless. If it wasn’t, it was very similar.)

That was it, I was almost certain that I would make the switch to Samsung.

I only needed to check out some product reviews from CNET and a few other sources. All of which confirmed that Samsung was the best option available at the time.

The Choice: Sprint or Verizon Wireless

Given my past experience with Verizon Wireless, it was going to take more than a contact on Twitter to get me to switch to Sprint.

That said, if my past experiences with Verizon Wireless hadn’t been so positive, I might have switched to Sprint or even went to Best Buy to purchase the smartphone.

And, Sprint definitely has my attention if for some reason I need to change wireless carriers in the future.

But, Verizon Wireless did offer a good data plan, had a great offer, and has provided excellent customer service—so I remained a customer.

Final Thoughts

Had Motorola reached out on Twitter or if someone would have recommended it, I might have purchased the Motorola Droid Turbo 2, if for no other reason than to get one last Motorola phone. But, nobody did.

And, Motorola already made the decision to phase out the brand that I was loyal to, so it made my decision to switch that much easier.

In this case, the brand lost a loyal customer because of what they did (plan to phase out Motorola phones), what they didn’t do (reach out on social media or anywhere else at right time), and what other people did (recommend the competition.)

In contrast, while Verizon Wireless didn’t reach out this time, they at least did use a promoted tweet to get my attention on Twitter and create awareness of a great offer. And, to their credit, they did reach out to me a few years ago when I wrote a post about how access to high speed wireless data can have an effect on a brand’s mobile marketing campaigns.

But, in reality, it was the fact that they have always provided great customer service in the past that kept me a customer. That, and the fact that their data plans are competitive with the other carriers.

What this example shows is that in the same transaction, one brand kept a loyal customer by providing competitive pricing combined with great customer service, while another lost my business because of what they did, what they didn’t do, and what other people did.

As pointed out, sometimes it is something that the brand has no control over that can have a negative effect on a sale.

With a little foresight, there are things that brands can do to combat this problem and bring in new customers and retain existing ones.

However, it does require some effort.

Photo credit: Ron Bennetts on Flickr.

 

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Macy’s “Pick to the Last Unit” Program Is Great News for Mobile Marketing

Photo credit: advencap on Flickr.Earlier this month, Tyco Retail Solutions announced that its TrueVUE RFID Inventory Visibility platform is being used to power Macy’s “Pick to the Last Unit” (P2LU) program for omni-channel fulfillment of customer purchases. While this is great news for Macy’s, the brands it sells, and its customers, it might be even better news for the future of mobile marketing.

By utilizing item-level RFID technology, Macy’s is now confident enough to say that an item is available in its inventory, and is thus able to list the last item of a stock-keeping unit (SKU) for sale online.

This is not only going to allow the retailer to sell more products online, it should save them time and money by making it easier for employees to find the products customers request in the brick-and-mortar store.

It is also bringing us one step closer to the future of mobile marketing.

For example, if more retailers start to use this type of technology, it could allow them to efficiently and effectively offer the buy online, pick up in-store option to customers via the mobile web or a proprietary smartphone app. (For some retailers, the buy online, pick up in-store option would now be feasible. For others, the turn-around time could be significantly decreased.)

Having the ability to confidently let customers know that a particular item is available at a particular location also opens up many additional marketing opportunities for the retailer and the brands it sells.

What Exactly Is Macy’s P2LU?

According to the article on the Tyco Retail Solutions website, “As a customer-centric retailer, Macy’s omni-channel strategies are focused on providing a smart combination of iconic brands and assortments for customers to shop anywhere, anytime, and anyhow they choose. The retailer realized that brick-and-mortar stores could be their greatest asset for single unit orders, essentially functioning as robust and flexible “warehouses” to utilize the full assortment of owned inventory. With item-level RFID, Macy’s can focus on product assortment and service while using existing inventory to address fulfillment demands. Changes to inventory management supporting this omni-channel strategy have enabled Macy’s to reduce $1 billion of inventory from its stores.”

“Furthering that effort, Macy’s launched its unique P2LU program for omni-channel fulfillment,” the article continues. “P2LU attempts to ensure that the last unit of an item in any store is made available for sale and easily located for order fulfillment. Typically, retailers don’t expose the last item of a SKU to online purchasing because they don’t have enough confidence in their inventory accuracy or ability to find the item to make every unit available for customer orders.”

This point is really important to the future of mobile marketing.

As the article explains, “Macy’s now has confidence to fulfill customer demand even if only one of an item is left in stock.”

For additional details, you might want to check out an article written by Claire Swedberg that was posted on the RFID Journal website. It has additional insight as to how Macy’s P2LU program will help the retailer improve its bottom line.

Photo credit: Judit Klein on Flickr.What Item-Level RFID Can Do for Marketers

Being able to tell a customer that an item is available for purchase at a particular brick-and-mortar store is huge.

As already mentioned, it gives the retailer the ability to secure additional online orders by giving customers the option to buy online, even when there is only one item left in the retailer’s inventory.

Retailers would also be able to tell customers if a specific item is available for purchase at a specific location by making the inventory searchable on the retailer’s website.

A few retailers have been doing this already.

In his 2011 book, “The Third Screen: Marketing to Your Customers in a World Gone Mobile,” Chuck Martin points out that Steve Madden’s website has given customers the ability to check for item availability in its brick-and-mortar stores by geolocation for a few years now. (Note: From the information in the book, it is unclear whether or not Steve Madden is using item-level RFID to accomplish this. Given the fact that the retailer primarily sells shoes, some other process might be in place.)

However, other retailers couldn’t offer this option because it just wasn’t economically or logistically feasible. Item-level RFID technology has the ability to change that.

It could also help secure additional sales as more customers shop via their mobile devices.

Offering customers the option to search the mobile web or use a smartphone app to find a particular product in a nearby brick-and-mortar store can possibly be the deciding factor in making a sale.

Being able to target digital advertising to customers based on their need and location and then being able to tell them that the item that they are looking for is actually available for purchase at a nearby store is a potential game-changer.

And this is just the tip of the iceberg.

Final Thoughts

As time goes on, innovative marketers will find additional ways to incorporate the ability to check for particular items in a brick-and-mortar store’s inventory in ways that we haven’t even thought of yet.

And, all this is made possible by using item-level RFID technology.

The fact that a major retailer like Macy’s is testing this technology is paving the way for other retailers in the future.

As the cost of this type of technology continues to decrease, other retailers will no doubt follow Macy’s lead.

As mentioned earlier, while this is great news for the retailer, the brands it sells, and its customers, it might be even better news for the future of mobile marketing.

Photo credits: advencap and Judit Klein on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Reward Customers for Good Behavior to Generate Positive Word of Mouth

Photo credit: leyla.a on Flickr.The world would be a better place if we all treated each other a little nicer.

Maybe if good manners were assigned a monetary value, more people would be on their best behavior.

This is exactly what a few restaurants and coffee shops have done.

In the process, they have received positive coverage from bloggers and other online media outlets.

In the age of where news stories can be found on search engines for years and people can spread the message via social media and online review sites, this kind of coverage can definitely make a positive impact on the business’s bottom line.

Here is a list of some of restaurants and coffee shops that I have heard about lately that have used this tactic to get people talking about their businesses.

Rewarding Parents When Their Kids Are on Their Best Behavior

Back in 2013, a Washington eatery got mentioned on TODAY.com for giving Laura King and her family a $4 discount on their bill to cover a bowl of ice cream that the owners gave the family because their children were so well behaved.

As the article points out, “Rob Scott — who owns Sogno di Vino, the restaurant King visited — said he routinely offers complimentary desserts to customers with well-mannered children, but this was the first time he had actually typed the discount on the receipt.”

“An image of the receipt quickly went viral after one of King’s friends posted it online,” the article continues.

While not all the mentions that the restaurant received were positive, the discount got people to talk about the restaurant on social media sites, which led to some great coverage in the national news media. Furthermore, articles about the post still show up on a Google search engine results page (SERP) over two years after the post went viral.

No Cell Phones at the Dinner Table

As an article on The Huffington Post points out, several restaurants have tried to encourage better dining etiquette by offering a discount to customers when they put their smartphones away while they are at the dinner table.

Other restaurants have even gone so far as to ban the use of cell phones in their restaurants all together. As the Huffington Post article mentions, this policy has sometimes been met with outrage.

Whether people agree with this type of policy or not, it has generated some attention. Furthermore, it has gotten people to talk about whether or not cell phones should be used as much as they are at the dinner table.

Photo credit: Social Media Dinner on Flickr.

On the other hand, it also needs to be noted that this policy does prevent customers from taking photos of their food and sharing them on social media sites.

This, too, can be a great way to get people talking about the restaurant and possibly get them to visit the establishment in the future.

Hummus Diplomacy

In October of this year, NPR featured a story about an Israeli restaurant in Kfar Vitkin, north of Tel Aviv, that is giving a 50 percent discount to Jews and Arabs who eat together.

As reported in the NPR article, a post on the restaurant’s Facebook page stated, “Are you afraid of Arabs? Are you afraid of Jews? By us there are no Arabs, but also no Jews. We have human beings! And real excellent Arab hummus! And great Jewish falafel!”

According to NPR, “His post was shared more than 1,900 times, and news of the deal has made headlines around the world.”

At the time the article was written, the offer had only been redeemed by 10 tables. However, business has increased by 20 percent. The article mentions that a substantial part of the boost was from local and foreign journalists.

Please and Good Morning Saves You Money

Offering customers a discount for good manners can also generate good will and positive mentions online.

For example, a small coffee shop in Australia has a sign in front of the shop that says that the coffee is $5. If you say “please,” the coffee is $4.50 and it’s only $4 if you say, “Good morning, a coffee please.”

According to an article on the Daily Mail, the owners of the coffee shop don’t enforce the policy. However, they said it brings a smile to many of their customers’ faces and many customers go out of their way to be courteous.

Even if it isn’t enforced, the sign has created enough attention to be covered by online media outlets.

It is interesting to note that this idea was copied, with similar results, by a French café.

Free Meal to the Lonely on Thanksgiving

Okay, this one isn’t really about getting customers to change their actions.

In fact, it is actually the restaurant that is going out of its way to be courteous to its customers.

The buzz started when a customer posted a photo of a sign that was hung on the door of George’s Senate Coney Island Restaurant in Michigan that stated that anyone who would be home alone on Thanksgiving could come to the restaurant and get a free meal on November 26, 2015.

Not only did the story go viral on social media, it was covered by many of the traditional media outlets, as well.

And, while the restaurant will probably be giving out more meals than it originally planned, the free publicity that it received is priceless.

Final Thoughts

As I said at the beginning of this post, the world would be a better place if people chose to be nicer to each other.

Businesses often have an opportunity to remind customers of this.

As shown in this post, incentivizing good behavior is not always met with open arms. In fact, sometimes, it is met with outrage.

However, when done correctly, little things that remind us that we need to coexist peacefully and show respect for others can get people talking about the business online. Sometimes, this will lead to further coverage in more traditional media outlets.

Furthermore, social sharing is only part of story. When customers search for information about the restaurant on Google or any of the other search engines, a positive story like this is likely to appear on a SERP well into the future. That might be enough to get potential customers to visit the restaurant long after the deal ends.

And, if nothing else, the business might start a conversation that can make the world a better place.

Photo credits: leyla.a and Social Media Dinner on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Buy Online, Pick Up in Store Isn’t a New Idea – But the Process Still Needs Improvement

Photo credit: Mike Mozart on Flickr.Offering customers the option to buy a product online and pick it up in the brick-and-mortar store is not new idea.

In fact, I remember Circuit City offering this option way back in the early 2000s.

However, even though the idea has been around for a while, many stores often fail to meet customers’ expectations.

In order to stay competitive, retailers are going to need to work on streamlining the process.

Why Offering This Option to Customers Is So Important

From the retailer’s perspective, offering the option of buying a product online and picking it up in store helps make the sale and saves the customer and/or the retailer money on shipping, which can still be costly even with the discounts that they receive from delivery companies based on the high-volume of shipments.

It is also something that retailers are being forced to offer based on the competition, as many stores are currently offering this option.

Furthermore, this is something that customers want.

In fact, according to the CFI Group, 75% of consumers indicate that the ability to order online and pick up the item in the brick-and-mortar store is somewhat or extremely important to them.

Retailers Currently Promise Quick Turnaround Times and an Easy Shopping Experience

On the surface, it looks like retailers have a good process in place to fulfill these orders, as many stores currently promise a relatively quick turnaround time.

In fact, according to a post on the Two Cents blog, many major retailers promise to have the order ready in one to four hours from when the order was first placed online. (The turnaround time promised varies by retailer. See the post for additional information.)

What Customers Are Experiencing

While retailers are promising quick turnaround times and a smooth buying experience, this is not always what they deliver.

In fact, according to a recent article on The Wall Street Journal, “A survey of over 1,000 online U.S.-based shoppers by JDA Software Group Inc. shows that, of 35% who opted to buy online and pick up goods in a store in the past year, 50% encountered problems getting their purchases. This is a surprisingly high failure rate of a strategy meant to offset the high costs of conducting e-commerce, said Wayne Usie, senior vice president of retail at JDA.”

Another article on the RetailWire site provides a case study that explains how one retailer botched an order that a customer placed online and opted to pick up in the store.

The comments on The Wall Street Journal and RetailWire articles provide some useful insights into the issues that customers and retailers face when taking advantage of this option.

For example, in a comment on The Wall Street Journal article, Gary Bernard points out that he used the buy online, pick up in-store option for an item that Walmart carried nationally, but didn’t have at his local store. He stated that he used the option in order to save the $5 delivery fee on a $10 item. And, as he explained, it took him about 8 minutes to get the item. After completing the transaction, he came to the conclusion that this option is good for certain items that can’t be purchased at the local store, but he wouldn’t use this option to buy one or two items that could be purchased by just walking into the store and buying them off the shelf. That said, he was satisfied with the process for this type of purchase.

Average Time Needed to Complete a Purchase

A Consumerist blog post written last year highlighted a study that was conducted in 2014 by StellaService that found that, on average, it took customers using the buy online, pick up in-store option less time from the time they entered the store to the time that they completed the checkout process than it took a traditional shopper who found and purchased items off the shelf.

However, this didn’t include the time it took for the store to collect the items for the shoppers and notify them that the items were ready. In the study, StellaService stated, “Items were available for pick up in just over an hour on average.”

It is also interesting to note that the average amount of time needed for the checkout process for the buy online, pick up in-store option took longer than the average time needed at the checkout desk for the traditional in-store shopper, at 3.1 minutes vs. 1.1 minutes, respectively.

Note: Many stores try to encourage traditional shoppers to spend more time shopping at stores, as this often leads to increased sales. However, efficiency at the checkout desk is something that all retailers strive for.

Some Key Issues to Consider

There are a lot of issues that need to be considered when developing the process for the buy online, pick up in-store option.

Photo credit: Mike Mozart on Flickr.As a post on the Internet Retailer blog points out, proper training of store employees and adequate signage are extremely important to making this process work as it should. The post also highlights the fact that when you get customers to come to the store to pick up items that they purchased online, there is an opportunity to upsell other items. This can have a tremendous positive impact on the retailer’s bottom line.

In the comments section of the RetailWire post mentioned above, Melanie Nuce, VP, Apparel and General Merchandise, at GS1 US mentions that item-level RFID technology will also help fix some of the problems that retailers are experiencing with the buy online, pick up in-store option.

Final Thoughts

Retailers are always looking for ways to differentiate themselves by providing customers with options that make the shopping experience more convenient.

When done correctly, offering the option to buy online and pick up the items in the store can save customers and the retailer time and money. It also provides the retailer with another opportunity to get the customer in the brick-and-mortar store, which can lead to additional impulse buys.

However, as mentioned above, a study conducted by JDA Software Group Inc. found that often the processes that retailers currently have in place do not always work the way that they should.

These failures can hurt the retailer’s reputation, particularly if problems happen on a regular basis.

The good news is that people are already thinking about ways to improve this process.

Retailers that take the lead and are among the first to provide an efficient and smooth buying experience on a consistent basis should experience positive effects on their bottom lines not only through increased sales, but also through the decrease in expenses needed to get products into customers’ hands.

Keep in mind, successful retailers will need to continually improve the process, as positive word-of-mouth could lead to more customers using the service. This could strain the retailer’s resources even further and again lead to failures which could negatively impact future sales.

However, not offering the service might be worse than not trying at all, as many customers already say the option is important to them.

Photo credits: Mike Mozart and Mike Mozart on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Narcissism and the Secret Sale: Using Specialness, Secrets, and Exclusive Offers to Increase Retail Sales

Photo credit: thekirbster on Flickr.

In her book, “Decoding the New Consumer Mind,” Dr. Kit Yarrow explains that there are increased levels of narcissistic thought and behavior among consumers in modern society.

Savvy retailers that know this can use this knowledge to their advantage in order to increase sales in their stores by providing exclusive offers that make their customers feel special and appreciated.

We All Have Narcissistic Qualities

“Narcissism is a personality style with powerful emotional components that drive interactions and purchasing needs,” writes Dr. Yarrow in her book. “Most people are not narcissists in a clinical sense of the word, but everyone has some narcissistic qualities. That is, we all exhibit some degree of superficiality, self-focus, a sense of invisibility, emphasis on the individual rather than the group, and high expectations of individual specialness.”

According to Dr. Yarrow, “Narcissism activates particular consumer needs to feel special and appreciated. These are obvious needs that are familiar to marketers. But more subtle factors come into play when we operate out of narcissism: most notably anger and competitiveness. Marketers need to understand the real roots of narcissism both because it’s on the rise and because it activates some of our deepest, darkest emotions. Understanding narcissism means better understanding what consumers want and need.”

Retail and the Narcissistic Consumer

Dr. Yarrow points out that given the fact that narcissism exists in all of us to some extent, marketers would be wise to harness the allure of specialness, exclusivity, secrets, and social rankings.

CatnipExamples given in the book include the “secret” menu at the fast-food restaurant In-N-Out Burger, early access to sales for department store credit card holders, and exclusive coveted offerings for Facebook fans, special consumers, and Twitter followers.

Dr. Yarrow also suggests that by intentionally leaving sale price items unmarked, a retail store could increase sales for some high-priced items.

This “secret sale” that associates let customers know about can make customers think that they are getting special treatment.

In my opinion, this gives the sales associate a chance to create trust with the customer that could also increase sales in the future. There is also an opportunity for the retail store to use mobile technology to deliver value to the customer if the information is delivered via the store’s mobile app.

As Dr. Yarrow points out, secrets are exciting and create a bond between the shopper and the store. She also points out that this tactic works for all consumers, not just the more narcissistic shopper.

Final Thoughts

Knowing what motivates consumers to take action can help businesses make better decisions and create situations that increase sales.

As this post explains, the rise of narcissism in society has made it more important for brands and retailers to create experiences that make the customer feel like he or she is getting something that other customers are not aware of.

This can help the business reach short-term sales goals. It can also lead to future sales by strengthening the bond between the customer and the business.

Photo credit: thekirbster on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Online Video Marketing – Just What the Doctor Ordered

If your business isn’t utilizing online video to market your products or services, you are probably missing out on a great opportunity to connect with your customers and potential customers.

A research report that was published last year by the Pew Research Center’s Internet & American Life Project points out that the percent of online adults who watch or download videos has grown in recent years, increasing from 69% of adult internet users in 2009 to 78% in 2013. This number is even more important given the fact that the number of adults who use the Internet is also growing.

According to the report, the increase in online adults who post, watch and download videos is being driven by mobile phones and video-sharing sites like YouTube.

However, as David Meerman Scott points out in his book, titled “The New Rules of Marketing & PR,” increased access to high speed Internet connections and technology that make it easy for anyone to create and upload video content also had something to do with the growth in online video usage.

Special Effects Not Required

If you check out what the big brands like Coca-Cola, Red Bull, or Old Spice are doing with online videos, you might get the impression that a huge budget is required for success.

However, that’s just not true. In fact, brands can be successful without all the Hollywood-style special effects, just ask Blendtec. (They were able to create viral videos with little more than a man in lab coat and a blender.)

The Hidden ROI of Online Videos

As is the case with all online content, online videos can have a positive effect on the business’s bottom line in other ways, as well, including decreasing operating expenses. This can be achieved by creating educational videos that help customers use the business’s product.

For example, take a look at what the Rug Doctor is doing with its YouTube channel. Even though the product is relatively simple to use, in my opinion, the directions that they include when you rent a Rug Doctor do not offer enough explanation on how to use their product effectively. While they fail in creating easy-to-use written instructions, they do an excellent job with their YouTube channel. The videos don’t look like they cost the company very much to make, but as the number of views testify, they have success demonstrating how the product is used.

As of today, one the basic educational videos that explains how to use a Rug Doctor has been viewed by over 435,000 people on YouTube. Just think about how much staff time it could have potentially saved the company if even half of those people didn’t have to call to ask questions. Not only that, think of all time they may have saved those same customers. That’s just good business.

The fact that this many people viewed the Rug Doctor’s videos does not come as a surprise when you look at online video trends.

According to the Pew Research study that I previously mentioned, educational videos are among some of the most widely viewed online video genres.

Final Thoughts 

Many experts recommend that businesses of all sizes use online videos in their marketing efforts for a wide range of reasons.

The Pew Research study reinforces the fact that consumers are already watching video online. This is not going to change any time soon. In fact, as the Internet gets faster and more options are available to reach your customers and potential customers, it will become not only a recommended tool in your marketing toolbox, it might become the key to success.

Photo credit: jm3 on Flickr on Flickr.

Video credit: Pew Research Center

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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