Target Loses Key Mobile Executive

I find this story interesting for all of the other plot lines it includes rather than for the core piece of news.  If you want to read a bit about corporate bureaucracy and how a start-up style approach can be successful at an established company, read on.  Last I heard the active users of the Cartwheel app numbered in the many millions.  I've met that team and there are great folks working on that app for Target. I've never met Mr. Wizemann personally but the work he did at Target lives on.

Here is the story:

http://www.startribune.com/target-loses-a-key-digital-executive-behind-cartwheel-app/319648541/

Here is a snippet from that piece:

Wizemann came to Target a few years ago from the tech start-up world where he founded ShopIgniter, a social networking-related retail firm that was sold last year. He was initially brought in as a consultant to help salvage Cartwheel when it was still in the project stage.

As internal frustrations mounted that Cartwheel might never see the light of day under Target’s layers of bureaucracy and risk-adverse culture, Wizemann got buy-in from Target’s leaders to run the project more like a start-up. He cut the team working on it from 200 to 50 and pushed the retailer to let the team put it out in a beta form, knowing it wouldn’t be perfect and would need tweaks.

When I read that I see a very good execution plan for any company to get in to mobile.

Happy Reading,

J.W. Gant

Wendy's Tests Mobile Ordering

Quick service restaurants are in a mad rush to differentiate by speeding order and deliver and thereby adding convenience for customers.  Wendy's is reported to be testing a mobile ordering app with bluetooth.

Here is the quick story from the excellent blog MorningNewsBeat:

http://morningnewsbeat.com/News/Detail/47510/2015-07-30/

Here is his take on the story:

KC's View: This sounds suspiciously like the Starbucks mobile app, and I say that as a compliment. I've said here before that I think the Starbucks app, especially as it becomes more robust and allows for remote ordering, is a terrific piece of behavior-altering engineering ... and more companies should be thinking about how to offer something similar.
I wonder what else is cooking out there?

Happy Reading,

J.W. Gant

Hershey's Center Store Kiosk

Center store, literally the center of the supermarket, has seen sales steadily decline over the years as shopping behavior migrates towards fresh and the perimeter of the store.  Company's with processed foods such as Hershey's chocolates have had a negative impact as a result.  They aren't sitting still.

Hershey's has a kiosk to place in the center of the aisle, in the center of the store, that customers must smile in to for a sample product.

Brilliant.

Here is the story:

http://www.wired.com/2015/07/even-tom-brady-smash-phone-itd-make-zero-sense/

Happy Reading,

J.W. Gant

Apple App Store Optimization Changes

ASO or App Store Optimization is a series of steps and processes to enable that help boost an app's ranking in the app store.  Apple plays the game differently from Google so each store requires a different approach, and constant updates to the plan.

Apple has changed their algorithm slightly to de-emphasize long app names and the "keyword stuffing" that causes it.  All in an effort for app companies to get their apps noticed.

Here is the story:

http://mobilemarketingmagazine.com/app-store-ranking-algorithm-keyword-stuffing-ASO

Here is a snippet from the piece:

Apple has tweaked the algorithm used to decide App Store rankings in order to crack down on ‘keyword stuffing’, the practice of using lengthy titles for apps to include as many popular keywords as possible.

It’s a popular ASO practice among app publishers but one that Apple is combating by weighting titles differently in its algorithm.

Happy Reading,

J.W. Gant

BRotD - Entry 0226 Mobile Moments by Google and Forrester

Best Reading of the Day

Google Think is back with another excellent read and analysis.  This time they partnered with Forrester research.

The focus of the research is on the impact of mobile on the consumer.  Here is a link to the story:

https://www.thinkwithgoogle.com/research-studies/mobile-moments-mind-set-new-research-details-benefits-for-brands.html

Here is a snippet from that piece:

Consumers act on needs in micro-moments throughout the day. The question for marketers is: Are you prepared to identify, deliver, and measure these moments? New research commissioned by Google and conducted by Forrester Consulting shows that 98% of companies aren't—and why they should be.

You can download the entire research paper, that contains a one page executive summary, here:

https://storage.googleapis.com/think/docs/forrester-moments-that-matter-research-study.pdf

That number jumps out to me.  98% of companies aren't ready.  That tells me two things: (1) there is time for companies to get on the ball, however, (2) any company that gets their act together here could differentiate itself in a big way and win over customers from companies that haven't yet done so.

Happy Reading,

J.W. Gant

Amazon Order & Collect Grocery Service

News today from Amazon shows the company's continuing efforts to craft a traditional brick & mortar approach to its services.

http://www.bizjournals.com/sanjose/news/2015/07/23/exclusive-amazon-planning-drive-up-grocery-stores.html

Here is a snippet from the piece:

For decades, drive-thrus have served up everything from coffee to prescriptions to dry cleaning — not to mention burgers and fries. Now Amazon.com Inc. wants to add another item to the list: Your groceries.

The e-commerce giant is developing a new drive-up store concept in Silicon Valley that will allow consumers to order grocery items online, then schedule a pickup at a dedicated facility, according to industry sources familiar with Amazon’s plans.

Happy Reading,

J.W. Gant

BRotD - Entry 0225 Analysis of Samsung Pay

Best Reading of the Day

Harvard Business Review has a brief analysis of Samsung Pay, the new mobile payment capability for Samsung devices, that is worth a quick read.

https://hbr.org/2015/07/samsung-pays-older-technology-could-be-an-advantage

Here is a snippet from the piece:

The stakes are high in the mobile wallet market, projected to be over $140 billion by 2019. Most recently, Samsung has announced that it will roll out a payment system called Samsung Pay later this year and has already begun beta-testing it in Korea. Its foray into this industry comes on the heels of product entries by Google and Apple. But Samsung’s new mobile wallet strategy may be a sign that they are finally becoming a true leader and shedding their image as a fast follower. The irony is that they are embracing an older payment technology to pave the way for new growth, new visibility, and new strategic wiggle room.

Happy Reading,

J.W. Gant

Chipotle Says Mobile Payments More Important than Loyalty

This is a pretty strong approach.  Very strong.  Chipotle says a loyalty program won't get the job done for them.  The payment is the key.  They intend to use that action to capture data on the customers and forgo a traditional loyalty approach.

If they get it right they will be blazing a new trail.  If they get it wrong everyone will know and they'll be left behind by all the other fast casuals out there.

Here is the article:

http://www.mobilecommercedaily.com/chipotle-says-mobile-payments-not-loyalty-will-drive-customer-insights

Here is a snippet from that piece:

While a number of food and beverage chains have embraced mobile loyalty, a Chipotle executive said this week that the company will buck the trend and lean on mobile payments – not loyalty – as a way to gather meaningful insights about its customers.

During a conference call with analysts on Tuesday to discuss Chipotle’s second quarter results, the executive responded to a question about the chain’s plans in mobile loyalty by saying that internal research has shown loyalty does not drive frequency. However, not wanting to miss out on an opportunity to learn more about its customers, Chipotle is taking a closer look at how to leverage mobile payments.

Talk about sticking your neck out.  The careers of these executives is on the line.  Will it be goat or hero?

Happy Reading,

J.W. Gant

Starbucks at 20%

Starbucks has just set a new high bar for a mobile payments loyalty program.  20% of their payments are now conducted through their mobile app.

Wow!

Just yesterday people were paying with cash or check.  Today Starbucks has one in five transactions conducted through their mobile app.  They are the leader in the field.

Here is the story:

http://www.paymentssource.com/news/technology/starbucks-hits-a-mobile-milestone-one-in-five-payments-are-mobile-3021929-1.html

Happy Reading,

J.W. Gant

eCommerce by Macy's and Wal-Mart

Two stories show the rapidly heating up environment of eCommerce and how traditional brick & mortar players are moving in to the space. These stories follow the recent news of Jet.com launching publicly and even more news from Alibaba.  Very hot area.

First is news of Macy's expanding its same-day delivery service.

http://www.reuters.com/article/2015/07/22/us-macys-delivery-idUSKCN0PW14U20150722

Here is a snippet from that piece:

Macy's Inc (M.N) is expanding same-day delivery to several new U.S. markets this summer, one of the most aggressive pushes by a brick-and-mortar retailer in an area dominated by e-commerce giant Amazon (AMZN.O), according to a Macy's official.

Macy's, the nation's largest department store chain, already offers same-day delivery services in eight markets. By partnering with Deliv, an Uber-like startup that uses a fleet of contract drivers to pick up online orders from stores and malls, the retailer has found a cost-effective way to expand, said the Macy's official, who spoke on condition of anonymity.

Next is news of Wal-Mart opening a huge fulfillment center for its eCommerce capabilities:

http://supermarketnews.com/online-retail/walmart-opens-new-e-commerce-facility

Here is a snippet from that piece:

Wal-Mart Stores on Wednesday held opening ceremonies for a dedicated e-commerce fulfillment facility in Bethlehem, Pa.

The 1.2-million-square-foot center is part of a “next-generation” network to support Walmart’s rapidly growing e-commerce business. It features state-of-the-art automation and warehousing systems. Combined with another facility nearby, Walmart’s centers are expected to generate nearly 1,000 new jobs over the next few years.

Happy Reading,

J.W. Gant

Starbucks Crafts Deeper Engagement and Loyalty

Two stories about the digital activities of Starbucks are worth your time.  Combined they paint a picture of Starbucks continuing to enhance loyalty and engagement with its most loyal customers.

First up is a new loyalty points capability integrated with Lyft, the Uber ride competitor.  Possibly coming as a part of this, according to the article, is a "lyft" for Starbucks employees who need a ride to work.  Mostly though it allows Lyft users to earn Starbucks loyalty points.

http://www.digitaltrends.com/mobile/starbucks-partners-with-lyft-on-shared-loyalty-program/

Here is a snippet from that piece:

Creating an opportunity for customers to earn points for food and beverages by simply using the Lyft ride service, coffee-giant Starbucks has entered into a multi-year partnership with Uber’s main competitor, Lyft. Using the My Starbucks Rewards program as the core centerpiece of the loyalty program, anyone that takes a Lyft car to a destination can earn those reward points according to the announcement on the Starbucks Newsroom.

Next is news of Starbucks integration with the New York Times, offering articles within the Starbucks app.  I only use the app for mobile payment to the point where I often forget I have a reward.  Efforts such as this one are meant to get people to use the Starbucks app and use it more often.

http://www.mobilecommercedaily.com/starbucks-boosts-mobile-loyalty-program-with-new-york-times-content

Here is a snippet from that piece:

Starbucks is expanding its partnership with The New York Times to bring top daily articles to its mobile application users and reward loyalty members with points when they purchase print and digital subscriptions, reflecting the growing importance of top-notch content for merchants on mobile.

While the beverage giant has previously tapped The New York Times to bring free content to its customers, this marks the first time Starbucks is integrating the partnership with its loyalty program, which currently boasts 10 million members.

Happy Reading,

J.W. Gant

Regional Grocers Continue to add In-Store Pickup

Hy-Vee, based in Des Moines, Iowa, is the latest grocer to respond to the challenge of grocery in-store pickup or delivery.  Walmart is moving forward with plans to expand after a successful test and this may quickly become a table stakes offering for supermarkets.

One VP of Marketing I know stated last year Hy-Vee needs this more than most of the other regional players.  Apparently the executives at Hy-Vee agree on its importance.

Here is the story from MorningNewsBeat:

http://morningnewsbeat.com/News/Detail/47437/2015-07-22/

Here is a snippet from that piece:

KC's View: Hy-Vee has that right. I continue to believe that when Walmart makes the decision to roll out e-grocery nationally, it will do it fast and it will do it decisively ... mostly because it has to. And so it is incumbent on brick-and-mortar retailers to simultaneously do everything they can to differentiate their in-store experiences while also building up their e-commerce credibility. It's that, or risk losing the customer because of real or perceived irrelevance.

Here is his home site:

http://www.morningnewsbeat.com/

Happy Reading,

J.W. Gant

Jet.com eCommerce Startup Launches

Competition for the space Amazon resides in is getting fiercer.  I've been a beta tester of the new eCommerce site Jet.com for a few months now and see a path to its success.  The CEO does as well but it will require $20B in annual sales.

Yes that is a 'B'.

Here is news of the launch:

http://recode.net/2015/07/21/jet-com-will-launch-with-amazon-prices-front-and-center/

Here is a snippet from that piece:

Jet, the new shopping site that launches on Tuesday, promises shoppers “the lowest prices on everything.” To hammer home the point, the online mall will compare its price with Amazon’s price on every one of its product pages.

As a way to prove its marketing promise, Jet tested its service with some customers who were given early access by showing its prices against those found on multiple competing websites. But after some people were confused by the appearance of the various competitors, Jet has decided to show its prices against just one competitor, Amazon, which typically has very low prices.

“So it’ll be very easy for customers to understand that savings means savings compared to Amazon,” Jet CEO Marc Lore said of the changes in an interview on Monday. “They’re clearly the dominant player, so they’re a great reference point.”

Here is a story with the comments by the CEO:

http://www.cnbc.com/2015/07/21/our-prices-are-cheaper-than-amazon-jetcom-ceo.html

Here is a snippet from that piece:

New Jersey-based Jet—which raised $225 million in four rounds of funding, according to CrunchBase—hopes to reach $20 billion in revenue and 15 million users by 2020, a level Lore considers "economically viable."

Happy Reading,

J.W. Gant

Millennials and Mobile Shopping Apps

Forbes.com has a great article out on the mobile shopping app preferences of the Millennial generation, just now coming of age.

Big brands have an advantage with this generation, or those brands that play the digital game like a big brand.  Here is the story:

http://www.forbes.com/sites/kylewong/2015/07/08/what-mobile-shopping-apps-are-most-popular-with-millennials/

Here is a snippet from that piece:

According to a recent Forbes article, mobile shopping app usage is growing faster than any other category of app. But how are millennials responding to the influx of mobile shopping apps? With the help of a few Stanford students, we surveyed over 1,600 millennials on their usage of native mobile apps. Here’s what we learned.

1 in every 2 Millennials has downloaded a mobile shopping app

Out of the survey respondents, 47% claimed to have downloaded a mobile shopping app on their phone. Females were slightly more likely to have downloaded a mobile shopping than males and a majority of those polled were on iOS.

Have a great weekend,

J.W. Gant

Amazon Prime Day a Huge (Pain) Success

The reports throughout were tremendously varying but the end result cannot be denied.  The first ever Amazon Prime Day was a HUGE success.

The concept is simple.  Create a wave of product deals for Amazon Prime members to select from and generate an entirely new sales paradigm while generating increased loyalty.

Success on all fronts in spite of the mixed results on social media.

http://www.businessinsider.com/amazon-prime-day-sales-beat-black-friday-2015-7

Here is a snippet from the piece:

Amazon's 24-hour summer sale for Prime members, called Prime Day, appears to have been a major success for the online retailer.

Product orders exceeded that of last year's Black Friday sale which was open to all Amazon customers (not just Prime members), reports the company.

I've said for years retailers are playing with a nasty fire putting so much on the one holiday season.  They have always wanted to smooth out the sales associated with that.  The worst case scenario is the overall economy tanks just before the holiday season, as happened in 2008, and consumers stay at home during the most critical period.  Too many eggs in one basket.  Looks like Amazon is helping the cause, for them, and creating more loyal Amazon shoppers.

Happy Reading,

J.W. Gant

Beacons Continue to Mature Now With Google

Beacons have had quite a year and now Google is attempting to leapfrog Apple in the arena with a new version of their offering.

http://adage.com/article/digital/google-rolls-version-beacon-technology/299496/

Here is a snippet from that piece:

Google is stepping up efforts against Apple's location technology with new tools to link smartphones to nearby objects.

The search giant on Tuesday introduced a new format called Eddystone that lets electronic beacons provide more specific locations and other information within applications, the company said in a blog post. The tools, which compete with Apple's iBeacon technology, will enable smartphone users at a museum, for example, to get more information on a painting they're looking at or to gain easy access to electronic bus tickets when they're near a bus stop.

"We're beginning to roll out a new set of features to help developers build apps using this technology," Google said in the blog.

Happy Reading,

J.W. Gant

Google Mobilegeddon Impacting Website Search Results

It has been a couple of months now since Google updated its search results and the algorithm behind it to more favorably serve up websites with mobile friendly capability.  The impact is significant to those sites left behind, that are not mobile friendly.

Here is a quick story on the results:

http://mobilemarketingmagazine.com/mobilegeddon-starts-to-bite/

Here is a snippet from the piece:

In April, Google updated its algorithm to give mobile-friendly websites preference in ranking for organic searches. Now, more than two months after the so-called Mobilegeddon, companies that didn’t prepare their sites are paying the price with a 10 per cent decrease in traffic among those sites with low mobile engagement.

Happy Reading,

J.W. Gant

Vermont Vacation Time Off

If you have never spent time vacationing in New England, either along the coast or along some body of water inland, you've been missing out.  Whether it is Kennebunkport, ME or Cape Cod, MA, or any of ten thousand other places you'll be living life the best it can be lived.

This year I'll be taking a week off to be in northern Vermont at a lake-side cabin with my wife, daughter, and dog Buster.  This is similar to the view I expect for all of next week, starting late tomorrow after a road trip.

I won't be posting so enjoy your time off as well and look for me again starting the 13th.

Happy 4th of July to everyone.

J.W. Gant

PS  For a little fun, browse through this guy's photo website.  He does some very cool staged photos where he blends multiple images to create the appearance of extreme action in a still photo.  Excellent!
http://www.ryanschude.com/

BRotD - Entry 0224 Retailers Crushing Pure eCommerce

Best Reading of the Day

This excellent little story over on Mobile Commerce Daily speaks the same language I've been using around here for a year or more.  The internet based companies of the 90's have had their day but retailers, with the help of mobile, are striking back.

http://www.mobilecommercedaily.com/traditional-retailers-crush-ecommerce-giants-in-omnichannel-shopping

Here is a snippet from that piece:

Ecommerce retailers such as Amazon and eBay are doubling down on mobile-driven omnichannel shopping experiences, but struggle to deliver the same level of convenience that traditional retailers can harness and which smartphone-equipped shoppers are demanding.

For years, traditional retailers took a drubbing at the hands of ecommerce pure-plays as online shopping grew, providing efficiencies that helped keep prices low. However, with the growth in mobile, the scales are evening out – and even tipping back in favor of retailers – as shopper interest grows in being able to shop anywhere, anytime, from a device of choice.

...

“Retailers like Best Buy and Walmart are dramatically reducing their shipping costs by shipping orders from stores, while Amazon is seeing shipping expenses double every year,” Razorfish’s Mr. Goldberg said. “Best Buy went from its average delivery being a day slower than Amazon, to a day faster when it begun shipping from stores.

I believe we will continue to see a blurring of the lines between traditional brick & mortar stores and pure eCommerce players.  The amazon companies of the world will open stores and the traditional retailers will create an online presence with shipping. That will be the new paradigm as customers sort out what they prefer to buy in what way, online or in person.

Happy Reading,

J.W. Gant

NIKE eCommerce and Shazam for Retailers

Two stories are worth catching today.

First up is the tremendous success of NIKE's direct to consumer play as their eCommerce sales have topped $1B.

http://risnews.edgl.com/retail-news/NIKE-s-E-Commerce-Surpasses-$1-Billion-100998

Here is a snippet from that piece:

NIKE, Inc.'s e-commerce business is growing, and the company attributes it to being one of the "world's most engaged brands online."

Nike.com delivered 51% revenue growth in Q4 with 55% growth for the full year, seeing increases in both traffic and conversion, fueled by NIKE's investments in critical infrastructure to improve the consumer experience on both desktop and mobile, according to information from the Q4 2015 Earnings Call.

Next is a little story about Shazam looking to provide more value as a service provider for retailers.

http://www.cnbc.com/id/102799879

Here is a snippet from that piece:

Music app Shazam has made it possible to identify songs when you're out by simply having your smartphone "listen" to a song. Now, as the company expands its music discovery technology, it's also considering delving deeper into the world of e-commerce and retail.

"Shazam in retail could help you keep track of the products you care about, compare prices," said Shazam chief product officer Daniel Danker. "There's a million ideas around it. They all build on the magic of Shazam, which is that dead-simple experience of tapping a button and connecting with the world around you."

Happy Reading,

J.W. Gant