Retailers Hop to Get Connected

A couple of items today reinforce how shopping behavior is increasingly integrated on- and off-line. Warby Parker co-founder Dave Gilboa explains why he considers retail stores so important, even though they account for less than 10% of sales, in this interview with Gigaom.

“The future of our business and all retail is going to have some mix of online and offline. The economics make a lot more sense to do as much online as possible but we are that seeing customers who are coming into the showroom and interacting with us initially in the offline world, when they buy again their second, third, fourth glasses, they’re doing so directly through the web site,” Gilboa said.

Michael Carney in Pando Daily argues that bricks and mortar retailers need a strategy to win shoppers who arm themselves with mobile phones while they shop in-store.

“Ideally, retailers would flip the script on their e-commerce brethren, not only agreeing to price match or discount against the catalogs of Amazon and others – an admittedly dangerous game – but also allowing users to immediately locate items within a store using their GPS enabled device. Also, stores should generously reward consumers for installing their apps (if they even have one), checking into their physical locations, and sharing items and promotions on social networks. The idea is to have consumers associate shopping in store with the convenience, serendipity, and connectedness common to online commerce.”

 

The Consumer Decision Journey

The Consumer Decision Journey, as identified by McKinsey & Company, is a concept well described in this except from the June 2009 McKinsey Quarterly:

The proliferation of media and products requires marketers to find new ways to get their brands included in the initial-consideration set that consumers develop as they begin their decision journey. We also found that because of the shift away from one-way communication—from marketers to consumers—toward a two-way conversation, marketers need a more systematic way to satisfy customer demands and manage word-of-mouth. In addition, the research identified two different types of customer loyalty, challenging companies to reinvigorate their loyalty programs and the way they manage the customer experience.

Finally, the research reinforced our belief in the importance not only of aligning all elements of marketing—strategy, spending, channel management, and message—with the journey that consumers undertake when they make purchasing decisions but also of integrating those elements across the organization. When marketers understand this journey and direct their spending and messaging to the moments of maximum influence, they stand a much greater chance of reaching consumers in the right place at the right time with the right message.

UPDATE December 16, 2014

McKinsey UK just published this version of the consumer decision journey, with recent research.

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For more On Grid Ventures info: Mission … Team 

Mobile Alone Won’t Cut It

E-commerce solutions which enable better consumer discovery, make shopping fun and worthwhile, and improve return on marketing investment for brands or retailers, are poised for growth.  I believe that the best solutions will take an integrated view to web and mobile, i.e., standalone mobile apps won’t cut it.  Here are some points to remember that emerge from Google’s new research study “The New Multi-screen World: Understanding Cross-Platform Consumer Behavior:”

  • 67% of shopping online is done multi-screen
  • 60% of smartphone use is at home
  • 79% of tablet use is at home
  • Only 30% of shopping on a smartphone is driven by search.  Hence an opening for an new approach to preempt Google from building a dominant approach to smartphone shopping.

Click here for a 34 page pdf of the full study.

Do daily deals bring new customers?

A new study of daily deal users is out from Chadwick Martin. Are daily deals are the latest marketing gimmick and likely to peak sometime soon? Key study findings: consumers prefer daily deals that are from a known local business, preferably for a restaurant or entertainment, and for something they already enjoy.  This looks like a cannibalized sale to me. More highlights here.

Also, the New York Times reports that Merchants and Shoppers Sour on Daily Deal Sites.