Tag market research

Think About What You’re Sharing Online: Is That Statistic Really Accurate?

Fake StatsThere is a lot of information being shared on the Internet.

This is great if it is used to entertain, mobilize people to action, or help people make educated decisions.

The problem is that people often share things online without really thinking about what they’re sharing. This leads to the spread of misinformation, rumors, or even the dreaded fake news.

When evaluating the validity of the information that we share, we need to look at the words that are used and the statistics that are provided as supporting evidence.

This post focuses on the latter—the statistics.

This is a topic that I have written about a few times in the past.

In fact, each of the subheadings listed below is a headline or title of a former blog post.

I feel it’s time to revisit these posts, because the lessons that can be learned are of the utmost importance.

The Importance of Reliable Sources

Maybe the most important thing to do when evaluating the data that you see online is to ask yourself whether or not the source providing the information is credible.

If the source is unknown to you, be skeptical.

If the information is coming from a reliable news outlet, chances are the information was fact-checked.

However, with the increased emphasis to be the first one to report the news, even the experts make mistakes. Typos are inevitable. After all, the writers are human—at least they are most of the time.

Therefore, it is often a good idea to check with the original source before making any major business decisions based on data you find on the Internet.

Mind Your Bases When Analyzing Data

Checking with the original source is also a good idea because percentages can be misleading.

In fact, if we don’t know what population the percentages are based on, then the percentages are virtually useless.

Furthermore, if only part of the data gets shared or data tables get recreated, an incorrect population or subpopulation is often assumed. In this case, the percentages can be extremely misleading.

A similar thing can occur if quotes are taken out of context.

If you have the time, I strongly recommend that you read my original blog post on this topic, as it goes into further detail about the importance of knowing what population or subpopulation percentages are based on.

A Lesson Worth Remembering: Correlation Doesn’t Imply Causation

This one is pretty self-explanatory, but it is also one of the things that we’re all guilty of forgetting from time-to-time.

It is therefore not surprising that many college professors try to drive this lesson into the minds of their students.

The key thing to think about here is that when analyzing data, you can’t always assume that just because there is a positive or negative correlation between two variables, that one is causing the other to occur.

In some cases, it might be a third unknown variable that is influencing the change in one or possibly both of the original variables.

Weight – Are Your Survey Results Biased?

This topic might be getting into the weeds a bit, but I feel it is important enough to bring up.

If the data that is being reported is not based on a complete census of a population, then there is inevitably going to be a disproportionate number of respondents from a demographic group that can lead to biased data.

Weighting is basically a way to be sure that the data that you are using to make population estimates actually reflects the true population distribution.

For example, according to the United States Census Bureau, 50.8 percent of the 2010 Census population were female, while 49.2 percent were male.

Now, assume that we conducted a research project in 2010 where two-thirds of the respondents were female. If female respondents are also more likely to respond one way or the other on a particular question, then the estimate for the overall percentage of United States citizens who feel one way or the other for that topic would be biased.

This is something that I think many people who are conducting survey research today often overlook.

While weighting your data might not seem like a big deal, it can potentially have a huge impact on the overall estimates of the averages, ratios, proportions, or percentages for a given population.

Again, if you want to learn more, check out the original blog post that I wrote in 2011.

Final Thoughts

If you spend any time reading information shared on social media, you know that there are a lot of statistics being cited to support opinions about all sorts of topics.

Sometimes the statistics are coming from a reliable source. On the other hand, sometimes it seems like the numbers were just made up. In other words, they are fake statistics.

As I have pointed out in this post, even if the data is coming from a reliable source, it is often a good idea to check with the original source before making any business decision that will have a big impact on your company.

A lot of things can happen when data is passed on from one person to another online.

As I have said before, it is ultimately the responsibility of the consumer to make sure that the information is factual before making decisions based on what he or she read, hears, or sees on the Internet.

Hopefully, this post will help give people some idea of what to look for when deciding what statistics to believe and what ones to dismiss.

Photo credit: craftivist collective on Flickr. (Creative Commons Attribution 2.0 Generic license – CC BY 2.0.)

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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The Future of the Retail Sales Associate—Another Reason Why Retailers Need to Provide More Mobile-Optimized Content Online

The Future of Retail Sales AssociatesThe way customers shop, in general, is changing with more and more customers going online to research and buy products. Furthermore, smartphones have also modified the way customers shop in brick-and-mortar stores.

This means that retailers are going to need to rethink everything. And, that means everything.

For store employees, this means that their world is going to be altered dramatically.

In 2014, Doug Stephens, one of the world’s foremost retail industry futurists, wrote a very informative blog post that predicts what a “typical” retail sales associate’s job will look like in the near future.

In the post, he predicts that in the near future there will be fewer humans working in brick-and-mortar retail stores, with technology there to fill in the gap.

In the post, he cites a study from Oxford University that estimates that there is a 92 percent chance that retail sales associates will be replaced by technology in the next decade. (Keep in mind, this was over four years ago. Therefore, if the predictions are accurate, retail sales associates should be retraining for other positions now! Even if it takes a little longer than experts think it will, the world that they are predicting will arrive someday… soon.)

While this is an alarming figure, people who want to work in retail stores should be heartened by the other prediction that Doug Stephens makes—that those employees who do survive will be paid much higher than they currently are. But this is going to mean that they also are going to need to get a lot more training.

Other sources again support his position.

Some of the recent articles that discuss retail trends point to the fact that there will always be a need for some human salespeople at most brick-and mortar stores. However, they will have a slightly different background.

As far as I can tell, four types of non-management employees will emerge to replace the generally unskilled workforce that currently fills many of these low-paying retail sales associate jobs.

Professional Salespeople—The Customer Service and Product Experts

In the blog post mentioned earlier, Doug Stephens writes, “Although retailers will point the finger at price as the smoking gun behind showrooming, research shows that in fact, it’s more often the pursuit of adequate and accurate information that drives customers online.”

Therefore, in order to compete with online retailers, brick-and-mortar stores are going to have to hire a core group of employees who really know their stuff.

These employees won’t be the ones who check people out at the cash register.

They will be like the salespeople of old who thought of their position at the store as a career, not just a place to work until they find other jobs. These employees will be experts in customer service and they will know everything about what they are selling.

The stores that realize that there is a need for this type of employee and hire and train people who really want to excel at their job will be the stores that will succeed.

As Doug Stephens also points out, the people who fill these positions will be paid more than the average salary of a retail sales associate today.

This probably means that stores won’t hire many of these employees, if they still want to keep their costs down. But, the employees who are hired to fill this type of role will be an invaluable resource to customers and the store.

To be qualified for this role, the employee will also have to invest in additional training.

Organizations like the National Retail Federation (NRF) are already recognizing that this type of training is needed and have begun offering it at a reasonable price.

Part-Time Associates—Knowledgeable Salespeople Augmented With Technology

This group of employees will most resemble the current retail sales associate.

They will be the young adults who are working their way through high school or college. They will have some basic product knowledge and business acumen. And, they will have grown up using technology, therefore they will be very comfortable assisting less tech-savvy customers with the technology that the store will use to assist in the sales process.

They will also use technology (e.g., smartphones, tablets, etc.) to access mobile-optimized content that will answer the product-related questions that customers have.

Because these employees will be in the process of completing their training, these positions will probably still be on the lower-end of the pay scale. However, to attract the best employees, retailers will still have to pay more than minimum wage.

With technology to augment the sales process, fewer of these associates will be needed on the sales floor of tomorrow.

Temporary Workers—The On-Demand Workforce

The gig economy is here, with some employees being hired to work for only a short duration of time to fill a specific business need.

As a Washington Post article points out, it is already changing the workforce in many mainstream restaurants (e.g., Five Guys, McDonald’s, Papa John’s Pizza, etc.)

Will brick-and-mortar retail stores be next?

Retailers have always hired temporary workers around the holidays. This would just take this concept to the extreme.

It is entirely possible that stores could hire employees for one or two days to staff a large sale similar to those on Black Friday.

And, again, if stores bring in the right technological solutions to assist with the sales process, these temporary workers could be quickly trained to work the cash register or again help the less tech-savvy customer in the shopping process.

Some retail experts say using temporary workers is a bad idea. But, the reality is that only time will tell.

Non-Human Employees—Mobile-Optimized Online Content and Other Technological Solutions

The fourth type of employee that will replace the current retail sales associate is not a human at all. However, in many cases technological solutions will be able to do the same job… maybe even better than the current retail sales associate can.

As mentioned above, customers are already reaching for their smartphones to get product information while shopping in brick-and-mortar stores. In fact, some customers would rather use their smartphones to find product information than talk to the retail sales associate on the sales floor.

This might be because they often get incorrect or incomplete information from improperly trained retail sales associates. Therefore, we might have a chicken and the egg situation at play.

Either way, the one thing we do know for certain is that customers want to be able to quickly and efficiently find product information either online via their smartphone or by talking to a retail sales associate.

Having the right information available online is going to be a must for the retailer of tomorrow. And, as mentioned above, it will also help human salespeople do their jobs better.

As Doug Stephens points out in his post, there are companies like Hointer that are working to bring additional technological solutions to market to help automate the retail sales process even further.

However, I will leave that topic for future blog posts.

Final Thoughts

In order to compete, brick-and-mortar stores will need to be able to provide customers with the same accurate and complete product information that they can find on Amazon or other online retailers.

If the brick-and-mortar store provides the information first, customers will have one less reason to visit another store’s website or mobile app, and therefore will be less likely to use the store as a showroom only to buy the product elsewhere.

This can be accomplished by having better trained retail sales associates and by creating the right mobile-optimized content that customers can search for on their smartphones and tablets. Furthermore, other technological solutions like “smart mirrors” in fitting rooms will also be used to deliver product information to customers.

Given the changes in the marketplace, it’s not a question of whether to invest in employees or in technology.

Successful stores will do both.

In fact, technology will help less knowledgeable retail sales associates meet the needs of the store’s customers more efficiently and effectively. In other words, in many cases technology and humans will work together to provide a better shopping experience.

Note: This is a very general prediction of what the “average” retail store of the future will need to do in order to meet the needs of its customers. There will be variation based on the products and services sold, who shops at the store, the store’s location, etc.

Photo credit: Zepfanman.com on Flickr. (Creative Commons Attribution 2.0 Generic license – CC BY 2.0.)

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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Fashion Retailers Could Benefit by Providing Basic Fashion Tips Online

Fashion TipsIt has been well documented that consumers often turn to their smartphones while shopping.

In fact, according to a study conducted by Salsify in September of 2016, 77% of all shoppers report using mobile devices while shopping in a brick-and-mortar store. In comparison, only 35% say that they would turn to a salesperson to obtain similar information.

As a Salsify press release published in April of 2017 states, “With so many turning to mobile while shopping in-store as well, the need for strategic and informed product content has never been more essential. In fact, 87 percent of consumers say accurate, rich, and complete product content is very important when deciding what to buy.”

A study conducted by Retail Dive examined how consumers use smartphones while shopping in a brick-and-mortar store. The most common response to the question was to research products and/or look up product information (58%), followed by checking or comparing prices (54%), accessing or downloading digital coupons (40%), accessing a specific retailer’s mobile app (33%), and scanning a QR code (22%).

The type of product information that retailers will want to provide will vary from store to store based on the products and services sold, the customers it serves, the time of year, where the store is located, etc.

While some content could be expensive to create, sometimes providing basic information could be enough to help convince the customer to make a purchase.

For fashion retailers it could be as simple as providing basic fashion tips to customers.

Insight From the Sales Floor

Recently, I have spent some time selling men’s clothing at a department store just outside of Saint Paul, Minnesota. In that time, I have witnessed many customers using mobile devices while shopping in-store.

While it appears that many of these customers are taking photos to send to another person to see if they approve of a purchase, I would venture a guess that other times customers are using their smartphones in the ways reported in the studies that I wrote about earlier in this post.

If the questions that customers ask associates is any indication of the information customers are searching for on their smartphones, then providing basic style advice should be something that fashion retailers would want to provide on their mobile websites and apps.

Suit photoIn particular, online fashion tips could be extremely useful to customers who are purchasing clothing that they don’t often purchase (e.g., suits, ties, dress shirts, etc.) This would include explaining the correct fit, as well as letting customers know what articles of clothing compliment each other.

And, if the information provided online is optimized for search, customers might find it while shopping in a competitor’s store. While this might seem like you are helping the competition, just think about where the customer will turn to if your competitor can’t deliver the goods. My guess is that those customers would at least consider shopping at the store that just provided the information that they were looking for.

Providing this type of basic information wouldn’t cost the company that much.

However, a quick search on Google brings up a lot of information from fashion bloggers and websites like Esquire and GQ, but not much from major department stores, fashion retailers, or even the top designer labels.

Either they are not providing this information or they are not doing a good job of optimizing their content for search engines. In their defense, I did find some information from Macy’s and Nordstrom. However, they didn’t show up in all searches that I did. Furthermore, I think that additional information might be useful.

Keep in mind that I only searched for information on men’s suits. It’s possible that they provide more information for other types of clothing. Additional research would be required to get a more accurate picture of what information fashion retailers are providing their customers online.

Final Thoughts

Studies show that finding the right online content is very important to consumers who are looking for product information when they are deciding what to buy.

Because consumers are now searching for that information while shopping in-store, a time when they are actually going to make a purchase decision, providing the right information is now even more important than ever before.

If the questions that customers ask sales associates is any indication of what information customers are looking for, then fashion retailers and department stores should be providing basic style advice and fashion tips to customers. This is particularly useful for products that customers don’t buy often and are being purchased for specific important occasions (e.g., weddings, school dances, graduations, etc.)

Since department stores can’t control how customers search, this information should be available to customers in as many ways as possible. This would include on mobile apps and on the mobile web. Letting customers know that it is available through notifications on in-store signs might also help increase conversions.

Sales associates could also help get the word out that this type of information is available to customers who don’t want to engage in a conversation. This information could also be used as a visual aid when associates are helping customers.

Finally, don’t forget to optimize your content for search. Because if customers can’t find it, then it doesn’t exist.

Photo credit: Angelbattle bros (Creative Commons Attribution-NoDerivs 2.0 Generic license – CC BY-ND 2.0.) and Banalities on Flickr. (Creative Commons Attribution 2.0 Generic license – CC BY 2.0.)

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 New Study Finds That Improving Customer Satisfaction Really Is Good for Business

Photo credit: Iman Mosaad on Flickr.For years, marketing consultants have said that improving customer satisfaction is the key to success.

However, while most business leaders would agree that customer satisfaction should be a top priority, many executives have only given it lip service.

A new study from researchers from Michigan might change this, as they found that purchasing stock from companies with high customer satisfaction levels proves to be a good investment strategy.

These findings should be good news for everyone involved.

But, in the long run, the most notable winners could be consumers.

Higher Customer Satisfaction Indirectly Leads to Higher Stock Prices

As reported in a Science Daily article, a group of researchers from Michigan have found a link between customer satisfaction levels and higher stock prices.

According to the article, “Using 15 years of audited returns, researchers from Michigan State University and University of Michigan found creating a stock portfolio based on customer satisfaction data achieves cumulative returns of 518 percent.”

“This compares with a 31 percent increase for the commonly used Standard & Poor’s 500 Index in the same time period,” the article continues. “On an annual basis, the customer satisfaction portfolio outperformed the S&P 500 in 14 out of 15 years.”

The findings suggest that customer satisfaction is more important than many people think it is.

The researchers also warn, however, that there no direct correlation between customer satisfaction and stock prices.

According to an article published in the Journal of Marketing, “We also find that the effect of customer satisfaction on stock price is, at least in part, channeled via earnings surprises. Consistent with theory, customer satisfaction also has an effect on earnings themselves.”

In other words, increased customer satisfaction levels help businesses earn more money and higher than expected revenues help boost stock prices. Thus, customer satisfaction indirectly influences stock prices.

Final Thoughts

The reality of today’s world is that businesses often try to meet short-term goals in order to please investors.

In recent years, marketing consultants have been beating the drum for the idea that providing a great customer experience is key to a company’s long-term success.

What this research proves is that all the talk of pleasing the customer is more than high-minded rhetoric.

It is one of the keys to success.

Now that we have the research to show that improving customer satisfaction can help companies outperform their earnings estimates and thus help improve the stock valuation, the job of convincing top executives might have just gotten a little easier.

And, this is good news for everyone involved.

Photo credit: Iman Mosaad 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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In Retail, the Best Price Is Not Always the Lowest

Photo credit: William Murphy on Flickr.Whether in a brick-and-mortar retail store or on a retailer’s website, the price charged for the products or services sold will have an effect on sales.

However, sometimes the retailer with the lowest price around won’t have the highest conversion rates.

This post is intended to highlight some of the ways that price influences purchase decisions in the real world.

Prospect Theory

If you took an introduction to economics class in college, you are probably familiar with the law of supply and demand. It basically asserts that, if everything else remains the same, as the price of a product decreases, the demand for the product will generally increase.

However, in the real world, this relationship does not always prove to be true.

The reason for this can be explained by a theory developed by Dr. Daniel Kahneman and Dr. Amos Tversky.

According to Wikipedia, “Prospect Theory is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. The theory states that people make decisions based on the potential value of losses and gains rather than the final outcome, and that people evaluate these losses and gains using certain heuristics. The model is descriptive: it tries to model real-life choices, rather than optimal decisions, as normative models do.”

As several experts have pointed out, this plays out each and every day in the retail world.

Consumers Will Pay Full Price for Some Brands

As you know, there are a few brands that have established enough brand equity that people are willing to pay higher prices for the products and services that they sell.

Often this means that retailers can sell these products to customers at full price.

And, in some cases, even the sale prices for these items are higher than the full price of some of the less expensive alternatives.

As I will explain later in the post, these products are extremely important to retailers for many reasons.

The Power of a Sale

In his New York Times bestselling book, titled “Contagious: Why Things Catch On,” Dr. Jonah Berger mentions an experiment conducted by Dr. Eric Anderson and Dr. Duncan Simister.

As explained in the book, Dr. Anderson and Dr. Simister partnered with a company that sends clothing catalogs to people all over the United States.

To test the power of a sale, they send two versions of the catalog to people all over the country.

In one version, they listed a specific product at full price and in the other they said the product was part of the “Pre-Season SALE.”

However, in reality, the price was exactly same in both versions of the catalog.

The only difference was that in one version it was listed as a sale price and in the other it was not.

In the end, they found that just by saying the product was on sale increased sales by more than 50 percent!

The Size of the Discount Matters

In “Contagious: Why Things Catch On,” Dr. Berger uses an example of two stores selling the same grill to illustrate how the size of the discount can be more important than the final price that the item is sold for.

As he explains, the store in scenario A lists the original price of the grill as $350, but sells it at a sale price of $250.

On the other hand, the store in scenario B lists the same grill at an original price of $255, but sells it at a sale price of $240.

When Dr. Berger asked 100 different people to evaluate each scenario, he found that 75 percent of people who were given scenario A said that they would purchase the grill, but only 22 percent of people given scenario B would make the purchase.

In scenario A, the sale price is $100 less than the original price. In scenario B, the sale price is only $15 less than the original.

However, remember that in each case the grill is exactly the same, but the final price in the second scenario is actually less than the first.

In this case, it was the size of the discount, not the actual final price that got people to say that they would make a purchase!

How the Discount Is Stated Matters (The Rule of 100)

In the book, Dr. Berger also highlights the fact that the original price will determine whether to list a sale in terms of a percentage off or an actual dollar value.

“Researchers find that whether a discount seems larger as money or percentage off depends on the original price,” writes Dr. Berger. “For low-priced products, like books or groceries, price reductions seem more significant when they are framed in percentage terms. Twenty percent off that $25 shirt seems like a better deal than $5 off. For high-priced products, however, the opposite is true. For things like laptops or other big-ticket items, framing price reductions in dollar terms (rather than percentage terms) makes them seem like a better offer. The laptop seems like a better deal when it is $200 off rather than 10 percent off.”

Dr. Berger goes on to explain that a good rule to follow is that if the product’s price is less than $100, then a percentage discount seems like a better deal. On the other hand, if the price of the product is more than $100, a discount expressed in the number of dollars off is a better way to go.

Full-Priced Items Can Make Other Products Sell Faster

Remember those full-priced items that I mentioned earlier in the post.

The fact that a store sells them can actually help increase the sales of the mid-range items that it sells.

In “Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing,” Roger Dooley highlights the fact that selling high-end items increases the likelihood that people will buy products that are considered the next best option.

As Dooley points out, “A Standford University experiment had a group of consumers choose between two cameras, one more full-featured than the other. A second group chose from a selection of three cameras, which had the other two cameras plus one even higher-end model.”

“The first group split their purchase about 50/50 between the two models,” writes Dooley. “But, in the second group, fewer of the cheapest unit sold while more of the second camera sold. Adding the very expensive model made the second camera look like a reasonable compromise.”

Therefore, adding high-end items that sell at full-price can be a good choice for retailers. If the full-price items sell… great. But, if not, they might help increase the sales of the mid-level products sold at the retail store.

Keep in mind, this only works if customers see all the options available to them.

Therefore, it is not surprising that in many brick-and-mortar retail stores, people have to walk past the really high-priced items to get to the other options available to them. This makes the other items seem like a bargain in comparison.

A similar thing could be done on a website by listing other options available when customers search for specific products. The great part of an online store is that retailers can easily do A/B tests to see what website design converts the best.

Final Thoughts

In his book, Dr. Berger explains how the price of products and services influence sales. His book includes an explanation of Prospect Theory and how it can be used to explain why the store that sells a product at the lowest price doesn’t always sell it at a higher rate than other retailers in the area.

Roger Dooley’s book also highlights how price can influence sales in several different ways.

Both books offer lessons that retailers can use both in their brick-and-mortar stores and online.

In the end, it is important to keep in mind that people don’t always act the way that we would predict that they would.

Therefore, we need to test different options in an effort to find the underlying reasons why people do or do not buy products.

This will allow retailers to modify the shopping environment in an effort to increase the number of conversions and ultimately improve the bottom line.

Photo credit: William Murphy 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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Allocating Marketing and Communications Spend Using the 70|20|10 Approach

Photo credit: Daniel Spiess on Flickr.

Nearly every week it seems like there is either a new hot social networking site or an existing one changes the way that it does business in an effort to get more users to spend more time on the site.

With all the buzz that these sites get, it would be easy for some brands to get caught up in all the hype and invest precious resources to chase the next shiny object.

Other brands may fear change and opt to take a wait and see approach.

However, if they wait too long before they decide to invest in the newest ways to reach potential customers, they will be left behind.

While the smartest experts do suggest trying new things, the best advice that they can give is to take a disciplined approach.

This involves allocating some of a brand’s marketing and communications budget to new things, while constantly monitoring the effectiveness of all their marketing and communications spend in an effort to maximize their return on investment.

The 70|20|10 Approach

In Changing Channels with Confidence: A Structure for Innovation, a Millward Brown white paper written a few years ago, Duncan Southgate, Global Brand Director, Digital, and John Svendsen, Global Brand Director, Media, suggest that brands should take an approach similar to the one that Coca-Cola implemented in 2011.

In the white paper, Jonathon Mildenhall, Vice President of Global Advertising Strategy and Content Excellence at the Coca-Cola Company explains that Coca-Cola planned to apportion 70% of its communication spend to support low-risk, “bread-and-butter” content, 20% to innovate based on what worked in the past, and 10% to experiment with brand-new ideas.

According to the white paper, Millward Brown thinks that this is a winning strategy and started recommending it to its clients.

However, they also emphasize the importance of measuring and optimizing based on the data collected.

In other words, what is considered the “bread-and-butter” content will change as time goes by.

“But to say that 70% of the budget should fund communications in channels that are considered to be safe, familiar, and effective is not to say that 70% of a media budget should remain static from year to year,” the authors of the white paper write. “Based on ongoing learning and evolving brand objectives, channel composition within the 70% could vary significantly over time and from campaign to campaign.”

Final Thoughts

The media landscape is rapidly changing.

Brands that don’t adapt to these changes will get left behind.

However, constantly moving all of their marketing and communications dollars into what is next isn’t the correct approach, either.

As the white paper from Millward Brown suggests, the 70 | 20 | 10 approach is probably the best way to keep up with these changes in a way that will help the brand succeed in the future, while continuing to be successful today.

It is also important to remember that some of the things that are experimental today will become the “bread-and-butter” content in the future.

It is therefore important to monitor and measure what is working and optimize based on what the data is telling you.

Photo credit: Daniel Spiess 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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Your Customers Want a Better Mobile Shopping Experience

Photo credit: gail on Flickr.

It should now be clear that mobile devices are going to play a huge role in how customers research, search for, and buy products for the foreseeable future. This is a fact that we have known for a few years now.

However, while more businesses are starting to make investments in mobile, several studies have made it abundantly clear that we are a long way from getting it right.

Part of the issue is the complexity of the shopping experience and the role that mobile devices currently play.

In order to get mobile marketing right you need to think about a lot of things, many that extend beyond the mobile device itself.

Many marketers are still trying to use their traditional ways of advertising to people without taking into account what is happening all around consumers as they interact with the brand on their mobile devices while out and about in the offline world.

Therefore, it’s not surprising that many businesses haven’t had much luck with their mobile marketing efforts.

In fact, according to the recent “CMO Survey Report” sponsored by Deloitte, the American Marketing Association, and The Fuqua School of Business at Duke University, most responding CMOs do not feel that mobile marketing currently makes a substantial contribution to their company’s bottom line. In fact, 40% said that mobile marketing makes no contribution at all. (Note: I would argue that measurement is partially to blame for these responses.)

As time goes on, brands and retailers will start to listen to customers and give them more of what they want and need. When this happens, we will not only see more happy customers, but a better return on investment for the businesses that use mobile devices to properly communicate with their customers and prospects while they are interacting with the brand in other ways.

Why Customers Don’t Shop on Mobile Devices

As I have pointed out in the last few posts, most retail transactions still take place in a brick-and-mortar store and about two-thirds of e-commerce transactions still take place on a desktop.

A recent GfK study that was commissioned by Facebook IQ has some insights into why omni-channel shoppers (those that research and bought items via a variety of channels including smartphones, tablets, desktop computers, and in brick-and-mortar stores) aren’t currently shopping on their mobile devices.

When omni-channel shoppers were asked why they shopped on a desktop vs. a mobile device, 56% said that it is easier to see all the available products on a desktop, 55% find it easier to use devices with bigger screens, 27% said that they find it difficult to compare products and retailers via a smartphone or tablet, and 26% said entering personal data is not very user friendly on a smartphone or tablet.

All these responses indicate that brands and retailers need to improve the User Experience (UX) of their mobile apps and websites. Even the responses that have to do with the size of the screen can be improved with better design.

When looking at why omni-channel shoppers chose to shop in a brick-and-mortar store vs. mobile, 47% said they like to touch and feel the products, 46% said that they don’t want to wait, 41% said that the shipping costs too much, and 25% said that in-store shopping is relaxing/enjoyable.

Two of the issues here can be fixed with shortening the time it takes to ship the product and by offering reduced-priced or free shipping to customers.

However, the other two issues really aren’t issues at all. They are actually opportunities that brands and retailers can take advantage of.

Thinking About the Whole Customer Shopping Experience—Both Online and Offline

As mentioned in the past, Forrester Research estimates that 49 percent of total sales in 2016 will be influenced by online interactions.

Many of these interactions will happen on a mobile device when a customer is in your store.

Brands and retailers need to be thinking about everything that a consumer wants and needs when they are making a decision to buy a product or service. This includes the interactions that consumers are having with your brand offline and via a mobile device. Each of these can reinforce the other and make them more effective than they would be alone.

In a recent post on the iMedia Connections blog, Jeff Hasen, Mobile Strategist and Founder of Gotta Mobilize, highlights the fact that businesses haven’t caught up with the times.

In the post, Jeff Hasen quotes Martin Sorrell, chief executive of the advertising group WPP.

“The essential problem is that big companies are not thinking about mobile in the right way,” Sorrell is quoted as saying. “They’re thinking of it as an extension of digital, just a way to reach consumers. They’re not thinking of it in a way that changes their businesses or adds values in a way they weren’t able to do previously.”

Final Thoughts

Mobile devices are changing the way that consumers live their lives. This includes the way that they shop for products and services.

This is something that experts will be talking about for a long time. And, for good reason.

Businesses need to adapt to these changes. Those that do it first will succeed. Those that don’t will be forced to follow, because their customers and prospects will demand it.

Photo credit: gail 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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More Evidence That Smartphones Are Key to Success in an Omnichannel Retail World

Photo credit: Sharon Hahn Darlin on Flickr.The role that mobile devices play in retail continues to grow. Not only are consumers using mobile devices to research products and get recommendations, a growing number of transactions are being completed on mobile.

According to a recent press release, Criteo’s “Q4 2015 State of Mobile Commerce Report” found that about four in 10 online transactions in the United States occur across multiple devices or channels. Furthermore, close to one-third of e-commerce transactions actually are completed on a mobile device.

This is particularly important given the fact that according to the U.S. Census Bureau, “E-commerce sales in the fourth quarter of 2015 accounted for 7.5 percent of total sales.” And, as I pointed out in the last post, Forrester Research predicts that within the next 10 to 15 years, e-commerce could account for as much as 25 percent of total sales.

Moreover, as alluded to above, mobile devices are impacting offline sales as well, as consumers use their smartphones and tablets to research and get recommendations about products online before or even during a shopping trip at a brick-and-mortar store.

Mobile Influences the Offline Transaction

As a recent article on the Mobile Commerce Daily website points out, “More than $1 trillion of total retail sales in 2015 were influenced by mobile phones, with most of this coming from in-store transactions and further growth expected, according to a new report from Forrester Research.”

The article goes on to point out that Forrester Research expects web-influenced sales with grow to $1.3 trillion in 2016 and reach $1.6 trillion by 2020. To put it a different way, web-influenced sales will account for 49 percent of the total sales in 2016 and reach 55 percent of total sales by 2020.

The article also points out that this trend is being fueled by larger smartphones and faster wireless networks. Furthermore, the fact that search engines are providing ways for consumers to find the information that they need quickly via their smartphones is also a factor.

It’s not surprising that more retailers and brands are looking for ways to advertise and engage with consumers on their mobile devices. Those that don’t are going to be left behind.

A Majority of Mobile Transactions Are Conducted Via a Smartphone

As I already pointed out, most retail sales still take place offline.

However, the percentage of sales conducted online continues to grow, with nearly a third of these online transactions actually taking place via a mobile device.

According to the Criteo report mentioned earlier, 60 percent of sales that take place on mobile devices are completed via a smartphone.

It is important to note that tablets drove higher value sales than smartphones.

However, 43 percent of tablet shoppers used multiple devices in their shopping journey. This means that in addition to the desktop, smartphones are important even when the final sale is conducted via a tablet.

Final Thoughts

In an omnichannel retail world, the path to purchase can take many twists and turns along the way.

A consumer could research, check for product reviews and recommendations, and purchase a product after interacting with the brand and/or retailer online via a desktop computer, tablet, smartphone, and/or offline at a brick-and-mortar store or kiosk.

Therefore, it is important to give consumers the information that they need when and how they want it and allow them to purchase from you when and how they want to.

As mentioned, the offline store is still going to be the most common way for consumers to purchase products for the foreseeable future. However, as this post points out, the smartphone is going to play an ever-increasing role in determining what will be purchased and where that sale will take place.

Photo credit: Sharon Hahn Darlin 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 Brands Shouldn’t Wait to Invest in Mobile Marketing

Photo credit: Audio-Technica on Flickr.If your brand hasn’t allocated at least some of its marketing budget to mobile, it is missing out on a huge opportunity.

Even brands that have taken a wait and see approach to mobile marketing are starting to see the value that mobile brings to the table.

In fact, according to a recent eMarketer article, this year more businesses are planning to invest in mobile advertising than ever before.

However, it’s not that businesses will be spending significantly less to reach consumers on their desktops. In fact, while the amount spent this year on ads targeting users on desktops is projected to be slightly less than it was in 2015, eMarketer is reporting that this number should rebound in the next few years.

That said, the amount of money budgeted for mobile advertising is projected to skyrocket.

And, it’s not surprising given the fact that according to an article published on Forbes.com in August of 2015, a majority of online content is now consumed on mobile devices.

This same article also pointed out that mobile ads have reach, as most U.S. adults currently have mobile phones and/or tablets.

Not only that, people are three times more likely to open a mobile ad than a desktop ad.

Furthermore, mobile ads are “ridiculously cheap.”

According to the Forbes.com article, “Mobile brands have underinvested in this area, and prices haven’t caught up yet. Compared to the cost of traditional advertising streams, mobile ads are a bargain. TV and print ads’ CPM is $100, while online CPM hovers around $3.50. Mobile CPM, on the other hand, can be as low as 75 cents.”

Final Thoughts

Mobile ads are currently more likely to be opened than ads targeting consumers on their desktops.

And, mobile ads are currently relatively inexpensive, when compared to ads targeting consumers via other marketing channels (e.g., television, print, desktop, etc.)

That said, this is likely to change as more businesses start to target consumers on their mobile devices.

The increased competition is likely to drive the costs up. And, if consumers get bombarded with ads on mobile devices, the open rates are probably going to decrease somewhat.

This is not to say that mobile will lose its value—the fact that so many people consume content on mobile devices, combined with the added ability to target customers and prospects when they are most likely to purchase your product or service is what makes mobile advertising so desirable.

With the right planning, mobile advertising is going to continue to be a very effective way to reach consumers.

However, it doesn’t pay to wait.

Brands that are currently using mobile are not only benefiting from less competition, they are also learning what works and what doesn’t.

This will give these brands the knowledge to succeed when the level of competition increases.

Photo credit: Audio-Technica 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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Six More Things That Will Influence Business in 2016

Photo credit: Vestman on Flickr.From the buzz on the Internet, it would be easy to guess that 2016 will be the year of mobile or the year of the Internet of Things.

I’d argue that it is going to be the decade of mobile or the decade of the Internet of Things. I’d even venture a guess that it might be the millennium of mobile or the millennium of the Internet of Things. But, who knows what cool stuff will be invented a few decades from now.

With this in mind, I am not going to say that this is the year of anything.

However, I do think that there are several things that are worthy of watching in 2016.

The List of Things That Will Influence Business

I’ve been updating this list for a few years.

Most of the items on my past lists are still worthy of keeping an eye on.

Here is a list of some of the things I have been watching in the last few years with the year they were added to the list:

1) Rapid Advancements in Technology [2013]

2) Mobile (User Experience and Marketing) [2013]

3) Mobile Payments [2013]

4) Mobile-Influenced Merchandising [2013]

5) Privacy Issues [2013]

6) The Evolution of Marketing and Public Relations [2013]

7) Emerging Markets [2013]

8) The Internet of Things [2014]

9) The Evolution of Retail [2014]

10) Omni-Channel Retail [2014]

11) A Global Marketplace [2014]

12) 3D Printing [2014]

13) Cyberattacks [2014]

14) Ethics [2014]

Additional Things That I Will Be Watching in 2016

As I mentioned in past years, this isn’t a comprehensive list. Rather, these are some of the things that I feel will have the largest impact on business in the upcoming years.

Here are the items that I have added to the list this year:

15) Online Video

This one should have been on my list when I first started it. In my defense, I did write about the importance of online video marketing in 2014.

Online video is only going to become more relevant as Internet speeds increase and the costs to upload and consume video content decreases globally.

Furthermore, not only are people consuming a lot of online video content because they found it on social networks, videos can also show up in search engine results pages (SERPs).

16) RFID, NFC, and Beacons

These can be classified as a subset of several of the items already on my list, including mobile (user experience and marketing), mobile payments, omni-channel retailing, and the Internet of Things.

Any business looking to increase efficiencies or leverage some of the cool new ways to interact with consumers on their mobile devices needs to be looking into these technologies.

17) Augmented Reality (AR) and Virtual Reality (VR)

I am reluctantly putting these on my list, mostly because I haven’t had any firsthand experience with them that has blown my mind. However, enough people are talking about these technologies to add them. I need to learn more about the ways that they can be used before I can write anything further. Stay tuned.

18) SEO for the Internet of Things

Not many experts are talking about it yet. But, I think that they should.

The Internet of Things is going to influence every aspect of our life, including using sensors to give us the information needed to make decisions that will simplify our life and make it more enjoyable.

As time goes on, I predict that Google and some of the other search engines will want to use this data to include it in their SERPs.

Google has already started to do something like this by showing when some businesses are the busiest in its search results. From articles that I have read, Google is obtaining this information by collecting anonymous information from the users of the Google Maps app.

I think it is inevitable that Google will start to expand and include data from other sources. However, this is going to require some sort of standardization of input data before Google could use it to provide information in its SERPs. This is what I am currently calling SEO for the Internet of Things.

19) Experiential Marketing

I have heard a lot of experts using the word “experiential” a lot.

According to Wikipedia.com, “Engagement marketing, sometimes called “experiential marketing,” “event marketing,” “on-ground marketing,” “live marketing,” or “participation marketing,” is a marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs, developing a relationship with the brand.”

This is an area that I plan to learn a lot more about in 2016.

As an added bonus, if documented correctly, an experiential marketing campaign can be shared on social media sites to make the investment more attractive for business leaders.

20) Wearables

By now, everyone has heard about fitness trackers helping people get healthier.

And, although Google Glass has failed so far, there is talk that they are trying to bring it back in a form that will be accepted by consumers.

If wearables do continue to take off, there are countless ways that businesses can benefit, including finding ways to use the data to better consumers’ lives. As always, it would require consumers to opt-in. But, when they do, a lot of cool things can be done.

Bonus: Implantables

I’m not ready to add this to my list, because I think that we are at least a decade from mass adoption of implantable technology for nonmedical purposes. However, like wearables, implantable technology can be used to make consumers’ lives better.

Final Thoughts

These are some of the things that I plan to continue to watch in 2016 and beyond.

And, as I have mentioned in the past, a new technology that we don’t know about could change everything.

So, you have my list. What’s on your watch list for 2016?

Photo credit: Vestman 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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