From chapter seven of Andrew Pearson’s book Going Mobile: Going Social, available at Amazon.com -‐-‐ http://www.amazon.com/Going-‐Mobile-‐Social-‐Andrew-‐Pearson-‐ ebook/dp/B00Q49WHD4/ref=sr_1_1?ie=UTF8&qid=1420254894&sr=8-‐ 1&keywords=going+mobile%3A+Going+social
Retailer and e-‐tailers The majority of retailers worldwide now realize that mobile is an important marketing and selling channel for them and mobile is really the only channel that helps consumers move from online-‐to-‐offline seamlessly. “Research shows retailers will generate approximately $689 billion through mobile-‐influenced sales in 2016. Currently, 58 percent of smartphone owners use mobile for in-‐store related shopping and are more likely to convert in-‐store as a result” (Abramovich, 2013). Retailers should view their business through the lens of omni-‐commerce—the evolution of multi-‐channel retailing that is “concentrated more on a seamless approach to the consumer experience through all available shopping channels, i.e., mobile internet devices, computers, brick-‐and-‐mortar businesses, television, radio direct mail, catalogs, and such” (Wikipedia.org). “The omni-‐channel consumer wants to use all channels simultaneously, and retailers using an omni-‐channel approach will track customers across all channels, not just one or two. In the brick-‐and-‐mortar channel, digitally-‐savvy customers are entering stores already well-‐informed about a product’s features and prices, and expect store employees to know more than they do” (Wikipedia.org). Here retailers have two options; act as if nothing has changed, i.e., bury their head in the sand and hope to deal only with the uninformed consumers; or embrace this new technology and offer customers what they really want—a customized, personalized shopping experience from wherever and whenever they want it. With omni-‐channel consumers, all shopping channels work in concert, from the same database of products, prices, promotions, etc. (Wikipedia.org). “Instead of seeing a variety of touch-‐points as part of the same brand, omni-‐ channel retailers let consumers experience the brand, not a channel within a brand. Merchandise and promotions are not channel specific, but rather consistent across all retail channels. The brick-‐and-‐mortar stores become an extension of the supply chain in which purchases may be made in the store, but are researched through other channels of communication” (Wikipedia.org). In terms of omni-‐channel retailing, marketing is made more efficient and personal because offers made to a consumer are determined by previous purchase patterns, social network affiliates, Website visits, loyalty programs, and other information extracted from multiple data mining techniques (Wikipedia.org). Omni-‐channel marketing can also work with most of the channels I discuss throughout the rest of this chapter, including such diverse channels as augmented reality, CSC, geofencing applications, OTT, QR codes as well as many of the social media platforms I discussed in chapter three. In her article Engage Customers and Gain Advocates Through Social Media and Social Networking, Wendy Neuberger argues that: “Social commerce is about making a retailer’s brand a destination. Retailers really need to listen to what their customers are saying. Customers can provide valuable input and feedback that can be used to
make more informed assortment decisions, changes to Website features and enhancements to the shopping experience.” “When customers feel their voice is being heard, they feel a stronger connection to the retailer and are more likely to become advocates” (Neuberger). Neuberger claims it is important for retailers to identify and engage with the key influencers for several reasons, the two most important being: “to empower their advocacy or capabilities, which helps build and foster a sense of community among brand loyalists, and empowers those loyalists to better advocate on behalf of a brand, product and/or service” (Neuberger). Neuberger recommends that retailers use the following social media platforms: •
Blogs: retailers can provide additional product or category information here as well as post how-‐to information in the form of text, photos and/or videos. Retailers should also provide space for customers to add feedback and/or comments about their retailing experience.
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Micro-‐blogging: coupons, sales and promotions can be offered through these channels. Retailers can “‘tweet press releases, provide exclusive tips and tricks to customers, and ask for customer feedback, suggestions or ideas for improvements. Some retailers even use Twitter as a customer service mechanism” (Neuberger).
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Co-‐Shopping: this is a form of social shopping and it enables two people—a customer and sales associate or two shoppers in different locations—to share a joint shopping session using live instant messaging such as Skype, WeChat or any number of other OTT services (Neuberger).
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Widgets: these are tiny applications that can be embedded into a Web site, blog or social network that are portable and relatively inexpensive to create.
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Social Bridging: anyone who has signed into a website using their Facebook, Pinterest or Twitter account knows what social bridging is. “This level of authentication provides enough credentials to participate in the social elements of the site. Additional authentication is required to complete a shopping transaction due to the sensitivity of the content included in a shopper’s account. Social bridging can be used to drive traffic and engage existing and new customers. It can access a user's identity, their social graph, and stream activities such as purchases and other social participation on the retailer’s site” says Neuberger.
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Mobile Social Networking Applications allow users to access social networking directly from a smartphones. All of the social networking tools described above can be used on the mobile device, and this method of interfacing is rapidly growing.
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In-‐Store Kiosks and Flat Panels can be provided to enable customers to use social networking tools from within a store.
Mobile and social media marketing has the potential to revolutionize the paradigms of retailing from ones in which the customer must physically enter the retailing environment to one in which a retailer can enter the consumer’s environment through anytime, anywhere devices such as the mobile device (Shankar et al., 2010). Augmented reality is being exploited by retailers as diverse as Swedish furniture manufacturer Ikea and US sports apparel manufacturer Nike. Using AR, Ikea’s new catalog app allows “customers to visualize 3-‐D versions of Ikea’s furniture in their homes” (Stinson, 2013). “Customers flip through the print catalog, and when they come across a plus symbol on a page, they hover their phone or tablet over it until a screen pops up asking them to scan the
images on the page. At that point users will see the bonus features, which could be a 360-‐degree view of a room, videos, additional product information, or the option to place a piece of furniture in their room” (Stinson, 2013). “There are only around 100 products available for the 3-‐D augmented reality option, which in the grand scheme of a 300-‐plus page catalog doesn’t amount to much” (Stinson, 2013). However, the furniture that was chosen was large room-‐dominating furniture like sofas and chairs (Stinson, 2013). Ikea, you see, had researched their customers’ habits and discovered that around 14 percent of them had bought a wrong-‐sized piece of furniture and more than 70 percent of them didn’t know how big their homes really were (Stinson, 2013). “When customers find the piece they’d like to test out, they place the physical catalog in the spot where they envision their new love seat, and the device’s camera uses the book as both an anchor and a way to gauge the correct scale for the products shown on screen” (Stinson, 2013). A virtual Ikea sofa literally appears in a potential customer’s home. In 2012, Ikea introduced another feature to the app that allowed “customers to scan the page for added content like videos, full-‐room views, and decorating tips” (Stinson, 2013). The app is pretty sophisticated and probably wasn’t cheap to build, but it was probably worth it as Ikea is trying to sell large and expensive items here and the app does address a problem that its customers do actually face. Being the forward-‐thinking and original company that it is, Nike used augmented reality technology to create a 1
game (Russell, 2012). “Nike recruited 50 runners to wear ‘Flash’ running jackets hooked up to GPS systems, while they ran around Vienna for 90 minutes” (Russell, 2012). As the “targets” ran through the city, game participants tracked them with a mobile app and tried to take a photo of them as they ran by (Russell, 2012). Those with the most photos won a prize (Russell, 2012). Most AR promotions engage viewers because they are so unusual, but this took engagement to whole new level, while making emotional connections with the audience (Russell, 2012). “UK-‐based Tesco is also reported to be developing 3D interactive projection. Instore augmented reality overlays of this kind will become the norm by 2022, driven largely by smartphone applications. These will range from simple things such as storemap apps to locate products to more complex tools like codeless product scanning” (Economist Intelligence Unit Limited, 2012). Facebook is a great place for retail establishments to build a presence. “Facebook Places Pages are for businesses that actually have a physical location and, unlike other business pages, they contain an area that allows users to ‘check-‐in’ at the businesses’ physical location” (Miller, 2012). Facebook is also a great place for retailers to advertise as the following numbers show: •
Average Facebook ad clickthrough rate for retail advertisers: 0.20%.
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Percentage of total retail Facebook ads that appear in newsfeeds: 57%.
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ROI for retail Facebook advertisers: 152%.
Google+ is also a good site for retailers to exploit. For instance, Starbucks has three million followers on Google Plus, meager compared with its 36 million “likes” on Facebook. Yet it updates its Google Plus page for the sake of good search placement, and takes advice from Google representatives on how to optimize Plus content for the search engines. Retailers are always looking for the most cost-‐effective marketing and CRM solutions available and from text marketing to QR Codes to Bluetooth advertising to mobile coupons and mobile payments, mobile marketing can 1 https://www.youtube.com/watch?v=GcnSO-‐5rgGk#t=82 (Retrieved 1 August 2014). 2
http://www.bemarvellous.com/does_adidaslondonmarathon.html (Retrieved: September 24, 2009).
prove very beneficial to the retail industry in a multitude of ways. Mobile marketing lets retailers generate leads, improve customer service, disseminate important information instantaneously and, just as importantly, discretely. Mobile marketing's actionable analytics intelligence can also help retailers understand the ebb and flow of its business so that they can actually manipulate their customer's behavior. In a unique use of location-‐based technology, Adidas has run the mobile “Runner Tracker” app at the London 2
Marathon since 2009. The app allows mobile users to track runners in the marathon. Radio-‐frequency identification chips are inserted into a runner’s shoes and timing mats are placed along the course. Mobile users who download the “Runner Tracker” application receive the latest information on a competitor’s progress as well as the projected finish time. Users can also send personalized messages of support to the runners. These messages are displayed on large monitors throughout the course. The application was so successful that more than half-‐a-‐million people interacted with it directly and more than a million people were exposed to it through social media and social networks in its first year. Instead of filling newspapers and magazines with advertisements, a retailer should create databases of opted-‐in customers who have the propensity to purchase goods in the future. By tracking OTT, SMS opt-‐in use, a retailer can get immediate and highly quantifiable data on who has signed up for their mobile coupons, who has opted-‐in to their mobile campaigns, who has used their mobile coupons, and who might be planning to attend certain advertised events. Whether done on Wordpress or Tumblr, blogging is an important part of a retailer’s social media strategy. “Of all the places a company can build a lifestyle around their brand, a blog is the best suited. On Tumblr, Labrotatoria's Musing On... and The Classroom's Stay Classy Houston are great examples. They both share inspirational style images, product info and behind the scenes posts. CakewalkStyle Shop has three blogs, yes three. Lifes a Cakewalk is its main blog, Influencers focuses on bloggers and taste makers, and Style Guide shares its latest store items and trends” (Luter, 2014). The best part about being on Twitter or Weibo or any of the other instant messaging services is the ability to interact with a customer in real time (Luter, 2014). “Resolve customer service issues, get a pat on the back, or valuable feedback all from the comfort of home or the store backroom. The retailer Lilly Rain is really great about interacting with its customers online. They retweet and reply to the messages and even re-‐post blogger websites that show them love. They also have an active Google+ page, which is great for Google searches” (Luter, 2014). In her article Retailers Doing It Right in Social Media, Cherise Luter (2014) advises that “Twitter should not be ignored. Use Twitter to tweet out “instant sales.” Get the word out about leftover products, new products in limited supply, or last-‐minute sales. Believe it or not—your customers ARE using Twitter. And if they see something great at your store—they WILL retweet.” One of the cleverest retail social media campaigns is the one for DollarShaveClub.com (DSC). “Social media is rooted deeply in DollarShaveClub.com's history—it's how the DollarShaveClub.com launched its website with a viral video on YouTube that disrupted the $13 billion shaving industry” (Shortyawards.com, 2014) “With almost 1 million followers across Twitter, Facebook, Instagram, YouTube, and Google+, DollarShaveClub.com carefully utilizes its widespread and engaged fan base to provide timely member support, in an effort to create a virtual clubhouse, and revolutionize product launches” (Shortyawards.com, 2014). 2 http://www.bemarvellous.com/does_adidaslondonmarathon.html (Retrieved: September 24, 2009).
DollarShaveClub.com interacts with every post and message on Facebook and Twitter 24/7 to provide timely resolutions to any issue that may arise (Shortyawards.com, 2014). DSC reaches its goals to resolve issues within 24 hours through social member support, while also providing a convenient way to build relationships with the brand” (Shortyawards.com, 2014). “On Twitter, DollarShaveClub.com has two handles, with its @Ask_DSC handle entirely dedicated to member support. Through witty solutions, @Ask_DSC takes care of reshipments and other questions in a few 140 character tweets” (Shortyawards.com, 2014). On Facebook, every post receives a reply, whether positive or negative (Shortyawards.com, 2014). “Whether it's a like or comment, the social team let's members know they are readily available to answer anything from anyone. The brand doesn't focus on social standing. Every member receives the same superb service” (Shortyawards.com, 2014). The company was founded on the principles of being smart and innovative (Shortyawards.com, 2014). DSC recognizes its members have a lot in common with the company—they're smart and innovative, too (Shortyawards.com, 2014). DSC started a program called DSC Sponsors Your Thing so they “can be the official sponsor of Bill Rodd's softball team in Virginia and raise money for Kip's brewery in Los Angeles. ‘Your Thing’ is featured on Facebook, Twitter, and Instagram to let members know what other members are up to, and most importantly, how to support them” (Shortyawards.com, 2014). This take intimate marketing and outreach to a whole new level. The fact that few people have heard of Kip’s brewery matters little, it’s the fact that DSC is taking the initiative that will gain them support. With mobile apps, retailers can use the multiple functions of mobile in some clever and customer-‐centric ways. “The most helpful feature of Home Depot’s mobile offerings is the ability to check the inventory of the store you are in and view the aisle location for the item you are looking for. It includes product details, pricing and ratings by scanning a barcode on the item” (Abramovich, 2013). Home Depot also provides how to videos and product videos on their app (Abramovich, 2013). “Another cool feature is the ability to access the caliper, calculator and converter tools to ensure adequate project inventory. Using your phone’s camera, users can also visualize and select products for the home or office” (Abramovich, 2013). TargetLists (available via the giant retailer, Target’s, mobile website) “helps users keep track of the things they need while shopping in the store. A barcode scanner within the Target mobile app lets customers get prices, check availability and add to the shopping list” (Abramovich, 2013). This dovetails nicely with Target’s need to optimize its inventory systems. The cosmetics brand Sephora has a mobile app that allows users to scan a list of ratings and reviews on Sephora products from other Sephora shoppers fitting a similar profile to the scanner (Abramovich, 2013). The app also gives users the ability to view past purchases (Abramovich, 2013). “Shoppers can select ‘in-‐store mode’ and scan items’ barcodes as they shop. Then, instead of standing in line to pay, users can go to a self-‐checkout terminal, scan a barcode on their phone’s screen, which reads the items they have in their cart and swipe their credit card to pay” (Abramovich, 2013). According to JWT’s (2012) 100 Things to Watch In 2013, “Store windows are turning into 24/7 retail platforms via technologies like interactive touch screens and QR codes.” According to the article, “In late 2012, PayPal rolled out a test in Amsterdam’s De 9 Straatjes shopping district in which retailers posted QR codes on their storefronts, enabling shoppers with the campaign’s mobile app to scan the code for purchase links to products in the window” (JWT, 2012).
“‘Showrooming’ has emerged as a trend where customers visit stores to find items they like, but then compare the price of that item and make the relevant purchase on the phone” (Economist Intelligence Unit Limited, 2012). The emergence of these retail price comparison sites are not new, the ability to go online from a mobile devices has given shoppers the power to compare very easily and the current austere economic environment has supplied a strong incentive for consumers to engage in this behavior (Economist Intelligence Unit Limited, 2012). Today, however, it is not just single items that are being compared. “Where price comparison sites have been limited to checking single items, newer online ventures such as mySupermarket in the UK allow consumers to compare the price of aggregated baskets from key retailers and choose which offers the best value” (Economist Intelligence Unit Limited, 2012). “By 2022, these bargain-‐driven technologies will have merged and expanded in scope so that sophisticated sites are able to tailor the best voucher or Groupon-‐type offers into much more personalized and bespoke retail services. Comparator sites will be able to split online baskets automatically between different retailers to ensure a ‘best price’ for each item” (Economist Intelligence Unit Limited, 2012). “’Marketplacing,’ where different retailers compete under one ‘virtual’ roof, will offer maximium choice to consumers (Economist Intelligence Unit Limited, 2012). Using a WeChat branded account, retailers can activate a pop-‐up shop within a short timeframe for a launch, product demo or trial (Baker, 2014). Once a user is in the pop-‐up shop, he or she can pay on location, provided the payments function has been set up on the WeChat account (Baker, 2014). It makes the retail process much more flexible as brands can take pre-‐payments or set up small sales without cash registers at WeChat shops (Baker, 2014). QR codes displayed on signage at the front of a store could download a list of weekly specials onto their phone. These coupons could be redeemed at the register when checking out, or, potentially, online at a later date. For the retailer, this mobile technology lets them deliver additional product information at the most opportune time—during the shopping experience, when buyers are in the all-‐important “decision mode” (Tsirulnik, 2009). For example, by scanning a QR code attached to a red dress a shopper is interested in purchasing, the shopper can see images of a model wearing the dress, along with matching shoes and accessories (Tsirulnik, 2009). This could also include some personalization as the QR code scan could be attached to a SCRM system that could flag certain colors or combinations that the buyer has shown a preference for in the past. A customer's retail experience could be improved by giving the customer instant access to her information when and where she needs it. For example, QR Codes could be attached to an item's price tag and, once a customer takes a picture of the tag, their mobile phone could connect to the retailer's CRM system and a return text with very specific product information could be sent. This information could include which celebrities wear the label, what other colors the item is available in and what other accessories might match the outfit. Neuberger argues that it is very important to monitor the market conversation to understand what the marketplace is (or isn’t) saying about a retailer (their brand, products, services, etc.). “Retailers need to understand the tone and impact of the conversation and begin to identify areas of opportunity for helping shape that conversation and gather valuable market intelligence,” says Neuberger. For Neuberger, “Social media metrics include sentiment, activity, share-‐of-‐voice, and thematic content of online conversations. Trends and key influencers (“mavens”) and the most active sites/blogs are identified and tracked. By understanding the impact, retailers will have a way of identifying measurable progress, quantifying the return on social media investment, and enabling benchmarking against future efforts.”
Several retailers are also venturing into video-‐casting. For example Estée Lauder’s Clinique brand launched the 40 episode drama series, Sufei’s Diary, on a dedicated Web site that broadcast daily (Chiu et al., 2012). “While skin care was part of the story line and products were prominently featured, Sufei’s Diary was seen as entertainment—not a Clinique advertisement—and has been viewed online more than 21 million times. Clinique’s online brand awareness is now 27 percent higher than that of its competitors, although social-‐media content costs significantly less than a traditional advertising campaign” (Chiu et al., 2012). Looking ten years into the future, retailers should understand that there will be a radically different retailing landscape. “By 2022, China is expected to account for around a quarter of the global retail sales generated by the 60 largest markets, twice as much as the US” (The Economist Intelligence Unit Limited, 2012). But “China is not the only emerging market for retail to focus on as a global leader in 2022, although it is the largest. India, Brazil and Russia are also stepping out of the shadow of their Western neighbors to become retail powerhouses. By 2022, these emerging markets will form four of the six largest markets in the world in US-‐dollar terms, and perhaps five of the top seven if the Indonesian market continues to grow” (Economist Intelligence Unit Limited, 2012). In the coming years, “as incomes recover, enhanced recognition technology will allow consumers to make impulse purchases directly on mobile platforms through a variety of channels. Innovations using augmented reality overlays and social media will provide an additional layer of interactivity. The rise of virtual goods such music [sic], video and games downloads will become increasingly cloud-‐based, and 2022 will see physical products such as compact discs, DVDs and console games rendered completely obsolete except as niche items” (Economist Intelligence Unit Limited, 2012).
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