Best Reading of the Day - Entry 0069 Loyalty and Payments

One article I missed during my recent time off due to illness is well worth capturing in these pages.

http://www.pymnts.com/briefing-room/consumer-engagement/Loyalty/2013/more-proof-payments-is-killing-the-advertising-biz/

Here is a snippet from the piece:

The “hypothetical” scenario that I started with assumed an app tied to a store loyalty program but that is far from the only option available to consumers. In fact, I would say that it may be the category of player most at risk. Lots of third parties, large and small, are emerging who have clever ways of capturing consumer spending data and are using it to do things like compile shopping lists and then directing consumers to stores where the highly unengaged consumer product purchases like milk are the low-priced bait in an effort to help those consumers load their baskets with more of the higher margin unplanned items. And, apps that aggregate “wisdom of the crowd” data on key product category purchases are also shifting behavior away from stores and products that were once consumer “mainstays” to others that the community has said offers a better overall value equation.

Happy reading,

J.W. Gant

The Target Payment Card Data Breach

This one has been making some news and as the story has unfolded it has become incredibly interesting.

Wait, just another data breach right?  Just another case of credit card information getting in to the wrong hands right?

No.

First, the back story:

Thursday, December 19th Target, one of the biggest retailers in the world, revealed it had been the victim of unauthorized access to its payment card data:

Target today confirmed it is aware of unauthorized access to payment card data that may have impacted certain guests making credit and debit card purchases in its U.S. stores. Target is working closely with law enforcement and financial institutions, and has identified and resolved the issue.

...

Approximately 40 million credit and debit card accounts may have been impacted between Nov. 27 and Dec. 15, 2013. Target alerted authorities and financial institutions immediately after it was made aware of the unauthorized access, and is putting all appropriate resources behind these efforts.  Among other actions, Target is partnering with a leading third-party forensics firm to conduct a thorough investigation of the incident.

At first this story, while quite concerning, left me just nodding my head saying something to the effect of "another data breach".  Yes and no.  The methods used in this case appear to have been quite new.  This is a VERY different case from previous instances and consequently is much more alarming.

This latest incident … likely involved an attack on Target's point-of-sale (POS) system, most security experts agreed, meaning that customer information was probably sent directly from the store's mounted cash registers to the hackers themselves, probably due to malicious software. 

"I don't know how they did it," James Wester, research director of IDC Financial Insights…

"That is what is kind of mystifying at this point," Wester said. "It seems like from a security standpoint, Target was doing all of the right things, and somehow this code was put on the POS system, which isn't a normal access point for hackers."

You knew all along this was going to cost Target considerably.

Breach_Could_Prove_Very_Costly_for_Target

What is also interesting is the move by some to push for further implementation of EMV protocols in the United States.  It is not yet clear this would have helped at all.  Furthermore, hacking always looks for the weakest link.  There is no way a hacker could have infected all ~1800 Target stores at the Point of Sale without some severe security failure on the back-end.  EMV would have no impact at all on such activity.

More on this story as it continues to unfold.

As my colleague said last night "buy Target stock right now, as it tanks.  It'll go back up quickly once this passes."

Yeap.

The New York Times has a piece on this as well:

http://www.nytimes.com/2013/12/20/technology/target-stolen-shopper-data

Is any retailer safe from this sort of activity?  Maybe not.

http://www.paymentssource.com/news/target-breach-sends-chills-is-any-merchant-safe-even-with-emv

Hope each of you is well prepared for the holiday season.  Best wishes.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0068 Top 120 iOS Apps

When it comes to the ecosystem of apps all other players are second to Apple and iOS devices.  So many, over one million in fact, it can be impossible to know what is good and what isn't.  Great opportunity to leave it to an expert who spends way too much time on this subject.

The good folks at Digital Trends have compiled a fantastic list of the top 120 apps:

http://www.digitaltrends.com/mobile/best-iphone-apps/

Be sure to take a moment to browse by the categories that most interest you, and peek in at others you don't yet know interest you.

Happy app-ing,

J.W. Gant

Best Reading of the Day - Entry 0067 Black Friday by Google

Google Think Insights is out with another excellent write-up.  This one speaks to Black Friday and the importance of the multi-platform approach to retail.

http://www.google.com/think/articles/black-friday-multiday-multidevice-event.html

Here is a snippet from the writing:

Black Friday and Cyber Monday are no longer one-day events. Facing a shorter holiday season, retailers rolled out deals earlier than ever this year, and shoppers followed suit. In fact, people were searching for Cyber Monday deals as early as Thanksgiving Day when "Cyber Monday" was a top trending search on Google. What else does our data show? Not only did consumers start early, but they also hunted for deals all weekend long, often on mobile devices. Tech gifts dominated and vloggers shared their finds in “haul videos” on YouTube. Savvy advertisers are tracking these trends to inform and improve their efforts all season long.

Happy reading,

J.W. Gant

Target and Apple Move Past Wal-Mart

News of the day is a study released from Mobiquity.  Most striking is how problematic a poor app can be for a brand.  48% of mobile shoppers will abandon a brand entirely if they have a poor experience with the brand's app.

Market Wired has a write-up on the subject:

http://www.marketwired.com/press-release/apple-target-best-mobile-shopping-finds-new-consumer-satisfaction-study-from-mobiquity-1861311.htm

Wal-Mart held the crown as the best last year but has been passed by both Target and Apple.

Here is a snippet from the piece:

Compared to Mobiquity's 2012 study of retail brands' mobile apps and sites, the volume of mobile shopping has increased significantly in 2013, in some cases even tripling. For example, in 2012, 14 percent of consumers shopped at Apple using smartphones; in 2013, this soared to 49 percent. And then it comes to 2013 holiday gift shopping, 49 percent said they they'll spending $100 or more using smartphone apps -- a sharp increase from last year's 23 percent.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0066 End of the Compromise Effect?

In Supermarket retail one can learn a lot about the thinking of the people who set up the store by looking at the products on the shelves.  Walk through the cereal aisle and you'll see kid-friendly products on the bottom shelf, or, right at the eye level of little kids.  Other products are sorted in a manner bottom to top with less expensive versions giving way to the most expensive at the top.  The middle level items are right at eye level of adults.

This is modeled after "the compromise effect" where people are more likely to choose the middle product when offered 3 versions: less expensive, middle, and more expensive.  This mechanism of human behavior has been used with tremendous potency for decades.

New research suggests the power of this tool for marketers may be lessening in the face of digital information.

http://www.nytimes.com/2013/12/08/business/theres-power-in-all-those-user-reviews

Here is a snippet from that piece.  When provided with access to user comments on Amazon.com...

That made a huge difference. When given three camera options, consumers didn’t gravitate en masse to the midprice version. Rather, the least expensive one kept its share and the middle one lost more to the most expensive one.

I only found this research because of the excellent writing of Karen Webster.  Her piece can be found here:

http://www.pymnts.com/briefing-room/consumer-engagement/Loyalty/2013/The-Unexpected-Power-Shift-In-Payments/

The ramifications of this finding are enormous.  Digital marketing is showing to be more powerful than any other form, a true industry disruptor.  Next generation loyalty is the solution.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0065 iBeacon Effectiveness

Mobile Commerce Daily has another good write-up:

http://www.mobilecommercedaily.com/apple-aims-to-drive-small-ticket-accessory-sales-via-initial-ibeacon-rollout

Here is a snippet from that piece:

Last week, Apple announced that iBeacons will be used all over the store for different sales and servicing needs. During a recent visit to the New York Apple flagship store on Fifth Avenue, it was clear that Apple’s focus is more on pushing consumers to buy low-cost accessory items versus bigger device sales.

The key takeaway in this article is probably the right one: without context or personalization this technology still isn't any better than previous tech with the exception of localization.

In other words, a company can begin using this technology immediately to help localize touch points throughout the store and that may solve some basic challenges for retailers.  However, without making the interaction meaningful to the customer this will not be nearly as effective as it might be.  The more you know about the person walking through the store and can make the messaging relevant to them the more effective your use of this technology will be.

Happy reading,

J.W. Gant

Apple Stores Roll Out iBeacons

POST NUMBER 100

I missed it as it was happening.  This was post #100, a mere 8 months after launching this blog.  Hope you have enjoyed the reading and found it to be valuable at times.

Now back to regularly scheduled programming...

Apple Stores Roll Out iBeacons

According to reporting by the Associated Press (AP) Apple will turn on iBeacon technology in all of its 254 retail stores today.

Using the iBeacon feature, the app will notify you if the computer you ordered is ready to be picked up, for example. Show a clerk your screen with the order number, and the clerk will get it for you. Walking by an iPhone table? You may get a message asking if you want to upgrade, check your upgrade availability and see if you can get money for trading in your old phone.

ABC has the AP story here:

http://abcnews.go.com/Technology/wireStory/apple-guides-shoppers-inside-stores-ibeacon-21120351

This will be worth following in the days to come.  If you have the opportunity to pop in to an Apple store this weekend be sure to download the "Apple Store App" from the app store and enable Bluetooth.

Here are several more stories on the subject:

http://techcrunch.com/2013/12/06/apple-ibeacons-u-s-retail-apple-store/

apple-stores-fire-up-ibeacon-to-track-you-while-you-shop/

http://thenextweb.com/apple/2013/12/06/apple-stores-fitted-ibeacon-transmitters-us-optional-store-notifications/

Also we have our first glimpse of the Shopkick beacons to be used in Macy's:

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0064 Holiday Shopping

An enormous amount is being written about the current holiday shopping cycle.  The short of it goes like this:

• More shoppers went to stores than last year
• They spent less money than last year
• Online and mobile sales grew tremendously over last year
• Sales overall are up over last year

CMO.com has the best article on this:

http://www.cmo.com/content/cmo-com/home/articles/2013/12/3/15_stats_Black_Friday_Cyber_Monday_Thanksgiving.html

Here is one piece from that:

Thanksgiving once marked a day of gratitude, spending time with loved ones, and, of course, a big turkey dinner. 

But that has clearly taken a back seat to what now kicks off the busiest shopping time of the year. This year marked the first time retailers opened their doors to customers on Thanksgiving Day, with big-box stores including Target and Walmart hoping to make up for the shorter holiday shopping season. What we're finding is that while in-store sales were lower than usual for the holiday weekend, online revenue for the period was up, further cementing the notion that online shopping is becoming the norm. 

Several more articles are relevant in their own way:

News on how Victoria's Secret is using mobile:

http://risnews.edgl.com/retail-news/Victoria-s-Secret-Is-Mobility89200

Cyber Monday is the biggest ever:

http://mobilemarketingmagazine.com/cyber-monday-biggest-ever-day-for-online-shopping-says-ibm/

Small form factor tablets, or large smart phones, known as "Phablets" are taking a growing share of the market:

http://www.computerworld.com/s/article/9244526/_Phablets_are_eating_into_the_tablet_market_IDC_says

That last one I find particularly interesting as I've been predicting growth in that form factor for some time now.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0063 Decisions and Results

Are we as a society too results oriented in our thinking?

"Just get the sale."

"Just win."

What if you make all of the right decisions but don't get the sale or get the win?  Is that acceptable?  Do we think that way when we "Monday Morning Quarterback" things?

I believe we focus too much on results and a Bloomberg.com article makes the same argument using College Football as the backdrop:

http://www.businessweek.com/articles/2013-12-04/when-the-right-decisions-go-wrong-in-college-football

This article uses an analysis of football as an excuse to tell some pretty good statistics.  Decision tree style analytics are an important business management tool yet we too often fall in to the pit of focusing too much on the result.  More importantly we should ask: was that the right decision?  All too often the answer is yes even if the result was poor.



Here is a snippet from the article:

The game was tied, and so Alabama should presumably have had nothing to lose when attempting a 57-yard field goal. Make it and win, miss it and go to overtime. Presumably.

... Alabama was facing:

• 36 percent chance of winning
• 64 percent chance of going to overtime
• 0.007 percent chance of losing

Even if you thought Alabama’s backup kicker had nowhere near a 36 percent chance of making the field goal—maybe you’re extremely pessimistic and only gave him a 1 percent chance—that’s still about 150 times more likely than having the ball returned for a touchdown. Again, the right decision was made even though it turned out wrong.

That’s the problem with percentages and averages: You can make the “right” choice when the numbers back you up and still end up with the wrong result.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0062 Couch Commerce

cCommerce?

Yeap.

Couch Commerce.

Mobile retailing is up dramatically this year during Black Friday and on Thanksgiving day.  I like the tagline for this one so I'm using it to represent the bevy of articles on the recent shopping madness.

http://www.recordonline.com/apps/pbcs.dll/article?AID=/20131130/BIZ/311300344

Happy reading,

J.W. Gant

Shopkick to Deploy iBeacon Technology

Several news pieces to catch up on from the previous week.  It is the biggest week of the year for retail and the news coming out is worth looking at.

Are you familiar with Shopkick?

They've partnered with Macy's to roll out possibly the first pilot of iBeacon technology in store:

http://www.gpsbusinessnews.com/Shopkick-to-Deploy-iBeacon-Retail-Presence-Systems_a4519.html

http://www.shopkick.com/shopbeacon

This is pretty big news.  A third party app company getting a footprint within the retail store environment to facilitate in-store marketing.

Wow.

I call that news.

J.W. Gant

The Amazon.com Drone

Last night's airing on 60 Minutes of the piece on Amazon.com has created a bit of a buzz today around the new Amazon delivery service currently being tested to use drones for delivery.

To industry professionals it has elicited more of a yawn.  This is old news.  Companies such as Domino's Pizza have been public about testing such technology for much of the year as you can read about here:

dominos-pizza-drone

Regardless, the buzz is insistent so the move has accomplished its mission.  I've gathered several articles on the Amazon Drone delivery service.  The best is on Bloomberg.com where he correctly argues there is another reason for Jeff Bezos, CEO and founder of Amazon.com, to time this piece now:

amazons-drone-fleet-delivers-what-bezos-wants-an-image-of-ingenuity

My thinking is Mr. Bezos never seems to do what Wall Street wants him to do, focus on profitability, so this is a way to get them off his back.

Here is the drone:

Here are a few more articles on the subject:

http://www.mediapost.com/publications/article/214561/look-its-a-bird-its-a-plane-its-an-amazo.html

http://techcrunch.com/2013/12/01/i-drone/

amazon-plans-to-deliver-packages-via-drones-within-the-next-4-5-years

Happy reading,

J.W. Gant

**UPDATE**

A well known hacker has just released specs to create a drone that latches on to other drones and takes control of them.  Zombie-drones headed your way.

http://arstechnica.com/security/2013/12/flying-hacker-contraption-hunts-other-drones-turns-them-into-zombies/

Might have to consider items such as this to be a small problem for Bezos and his grand idea.

**UPDATE #2**
The Amazon Rocket delivery vehicle.  Get your packages in 5 minutes or less!
amazon-drones-30-minute-delivery-time-forget-amazon-rockets-gets-done-5

Spectacular.

**UPDATE #3**
This one should help you see the theme coming out from the announcement by Amazon.com.  Ridiculous, and the responses treat it as such.  The latest details the proposed response by Wal-Mart: Surface to Air missiles on each of their locations set to target Amazon drones.
http://www.rockcitytimes.com/walmart-install-mini-surface-air-missiles-store-roofs-shoot-amazon-drones/

Brilliant!

Thanksgiving and Black Friday

Hello Everyone,

I'll be on vacation all of next week to enjoy Thanksgiving in sunny Florida.  I hope each of you will be among friends and family during this time of year.  I won't be blogging during the week so I'm going to pop this final post up.  Seems Black Friday is the theme that makes the most sense and there is plenty of good writing and/or news on the subject.

First up is a piece on Amazon.com and their preparations for Black Friday (and ostensibly Cyber Monday):

http://www.mediapost.com/publications/article/213982/amazon-amps-up-for-holiday-win.html

Next is a piece on Wal-Mart starting Cyber Monday early:

http://chainstoreage.com/article/wal-mart-starts-cyber-monday-early

Finally a question I find easy to answer: Should Retailers be Open on Thanksgiving?

No.

Here is the article:

Should_Retailers_Open_Thanksgiving

Hope you enjoy your turkey and have a fun and safe holiday.

Best regards,

J.W. Gant

Best Reading of the Day - Entry 0061 iBeacons, Best Buy and Amazon.com

Three pieces of news and/or articles really stood out to me today.

First up is a piece on the importance of the new "iBeacon" technology Apple introduced in iOS 7 and how it will impact retail:

http://www.mediapost.com/publications/article/213842/why-apples-ibeacon-will-reinvigorate-a-faltering.html

Here is a snippet from that one:

Goodbye, coupon clipping -- say hello to the digital future. Imagine walking into your favorite retail store like Macy's, H&M or Target and instantly receiving customized coupons and promotions sent automatically to your mobile phone. New technology released by Apple will allow just that -- giving advertisers and retailers the ability to transmit personalized offers directly to consumers who want them most -- and advertisers embrace in its potential to reshape and revitalize the retail industry.

That article actually links to a write-up by one of the providers of beacon technology, GigaOM.

http://gigaom.com/2013/09/10/with-ibeacon-apple-is-going-to-dump-on-nfc-and-embrace-the-internet-of-things/

Next is news on Best Buy, the turnaround they've achieved, and their embracing of both showrooming and the mobile platform.

http://www.mobilecommercedaily.com/showrooming-has-not-killed-best-buy-yet

Finally news on Amazon.com moving to provide private label products similar to what supermarkets have been doing for decades now.

http://allthingsd.com/20131119/amazon-expanding-its-own-private-label-offering-to-supermarket-goods/?mod=atd_homepage_carousel

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0060 State of Smartphones in 2013

ArsTechnica has an excellent write-up of the current state of smart phones:

http://arstechnica.com/gadgets/2013/11/the-state-of-smartphones-in-2013-part-i-of-the-new-ars-ultimate-guide/

Here is a snippet from the article:

It's been just under a year since the last time we examined the state of the smartphone. The intervening months have brought us the expected annual hardware refreshes and software updates, but it's striking just how similar things are at a high level.

Apple and Samsung are still standing at the top of the field, and at the moment there's not a strong third-place contender in sales or in reach. HTC continues to be down on its luck despite the critical darling that is the HTC One. LG is still taking pages from Samsung's playbook, trying lots of odd ideasin an effort to differentiate. Microsoft is still struggling to improve Windows Phone 8's standing with consumers, developers, and hardware partners. All of this is more or less as it was a year ago.

I recommend anyone interested in smart phones, anyone considering shopping for a new phone, anyone interested in the mobile internet should read this article front to back.

Happy reading,

J.W. Gant

PC Sales Seen Bottoming Out

Gartner is now saying the year over year decline in PC sales may be nearing the bottom.

The Wall Street Journal has a short write-up of this:

http://blogs.wsj.com/digits/2013/11/19/gartner-says-pc-industry-nearing-bottom/

Here is a snippet from the report:

The PC industry may be nearing a reprieve from the double-digit declines in shipments it has suffered for much of the past year.

Gartner analyst Tracy Tsai predicts the global slide in personal-computer shipments will slow in the fourth quarter to a 3% year-on-year drop, compared with an 8.6% fall in the third quarter.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0059 Amazon vs. Walmart plus Misc

Several good articles have accumulated over the last few days.

First we have some thoughts on the current battle between Amazon.com and Wal-Mart for dominance in eCommerce.  There will be winners and losers alongside the road as this plays out.  Where are you?

Next is news that Apple is implementing its new "iBeacon" technology in its retail stores.  Very interesting play and continues the drumbeat of BLE.

Finally, a view of the Dunnhumby model of personalized shopping as viewed through Safeway supermarkets.

If any of these pique your interest you can find the article linked below:

http://knowledge.wharton.upenn.edu/article/amazon-walmarts-battle-dominance-future-retail-stake/

http://9to5mac.com/2013/11/16/apple-stores-to-implement-ibeacon-location-technology-to-improve-service-boost-sales/

http://www.businessweek.com/articles/2013-11-14/2014-outlook-supermarkets-offer-personalized-pricing

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0058 Apple vs. Samsung Usage

Usage data is an important avenue of understanding regarding mobile devices.  Mere market share only tells part of the story.  Let's say we had exactly 50% of the market to Apple and 50% of the market to Samsung.  Which device is used more frequently, to make more purchases, and interact more via the mobile internet?  That is also an important measurement.  For some time now Android devices have held greater than 50% of the market share in the United States, and closer to 80% world-wide.  However the crown for usage goes to Apple.  That is still true even when looking narrowly at only Apple vs. Samsung devices:

apple-samsung-divide-mobile-cosmos-but-evoke-different-activity

Here is a snippet from the article:

Apple has been holding relatively steady in U.S. smartphone market share this year, even as Samsung eats everyone else's pie of the pie to lead in growth, according to the latest Digital Consumer Portrait from InsightExpress. More than 1300 U.S. smartphone owners were surveyed in early October. But while iPhone at 39% share and Samsung models at 36% share are almost on par in U.S. reach, the activities occurring on these two manufacturers' handsets are quite distinct. Device brand and OS still matter considerably when it comes to basics of mobile marketing and commerce.

Compelling.  Anyone building an app should look to the iPhone first and all other devices second.

Happy reading,

J.W. Gant

Bluetooth Low Energy Drumbeat Continues

The news coming out about new initiatives to take advantage of BLE, Bluetooth Low Energy, is starting to sound like a drumbeat.  The hype machine is definitely kicking in but there are also real world benefits to utilizing this technology as I've written about in these pages.

The latest is word from Nokia about Windows Phone 8 enabling of the technology.  Bluetooth has been in place as a hardware component in most all smart devices for many years.  This software update makes it a low energy, and therefore ubiquitous or "always on" option.

Here is the short article announcing this:

nokia-to-add-bluetooth-le-to-all-windows-phone-8-lumias

The author completely misses the importance of this as another entry in enabling BLE for payments, etc. but correctly speaks to the accessorizing capability of it:

...the low-energy technology lets you pair your phone with special accessories designed for health and fitness, among other areas...

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0057 Misc

Three decent articles stood out to me as I caught up on my reading following my business travels this week.

1. A scanner item you attach to your fridge to catalogue empties for purchasing
2. A smart shopping cart that ties to your shopping list and interacts with you in the store
3. The updated FatWallet platform is ready for Black Friday

If any of these pique your interest then select the link below.

Scanner Item For Your Fridge

http://www.engadget.com/2013/10/24/hiku-handheld-barcode-scanner-for-groceries/

Smart Shopping Cart

http://www.engadget.com/2011/07/27/sk-telecoms-smart-cart-syncs-to-phones-reminds-you-to-buy-milk/

FatWallet

http://www.consumerelectronicsnet.com/article/FatWallet-Readies-For-Record-Multichannel-Mobile-Shopping-This-Holiday-2916125

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0056 Google Research on Paths to Purchase

Google research, an arm I find valuable though slanted to favor "search" behavior, is out with another research piece.  This one is a bit shorter than many previous entries and deals with the path prospective customers take to ultimately purchase items while using their mobile device.  Of course this research points to the value of searching.  However, I was quite struck by how many people initiate their search within a branded app.

Here is the full piece:

http://www.google.com/think/research-studies/mobile-path-to-purchase-5-key-findings.html

Here is the slide that most struck me:

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0055 Mobile for Holiday Shopping Retail Strategies

This is a good time to take a look at the real world utilization of mobile to support Holiday sales.

Multi-Channel Merchant.com has a nice write-up on the topic:

7-ways-support-holiday-sales-mobile-strategies

Here is a snippet from that piece:

After a disappointing sales season this fall for Victoria’s Secret, Costco, and American Apparel, among other merchants, the stakes are high for retailers heading into the crucial holiday shopping season. While it’s difficult to predict which retailers will reign supreme during the most crucial selling time of the year, one thing is certain: mobile devices will play an even bigger role in supporting retail sales this holiday.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0054 Mobile Websites

The information age now has a variety of channels people can use to access information.  Search engines such as Bing and Google lead people to information on the brand or company they are looking for.  The company's web site may pop up as a leading result on that search and the device being used to search is increasingly some form of mobile smart phone.

This leads to the need for mobile websites.

Marketing likes to think of conversion rates and a funnel that leads prospective customers to an actual purchase.  The mobile website is just one layer, one access point in that path but it is more commonly used than any app the company has made available.  A person seeking information on the company is far more likely to first use a mobile website to gather information, and only then get the app for that company.

MediaPost Publications has a short article on this behavior:

http://www.mediapost.com/publications/article/212877/apps-vs-mobile-websites-the-consumer-choice.html

Here is a snippet from the article:

Consumers may lean to either apps or mobile websites for commerce depending on what company they’re dealing with.

A new study finds that, depending the brand, consumers will lean one way or the other.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0053 Tablet Usage

We are beginning to see some data come together around how and when people are using tablets versus laptop users.  This MediaPost story has the latest information:

tablet-laptop-search-conversions-beginning-to-look-same

"Tablets are beginning to feel more like laptops, confirming an assumption made by Google execs when launching the Enhanced Campaigns paid-search platform -- that eventually, consumers would behave in a similar way on both devices and that conversions originating from each would look the same."

In my blog entry from five months back I posed a simple question: "Is It Truly Mobile?"  In that white paper I challenged the description that tablets were "mobile" devices.

The way I describe it goes about like this: Five years ago people would sit on their couches browsing the internet on their laptops and buying stuff from Amazon.com.  Today people are sitting on their couches with their tablets browsing the internet and buying stuff from Amazon.com.

The latest data supports that notion.

Two key areas to continue to watch in the coming months and years: (1) the mid-size tablet or "phablet" area and (2) the inexpensive advent of wireless carrier support for tablets such as LTE 4G networks.

The mobile internet is upon us and everything we do is changing.

Happy reading,

J.W. Gant

Google Sidesteps Wireless Carriers for NFC

Google has released a new version of the Android operating system, version 4.4, it is calling it KitKat.  One piece of interesting news coming out of this update is a new piece of functionality that allows Near Field Communications (NFC) chips in Android devices to bypass the security layer imposed by wireless providers such as Verizon (and imposed by Google itself in 2011 it should be noted).  Software developers can now use something called "tokenization" to accomplish the security piece.

Wikipedia says:

Tokenization is the process of substituting a sensitive data element with an "easily" reversible benign substitute.

Tokenization is fast becoming the industry standard for cloud-based activity requiring a security component.  My first exposure to it came while working on payments products at a local ISO.

This new piece in the Android OS opens up the operating system for software developers to more freely create apps that use the NFC chip without incurring the cost of engaging in the security layer created by Google and the wireless providers.

What is the major problem here?  Apple still doesn't support NFC in its hardware.  This is, in my opinion, too little too late for NFC.  Some other huge event is required to bring back NFC.

Karen Webster of Market Platform Dynamics has a good piece on this over on pymts.com:

Is-HCE-NFC-s-Killer-App

Her opinion is pretty much in lock-step with my thinking.

...if you hear a stampede back to NFC just let me know. Of course I’ll probably tell you it was more likely the sound of your kids running down the stairs to check out the Loch Ness Monster that was spotted frolicking in your swimming pool.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0052 Amazon.com and Groceries

During the dot-com bubble of the early 2000's we saw a number of traditionally brick & mortar businesses attempt to bring the business to the internet.  A number of these were high profile busts.  A few made it.

Amazon.com is definitely a success story from this era.

Groceries online is not.

So what if Amazon.com started to handle groceries?  Bloomberg.com has the best article I've yet read on this move:

http://www.bloomberg.com/news/2013-10-29/would-you-buy-groceries-on-amazon-.html

Here is a snippet from the article:

“It’s a tricky business,” Merzbacher told me, “not to be entered into lightly.”

Of course, I’m never ready to count Amazon out: For one thing, it doesn't seem all that fixated on actually, y’know, making a profit; and for another, Jeff Bezos is a strategic genius with a relentless focus on flawless implementation. The pilot program in Seattle, Amazon Fresh, seems to be doing OK, and, according to the Wall Street Journal, it’s spurring add-on sales of other items.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0051 Apple's Planned Obsolescence

Planned Obsolescence

WikiPedia helps us define the concept: Planned_Obsolescence

Planned obsolescence or built-in obsolescence in industrial design is a policy of planning or designing a product with a limited useful life, so it will become obsolete, that is, unfashionable or no longer functional after a certain period of time. Planned obsolescence has potential benefits for a producer because to obtain continuing use of the product the consumer is under pressure to purchase again, whether from the same manufacturer (a replacement part or a newer model), or from a competitor who might also rely on planned obsolescence.

This is a topic I've given a fair amount of consideration to.  Apple appears to want to be seen as the premier brand and they certainly treat their customers that way.  Want in to the Apple ecosystem?  Better be willing to pay, pay a lot, and keep paying again and again and again.  Ergo: planned obsolescence.

A New York Times Magazine article states it more explicitly:

Why Apple Wants to Bust Your iPhone

That is an attention getting headline.  The content tells the story to match the attention:

why-apple-wants-to-bust-your-iphone

Here is a snippet from the article:

At first, I thought it was my imagination. Around the time the iPhone 5S and 5C were released, in September, I noticed that my sad old iPhone 4 was becoming a lot more sluggish. The battery was starting to run down much faster, too. But the same thing seemed to be happening to a lot of people who, like me, swear by their Apple products. When I called tech analysts, they said that the new operating system (iOS 7) being pushed out to existing users was making older models unbearably slow. Apple phone batteries, which have a finite number of charges in them to begin with, were drained by the new software. So I could pay Apple $79 to replace the battery, or perhaps spend 20 bucks more for an iPhone 5C. It seemed like Apple was sending me a not-so-subtle message to upgrade.

Happy reading,

J.W. Gant

**UPDATE**

Several more good articles I want to link to.

First, a list of smart quotes for retailers:
http://risnews.edgl.com/retail-insight-blog/Smart-Quotes--Inside-the-Best-Minds-in-Retail89138

Second, the layout of grocery stores as exampled by one store in South Florida:
http://wlrn.org/post/how-south-florida-supermarkets-move-customers-through-their-stores

Last, how Kroger uses data on their customers:
http://www.forbes.com/sites/tomgroenfeldt/2013/10/28/kroger-knows-your-shopping-patterns-better-than-you-do/

That last one is especially good.

Happy reading.

Best Reading of the Day - Entry 0050 Misc

Two entries from today or the weekend are worth taking the time to read.

First up revolves around political campaigns, though we'll leave the politics out of it.  The Obama campaign is well known to have been at the technological forefront during both the 2008 and the 2012 campaigns.  Some of the details have been emerging over time and some of it is directly applicable to retail technology efforts.

The folks at Econsultancy have some lessons learned for us from the latest campaign that makes for worthy reading:

seven-lessons-obama-s-digital-team-learned-from-a-b-testing-emails

Here is a snippet from that article:

In case you’re a few years behind the times, you will be aware that Obama’s re-election campaign was a success.

But what is less well known is the detail of the testing process behind the email strategy that helped to raise more than $500m in online donations.

Next up is the old goodie known as the weekly circular and some efforts to change the landscape of this marketing effort:

retale-takes-a-stab-at-mobilizing-retail-circulars

Mobilization of the weekly circular?  Interesting.  Here is a bit from that article:

Bonial International Group today has launched a mobile application called Retale to help United States retailers deliver the traditional circular in a new format.

A number of other organizations such as the Associated Press have already tried to put out a centralized mobile circular app for retailers, but Retale is confident that it has created the winning solution. Bonial International Group has already launched similar apps in Germany, France, Russia, Spain and Brazil, and it has  accumulated more than 500 European retailers already.

Happy reading,

J.W. Gant

**UPDATE**

BusinessWeek.com has a piece on the "Retale" app spoken to above.

the-surprisingly-simple-retail-app-that-could-juice-holiday-revenue

Looks like it is making waves.

Best Reading of the Day - Entry 0049 Digital Marketing

Another excellent read by the folks at Econsultancy.  This article speaks to interesting digital marketing stats.

What is "Digital Marketing"??

The following is taken from the WikiPedia entry:

Digital marketing is marketing that makes use of electronic devices such as computers, tablets, smartphones, cellphones, digital billboards, and game consoles to engage with consumers and other business partners. Internet Marketing is a major component of digital marketing.

Here is a link to the article:

10-interesting-digital-marketing-stats-weve-seen-this-week

Here is one of the ten from the article:

John Lewis predicts a mobile Christmas

• John Lewis has predicted that this year will be the UK’s first ‘mobile Christmas’ with traffic from mobile phones and tablets overtaking that from desktops for the first time on Christmas Day itself.

• Mobile made up almost 50% of all traffic to johnlewis.com on 25 December 2012, with the peak hour being 9pm.

• The busiest day on mobile last year was 26 December, with over 920,000 visits. Over 1m visits are estimated for this Boxing Day which will be a new record for mobile.

• Mobile now accounts for over 40% of traffic to johnlewis.com and traffic is up over 115% year on year.

Happy reading,

J.W. Gant

**UPDATE**

Here is a great example of how digital is transforming marketing:
cvs-unveils-personalized-circulars

Here is a snippet from that article:

CVS/pharmacy is giving that venerable but perhaps a bit tired marketing channel -- the weekly circular -- a digital makeover. It includes personalized promotions focused on products of interest to consumers.


Have a great weekend.

New Mobile Loyalty for Dunkin Donuts

Digital marketing, digital loyalty, and the mobile internet.  These are all coming together in the efforts being slowly launched by Dunkin Donuts through their mobile loyalty program.

If that image isn't too distracting for you here is a snippet from the article:

The new, mobile-friendly program offers a simplified rewards system, with a platform that updates members' rewards balances in real time.

Guests will earn five points for every dollar they spend on qualifying purchases when they pay using an enrolled Dunkin’ Donuts card, either plastic or via the Dunkin’ mobile app. Once members accrue 200 points, they receive a coupon for a free medium beverage of their choice. 

To read the full article click here:

dunkin-starts-rolling-out-enhanced-loyalty-program

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0048 Misc

I have three items to share today.  Completely unrelated but interesting nevertheless.

First up is a great view by Econsultancy in to how to use Twitter for competitive analysis:

http://econsultancy.com/us/blog/63651-a-six-step-guide-to-using-twitter-for-competitor-analysis

Next is a view of what Staples is doing in mobile to provide a seamless experience between platforms:

http://www.mobilecommercedaily.com/staples-redesigns-mobile-site-for-cross-channel-shopping

Finally, how the payment company LevelUp is seeing their SDK work for retail and QSR businesses interested in incorporating payment & mobile loyalty in to their apps:

http://www.mobilecommercedaily.com/dunn-bros-coffee-caffeinates-loyalty-with-mobile-payments-app

Happy reading,

J.W. Gant

What is MCX?

Merchant Customer Exchange (MCX)

What is it?

I'll look to several publicly available sources to describe this effort.

A visit to the official website is informative, especially to view the number of merchant brands currently signed up:

http://www.mcx.com/

Here is the line on that site describing what MCX is:

Merchant Customer Exchange (MCX) was created by a group of the nation's leading merchants with a singular purpose:  offering consumers a customer-focused, versatile and seamlessly integrated mobile-commerce platform.

Development of the mobile application is underway, with an initial focus on a flexible solution that will offer merchants a customizable platform with the features and functionality needed to best meet consumers' needs. The application will be available through virtually any smartphone.

Which brands are on-board this effort?  Something like 45 brands from over 30 merchants representing more than $1 trillion (with a "T") in annual sales.  Wow.  Notice the verticals represented in this.  Restaurants, quick service, gasoline, technology retail, grocery, etc.  This is a huge effort.

I'll take up a moment to post some public timelines:

• March 2, 2012 - It was reported that Target and Wal-Mart had been working "for some time" on a mobile payments project
• August 15, 2012, MCX was announced and had merchants with $1UST already signed up
• July 18, 2013 the CEO, Dekkers Davidson, was announced for MCX

Here is a write-up by Mobile Commerce Daily on the effort:

mcx-makes-bid-to-win-over-small-merchants-as-rollout-date-nears

Here is one more view that should help:

mcx-and-the-giant-payments-networks

If you've been reading my blog and have seen posts on mobile payments, ISIS, MCX, etc. and haven't quite known what MCX is this post should help.  I've tagged this post with a couple labels.  You can click on them, below, and locate all other posts in my blog related to that tag.

Have a great week,

J.W. Gant

Best Reading of the Day - Entry 0047 Kohl's and MCX

The folks over at Mobile Commerce Daily do a great job capturing stories that have an interest to me in my new role.  The latest looks at the work Kohl's is doing to prepare for the holidays and what that is shaping up to look like in their iPhone app.


kohls-lays-groundwork-for-mobile-payments-with-holiday-investments

Here is a snippet from the article:

Kohl’s has unveiled its holiday marketing plan that centers around the retailer’s iPhone application, possibly hinting at a larger mobile payments plan from the retailer in the future.

...

Paving the way for mobile paymentsKohl’s is one of more than 30 retailers working with MCX to roll out mobile payments at point-of-sale systems (see story).

Some expect MCX to roll out this quarter in time for the holidays, and the mobile news from Kohl’s may give marketers a glimpse of what to expect from the service.

Very interesting perspective, outside looking in by the analyst at Mobile Commerce Daily.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0046 Two Stories For You

I'm posting two stories today, one that has been sitting in my queue for a few days.  Both are excellent.

Mobile is driving digital coupons, or mCoupons:
well-of-course-mobile-is-driving-digital-couponin

Aisle411 is partnering with iBeacon provider Estimote to create best in breed in-store navigation:
aisle411-partners-estimote-indoor-retail-mapping

Very interesting information overall and both are worthy of being the "Best Reading of the Day".

Happy reading,

J.W. Gant

New iPad, the iPad Air, Announced

Is this big news?

It certainly does appear we've seen a plateauing of technology news.  Nothing really exciting came out with the iPhone 5S and nothing really exciting was announced today.

Que sera sera.

Here is a brief write-up from ZDNet on the iPad Air:

http://www.zdnet.com/apple-announces-ipad-5-heres-what-you-need-to-know-7000022267/

It will be at a starting price of $499 while the iPad 2 remains at $399.  The iPad Mini gets a resolution bump to the "Retina" display quality and a bump in price too: also $399.  Apple still prefers "premium" to any other title.

On of my favorite bloggers has a short bit on the plateauing of tablets that is worth reading:

http://www.zdnet.com/tablets-hitting-the-wall-for-innovation-7000022223/

Finally, here is a short bit on the iPad Mini:

http://www.zdnet.com/apple-pins-a-retina-display-onto-the-next-ipad-mini-7000022227/

Happy reading,

J.W. Gant

**UPDATE**

Good post on ComputerWorld.com:
new-ipad-air-ipad-mini-leave-plenty-room-windows-8-tablets-succeed

Here is a quick quote from it:
If you're looking for innovative new tablet form factors, you'll need to look to Windows 8 tablets, not to Apple. There are plenty of devices that don't even have proper names yet, sometimes called convertibles, hybrids, or two-in-one devices. Microsoft, HP, Nokia, Dell, Lenovo and others have all been experimenting with them. There's one common denominator among them: They all can function not only as tablets, but as ultrabooks as well. 

**UPDATE #2**

This is hilarious:
http://pocketnow.com/2013/10/29/nexus-versus-ipad

"Why do people buy Apple products?"

Best Reading of the Day - Entry 0045 Walmart and Amazon.com

Excellent reading in the New York Times over the weekend.  Walmart has designs to sell all things to all people in all places around the world.  As much as anything they know eCommerce is a threat to their business but it is also an opportunity and they are moving.

to-catch-up-walmart-moves-to-amazon-turf

Here is a snippet from the article:

A plucky Silicon Valley company, forced to compete for talented engineers, is trying it all — recruiting billboards on Highway 101; workplace perks like treadmill workstations and foosball tables; and conference rooms named after celebrities like Rihanna and Justin Bieber.

The name of that arriviste company?

Walmart.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0044 Too Loyal

How much is too much?

The mobile internet is often thought of in marketing as the enabler for next generation loyalty.  That is probably the right idea but how much of a good thing is too much?

Mobile Commerce has some thoughts on that question:

retailers-misplace-emphasis-on-loyalty

Here is a snippet from the article:

Retailers that heavily invest in loyalty and neglect to create compelling mobile and online shopping features are missing the mark meeting in-store shoppers’ needs, according to a new report from Acquity Group.

Here is the study referenced in that article:

In Store Loyalty

Here is a short part of that write-up:

“The rise of omnichannel commerce has driven retailers to invest in strategies that engage consumers across channels,” added Knicker. “Our study demonstrates the importance of appealing to consumers’ specific preferences when targeting them across platforms. It also confirms that consumers’ preferences change both with age and as technology and design capabilities advance. Loyalty programs, once regarded as important to gaining and retaining customers, have been shown to be the least important when up against the time-honored factors of price, convenience, product availability and customer service, all of which can be delivered through a seamless omnichannel experience. It is clear brands that don’t align their experiences with evolving consumer expectations will miss out on revenue opportunities.”

Happy reading,

J.W. Gant

Microsoft Windows 8.1

My Thinkpad Tablet 2 with Microsoft Windows 8 has been cruising along quite well this year.  Some minor spotty issues but nothing an Early Adopter should get upset about.  Yet I was greatly looking forward to the release of the Windows update known as "Windows 8.1" that started rolling out yesterday.

One of the bloggers I follow over on ZDNet has a write-up that is tough to beat:

windows-8-1-makes-the-thinkpad-tablet-2-even-better

Great little device.  Here is a snippet from his write-up:

Before the Windows 8.1 update the ThinkPad Tablet 2 wasn't slow, but it was a typical Atom-based PC. The more tasks launched to run at the same time the more the tablet would slow down. This slowdown is just the way it is with Atom processors, they work fine to a point and then performance is impacted.

Since updating the Tablet 2, Windows 8.1 has improved performance across the board and that is surprising. I usually have a number of apps, both Metro and legacy desktop apps, running all the time. They now all run as smooth as butter with the entire system operation noticeably faster. The little lags that would pop up under Windows 8.0 are all gone.

What about Windows 8.1 overall?  The folks at ARS Technica have an excellent review:

windows-8-1-what-a-difference-a-year-makes

While the Start screen doesn't look much different from the original there are subtle differences and wonderful improvements in the interface:

Happy reading,

J.W. Gant

PS  If you are thinking of coming onboard the Windows tablet world keep an eye out for new devices in the coming months.  The Intel Haswell processors will be debuting again and again by several manufacturers such as Dell and Lenovo.

Best Reading of the Day - Entry 0043 Push Notifications

The area of best practices for push notifications, those informational alerts that pop up on your smart phone, is a critical area for digital marketing.  CMO.com has a bit on this through TechCrunch:

http://www.cmo.com/content/cmo-com/home/articles/2013/10/15/the_precise_art_of_m.frame.html

Here is a snippet from the story:

“...the basic problem with push notifications is they are used [as] an email replacement. I can see marketers and growth hackers getting all hot n’ heavy realizing that they can now send the weekly “people you should follow” email that nobody reads as a push notification to your mobile device.”

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0042 Product Managers

It is good to occasionally step back and take stock.  Sometimes it can also be advantageous to take some time to focus on the basics, blocking & tackling as the saying goes.

What is a Product Manager?

The Next Web has a short write-up on this and it is worthy reading:

http://thenextweb.com/insider/2013/10/12/product-managers-mini-ceos/?fromcat=all

Here is a snippet from the story:

In the world of technology, it’s often the engineers and designers that are among the most celebrated. They are the people who literally build amazing products that we enjoy, such as Instagram, Gmail, Twitter, Android, iOS, and other software, hardware, and services. But it’s not magic that helps guide them to take an idea from start to finish — that heavy responsibility rests on the shoulders of product managers (PM).

Happy reading,

J.W. Gant

Mac Sales Falling Faster than Windows PC

Much has been made in the news over the last year or so about the precipitous decline in PC sales.  I've written about this as well ( best-reading-of-day-entry-0016  ).  However, when was the last time you saw the numbers for Apple products other than iPhones or iPads?

Well, turns out those numbers are ... well, aweful.

http://www.itnews.com/

Here is a snippet from that:

Mac shipments in the U.S. during the third quarter fell at a dramatically steeper rate than that of sales of other PCs, including those powered by Microsoft's Windows, IDC said Wednesday.

According to the research firm, Apple's personal computer shipments in the United States slumped 11.2% year-over-year to 1.9 million machines. The PC business as a whole contracted just 0.2% as sales picked up more momentum than had been expected, with all four of the remaining top 5 -- HP, Dell, Lenovo and Toshiba -- posting positive growth numbers for the quarter.

Apple's decline was 56 times that of the industry average.

Very interesting.  Are we seeing the death of the PC?  I still doubt it but we are seeing a strong rise in Tablets and Phablets that are cannibalizing PC sales under both the Microsoft and the Apple umbrellas.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0041 The Mobile Playbook by Google

Google is out with what they are calling a "Playbook" for mobile.  The idea is to make the case for action in the mobile space.  Excellent read overall.

http://www.themobileplaybook.com/en-us/#/cover

Here is a screen-capture of their conclusion by way of a checklist:

Happy reading,

J.W. Gant

PayPal Payments with QR Codes

PayPal continues to make news, and make moves, in the brick and mortar payments space.

Mobile Commerce Daily has a short write-up on this:

paypal-backs-qr-codes-for-real-world-dominance

Here is a snippet from the article:

PayPal’s decision to support QR codes for mobile payments reflects the technology’s ubiquity while cementing the company’s aspirations to transfer its online success to bricks-and-mortar transactions.

The QR code push follows PayPal’s introduction last month of Beacon, an in-store payments solution leveraging Bluetooth technology. At the same time that PayPal continues its push into in-store payments, it faces growing competition online thanks to Amazon Login and Pay, enabling ecommerce retailers to let customers pay on desktop or mobile using their Amazon account.

Happy reading,

J.W. Gant

New Collaboration for Mobile Payments - Visa, MasterCard, and American Express

The pot keeps getting stirred as more and more players work more and more angles in the mobile payments space.

Two days ago Visa, MasterCard, and American Express announced a partnership to develop a new global standard for mobile payments.  Mobile Commerce Daily has some information on this:

mobile-payments-power-play-faces-significant-challenges

Here is a snippet from that article:

By teaming up to create a new standard that would streamline mobile payments, leading card networks Visa, MasterCard and American Express hope to ensure a prominent role in smartphone and tablet transactions while also driving overall adoption by consumers and retailers.

Very interesting news.

Happy reading,

J.W. Gant

Best Reading of the Day - Entry 0040 Mobile Revolution

The Progressive Grocer web site has a good "Expert Column" up yesterday speaking to the Disruptive Mobile Revolution we are currently in the middle of.

expert-column-the-disruptive-mobile-revolution/

Here is a snippet from the article:

What just happened? During every revolution there is a moment in time when you reach the point of no return. As marketers look to reach consumers and affect their shopping behavior in an increasingly targeted way, that time is now, as mobile technology has exploded on the scene.

Smartphones and tablets have now reached critical mass to fundamentally impact shoppers’ behavior.

Happy reading,

J.W. Gant