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