Happy New Year's Eve!`

Just about time to say goodbye to 2014.  I truly hope it has been a good one for you and your families.

Here's to 2015!

Hope you've enjoyed the reading.

J.W. Gant

In-Store Pickup Issues, Walmart Gift Card Program, and Macy's Award

Hello Everyone,

I hope 2014 has been a great year for you.  This will be my final research post of the year.

First up is an interesting study on in-store pickup issues.  Seems the checkout process is considerably longer when performing in-store pickup, vs. store shoppers who've done their own picking.  This matches my own experience recently at Best Buy.  After waiting more than the requested time to come to the store my order still wasn't ready so they sent the picker off to find and fulfill my order.  He couldn't locate the product.  After watching him wander around for a few minutes I went directly to the location I expected it would be at and found it on the shelf.  Seems the real problem for pickers is the lack of familiarity with products, each store having tens of thousands of SKUs. Whereas the customer knows exactly what they are looking for.

Here is the story:

http://www.chainstoreage.com/article/study-store-pickup-offers-slower-checkout

Next up is a Walmart gift card trade-in program they've recently launched.  Trade in cards from other retailers for Walmart credit.

http://www.progressivegrocer.com/departments/technology/walmart-launches-gift-card-exchange

Finally is the award to Macy's for best in mobile 2014.  They've earned it in my estimation.

http://www.mobilecommercedaily.com/macys-is-2014-mobile-retailer-of-the-year

Happy Reading,

J.W. Gant

Misc News - Hershey SMS, Dunnhumby Predictions, and Chevron with Apple Pay

A few stories are worth your time today.

First is the use of SMS messaging by Hershey's to enable in-store interaction with consumers.  This is in preference, for now, over bluetooth beacons.

http://www.mobilecommercedaily.com/why-hershey-co-chose-sms-not-beacons-for-in-store-engagement

Next is a very good story by Dunnhumby predicting what 2015 will contain.  This is the best reading of the day really.

http://mobilemarketingmagazine.com/2015-predictions-Dunnhumby-use-data

Finally is news on Chevron signing up for Apple Pay at the pump.

http://appadvice.com/appnn/2014/12/chevron-working-to-integrate-apple-pay-at-its-gas-pumps-by-early-2015

Happy Reading,

J.W. Gant

Instacart Valuation at $2USB

Wow!

Just 6 months ago this little Silicon Valley startup company that delivers groceries was valued at $400 million.  They just wrapped up a new $220 million funding round that values the company at $2 billion.  They've been busy.

Re/Code has the story:

http://recode.net/2014/12/30/grocery-delivery-startup-instacart-scores-220-million-investment/

Looks like private equity believes Instacart has legs and grocery delivery is real.

Happy Reading,

J.W. Gant

Apple Pay, CurrentC, and Amazon

A few good articles I've found today, though one is a few days old.  These are good reads overall.

First up is the beginning of what is sure to be series of articles we'll see that summarize the year.  This year-end tradition is a bit annoying to me overall but has its worth I guess.  This one is good if you haven't followed along closely with events in mobile payments:

http://www.mobilepaymentstoday.com/articles/2014-in-review-part-i-apple-pay-mcx-the-uk-and-beacons/

Next is an article on ComputerWorld about Apple Pay and the issues we've seen with various forms of mobile payments.  This is worthy of the read just for the part on McDonalds and Apple Pay:

http://www.computerworld.com/article/2862227/hold-the-phone-mcdonald-s.html

Finally is news from Mobile Commerce Daily about Amazon.  Seems mobile is a huge part of their eCommerce business now, thanks to both smart phones and tablets I'm sure.

http://www.mobilecommercedaily.com/amazon-com-sees-nearly-60pc-of-consumers-shop-via-mobile-devices

I hope your holiday season is going well.  Best Regards to all.

Happy Reading,

J.W. Gant

Happy Holidays!

I hope you and your family are enjoying a wonderful holiday season!

A quick google search of holiday images resulted in this one that I hope you'll enjoy (and I hope isn't copyrighted in some way).

See you later,

J.W. Gant

Best Reading of the Day - Entry 0179 Amazon Showing Cracks?

Very good article over on the New York Times regarding Amazon.

Internally I've been saying since early summer after a decade of hearing about nothing but eCommerce conquering traditional retail the new mobile-centric world is enabling retailers to strike back.
















This article seems to take that idea to heart:

http://www.nytimes.com/2014/12/18/technology/personaltech/amazon-not-as-unstoppable-as-it-may-appear.html?ref=business&_r=0

Here is a snippet from the piece:

“I’m seeing the first big cracks in Amazon at this point, and it will be interesting to see how they handle it,” said Venky Harinarayan, a tech investor and entrepreneur who worked closely with Mr. Bezos in the early 2000s, after selling a company he helped start, Junglee.com, to Amazon.

...

“Wall Street has given them a lot of leeway in prioritizing growth over profitability, and they’ve taken full advantage of that,” he said. “But it’s going to get harder and harder to get that license, and when that happens, we’ll see how their business starts to look, and how they respond to challenges.”

What will 2015 bring?

Happy Reading,

J.W. Gant

Samsung Mobile Payments and M&M's Crispy

News, news, news.

Mobile payments is in the news again, this time from Samsung's corner.  The news began to break late yesterday afternoon but I couldn't find anything in writing that told the story.  Here is a story from Mobile Payments Insider:

http://www.mobilepaymentsinsider.com/2014/12/17/samsung-in-talks-to-launch-apple-pay-competitor/

Here is a snippet from that piece:

Samsung is in discussions over a possible deal with payments start-up LoopPay that might see the smartphone maker launch its own mobile payments system to challenge Apple Pay in 2015.

Samasung’s new smartphone is due for release in early 2015, and the negotiations with LoopPay may mean that those with newer Samsung models will be able to pay for goods in-store using their phones rather than card or cash.

A source told Re/code that the deal has not yet been finalised, but a prototype of the payments system on a Samsung phone has been created.

Looks like the folks over at Re/Code have much of the news:

https://recode.net/2014/12/16/samsung-in-talks-to-launch-apple-pay-competitor/

Next up is a tiny piece of news that brought a smile to my face just in time for the holiday season.  Do you remember Crispy M&M's??  No?  Well you'll soon have a chance to try them all over again.

http://www.progressivegrocer.com/departments/center-store/actress-vanessa-williams-heralds-return-mms-crispy

Here is a brief piece on the news:

After a decade-long absence, Mars Inc. reintroduced M&M's Crispy Chocolate Candies to store shelves this month, with a nationwide rollout planned for January 2015.

In celebration of the candies' return, Vanessa Williams, actress and voice of M&M's character Ms. Brown, joined the brand at M&M's World New York to give fans a first taste. Williams cut a ribbon across a special shelf stocked with M&M’s Crispy, and handed out samples to store guests.

January is the national launch.  Look for them on store shelves and let me know what you think.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0178 Beacons at Banks

I hope your holiday season is going along smashingly as we approach the winter solstice.  Shortest day of the year is right around the corner, then the days start getting longer again.

Mobile Commerce Daily has the piece:

http://www.mobilecommercedaily.com/us-bank-mitek-predict-takeoff-of-beacons-mobile-deposit-in-2015

Here is a snippet from it:

U.S. Bank, working with mobile capture software company Mitek, predicts that banks and financial institutions will see beacon usage take off in 2015, helping deliver more personalized experiences.

The commerce institutions believe that more consumers will be gravitating towards mobile imaging in banking and deposits, as those functionalities enable users to take a photo with their mobile device’s camera to participate in a loyalty program or snap a photo of a credit card to automatically populate the information. Enhanced smartphone capabilities, in addition to the increasing adoption of beacons and other proximity-based targeting efforts, are set to provide customers with more personalization than ever in the financial sector.

The year of the beacon is coming to a close.  Will we have any more news on this front prior to 2015?  I'm betting we will.

Happy Reading,

J.W. Gant

Amazon, Krispy Kreme, Waze and State Driver's Licenses in the News

Some very interesting and cool news has come out the last couple of days and I've decided to capture a few of those here.

First up are a couple posts about Amazon.

This one is mobile gift cards through Facebook via Amazon, a very exciting space to follow:

http://www.mobilecommercedaily.com/amazon-joins-growing-number-of-brands-leveraging-mgift-cards

This details that Amazon's app has been pulled from Google Play due to it enabling the ability to download apps from Amazon's own app store:

http://mobilemarketingmagazine.com/google-amazon-app-store-non-compete-play

Now we move over to Krispy Kreme's jump in to mobile payments ala Dunkin' Brands and Starbucks with two article worth your time.  Both mobile payments and loyalty are covered:

http://www.pymnts.com/news/2014/krispy-kreme-launches-into-mobile-payments/#.VIr0EtLF_9Y

http://www.mobilecommercedaily.com/krispy-kreme-swirls-up-donut-rewards-with-new-loyalty-app

Here is a little piece on the impact the crowd-sourced traffic navigation app Waze is having on communities around Los Angeles:

http://www.cnbc.com/id/102261534

Finally is news about the State of Iowa working on a mobile app version of its driver's license.  First I've heard of this from a State.

http://www.digitaltrends.com/mobile/iowa-will-let-drivers-use-smartphone-drivers-license/

Tons of great stories there.  Hope you enjoy them before starting a great weekend.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0177 Google and Apple Smartphones

If you are looking for one, concise, article to sum up what is happening in the smartphone wars between Google and Apple look no further.  The folks over at Re/Code have it:

http://recode.net/2014/12/11/how-to-understand-the-google-apple-smartphone-war/

Here is a snippet from that piece:

When thinking about smartphones — the most important digital devices today — it’s customary to think of the business as a simple market-share contest. The conventional wisdom is that, of the two players who count, Google, via its Android platform, has soundly trounced Apple, via its iOS platform. So, game over.

But, as with most conventional wisdom, this example is oversimplified and ignores many nuances. The game is not over. In fact, the two contestants are playing different games, in which success isn’t mutually exclusive. Both have been very successful, but by different metrics and different skills.

And each of these heavyweights is facing serious challenges, though rather different ones.

Notice Windows Phone isn't mentioned at all as it lingers in the single digit market share range, and Blackberry is just a blip on the radar.

The reason this is the best read of the day is due to both the excellent groundwork the article does and the very recent news captured there such as the quotes from the Apple iPhone product team.

Happy Reading,

J.W. Gant

Papa John's Pizza Digital Orders Now 50% of Sales

This number really hit me.  One half of all sales of Papa John's pizzas are now digital orders.  The company cites mobile (likely including both tablet and smart phones) as the reason for the dramatic rise.

Wow!

This article tells the story:

http://www.mobilecommercedaily.com/papa-johns-hits-mobile-milestone-with-50pc-digital-sales

Here is a snippet from that piece:

Papa John’s claims to be the first brand in its industry to surpass the digital and mobile sales milestone. The company, which was the first U.S.-based pizza chain to introduce digital ordering to its delivery restaurants in 2001, continues to streamline the payment process by accepting Google Wallet Instant Buy for delivery and take-out orders placed via its Android mobile application.

The article appears to incorrectly report the Papa John's app is only available on Android.  A quick look at the mobile website on my iPhone and I was prompted to download the app, in the store since 2011.

Regardless this is a huge statement.  Mobile first is increasingly becoming the avenue of choice for major brands.  QSR is definitely all over this.  Who will come next?

I find the portion on the mobile loyalty program at Papa John's to be particularly interesting.  Good read and worth taking the time.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0176 Starbucks iBeacons and more

Very interesting news coming out of Starbucks and well worth the time to read.

Here is the best read of the day showcases iBeacons in use at some Starbucks locations:

http://www.mobilecommercedaily.com/starbucks-cooks-up-ibeacon-strategy-to-support-premium-coffee-emphasis

Here is a snippet from that piece:

Starbucks said it would bring out iBeacon technology in the coming year to allow customers at its premium-coffee Roastery and Tasting Rooms to access information about freshly brewed coffee via smartphones. The move further advances Starbucks’ mobile strategy, in which it is already a leader in mobile payments, at a time of stagnant sales and intense competition.

“Beacons can be a boon for brands, but they can also work negatively if they don’t create a positive experience for the consumer,” said Vanessa Horwell, principal and chief strategy officer with ThinkInk, Miami.

The year of the beacon rolls on.

Here is one more, also from Mobile Commerce Daily, about location based marketing at some Starbucks locations:

http://www.mobilecommercedaily.com/starbucks-asda-use-proximity-targeting-on-mobile-to-drive-in-store-traffic

Here is a snippet from that piece:

Starbucks and Asda are leveraging proximity targeting on mobile devices to raise brand awareness of new products, drive consumer traffic and enhance the in-store experience as part of their ongoing efforts to dominate the mobile space.

With Starbucks mobile ordering officially rolling out for Portland customers this week, the beverage brand is continuing to bolster its growing mcommerce strategy and loyalty platform. A recent mobile advertisement campaign in Britain leveraged location data and Store Visitation Lift for Starbucks and supermarket chain Asda, resulting in a more than 60 percent lift in store visits after the campaign was completed.

Very cool work going on at Starbucks, a brand worth following.  I hear they are also pretty good at mobile payments....

Happy Reading,

J.W. Gant

PS  One more story about Starbucks came out yesterday that I failed to include here, this one regarding mobile ordering and pickup.
http://mobilemarketingmagazine.com/starbucks-mobile-order-and-pay

Here is a snippet from that piece:

Starbucks has launched its Mobile Order & Pay system in Portland, Oregon ahead of the solution being rolled out across the US in 2015.

The system enables customers to place orders in advance of their visit and pick them up at their chosen Starbucks store, and is integrated into the popular Starbucks app and mobile loyalty scheme.

Starbucks is making moves.

Apple Pay Not Igniting

I've seen a few stories on Apple Pay since Thanksgiving Day so I'm revisiting the subject once more this year.

Here is my previous post on the data coming out of Black Friday (the news wasn't good for Apple Pay):

http://thagent.blogspot.com/2014/12/black-friday-news-apple-pay-google-and.html

This is the story that finally pushed me to put out another blog entry on the subject:

http://appadvice.com/appnn/2014/12/my-apple-pay-experience-at-bloomingdales-left-me-feeling-ugg

I'd like to quote one portion of that piece I find to be extremely interesting:

Last week, a MacRumors forum member said that a recent McDonald’s visit ended in disaster because employees didn’t know how to use Apple Pay. My experience at Bloomingdale’s, though different, lead me to the same conclusion. Retailers aren’t training their employees on how to use Apple Pay.

The pin pad message that I saw on Saturday clearly suggests that Bloomingdale’s is about to begin accepting Apple Pay, at least at [this] location. Unfortunately, it’s also clear that when the service does go online, sales associates may have little clue on how to use it.

For Apple Pay to succeed, Cupertino needs to do a lot more than sign up new banks and retailers. They also need to make sure that these partners train their staff on how to use it. Otherwise, one bad experience may convince a user to never try the service again.

The sales associates at retail stores might need training on a completely new payment method?  Wow.  I think the author is on to something.

Finally is one more write-up from the folks at PYMTS.com:

http://www.pymnts.com/news/2014/why-apple-pay-is-fizzling/#.VIXDwNLF_9Y

Here is a snippet from that piece:

Unless a large proportion of [iPhone 6] users are evangelizing Apple Pay, asking about whether they could use it, and putting pressure on merchants to accept it or else lose their business, merchants have very little incentive to make any effort to accept it.

And effort is needed—they need to educate their cashiers and most importantly install NFC terminals if they don’t have them. As it turns out a small fraction of a small fraction of customers are using Apple Pay at merchant locations that take Apple Pay. There is just no evidence that there is a groundswell of consumers demanding that other merchants take Apple Pay, or that merchants risk losing sales [if] they don’t take it.

I've stated previously this move by Apple seems much more targeted towards the Asian phone market than towards payments in the United States.  If you are an Apple executive you better hope that was the thinking.  It could be many years before Apple Pay becomes a force, if at all, and that will give the banks and the retailers a whole lot of breathing room to get their own products to market.

Happy Reading,

J.W. Gant

Updates on Facebook Ads and Target's Game

A couple of stories came out that tie to recent posts on this blog.  Excellent follow-up pieces.

First up is an analysis of Facebook's new advertising:

https://econsultancy.com/blog/65841-four-recent-improvements-to-the-facebook-ad-platform

Here is a snippet from that piece:

Do you advertise on Facebook? Or plan to? If so, then you should know that there have been some big changes lately.

To help you navigate these, here are 4 recent improvements which will help you advertise on Facebook more effectively.

Facebook is changing how brands deliver content on the platform. Unpaid, or 'organic', reach has declined dramatically and Facebook has made it clear that this trend will continue. This is bad news for companies who have built their business on reaching customers on Facebook at no cost.

But for those who are willing to pay, Facebook has been much kinder. They are now regularly updating their ad tools to make it easier for businesses to advertise on the platform and reach those who might be interested in what they have to offer.

Next is a story from Google Think about Target's Mobile Game:

https://www.thinkwithgoogle.com/articles/target-mobile-game-provides-fun-in-store-experience.html

Here is a snippet from that piece:

Holiday shoppers use their mobile devices for all kinds of things. They might see a product on a shelf, use their phone to conduct research and price comparison, examine the product in person and then decide whether to buy it in-store, online or not at all. What if that phone could also offer a fun shopping experience that supports the retail brand? And what if that experience could be used to attract more shoppers to your store? That's what Target is aiming for with the new Bullseye's Playground in-store gaming experience, built in partnership with Google's Art, Copy & Code team.

Happy Reading,

J.W. Gant

Cyber Monday News and Other Stories

Quite a number of stories caught my eye today and a lot of news has been made.

Here are a few good reads.

First is Target with a mobile interactive game for both in-store and out of store.  Cool!

http://www.mobilecommercedaily.com/target-boosts-in-store-experience-with-mobile-game-during-holiday-season

Next is Nielsen stating brands will need a stronger mobile presence in 2015.  Ya think?

http://www.mobilecommercedaily.com/nielsen-and-mobile-majority-execs-2015-forecast-requires-heavier-brand-investment-into-mobile

Cyber Monday news is coming in including this story showing the records falling in 2014:

http://multichannelmerchant.com/news/cyber-monday-caps-record-5-day-cyber-weekend-03122014/

Continuing the Cyber Monday news is a story on Walmart breaking its old record for traffic during this time.  They are clearing seeing rewards from their efforts in mobile.

http://multichannelmerchant.com/news/walmart-breaks-online-records-cyber-monday-2014-02122014/

Finally is a story on CMO.com stating retailers have lengthened the shopping season:

http://www.cmo.com/articles/2014/12/2/adi_retailers_succee.html

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0175 Beacons, Beacons Everywhere

The Associated Press has a very good read about the impact beacons/iBeacons are having on this holiday shopping season.

The year of the beacon continues.

Here is the story:

http://bigstory.ap.org/article/3af61653dd3247a89869cda3ea3e0b36/beacons-pop-stores-ahead-holidays

Here is a snippet from that piece:

The vast majority of shopping is still done in stores. E-commerce is fast-growing but accounts for only about 9 percent of total retail sales, according to Forrester Research. Beacons merge in-store shopping with mobile access to information — and data shows they work.

Between July and September, 30 percent of shoppers who received a "push-ad" from an in-store beacon used that offer to buy something, according to a survey by Swirl, a marketing company that has created beacon plans for retailers such as Lord & Taylor, Hudson's Bay, Alex and Ani, Kenneth Cole and Timberland. Sixty percent of shoppers opened beacon-sent messages, and over half of those surveyed said they would do more holiday shopping at the stores as a result of their beacon experience.

I've already written quite a bit about beacons in these pages this year so I'll let that story speak for itself.  If you wish to see earlier posts about beacons or iBeacons look to the bottom left of this site for my tags and click on the relevant item.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0174 Social Media Nightly News

Does that title make any sense?

Social Media Nightly News

Didn't think so.  Yet, it does.

ABC is kicking off a Facebook version, supplement, or enhancement (call it whatever you like) to its World News Tonight.  Interesting new approach.

http://adage.com/article/digital/abc-kicks-social-media-version-world-news-tonight/296024/

Here is a snippet from that piece:

The 1-minute-long news summaries will appear every weekday, starting today, on the show's Facebook page. In what the company said was a first for a network anchor, "Facecast: The One Thing" will be hosted by David Muir, who took over the evening newscast from Diane Sawyer in September.

Three other stories caught my eye, finally, and are worth noting.  Digital coupons are catching fire in the Supermarket vertical.

First is the Golub Corporation promoting the new Groupon app:
http://supermarketnews.com/marketing/price-chopper-promotes-new-grocery-app

Next is Meijer with their new mPerks rewards campaign:
http://www.chainstoreage.com/article/meijer-readies-digital-coupon-promotion

Finally is SpartanNash with their digital coupons:
http://www.progressivegrocer.com/industry-news-trends/wholesalers-distributers/spartannash-digital-coupons-hit-15-redemption-rate

Happy Reading,

J.W. Gant

**UPDATE** Corrected a typo stating the three stories are worth "noting" vs. "nothing".

Best Reading of the Day - Entry 0173 Facebook

Some excellent reading on social media in general and a number of spots on Facebook.  All of these are worth reading.

The best read of the day is this piece on the science behind the numbers in social media:

http://arstechnica.com/science/2014/12/making-social-media-research-more-reliable-and-reproducible/

Here is a snippet from that piece:

For researchers interested in studying human behavior, the explosion of social media data provides incredible opportunities. The result has been an explosion of research using this data...

However, despite the potential of these data sets to provide insights into human behavior, “mounting evidence suggests that many of the forecasts and analyses being produced misrepresent the real world,” Pfeffer and Ruths caution. The use of this data is rife with problems, many of which have already been addressed by other disciplines and are not insurmountable, but which must be dealt with to improve accuracy in the field.

Here are a few on Facebook in particular:

Facebook moves to the Enterprise
http://www.cio.com/article/2853015/facebook/how-facebook-at-work-could-alter-the-social-enterprise-landscape.html

How to Master Facebook marketing
http://www.mycustomer.com/feature/marketing-social-crm/how-master-facebook-marketing-age-pay-play/168589

Response to Facebook's latest Cuts
http://adage.com/article/digital/advertisers-shake-facebook-s-latest-reach-cuts/295913/

Happy Reading,

J.W. Gant

Black Friday News - Apple Pay, Google, and the Evolution of the Day

Hello Everyone,

I hope the turkey was good to you last week.  On with the news.

First up is news on Apple Pay and how usage data has played out this holiday season.  Overall the churn rate seems to be ... not good.  People try it in small numbers and largely do not return. Looks like they need a more compelling reason for people to use this.  Check out the numbers on the survey.  Very interesting responses.

http://www.pymnts.com/in-depth/2014/apple-pay-a-bust-on-black-friday-new-data-shows/#.VHynXtLF_9Y

Next is a story on the evolution of Black Friday.  Times are a changin' folks.

https://nrf.com/news/three-factors-influencing-the-evolution-of-black-friday-shopping

Next is a pair of stories about shoppers and Black Friday, headlined by Google's analysis:

https://www.thinkwithgoogle.com/articles/shoppers-go-mobile-black-friday-weekend.html

http://www.mediapost.com/publications/article/238928/in-weaker-black-friday-weekend-mobile-is-the-big.html

That second story is worth quoting the headline:

In Weaker Black Friday Weekend, Mobile Is The Big Winner

Happy Reading,

J.W. Gant

PS  One item of note should be included here.  Best Buy's website went down on Black Friday.  The good news here is the reason why and there is nuance to it that is very interesting.  We've seen retail websites crash before but for all the wrong reasons.  On this day the site went down due to huge traffic and much of that traffic came from mobile devices.  Wow!  That is a great problem to have.  Here is one story on this:
http://fortune.com/2014/11/28/best-buys-website-down/
Welcome to December folks.  Ready to do your shopping?

Best Reading of the Day - Entry 0172 Approaches to Social Media

AdAge has a very good little article on social media, mostly because of the amusing pieces captured throughout by way of warning.

http://adage.com/article/digitalnext/play-safe-social/295919/

Here is a snippet from that piece:

2) Don't use a hashtag. Not only can it be misappropriated, like #McDStories, but some can be misread. The best version of this was when Susan Boyle's album was promoted using #susanalbumparty, which turned into an inadvertent nod to the Saturday Night Live sketches of Sean Connery misreading Jeopardy categories. Just avoid hashtags altogether.

I'd say the title of the article gets it right.  If you want to 'play it safe' in social media you should follow the guidelines as written in the article.  However, no use of hashtags for example is not going to get you too far in social media.  Consider this article to be fair warning should you choose to do other than merely playing it safe.

Happy Reading,

J.W. Gant

Dekkers Davidson of MCX at Money 20/20

Slowly making the rounds is an interview the CEO of MCX held at Money 20/20:

http://www.bloomberg.com/video/mcx-s-dekkers-davidson-on-currentc-mobile-payments-_p6~512xRuK3CyaJkqKyBQ.html

Worth taking the 6 minutes or so to view.

Happy Viewing!

J.W. Gant

Best Reading of the Day - Entry 0171 Apple WatchKit Information

While this certainly qualifies as technobabble for most readers the write-up at ArsTechnica on the software for the Apple Watch is very interesting reading for the geeks out there.

http://arstechnica.com/apple/2014/11/apple-releases-watchkit-developer-tools-alongside-first-ios-8-2-beta/

Here is a snippet from that piece:

According to Apple's WatchKit page, Apple Watch apps are actually divided up into two parts. One is "a WatchKit Extension" that actually runs on your iPhone, and the other is "a set of user interface resources that are installed on Apple Watch." The iPhone's more powerful SoC will actually be executing the code, and you interact with that code through the UI on the watch's screen.

So you won't download any Apple Watch apps, rather you'll download an app for your phone and it will interact with your Watch.  Most of the processing will happen on the phone as well through the 'always on' connection.  Sounds like the Apple Watch could be a battery drain for your iPhone.

Hmmm.

Going to be interesting next year when this thing is released.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0170 A/B Testing Science

The folks over at eConsultancy have just wrapped a very good 3 part series on split testing, or A/B testing.

What is A/B testing?  How about WikiPedia to help?

http://en.wikipedia.org/wiki/A/B_testing

Here is the definition listed there:

As the name implies, two versions (A and B) are compared, which are identical except for one variation that might affect a user's behavior. Version A might be the currently used version (control), while Version B is modified in some respect (treatment). For instance, on an e-commerce website the purchase funnel is typically a good candidate for A/B testing, as even marginal improvements in drop-off rates can represent a significant gain in sales. Significant improvements can sometimes be seen through testing elements like copy text, layouts, images and colors,[1] but not always.

First up is the introductory article:

https://econsultancy.com/blog/65672-using-data-science-with-a-b-tests-sample-sizing

Secondly is Chi-Squared testing:

https://econsultancy.com/blog/65711-using-data-science-with-a-b-tests-chi-squared-testing

The third and final wraps up the set:

https://econsultancy.com/blog/65755-using-data-science-with-a-b-tests-bayesian-analysis

Very good reading over all, especially if your understanding of statistics could be improved.

Happy Reading

J.W. Gant

Domino's Wearable Devices Capability

This is the first news report I can recall of a major retailer using a wearable device as part of its services offering.  I expect this will be merely the beginning.

http://www.mobilecommercedaily.com/dominos-serves-up-easy-order-tracking-with-wearables-integration

Here is a snippet from that piece:

Domino’s is allowing customers to easily track orders from the time they are taken to the point of delivery by integrating its Domino’s Tracker application with the Pebble smartwatch.

While the Domino’s Tracker was initially introduced seven years ago, this marks the first time that it is available on any smartwatch device. Customers can receive alerts when their pizza is baking, out for delivery with a driver and being delivered to their homes.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0169 Beacon Implementation Potholes

Advertising Age has an excellent read on Beacons/iBeacons and this author's expectation of failure by a majority of merchants.

http://adage.com/article/digitalnext/beacon-programs-fail/295843/

Here is a snippet from that piece:

Businesses of all kinds -- from worldwide department stores to neighborhood shopping districts, international airports to baseball fields -- are adopting beacons at a pretty incredible pace. From all-door rollouts to smaller test pilots, companies are very bullish on beacons. As they should be. The devices offer a way to connect with consumers unlike ever before in-store, when it's relevant to their immediate location. To personally welcome individuals as they arrive. To disseminate important or motivating content. To gather unique insights into on-premise customer behavior. And the beacons themselves are available at such a low cost that adding multiple devices to hundreds of stores is not out of the question.

But, as with most shiny objects, beacons will be abused. In fact, I predict that three out of every four beacon programs will fail in 2015.

We are seeing a lot of experimentation with this new tool.  I'm certain we'll see a lot of failures and that is a good thing.  Try, fail, and try again.  Sounds like a recipe for eventual differentiation.  The laggards will take years to catch up once the leaders figure this out.

Happy Reading,

J.W. Gant

Macy's and Target Omnichannel in the News

Two days in a row for Macy's.  Then again, they displaying a ton of activity over there in this space.

The CFO at Macy's made news by stating their recent efforts in omnichannel provide a differentiating capability for the retailer:

http://multichannelmerchant.com/news/macys-sees-omnichannel-day-offerings-competitive-advantage-13112014/

Here is a snippet from that piece:

In its third quarter earnings call this week, Macy’s Chief Financial Officer Karen Hoguet told analysts the company’s retail network gives it an advantage in the ever-more-crowded same-day delivery sweepstakes, as well as in omnichannel fulfillment.

“I think our store footprint gives us a huge advantage, given where the Macy stores are located and the technology that we have built and have in place to utilize our stores to fulfill internet orders,” Hoguet said on the call.

Target has made another acquisition and this one points directly to an in-store personalization strategy by Target.

http://www.mobilecommercedaily.com/target-ramps-up-in-store-personalization-on-mobile

Here is a snippet from that piece:

In a reflection of the growing importance of mobile-powered in-store shopping experiences, Target has acquired Powered Analytics, a startup that focuses on personalizing in-store shopping through mobile technology, location data and predictive analytics.

The Pittsburgh, PA-based Powered Analytics offers a platform called Fabric that promises to bring an Amazon-like shopping experience into physical stores.

Happy Reading,

J.W. Gant

Macy's and Kohl's OmniChannel in the News

Two brief stories on Retail Information Systems caught my eye.

First is news of Macy's working with Google for direct product results through Google Search.

http://risnews.edgl.com/retail-news/Macy-s-Launches-Google-Product-Search96371

Here is a snippet from that piece:

Beginning this month, Macy's shoppers can now Google search for an item on their phone and see what's in-stock at the closest Macy's location. The search will provide a product image with details such as color, size, price, store location information, and directions to the store and a link to the item on Macy's website. The platform works with Google's proximity marketing platform in an effort to drive sales in stores and online during the biggest shopping season of the year.

Next is news from Kohl's on how they are opening their supply chain for omnichannel needs:

http://risnews.edgl.com/retail-news/Kohl-s-Overhauls-Merchandising,-Inventory-and-Pricing-Systems96482

Here is a snippet from that piece:

Kohl’s is transforming many of its core retail operations to accommodate recent growth and ensure that both its store and online shopping experiences reflect the unique preferences of consumers, no matter where they live and shop.

Kohl’s has recently overhauled its core merchandising, inventory, and pricing operations with the launch of a new Oracle Retail Merchandise Operations Management solution, allowing the retailer to coordinate a unified system of record for inventory to better serve customers across channels, and to simplify its business user experience.

Happy Reading,

J.W. Gant

Beacons and the Growing Mobile Gap

Several articles stood out to me today, all in the same vein.

First is a concept the author refers to as "post-beaconing" or using data from beacons to provide personalized interactions at a differed date/time.

http://www.mediapost.com/publications/article/237959/post-beaconing-begins-location-info-captured-now.html?edition=77785

Next is another retailer using iBeacons this season:

http://www.mobilecommercedaily.com/new-seasons-market-leverages-ibeacons-enhanced-payments-for-customized-consumer-experience

eConsultancy is out with a paper about the single customer view and the feasibility of this approach:

https://econsultancy.com/blog/65746-the-single-customer-view-is-it-really-achievable

Finally is a brief write-up of a couple new Forrester research papers:

http://www.mobilemarketer.com/cms/news/research/19139.html

Here is a snippet from that piece:

“I think most brands agreed in 2014 that mobile is strategic but when it comes to integrating mobility into their marketing strategy, few are really measuring all the business implications,” said Thomas Husson, Paris-based vice president and principal analyst of the marketing and strategy client group at Forrester as well as one of authors of the reports.

“In 2015, we expect the gap to increase between brands who will see mobile as just another channel and the leaders who will invest in re-engineering their business to deliver mobile moments,” he said.

Happy Reading,

J.W. Gant

Apple, Apple, Beacons, and Money2020

A few stories grabbed me today so I'll post a bunch of them.

First is Karen Webster who is finally letting the world know that Apple needs merchants in its camp for Apple Pay to work:

http://www.pymnts.com/news/2014/why-apple-pay-needs-merchants-more-than-it-needs-consumers/#.VGDMWTTF_9Y

Next is a good little story that speaks to the pending power of wearable devices such as the Apple Watch for marketing purposes:

http://www.mobilecommercedaily.com/apple-watch-set-to-become-gatekeeper-to-the-iphone

This story speaks to the power of BLE beacon technology and the expectation these will provide a differentiating capability for merchants that have implemented these in time for this year's holidays.

http://www.mobilemarketer.com/cms/news/software-technology/19114.html

Next is a piece on a little Q&A between Mike Cook of Walmart and Jim McCarthy of VISA:

http://recode.net/2014/11/09/this-verbal-confrontation-shows-why-walmart-will-never-accept-apple-pay-video/

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0168 Smart Devices Altering the Competitive Landscape

When Michael Porter writes on strategy & competition you should read it.

HBR, the Harvard Business Review, has a great little piece on their new website co-authored by Porter and James Heppelmann.

https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

Here is a snippet from that piece:

Information technology is revolutionizing products. Once composed solely of mechanical and electrical parts, products have become complex systems that combine hardware, sensors, data storage, microprocessors, software, and connectivity in myriad ways. These “smart, connected products”—made possible by vast improvements in processing power and device miniaturization and by the network benefits of ubiquitous wireless connectivity—have unleashed a new era of competition.

Smart, connected products offer exponentially expanding opportunities for new functionality, far greater reliability, much higher product utilization, and capabilities that cut across and transcend traditional product boundaries. The changing nature of products is also disrupting value chains, forcing companies to rethink and retool nearly everything they do internally.

You may need to create a login with HBR to read the entire piece.  It is well worth it to do so.  That site has excellent content frequently refreshed.

The internet of things is happening right now.  Here is a great little device I found through BusinessWeek.  A unit you plug in to your wall in your home that is connected to the internet and calls your smartphone if it hears your fire alarms go off.

http://www.businessweek.com/articles/2014-10-21/leeo-a-nightlight-that-will-call-you-when-your-house-is-on-fire#r=tec-ls

Excellent.  What else is coming?  I just had a conversation with a VP of Sales who had just left a company developing a smart rifle.  Yeap.  The list is endless.

Happy Reading,

J.W. Gant

Mobile Payments News

Several stories worth taking a look at today.

First, this writer captured his experiences using Apple Pay at Walgreens.  He was required to sign for the payment even after providing biometric proof through Touch ID.  Why?  The transaction was greater than $50.  We still have a ways to go folks.  Here is that story:

http://www.pymnts.com/news/2014/why-did-you-do-this-walgreens/#.VFzDtzTF_9Z

Next is a piece on Starbucks currently holding 90% of all mobile payments in the United States:

http://www.paymentssource.com/news/emerging-payments/starbucks-had-90-of-us-mobile-pay-share-is-just-getting-started-3019582-1.html

Here is a snippet from that piece:

Starbucks Corp., which now handles 16% of its U.S. sales through its mobile app, revealed today just how dominant its position has become even as it plots new features such as preordering.

In 2013, $1.3 billion in payments were made over mobile devices throughout the U.S., and over 90% of those purchases took place in Starbucks stores, said Howard Schultz, the Seattle company's chief executive, in an Oct. 31 conference call to discuss the company's fourth-quarter and full-year earnings (its fiscal year ended Sept. 28).

Today, Starbucks handles nearly seven million mobile payments per week. "No company and no retail store, domestically or internationally, even comes close," Schultz said. "The real growth is yet to come."

Finally

http://www.internetretailer.com/2014/11/06/apple-pay-puts-mobile-payments-firmly-retail-agenda

Here is a snippet from that piece:

At the Money 20/20 conference this week, speakers, exhibitors and attendees agreed: Thanks to Apple, retailers and financial institutions have to think seriously about mobile payments. The next step is to give consumers a reason to change the way they pay.

...

"Apple Pay eliminates any excuse among all players in the mobile payments ecosystem to jump in," Johnson [from Softcard] says. "But payments are just table stakes. We'll be spending 2015 building out loyalty, special offers and other mobile wallet components."

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0167 MCX CEO Speaks about CurrentC at Money20/20 and Beyond

Money 20/20 is the fairly new but rapidly growing trade show that involves all things related to money including mobile payments and much more.  This year's event just wrapped up in Las Vegas, NV.

Dekkers Davidson, the CEO of the Merchant Customer Exchange (MCX) spoke about the CurrentC product and its value proposition for consumers.

Interviews were performed.  The Verge handled one of those.  Here is the story on that site:

http://www.theverge.com/2014/11/5/7163147/mcx-currentc-ceo-interview-apple-pay

Be sure to read the entire interview there.  Here is a snippet from that piece:

“When you go to the gas station today, you’ll often see a credit price and a cash price. And the difference can sometimes be 10, 20 cents a gallon depending on where the price of gasoline is pegged. If you want to go pay for gas, you have to get out, walk into a store, either make the cash payment, or say ‘I’m going to fill it up’ and walk back in,” MCX CEO Dekkers Davidson said in an interview with The Verge. “So here’s a world that is possible. You can drive up to the pump and, using low energy Bluetooth, the pump can actually recognize that it’s Ben who’s pulled up. If you are on the CurrentC network, and you have pre-authorized a certain payment method, the merchant then has the opportunity to adjust and roll back the price at the pump to either a cash price, or something that’s much lower than you’d pay with the current credit network.”

A mobile payment price that is the same as the cash price? If it can be delivered, that is finally a concrete advantage over Apple Pay.

That is a pretty good value proposition and a differentiating factor over other products in this space. Sounds like there may be a bit under the hood that we haven't seen from CurrentC until now and possibly more to come.  What will the next year bring?

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0166 Future for Supermarkets

Great little entry on SupermarketNews.com:

http://supermarketnews.com/blog/supermarkets-are-dead-long-live-supermarkets

Here is a snippet from that piece:

The old British phrase after a monarch dies is, “The King is Dead, Long Live the King.” It’s meant to emphasize continuity.

The same can be said here. Old supermarket operating models (and some operators) may die, but the best players are already embracing new directions that will evolve and sustain supermarkets as a retail segment.

I completely agree with his assessment.  The changing landscape will force change on the part of the retailer and will not be friendly to those who refuse it, but the future looks bright for those willing to tackle the challenges of today.

Happy Reading,

J.W. Gant

Apple Pay vs. CurrentC

The news the last week or so has been pretty heavy on Apple Pay vs. CurrentC.  The media loves a good fight but why can't they live together?  Maybe not in the short term, but over a long enough timeline won't we see a number of ways to pay with your mobile device?  Don't we already have many ways to pay with our mobile device between LevelUp, PayPal, Starbucks, Dunkin Donuts, Apple Pay, Google Wallet, and CurrentC?

Some are already declaring winners and losers.  Who are they and what are they saying?

Here is Time.com with winners and losers:

http://time.com/3532199/apple-pay-winners-losers/

Here is a snippet from that piece:

But there’s another reason credit card companies are enthusiastic about Apple Pay: the alternative, CurrentC, could be pretty scary.CurrentC is a payment system mega retailers like Walmart and Best Buy are working on that could cut out credit card companies altogether. While Apple Pay leaves the traditional credit card system intact by simply moving it to your phone, analysts speculate that the CurrentC program will link payments through a network connected directly to your savings account. Voila: no middleman.

“If a technology comes along that’s focused on getting you to not use Visa, then that’s a competitor to us,” says Dill. The threat of CurrentC makes Apple Pay look more like a rickety lifeboat for the credit card companies than the super-fast motorboat Apple has promised.

Here is Karen Webster declaring CurrentC dead before it has even fully launched:

http://www.pymnts.com/news/2014/current-c-and-the-big-merchant-mess/#.VFpQADTF_9Y

Here is a snippet from that piece:

So, how does CurrentC to get out of this mess?

Well, I don’t think they do.

I believe that this is the beginning of a huge reboot at CurrentC and quite possibly its complete unraveling.

Karen comes across as at least a little naive in that piece.  Really, the merchants should yield all control of their interactions with the consumer?  Sounds like a recipe to go out of business to me.

At least one person is picking Google Wallet to win over Apple Pay, yes Google:

http://www.pymnts.com/in-depth/2014/peter-thiel-picks-google-over-apple-pay/#.VFo4MzTF_9Z

That isn't unreasonable thinking.  We've already seen payments via Google Wallet bump following the NFC news of Apple Pay.

The big-box retailer Target is in the news as an early supporter of CurrentC, running transactions now in Minnesota according to this piece:

http://www.startribune.com/business/281395391.html

Why are some merchants saying "No" to Apple Pay?  Here is a story on that:

http://blogs.wsj.com/totalreturn/2014/11/04/why-some-merchants-say-no-to-apple-pay/

Here is a snippet from that piece:

Industry observers say the reluctance of some merchants to embrace Apple Pay all comes down to one thing: fees. And consumers are likely to remain caught in the midst of this tug-of-war between credit-card networks and merchants for some time.

Here is a piece on Re/Code that quotes the CEO of MCX a bit:

http://recode.net/2014/11/04/what-are-the-anti-apple-pay-merchants-afraid-of/

Burger King is going with PayPal for their mobile payment option:

http://www.mobilecommercedaily.com/burger-king-chooses-paypal-in-a-refutation-of-apple-pay

Want to understand a bit of the deal Apple Pay made?

http://www.pymnts.com/news/2014/inside-the-apple-pay-issuer-contracts/#.VFohWjTF_9Y

What about Starbucks?  Isn't this the most successful mobile payments mechanism in history, as opposed to Tim Cook's statement about Apple Pay?  Yes it is.

http://www.nbcnews.com/tech/gadgets/forget-apple-pay-master-mobile-payments-may-be-starbucks-n240091

Does this look like space likely to see some consolidation in the coming year or two?  Maybe.  However, it also looks like a space where more than one winner is going to come out on top.  Which ones will those be?

Happy Reading,

J.W. Gant

**UPDATE**  Just a bit more as this one lays out the story of the relationship Apple has forced on the banks and the issuers:
http://digitaltransactions.net/news/story/Issuers_-Apple-Pay-Pact-Assigns-Remarkable-Authority-to-Card-Networks-As-Well-As-Apple

**UPDATE #2** The CEO of MCX, Dekkers Davidson, is at Money2020 and had some comments:
http://www.digitaltransactions.net/news/story/MCX-Chief-Davidson-Strikes-Defiant-Tone-While-Touting-Benefits-of-CurrentC_s-Wallet

Here is a snippet from that piece:

...Davidson attributed much of the negative publicity about CurrentC to the efforts by the 80 merchants that control MCX to “challenge” a payments business that has largely left merchants on the sidelines. “Some have mocked us or laughed at us, some are attacking us,” he said. “That’s to be expected when you challenge the status quo.” Later in his remarks, he returned to this theme, saying, “If you’re going to change the status quo, you’ve got to challenge the status quo.”

The little engine that could?

Genius or Crazy? Maybe Both.

I like this little article in the psychology realm about geniuses and madmen:

http://nautil.us/issue/18/genius/if-you-think-youre-a-genius-youre-crazy

This story was pointed out to me over on Big Think:

http://bigthink.com/ideafeed/well-roundedness-keep-geniuses-from-becoming-madmen

Here is a snippet from that piece:

What geniuses and madmen have in common is called cognitive disinhibition: an acute awareness of their surroundings combined with the will to examine what they observe in fine detail. Alexander Fleming, who won the Nobel Prize for discovering penicillin, happened on the beneficial mold from which the medicine is derived entirely by accident.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0165 Google's Views on Omnichannel

Google Research is out with a couple pretty good pieces: an article and an infographic.

The research article can be found here:

https://www.thinkwithgoogle.com/articles/3-new-realities-of-local-retail.html

Here is a snippet from that piece:

The relationship between digital and local stores is changing—something we learned from our new Digital Impact on In-Store Shopping study, commissioned from Ipsos MediaCT and Sterling Brands. From it, we identified three new realities of retail: digital drives in-store traffic; smartphones are in-store shopping assistants and varied shopping habits call for a holistic approach to measuring retail success. Savvy retailers are learning how to reach customers by better connecting the online to the offline and by caring less about where a sale happens and more about how to help shoppers convert. Some brands, such as Macy's, REI and Sephora, are already doing so. Find out how.

The infographic can be found in this article:

https://www.thinkwithgoogle.com/articles/how-digital-connects-shoppers-to-local-stores.html

I see nothing ground breaking here as the summary states what we've mostly come to believe in retail the last couple of years.  The rules have changed and the traditional brick & mortar retailer must change with the changing times.

Happy Reading,

J.W. Gant

PS  For another real-world example of this thinking in action look to Starbucks:
http://www.mobilecommercedaily.com/how-starbucks-is-leveraging-mobile-to-drive-holiday-foot-traffic

Best Reading of the Day - Entry 0164 Starbucks and Mobile Payments

With all of the news hitting over the last two months about mobile payments, the mobile wallet, CurrentC, and Apple Pay, one very sharp executive I know asked a pointed question:

"Why isn't anyone talking about Starbucks?"

Really good question.  Finally, someone has picked up on this question.

http://www.nbcnews.com/tech/gadgets/forget-apple-pay-master-mobile-payments-may-be-starbucks-n240091

Here is a snippet from that piece:

Days after Apple Pay’s debut at checkout counters across the US, Apple CEO Tim Cook bragged it was already more successful than all other mobile payment services combined. Maybe he meant services offered by companies strictly in the mobile payments business. But it’s hard to believe he could have meant Starbucks.

When it announced its quarterly earnings recently, the latte-slinging giant said that 16 percent of US transactions took place via a mobile device—about 7 million mobile payments per week. Compare that figure to Cook’s boast that Apple Pay saw 1 million credit cards registered in the first three days after launch. That’s an impressive number, but to match Starbucks’ total, every single one of those cards would have to be tapped to buy a cup of coffee every single day of the week.

Huge success at Starbucks.  I use their app all the time and so should you.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0163 Payments Evolution

ArsTechnica has a very solid read today titled:

From “cash only” to NFC-ready, how we buy determines what we buy
Here is the article:

http://arstechnica.com/business/2014/11/from-cash-only-to-nfc-ready-how-we-buy-determines-what-we-buy/

Here is a snippet from that piece:

... I went on a much-needed jog, the kind that lasted long enough to work up an appetite. I was close to finishing, and all I had on me were my phone and a pair of headphones—yet I knew I’d be returning to a house sorely lacking in food. Suddenly, there was that McDonald's. I had a hunch that a giant restaurant chain might be the perfect place to find an NFC-compatible payment kiosk, so I made the one-block-away pit stop. A crowd of teens watched as I tapped my phone on the McDonald’s register and paid $1.63 for a chicken sandwich.

The mobile wallet is coming closer and closer to reality.  I use the Starbucks app and the Dunkin app, and have CurrentC loaded on my phone.

The other day I did a mobile-only trip, with the exception of my driver's license.  Placed an order at Five Guys using the app and paying through the app.  Popped in to Dunkin Donuts as well to get a caffeine fix and used the app.  Never touched my wallet.  I had driven, though, so my driver's license was in my wallet in my back pocket.

Getting closer.

Happy Reading,

J.W. Gant

CurrentC by MCX - The MCX Viewpoint

As everyone knows the internet is not the best place to go to find real-time fact checking.  Anything but.  Some examples of this are coming out now as the news surrounding CurrentC has been given some press.  I've posted extensively on Apple and their recent announcements.  Time for a bit more from some other quite interesting offerings.

Some of the blogger entries from websites I enjoy and find valuable have been wildly eccentric in their opinions.

Time for a bit more facts than opinion.

What is MCX?  Here is the company website:

http://mcx.com/

What is CurrentC?

http://currentc.com/

Want some facts from MCX regarding the recent speculations making the news (you'll find plenty of opinion online, how about some facts)?  Here are the blog entries by the CEO, Dekkers Davidson and others:

http://www.mcx.com/blog/

Interesting times we live in if you love technology, mobile, and retail.

Happy Halloween!

J.W. Gant

CurrentC by MCX in the News

Want to see a slew of stories on the primary Apple Pay competitor, CurrentC?

Just Google it.

Here is the best one, with the best facts (and only the facts):

http://www.pymnts.com/news/2014/what-currentc-didnt-say/#.VFKYeyLF_9Y

Here is the summary from that story:

According to it’s CEO, [Dekkers Davidson], CurrentC is a healthy and robust platform that will launch at some point in early 2015 and have “many fabulous features,” that may or may not include loyalty programs and may or may not allow users to use credit cards in the future.

CurrentC will be offered at retailers through out the country who may or may not also be offering Apple Pay, because they may or may not be allowed to do so under the terms of their agreement with MCX. However, if any of those merchants offer Apple Pay, they won’t be subject to penalties.

MCX houses its data in a totally secure cloud based platform that has been under siege from cyberthieves for the last seven days. That system may or may not be similar to Apple’s in some way, and it is being tested by an unknown number of consumers and retailers at various undisclosed locations nationwide, where it may or may not be going well.

For more specifics, stay tuned to sometime in early 2015, when CurrentC goes live. Or not.

Interesting times we are living in.

Happy Reading,

J.W. Gant

Ron Johnson Launches New Retail Company

When the previous head of Apple's retail stores makes a move it is worth taking a look at.

While the Apple formula doesn't appear to have worked at JC Penney, what could be done from a completely blank slate?  We'll get to find out in 2015.

http://www.chainstoreage.com/article/ron-johnson-launching-start-helps-online-shoppers-choose-products

Here is a snippet from that piece:

The cat is finally out of the bag. Former J.C. Penney CEO and Apple retail head Ron Johnson confirmed that he is launching a new company—but it’s not a tech-gadget delivery service as was widely rumored. Instead, the new initiative, set to launch in 2015, is designed to help online hoppers make the right product choices.

Johnson told the Wall Street Journal his new start-up, called Enjoy, is a service that will change the way consumers buy "things that matter," and enable shoppers who start their shopping on the Web to connect with a product before making a decision.

I'll be following Enjoy Technology to see what comes.  Would be fun to peak in to the making of this new endeavor.

To visit the company's website click here:

http://www.enjoytech.com/

Happy Reading,

J.W. Gant

Retailers Turning Off Apple Pay

The biggest news in payments over the past week hasn't been Apple Pay, but rather the retailers that first accepted but no longer accept Apple Pay.

CVS and Rite Aid are in the news for this:

http://www.usatoday.com/story/money/business/2014/10/26/cvs-follows-rite-aid-shuts-off-apple-pay/17959213/

The various takes on the story are a story unto itself.  Balanced news can be found here:

http://www.businessweek.com/articles/2014-10-27/why-rite-aid-and-cvs-stopped-taking-apple-pay

Here is a snippet from that piece:

That’s not the whole story. Objections to Apple Pay aren’t actually about convenience, reliability, or security—they are about a burgeoning war between a consortium of merchants, led by Walmart (WMT), and the credit card companies. Rite Aid, CVS, Walmart, Best Buy (BBY), and about 50 other retailers have been working on their own mobile payments system, called CurrentC. Unlike Apple Pay, which works in conjunction with Visa (V), MasterCard (MA), and American Express(AXP), CurrentC cuts out the credit card networks altogether. The benefit to the merchants is clear: They would save the swipe fees they now pay to the credit card companies, which average about 2 percent of the cost of transactions.

Unbalanced news can be found here on Gizmodo:

http://gizmodo.com/how-corporate-greed-is-trying-to-kill-apple-pay-1651233601

Here is a snippet from that piece:

When Apple Pay launched last week, it was a huge step towards the pay-with-your-phone future that's been in the works for years. But a few big retailers like Walmart, Best Buy, and CVS want to blow the whole thing up and replace it with something shittier, because they don't care about you at all.

Here is Karen Webster's take:

http://www.pymnts.com/news/2014/the-real-reason-rite-aid-dumped-apple-pay/#.VE6XyCLF_9Y

Here is a snippet from her piece:

Last week, it was announced that Rite Aid abruptly deactivated its terminals and would no longer be able to accept Apple Pay. There was speculation swirling that it was because of concerns over security or data privacy, both totally ludicrous claims/spin given Apple’s highly secure payments scheme and total inability to see transaction or cardholder data. Say what you will about Apple Pay and its chances of success, but it is a highly innovative and secure method of payment using the mobile device.

...

But I also offer that horror movie playing between Treasury/Marketing folks at every CurrentC/MCX merchant could get pretty gruesome. And, I think that this could even foreshadow the second big post Apple Pay shift in payments – the unraveling of CurrentC.

For my part I was at Walgreen's over the weekend to pick up a prescription for my daughter.  The payment terminal was advertising Apple Pay.  Right above that was a placard on the wall that read "Please Turn Off Cell Phone".  Well, we have a ways to go yet.

Quite a lot of news this past week huh?

TechCrunch has some inside views of the CurrentC app.  Wow.  How did they get their hands on this stuff?

http://techcrunch.com/2014/10/25/currentc/

Happy Reading,

J.W. Gant

Apple Pay Has Launched

October 20 was the word on the street.

Apple Pay will launch October 20.

Okay.

October 20 rolled around and I started fiddling with my very new iPhone 6 to see if I could figure this out.  Passbook?  Nope.  Update?  None available.  I was on 8.0.2 and Apple told me there were no updates available.  Okay what?  October 20 right?

Time to Google.

Eventually I found news that Apple Pay would come with the 8.1 iOS update due to hit October 20.  As I was travelling I had to wait a bit before I could perform the update.  Here is what other people were saying in the meantime:

Apple Pay Works, But It Can’t Speed up Lines of Non-Users
http://www.digitaltransactions.net/news/story/Apple-Pay-Works_-But-It-Can_t-Speed-up-Lines-of-Non-Users

WHY BANKS LOVE APPLE PAY

http://www.pymnts.com/news/2014/why-banks-love-apple-pay/#.VEe9RyLF_9Y

That headline shouldn't be encouraging to merchants.  

Moving on, here is the New York Times and others:

Apple Pay: Seamless in Stores, but Quirky Online

http://www.nytimes.com/2014/10/22/technology/personaltech/shopping-with-apple-pay-seamless-in-stores-but-quirky-online.html?_r=0

Some Banks See Apple Pay as a Threat

http://www.paymentssource.com/news/emerging-payments/some-banks-see-apple-pay-as-a-threat-3019482-1.html

So, wait, what?  Banks love Apple Pay.  Banks Hate Apple Pay.  Huh?

Google may have to make a move:

Google plans to ride Apple Pay popularity to cash in with Google Wallet

http://www.mobilepaymentsinsider.com/2014/10/22/google-plans-to-ride-apple-pay-popularity-to-cash-in-with-google-wallet/

So how did it go with me?

Tuesday night I went through my usual careful backup routine with my iPhone before updating to iOS 8.1.  There within Passbook was a '+' sign and simple instructions to add a card to Apple Pay.  My Capital One card is now available for use with Apple Pay and ... I have nowhere I shop to use it.  Walgreens?  Nope.  Whole Foods?  Sometimes maybe.  Panera?  I eat at my desk every day.  I may shop at Macy's over the holidays.  

What about my bank debit card?  Tried to add my Santander card and Apple Pay told me this issuer does not currently support Apple Pay.  500 banks on-board with Apple Pay and I can't add my debit card.  

Maybe some day I'll try Apple Pay.  Meanwhile on my trip I stopped at Starbucks two or three times and paid with my Starbucks app earning a gold star each time.  I'll swing in to Dunkin Donuts shortly to try out those Pumpkin Donuts again this year. Probably buy some for the office.  Yeap, I'll pay with my Dunkin App so I get the DD Perks.

How about you?

Happy Reading,

J.W. Gant

**UPDATE**  Two quick updates.  First is this excellent piece from Re/Code:
http://recode.net/2014/10/24/apple-pay-review-the-recode-bi-coastal-team-test/

Next is news of Rite Aid first allowing, then turning off Apple Pay:
http://www.digitaltransactions.net/news/story/Would-Be-Apple-Pay-Users-Disappointed-When-Rite-Aid-Apparently-Turns-Off-NFC

**UPDATE #2**  I missed this excellent article on Time and feel it is worth checking out:
http://time.com/3532199/apple-pay-winners-losers/

Extraordinary Experiences Isolate You Socially

I find this bit of research to be extraordinarily interesting.

Here is a bit from the write-up on Big Think:

Having a much more interesting time with life than your peers is a recipe for social isolation, according to their report published in Psychological Science. In an experiment which supported the group's conclusion, individuals given a very interesting video to watch later felt excluded when the majority of the group had watched a far more boring video. Contrary to what the people who watched the interesting video expected, conversation seems to thrive on the mundane.

Here is the full piece:

http://bigthink.com/ideafeed/extraordinary-experiences-are-socially-isolating-so-next-time-take-a-friend

I want to focus on that one quote just one more time:

...conversation seems to thrive on the mundane.

Very interesting.

Do you see this in your every day life?  Maybe you are having an interesting life and most of the people around you are merely more interested in last night's 'American Idol'.  How dare you take The Road Not Taken.  Though, don't look in to the real meaning of that poem or you'll find even more interesting thoughts to ponder.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0163 7-Eleven and Beacons

This isn't a move I can claim to understand.

7-Eleven, the company famous for the Big Gulp, wants runners to be pulled in to their stores by the use of beacon interaction with their mobile devices.

Huh?

Here is the story:

http://www.mobilecommercedaily.com/7-eleven-uses-beacons-in-singapore-to-chase-runners-into-stores

Here is a snippet from that piece:

Convenience store retailer 7-Eleven is working with Japanese soft drink manufacturer Pocari Sweat on a beacon campaign in Singapore that tracks runners’ progress and offers rewards when they pass one of the chain’s locations.

The retailer’s efforts are due to a desire to promote healthy lifestyles and maintain a presence in the mobile fitness space, given the prevalence of consumers using their mobile phones to track their running. The technology works through a free mobile application available on iOS and Android devices.

Now, I have a 7-Eleven just a few blocks from my home and adjacent to one of my favorite local pizza places (Pizza Express in Wakefield, MA) so I go in there frequently (a long way from Singapore).  I've seen the increase in healthier options right next to the huge burritos and the slurpy machine.  So, maybe this isn't a crazy move all together.  However, I can't help but feel this company is reaching for customers it has no business laying a claim to.

Happy Reading,

J.W. Gant

Cable TV Transformed

Huge news has been hitting the last two days.  After years of denying interest, and in spite of a phenomenally successful video streaming app called 'Go', HBO is now making the move to directly compete with Netflix:

http://recode.net/2014/10/15/hbo-says-its-going-to-start-selling-on-the-web-next-year/

Here is a snippet from that piece:

HBO CEO Richard Plepler, speaking at an investor presentation hosted by HBO parent company Time Warner, said the company will start selling in 2015 a digital version of its service that won’t require a pay-TV subscription.

Plepler said the company will go “beyond the wall” and launch a “stand-alone, over the top” version of HBO in the U.S. next year, and would work with “current partners,” and may work with others as well. But he wouldn’t provide any other detail.

CBS is following suit in a fascinating move:

http://recode.net/2014/10/16/now-cbs-is-selling-web-subscriptions-to-its-shows-too/

Here is a snippet from that piece:

Yup, CBS: The broadcaster is also getting into the digital video subscription business, with an offering that will let users watch almost any show it airs, live or on demand, on a variety of devices.

And like the HBO plan, this one doesn’t require users to have a traditional pay-TV subscription: All you need is an Internet connection and $6 a month.

But there are several big differences between CBS’s Web video service and the one HBO talked about yesterday.

For starters, CBS is selling access to shows that are technically available for free to anyone with a broadcast antenna. And unlike HBO’s service, this one isn’t theoretical: CBS is selling “CBS All Access” right now, via its CBS.com site and its mobile apps.

Needless to say Netflix shares tumbled in trading as it failed to hit its public mark for new user adoption.

I cut the cord from cable TV last year and haven't looked back thank you very much.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0162 Department Store Reinvented

Excellent article if you have any interest in retail:

http://www.businessoffashion.com/2014/10/reinventing-department-store.html

Here is a snippet from the piece:

“At the beginning, department stores were monsters, anchoring the city centre, with an enormous collection of product coming from all over the world,” said retail veteran Vittorio Radice, the former head of London’s Selfridges and currently chief executive of La Rinascente, the Italian department store owned by Thailand’s Central Group. “They were the souk of the 19th century. You went to those stores not only to buy but basically to spend time, to browse. It was the flâneur going in and spending time admiring beautiful goods that they had heard about.”

But, today, department stores have lost some of their lustre, along with a significant share of total retail sales. The shift began in the 1960s and 1970s, as product categories that were better served by specialty chains and discounters — such as books, music, electronics and furniture — began a mass exodus from department stores and, later, became top sellers for e-commerce giants like Amazon.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0161 Cameras and the iPhone

How much do you know about photography?  How much do you think you know about photography?

Think again.

Unless you are a pro this article will not only sharpen your understanding of photography, and what makes great photographs great, but will also help you see the strengths and the limitations of the camera in our smartphones.

http://arstechnica.com/gadgets/2014/10/smartphone-camera-vs-dslr/

Here is a snippet from the piece:

This is a fair amount of scratch to lay down for a camera, especially when the Internet is full of examples of pro photographers going the opposite direction, ditching bags of expensive gear in favor of smartphone cameras for most applications. The idea here is that the person, not the gear, takes the picture. And there is a (likely apocryphal) story that tells the tale of an encounter between famous novelist Ernest Hemingway and famous photographer Ansel Adams. In the story, Hemingway is purported to have praised Adams’ photographs, saying, "You take the most amazing pictures. What kind of camera do you use?"

Happy Reading,

J.W. Gant

PS  If you take the time to flip through each of the slideshows you'll find extra benefit to reading this article.

Best Reading of the Day - Entry 0160 Whole Foods' Mobile Efforts

At least one executive at Whole Foods has it right regarding mobile.  The article's author writes:

"... the brand’s planned rollout of a new mobile platform [will]... serve as a companion during the in-store experience."

Here is the story:

http://www.mobilecommercedaily.com/whole-foods-upcoming-mobile-platform-to-expand-in-store-experience

Here is a snippet from that piece:

“Lifestyle in terms of the mobile space is really a merit of the lifestyle of the customer with the brand,” Mr. Wilson said. “The mantra I have is mobile is a physical experience.

“The blend of physical and digital has been done to death,” he said. “If there is a digital plus physical 2.0, it’s just physical. Everything physical is inherently supported by digital."

I've been working in this space for a couple of years now, mobile for grocery retail, and can attest to the quality of thinking indicated in these statements.

Happy Reading,

J.W. Gant