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Instagram Stories Might Be Good for Snapchat and Great for Marketers

Photo credit: Patrik Nygren on Flickr.As I pointed out in a post last month, Snapchat has been experiencing healthy growth and has become a major player in the competition to get the most users and, ultimately, more marketing dollars invested in the app.

However, after Instagram copied some of the features that make Snapchat unique, many people started to wonder if Snapchat will survive.

If you look at the facts, I think Snapchat should be able to weather the storm.

In fact, as I explain in this post, there is the possibility that Instagram Stories might actually be a good thing for Snapchat.

Either way, the competition between Instagram and Snapchat is great news for marketers.

The Argument for Instagram Stories

Almost immediately after it was introduced, marketers started to have success with Instagram Stories. That is, if you define success as the number of views that content receives.

As reported in an Adweek article, brands were getting more views on Instagram Stories on the very first day than they were ever able to get on Snapchat.

“Nike, for example, generated 800,000 views in 24 hours for an Instagram Story that it posted on Tuesday, the first day the feature was available,” reports Garett Sloane in the Adweek article. “On Snapchat, Nike’s best video got 66,000 views, according to Nike and its social media agency Laundry Service.”

This is leading some experts to predict the downfall of Snapchat.

For example, Adam Padilla, CEO of the creative branding agency BrandFire, thinks that the end is near for Snapchat because Instagram has more users to begin with, more high-profile users, and it has a better user interface. He also thinks that there can only be one “now” app. And, of yeah, the Zuckerberg factor also is in play.

Other people think that Instagram Stories won’t destroy Snapchat.

In a TechCrunch article, Josh Constine makes a good argument that Instagram is not necessarily trying to win over current Snapchat users, but prevent or hinder Snapchat from growing any further.

The Argument for Snapchat

It has only been two weeks and no one knows for sure what will happen in the future.

However, Yahoo! Finance is reporting that Instagram Stories hasn’t hurt Snapchat’s engagement levels… yet.

In an article on the Yahoo! Finance website, an App Annie spokesperson is quoted as saying, “Instagram Stories has not made a measurable impact on engagement since the feature launched.” (This was based on data gather during the first seven days after Instagram Stories was first introduced.)

App Annie’s spokesperson thinks that this is because many people use both Instagram and Snapchat.

I think that many of the arguments made so far, both for Snapchat and Instagram, could be good for the long-term growth and success of Snapchat.

As many people have pointed out, it is difficult to get people to find you on Snapchat. Therefore, many users have taken to other social networking sites to promote their Snapchat usernames. In fact, this is what many people used Instagram Stories for shortly after it was first introduced.

Given the fact that there are so many people using Instagram, the addition of Instagram Stories might actually increase the number people using Snapchat, just because they now have a way to find interesting people on the Snapchat app.

On the other hand, the fact that it is difficult to find usernames unless given directly to a potential follower could continue to work in Snapchat’s favor, particularly for younger users who want a place to post where their parents won’t find it.

Turning to adults, another thing Instagram Stories might have done is explain what Snapchat is used for.

Before Instagram Stories, Snapchat was starting to grow the number of adults who use the site.

However, one of the hurdles Snapchat had to overcome was getting adults to understand how and why to use the app.

Now many adults get it and some might start to use Snapchat in an effort to try the other features the app provides.

In addition to the Snapchat lenses and geofilters that have become a part of pop culture, Snapchat also has gamification elements that Instagram currently doesn’t have, including the Snapchat score, emojis, and trophies.

These are very important to some Snapchat users.

In fact, a friend who happens to be a millennial pointed out that this is one of the key reasons why her younger sister uses Snapchat in the first place.

Final Thoughts

As experts have pointed out, Instagram offers many things that Snapchat doesn’t, including more users, more high-profile users, and a user interface that is easier to use. Instagram also makes it easier for users to find other people to follow. This makes it easier for brands to get followers and, therefore, get their content in front of potential customers.

On the other hand, Snapchat will probably continue to be a place where teenagers and young adults go to share content that they don’t want their parents to see.

That said, there is a possibility that more adults will continue to try the Snapchat app and use it for its other features.

Since there is an overlap in users and only a finite amount of time in the day, Instagram Stories might decrease the amount of time spent in the Snapchat app. However, it doesn’t look like that is happening so far. Then again, it might be too early to predict the long-term usage patterns within each of the apps.

For marketers, Instagram will likely be the app that they use to reach a larger audience, while Snapchat might be the place to reach a more targeted audience, particularly for brands that want to reach younger consumers.

The real question for marketers is what app will give them a better return on their investment.

Because there are so many factors to consider, it is probably too early for brands to decide which app is the best place to invest in.

The best advice for brands is to keep an eye on both apps and experiment, test, and optimize the content used in both apps. Then allocate more resources to the app that gives the brand the best results.

Having two popular apps that can potentially reach a brand’s target audience in a slightly different way is a good problem for marketers to have.

Photo credit: Patrik Nygren 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 Is Moving Toward the Future of Retail With RFID and Artificial Intelligence

Photo credit: Warren B. on Flickr.Macy’s is once again leading the charge into the future of retail.

Earlier this year, Macy’s announced that it was expanding its use of item-level RFID technology to increase the accuracy of its inventory management system, thus making it easier for the retailer to sell more items both in its brick-and-mortar stores and online.

Recently, Macy’s announced that it is also experimenting with Artificial Intelligence (AI) in an online mobile web tool.

At first glance, these two initiatives seem unrelated.

However, if you look at them more closely, Macy’s is laying the groundwork for something much bigger.

Using AI to Help Choose the Right Outfit

Several news articles explain how Macy’s has started experimenting with AI.

While the retailer most likely has a long-term vision, it looks like the it is starting out with few expectations and is willing to let customers guide their future decisions.

As an article in the Washington Post points out, “Macy’s announced Wednesday that it has teamed up with IBM Watson to use artificial intelligence as a customer service tool in 10 of its stores.  The retailer dubbed the pilot program “Macy’s On Call,” and it will allow customers to type in questions on their phones and receive answers. Unlike some chatbots that can only regurgitate preprogrammed responses based on keywords, IBM Watson will learn over time to give better answers that are customized to individual stores.”

The article states that the retailer is expecting customers to ask where specific merchandise is located, where to find the restrooms, and other similar questions.

However, customers inevitably will ask tougher questions than that.

And, if the AI works as some people hope, the app will give the retailer a way to offer customers a recommendation engine that will help them make purchase decisions and offer additional product suggestions in the same way that Amazon already does.

In fact, other retailers have already started to use AI in this way.

“Macy’s is not the only retailer that is experimenting with some use of artificial intelligence,” Sarah Halzack points out in the Washington Post article. “IBM Watson has already dabbled in using its tools to power other shopping experiences such as a collaboration with outdoor apparel brand North Face on a website that helps shoppers find the right jacket. Users can type in natural-language answers to a host of questions, including “Where and when will you be using this jacket?” and “What activity will you be doing?” Based on the customer’s answers, IBM Watson will serve up some suggested outerwear.”

The Importance of an Accurate Inventory Management System

As I mentioned earlier, in January Macy’s announced its “Pick to the Last Unit” program for fulfillment of customer purchases.

This initiative uses item-level RFID technology to ensure that the retailer’s inventory is extremely accurate.

While the store hasn’t suggested that the new AI fueled “Macy’s on Call” mobile web tool will be tied to the inventory management system, this would be the logical next step.

If combined, sometime in the not so distant future when a customer asks to receive style advice using the new mobile web tool, he or she would not only receive recommendations based on the items that the retailer has for sale, but would also get information about whether or not the products are available at a particular location, at a nearby Macy’s, or if they are only available online.

These are things that sales associates can usually provide. However, when this information is provided to customers on their smartphone, it could save them a lot of time and lead to increased customer satisfaction and more sales.

And, given the fact that the mobile web tool could be used anywhere, this could be another way for Macy’s to capture sales that might end up going to a competitor.

Again, as far as I know, Macy’s hasn’t announced that the mobile web tool will be able to provide this sort of information. However, they already do offer customers the option to buy some items online or in app, and pick up them up in store.

While integrating the inventory management system with the AI mobile web tool might not seem like a big deal, I think a seemless integration of the possible AI recommendations and the ability to tell customers exactly where to find the items it recommends is extremely important.

Hopefully, this is something that Macy’s is planning. I also hope other retailers try similar things.

AI Won’t Replace the Store Associate

Some people wonder why Macy’s is investing in AI when they could have their store associates answer these questions.

And, the reality is that they already do.

However, as studies have shown, many people would prefer to look the information up on their smartphone rather than interact with a sales associate.

This doesn’t mean that the smartphone will replace all store associates, as some people still prefer to have a one-on-one interaction with a real human being. (Note: There is a grocery store in Sweden that has eliminated the need for customer service staff. However, this probably won’t be a common practice for the foreseeable future.)

Furthermore, having sales staff on the sales floor not only helps the store provide better customer service, but they also help decrease theft at the store.

That said, the real reason that Macy’s is experimenting with AI probably has to do with choice.

As Jeff Hasen, founder of Gotta Mobilize, often points out, giving customers the ability to shop and find information in the way that they want to is extremely important.

Final Thoughts

AI won’t replace the store associate.

What it will do is provide customers who want to find information on their smartphones the ability to do so.

And, choice is good.

Therefore, Macy’s is smart to experiment with AI.

In the beginning, there is a good chance that it will be a little bit clunky. However, if the AI learns as experts say it will, the app will get better and more useful as time goes on.

As I also pointed out, the fact that Macy’s has already improved the accuracy of its inventory management system is important.

After all, what good are product recommendations if customer are disappointed each time they go to the specific department to find the item that was suggested only to find that it is out of stock.

Keep in mind, although several articles have suggested it, it is not clear if Macy’s plans to use AI in the specific way that I am suggesting. However, other retailers have started to experiment with AI in this way, and it would be the logical next step in an effort to compete with competitors both large and small, including Amazon.

If you look at it closely, Macy’s is slowly adding new uses of technology in an effort to help improve the shopping experience it offers its customers.

Each new improvement that the retailer makes brings us closer to a retail shopping experience that would have been considered science fiction only a few years ago.

Photo credit: Warren B. 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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Businesses Are Realizing That Snapchat Isn’t Going to Disappear Anytime Soon

Photo credit: Marco Verch on Flickr.For a while now, marketers have debated about whether or not it is a good idea to use Snapchat to market a brand’s products or services.

However, in recent months, the app that is known for its disappearing content seems to have more vocal fans than detractors.

At the very least, more brands are experimenting with it.

The obvious reason for this is the fact that more and more people have started using the app.

In fact, according to a post on the comScore blog written by Adam Lella, “Snapchat isn’t just for teens and college-age adults anymore. While still wildly popular among these younger demographic segments, the ephemeral photo and video sharing app is also rapidly growing its user base among older Millennials (Age 25-34) and those 35 years-and-older. Three years ago, Snapchat’s app was only being used by 5% of smartphone users age 25-34 and 2% of users age 35+, according to comScore Mobile Metrix. Today its penetration among these two age demos is an impressive 38% and 14%, respectively.”

What is maybe more impressive is the fact that 69% of smartphone users age 18-24 use Snapchat.

“Snapchat’s growth has likely been fueled by the introduction of several popular product features over the past few years, which amplified its already powerful network effects,” the author of the comScore post explains. “Most notable among those new product features was the launch of “Stories”, which allows a user’s “snaps” (i.e. photos or videos) to be viewed in a chronological order by their friends an unlimited number of times in a 24-hour period. The Stories feed also includes coverage of various live events or places, in which some of the best snaps from users engaging with that showcased event are curated into one story available to all users. And more recently, Snapchat began regularly adding innovative ways to express oneself, such as “Lenses,” the camera’s creative filter options which make simple photos and videos more fun and entertaining.”

Knowing this, many marketers have started looking for ways to leverage the new Snapchat features to reach all of the customers and potential customers who use the app.

For businesses that are thinking about using Snapchat, here are a few things to consider.

Snapchat Lenses and Geofilters

As Adam Lella pointed out in the comScore post, the fact that Snapchat gives users the option to make their content more fun by providing lenses and geofilters has helped fuel the growth of the app.

While similar, there is a slight difference between a Snapchat lens and a geofilter.

Lenses give users the ability to add real-time special effects and sounds to the user’s Snaps.

By now, you have probably seen the rainbows coming out of a person’s mouth or a person’s face morphed into a zombie. (President Obama used the zombie Snapchat lens in his 2016 White House correspondent’s dinner video.)

Several large brands have also used sponsored lenses to increase awareness of their products or services.

In fact, earlier this year, Taco Bell launched a sponsored lens to celebrate Cinco de Mayo that resulted in 224 million views in one day. According to Adweek, this “shattered a Snapchat record.”

According to the New York Times, a Snapchat lens like this could cost between $450,000 to $750,000. This puts sponsoring a lens out of reach for many businesses.

However, that doesn’t mean that smaller brands can’t get in on the fun.

Snapchat also has geofilters that businesses can purchase for considerably less.

Geofilters are basically digital graphics that can be put over the user’s Snaps to make the current photos or videos more interesting.

In addition to the free community geofilters and the filters that can add various stats like time, temperature, or the speed that a person is going, Snapchat also offers on-demand geofilters that can be purchased by businesses or even users themselves.

The Personal Geofilter can be used to promote weddings, parties, birthdays, graduations, or just about any other event that is tied to a physical location.

A Business Geofilter can be used to help promote sales or any other event that is taking place at the business.

According to a LA Times article, these geofilters can be purchased for as little as $5 depending on when and how large of an area you want to include.

This inexpensive price makes it possible for local bars and restaurants to experiment a little.

Snapchat Stories

As mentioned in the comScore article, the other feature that has helped fuel Snapchat’s growth is the introduction of Snapchat Stories.

Again, the Snapchat Stories feature lets friends view a user’s Snaps an unlimited number of times within a 24-hour period.

A lot of brands are using Snapchat Stories to give users a behind the scenes look at the business, offer an all-access view of an event, offer surprise coupons and discounts, or create an interesting story that connects with customers.

For example, Red Bull often lets influencers take over their account in order to let users see what it is like to live and compete in some of the extreme sports that fit the brand’s image.

Other brands like Express are using Snapchat to highlight some of the items that they have for sale and then ask for engagement with the brand. They then acknowledging those who do respond, which is a great way to make customers feel valued.

These are just a few suggestions. There are many different case studies to be found on the Internet.

Also, you need to understand that any brand can create Snapchat Stories, and these shouldn’t be confused with the content provided on Snapchat Discover.

Not Everyone Is a Fan of Snapchat

I started this post off by mentioning that there has been a debate going on about whether or not brands should invest in Snapchat.

And, while a lot of brands have started to at least experiment with Snapchat, others think that it is a waste of time. These people often list measurement issues among their largest concerns.

In a Forbes article, Mark Fidelman explains the concerns that he has with Snapchat.

Many of his complaints are similar to others I’ve heard before.

However, the one point that he makes that really hits home with me is the fact that when a person sees your content on Snapchat, there is no way to send them to your website or blog using a clickable link. This not only makes it difficult to drive sales, it also makes it difficult to attribute a conversion to Snapchat. And, the fact that there aren’t any links from the app means that your efforts won’t help with SEO at all.

Final Thoughts

There are definitely issues that make it difficult for some businesses to justify investing in Snapchat to market their products or services.

However, given the fact that a lot of people have started using the app, it might make sense to invest at least a part of your marketing spend on the app.

If done right, using Snapchat can be a fun way to connect with your current and potential customers.

In my opinion, this is an app that I would keep an eye on and try a few things, but it is not a place that I would invest a lot of time in. At least not now.

That said, I also don’t think that Snapchat is going disappear anytime soon.

It is just somewhat difficult for businesses to use Snapchat to market their products and services. And, it’s even more difficult to measure the results of these efforts.

This, however, might be part of the reason why so many people have started using Snapchat.

Photo credit: Marco Verch 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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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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Showrooming, Webrooming, and the New Reality of Omni-Channel Retail

Photo credit: Jason Howie on Flickr.A few years ago, some retail experts speculated that mobile phones and online retailers would put many brick-and-mortar stores out of business.

They thought that these brick-and-mortar stores would become nothing more than showrooms where customers would go to check out and try on merchandise, only to purchase the items online at a better price. Thus, brick-and-mortar stores would become less profitable, forcing some to shutter their doors.

Fast forward a few years and we now know that brick-and-mortar stores are not going anywhere anytime soon. In fact, it is estimated that over 90% of current retail sales still take place in a brick-and-mortar store.

As I have pointed out in the past, Forrester Research predicts that online sales will rise in the next 10 to 15 years to as much as 25 percent of total sales. However, that means 75% of retail sales will still take place in a brick-and-mortar store.

While the prediction of the demise of the brick-and-mortar store was premature, changes in the way that many customers shop often resembles the definition of showrooming, or at least a slight variation of it.

Therefore, even though many sales still take place in a brick-and-mortar store, retailers can’t rest on their laurels.

What Is Showrooming and Webrooming?

According to Wikipedia, “Showrooming is the practice of examining merchandise in a traditional brick-and-mortar retail store or other offline setting, and then buying it online, sometimes at a lower price. Online stores often offer lower prices than their brick-and-mortar counterparts because they do not have the same overhead cost.”

“The reverse phenomenon is webrooming,” says Wikipedia. “In webrooming customers research a product online and buy in a store.”

A Broader Definition of Showrooming

In his book, “Mobile Infuence: The New Power of the Consumer,” Chuck Martin, author and CEO of the Mobile Future Institute, examines showrooming and its effect on retail.

In the book, Martin highlights the results of a 2012 study conducted by ForeSee.

This study provided insights that slightly change the way that we look at showrooming.

“Many retailers that focus on dealing with showrooming, discussed in an earlier chapter, tend to view it as an in-store-only phenomenon,” writes Martin in his book. “A key finding in the ForeSee study is that a large percentage of the mobile usage related to retail is being done at home while preparing to visit a store. This is precisely the pre-buy phase of mobile influence. This means that the actual showrooming may not be as significant in scope at the physical store, since the activity of shopping via mobile is not location-dependent. It can be done anywhere.”

Larry Freed, president and CEO of ForeSee is quoted as saying, “Showrooming is happening, but it’s not happening at breakneck speed. Retailers need to be aware of it but realize it’s just another method of competitiveness.”

In a post on the K3 Retail blog, Chris Donnelly, head of global retail practice at Accenture, is quoted as saying, “The first thing I’d note is that retailers have been showrooms for centuries… If you can’t close the deal when someone is in your store looking to buy, then shame on you. But that aside, what we’re actually finding is that the trend is increasingly the inverse. We call this ‘webrooming’, where a product is researched at home, then consumers go into the store to buy… Yes, online is the side of retail growing the most in the next five years, and we expect 10 to 20 per cent of sales to be online. But that means 80 to 90 per cent are still occurring in-store.”

According to the K3 Retail post, “Research by Accenture found that 73% of shoppers engaged in “showrooming”, while 88% of consumers used “webrooming” as a shopping strategy.”

The New Reality of Omni-Channel Retail

Study after study is proving that customers are researching the products and services that they intend to buy through multiple channels. This includes at a brick-and-mortar store, on a desktop computer, on a smartphone or tablet, via the telephone, in mobile apps, and in any other way imaginable.

And, while most sales are taking place in brick-and-mortar stores, customers do buy products via other shopping channels.

Therefore, because customers can now research products at any time that is convenient to them and are using multiple channels to do it, every transaction that includes an interaction with the customer in a brick-and-mortar store and an online or mobile store has the potential to be classified as an instance of showrooming or webrooming. The only difference is when and if the retailer closes the sale.

To complicate this further, a customer in a brick-and-mortar store could check out merchandise at one brick-and-mortar store, research prices online, and then go to another brick-and-mortar store to buy the item because the other store is selling the product for less.

Is this showrooming? It could be classified that way.

However, who really cares about how we label it?

The reality is that retailers shouldn’t care if their customers buy from them in a brick-and-mortar store or if they buy from them online. What they need to worry about is whether or not customers are buying from them or if they are buying from the competition.

Therefore, they should be making sure that they are offering the best possible shopping experience to their customers at every touch point and giving them the ability to purchase the product quickly and conveniently from wherever and whenever the customer wants to.

Final Thoughts

Retailers should be worried about showrooming and webrooming.

But, not because they care about how the customer is buying from them.

It shouldn’t be a battle between brick-and-mortar stores and online retailers. The real competition is the other retailer, not the medium or channel that customers are using to interact with the store.

As Brian Eisenberg, chief marketing officer at IdealSpot, is quoted as saying in an Click Z article, “Retail doesn’t exist without an online component and online retail isn’t as cost-effective if you don’t have a brick-and-mortar component. We’re connected all the time through the phones in our pockets, but we live in a physical world.”

Therefore, retailers should offer customers a consistent and seamless shopping experience across all shopping channels, from the brick-and-mortar store to the online and mobile store and everything in-between.

They need to optimize for conversion and customer experience in every channel so that the store is the best place to shop no matter how or when the customer wants to.

By focusing on what customers need and creating a better shopping experience than the competition everywhere customers shop will eliminate the need to worry about showrooming, webrooming, or whatever you want to call it.

Photo credit: Jason Howie 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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User-Generated Content Is Fuel for Recommendation Engines

Photo credit: Andri Koolme on Flickr.By now, most business leaders have heard that word-of-mouth recommendations from friends and family play a large role in the decision making process for many consumers.

With this in mind, many of these same business leaders have also accepted that social media should be leveraged, and have thus established a presence on the most-used social networking sites. Many have even gone the extra mile and actually engage with their customers on these sites.

But, what is often most important is what customers do and say online.

The beautiful product photos, positive reviews, and check-ins that customers post spread awareness about the businesses, products, and services that they use and hopefully like.

What they also do is leave a permanent record of a positive (or negative) interaction that a customer had with a brand.

As you know, if it is posted on the Internet, it can possibly live on forever.

What we don’t often think about is that these posts can lead to future sales by helping recommendations engines provide more targeted and accurate suggestions to future customers.

What is a recommendation engine?

In the context of what I am referring to, it is an information filtering system that helps a business recommend items to customers that they might be interested in. For additional information, Wikipedia has a good explanation.

If you want to see an example of a business effectively using a recommendation engine to help its customers find products, visit Amazon.com. The Amazon.com recommendation engine uses a combination of several input data, including past purchases, product ratings, and social media data.

Social Networking Sites Offer Suggestions

Several social networking sites understand that the data that they collect can be very useful and have harnessed it to offer recommendations to users directly within the site.

Foursquare is a great example.

In his book, “Mobile Influence: The New Power of the Consumer,” Chuck Martin describes how Foursquare is using its data to offer better suggestions to its users.

In the book, Eric Friedman, director of sales and revenue operations at Foursquare, states, “From the very first check-in, we get smarter at what we recommend. If you check in to a series of places, we will make a better guess at what you are looking for. If you love small coffee shops and you go to a city and type in ‘coffee shop,’ guess what we are going to recommend? A small, independent coffee shop. If you are a guy that loves a big coffee house and you go to a different city or country and type in ‘coffee,’ we are going to give you recommendations based on your history. If we were friends on Foursquare and I was in downtown Boston and I saw Chuck had been to a cheeseburger place five times, that is a great signal for me to go to the same place for lunch because I know Chuck and he knows good cheeseburger places and I like Chuck.”

The book goes on to explain other ways that Foursquare is using its app and the data it collects to give its users targeted and relevant suggestions based on their location, past check in history, and the check in history of the people who they are connected to.

If you want another example, check out Yelp.

As you are probably aware, Yelp is an online review site that allows users to review businesses that have a brick-and-mortar location. This data can be used directly within the site to find a specific type of business based on its location and the reviews that it gets from Yelp’s users.

Yelp has an algorithm that that helps surface the most trusted reviews from the most reliable sources.

It is also noteworthy that Yelp reviews often show up in the results that users get when they search for information on Google.

Every Post on a Social Networking Site Could Potentially Be a Source of Data

The examples that I gave demonstrated how social media can be used to help users find businesses based on data collected within the social networking site itself.

However, everything that users post on social networking sites can be used by a third party to help consumers make purchase decisions. (As mentioned, Yelp reviews show up in Google SERPs.)

To illustrate this further, think about all the photos of the delicious meals that users post on Instagram.

A photo posted by Chad Thiele (@chadjthiele) on

Knowing that people often post photos of their food, the app MyFab5 encourages users to use these Instagram photos to rank the five best places for a specific type of food in a specific city.

The concept is rather simple (i.e., use food photos to rank the five best places for a specific type of food in a specific city.) The app then uses an algorithm to surface the best places to get a specific type of food based on users rankings. For example, according to MyFab5, here is a list of the best places for burgers in Minneapolis, Minnesota.

While this data again leads back to a brick-and-mortar location, it shows that anything that users post is fair game.

Given the vast amount of data out there, there will be other businesses that will harness other types of user-generated content to help make recommendations to other consumers based on hashtags, keywords, geotags, or other data that are included in posts on social networking sites.

Therefore, it is important that businesses find ways to ensure that these recommendation engines find more positive posts than negative ones.

Final Thoughts

As I have pointed out, the product photos, reviews, check-ins, and other posts on social networking sites not only work to influence the people who are connected to the users who create the content, but they also can have a larger impact on future sales when they are used to fuel recommendation engines.

So what can businesses do to help encourage customers to create user-generated content that displays the brand in a positive light?

The answer to that question depends on the situation.

However, the most important thing is to provide great products and services to customers.

Providing excellent customer service is also key.

In the end, businesses not only want customers to use their products and services, but they want the experience that they have with the brand to be positive. So positive that customers can’t help but share the love of the brand online.

Because what is posted online can live on forever and we can’t predict how other businesses will use that data in the future.

Photo credit: Andri Koolme on Flickr and 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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Five Basic Things Retailers Can Do to Integrate Social Media into the Offline Shopping Experience

Photo credit: Lisa @ Sierra Tierra on Flickr.A majority of consumers in the United States own a smartphone.

That means that they have the ability to research products, compare prices, and share their experiences on social networking sites while they shop in a retailer’s brick-and-mortar store.

While there are retailers out there that are doing some very cool things to take advantage of the fact that their customers are talking about their shopping experiences on social networking sites, many businesses are missing out on some of the most basic opportunities to leverage the power of social media.

And, by basic I’m not talking about using social media monitoring tools to engage with customers and meet their needs while they are in a store or even a competitor’s store. By the way, this is something that retailers should be doing.

What I am talking about are some of the even more basic things that retailers could be doing to encourage interactions and social sharing that would involve very little effort on the retailer’s part. That said, I have noticed that many retail stores just aren’t taking these basic steps.

Tell Customers Where They Can Connect on Social Media With Point-of-Sale Displays

No matter how efficient the retail store is, it is inevitable that customers are going to have to wait in line for a few minutes at the check-out counter.

Many of these customers are already using their smartphones while they wait.

This makes it the perfect time to mention the store’s social media presence, as they could instantly connect with the store online.

A simple way of doing this would be to have a sign located near the check-out counter that mentions where to find the store on social networking sites. This could also be a place where the store could encourage customers to leave a review on one of the online review sites. (I know waiting in line sounds like a bad time to ask for a review, but customers do expect to wait for a few minutes.) Retailers could also mention the store’s mobile app, if applicable.

It should be noted that if the retailer’s sales staff are providing horrible customer service or there are excessive wait times, this signage could encourage customers to vent their frustrations. However, even bad feedback can be considered a gift if it helps the store identify problem areas and allows them to make corrections.

On the other hand, if the store is providing great customer service, public praise on social networking sites can be some of the best advertising a business can get.

Mention Where to Connect Online in the Mobile App and Mobile Website

If the retailer’s customers have taken the time to download the store’s mobile app, they already have an interest in the store or the store has given them a good enough incentive to do so.

By using the store’s mobile app to let customers know how they can connect with the business on social networking sites, there is a good chance that the store will be able to build relationships with some of its most loyal customers, many of whom have the potential to become brand advocates online.

It is important that retailers test to make sure that their customers find this information useful.

That said, with the right design, the mobile app can be a great way to help increase awareness of the store’s social media presence.

And, given that customers are already using their smartphones makes it possible for them to connect to the store on social media with only one or two taps of a finger.

The same is true for customers who are visiting the retailer’s mobile website.

It is important to note that the mobile website is a great place to be able to connect with customers who might be visiting a store for the first time. By providing them with other ways to connect to the business online can help encourage repeat business and possibly help turn them into brand advocates in the future.

Furthermore, whether it is on the mobile app or the mobile website, if your business provides product information or the option to purchase items online, making it easy for customers to share this information with their network on social media by including social sharing buttons is highly recommended.

Mention the Social Media Presence in Brochures, Flyers, Print Ads, and Other In-Store Signage

If the business uses print advertising, there is a good chance that copies of it will find their way into the store and onto the sales floor.

Therefore, providing information about how to connect online is also a must for many of the same reasons mentioned above.

Encourage the Sales Team to Mention the Mobile App and How to Connect on Social Media

The sales team not only has the opportunity to sell the products the store has on its shelves, they also have the opportunity to create awareness of the store’s online presence, including the mobile website and mobile apps, as well as how to connect on social media.

While it might not be appropriate to talk about how to connect with the business online with every customer, there are definitely times when this knowledge could lead to positive mentions online. This is particularly true when the customer is really happy with their shopping experience.

Therefore, the sales team should be trained about the importance of the mobile website, mobile apps, and social media so that they can educate customers when appropriate.

Photo credit: Simon Yeo on Flickr.

Remember Hashtags are Important

As anyone who has spent any time using social media knows, people like to share photos and information with their network when they find something interesting or get a really good deal. This is particularly true when a customer is a huge fan of the business.

Because customers are probably already sharing photos and information about the products that the store sells, it would be a good idea for the retailer to create a hashtag that allows customers to connect with other like-minded individuals. This will help create a community and possibly increase the demand for the products that the store sells.

Final thoughts

Many consumers are already using social networking sites to share photos and information about the products that they find in their favorite stores.

Therefore, it is in a retailer’s best interest to help create awareness of the store’s online presence and to make it easier to share information about the store and the products it sells.

While there might be business reasons not to do all the things mentioned in this post, many would take very little effort and could help encourage customers to share the love of the store, create a community, and connect customers with brand advocates and other like-minded individuals.

Many retailers are already investing in social media marketing. By taking these small steps they could help increase awareness and get folks sharing the love of their store online.

Photo credits: Lisa @ Sierra Tierra and Simon Yeo 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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Why Inventory Management Systems Are So Important to the Future of Digital Marketing

Photo credit: Garry Knight on Flickr.

When consumers shop online, they are often given recommendations based on some criteria (e.g., past purchases, reviews, similar items searched and viewed, etc.)

These recommendations often help consumers find the items that meet their needs and ultimately lead to increased sales.

When a brand or retailer recommends a product to a consumer online, they usually follow it up with a link to a website that allows the consumer to purchase the item. Furthermore, online retailers use remarketing strategies to target advertising to consumers who visit a particular product page on their website, but don’t make a purchase.

By targeting consumers on their mobile devices, brands and brick-and-mortar stores can use similar marketing tactics that will help connect consumers to the products that are sold offline.

However, customers will be frustrated if they are told that an item is available at a specific location offline only to find out that the item is sold out when they arrive at the store.

If this happens enough, customers will lose faith in the reliability of the source that pointed them to the store in the first place. It can also have a negative impact on the reputation of the brand and the retailer.

Therefore, in order for this to process to be most effective, customers need to feel confident that an item will be available for sale when they make the trip to the brick-and-mortar store.

This is why having an accurate inventory management system in place is going to be so important to the marketing efforts of retailers and the brands that they sell.

As I mentioned in an earlier post, retailers can now use RFID technology to help accurately track inventory levels and locate particular items in the brick-and-mortar store. This is true even with difficult-to-track products.

Brands Are Looking to Target Customers Based on Geolocation

As I wrote about in the aforementioned blog post, Steve Madden’s website gives customers the ability to check for items in the brand’s brick-and-mortar retail stores based on geolocation.

However, Steve Madden also partners with other retailers to sell its products. It hopes that, in the future, customers will be able to search for its products in all retail locations—wherever they are sold.

Photo credit: T van Herwaarden on Flickr.“As Steve Madden continues to grow, we are faced with a variety of issues that affect sales, marketing, fulfillment and the delivery of consistent brand messages, product information and exceptional customer experiences,” states Andrew Koven, president of e-commerce and customer experience at Steve Madden, in an article on Forbes.com. “We decided to focus our mobile strategy to help build more sales of Steve Madden products and deliver great service, whether through our own stores or a retail partners such as Macy’s, Nordstrom or Zappos. It would not be uncommon for a customer of a retail partner to view Steve Madden’s mobile site while in their store or to compare prices and we recognize the value add we can provide. Mobile is both financially viable and the optimal way for Steve Madden to offer a brand centric benefit to the entire business. Ideally, we want to ensure that all of our partners do well. Perhaps we could make all retail inventory universally visible to consumers and collaborate with our partners to ensure that consumers can find our products easily while at the same time supporting everyone’s success.”

No doubt, Steven Madden is not alone.

Retailers Don’t Want to Be Left Out When Brands Advertise

There are already companies that are trying to meet the needs of brands that want to drive consumers to nearby stores to purchase their products by reaching these consumers on their mobile devices.

In episode #346 of the Mobile Commerce Minute, Chuck Martin explains that by tracking inventory levels at more than 100,000 brick-and-mortar stores, Retailigence is helping connect the consumer to products at nearby retail locations.

As Chuck Martin explains, Retailigence allows a consumer packaged goods (CPG) company to reach a consumer within a geofence around a store by helping it purchase all the ad inventory from the ad networks that partner with the Retailigence platform, thus driving consumers into only the stores that have the product the customer is looking for. This allows brands to link consumers directly to products.

In the future, many more options are going to be available that will help brands connect consumers directly with their products that are sold in brick-and-mortar stores. This would include, but would not be limited to, adding product availability data to online and mobile search, social media, display, and video advertising to reach customers and prospects on the go.

Adding the product availability information layer to the advertising could make the difference in the conversion process.

However, again, if the a retailer doesn’t have a database with accurate inventory levels, customers could lose faith in the whole process and the reputation of the brand, the retailer, and the source that drove them to the brick-and-mortar store in the first place could all be tarnished.

This could force some brands to not include a retailer in the recommendation process.

And, as Chuck Martin points out, brands are the ones with the advertising budgets.

Therefore, not having an accurate inventory management system could cost a retailer more than it had in the past because a brand’s advertising for a particular product would point customers to other brick-and-mortar retail stores.

Final Thoughts

Technological advancements in retail inventory management systems are going to impact sales in many different ways.

As I pointed out in the last post, the use of RFID technology can help give retailers the confidence to sell items online that it would have had to markdown and sell at a drastically discounted price. It will also save the retailer time and money by making other processes more efficient, including the buy online, pick up in-store option.

Furthermore, as I elaborated on in this post, the increased accuracy that RFID technology brings to a retailer’s inventory management system will be useful in helping brands and retailers connect consumers with the products that best meet their needs by adding product availability information to the brand’s online and mobile marketing campaigns.

If a retailer can’t provide accurate inventory data that can be used in a brand’s digital marketing efforts, there is a good chance that the retail store would not be listed as a possible location to buy a particular product. This will hurt the retailer’s bottom line.

However, when a retailer can provide accurate inventory data that brands can use in their marketing efforts, it will help the brand link the customer to the product.

And, as Chuck Martin points out, “…that’s sort of the holy grail of this whole thing.”

Note: The Mobile Commerce Minute Episode #346 with Rob Woodbridge and Chuck Martin is embedded in this post. For additional information, visit the UNTETHER.tv website. 

 

Photo credits: Garry Knight and T van Herwaarden on Flickr.

Video credit: MCM #346: Is inventory the new location for retailers? on UNTETHER.tv

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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