Can Only Top-Tier Retailers Compete?

Figuring out the space for retailers that are not a part of the "super tier" as I have dubbed them, those retailers very good at physical retail and ecommerce and mobile and the digital experience, has been a question I've been interested in for some time.

The bankruptcy announcement by Barneys in New York is interesting to me for this analysis speaking to the competitors Barneys was dealing with:

Scale allows these competitors to invest significantly in long term growth initiatives around customer-facing elements like websites and store remodels, and infrastructure like robust supply chains.

Barneys was at about $800 Million while those competitors were at the Billions level.

I think there is a lot of space for B2B companies providing these services the Barneys of the world cannot afford on their own.

Read the whole story here:

https://www.retaildive.com/news/how-barneys-new-york-lost-its-cool/560356/

Happy Reading,

J.W. Gant

Tech to Help Loyalty

I had a number of discussions this last year, sometimes pushing a boulder up hill, trying to help business side digital interests understand what technology could and could not do for them.

The real key to these discussions is value.

If something can move the needle on revenue it will get attention, and some dollars behind it to enable action.

Here is a snippet from a piece that might interest you:

Research published in the Nielsen Global Consumer Loyalty Survey has found that 33% of European consumers (36% in the US) say they love to try new brands, while a further 56% – although more loyal – also admit that they can ‘be moved to experiment.’

This trend for brand-hopping among consumers is a relatively modern phenomenon. 40% say they are more likely to try something new than they were five years ago. Brand loyalists are a shrinking minority and companies are having to double down on enticing exploratory consumers and – crucially – retaining them.

Here is the full article:

https://www.clickz.com/martech-stack-customer-loyalty/252627/

Happy Reading,

J.W. Gant

eCommerce Engines

I've been pretty heavy in eCommerce for a while and have some knowledge of a variety of the systems sold to support those efforts.  This little write-up on the Forrester Wave analysis of those eCommerce engines caught my eye as useful.

Not surprising that Salesforce is at the top (the Demandware platform) along with SAP.

Here is the full article:

https://www.clickz.com/forrester-b2c-commerce-suites-what-made-the-winners-stand-out/247573/

You will have to become a client of Forrester to get their full research.

Happy Reading,

J.W. Gant

Personalization in Marketing

I have seen first hand how merchandisers are so busy they can barely begin to move forward on future-leaning initiatives.

Missing out on personalization is a big miss however and should not be allowed to happen.

Salesforce estimates that adding Einstein personalization to your marketing sorting rules for grid pages, PLPs, will have a positive impact on revenue in the range of 6-9%.  Why leave that money sitting on the table?  Companies such as Certona are thriving on doing the work for you.  Just set up a data feed of your order history and the company will personalize recommendations, resulting in a revenue lift.

Oh, did I mention Amazon is in that game too?  Yeah.  Another threat from Amazon.  Just what you needed right?

Do it.

Here is a story on the subject of how marketers are failing to make this a priority:

https://www.clickz.com/personalization-powerful-priority/243913/

Here is a snippet from the piece:

It’s been a big news week for Amazon. The ecommerce giant’s shares have surpassed those of Walmart. Amazon announced the end of its restaurant delivery service, while launching a credit card an AI-powered recommendation service to improve personalization. Oh, and thanks to a 52% year-over-year increase in brand value, Amazon displaced Apple at the top of WPP and Kantar’s annual ranking of the most valuable brands in the world.

The latter two are certainly related. Available in a handful of regions for now, the recommendation service enables marketers to incorporate product recommendations and tailored search results on websites, in apps, and within content management and email marketing systems. It’s called Amazon Personalize, a nod to the company’s signature move.

Happy Reading,

J.W. Gant

PS I found this great little complementary article that is also worth your time, especially if you are in the supermarket industry.
https://retailleader.com/personalization-digital-food-retailing

The Surveillance Economy

I don't recall having heard that exact phrasing until reading this recent piece in The New York Times.

The Surveillance Economy

I've read quite a bit about how authoritarian regimes around the world are using information tech to monitor and control its people.  Facebook is not a passive player in that space.  The political space has been highlighted since 2016 and the impact of Active Measures by Russian state sponsored actors to impact the elections in the United States. Also, it has been clear for quite some time how much data companies have on potential customers.  Finally, we've seen some positioning by Apple vs. the likes of Facebook (or Google) in data privacy.

This coin of phrase was new to me however and it caught my eye.  This is a good read.  How much do companies know about us? 

Read more to find out.

Here is the full story:

https://www.nytimes.com/interactive/2019/04/30/opinion/privacy-targeted-advertising.html

Here is a snippet from the piece:

“The way ads are targeted today is radically different from the way it was done 10 or 15 years ago,” said Frederike Kaltheuner, who heads the corporate exploitation program at Privacy International. “It’s become exponentially more invasive, and most people are completely unaware of what kinds of data feeds into the targeting.”

Happy Reading,

J.W. Gant

New Streaming Video Services

With the news from Apple's big event today you would think I would write about the new AppleTV streaming service.

Nah.

Amazon is the really interesting kid on the block to look at.

Why?

Data.

I've heard Amazon employees talk about swimming in oceans of data.  Outside looking in we have little idea what they have on us.  Let's take a small look at that and how it gives them a competitive advantage in streaming video services.

Read a part of the story here:

Facebook knows who you want to be, but Amazon knows who you really are,” says Alan Wolk, Co-Founder and Lead Analyst at TVREV, a TV- and advertising-focused analyst group. “People may like Starbucks on Facebook even if they only go three times a year, but Amazon knows they have a standing order for Maxwell House. The advantage for a lot of these franchises is, Amazon can sell a lot of merchandise and a lot of ads.”

That point extends far beyond The Lord of the Rings. Sports content is another big entertainment focus; Prime members can stream Thursday Night Football. Last week, the company also reportedly reached a deal with the New York Yankees and Sinclair Broadcasting to purchase the YES Network.

“Amazon knows who’s tuned into the Giants game,” says Wolk. “When Eli Manning goes for a touchdown, they can put jerseys on sale and see if people buy them if they’re $38 or $40. Do they buy two minutes after the touchdown or five? It’s scary how much they know about everyone.”

Here is the full story:

https://www.clickz.com/amazon-entertainment-advantages/228248/

Here is a piece on how Apple's new streaming service might lead to an Apple Prime membership:

https://www.zdnet.com/article/why-apples-streaming-video-service-should-lead-to-apple-prime-subscription-bundle/

Oh, and, here is a piece on AppleTV's new streaming service:

https://thenextweb.com/plugged/2019/03/25/apple-tv-gets-an-overhaul-is-now-available-on-more-devices/

Happy Reading,

J.W. Gant

Buy Directly Through Instagram

In the retail digital world we talk about friction.

Reduce the friction for the customer on their path to purchase.  Make it as easy as possible for them to find something to buy and to buy it.

I have spent a lot of time working in Facebook Pixel (Tags) to ensure the data a customer sees in their social media is relevant to them (following you around?) and helps remind them of products they've considered purchasing.

Now social media doesn't even need to get the customer back to the website.  Nope.  Just buy it right there in Instagram.

Interesting.  Powerful. 

Read more:

https://www.bloomberg.com/news/articles/2019-03-19/instagram-gets-into-the-e-commerce-business-with-checkout-tool?srnd=technology-vp

Happy Reading,

J.W. Gant

Best Retail Mobile Apps

I happen to think the world of retail is as competitive as it gets with some of the best minds and the best business plays happening.

A look at retail mobile apps is worth your time and this article by the folks at ClickZ uses the Forrester research to help you gain a view:

https://www.clickz.com/retail-mobile-apps-forrester/227758/

Here is a snippet from the piece:

What makes a retailers’ mobile app great? That question has been asked by countless marketers (and by, um, us) over the years. Forrester Research tackled it in a new report that retailers’ mobile apps, and where they excel and miss the mark.

Mobile commerce is perpetually on the rise. During Cyber Monday, smartphone sales accounted for $2.1 billion, a 48.1% growth year-over-year. And according to eMarketer, more than 90% of our time on smartphones is spent in-app.

Here’s the catch: We’re also highly selective about the mobile apps we use. App downloads keep increasing, but users’ interest disappears as quickly as a Snap. In 2017, App Annie found that the average smartphone owner only uses 30 per month and nine per day.

When Apple revealed the most popular apps of 2018, Amazon was the only retailer on the list, which was dominated by social media and entertainment. In order to command consumers’ attention, retailers have to make sure their apps are top notch.

Happy Reading,

J.W. Gant

Brands Focus on their Data

This.

This is everything.

For a company that wants a relationship with its customers.

This is everything.

This.

Owning the data on your customers is critical to present and future success whether you are a manufacturing brand, D2C, retail, or a mix of it all.

Here is a great little article over on CMO.com:

https://www.cmo.com/features/articles/2019/3/4/adobe-2019-digital-trends-report.html#gs.0s3twp

Here is a snippet from the piece:

Brands are prioritising greater ownership and control over their data as they ramp up their investments in customer experience and personalised services, according to new research.

That’s the key finding of the “2019 Digital Trends” report from Econsultancy and Adobe, which surveyed nearly 13,000 marketing, advertising, e-commerce, creative, and IT professionals worldwide. (CMO.com is owned by Adobe.)

As in 2018, brands are continuing to increase their investments in personalisation.

Happy Reading,

J.W. Gant

HolidayWrapup - Mobile Drives Traffic

If eCommerce is part of your strategy you should be paying close attention to the trends in customer shopping habits.

The shopping season in 2018 was dominated by mobile touchpoints as customers increasingly get out their phone to shop.

Here is a snippet from the report:

Mobile shopping eclipsed desktop for the first time during the 2018 holiday season: 48% of orders came from mobile devices while just 44% came from desktop or laptop computers, according to Salesforce. Mobile accounted for 66% of all e-Commerce traffic during the season, and 74% of shoppers browsed from a mobile phone on Christmas Day.

Here is the full story:

https://www.retailtouchpoints.com/topics/omnichannel-cross-channel-strategies/holiday-wrap-up-mobile-dominates-e-commerce-driving-66-of-traffic

Here is one other point.  For years now we have seen the growth of mobile as a point of interaction between retailers and manufacturer brands while sales has been dominated on a desktop style device.  That is trending towards a pure mobile-first interaction.  The customer shops on their phone, finds what the want on their phone and buys it there too. We are projected to pass the 50% threshold within the next 2 years.

Here is that data:

https://www.statista.com/statistics/249863/us-mobile-retail-commerce-sales-as-percentage-of-e-commerce-sales/

Happy Reading,

J.W. Gant

Not eCommerce but Experience Commerce

Every now and then someone coins a phrase that really captures something.

Bricks & Mobile really works well from my perspective.  A play on the traditional retail store enhanced with mobile.

Now its not eCommerce but Experience Commerce.

Experiences win customers and retain them.

I agree.

Here is a snippet from the piece:

Recently, I went on a health kick and stopped going to the [donut] shop entirely. When I finally returned, the woman who runs the shop said, “We thought you moved! It’s good to see you.” I made the decision right then to reinstate my once-a-week doughnut splurges. They were so happy to see me, they gave me my doughnut free, and I was utterly charmed by the interaction. It’s nice to feel seen, and if my business means that much to a sweet couple, then I want to make sure I spend my extra calories on them.

In the world of ecommerce, it can be a bit daunting to make sure customers feel as welcome as I do in that doughnut shop, but focusing on experiences, rather than sales, can mean more personal, and longer-lasting, relationships with customers.

Here is the full story:

https://www.clickz.com/experience-commerce-winning-customers/221080/

Happy Reading,

J.W. Gant

Nike and the Store of the Future ... Today

It started for me with the launch of the Nike Apple Watch.

An Apple Watch branded specific to Nike.  Cool looking too.  There's much more going on there than I realized at first however.  If a loyal Nike customer is wearing that watch, they likely have the Nike app to go with it and ... what happens when that combination goes to a mall near a Nike store?

Bingo.

Nike Stores are really at the cutting edge as this piece talks about.  Here is a snippet from the piece:

Retail isn’t dead, boring retail is. That was the sermon Nike was preaching at its New York City headquarters yesterday in a presentation by chief digital officer Adam Sussman, senior director of Nike Stores Experience Michelle Warvel, and Ron Faris, head of Nike’s SNKRS app and s23 NYC digital studio. The brand is using SNKRS to connect with culture, experimenting with turning experiences into retail opportunities, as well as preparing to roll out in-store features in which customers check out their new kicks with their phone.

I love how that article begins by the way.  So very true!

I talk about the traditional ranking of retailers, Tier 5 the smallest like your local christmas tree vendor, and Tier 1 the largest like Walmart.  There is really a "super tier" now.  Those retailers putting it all together: digital interactions (mobile and social), ecommerce, and a great in-store experience.  They are the very top of the list.  Some companies can do one of those great and succeed but they'll never be the biggest of the big.  Two gets you a long ways but the very best do it all.

Here is the full story:

https://www.fastcompany.com/90256871/nike-showcases-its-mobile-vision-for-the-future-of-retail

Happy Reading,

J.W. Gant

BRotD - Entry 0264 Grocery App Usage Increase

Best Reading of the Day

Forbes.com has a great piece out about mobile apps and supermarkets.  That's something I know a little bit about as I led an effort for 3 years in that space.  They predict the apps will see a 50% increase in usage.  That is something else I know a little about having written a few papers on the subject.

Here is a snippet from the piece:

When the fridge is empty, and you are too tired to put on real clothes to go shopping, reaching for the phone to use a grocery app is an easy solution. You are not alone when you do this. According to a study from eMarketer, grocery app usage will grow by 50% this year, and 18 million Americans will order food this way. However, brick-and-mortar grocery stores are not going away and can take advantage of this industry shift.

Here is the whole story:

https://www.forbes.com/sites/lanabandoim/2018/09/11/grocery-app-usage-will-grow-by-50-what-this-means-for-the-industry/#752a389164dd

Happy Reading,

J.W. Gant

BRotD - Entry 0263 AI over A/B Testing for Advertising

Best Reading of the Day

I am working to get my head around the impact Artificial Intelligence, machine learning, will have on our world so I'm pulling in any interesting article I see on the subject.

If you've watched even one episode of the landmark television series 'Mad Men' you'll have an appreciation of the work that goes in to creative decision making for advertising.  Now let the machines do a big chunk of the work.

Here is a snippet from the piece:

Even though one of the main goals of digital marketing is to serve customers the right message at the right time, we all know what it’s like to be chased around the internet by an ad that’s completely irrelevant or just plain annoying. And that’s because deciding when and where to deliver that message, not to mention the labor that goes into creating the message in the first place, has long involved human guesswork. Granted, those guesses often come after rigorous testing, but those best tests are limited to the often slow-moving process human analysis. Until now.

Artificial intelligence has already transformed everything from the IT department to the customer service experience, and now, machine learning is on track to completely change the ways we think about ad creative.

Here is the full article, another excellent one from ClickZ:

https://www.clickz.com/how-ai-could-make-a-b-testing-a-thing-of-the-past/216302/

Happy Reading,

J.W. Gant

The New Nike Mobile App Store

We've been hearing it for years now.

Bricks & Mobile, the play on the descriptive "Bricks & Mortar".

Truer words were never said.

When I was building the shopping assistant app for regional supermarkets the concept was an in-store shopping assistant.  I envisioned mobile would soon enable concierge level service for the masses.

Hello Nike.

Here is a snippet from the piece:

A year later, the mobile strategy is showing results with direct-to-consumer sales that rose 34% and comparable store sales gains of 5% in fiscal Q4 2017 from a year earlier, per eMarketer research. Nike's website also had about 11% of the online traffic generated by the top 10 U.S. apparel retailers in Q1 2018, one of the only direct-to-consumer brands in the top 10, according to SimilarWeb.

Here is the full article:

https://www.mobilemarketer.com/news/nike-melds-mobile-physical-retail-with-new-la-concept-store/527832/

Happy Reading,

J.W. Gant

Technological Future of Retail

It isn't often I see a tech journal site do an analysis like this where they step outside their comfort zone.

Fun fun.

For once a technology first site looks at what is happening in brick & mortar retail, rather than the other way around.  Worth the read though it points to a pending larger report from the team. I'll try to update this story with that report once it comes out.

https://www.zdnet.com/article/the-future-of-retail-4-trends-transforming-how-we-shop/

Here is a snippet from the piece:

1. Mobilized shopping

You can now walk into a store, find the product you want, then pull out your phone and order it from an app or a mobile site, and maybe even get same-day delivery. This raises the bar ...

Happy Reading,

J.W. Gant

Alexa in Hotels

"Alexa, get me room service please."

"Dialing room service."

Is this what you want in your hotel?  Have I some news for you!

Me, I find the idea of a device constantly listening for you to talk to it to be a bit creepy.  Pass.

Read on:

https://gizmodo.com/alexa-for-hospitality-lets-amazon-follow-you-on-vacatio-1826947384

Here is a snippet from the piece:

For those averse to talking on the phone, hotel stays can resemble a war of attrition, testing your mettle to see how long you’ll go without calling the front desk and admitting you forgot to pack your toothbrush. But Amazon’s new Alexa for Hospitality service, which puts an Echo device in your hotel room, might let you avoid the conversation altogether, and let you bring a bit of your always-on, always-listening, always-spying smart home with you. So don’t do anything stupid.

Happy Reading,

J.W. Gant

BRotD - Entry 0259 Regulating Technology

Best Reading of the Day

"Robber Barons"

That's what they were called.

In the late 1800s they industrialists who used questionable methods to get rich came to be known as robbers. 

Here is a bit more on that subject:

https://en.wikipedia.org/wiki/Robber_baron_(industrialist)

That is the language now in use to describe Google, Facebook, Amazon and more who have convinced the masses of the population to hand over their valuable personal data for free.  Time for regulations of these giants in technology?  There is an argument to be made.

Read more here:

https://www.technologyreview.com/s/611425/its-time-to-rein-in-the-data-barons/

Here is a snippet from the piece:

When Mark Zuckerberg appeared before Congress earlier this year to discuss how the now-defunct political-data company Cambridge Analytica acquired data of up to 87 million Facebook users without their knowledge or consent, one of the few pointed questions came from Lindsey Graham, a Republican senator from South Carolina. “Who’s your biggest competitor?” Graham demanded. After Zuckerberg replied that Google, Apple, Amazon, and Microsoft all had some overlap with various Facebook products, Graham chafed at the answer.

“If I buy a Ford and it doesn’t work well and I don’t like it,” pressed the senator, “I can buy a Chevy. If I’m upset with Facebook, what’s the equivalent product I can go sign up for?”

Happy Reading,

J.W. Gant

Rethinking Your Brand App

The folks on the tech team over at Forbes have an opinion piece worth reading.

Here is a snippet from the piece:

Salesforce’s most recent State of Marketing report explains that marketing leaders are zooming in on the customer experience as a critical part of their marketing strategy. In the report, 68% of the marketing leaders surveyed said their companies are increasingly competing on the basis of customer experience and 64% are focusing more on providing consistency across every channel to accommodate changing customer expectations.

What can I say?  This "recent" report says the customer experience is critical?

Joking right?

Seriously.  Pulling my leg.

We have known for years you need to be where your customer is.  Starbucks has it figured out.

Still worth the read though.  Here is the full article:

https://www.forbes.com/sites/forbestechcouncil/2018/06/11/four-ways-to-rethink-the-brand-app-experience/#462f433d5e4e

Happy Reading,

J.W. Gant

Virtual Store Obsession

First, let's get the notion of the so-called "retail apocalypse" out of the way.

The Unites States is over-saturated with physical retail and it is feeling gravity pull it back to earth. Also, a few brands that have failed to keep up with the times are going under (Sears won't last much longer as the CEO enriches himself with its brands).

However, there is a whole new opportunity for retail and there is a gold rush to get there.

Next up is the virtual online experience.  Enter the Obsessed.

Here is a snippet from the piece:

"You can't sell fashion and art the same way you sell toothpaste," says Neha Singh. "But on the internet, that's exactly what we do: Toothpaste is sold the same way as beautiful clothes."

Singh is the founder of Obsess, a new online shopping platform that seeks to reinvigorate what she describes as the "boring and tedious" business of online shopping. Singh hopes to usher in a new era of online retail, where currently, items are almost always presented as two-dimensional thumbnails on a uniform scroll-through grid.

Here is the full story:

http://www.businessinsider.com/neha-singh-obsess-google-amazon-experience-online-shopping-2018-6

I love stories like this for the multi-faceted aspect of it.  This is retail, it is technology, it is innovation, it is the customer experience, it is all of that and more.

Happy Reading,

J.W. Gant