Belly is a startup focused on loyalty. It launched in 2011 and has since grown to be active in 18 markets and more than 6500 locations. It aims to reach 10 000 locations by the end of this year and as things look, it might just do so.
The product works by allowing customers (aka “Belly Members”) to “Belly” every time they visit a “Belly Business”. That basically means scanning their unique QR codes every time they visit a partner location. In exchange, customers receive loyalty points that can be used to claim rewards.
The system is part old-school loyalty program and part gamification. Belly Businesses can encourage customers to keep coming back by adding increasingly valuable rewards, redeemable with an increased number of points.
The product is free to use for customers. Locations that feel the product is right for their marketing efforts pay a subscription fee and get fitted with the nice iPad used to interact with visitors, belly cards and access to digital features in the app.
Features include data on visitors, social media marketing options, access to reputation management on Yelp and the ability to attract new visitors with the help of Belly Bites. These are special rewards offered by locations targeting new customers. By gathering data on users, Belly can recommend the right customers with special rewards based on previous behavior.
The company has been among the first to be featured in Apple’s Passbook and is also integrated with Google Wallet and Samsung Wallet. With these integration up its sleeve as well as its game-like approach, Belly can become one of the leading solutions in loyalty programs.
But to do that, it will have to connect both offline and online experiences, providing a truly omnichannel loyalty approach, ready for the next of innovation. That is not going to be easy as what may today means payments , tomorrow can include loyalty. Apple, Google and PayPal are hitting each other hard in this market. They can surely tackle smaller companies.
But the other way around is also an option. Loyalty can turn to payments so maybe there’s more than meets the eye for Belly.
Apple Pay is Apple’s take on mobile payments. It works by storing credit card data and then charging consumers with a simple tap to NFC payment devices. Most important: it’s a huge game changer in payments.
With this product, Apple unveiled its grand vision of a simple, secure payment process. It can store multiple credit cards, it’s linked to the biggest card processors AND big banks such as JP Morgan & Chase or Citigroup. For now, not all Apple devices support Apple Pay but just give Apple a little time. The iPhone 6 and the iPhone 6 Plus come equipped with NFC technology. So will future products.
The big news: Apple is betting big on this product and you know what this means…
The retail industry hates it.
That’s right, even though Apple Pay registered 1 million credit cards in the first week and users love it, some retailers decided they know better.
Retail chains such as Walmart, Rite Aid, Target and many more chose to bet on a different technology, called MCX. The acronym stands for Merchant Customer Exchange and it is a network of retailers offering mobile checkout options through a product called CurrentC.
Seems a bit complicated? Well the short story is that even before Apple Pay was nothing but a rumor, some retailers thought – “hey, why let Apple have so much influence on our sales? Let’s build our very own mobile payment system!” (not an actual quote)
So the MCX people built CurrentC. And by built I mean they have been struggling for years to come up with something that says Mobile Payments. When Apple Pay was announced, they went on and announced their own product.
The product is sliiightlty different from Apple Pay: it works only in the MCX network and works with QR codes. Plus it stores consumer personal info and connects DIRECTLY to the consumer’s bank account. No way that storing consumer data in the cloud and accessing consumer bank accounts could ever go wrong. Just ask Target (among those in the MCX) and Home Depot.
As the public decided they are not going to wait for CurrentC to show up, retailers such as Walmart and Rite Aid went on and blocked the technology that made using Apple Pay possible.
Now why would they do that? Why is Apple Pay such a big thing and why are these retailers so afraid of it?
Ever thought of buying online and picking up in store? Or searching for an item in a physical store and asking store associates if it is available at another store? If you have you’ve probably noticed that service is lousy when it comes to connecting channels. Omnichannel retail is still in its infancy. To make things work companies have to rewire their IT infrastructure and get ready for a future where it doesn’t matter if orders are placed online, offline, in the mobile app or on the phone.
And that’s hard.
Big retailers have a problem adapting to this new landscape where the consumer is at the center of every transaction and operation. Everything is moving faster and the giants are not really that agile. For example have a look at how much faster Amazon is growing when compared to Walmart.
A large part of this change has to do with payments. Consumers now have to pay one way in the Brick-and-Mortar store. Another way in the online shop. Mobile shopping has yet another payment process. It’s frustrating and the challenge to connect all payment systems is a really rewarding area.
The mobile payments market is estimated at $90 billion and expected to grow. That’s why Google, Apple, Amazon, PayPal and even AliBaba want a piece of it.
So far Apple has managed to connect online and offline channels best. Apple Pay’s ease of use, integrated payment in Safari through the Keychain and many others make it a reasonable bet for the future.
Mobile Payments may seem like a no-go right now. After all PayPal is available for quite some time on the mobile and Google has already launched and failed once with its Google Wallet. What change the future holds as to make Mobile Payments such a big thing?
The answer is Millennials.
The up and coming generation is now just beginning to earn and spend their cash but soon they will be a driving force in the economy. Unlike elder consumers, they have no problem bridging the gap between sales channels and they definitely don’t have a problem paying with their smartphones. IF it’s easy and secure.
In a recent Accenture study millennials were found to be ready to accept mobile payments. They were, in fact, driving the adoption in mobile payments. Among those surveyed, 60% did NOT use their mobile phones to pay. Their main worries: privacy (45%) and security issues (57%). Apple Pay solves both.
Remember the iPod, the iPhone and iTunes? They are just three of the most disrupting technologies from the past decade. And they were all introduced by Apple.
The scenario is always the same: a large market in need of change. Market leaders were stuck in exploiting existing technologies. Everyone from label records to Nokia and RIM learned a hard lesson. When Apple goes after a large market, it will revolutionize it.
Apple Pay is a revolution and the MCX retailers know it. Right now they are negotiating their place in the future of retail.
Omnichannel payments is all about the consumer. Everything happens around his or her habits. The retailer doesn’t get to dictate what the consumer wants, when it wants it and how the product should be bought.
If you look at Amazon you’ll find that it’s just a very very large store. But is it? In fact, Amazon is a marketplace. An instrument for the consumer to choose from lots and lots of products (240 million in Amazon US), sold by lots of merchants.
At the core you’ll find the consumer account. The preferences, the brand loyalty to Amazon, the saved shipping addresses and others. For each Amazon user, Amazon is a PERSONAL deal.
But for now, those products can only by accessed through Amazon’s infrastructure. The big thing that Apple Pay does is putting your personal account for millions of products and hundreds of merchants where it should be: in your pocket.
By doing this Apple will take out Amazon’s and the likes most precious asset and liberalize it: The personal account. Walmart and the likes have misinterpreted Apple’s message. Their product is not an enemy: it’s the best tool they have right now against Amazon.
Consumers love the fact that Apple Pay feels easy to use and most important – secure. It works online, offline, on the iPhone and on the Apple Watch.
Unlike Apple Pay, previous products were introduced as standalone products, not as part of an ecosystem and seemingly without any clear strategy and vision for the future.
Google failed and now it’s trying again with a new Google Wallet.
PayPal has maybe missed its opportunity to become what Apple Pay will probably be. Internal company battles and unclear strategy made the company lose sight of how the market is shifting.
Amazon too launched Amazon Payments but its focus on online payments makes it a NOW product. It really isn’t future proof.
Apple Pay works great and it works great for a large audience. Apple has a huge user base and this user base trusts Apple. They use the company products and are willing to allow the company to store their credit cards. In turn, Apple has not let them down: Apple Pay just works.
Say you’re running an online store. Chances are you are using or plan on using Google Analytics. It’s free, it’s popular and there are tons of info out there to help you get started and optimize your sales stream.
But there are downsides too. First one – Google already knows a lot about you and your customers. You might want to keep some things discreet, right?
Second – Google Analytics is an one-size-fits-all type of product. Sure, it has plenty of features but chances are you’re likely to get lost in some of those features. Even if you don’t get lost, you’re likely to spend a lot of time digging through somewhat useless data, while at the same time, missing out on very important bits of information.
Third – real time reporting is pretty limited, if you’re running the free version. Once you get over 10 million views you’ll have to switch to the paid version, costing you north of $150 000. But then you can also try some more advanced reporting tools.
Of course, there are plenty of traffic analytics tools out there. Some have really great interfaces and features. But as an online shop owner or manager, you have to look at what works best for your store. Have a look below:
Mixpanel is great choice for small and mid-sized business that sell. Whether we’re talking about an online retailer, a hotel selling reservations or an iPhone game developer selling game upgrades - it is a great tool.
Even the way Mixpanel tracks actions and charges users is a great fit for online retailers. Ecommerce sites don’t really need too much intel on page views. What really matter are actions – the number of times sometimes has clicked the “buy” button, the number of times users download a brochure or the number of Google Ad visitors that turn into customers.
Mixpanel calls these actions data points, and this is a great news for startups and mid-sized businesses.
It’s tailored around five basic functions:
Pricing is free for less than 25 000 data points and it can go up to $2000 / month, for companies with more than 20 million data points.
GoSquared is a great piece of engineering and with its redesigned interface – easy to use. It serves over 40k businesses and it has a special area developed strictly for ecommerce owners.
When it comes to ecommerce, GoSquared packs a lot of power in a simple interface. Just like most other applications on this list, it puts a strong emphasis on the targeting users as potential customers and tracking their actions and behavior.
The Metrics work toward providing clear insights on how revenue is doing. The analytics tool provides info on social media influence on sales and data on best performing products.
One really useful set of tools is what GoSquared calls Predictive Analytics. Previously discussed on Netonomy.NET, predictive analytics can mix past and present data to determine possible outcomes in the future. It can be used to predict traffic, sales or best selling products, to name a few.
GoSquared also mentions their ability to send Differentiated Reports, based on specific team member’s needs. One for the CEO, one for the marketing team, one for the … well, you get the idea.
But if there is something that really sets GoSquared apart – this is the Developer API. Using this, developers can build truly dynamic online stores, that respond to customer behavior and profile. From info on previous purchases, location, language and others, online stores can be set to respond to specific customer needs.
Pricing can be configured here and starts at $32 / mo for 100k pageviews and 100 transactions. It can go north of $640 / mo for more than 10 million pageviews and more than 10k transactions. You can test the application in a 14 days trial.
Foxmetrics has some nifty features when it comes to ecommerce and online retail related options. It is light and easy to set up, it works on both web and the mobile and it is focused on helping you increase conversions.
Although Foxmetrics is not 100% focused on ecommerce related (they also provide support for online publishers), it does have some great features you can use:
Although Foxmetrics does not provide a free option, it does provide a 14 day trial to test the features. Plans range from $50 to $120 per month and beyond, for enterprise users. However, as an ecommerce user, you’ll be stuck with the $120 plan.
Woopra is a great way to understand your customer and their history browsing your store. You’ll be able to get behavioral insights from customers, run advanced or preset analytics reports.
By tapping into Woopra’s Funnel reporting section you can discover bottlenecks in the conversion path.
The product also promises a good segmentation on best performing customer groups and even build segments based on funnels.
The pricing starts with a free version that allows 30 000 actions (similar to Mixpanel’s data points). The small business plans range between $79.95 and $1199.95/mo.
The promise KISSmetrics makes is that all your data will be connected to real people, with real actions. Once setup, you can see where people are, what and why they buy your products and in some unfortunate cases, why they don’t.
Features include funnels, cohorts (groups with similar interests), revenue in real time and the metrics you’re familiar from GA. The things that really set the product apart is the data export feature for further analysis and its A/B testing options, both a great fit for customer profiling.
Pricing for the KISSmetrics product starts at $150/mo for up to 500 000 events and goes up to $500/mo, when your webstore reaches more than 1 million events. Once you pass the upper threshold, just like all others, you get to negotiate your pricing.
Ebay subsidiary PayPal is dead serious about taking on a $10 trillion market: the Multichannel Payments Market. To do so it will have to prove its worthiness against older companies, especially in offline commerce.
With more than 140 million registered users already, PayPal has the sweetest spot in the online payments today. Its acquisition of global payments company Braintree secured an additional 35 million registered users. As President David Marcus puts it – this is a part of an effort to redefine money and payments into what he calls “Money 3.0″ – a new way of looking at payments and how customers use them.
PayPal owner-company Ebay is at the front of what some would call a commerce revolution led by technology. Its three main branches (The Marketplaces, Ebay Enterprise and PayPal) all work together in this changing landscape.
The Marketplaces (including Ebay.com, Shopping.com and Rent.com) enable C2C Commerce, while Ebay Enterprise caters end-to-end multichannel commerce technology. Ebay Enterprise is the tech, operational management and marketing vendor for the likes of Toys’R’Us, Radioshack, Sony ant many others.
Between these two, the payment processing subsidiary PayPal leads the way in online payments. The company is Ebay’s most promising subsidiary, growing at 20% in 2013. As of 2011, it decided to go offline, allowing customers to handle their money, cards and PayPal wallets in one place.
To increase offline usage, PayPal now offers point-of-sale solutions, mostly targeted at the new tablet-based counters. Store owners can easily implement its apps and start charging right away.
Among its benefits for store-owners, Paypal lists security, quick implementation and an all-in-one approach to accepting payments, scanning barcodes, tracking inventory and sending invoices.
Customers willing to take their PayPal Wallet to an offline store account can pay by swiping their PayPal paycard, using their account or by paying online and picking up in store. Having a larger pool of companies accepting PayPal payments allows the company to securely handle all transactions, allow customers to receive loyalty points and handle all personal information.
Since Ebay purchased PayPal, both companies listed a successful increase in revenue. Ebay powered PayPal’s adoption to its marketplace users and in turn PayPal grew up to become one of Ebay’s most profitable subsidiaries, amounting to 41% of total revenue in 2013.
With the help from Ebay, PayPal grew from $600 million in mobile payments to $27 billion in just three years. The figures are posted on the 2014 annual shareholder meeting website, in response to Carl Icahn’s demand to spin PayPal off into a separate company.
Carl Icahn, one of the most notorious corporate raiders in the tech industry, demanded PayPal to be split into a separate company and become listed on its on. The board of directors fought his demands showing that even though the company is open to changes in the future, right now the two are working better together.
Luck would have it that shareholders reached an agreement to keep the companies together and handle the incoming commerce revolution as a whole.
“[…] we have moved aggressively to leverage PayPal’s integration with eBay to expand PayPal’s reach to millions of online retailers and to offline transactions. PayPal remains one of the fastest growing elements of the company – which helps explain why others are targeting the payments business but are far behind PayPal.”
John Donahue, Ebay CEO. Source.
Advances in technology have been revolutionizing the way businesses are conducted. They are also reshaping the landscape on how companies interact with customers. This is a phenomenon that is clearly observed in e-commerce. E-commerce is not only reducing costs but is also increasing efficiency and expanding possible revenues.
Because the Internet is facilitating interaction, it is now possible to instantly and easily understand online customers. A business need not spend much on doing traditional market research. Here are four easy, fast, and less costly ways to better understand the thoughts, behavior, and attitude of online consumers.
Online surveys or polls are designed to determine thoughts and behaviors of online customers. There are many of such studies that cover your sector or industry. If you prefer results and findings that are more specific to your business, you may commission or conduct the surveys. It can be as simple as asking your customers to fill out simple survey forms online. You may also use the free online survey services that are available across the Internet. Survey results can give you an idea of how your online customers think and feel about your business.
To date, there are various Web analytics tools that facilitate better understanding of online consumers. The most common are analytics about specific keywords of key phrases that are most commonly used by consumers when using search engines for finding information or products they need. You can use the information to optimize the content of your own online site so that you can take advantage of opportunities brought about by higher search engine rankings.
You can find out how consumers think about products and services. Testimonials posted by businesses through their own sites may not be reliable as those could be biased. The best and most credible testimonials come from actual consumers who ventilate and air their rants and raves through online forums, discussion boards, and reviews. Check those out to find consumers’ actual opinions about businesses and products.
This option can be quite risky and costly. It is advisable to check out the first three ways enumerated before finally testing the market. You may launch a small-scale product or service launch to determine if online consumers are really ready and are open to try out innovations and new offerings. Actual sales can be the best indication of what consumers really think. Testing the market can lead to two types of decisions: first to pursue or go on with your business activity and second, to stop what you are doing because the market is not yet receptive.
Author: Richard Fisher
About the author:
Richard has been involved in the online marketing industry for several years. After spending time working on user experience optimisation, Richard is now a strategist at Infinity Technologies, one of Australia’s leading ecommerce digital agency.
Did you know that stores use smartphone WiFi and Bluetooth connections to track your movement? Turns out that’s kind of a growing trend right now. Showrooming is ever on the rise so traditional retailers need to act on understanding customers better. Tracking phones is one way to do it.
There are some companies out there (their number increasing) that provide tracking technologies. One of them is Shopper Trak and I had the pleasure of meeting one of their representatives this week. The company uses a combination of WiFi and Bluetooth signal detection to count, profile and report on customer behavior. How do they that? By registering the smartphone’s MAC address.
What are MAC addresses? Good thing you asked. These are unique identifiers for your smartphone. Kinda like your IP, except they don’t change. That’s one great feature if you’re going to track returning customers. Of course – all of these informations are anonymized and encrypted, as Bill McCarthy of Shopper Trak convincingly told me a couple when I had the pleasure of chatting with him.
Working in tech for some time now – i’m not really so sure about anonymous data but the technology is pretty interesting and its applications can work wonders for multichannel retailers.
Being a online-first type of guy, I was surprised to see the kind of tracking you get with Google Analytics in brick and mortar stores. The first question that popped into my mind was – “Can you compare store tracking data with online analytics data?”. Apparently most of the companies that provide such a service do provide a form of data export that can be used to understand online-offline behavior.
The second question was “Isn’t this thing a little intrusive?”. Probably.
Last year Nordstrom decided to find out more about its brick-and-mortar store shoppers. They thought they can get valuable intel by tracking who comes in the shop, which products customers buy more, what’s the return rate and others. You know – the kind of stuff all online shops track so they can improve customer experience and increase sales. Except they did this by tracking customer’s smartphones.
But Nordstrom did something that online stores don’t usually do – they posted a sign announcing shoppers they were being tracked. And the shoppers were not happy at all. You can see in the image on the right the kind of feedback they received.
Fearing increasing frustration with their tactics, Nordstrom discontinued the program.
Atlanta based Brickstream uses a 2d /3d type of cameras to track shoppers inside stores, reporting on queue length and customers behavior.
Brickstream uses path tracking to understand and report customer routes. It also uses height splitting in order to differentiate between different demographics (male, female, child) and 3D technologies to “see behind obstacles”.
Their video intel is, of course, pretty efficient. Used together with mobile tracking- even more so. It is also a little scary for customers inclined to privacy concerns.
Are you are one of those customers? Than you may want to scan through info on the 8 major players in this growing market, Brickstream being one of them:
In-store traffic traffic tracking is an industry lead by these 8 companies, with other minor companies quickly growing. The list is provided by “Future of Privacy”, a think tank based in Washington DC, focused on “advancing responsible data practices”.
One of the younger companies providing in-store analytics, Nomi, which recently received a $10 million funding, mentions the length they go to in order to insure customer privacy. The privacy principles they list on their website are:
So everything is cool right? Well…
So far there have certainly been some concerns regarding privacy. Retailers usually addressed them as quick as possible. And when that was not the case – customers could just turn off their WiFi and Bluetooth connection so they won’t be tracked.
As mentioned earlier the technology only works when there is some type of WiFi or Btooth connection that beacons can track. Without it – smartphones are basically invisible. But than Apple thought – hey, let’s change that.
One of the often left out features when it comes to Apple’s new iOS 7 is the iBeacon. The iBeacon is Apple’s response to NFC (near field communication). When an iOS 7 device comes within range with an iBeacon it emits a BLE (Bluetooth Low Energy) response. It becomes trackable even when the above mentioned connections are turned off.
And Apple is really committed to using it:
The technology laid dormant during the past months since it was announced. Now Apple will instal iBeacon transmitters in its stores. When walking past such a device, iOS users will be notified of additional information they can read and save on their mobile devices.
The technology will offer in-store analytics to Apple, push ads and info to customers, assist in queue lines at the genius bar and of course help with purchases and payments.
Numerous other possible uses come to mind, mostly location based enhancements… Things like door opening for the blind, customized ads, personalized offers and many others will act as an usher in a new age of technology.
This new age, however, does not leave place for privacy.
The second biggest online retailer in the world, Staples.com, made $24.4 billion last year. Apparently the office supplies online market is growing steadily and attracting unwanted attention from Amazon, while its brick-and-mortar counterpart is struggling with recession. Below we’ll have a look at the market overview, main sales drivers, top retailers and marketing.
Let’s start with:
The US market, as well as the global market for office supplies is heading to a small rebound, mostly due to a small decrease in demand and a larger decrease in physical store space.
For example, leader Staples.com, is planning on closing 40 underperforming stores this year (out of a total of 1886 stores in the US and Canada), 10 more than previously announced. Challengers Office Max and Office Depot, some of those late at the ecommerce party, have been blown even harder by reduced sales, as well as online retailers increased competition. The two companies are planning on closing 175 and 150 stores, respectively.
On the other hand online and multichannel stores are doing great and Staples announced a new type of smaller stores that engage visitors with interactive kiosks and staff aimed at driving more sales to staples.com.
Staples.com is embracing showrooming and engaging customers offline to drive them to buy online. This means that the company is expecting a decrease in offline buying interest. It also means that the age of the behemoth stores is over and now customers will be expecting offline experience that leads them to buy online.
Office Depot also shifted focus towards a multichannel approach. Monica Luechtefeld, who’s been with Office Depot for the past 17 years restructured marketing teams into a single department, to offer a 360 degrees approach, focused on the customer.
“Instead of looking at you as an online shopper, it’s an attempt to think of you as the customer of Office Depot. The more we look at you horizontally and look at the multiple ways you engage us and the multiple tools that you use to buy − one day a store, one day online, one day a call center − the better we’ll be able to serve you.” said Luechtefeld.
In order to counterbalance Staples’ and Amazon’s competition, Office Depot is also moving into a merger with Office Max, as WSJ reports. The two companies worth $1.3 billion (Office Depot) and $933 million (Office Max) will probably be trading stocks. With almost 60 000 employees and $17.5 billion in combined sales, the two companies will decrease costs and increase market share, if the deal pulls through. Office Depot also tried a merger with Staples in 1997, but the deal was shut down by the U.S. Federal Trade Commission.
Until the merger goes through the US market is shared by Staples (39% market share, also the largest office supplies company in the world), Office Depot (22%), Office Max (13.5%). These companies control 74.5% of the market so they are really setting the trends, and the trends are:
Office supplies are some of the most sought products online, up there with computer hardware and consumer electronics. The online market for office supplies totals $22.8 in US alone but not all office supplies are created equal. When purchasing online customers spend their money on:
Among the office supplies the ones that stand out are the ink and toner cartridge supplies. For office supplies retailers the fact that these product sales decreased in the past year meant a hard blow to the market cap.
Cartridge supplies make up for a large part of office supplies retailers’ margin. In 2011 the ink market alone was worth $14 billion globally so it’s safe to say that the market is here to stay, although growth has suffered due to global recession. New developments in ink manufacturing, online retailing and customer acquisition have changed the landscape but printer ink is still one of the most needed and expensive products on the planet.
As for the vendors, a recent study by Research and Markets shows top vendors as Brother Industries Ltd., Cannon Inc., Hewlett-Packard Co., and Seiko Epson Corp.
The study also shows that among the key growth drivers there is an increase in demand for cheap, high-speed continuous-feed inkjet printers. Recent changes in technology are making possible for buyers to expect reasonably priced color printing.
Although the overall cartridge supplies market is not doing great, thus affecting leaders like Staples, Office Depot and Office Max, a few trends have really picked up:
As such – companies looking into expanding ink and toner sales need to seriously look into:
When it comes to customers, the main targets a office supply retailer has are, according to IBIS World:
When it comes to marketing and customer care, it seems that most office supplies retailers are moving towards a multichannel approach as to leverage the existing stores and maximize profit. Customer care and retention, location based marketing, mobile marketing, direct marketing and social media also seem to be playing a big role when it comes to customer acquisition and retention.
A very important part in Staples.com customer care is their Staples Rewards program. Every purchase offers customers 5% back in online/offline purchases as well as free shipping. Customers can redeem rewards when buying from a physical store, online or on their mobile device, thus ensuring a multichannel experience.
As a very large chunk of the market are households, usually families with one or more children, Staples.com now offers a program targeted at parents and teachers. Parents can offer a teacher of their choice a chance to earn as much as $2000 a year, in reward points.
Office Max also offers a loyalty program – MaxPerks – that allows customers to receive 5% off every purchase in rewards, rewards on cartridge recycling, and other bonus rewards.
Office supplies retailers use mobile to leverage increased mobile commerce traffic, drive foot traffic in store, helping customers find product information and help them check rewards quickly.
When it comes to mobile the largest player on the market, Staples.com is using both a scaled-down mobile version of the site, as well as native apps on iOS and Android.
The mobile experience is extremely easy to use and focuses on:
Office Depot also offers a mobile version, as well as iOS / Android native app but it features more information regarding products and a clearly visible “ink finder” section.
It is clear that both companies are really working on providing their customers with a great mobile experience and help them find the best deals and the right products quickly.
Staples.com has really set a target at providing the best mobile approach it can and Brian Tilzer, VP of Global Ecommerce declared:
“More and more shoppers are turning to their mobile devices as a way to research and shop whenever and wherever they want. Staples is thinking ahead and anticipating customers’ needs, providing an offering that not only serves as an m-commerce tool but listens to, and solves, customers’ pain points.”
When it comes to social media there is no really big winner and tactics and strategies are really similar. Some overall trends seem to be more prevalent though:
Traditionally direct marketing has been one of the best marketing and sales channels before ecommerce started getting traction. Now companies need to face a world where the customer expects real-time, personalized offers.
Amazon is closing in with its beta Amazon Supply, an online store targeting office and home supplies. As such, Staples needed to find a way to fight fire with fire and acquired Runa, a California-based software company that specializes in personalized shopping. The company analyzes browsing history, previous purchases to create a virtual profile for the customer and predict what products would he be interested in.
Profiling is clearly the key to direct marketing as customers are looking into personalized offers and expect companies to provide them with it.
If you’ve read so far, let’s just assume you’ve probably missed a couple of ideas along the way so let’s just wrap this report with the most important take aways:
The holidays are coming and for most online retailers ’tis the season to be jolly. With shoppers starting their Christmas purchases as early as september, the holidays season starts earlier for those that really want to take advantage of this opportunity.
Most retailers expect 20-40% of their yearly sales to happen during holidays. Here are some things you should keep in check to insure optimum online store performance and increased sales:
It would be quite unfortunate if your sales would increase tenfold and yet you could not ship in time for everyone to get their presents. Say Little Timmy was due to receive a brand new toy but you can only deliver on the 27th of December. Too late.
Even worse – say you have one bestseller your pushing out there on the market and demand is so big that you’re left with no stocks after Black Friday?
These things and many others can happen and can leave a big impression on your sales, profits and customer retention so make sure you check your supply chain for any problems. Here is a brief list you should have in mind when preparing for the holidays:
Have a look at last year’s analytics and see what products were most likely to convert users into buyers. Round up the total sales per product and increase that figure so you make sure you’ll be ready to supply the demand.
After you’ve optimized your inventory – make sure the supplier won’t bail out on you if you’ll still run out of stock. You never know when you’ll get your big hit.
Everyone will expect their purchases delivered by the 25th of December. If you can’t fulfill that – you’re likely to lose a lot of customers. As such – make sure your shipping supplier is ready to deliver on time. Push for shorter delivery terms. After you’re done with that you should also…
Remember – the objective is fast delivery. The fact that the shipping supplier delivers the next day may be useless if it takes you 5 days to pick (or order) and pack an order.
The Holidays will likely increase activity in the warehouse so make sure your fulfillment team is ready to handle a lot more work than it’s used to. If not, scale up temporarily. Can’t scale up? You can outsource your fulfillment operations to a third party logistics (TPL) supplier such as Fulfillment by Amazon.
Of course – that doesn’t mean you have to post Santa Claus pictures, snowflakes and Christmas Carols on your Facebook page but being prepared long before your competition can work out miracles. Here are some things you should get ready for, things that usually take quite a lot of time to prepare:
Great products need less marketing and bundles are great ways to insure your customer feels he’s getting more for the buck. Your best-selling products are usually bought with other smaller accessories. You can find out which are these by having a look at last year’s purchases and analytics.
Have a look at what people bought and how they bought it. Try to look for patterns in these purchases but don’t stop there. If you see that customers bought an Xbox, two extra controllers (one to play with and one to replace the one they’ve previously smashed against the wall) and the latest GTA – make it a bundle. Go beyond that and bundle up for a Playstation gift.
Remember that ” ’tis the season to be happy ” part at the beginning? Well – turns out that’s kind of a lie. People feel depressed and anxious during holidays. Among the reasons – media overload, crowded places and a pressure to find appropriate gifts for those they hold dear.
Of course you can’t shut down the media overload but an online store is a great place to avoid the crowd and a gift card can be the perfect gift for anyone. Have a look at what customers are preparing to buy as Christmas gifts:
• Gift Cards: 59%
• Electronics (ex: TV, Computer, iPad/Apple products): 38%
• Apparel: 35%
Gift cards are not a maybe – they’re a must.
How will you get customers to your site? Of course – they are buying, but are they buying from YOU? If you’ve planned to increase your sales during the Holidays you can be sure you’re not the only one. However – you can improve your results by:
Your Black Friday program will likely increase traffic by more than 800% . Most online retailers have an larger increase and the trend just gets better by the year. That means that in order to have your store open during the surge in traffic you should:
This short guide covers some of the most important basics. If these areas are fully covered – you should do fine during the holidays but make sure you come back to Netonomy.NET for more information.
Pinterest has been growing steadily for the past year and some think of it as a possible competitor to Facebook’s social media turf. That means they do very well in the growth department.
Money isn’t a problem either (at least not for now), as Pinterest is slowly digging through $200 million in funding, but it still has to come up with a monetizing plan.
Last year’s try with Skimlinks probably looked great in a board meeting pitch but it caused quite a stir when word got out that Pinterest was changing it’s users’ links into Skimlinks affiliate leads. The company was accused of making money of its user generated content (which everyone understood, as … you know … servers cost money), without their consent or an explicit disclosure (which seemed to be not so easy to understand).
That was definitely a failed attempt at monetizing Pinterest’s growing userbase and they seemed to have learnt a lot from that. In the post announcing the new feature CEO Ben Silbermann promises ads will be:
- “Tasteful. No flashy banners or pop-up ads.
- Transparent. We’ll always let you know if someone paid for what you see, or where you see it.
- Relevant. These pins should be about stuff you’re actually interested in, like a delicious recipe, or a jacket that’s your style.
- Improved based on your feedback. Keep letting us know what you think, and we’ll keep working to make things better.”
Pinterest is first of all popular. Not just in the US. All over the world. Users devote time into building, curating and browsing through handpicked photos of products, dreamy locations, fashion photos and many many others. Most things people collect and see pinned onto their boards do have one thing in common – they can be bought. And boy does it show:
All in all – Pinterest is the biggest social player when it comes driving relevant (and by that I mean paying) traffic to online stores.Yet not all industries are equal – some will benefit more than others when using Pinterest Ads.
You are probably guessing the leading industry but first here are the runners-up:
Travel pins account for only 2.5% off all pins but don’t let that small percent fool you. Pins get shared and in an industry where everything is judged by the numbers it helps improving your margin with a little thing called emotion.
Pinterest is great at instilling positive emotions and shifting purchase options towards recommended / shared locations. While it it was hardly worth the trouble to orchestrate a social media campaign that gets some kind of traffic rolling now everything will get easier with sponsored pins.
Home is the most popular category on Pinterest, with 17.2% of all pins categorized as home items. Not surprisingly either: 80% of all Pinterest users are women, more inclined to look into home lifestyle items and 50% of them have kids.
With an annual household income of over $100 000 or more for 28.1 % of Pinterest users, you can be sure that this is the place where you can market home related items. Brands such as Crane & Canopy actively engage Pinterest users and draw new products inspiration from the things they see trending on the social network.
The big winner is of course Fashion, for both men and women. When it comes to style, beauty and clothing, 11.7% of all pins are pinned under Fashion and those pins usually come from popular users, influencers and fashion media outlets and bloggers.
Think the previous numbers are pinteresting? Well get this – Sephora’s Pinterest users spend 15 times more than their Facebook counterparts.
Sephora’s Julie Bernstein is unforgiving when it comes to Pinterest vs Facebook:
“The reality is that when you’re in the Pinterest mindset, you’re actually interested in acquiring items, which is not what people go to Facebook for,” Bornstein said. “Facebook continues to be just a great customer interaction tool that gives us the real-time ability to dialog with our customer; it’s a big customer-service venue for us.”
There’s no denying that Pinterest is here to stay when it comes to online retail. It probably helps to be pinning even if you’re not dealing into Fashion, Home or Travel as pinners are buyers. But if you are selling these products then Pinterest Ads, a great addition to your Pinterest marketing policy, will probably bring a great deal of new customers to your business.
Unless you’ve been living under a rock for the past 5 years you’ve probably heard about these two buzz-words – “mobile” and “mcommerce” (or mobile commerce). Usually retailers use them together because hey – that’s what retailers do – sell stuff to people. Now that a new channel is here let’s just go ahead and grab it. Well – maybe that’s not the best way to go.
You see – people tend to think of their mobile phone as something quite personal. It’s always there in their hands or pockets, it holds their most private conversations and information, it’s there when they go to sleep, it’s there when they go to bed.
Not many think in the same terms about retailers or shopping. Shopping is less of an addiction (except for those shoes, ladies) and more of a mix between (1) necessity, (2) convenience and (3) marketing induced propensity to buy. Nothing really personal there so don’t expect your customers to download your app, browse the products and buy after. Oh, and mean while, if you do expect that – don’t push notifications unless they actually ask for it.
Say you’ve built an online store for your brick-and-mortar operations a couple of years ago. By now you’ve probably seen a healthy increase in sales and you’re quite confident in online retailing overall so you decide to invest in a mobile application to handle mobile users’ needs. You decide that the logical thing to do is build an mobile app to showcase your products and let your users buy from that app.
That’s what usually retailers do but not what users want – remember the personal attachment people have to their phones?
Here’s a couple of things you can do right on your online store to serve mobile shoppers (which, by the way – are on the rise as you can see here):
Now that you’ve covered the basics, while not boring or forcing your users to adapt to your store packed a native application, let’s make your mobile experience personal:
The smartphone is nothing if not useful. You can use it as a music player, email reader, browser, game console and dozens of other things. Your app should be useful. Here are a couple of examples as how companies made their apps useful to the targeted audience and changed the way customers thought of them:
Alright – Uber is not actually a retailer but we need not think in terms of black and white. What Uber handles extremely well is a customer need and delivers to that need as well as it’s expected. Note that its mobile approach is just a means to an end: customer satisfaction.
Amazon handles a huge inventory. If there’s any product out there that has a barcode attached to it, chances are you can buy it on Amazon with one click. The company makes that easy with its barcode scanning app – find a product, check the barcode and find it on Amazon. Easy and useful.
Talk about fun…
Let’s just assume that not all shoppers are inclined to buy online or rather more – some of them need to find a product quickly, in their nearby area. The want the product now and are willing to drive to the local store to buy it. Here comes Shop Nearby, by The Find.
The application makes it easy for you to find a certain product in your close area or browse through all shops nearby.
Last but not least. Make it personal. It has to be personal because mobile devices are personal items and apps should be personal also.
Gilt understood this when they launched …
“Our goal is to make it even easier for members to discover products they love while they are on the go” said Steve Jacobs, Chief Information Officer at Gilt.com
Gilt.com is, as you probably know, one of the largest fashion flash sales retailers online. With a huge database filled with customer information and purchase history they can make their approach to sales chic and personal again.
When Gilt.com was launched it served as a private venue for brands to unload their unsold inventory. It used to be private and quite a little secret for Gilt’s members. Once the store got bigger and bigger they found they were unable to cope with users need for short-stock brand clothing. Even more – they couldn’t handle selling premium brands discreetly, something their suppliers were not really happy with.
Now that the personalized shopping has been launched, users can get special (and by that I do mean special) deals, based on their purchase history.
What’s not to love about a store that handles a one-on-one relationship with millions of customers?
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