Online Video Retail Success Stories

Martin Gill

Increase your conversion rates overnight!

Really?

That’s amazing. How can I get a piece of that pie? 

Call it what you will -- V-Tail, vCommerce, or just plain online video -- we are seeing some pretty bold claims around the use of video in eCommerce. Claims from platform vendors, press, and even some case studies and success stories from large retailers who are seeing some significant successes when they integrate video content into the online shopping experience.

But there’s the key. Integrate. Of course it isn’t as simple as sticking a few videos on your existing dot-com site and hey presto, conversion rates skyrocket. Video needs to support the sales process in a way that makes sense to your customers, that supports your brand values, and that enhances the shopping experience.

There are a growing number of ways to source video content, and an increasing number of players in the market who will all tell you that they have the answer. From user-generated content to automatically generated video. From content delivery networks to social media. There are a bewildering number of options out there.

Video absolutely can deliver firm benefits :

  • It can increase page views by driving traffic to your site.
  • It can enhance the time people spend lingering on your site, giving you more opportunity to market to them.
  • It can help to increase conversion.
  • It can reduce your returns.
Read more

Magnificent Mile - Yes. Multichannel Mile…Still A Work in Progress

Andy Hoar

Recently two colleagues of mine, Patti Freeman Evans and Martin Gill, put their respective cities’ shopping meccas to the multichannel test.  The question: To what extent were bricks and mortar retailers on Fifth Ave in New York and Oxford Street in London using their physical stores to advertise and promote their digital channels?  

Eager not to be left out...and curious to see how my city of Chicago would fare…I paid a visit to our world famous “Magnificent Mile” to see if/how bricks and mortar retailers promoted a connection to their own digital channels.

As I walked both sides of Michigan Ave (home to retailers such as Northface, Macys and Gap…as well as high-end retailers such as Tiffanys, Louis Vuitton, and Chanel)…I thought to myself, would Chicago be different from London and New York?  Would America’s heartland have a better feel for a large and growing number of shoppers today who may physically “be” in stores but whose shopping “attention” may reside elsewhere?

Some findings:

  • Traditional Brands Disappointed.  Count among this grouphigh-end/luxury brands and more established brands (e.g. Louis Vuitton, Macys).  Which is not to say that all youth-oriented brands excelled (e.g. Zara, Disney)…in fact, a surprising number of them failed to show their multichannel chops (e.g. no URLS in store, no discernable mobile presence). For example, The Disney Store was heavily promoting the “Cars 2” movie on monitors in its store, but I could not find any links anywhere to their content-rich website.
Read more

Categories:

Do We Still Need SMS?

Julie Ask

Apple's announcement today on the "Notification Center" triggered my comments. Other than the fact that I no longer need to tether all of my devices to a computer (finally!), I think this was my favorite announcement. My top "negative" re notifications to date has been the inability to save or file them. Do I want to save a FB update? No, not really. But I do want to save and file coupons, promotions, news alerts, etc. Will be interesting to watch the effectiveness of notifications now that they DON'T interrupt . . . in some ways, that's the point. Less intrusiveness may attract more uses of those afraid of annoying their customers. Re 100B notifications to date . . . wow.

"Do we need SMS?" I think the answer is "absolutely, yes." I've had more than one of my colleagues suggest to me that SMS no longer holds any relevance for commercial businesses hoping to reach their customer base. I disagree. Here's why:

  • For the forseeable future, a very small percentage of any company's customers will have downloaded its application. A few companies like eBay or Amazon.com may be the exception. Relying only on push-based notifications does not offer enough reach. Apple's announcement today, however, makes push-based notifications a lot more interesting.
  • Push-based notifications on smartphones are more of a US-centric phenom. If you are targeting customers in Asia, Africa, India, Latin America, etc., you need SMS -- SMS is the primary application/transport medium on most phones in many countries.
  • Tracking calls-to-action. When does a message drive an action? Clicking through to a URL? Using a coupon? Visiting a store? Calls-to-action can be digital, physical, or calls.
Read more

Get Customer Obsessed Or Perish: Welcome To The Age Of The Customer

Carrie Johnson

Today Forrester released a piece of must-read research for every organization that markets and sells to customers. In Josh Bernoff's report "Competitive Strategy In The Age Of The Customer," he illustrates how customer-led disruption forces firms to throw away old models of competitive differentiation. Competitive barriers like manufacturing strength, distribution power, and information mastery won't save anyone. The report concludes that the only sustainable competitive advantage is knowledge of and engagement with customers. In the age of the customer, firms must become customer obsessed.

eBusiness and channel strategy professionals are no strangers to customer-led disruption. Many firms' web strategies are just now finally catching up to the sneak attack of Amazon.com and E-Trade, if they survived at all. What happened in the early '90s will continue to happen again and again. In a companion document that I also released today, I argue that to survive, eBusiness and channel strategy professionals must embrace the principles of agile commerce -- optimizing people, processes, and technology to serve customers across all touchpoints. Specifically, eBusiness and channel strategy professionals must shift from:

  • Customer acquisition to retention.
  • Siloed channels to touchpoints.
  • Reactive to actionable use of customer data.

I encourage you and everyone in your organzation to read this critical document about surviving and thriving in the age of the customer.

The Future Of Mobile Is Context

Julie Ask

Why do you use the remote to change the channel on your TV? An airplane to fly across the country? A microwave to heat up food? Why -- because it is convenient. Consumers will adopt and use convenient services and products. In mobile, this means services that offer immediacy and simplicity through a highly contextual experience. If my gate changes for my flight leaving in 40 minutes, I want to know now -- there is value in knowing now or immediately. If I want to donate money to the flood victims in Louisiana, it is simpler to send a quick text message rather than write a check and mail it. If I want to eat Thai food near my home, I want to find a restaurant in San Francisco -- near my location (context). Using my phone that leverages my location through GPS is simpler than typing in a neighborhood or address.

Mobile phones are convenient tools to do many things today -- refill a prescription, deposit a check, navigate, check Facebook, or get email. The list of convenient services on mobile phones is going to continue to grow. Why? Because contextual information is going to get a lot, lot richer. Today, context is primarily the location of an individual, their stated preferences, or past behavior (e.g., purchases). This information is gathered as consumers use their mobile phones for navigation, news, and shopping. The information collected will become much richer for two reasons. First, consumers will use their phones to do more things (e.g., change channels on the TV, monitor glucose levels, and open their car doors). Second, devices will have sensors such as barometers or microbolometers that collect more information passively about the consumer’s environment. The available information is becoming richer -- companies that want to deliver contextual experiences must evolve their expertise.

Forrester has identified four phase of evolution:

Read more

Allstate’s Acquisition Of esurance: The Start Of Something Bigger For Ebiz Teams?

Ellen Carney

I got jolt this morning, and it wasn’t from my coffee.  The headlines in my morning insurance news push were all about  last night's announcement that Allstate was acquiring esurance and an agency sibling, Answer Financial for $1 billion (http://www.bloomberg.com/news/2011-05-18/allstate-to-buy-esurance-in-1-b...).  Along with the fact that esurance itself has gone to market with what every ebusiness executive has stated as the big strategy over the near-term—giving the customer the choice in how they want to engage with its new “Technology When You Want It, People When You Don’t”  tagline—this deal could well be the start of a more interesting trend:  a bigger wave of M&A among Tier 1 carriers.

This news was especially tantalizing because we just wrapped up a series of interviews with insurance thought leaders to get a perspective for how the insurance industry was going to look in 2020.   We wanted to understand how these changes were going to impact the jobs of ebiz executives in insurance.  This is what we heard: 

Enabled by “big data”, carriers are going to:

  • Shed and acquire business lines to be more specialized and obviously more profitable
  • Make some splashy acquisitions (like this one),
  • Launch new and innovative business models (like a “lights out” insurer that, in exchange for low premiums, policyholders would have to do more for themselves)
  • Challenged by new market entrants who “get” data

All of which have big implications for what insurance ebusiness teams will be challenged to do.  Look for our thoughts on what 2020 is going to mean later this quarter.

Mobile Services - Failure To Focus On Customer Needs Will Result In a "Miss"

Julie Ask

I saw a story this morning on Mobile Commerce Daily: "Fontainbleau targets upscale, on-the-go consumers via mobile presence." I've been a guest at the hotel for the past day so I can't resist joining this conversation. I also happened to download this application while waiting in line for a smoothie at a restaurant yesterday -- between meetings, of course. Here's a quote from the article:

“Fontainebleau chose to launch this app to enhance the overall customer experience while giving them insight on the resort as well as the surrounding Miami Beach area,” said Philip Goldfarb, president and chief operating officer of Fontainebleau Miami Beach, Miami. “It is an extension of the brand’s commitment to providing its guests with the latest advances in the mobile marketplace.”

First, I'll offer -- I'm just a guest or customer here -- I haven't studied the business, but there are a few disconnects.  

Here's what is working well:

  • Fontainbleau does seem to have a tech-savvy customer base. As I walked through the pool area yesterday, I noticed quite a few iPads, Kindles, and smartphones -- guests definitely have their technology at the pool. And Wi-Fi works at the pool -- well done.
  • The application is promoted well. I noticed advertisements several places throughout the property. It uses a sweepstakes to promote the application with the prizes clearly listed.
  • Beautiful photographs -- this resort is amazing and is well represented by the media in the application.
  • There is a solid balance of content -- eat, shop, play, etc.
  • There was a lot of content re "what to do" nearby.
Read more

DSGI Know How. Do you?

Martin Gill

I’m intrigued by the recent launch of KnowHow.com.

I’ve known it was coming for a while, but now that it’s here it’s not quite what I expected. However in a way it’s actually a lot better. 

KnowHow.com is, for want of a better description, the customer service portal for the DSGI chain of consumer electronics stores in the UK:  Dixons.co.uk, Currys, and PC World. These stores operate in a fiercely competitive but large and lucrative market in the UK and extend their reach into Europe through sister company Pixmania.  In recent years wallet share in the CE sector has been moving increasingly online, with brick-and-mortar stores facing the challenge of competing on price with their leaner, lower-cost online rivals. But despite this off-to-online swing, the group is reporting that Internet sales are down.

I was expecting KnowHow to be its revamped eCommerce operation, its response to lackluster digital sales. But interestingly it has done something different. It appears to be trying to step out of the race to the bottom from a price perspective and is positioning itself to begin to compete on a new axis. Service. An interesting play in what could be considered a commodity market.

However, when you learn that its multichannel sales are up 12%, this may not be such a strange move.

Read more

Categories:

Apple Is Tracking Us! Oh No! Who Cares, Really?

Julie Ask

Apple has been storing our location. (See article) Sounds bad, but really, is it? My colleague Joe Stanhope forwarded the article to me with the line, “kinda scary.” Is it? Our credit cards track where we are and what we spend. The carriers know where we are all the time — they aren’t storing the information as far as we know, but they could be. Our cars can be tracked. We buy plane tickets and make flight reservations online. What’s a bit different is that many different entities have our information, but not necessarily one.

Your phone will know everything about you going forward. My phone already knows where I go (ok, and Apple is recording), who I call, what sports teams I follow, what games I play, where I bank, how often I visit Starbucks, where I shop, what books I’m reading (Kindle), what music I listen to . . . and the list goes on. What else is my phone going to know about me? It’s going to know:

  • What I eat because I want help tracking calories
  • How often I run because I track my workouts
  • What I watch on TV because my phone is my remote control
  • Who I fly . . . because I use mobile boarding passes
  • How healthy I am b/c it will track my cholesterol
  • Who my friends are from phone, texting, and Facebook
  • Where I’m eating b/c it tracks my Yelp searches and OpenTable bookings
  • Whether I’m traveling on foot or by car b/c it tracks my speed
  • How fast I drive . . .
Read more

Is Anyone In The UK Actually Using QR Codes?

Martin Gill

Intrigued by a lot of what I’ve been reading recently, I’ve started looking for evidence of QR codes transforming how shoppers are interacting with retailers. The thing is all the evidence I see with my own eyes doesn’t back up this proclaimed uptake. I’ve never noticed a single one in a shop. Now, that could be because I’ve not been looking and if I’m honest, I’ve only had a phone capable of reading them for a few months.

Time for a quick bit of ad-hoc analysis (Health Warning: NOT OFFICIAL FORRESTER RESEARCH !!!)

In order to give this mini research project some vague semblance of credibility, I have adopted the rigorous scientific approach that Mr. Featonby, my A-level physics teacher drilled into me many years ago . . . 

Hypothesis

My hypothesis is that retailers aren’t using QR codes in the UK, and furthermore, the average shopper hasn’t a clue what one is.

Methodology

  1. I went to the local Tesco Metro and browsed the aisles, looking at every product I could find.
  2. I’ve looked through every store magazine and free paper and at every poster I pass in London, on the Midlands Mainline train service, and in Nottingham (where I live) for two weeks.
  3. I posted a picture of a QR code on my Facebook page and asked my friends (average shoppers one and all!) if they knew what it was.
  4. I never said this was a robust survey.
Read more