Actually I will not spam you and keep your personal data secure
I have recently stumbled across a really useful app called Hotjar. I’ve had some time to test it and get some insights on how it’s working so I’ve decided to take the next rational step: do a Hotjar review. To get an overview, you can use the app to get a better understanding of how users interact with your website and receive feedback from them. I liked the software so here are some quick thoughts about the usage. If you find it useful, register here and you can start using it.
So here’s a bit about the features: probably the most useful one is screen recording. Basically Hotjar tracks and records user interaction with your website. Afterwards you can watch these interactions in the screen recordings section. You will spend some quality time there, just you and the sexy recordings.
It’s basically very useful and I’ve thought about a way to track behaviors like these for a long time. Until I’ve tried Hotjar, I was not really feeling the other apps.
But it’s not just the screen recordings. Hotjar also offers a neat way of studying heatmaps for one or more web properties. I know – lots of other apps do it but Hotjar does that plus a ton of other things, minus the headaches associated with complicated solutions.
Funnels are easy to set up and track (or so I’ve heard because I still use other analytics software for this but I will definitely give it a try).
Long story short: you can certainly give it a try. The free version offers quite a lot of options and is really no strings attached.
For a very long time the store associate has been at the heart of brick and mortar stores. Store associates would greet customers, respond to queries, help find products and generally help customers with their purchases.
However, the emergence of digital tools and especially smartphones has rendered store associates almost obsolete.
In a recent study by MillwardBrown that focused on customers purchasing athletic footwear we can see just how useful a store associate is these days.
Of those that chose to shop in store, only 12% listed the sales person as one of the reason to purchase offline. Most (88%) chose to try on the product before purchasing.
It's not just sports shoes. A study by Deloitte Digital shows that customers would rather receive help from an interactive kiosk or their own smartphone rather than a store associate.
As you can see above the willingness to use a smartphone rather than discuss with a sales associate is almost double. Even an impersonal unmanned device such as an interactive kiosk would fare better than a store associate.
So if you were to combine this data with the fact that most of the sales in global retail will be influenced by digital by 2017 the conclusion is simple. The store associate is a soon to be dead job. If you were planning a career in this area, you'd better jump ship.
Is Brick and Mortar commerce dead? Absolutely not. Is eCommerce the most important sales channel in the future? Irrelevant. Neither online or offline sales really matter in the big picture. What matters is how customers shop and how much has digital changed the way retailers do business.
A recent Deloitte study outlines just how much digital is impacting retail.
Over 36% of 2013 overall sales in US have been influenced by digital and the trend continues to grow. By 2017 over 80% of all retail sales will be influenced by digital.
In terms of cash that places the digital influence in the real of trillions of dollars. In US alone, where the study was performed, that meant $1.1 trillion in sales were influenced by digital. If we were to extend this figure to the global retail sales in 2017 as estimated by eMarketer that amounts to a whoopping … wait for it …
However debatable this figure may be, the digital influence is something that is truly amazing and outright revolutionary.
But that's not all. Don't think digital influence means ecommerce. Definitely not. Two facts stand out in the Deloitte study:
Smartphones are the main cause in the increased digital influence. Mobile phones now account for $593 billion in sales (19% of the 36% of all sales influenced by digital).
What's even more interesting is that users are not more mobile-savvy. Only 25% of the increase in smartphone usage is caused by an increase in comfort and sophistication in smartphone usage. 75% of the increase in smartphone usage is due to an increased adoption.
Long story short: there are more smartphones, not smarter users.
94% of all retail sales still happen in the confines of a physical store. Wait, what?
It seems that what's causing retailers problems is failure to engage customers on all channels. Customers are pre-buying (shopping) on ecommerce sites but they pick-up, try on and eventually buy a lot of things in the physical store.
The trick here is getting the big picture right. Use different customer journey points and engage digitally in a relevant way. Customers may shop online and get an assortment ready but they want to get to that assortment in the physical store and than buy. Just placing discounts in the mobile app doesn't work. Each part in the shopping experience has to be customized to that particular medium and need.
In conclusion: digital is not ecommerce and digital influence is definitely not limited to the online store. Those who fail to connect the dots and engage their customers on all channels will not be a part of tomorrow's retail.
As online and offline commerce are getting closer to each other and customers schedules are getting more and more crowded, pick up lockers seem to become more useful and popular.
They are versatile, easy to use and something customers need from omnichannel retailers. So let’s dig in and see how they work and who should use them.
First off – what is a pick up locker? Simply put it is an area of lockers where retailers can drop off merchandise and customers can pick it up. Amazon has been a pioneer in this field, with Amazon Lockers opening up the gates to a new type of fulfillment.
The pick up lockers work by assigning a specific location to packages and sending pick up codes to customers. The customers can than go to their designated pick up location, enter the security code and grab their packages.
After Amazon has built their first experimental pick up lockers, others soon followed.
Some of those that developed their own systems of pick up (and ship) lockers are 3PL companies. For example FedEx and UPS have developed quite advanced pick up and drop off locations. UPS has named theirs “Access Points” and they’re building a network able to sustain growing demand.
FedEx has developed a network of “Ship&Get Self Service Lockers“. With their lockers one can drop off items for shipment or receive packages.
Both are growing really fast and soon others will follow suit. Even startups have ventured in this area with some highlights being Swapbox, an Y Combinator startup and Bufferbox, a company that was recently acquired by Google.
So yes, they are popular but how do they work, especially from a retailer point of view?
One very specific use case for the pick-up locker system would be large retail chains. For example Walmart announced last year their Grab & Go lockers following their Site to Store Self Service Lockers experiment.
Apart from the internal fulfillment challenges, retailers need to focus on some key aspects regarding the development and implementation of such pick up locker systems:
For obvious reasons there needs to be a secure access to shipped goods. To do so each drop off will have to issue a security code that can be decrypted and accessed with the private code the customer will receive.
The systems will also have to have fall-back security systems such as video surveillance and locking systems in case of hacking attempts (there will be some).
Security code should work online but also have a fall-back local solution that can work in case internet connection is off.
The pick-up locker system works with other fulfillment operations and will have to input status data directly into TMS (transport management systems) so shipping personnel could be directed to the correct pick up locker area and the specific pick up locker.
As packages differ in size, specific information regarding the type of lockers that are available should be available in real time so packages are stored correctly.
So far most pick up lockers use alphanumeric codes to help users get accustomed to picking up their packages without any hassle. But these codes pose threats in terms of security. While these codes can always be an option and can be easily sent to any device, with smartphones and smartphone apps on the rise, some other solutions may work even better.
One such option would be QR codes embedded in the retailer’s mobile application. The codes can be generated on the fly based on a secured algorithm that neither exposes the code and can also work within the application the customer already uses, thus improving loyalty.
With so many developing their own pick-up locker systems, a connectivity protocol should become the norm. With such a protocol FedEx could ship to either Amazon, Walmart or even UPS lockers for example, improving cross-retailer experience and creating economies of scale.
That being said, the development of pick-up locker systems is obviously a bit more complex than these few paragraphs but I wanted to give you a starting point and explore some of the challenges.
The Beauty and Cosmetics category is one of the fastest moving digital commerce areas. It is a highly competitive and innovative market with large brands quickly adopting digital models and challengers innovating their way to the top.
The emergence of the ecommerce sales channel for beauty brands has seen a long wait. The time has come for beauty retailers to align with the customer’s demand and specific requests. For example, a recent AT Kearney study showed 28 percent of online shoppers use the digital media to get informed on products. They carry this information in stores where they are sometimes more knowledgeable than the store assistants, which may pose a real challenge for beauty brands.
The AT Kearney study shows that only 16% of all online shoppers are online enthusiasts. The rest either use the digital media for information or for shopping for products they are already familiar with:
Online shoppers are more inclined to shop for particular products, such as skin, personal and hair care. Products such as beauty tools and nail care are less likely to be purchased online, unless is a very specific product, one the customer is already familiar with:
In this post we’ll get a glimpse of the eight most important type of beauty brands that engage their users through digital commerce (also). We’ll have a look at a selection of global champions with different backgrounds and different models. From digital pure-plays to established brick and mortar brands, let’s have a look at some of the most interesting approaches to beauty and cosmetics digital retailing:
As expected, Amazon leads the way when it comes to online beauty retailing also. Customers are delighted to almost 2 million products, including luxury brands.
Its Beauty category is the go-to place for most of online enthusiastic shoppers, where Amazon is available. And with Amazon’s shipment policies, that’s basically everywhere.
Amazon’s secret weapon lies in its free-shipping policy (for orders above 25$), a great motivator for online shoppers and a better threshold than challengers Sephora and Beauty.com.
Another great asset Amazon will use to gather shoppers around its beauty retailing section is the fact that more customers use Amazon (30%) than Google when doing online product research.
Sephora is generally seen as the actual leader in the digital beauty commerce. Though it lacks Amazon’s ecommerce strength, the company is part of the largest
luxury high quality goods (ahem…ahem) group, LVMH, packing a lot of beauty retailing know-how.
The company has developed a great omnichannel model that focuses on mobile as a bridge between online and offline.
One of the best things Sephora.com has implemented in its web store is the content marketing and digital assistance features. I’ve previously covered the subject and praised Sephora’s efforts to offer quality content, as praised are due.
The curated content customers find is a great choice to build loyalty. So is the Community where customers can browse among the knowledge base or post questions and interact with professionals.
As mentioned, one of the greatest assets Sephora has is its focus on digital rich content. Users are treated to:
Some other touches make Sephora a great choice for beauty products customers, not the least of which are the three free samples with each order (a great way to drive future orders) and the mobile apps that make us of barcode scanning to offer price info and customer reviews.
Beauty.com is an online retailer so it has no apparent need or intention to leverage offline or omnichannel sales. It has developed specific filters and features to cater to customers that either know what they want and want the best price or they can quickly decide.One of the features that really stands out (they have a pop-up to insure it stands out) is “Auto reorder and save” option. Simply put, the online retailer has noticed the habitual purchase beauty customers take and leveraged it.
Customers can set an auto-reorder flag for certain products, which can be shipped each 30, 60 or 90 days. Before the order is shipped, customers receive an email notifying them and they can pause, skip or cancel the auto-orders. The customer incentives are savings and free shipping.
Another great feature that lets customers reach the right product is the filtering option which is set not only for product features but also customer concerns and specific needs. In the Make-up section, the eye category, one can find brand and ingredients options, but also filters such as concerns (acne, dryness or oiliness), benefits (curling, hold or smooth) and skin type. Unfortunately, the filters are not usable on the smartphone version of the web store.
Just like its direct online competitor (Sephora.com), Beauty.com offers free samples, free shipping for orders $35 and above, free returns and 5% back through its loyalty program. It also features great content areas, such as its Beauty Blog, with Romy Soleimani, The Latest Trends section reviewing product news and a Beauty Videos section, ranked according to customer reviews. A great no-no on the video section is the fact that videos embedding is restricted to affiliates only, leaving a lot of marketing potential untapped.
I’ve put together a slideshare presentation regarding omnichannel retail. It focuses on the events that lead to the adoption of omnichannel, the challenges and several ideas that will help you understand the concept.
Consumer demand is the one thing that can decide whether a retailer is successful or not. Of course, there is a whole field of marketing studies to determine how we can influence consumers to purchase. But a really important aspect of how good retailers fare in the market is their ability to “sense” demand, not just influence it.
In a recent study, IHL Group claims Overstocks and Out-of-Stocks cost retailers almost $1.1 trillion world-wide. To put it in perspective, that figure is the size of Australia’s GDP.
What that means is that Overstocks and Out-of-stocks, collectively defined as Inventory Distortion, are a problem that cost retailers world-wide 7.5% of their gross revenue.
The figures translate into poor performance, decreased customer satisfaction, decreased sales and increased costs of inventory warehousing and inventory spoilage. Basically there are two really simple outcomes:
Either way, one thing is for sure: Inventory Distortion leads to poor retail performance.
Demand Sensing is a concept and set of technologies that make use of analytical and prediction models to estimate … well … demand. Imagine a retailer that runs a network of 10 stores, one online store and has a mobile app that drives sales also, along side a call center.
Said retailer probably has an inventory management system, an warehouse management system, a sales reporting tool and probably some type of integration with suppliers and manufacturers.
Let’s imagine this retailer selling a type of red shirts that is available in one of the 10 stores and that inventory is not available online. If a customer will visit 3 of the stores in search of that particular red shirt and then search for it online and still not find it, it will probably consider it to be out of stock and the retailer would lose a sale opportunity.
You probably see where the problem lies: even though the product was available, it was not available to the customer and opportunities were lost. The same thing goes for products that are not exposed to the customers, or they are, say, unreachable on the shelf or unfindable on the web store if the search engine is not fit for the job.
The opposite situation, where demand is not correctly estimated and out-of-stocks become a reality, are just as bad as sales opportunities are lost.
The solution lies in gathering enough data across all sales channels, compiling this data and using models to predict demand. That easier said than done because …
As you are reading a blog on omnichannel retail, the term was bound to appear somewhere along the line. So here it is. You can’t have Demand Sensing without a connected sales operation and inventory transparency. All inventory sources have to be connected and data should be generally available. So should sales data across channels.
The picture below shows an example of omnichannel supply chain, one where all the operational pieces work together and share data. When such a structure is implemented, demand is easily “sensed” and estimated and thus inventory distortion can decrease.
So now we have the data. Implementing omnichannel retail can lead do a better demand sensing and therefore improve inventory distortion, a small glitch in the global retail system costing “only” $1.1 trillion.
Across the globe, retailers have picked up on the omnichannel trend and try to give the customers what they want: the same level of service across all sales channels.Some are doing better than others but everyone’s trying. Especially for multi-channel retailers, the switch is essential in keeping up with an increasing competition from online pure-plays.
The switch is not easy and certain bottlenecks stand out:
When you say omnichannel, you have to think of all the sales and distribution channels. Hence the “omni”. That certainly looks like a marketing area and to a certain degree, it is.
But to make omnichannel a reality instead of long consultative talks, you have to go beyond marketing and into the dark woods of technology systems and process management. That’s the hard part. The change comes when companies and especially executives leave aside their differences and interact to connect cross-department processes.
Yes, omnichannel is marketing driven but it needs inventory transparency, it needs technology investment and updating and it needs a change in internal processes and culture.
Yes, culture because…
Mid to large retailers that switched from brick and mortar to multi-channel did this by adding silo-ed sales structures one after another. First came the brick and mortar operation, then came the online store, the call-center, the mobile sales and so on.
Each of these channels eventually developed into a full-fledged sub-organization. It is not uncommon to see, for example, ecommerce departments with full operational structures from purchasing, warehouse management, picking and packing, sales, marketing and others.
When such structures emerge, a certain type of independence emerges also and this can lead to channel cannibalization. Simply put it’s one channel stealing sales from another, instead of working together for the customer and the common (company) good.
That’s why a change in culture is much needed when striving to implement omnichannel retail policies. Any customer should be encouraged to buy from any channel, as long as it stays within the retailer’s domain.
BAGA stands for “Buy Anywhere, Get Anywhere“. Buy online, pick up in store. Or at home. Buy in the physical store and receive at home. Place an order on the phone and pick up in store.
It’s complicated just working with two or three of these scenarios. When you add general inventory transparency, cross-store orders and supplier availability it gets a lot more complicated.
That’s why a BAGA policy should be built after implementing:
These are just three of the most important factors that slow down omnichannel adoption. The fourth is probably the fact that some companies are just so tired of working their way through ecommerce adoption that they are unwilling to move forward.
It takes willingness to discover the benefits and what omnichannel is. For many, the switch is rather simple in terms of technology. It does bare costs in willingness to learn new concepts and implement these concepts within the company.
Whisbi is a tool for the omnichannel customer support. It bridges online, offline and phone-call experiences to provide a type of support fit for today’s and tomorrow’s merchants.
What Whisbi does is create a rich connection with the customer. It does that by streaming a live interactive screen from the sales support and at the same time it synchronizes this screen with a live phone call.
The great thing about the technology is that customers can effectively be “teleported” within the store or a specially designed sales support space. For example, if a retailer were to provide support for big-ticket products, such as cars, high-end electronics or maybe a designer items, the customer should effectively “feel” these products. For now, the general consensus among consumers is that such a feeling can only be attained in a real store. Two of the most important factors for in deciding to visit a brick and mortar store are the sensory experience and human touch.
Whisbi fulfills these two needs quite admirable. First of all it provides a smooth connection between the sales person and the potential customer. This is done either through a “click to call” function where the customer requests a call, or through a direct call to an inbound number. While the phone connection is established, customers also start a digital interaction with the sales consultant. This stream of information can be in the form of co-browsing, assisting in data-filling, showcasing product videos and photos, but most importantly, it can come in the form of a live product demo, from the store.
The sales consultant effectively streams live video to the customer through a mobile app, a laptop camera or even … wait for this … Google Glasses.
So while the two discuss on the phone, the customer can experience touching and discovering the product, as if he or she were in the store. This type of assisted purchases are the perfect fit for omnichannel retail.
The customer sees the sales assistant while they discuss but to insure the customer’s privacy, it doesn’t work the other way around.
The fact that the video stream and the phone call are synchronized may seem trivial but keep in mind that data is streamed through two very different infrastructures. The fact that the customer can see and hear the sales assistant at the same time gives a pleasant sense of human interaction, mimicking the experience one would have in a real store, with a trained store assistant. In fact, one of Whisbi’s four patents, and in my opinion the most important, is a patent to synchronize phone calls to online experiences.
The feeling you get by using Whisbi as a customer is quite impressive. By synchronizing multiple sensorial experiences, the solution works far better than either the phone-call option or the live chat.
In fact, the company claims a 15-30% conversion rate for customers interacting with the brand through this technology. While this might seem outrageously high, I think this might be an accurate figure. The feeling of (almost) complete immersion may be an even better experience than the one customers would get in a real store. The reason is “whisbi-ing” is an experience brought up by the customer’s demand, in the safety and comfort of a familiar place. By taking out stressful elements that brick-and-mortar stores sometimes have (crowds, un-involved sales reps), this omnichannel experiences works as a type of “concierge” service.
If you’ve read this far, you’ve probably noticed that Whisbi sounds too good to be true. The fact is that it actually IS too good to be true. The usage of Whisbi is limited by the potentially high cost of hiring qualified personnel to handle incoming customer demands.
Indeed, forms and chat have a low conversion rate. However they are great for low to median cost products where margins are low and the cost of specially trained sales reps is not justifiable.
But there are some cases where Whisbi can be a great fit:
1. Big Ticket omnichannel sales: Think of cars. A car should be seen, experienced and felt. It is an expensive purchase, one that has a lot to do with the rational but more to do with our emotional decisions. While purchasing and paying for a car is far from mainstream, a sales rep using Whisbi can offer a great display of the car’s features and teleport the customer to the dealership, before a visit is made. One of those using Whisbi is Fiat, and the ad below showcases a potential customer journey:
Its not just cars, either. I think Whisbi can work great as an omnichannel support for other big ticket items such as designer fashion, jewelry or maybe art.
2. High customer acquisition cost: Several industries have high customer acquisition costs. Telco is one of such industries. Voice and data subscriptions, especially for customers switching from one operator to another, as well as those that decide on their first subscription, have a high customer acquisition cost. This is due to increasing competition, large marketing budgets and extensive offers from competitors.
But such high-acquisition cost industries also tend to be profitable because of a certain aspect. That is the large lifetime customer value.
3. High lifetime customer value: The lifetime customer value expresses the long-term value a customer has for the company. Simply put – it means how much will the customer spend on the company products during his lifetime as a customer. For example, due to a high lifetime customer value, Goldman Sachs estimates that Apple’s customer’s base value at $295 billion. The point is that retailers estimating high customer lifetime value should use omnichannel customer service to acquire customers. Even if costs are high.
4. Personalized service for the loyal customers: Maybe not all customers can be served through an Whisbi experience. But such great support can be a great incentive for your loyal pack. Concierge support for loyal customers and high-spenders can go a long way in keeping your friends close.
5. Address to impress: Let’s face it. Whisbi’s technology is awesome. The experience of a live demo convinced me to write this review. The experience is great. Google Glass, mobile apps, live streaming and phone calls – arent these impressive? More so – teleporting users and showcasing products in real time directly in the store and letting customers purchase online and receive at home? This is impressive and impressive is an asset on its own.
In conclusion Whisbi may not be perfect for all ecommerce or omnichannel operations but for some – it is an impressive and must-have technology. The results in conversion rate improvement shows the need for better customer support within omnichannel operations. And Whisbi delivers.
Ever thought what happens behind the curtains before a new product hits the shelf? Or what makes customers decide they love product A but definitely hate product B, although they are almost identical? Or what makes great products … well … great?
Many have and there is no clear answer to these questions. What works when Apple launches a music player may not work when Microsoft does it (Remember Zune?). There are many variables involved and no matter the size of your R&D budget, sometimes things are not going to go right.
But there’s only one way to see if the product is really fit for the market. That way used to be simple and a bit risky. Teams including marketing, product development, engineering and manufacturing experts would dream, design and build products. They would test the products on selected customer groups and if the results would look good, they would push the product to the market.
However even involving budgets, experts, consumer insights and marketing bucks, sometimes products flop.
Two things changed this: crowd-sourcing and crowd-founding. Together they’ve formed a type of customer experience previously unknown: the pretail.
In the past, teams were involved in trying to guess what customers would want. Now we can just go ahead and ask the them.
Pretailing is a term describing any activity introducing customers to brands or products, before the retail process. It assumes that using crowd-founding sites such as Kickstarter, inventors and innovators can test their concept before involving big budgets. Essentially they are asking potential buyers to invest their dollar-power in their product.
This, in turn, creates an experience previously unknown to the consumer. The consumer is effectively buying into a vision. Pretailing creates a new type of sales channel that works before the product is even manufactured. Unlike traditional retail, this type of commerce can shed light on what the market wants at any given time.
Online stores such as Quirky, Threadless or Japan-based Muji have one thing in common. They use their communities to find the right ideas and products to design and develop. Quirky is focused on inventing cool gadgets, Threadless leverages its designer community to create t-shirts and Muji sells home&deco products designed by the consumers.
They all engage in pretailing. By tapping into the collective minds of their communities they can ask for the type of products most customers would purchase. Before they manufacture and sell, they ask what to manufacture and sell. This in turn creates a sense of belonging to the community for the customer. For the retailer, it decreases the risk of manufacturing and stocking up on lousy products.
Crowd-founding is another way of tapping into the market and pretailing. We all know Kickstarter but other, more product-oriented crowd founding platforms fare even better for this concept.
CrowdSupply and OutGrow.me are just two places where you can see what customers have backed before manufacturing. The products we can see there range from open source toothbrushes to one-wheel skateboards.
The results are amazing. With unlimited creativity comes an unlimited supply of innovation. And by tapping into a large market of early-adopters, only the products that are really fit for distribution get funded and survive.
Big retailers have picked up on the trend and are now using pretailing to test new products and improve their logistics to fit the estimated demand. Apple, for example is one of the companies that showcases products before they are available in retail stores, interacting with developers and customers to improve the experience.
Beyond the crowd-founding and crowd-sourcing, pretailing can come from anything involving large numbers of potential customers. By tapping into online traces, retailers can get insights on potentially succesful products.
Pretailing can start with a simple research with Google Trends. It can be an analysis on the search trends on your own web store.
It can just as well be an overview of the most popular trends on Instagram. For example Crane & Canopy releases new high quality duvets basing their decisions on Pinterest and social media trends.
The conclusion is that in this highly competitive market, retailers need to engage their customers before they start the retail process. Pretailing means tapping into the wisdom of the crowds and extracting the perfect products before competitors do. It is not only a matter of product development but a matter of understanding the customer and providing the best experience on the market.