Tag mobile

Added to the Watch List: Dynamic Pricing in Brick-and-Mortar Stores

Photo credit: Thomas Altfather Good on Flickr.Price, along with product, promotion, and place is one of the parts of marketing that E. Jerome McCarthy included on the list of four P’s that he used when he expanded on what Neil Borden coined as the “Marketing Mix.”

While it is a very important part of marketing, price is something that I just haven’t focused on.

However, a recent article written by Bryan Eisenberg has me extremely intrigued.

In the post, Eisenberg recommends that brick-and-mortar retailers find ways to innovate or be left behind.

But, it was one paragraph, in particular, that really got me thinking.

“Omni-channel retail needs new leaders with an entrepreneur’s vision to thrive amongst the chaos and jump ahead of the curve,” writes Eisenberg. “We need bold experimentation in the brick & mortar channel. It’s not enough to give your associates mobile devices to enable checkout from anywhere in the store. Apple has been doing that for years. Take a look at what jewelry retailer Blue Nile has done at first with their test kiosks and now with their first successful brick-and-mortar “web room.”  Have you seen Amazon’s first store? There are no prices on the shelves. They’ll leverage people’s own devices to offer dynamic pricing. Will you?”

It was the last part that jumped out at me.

While it might not seem like much to some people, if other stores follow Amazon’s lead, I think that we can look forward to some huge changes in how retailers price their products and services in order to compete with the stores around the corner and the ones customers have access to via their computers and mobile devices.

It’s Nothing New Online—But Could Be a Huge Deal in a Brick-and-Mortar Retail Store

According to Wikipedia, “Dynamic pricing, also referred to as surge pricing or demand pricing, is a pricing strategy in which businesses set flexible prices for products or services based on current market demands. Business are able to change prices based on algorithms that take into account competitor pricing, supply and demand, and other external factors in the market.”

“The concept of dynamic pricing has been around for many years, particularly in the airline and hotel industries, but retail is one of the newer industries to adopt this pricing strategy, and it’s growing rapidly,” the Wikipedia page points out. “Many believe dynamic pricing will become more relevant in the future of ecommerce.”

A 2012 Wall Street Journal article also points out some of the factors that online retailers use when setting prices online.

“It is difficult for online shoppers to know why, or even if, they are being offered different deals from other people,” the authors of the Wall Street Journal article write. “Many sites switch prices at lightning speed in response to competitors’ offerings and other factors, a practice known as “dynamic pricing.” Other sites test different prices but do so without regard to the buyer’s characteristics.”

In the example listed in the article, Staples.com used the distance that a person was located from a competitor’s brick-and-mortar store as one of the factors it used to adjust the prices for the items it sold online.

However, this is the online store where prices can be changed with only a few clicks.

Before smartphones, this type of change would have been extremely difficult in brick-and-mortar stores.

Sure, most retail stores have sales that change the prices of the items that they sell, maybe even daily.

And, they could offer coupons via the paper or even email to certain customers. So they do have the ability to target certain customers to entice them to buy by offering discounted prices.

But, the smartphone and the data that retailers now have can give them the ability to target customers and change prices with a much faster turnaround time, possibly even in real time.

This could be a game changer.

Final Thoughts

As I mentioned earlier, pricing strategy is not my area of expertise.

So, there isn’t much more that I can add to the discussion.

That said, it is easy to recognize that having the ability to determine if price will have an effect on a sale and make a price adjustment when a customer is most likely to buy from the store (i.e., when they are actually in the brick-and-mortar store) can and will have a huge impact on sales.

That’s why I plan to watch what retailers do and monitor advancements in the technologies that they use to adjust prices that they offer to customers online and in brick-and-mortar stores using the data collected from customers’ smartphones.

And, it is probably a good idea if retailers do the same.

Photo credit: Thomas Altfather Good 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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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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Customers Love Coupons, but Hate the Fine Print

Photo credit: torbakhopper on Flickr.There is a lot of evidence out there that coupons help drive sales.

This is partially due to the fact that customers like coupons.

In fact, I’d even go as far as to say that customers love coupons. They love to receive them and the love to use them.

This is supported by a 2014 study that was conducted by Forrester Research on behalf of RetailMeNot.

According to an article on marketingcharts.com that cites this study, “Some 68% of respondents agreed (top-2 on a 5-point scale) that they are likely to tell a friend about a company that uses online coupons or promotion codes, and an equal 68% agreed that they are more likely to be loyal to a brand that offers online coupons or promotion codes. Lest that loyalty be to price rather than brand, the survey also indicates that half are more likely to buy a product or service at full price later from a company that offers online coupons or promotion codes.”

And, while the percentages vary, most sources indicate that nearly all consumers will use coupons at least once in a while.

Furthermore, according to a press release found on Quotient.com, research conducted by GfK on behalf of Coupons.com found that, “heavy digital coupon users shop 47 percent more often than the average shopper, spending $6,081 annually on groceries and household goods alone — an incredible 114 percent more than the national average.”

Research has even found that coupons make customers happier.

However, while customers do love coupons and even expect retailers to offer them, there is one aspect of a coupon that can provoke ire in even the most loyal customer.

It’s in the Fine Print

If you ask any retail employee, they could no doubt list a countless number of times when customers were happy with the savings that coupons provide.

On the other hand, they could also point out the many times when customers left dissatisfied with the store because they found out that the items that they intended to purchase were excluded. And, the only way to find that out was to read the fine print. Which, by the way, they probably didn’t do, so they brought the items to the register and were forced to pay full price or abandon the purchase.

Matt Brownell, consumer and retail reporter for DailyFinance.com, summarized the frustrations that many consumers have in a 2013 post.

In the post, he states, “When retailers run sales and coupons, they include fine print that limits what the deal actually applies to. In most cases, it’s relatively harmless — it defines the effective dates of the promotion, and may exclude select items like gift cards and jewelry.”

“But problems arise when retailers go totally overboard and try to exclude half the store,” he continues. “Department stores like Sears (SHLD) and Macy’s (M) tend to hold sales that exclude dozens of brands from the discount, and earlier this year Guitar Center took some heat for a coupon that excluded more than 300 brands.”

He goes on to say, “Sure, in a perfect world everyone would read and understand the fine print. But it’s not unreasonable for someone to see ‘20 percent off everything’ and assume that it applies to most of the merchandise in the store.”

And, he’s not the only one to point this out.

Here are some of the tweets that I found posted on Twitter in the last few months.

If these people got mad enough to vent their frustration on Twitter, it is more than likely that there are countless others who just walk away feeling a little less satisfied with the store.

Some businesses have acknowledged the frustration that customers have with the fine print by adding a little humor.

It’s Not Always the Retailer that Is to Blame

A 2015 article by John Matarese for WCPO in Cincinnati also highlights the frustrations that consumers can experience when trying to use coupons.

As he points out in the article, “Perhaps it would be easiest if the coupons simply listed the brands where you can use them.”

However, he also lets retailers, in this case Dick’s Sporting Goods, defend themselves.

According the article, Dicks explained that “manufacturers, not the store, make the rules, and typically do not allow markdowns on current season merchandise.”

Nevertheless, most customers don’t know this and it is the retailer, not the brand, that often takes the hit in customer satisfaction, trust, and brand loyalty.

Final Thoughts

Customers love coupons.

Research has shown that not only do they drive sales and lead to increased brand loyalty, but they could also lead to future sales for full-price items. Researchers have also found that customers who are heavy digital coupon users shop more than the average shopper does.

Therefore, there is no question that coupons are good for business.

However, retailers need to keep in mind that when they offer a coupon that excludes too many of the brands that shoppers really want, it can backfire and actually harm the store’s reputation.

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

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

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

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

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

Local Inventory Ads Drive Shoppers into Stores

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

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

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

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

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

Not bad.

Giving Customers the Information They Need

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

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

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

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

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

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

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

Final Thoughts

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

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

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

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

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

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

Photo credit: RubyGoes on Flickr.

Chad Thiele

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

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

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

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

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

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

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

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

The Incumbents: Motorola and Verizon Wireless

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

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

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

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

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

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

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

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

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

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

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

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

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

They recommended the Samsung Galaxy S7.

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

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

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

The Choice: Sprint or Verizon Wireless

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

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

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

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

Final Thoughts

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

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

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

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

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

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

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

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

However, it does require some effort.

Photo credit: Ron Bennetts on Flickr.

 

Chad Thiele

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

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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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Brands and Retailers Need to Integrate Social Media into the Offline Shopping Experience

Photo credit: Annie Mole on Flickr.Many brands and retailers are using social media to advertise and build relationships with customers online.

However, if these businesses fail to integrate social media into the shopping experience at brick-and-mortar stores, they are missing out on a huge opportunity.

A Majority of U.S. Consumers Have a Smartphone

According to comScore, “198.5 million people in the U.S. owned smartphones (79.1 percent mobile market penetration) during the three months ending in January.”

To put this into perspective, the U.S. Census Bureau estimates that 322.9 million people lived in the U.S. at the end of January of 2016. That means approximately 61.5% of the U.S. population owned a smartphone.

What this also means is that there is a good chance that many of your customers and prospects not only own a smartphone, but are using it to make purchase decisions.

In his book, titled “Mobile Influence: The New Power of the Consumer,” Chuck Martin, author and CEO of the Mobile Future Institute, points out that there are six influence points in the mobile shopping life cycle. These include: The Setup: The Pre-Buy, The Move: In Transit, The Push: On Location, The Play: Selection Process, The Wrap: Point of Purchase, and The Takeaway: Post-Purchase.

At each stage in the mobile shopping life cycle, brands and retailers are given the opportunity to convince a consumer to buy their product or service. In his book, Chuck Martin devotes a chapter to each of these points of influence.

As he points out, there are many tools in a marketer’s toolbox to help influence a sale by leveraging the power of the mobile phone.

This includes, but is not limited to, the use of social networking sites to connect with consumers as they research, buy, and share the love of a brand online.

Given that many online interactions can now happen when the consumer is physically located in a brick-and-mortar store, it only makes sense that brands and retailers should look for additional ways to interact with customers as they are making purchase decisions and influencing the purchase decisions of other consumers who they interact with online.

Consumers Are Using Social Networking Sites

As mentioned, a majority of U.S. consumers own a smartphone.

Furthermore, according to a study conducted by the Pew Research Center, in 2014 75% of smartphone owners used their phones to access social networking sites.

And, this is just the percentage of people who used social media on a smartphone.

When you consider the fact that even people who don’t use social networking sites on a smartphone could be connected to someone who does, I would venture a guess that nearly everyone who uses social media could potentially be influenced by an interaction that a consumer has with a brand while the consumer is in a brick-and-mortar store.

Final Thoughts

The number of people who use social networking sites continues to increase, as does the number who own smartphones.

While many brands and retailers currently use social media to advertise and build relationships with customers and prospects online, if they don’t integrate social media into the offline shopping experience at brick-and-mortar stores they could be missing out on a huge opportunity to reach and engage with customers at each of the influence points in the mobile shopping life cycle that Chuck Martin describes in his book.

Photo credit: Annie Mole 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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