Starbucks has just been awarded the "mobile marketer of the year" award in the US.
They're a great example of a (big) brand who has gone all out to trial and integrate mobile into their marketing strategy. I particularly love their use of geo-fencing which offers customers (who opt-in and are located within the geofenced area) discount vouchers for products at their closest store.
According to Mobile Marketers, "Starbucks taps mobile for the medium's strengths: location, timeliness and immediacy, convenience and measurability.."
In a recent US survey amongst 1000 respondents nearly one in two stated they would be more likely to do business with a retail store if that store had a mobile web site.
This got me thinking about the whole area of cross-channel retailing – particularly as we lead up to Christmas.
The digital channel (defined here as online, web, mobile, apps) is getting a fair bit of airtime lately. I recently wrote about Toys R Us and their iPad catalogue app and today read that Target US (see pic above) have recently launched their own iPad solution. Target are hoping it will help drive purchase intent amongst their expansive and ever-increasingly connected shopper base.
Why does this all this matter?
In a recent interview, Glen Senk CEO of Urban Outfitters in the USA stated that his highest value customers use three or more of their channels and spend six times what a single-channel shopper spends in the process.
Wow. Now that’s a motivation!
Insight? Focus on helping your shoppers shop your brand – not your channels
The US based brand, Moose Jaw is an example of a brand that really “gets” this. Whilst they have a seriously well-planned multi-channel retail strategy, they measure success on the total value of their customers (vs siloed metrics for each channel).
As Jason Goldview from Crossview stated “They [MooseJaw] understand that the more opportunities they create to touch each customer across different channels, the more valuable that customer will be in the long run.”
The other thing I thought was brilliant about Moose Jaw was that they reward customers for interacting with the brand – not just buying from it.
Insight Two? More brand interaction drives greater lifetime value
Brands that successfully implement cross channel retailing share two things in common. First, they know how to manage deployment of touch-points and tactics “in the trenches” (ie: channels). This is important because some of your customer segments may only shop in particular channels and not others. Second, they have vision. They know what kind of bigger brand story and experience they’re wanting to create and use a “helicopter view” to ensure that all channels and touchpoints merge together.
In what’s being described by the retailer as a “new and immersive shopping experience,” Toys R Us has launched an iPad version of its famous Big Christmas Book catalogue. There’s a version for kids and one for adults.
Kids can browse the (non-price marked) toys and use virtual stickers to select and place the items they’d most love to receive onto a special wish list. The list can then be shared with Santa, parents and friends via channels including email and SMS. In addition, there is a dedicated section for savings and a store locator making it easy to find the best deals.
As PSFK outlined, online versions of print catalogues haven’t taken off, ‘but iPad versions, with embedded video, as well as the ability to browse whenever it’s convenient and make purchases could be the next big thing’.
Let’s face it, printed catalogues are tangible and cost effective – making them an attractive option to include in the mix. Why spend more if you don’t need to? Research also shows that the great majority of Australians continue to find value in reading printed catalogues (Sweeney Research 2009).
Despite this, one thing is for sure – the ipad will influence and re-shape consumer (and shopper) behaviour. It’s just a matter of time.
One of the key points I liked in the Toys R Us case example was that the retailer was extremely clear about who the catalogue app was designed for (“mums, dads and anyone who knows or loves a child”) and why they’d designed it (“to connect our customers to our brand in new and exciting ways”). They had mapped out a clear strategy where technology was their servant – not master. What’s more, their ipad catalogue app has helped them facilitate a different kind of brand experience – interactivity.
It’s this critical point of brand interaction where the ipad (and other tablet technology) wins-out over traditional print catalogues.
Yes, we’re still a fair way from any type of “tipping point” when it comes to converting print to i-pad catalogues.For a vast majority of brands this will provide a safe reason to ‘watch and wait’ – the “let’s see how others pave the way first” approach. And therein lies the exciting part. For savvy brands, it’s an opportunity to strategise, jump in and take the lead.
