tag:econsultancy.com,2008:/topics/multichannel-2 Latest Multichannel content from Econsultancy 2017-02-13T10:06:07+00:00 tag:econsultancy.com,2008:BlogPost/68787 2017-02-13T10:06:07+00:00 2017-02-13T10:06:07+00:00 Why did Poundland’s ecommerce trial fail? Nikki Gilliland <p>So, why exactly did it fail? Here’s a bit of insight into the story.</p> <h3>Failure to convert existing shoppers</h3> <p>Having opened its first ever store over 25 years ago, Poundland is built on a tried and tested formula. The reason behind its success is that it knows exactly what its customers want and it unashamedly delivers it. </p> <p>Its stores – a mainstay on most UK high streets – boast bargain multipacks of everything from batteries to fizzy sweets. Though it famously uses tricks of the trade in order to keep its prices so low, such as ‘re-engineering’ products to shrink the size or quantity of items, faithful customers appear well aware of this fact, maintaining that it offers better value than other stores or budget supermarkets.</p> <p>With the arrival of its online shop, Poundland failed to recognise that most existing customers do not typically use it like a standard or large supermarket. </p> <p>The buying process seems much more fractured – people are likely to pop in simply to check out what bargains are in that week or to pick up a specific item. Meanwhile, Poundland's appeal also surely lies in the joy of coming across a surprise find.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Yes <a href="https://twitter.com/Poundland">@Poundland</a> mate, you've knocked it out of the park with this lifesaver. ONE ENGLISH POUND, GUYS. <a href="https://t.co/VNfdqkmHn8">pic.twitter.com/VNfdqkmHn8</a></p> — Ebony L Nash (@Ebzo) <a href="https://twitter.com/Ebzo/status/825332268893868032">January 28, 2017</a> </blockquote> <p>Further to this, new research from Shoppercentric has found an increase in the ‘little and often’ trend, with 16% of grocery shoppers rarely doing a main shop – a figure 6% higher than it was in 2016.</p> <p>All in all, it seems unlikely that consumers would be able to replicate this reliable experience online. </p> <p><img src="https://assets.econsultancy.com/images/0008/3738/Shoppercentric.JPG" alt="" width="240" height="532"></p> <h3>Delivery costs</h3> <p>As the likes of Sainsbury’s and Tesco launch new initiatives to offer one-hour delivery in London, shipping remains an important sales tactic for most of the big supermarkets.</p> <p>Most consumers are prepared to pay for this convenience, as prices typically fall in line with the supermarket’s wider positioning. In contrast, Poundland’s online delivery costs are somewhat at odds with its overall approach to value, coming in at £4 unless a customer spends over £50.</p> <p>With the average spend in Poundland said to be around £4.72, it seems unlikely that consumers would be willing to pay double for the privilege of getting their goods delivered. What's more, it seems even unlikelier that shoppers would ever be able to reach a £50 shop.</p> <p>Without enough of an incentive in this area, it's unsurprising that existing customers remain satisfied with shopping in-store.</p> <h3>Lack of focus</h3> <p>Lidl was named as the fastest-growing retailer in 2016, with Aldi and Lidl accounting for 10% of the total supermarket spend in the UK. Both have famously avoided venturing into the online sphere, instead choosing to focus on physical expansion with investment in stores and warehouses.</p> <p>It’s certainly been a successful strategy, with some suggesting Poundland could have similarly benefitted from this laser-focus on its physical presence instead of forcing a multi-channel approach.</p> <p>That being said, with the recent launch of <a href="http://www.birminghammail.co.uk/whats-on/shopping/poundland-now-opening-clothing-stores-12545933" target="_blank">dedicated clothing stores</a> for its Pep &amp; Co range, it does appear to be investing somewhat in this area. Again, perhaps herein lies the problem, resulting in a fractured or shallow focus across the board.</p> <h3>Mixed user experience</h3> <p>Finally, while the online user experience is somewhat irrelevant now - with a lack of interest in the overall concept overriding design – it is still interesting to note a few errors. </p> <p>On the positive side, the site appears to be very simple to use, with intuitive navigation and guest checkout facilitating an easy experience.</p> <p>Conversely, certain features like the ‘Shuffle’ tool are a bit baffling.</p> <p><img src="https://assets.econsultancy.com/images/0008/3737/Shuffle.JPG" alt="" width="690" height="465"></p> <p>Attempting to replicate the experience of finding surprise bargains in-store, this ‘new, fun way to shop’ on-site offers up a random selection of items.</p> <p>However, instead of providing users with a novel or entertaining experience, it negates the way people naturally want to shop online, making the whole process much more time-consuming and muddled than it should be.</p> <h3>In conclusion...</h3> <p>The aforementioned shuffle feature is perhaps a good reflection of why Poundland's ecommerce venture failed to work. Ultimately, it’s just a bit misjudged. </p> <p>Poundland’s expansion into ecommerce was done in spite of the needs of its core customer. And while a multichannel approach is undoubtedly the goal of many big retailers – it’s no use if the demand isn’t there in the first place.</p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/66602-do-supermarkets-know-what-online-customers-want/" target="_blank">Do supermarkets know what online customers want?</a></em></li> <li><em><a href="https://econsultancy.com/blog/64799-are-supermarkets-missing-seo-opportunities/" target="_blank">Are supermarkets missing SEO opportunities?</a></em></li> <li><em><a href="https://econsultancy.com/blog/68355-how-online-grocery-retailers-are-capitalising-on-the-need-for-convenience/" target="_blank">How online grocery retailers are capitalising on the need for convenience</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/68799 2017-02-10T14:11:00+00:00 2017-02-10T14:11:00+00:00 10 epic digital marketing stats from this week Nikki Gilliland <p>Now, let’s get straight to it.</p> <h3>Technology is holding back half of UK retailers</h3> <p>Retailers are still struggling to harness the power of new technology, according to the latest research from eCommera and Coleman Parkes.</p> <p>In a study of 200 UK retailers with revenue of over £100m, 46% of respondents said their tech stack is inhibiting growth. Consequently, 64% plan to increase investment in 2017.</p> <p>When it comes down to the reasons why, retailers cited website stability, customer experience and analytics as the three areas that require greater focus. This proves that - while retailers might have invested in the latest tech – many are unable to implement it correctly.</p> <h3>Pepsi Super Bowl ad generates most media conversation</h3> <p>4C has revealed the Super Bowl moments that ignited social media, with both Lady Gaga and Pepsi overshadowing the game itself.</p> <p>There were over 37m engagements around the event in total, including conversation about teams, players, and performers.</p> <p>Tom Brady earned 2.5m engagements, while Lady Gaga gained 5.5m engagements for her impressive performance. Meanwhile, Pepsi was the most talked about brand ad, garnering 708,089 engagements.</p> <p><img src="https://assets.econsultancy.com/images/0008/3826/Pepsi.JPG" alt="" width="780" height="234"></p> <h3>UK searches for mini-breaks up a fifth year on year</h3> <p>The Spring Travel Insights report from Bing Ads has revealed the travel destinations Brits are currently searching for.</p> <p>With a spike driven by Valentine’s Day and the approaching spring bank holiday, searches for mini or short breaks are up nearly a fifth year on year. Spa breaks are similarly popular, making up 23% of searches.</p> <p>Mobile is also a key driver, with 31% of mini-break search volume coming from a smartphone or tablet.</p> <h3>More consumers search eBay for iPads than roses for Valentine’s Day</h3> <p>In more Valentine’s Day news, eBay has revealed that Valentine’s gifts are increasingly moving from the practical to the experiential, as shoppers search for more unusual and imaginative gift ideas.</p> <p>This time last year, searches in eBay’s Travel &amp; Holidays category surged by 55%, while interest in its Art category rose by 60%. Further to this, interest in event tickets and books rose by 57% and 39% respectively.</p> <p>Even traditional gifts like roses have been eclipsed by practical items like the iPad, which saw a 31% spike in search interest.</p> <p><img src="https://assets.econsultancy.com/images/0008/3830/ebay.jpg" alt="" width="600" height="479"></p> <h3>One in ten marketers admit their emails are irrelevant</h3> <p>New <a href="https://dma.org.uk/article/marketer-email-tracker-2017-launch" target="_blank">research from the DMA</a> highlights how vital emails are to marketing strategies, with 95% of marketers agreeing that they are ‘important’ or ‘very important’.</p> <p>Despite this, only 9% say that all their emails are relevant to customers, and 38% say that ‘some’ are relevant at best.</p> <p>For marketers, ‘lack of strategy’ remains the biggest concern, followed by ‘lack of data’ and ‘data silos’. It’s not all bad news, however, as last year’s biggest concern of ‘limited internal resources’ has dropped out of the top three.</p> <p>With over half of consumers having considered deleting their email account, it is up to marketers to strive to provide greater relevance and value.</p> <p><img src="https://assets.econsultancy.com/images/0008/3827/DMA.JPG" alt="" width="711" height="342"></p> <h3>AI marketing spend predicted to hit $2bn by 2020</h3> <p>A new report from Qubit and IDC predicts that marketing spend on artificial intelligence technology will grow by 54% from $360m in 2016 to $2bn by 2020.</p> <p>A large factor in this prediction is the belief that traditional tools like A/B testing and predictive analytics are flat lining. Similarly, the suggestion that marketers are struggling with the sheer volume and variety of consumer data, leading to inaccuracies and errors.</p> <p>Consequently, while marketers are still failing to grasp AI effectively, marketing spend looks set to boom.</p> <h3>Quality more important than price for grocery shoppers</h3> <p>New research from Shoppercentric has highlighted the changing expectations of grocery shoppers, as high quality produce overtakes competitive pricing in terms of importance.</p> <p>Now, 54% of consumers say quality produce is the most critical factor, while 49% cite price.</p> <p>Other changing behaviour includes how often consumers shop, with the ‘little and often’ trend increasing 5% since 2016. Lastly, the rise of mobile continues, with 27% of shoppers using their smartphone to shop in the past month – a rise of 3% from last year. </p> <p><img src="https://assets.econsultancy.com/images/0008/3828/Shoppercentric.JPG" alt="" width="599" height="233"></p> <h3>5.5bn people predicted to be using mobile phones by 2021</h3> <p>According to a new report from Cisco, more people will be using mobile phones in 2021 than bank accounts and landlines.</p> <p>Due to strong growth in mobile users, smartphones and IoT connections - combined with network speed improvements and mobile video consumption - mobile data traffic is predicted to grow sevenfold.</p> <p>Cisco also forecasts that there will be 12bn mobile-connected devices by 2021 – a figure up from 8bn in 2016. Lastly, the total number of smartphones is expected to account for more than half of all devices and connections in the world.</p> <h3>46% of consumers influenced by social video</h3> <p>In a survey over 5,500 consumers, the Science of Social Video has found that people spend an average of six hours a week watching video content on social media networks.</p> <p>67% of respondents said that this figure had increased over the course of the past year, while 60% said that it’s likely to continue to rise.</p> <p>The survey also highlights how social video can impact purchasing decisions, with 46% saying they had made a purchase as a result of watching a branded video on social media, while 32% had considered doing so.</p> <p><img src="https://assets.econsultancy.com/images/0008/3829/Social_minutes.JPG" alt="" width="582" height="332"></p> <p><em>(Minutes of social video consumers watch per day)</em></p> <h3>Omni-channel sales restricted by security concerns</h3> <p>A new survey from Aspect has found that security concerns about social media could be preventing sales.</p> <p>69% of consumers have security concerns over payment or personal details, while 60% have concerns over social media channels being at risk of phishing attempts or fraudulent profiles.</p> <p>While social media channels are still widely used for research purposes, purchases are generally carried out elsewhere, with a majority of consumers being unwilling to pay via communication channels like Facebook, WhatsApp or Instagram.</p> <p>On the other hand, consumers are increasingly confident in paying via mobile applications, with 75% saying they are happy to do so.</p> tag:econsultancy.com,2008:BlogPost/68744 2017-01-27T09:56:00+00:00 2017-01-27T09:56:00+00:00 What’s behind the decline in ebook sales? Nikki Gilliland <p>Interestingly, this doesn’t seem to be a generational trend.</p> <p>People under 30 are just as likely to disregard ebooks - a fact reflected by a <a href="http://www.publishersweekly.com/pw/by-topic/industry-news/financial-reporting/article/72047-adult-books-sales-fell-in-first-half-of-2016.html" target="_blank">35% drop in digital sales of young adult fiction</a> during the first half of 2016, and cemented by an increase of 7.4% in paperback sales of the same genre.</p> <p>So, what’s behind the ebook decline?</p> <h3>A switch-off from social media</h3> <p>Despite being known as the ‘always on’ generation, millennials don’t actually want to be glued to a screen 24/7. </p> <p>In fact, a large proportion of young people are feeling inclined to switch off due to the constant pressure to be active on social media. Ofcom recently found that <a href="https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2016/cmr-uk-2016" target="_blank">34% of internet users have voluntarily gone offline</a> at some point for this very reason.</p> <p><img src="https://assets.econsultancy.com/images/0008/3393/Ofcom.JPG" alt="" width="750" height="309"></p> <p>In line with this is a greater desire to spend less time on digital devices as a whole.</p> <p>Despite advancements in technology making ebook screens thinner and lighter than ever before - mimicking the paper-thin nature of print - the very concept of reading on an electronic device is still a step too far for some. </p> <p>Unlike watching a film, having the option to read print over digital means that many people will naturally revert back to the latter, thereby stemming the sales of ebook devices and digital books.</p> <h3>Desire for a physical customer experience</h3> <p>Research has shown that the implicit understanding of how far along you are in a story increases the enjoyment of reading a physical book. In contrast, the inability to visualise progress arguably makes using an ebook a somewhat shallow and unsatisfactory experience.  </p> <p>Similarly, the tactile element, not only of reading a physical book, but browsing and buying within a real bookstore is also preferable.</p> <p>We’re constantly being told that consumers crave an immersive, interactive shopping experience. As a result, more and more online retailers are meeting the demand by entering into the physical realm.</p> <p>Amazon – a retailer that has dominated the book industry in recent years – opened its first ever bricks-and-mortar book shop in 2015. Waterstones has also stopped selling the Kindle in its UK stores, instead choosing to use the space for hardback and paperback books.</p> <p><img src="https://assets.econsultancy.com/images/0008/3392/Amazon_Books.JPG" alt="" width="650" height="421"></p> <p>It’s not just large or established brands that are noticing the demand for print either. The trend has trickled down to new and startup businesses, with many combining the best of both digital and traditional publishing.</p> <p>Meanwhile, with just <a href="https://printonpaper.com/10-steps-becoming-media-magnate/" target="_blank">32% of people trusting mainstream news</a> media, companies like AuthorHouse and Print on Paper are tapping into this distrust (and the simultaneous demand for print) by allowing anyone to self-publish books and print their own newspapers.</p> <h3>Popularity of audiobooks</h3> <p>It’s not just a resurgence for print that has contributed to less interest in ebooks. Alongside an increase in physical book sales, interest in audiobooks has also skyrocketed in recent years. </p> <p>Audiobooks are said to be the fastest-growing format in publishing, with <a href="https://www.nytimes.com/2016/09/23/business/media/audiobooks-turn-more-readers-into-listeners-as-e-books-slip.html?_r=0" target="_blank">sales rising 35.3%</a> in the first half of 2016. So, why the sudden surge?</p> <p>Meeting the desire for less screen time without compromising on the immersive nature of storytelling, audiobooks are the perfect solution for the aforementioned digital fatigue. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Listen to 'Goodnight Smartphone' free on Audible, then give you &amp; your phone a rest tonight. <a href="https://t.co/QITBOI2WbI">https://t.co/QITBOI2WbI</a> <a href="https://t.co/WY9XJLmQl3">pic.twitter.com/WY9XJLmQl3</a></p> — audible.co.uk (@audibleuk) <a href="https://twitter.com/audibleuk/status/823960768920113152">January 24, 2017</a> </blockquote> <p>Moreover, with cars now including Bluetooth as standard, plus smartphones overtaking laptops as the primary device for getting online – consumers are increasingly turning to audiobooks in place of reading or even listening to music. </p> <p>Lastly, it’s also been suggested that we’re are moving towards an ‘agnostic’ channel experience, whereby consumers see little difference between audio, visual and textual platforms, as long as they are able to become fully immersed in the story.</p> <h3>In conclusion…</h3> <p>While there is still a place for ebooks in certain contexts, such as travel or in spontaneous need, it’s hard to foresee digital book sales bouncing back to where they once were.</p> <p>Of course, this does not mean that consumers are forgoing digital text entirely – rather that the onslaught of online news, magazines, social media and messaging is more than enough.</p> <p>When it comes to reading a good book, this spells great news for traditionalists.</p> tag:econsultancy.com,2008:BlogPost/68652 2016-12-22T09:50:00+00:00 2016-12-22T09:50:00+00:00 Ecommerce in 2017: What do the experts predict? Nikki Gilliland <p>If you’d like to learn more about ecommerce, book yourself into one of the following training courses from Econsultancy:</p> <ul> <li><a href="https://econsultancy.com/training/courses/fast-track-ecommerce-online-retailing/">Ecommerce and Online Retailing Training</a></li> <li><a href="https://econsultancy.com/training/courses/conversion-optimisation/">Conversion Optimisation - How to Deliver Digital Growth Training</a></li> <li><a href="https://econsultancy.com/training/courses/usability-and-persuasion-in-ecommerce/">Usability and Persuasion in E-commerce Training</a></li> </ul> <h3>Seamless customer experience</h3> <p><strong>Matt Curry, Head of Ecommerce at LoveHoney:</strong></p> <p>I think we'll be seeing a lot more zero-friction experiences. The recent announcement of Amazon Shop is a good example of this in the real world, but online we'll be doing everything we can to get out of the way of someone trying to order.</p> <p>Everything from seamless identification, automated intelligent orders, native payments in the browser and on IoT devices, to sites that customise their UI on the fly.</p> <p><img src="https://assets.econsultancy.com/images/0008/2533/Amazon_Go.JPG" alt="" width="650" height="456"></p> <h3>Data-driven marketing</h3> <p><strong>James Gurd, Owner of Digital Juggler:</strong></p> <p>I’m not going to get excited yet by IoT and VR – I know they’re already established in some markets, but I just can’t see mass adoption coming in the UK yet, and especially not in retail ecommerce. </p> <p>For me, marketing automation based on product lifecycles and user-level behaviour will become more and more apparent.</p> <p>We’ll see less bucket emails and more targeted communication, which has been happening over the past few years but at a slow rate.</p> <p>I think ecommerce specialists are growing in maturity and confidence, so data driven decision-making is becoming more of a norm, even though opinions and ‘it’s good practice’ do still influence many decisions.</p> <h3>Mobile rewards </h3> <p><strong>James Gurd:</strong></p> <p>Mobile payment still threatens to break free but it hinges on successfully integrating loyalty programs and rewards. </p> <p>So far brands like Starbucks have nailed it, and 2016 has seen some other high profile brands like Kohls push in this area. What’s lacking to make me confident 2017 is <em>the year,</em> is one of the big tech/payment companies resolving loyalty across a wide range of merchants.</p> <h3>Personalisation of shopper bots</h3> <p><strong>Depesh Mandalia, CMO of ToucanBox:</strong></p> <p>The emergence of bots and apps which provide a convenience shopping play will be a growing trend in 2017. Both Apple and Facebook are investing here with a view to enabling brands to deploy shopper bots that can create personalised recommendations.</p> <p>Personalisation has lacked an element of context in the past, but a bot could both dig deep into a customer's history and ask questions in real-time to better tailor products.</p> <p>While I can order items on my Amazon Echo, it doesn't yet have awareness of my history to better tailor my requests. Asking Echo "buy some vests for my son", it should ask contextual questions like 'how old?' or 'what size?', but should also check my browsing/purchase history to tailor those results.</p> <p>Having an in-home shopping assistant could be a huge advantage for retailers to connect in a more intimate manner with potential and new customers.</p> <p><img src="https://assets.econsultancy.com/images/0008/2529/Amazon_Echo.JPG" alt="" width="590" height="336"></p> <h3>Uptake of A/B testing</h3> <p><strong>Paul Rouke, founder &amp; CEO, PRWD:</strong></p> <p>The free-to-use Google Optimize is going to bring a significant increase in both the awareness (and uptake) of A/B testing amongst retailers.</p> <p>With this, my word of warning for retailers would be - when a tool is free, there is less value placed on the importance of having the correctly skilled people available to get the most out of the tool. </p> <p>A/B testing carried out intelligently (and even strategically), requires a multidisciplinary team with hypotheses underpinned by user research, data analysis and heuristics. </p> <p>Ensure that your business doesn’t end up with “all the gear, but no idea” when it comes to A/B testing in 2017.</p> <h3>Wearables</h3> <p><strong>Matt Curry:</strong></p> <p>Now that Mobile is by far the largest driver of traffic and revenue, we have to presume the next device type will be wearables.</p> <p><img src="https://assets.econsultancy.com/images/0008/2528/wearables.jpg" alt="" width="650" height="433"></p> <h3>The re-invented HIPPO </h3> <p><strong>Paul Rouke:</strong></p> <p>An increasing amount of humility being exhibited by retailers, as they evolve to becoming customer-centric. </p> <p>The re-invented <a href="https://econsultancy.com/blog/68080-it-s-time-to-reinvent-the-hippo" target="_blank">HIPPO </a>characteristics will continue to be harnessed by businesses and individuals as egotism, opinion and “what competitors are doing” are slowly removed from decision making around how we improve our user experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/2530/HIPPO.JPG" alt="" width="544" height="303"></p> tag:econsultancy.com,2008:BlogPost/68633 2016-12-13T11:17:11+00:00 2016-12-13T11:17:11+00:00 How Britain's favourite brands are attracting consumers this Christmas James Collins <p>Our recent research revealed that <a href="https://econsultancy.com/blog/68590-10-dazzling-digital-marketing-stats-from-this-week/" target="_blank">Marks &amp; Spencer is the UK’s favourite Christmas shop</a>. Of the 2,000 consumers we surveyed, 28% said they will spend the most on gifts at M&amp;S this month, with Boots, John Lewis, Next and House of Fraser making up the rest of the top five.</p> <p>Attracting Christmas shoppers pays off for these brands, and not just in the short term. Our survey also revealed that 84% of UK shoppers plan to carry on spending in their chosen stores after the Christmas season has ended.</p> <h3>The modern consumer journey</h3> <p>The top five brands are ones which UK shoppers have known and loved for a long time. Although the stores aren’t new, their methods of attracting customers have changed dramatically since the stores were founded.</p> <p>These changes have been driven by the transformation of consumer behaviour. According to research by Webloyalty &amp; Conlumino, the average consumer typically used around two touchpoints during their path to purchase in the year 2000. By 2015, this had increased to around five.</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0008/2364/christmas-shoppers-on-smartphone.jpg" alt="Christmas shoppers on smartphone" width="800" height="450"></p> <p>Shoppers are interacting with more touchpoints across more marketing channels and devices than ever before.</p> <p>But which of these is having the biggest impact on consumer choice, and how are Britain’s favourite brands making the most of it?</p> <h3>The famous Christmas TV ad campaign</h3> <p>Despite the big budgets and hype, our research found that only 27% of people make a purchase based on brands’ TV adverts alone.</p> <p>This may seem a small percentage in return for the huge investment in TV ads, but no channel performs in a silo. As multi-device ownership increases – according to the IAB’s 2015 Full Year Digital Adspend Results, there are an average of 8.3 connected devices per home – the ways to reach consumers increase too.</p> <p>For a TV advert to be most effective, it must be part of a multichannel campaign delivering consistent messaging across channels and devices. </p> <p>John Lewis – whose Christmas campaign is often the most talked about – is taking this multichannel approach seriously, <a href="https://econsultancy.com/blog/68512-john-lewis-combines-tv-ad-with-snapchat-lens-and-email/">combining both on and offline experiences</a>.</p> <p>Buster the Boxer soft toys and picture books are on sale, and the brand has partnered with Snapchat to produce a custom filter, created bespoke Twitter stickers, and offered an Oculus Rift VR experience in the Oxford Street flagship store. </p> <p>The brand’s creative multichannel approach pays off. Speaking before the release of this year’s campaign, John Lewis’ head of marketing, Rachel Swift, said that the Christmas TV ad campaign is the store’s most profitable return on investment. </p> <p><iframe src="https://www.youtube.com/embed/sr6lr_VRsEo?wmode=transparent" width="560" height="315"></iframe></p> <h3>Advice from friends and family</h3> <p>Our survey found that 31% of people listen to advice from friends and family about where to purchase Christmas gifts from.</p> <p>Social media is the modern equivalent of word of mouth. Today’s brands understand the importance of using social media as part of a multichannel campaign.</p> <p>For example, M&amp;S has ‘Mrs Claus’, the star of its TV ad, taking over its Twitter account, has created the hashtag #lovemrsclaus, and has even designed its own Mrs Claus emoji.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">A delightful morning full of giving (and receiving) awaits. Stay tuned... <a href="https://twitter.com/hashtag/LoveMrsClaus?src=hash">#LoveMrsClaus</a> <a href="https://t.co/au6wzme7AC">pic.twitter.com/au6wzme7AC</a></p> — M&amp;S (@marksandspencer) <a href="https://twitter.com/marksandspencer/status/806770300905848833">December 8, 2016</a> </blockquote> <p>According to Waggener Edstrom, from 4–20 November 2016, M&amp;S clocked up 43,376 mentions across social media, second only to John Lewis (which had a huge 203,199).</p> <p>Again the scale of the social buzz surrounding these big campaigns helps hammer home the importance of creating a campaign that is active across multiple channels.</p> <h3>Browsing a retailer’s own website</h3> <p>Our survey results also showed that 33% of shoppers browse a brand’s own website to help them decide where to buy gifts. So, it’s essential to make sure people can navigate around your site easily.</p> <p>Next’s online Christmas store is a prime example of so many retail websites at this time of year – there’s an obvious Christmas section in the main navigation, ‘gifts for…’ category pages, Secret Santa guides, the list goes on. It’s easy for consumers to find what they’re looking for in whatever way that suits them.</p> <p>But this on-site experience is only beneficial if people are actually visiting your website in the first place. Attracting relevant traffic isn’t just about the short term tactics, like <a href="https://econsultancy.com/blog/68573-seven-examples-of-black-friday-email-marketing-from-retailers/">the barrage of Black Friday emails</a> we experienced last month.</p> <p>Campaigns that focus on the long term, like partnerships with relevant blogs and online magazines, can help you attract more of your target customers over a longer period of time. </p> <p>The tricky thing is measuring the impact of campaigns like this. If a customer reads your Christmas gift guide on their favourite fashion blog and then visits your website a few days later, last-click measurement won’t acknowledge the contribution of the content campaign. </p> <p>Brands, including some of those in our top five, are moving towards attributed measurement to help them understand the value of marketing channels that appear earlier in the user journey.</p> <p>House of Fraser, for example, saw an 83% rise in the number of affiliate touchpoints awarded commission when it moved away from the last-click model.</p> <p>This view of the full user journey allowed House of Fraser to recognise the touchpoints that were driving customers to its website on a longer term basis.</p> <h3>Saving money with vouchers and loyalty schemes</h3> <p>Finally, we found that 44% of consumers are encouraged to buy from a store if they know they can use a voucher code, and 23% are persuaded by the chance to build up loyalty points.</p> <p>Boots is a great example of a store that uses vouchers and loyalty points well. You can quickly find offers on voucher and cashback sites, the brand’s Advantage Card is extremely popular, and its 3-for-2 offers at Christmas practically fill the store.</p> <p>Typically, online vouchers are associated with short-term gains at the last click – arguably perfect for the Christmas push. But it’s important to understand the incremental value that vouchers offer.</p> <p>As our survey shows, they can prompt shoppers to choose one brand over another. Vouchers can also add value across the whole user journey: We found a 22% uplift in revenue from voucher sites when taking earlier touchpoints into account, rather than just last click.</p> <p>So, we’ve seen that the modern consumer journey is complex. Christmas shoppers are influenced by lots of different touchpoints – there’s no one channel that trumps them all. The UK stores that win the Christmas retail battle are the ones that target their audience across all the relevant channels available to them.</p> <p>The brands that truly win at this time of the year, however, are the ones that understand the importance of <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">lifetime value</a>. Attracting customers and encouraging them to buy Christmas gifts is only the first step.</p> <p>Retailers that succeed are those that use their data cleverly to help them make the most of the 84% of Christmas shoppers who intend to shop at their chosen store again – and attract as many of the remaining 26% as possible.</p> <p>Having a rounded understanding of the user journey, and the many touchpoints that users encounter both pre- and post-purchase, allows you to test and discover what messages to use – and when – to encourage more customers to return again and again.</p> tag:econsultancy.com,2008:BlogPost/68431 2016-10-28T14:06:05+01:00 2016-10-28T14:06:05+01:00 How to combine attribution and segmentation data to achieve marketing success James Collins <p>Ultimately, being shrewd about how you segment your marketing data gives you the opportunity to become more effective at targeting the right people at the right time.</p> <p>Here, I share just some of the ways you can use attribution and segmentation to unlock even more value from your marketing efforts.</p> <p><strong><img src="https://assets.econsultancy.com/images/0008/0493/different-customer-groups-shopping-online.jpg" alt="Different customers shopping online" width="800" height="500"></strong></p> <h3>Understand the journeys of converting <em>and </em>non-converting users</h3> <p>As the name suggests, the data captured by traditional CRM systems is based on <strong>customers</strong>: On people who have completed a conversion.</p> <p>However, there will always be far more people browsing your products and services only to walk away.</p> <p>It’s here, in these non-converting journeys, that marketers are able to uncover where their efforts are falling flat.</p> <p>Effective user journey analysis and attributed reporting provides you with not only an understanding of the behaviour of people who buy from you but also those people who come to your site and do not purchase.</p> <p>Armed with this information, you can identify the marketing channels that aren’t helping attract or convert your chosen customer segments well enough.</p> <p>You can then experiment with cutting back spend in those areas and reallocating budget to other more effective channels.</p> <h3>Discover what activities attract new customers</h3> <p>One of the most common uses of segmentation is to provide a <strong>distinction between new and existing customers.</strong></p> <p>Segmentation allows you to distinguish between these two types of customers, while attributed reporting and user journey analysis helps you understand their typical behaviours.</p> <p>This combination then gives you the power to experiment and discover which channels are most effective at attracting each type of customer.</p> <p>How might user behaviour differ between these two segments? You might expect that new customers are exposed to your brand through channels like display and non-navigational search.</p> <p>On the other hand, existing customers might visit your website more often directly, through <a href="https://econsultancy.com/reports/email-census/">email marketing</a>, or a branded, more specific, search.</p> <p>Once you have the data to prove (or disprove) these assumptions, you’ll have an idea of where to focus your marketing efforts.</p> <p>For example, if you want to attract more new customers, you’ll know which channels, and which combination of channels, to test first.</p> <h3>Reach your different customer groups in the most effective ways</h3> <p>Effective segmentation should also allow you to <strong>determine between different groups of customers based on their demographic or behavioural characteristics.</strong></p> <p>Analysing your attributed reporting data by customer segment allows you to formulate and test marketing campaigns specific to your different customer groups, rather than put out an ineffective ‘one-size-fits-all’ campaign and hope for the best.</p> <p>To give a simple example to put this into context, say you’re a travel company and you’ve identified two of your common customer types:</p> <p><strong>Active Retirees</strong></p> <ul> <li> <strong>Description:</strong> older holidaymakers who have the free time and money to enjoy travel.</li> <li> <strong>Relevant products:</strong> cruises, package holidays, tours.</li> <li> <strong>User journey:</strong> don’t regularly use social media, conduct a lot of online research before making final choice, often complete purchase offline.</li> <li> <strong>Effective marketing campaigns: </strong> display advertising, affiliate partnerships, email marketing campaigns well in advance of peak booking time offering in-store discount.</li> </ul> <p><strong>Affluent Singles</strong></p> <ul> <li> <strong>Description: </strong> spontaneous decision makers with money to burn.</li> <li> <strong>Relevant products: </strong> last minute group holiday deals.</li> <li> <strong>User journey: </strong> impulse purchasers with short lead time, engage with social media regularly.</li> <li> <strong>Effective marketing campaigns: </strong> targeted social media advertising offering limited-time group discount.</li> </ul> <p>In this example, ‘Active Retirees’ tend to have more touchpoints in their path to purchase than ‘Affluent Singles’.</p> <p>Given this data, you can then try targeting your Active Retirees well in advance with an in-store discount across the various platforms that work for them.</p> <p>At the same time, you can test cutting back on the number of different touchpoints used to engage with Affluent Singles, who convert last-minute regardless, to see if you get better results.</p> <h3>Learn how to market to customers with high lifetime value</h3> <p>Segmentation can also allow you to <strong>group customers based on their purchasing habits.</strong></p> <p>For example, one-time purchasers, occasional purchasers, and regular purchasers with a high lifetime value.</p> <p>Using the Active Retirees example again, let’s say that your attributed reporting shows that a retargeting campaign had only a minor impact on these customers’ decisions to purchase their first holiday.</p> <p>In this way, it doesn’t appear to be a profitable a campaign.</p> <p>However, when you analyse the attributed data over an extended period of time, you may find that these same customers come back to make additional purchases further down the line, making them fall into your high lifetime value segment.</p> <p>You may also find that they return using what we might call ‘free’ channels (<a href="https://econsultancy.com/training/courses/topics/search-marketing/">SEO</a>, email, or direct), interacting with fewer touchpoints each time.</p> <p>When judging the value of the initial retargeting campaign across the entire lifetime value of these customers, the associated ROI becomes much greater.</p> <p>Only by using segmentation and attribution in combination can you gain this insight and judge the performance of your campaigns effectively.</p> <p>This then gives you the power to experiment and get better at targeting the right people in the right ways.</p> <h3>Use attribution to unlock the value that’s right under your nose</h3> <p>By <a href="https://econsultancy.com/blog/66996-the-three-stages-of-attribution-that-are-crucial-to-success/" target="_blank">harnessing the power of attributed reporting data</a>, marketers can better understand the intricacies of the true value of their efforts.</p> <p>By segmenting that data in astute ways, marketers are given the opportunity to test, evaluate, and ultimately get better at targeting their most valuable customers.</p> <p>When talking about attribution, the conversation is immediately drawn into the algorithm, with little regard as to the additional benefits it can bring to all of your marketing channels.</p> <p>The advice I’ve provided here hopefully demonstrates that using the data to enhance insight presents a huge opportunity for marketers.</p> tag:econsultancy.com,2008:BlogPost/68447 2016-10-27T07:13:37+01:00 2016-10-27T07:13:37+01:00 12 examples of early Christmas marketing from online retailers Nikki Gilliland <p>Here’s a look at how 12 online retailers are currently promoting Christmas on-site, via email and social.</p> <h3>Boots</h3> <p>Boots is well-known for its Christmas '3 for 2' offer - who <em>hasn't</em> bought their nan/mate/niece a fail-safe boxset of smellies?</p> <p>The health and beauty retailer has been teasing out its 'Gift of Beauty' tagline early this year, promoting it on its homepage and in conjunction with offers on Facebook.</p> <p><img src="https://assets.econsultancy.com/images/0008/0686/Boots_Christmas.JPG" alt="" width="760" height="638"></p> <p><iframe src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2FBootsUK%2Fvideos%2F10154613175348832%2F&amp;show_text=0&amp;width=400" width="400" height="400"></iframe></p> <h3>Soap &amp; Glory</h3> <p>Another retailer that traditionally takes things up a notch at Christmas, Soap &amp; Glory is already promoting its 'Glitzmas' campaign.</p> <p>Boots benefits too, with the inclusion of a link back to the site's aforementioned '3 for 2' offer.</p> <p><img src="https://assets.econsultancy.com/images/0008/0696/Soap_and_Glory.JPG" alt="" width="760" height="737"></p> <h3>ASOS</h3> <p>While ASOS prefers to keep it current with a greater focus on Halloween and Autumn, it does point users towards Christmas with this subtle on-site promotion.</p> <p><em>(For more on this brand, see: <a href="https://econsultancy.com/blog/67823-what-makes-asos-s-online-customer-experience-so-enjoyable/">What makes ASOS's online customer experience so enjoyable?</a>)</em></p> <p><img src="https://assets.econsultancy.com/images/0008/0688/Asos_Christmas.JPG" alt="" width="760" height="435"></p> <h3>Ikea</h3> <p>Likewise, Ikea includes a small promotion for its Christmas shop alongside half term and Autumnal features.</p> <p><em>(For more on this brand, see: <a href="https://econsultancy.com/blog/67694-10-examples-of-great-ikea-marketing-creative/">10 examples of great IKEA marketing creative.</a>)</em></p> <p><img src="https://assets.econsultancy.com/images/0008/0690/Ikea_Christmas.JPG" alt="" width="780" height="486"></p> <p>Having said that, it has already included 'Christmas' as the top category in its drop-down navigation menu.</p> <p><img src="https://assets.econsultancy.com/images/0008/0691/Ikea_Christmas_2.JPG" alt="" width="750" height="407"></p> <h3>Debenhams</h3> <p>Debenhams is one of the only retailers I've seen sending out a dedicated Christmas email in October.</p> <p><img src="https://assets.econsultancy.com/images/0008/0692/Debenhams_Email.JPG" alt="" width="367" height="102"></p> <p>Highlighting the fact that its Christmas shop is now well and truly open, it is an early sign that seasonal promotion will be big again this year.</p> <p><img src="https://assets.econsultancy.com/images/0008/0693/Debenhams_Christmas_email.JPG" alt="" width="500" height="754"></p> <h3>House of Fraser</h3> <p>Unlike Debenhams, House of Fraser has been taking more of a restrained approach, including small promotions at the bottom of its recent emails.</p> <p><img src="https://assets.econsultancy.com/images/0008/0708/HoF_email.JPG" alt="" width="750" height="681"></p> <p><img src="https://assets.econsultancy.com/images/0008/0709/HoF_email_2.JPG" alt="" width="700" height="527"></p> <h3>Jo Malone</h3> <p>Unlike more subtle examples, Jo Malone is one retailer that is already going all out for Christmas.</p> <p>It is already using a site-wide banner to promote its seasonal range. </p> <p><img src="https://assets.econsultancy.com/images/0008/0694/Jo_Malone_Christmas.JPG" alt="" width="760" height="390"></p> <p>Further to this, it is also ramping up efforts with events, nicely promoted on Facebook to encourage customers to get into the spirit.</p> <p><img src="https://assets.econsultancy.com/images/0008/0695/Jo_Malone_Christmas_Event.JPG" alt="" width="760" height="816"></p> <h3>The White Company</h3> <p>Another retailer that has already decked out its halls with Christmas deccies is The White Company.</p> <p><img src="https://assets.econsultancy.com/images/0008/0713/White_Company_Christmas.JPG" alt="" width="760" height="700"></p> <p>As well as its entire homepage being Christmas-themed, it has also published a seasonal edit on its blog to kick off consumer interest.</p> <p><img src="https://assets.econsultancy.com/images/0008/0714/White_Company_Christmas_Blog.JPG" alt="" width="760" height="693"></p> <h3>Lush</h3> <p>Its stores are currently filled with sparkly pumpkins and goth fairies, but Lush has been hinting that the famous Santasaurus is on his way.</p> <p>With teaser posts on Snapchat and Instagram, <a href="https://econsultancy.com/blog/68308-four-things-to-appreciate-about-lush-s-new-app/" target="_blank">it has been using mobile</a> and social media to engage with loyal fans.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">If you go down to Lush today you'll be in for a <a href="https://twitter.com/Snapchat">@Snapchat</a> surprise. <a href="https://twitter.com/hashtag/Lush?src=hash">#Lush</a> <a href="https://twitter.com/hashtag/lushchristmas2016?src=hash">#lushchristmas2016</a> <a href="https://t.co/7O83tD6DmW">pic.twitter.com/7O83tD6DmW</a></p> — LUSH Cosmetics UK (@LushLtd) <a href="https://twitter.com/LushLtd/status/782212868871684097">October 1, 2016</a> </blockquote> <p><img src="https://assets.econsultancy.com/images/0008/0710/Lush_Christmas_Instagram.JPG" alt="" width="760" height="563"></p> <h3>Urban Outfitters</h3> <p>Urban Outfitters has also been using Instagram to promote its popular gift guide, giving users an extra nudge by including the number of days until the big day.</p> <p><img src="https://assets.econsultancy.com/images/0008/0711/Urban_Outfitters_Christmas.JPG" alt="" width="760" height="502"></p> <p><img src="https://assets.econsultancy.com/images/0008/0712/Urban_Outfitters_Gifts.JPG" alt="" width="760" height="603"></p> <h3>John Lewis</h3> <p>Forget the Coca Cola advert - it's arguably not Christmas until you've seen <a href="https://econsultancy.com/blog/67161-is-john-lewis-playing-with-fire-with-its-annual-christmas-advert/">the John Lewis ad</a>.</p> <p>While we're still waiting for it, the department store is currently ramping up the excitement with the launch of its online Christmas shop.</p> <p><img src="https://assets.econsultancy.com/images/0008/0715/John_Lewis_Christmas.JPG" alt="" width="760" height="746"></p> <p>There's a tonne of related content here, including extensive gift guides and planning tools.</p> <p>The below countdown planner helps consumers prepare for the festive season with weekly jobs and to-do lists.</p> <p><img src="https://assets.econsultancy.com/images/0008/0716/John_Lewis_Countdown.JPG" alt="" width="760" height="544"></p> <h3>GHD</h3> <p>Lastly, it looks like GHD is bringing back its successful #sendahint campaign, including the same feature in its dedicated 2016 Christmas category page.</p> <p><img src="https://assets.econsultancy.com/images/0008/0717/GHD.JPG" alt="" width="850" height="554"></p> <p>Allowing users to send an email hinting at the GHD product they'd most like to receive, it's a great example of how to build excitement and increase customer engagement as we head into the festive season.</p> <p>It's also good for data capture...</p> <p><img src="https://assets.econsultancy.com/images/0008/0718/GHD_Send_a_Hint_email.JPG" alt="" width="400" height="771"></p> tag:econsultancy.com,2008:BlogPost/68423 2016-10-21T11:45:54+01:00 2016-10-21T11:45:54+01:00 How fashion and travel are leading the way in m-commerce Gregory Gazagne <p><a href="http://www.deloitte.co.uk/mobileuk/">Deloitte’s Mobile Consumer Survey</a> found that UK citizens look at their smartphones over a billion times a day, declaring that “no other personal device has had the same commercial and societal impact as the smartphone, and no other device seems likely to.”</p> <p>Around the same time in late September the IAB released its ‘<a href="http://www.businesswire.com/news/home/20160927005394/en/Three-Quarters-Mobile-Users-World-Purchases-Smartphones-Tablets">Mobile Commerce: A Global Perspective</a>’ survey, which found that three-quarters (75%) of smartphone and tablet users say they have purchased a product or service on their smartphone or tablet in the past six months, and nearly a quarter (23%) buy on mobile devices on a weekly basis.</p> <p>As the retail industry rapidly adapts to mobile usage, at Criteo we’re able to analyse millions of online sales in real time, on all devices and from thousands of brands across all industries.</p> <p>With this front-row seat to the very latest in mobile commerce, we’re especially interested in looking at the way different retail industries are keeping pace with the rate of change.</p> <p>Because of the specific challenges facing them, we’ve seen that the fashion industry in particular is blazing a trail in smartphone targeting, including cross-channel strategies, and travel is making its mark by providing superior customer experience/ better conversions via apps.</p> <p>What’s driving these industries to lead in these areas – and what can others learn from them?</p> <h3><strong>The rise of the ‘Smartphonista’</strong></h3> <p>Last month’s New York-London-Milan-Paris Fashion Weeks saw the <a href="https://www.theguardian.com/commentisfree/2016/sep/30/us-vogue-editors-ridiculous-fashion-shows-changed-bloggers">old guard of print fashion journalism clash with the fashion world’s new digital influencers</a>, who rely on blogging platforms and Instagram to communicate with their thousands of followers.</p> <p>Their argument is symptomatic of a wider trend: that smartphones are revolutionising the way the fashion industry markets and sells its wares, and this is causing headaches for traditional media – but driving strong results on digital channels.</p> <p>According to Criteo <a href="http://www.criteo.com/resources/fashion-flash-report-2016/">data</a>, clothes have quickly become the premier mobile purchase in the UK, with 55% of online fashion purchases now being made through mobile (smartphones or tablets), and four out of 10 of all fashion purchases in the UK being made through smartphones.</p> <p>This makes fashion shoppers that purchase on smartphones (who we’ve coined ‘Smartphonistas’) a particularly valuable audience for fashion retailers.</p> <p><img src="https://assets.econsultancy.com/images/0008/0592/criteo_slide.png" alt="" width="800"></p> <p>Mobile is perfect for this kind of off-the-cuff purchase, allowing consumers to browse flash sales on their phone, shop while watching TV, or buy an article of clothing on a whim.</p> <p>In addition to impulse, these purchases can also be driven by social connections and social influence (as evidenced by the rise of the fashion bloggers so vilified by Vogue).</p> <p>Social media – particularly Snapchat, Instagram and Pinterest – appears to strongly influence clothing purchases on mobile.</p> <p>Heavy Snapchat users are 139% more likely to buy clothes on mobile than the average Brit, while heavy Instagram (113%) and Pinterest (83%) users are also much more likely than average to buy clothing on mobile, according to <a href="http://www.criteo.com/resources/a-portrait-of-mobile-performance/">Criteo’s Portrait of Performance report</a>.</p> <p>Despite all this, acquiring new fashion customers is notoriously hard.</p> <p>What’s more, it can take several purchases before a customer earns you a profit, and turning new customers into loyal buyers takes finesse.</p> <p>In response to these challenges, fashion retailers are starting to recognise what products drive the best response on what device.</p> <p>For example, fashion shoppers favour small screens for low-risk items (T-shirts etc.) and products they don't need to try on (e.g. accessories).</p> <p>In addition, the new breed of Smartphonistas often use multiple devices on the path to purchase, so retailers are starting to track more effectively across devices in order to send the right message to the right person, at the right time.</p> <p>Nadya Birca, Senior Digital Marketing Manager at New Look told us that the key to successfully engaging with the Smarphonista is to recognise that he or she expects a truly cross-channel experience:</p> <p>“With mobile usage soaring in the UK, the experience we’re aiming to deliver on mobile is significant for our interactions with customers both on- and off-line.</p> <p>"When browsing on mobile we shouldn’t expect users to purchase straight away - allowing them a seamless navigational exploration, and later consideration experience, is what should drive any mobile commerce business focus.”</p> <h3><strong>Destination App</strong></h3> <p>As the 36th annual <a href="http://wtd.unwto.org/en">World Tourism Day</a> reminded us at the end of last month, the tourism industry continues to drive positive social, cultural, political and economic impacts worldwide.</p> <p>In many countries, including the UK, the travel industry is feeling the positive impact of the rise of smartphone use.</p> <p>Criteo’s latest Travel Flash Report shows that one in five Brits now browse for travel options on their mobile phones, and close to one-third of online travel bookings worldwide took place on mobile devices in Q2 2016 (up 24% from the year before).</p> <p>During the same period, smartphones captured nearly one in five online travel bookings.</p> <p>But that’s not all – the travel industry, more than most other verticals, is seeing particular success when it comes to mobile apps.</p> <p>According to our data, with investment in in-app tracking and advertising, committed travel advertisers are seeing a surge of bookings made from apps.</p> <p>Apps generated 57% of mobile bookings in Q1 2016, up from 40% in Q3 2015.</p> <p>Over the past two years, travel brands that invested in their apps saw constant growth in app bookings from 12% to now over half of all mobile bookings. </p> <p>For one-night stays, apps have a clear lead over other devices or platforms, with nearly three in four app bookings made for one-night stays.</p> <p>The most effective travel mobile strategies encourage app installs with services that really make a difference:</p> <ul> <li>Personalising recommendations based on searches, selection criteria, past travels and wish lists</li> <li>Sending up-to-date, useful and non-intrusive notifications (e.g., check-in reminders, traffic, delays, alternatives, cancellation, nearby offers)</li> <li>Offering better deals on your app to temporarily capture downloads and bookings, but be consistent to sustain them</li> <li>Enabling one-click bookings with intelligent auto-fill of personal details (while highlighting payment security)</li> </ul> <p>App bookings are on a roll, and we can see that merchants who invested in and promoted apps early are now reaping the benefits. </p> tag:econsultancy.com,2008:BlogPost/68357 2016-10-04T11:04:32+01:00 2016-10-04T11:04:32+01:00 Brand Commerce: What is your brand's key feature? Michael Sandstrom <p>But what is it in a challenger brand, and especially so within a successful challenger brand, that makes it more successful than others?</p> <p>In our <a href="https://econsultancy.com/blog/68176-brand-commerce-a-new-planning-model-for-marketers/" target="_self">previous blog post</a>, we introduced Brand Commerce, a new planning model based on heuristics - the mental shortcuts we all take when making decisions.</p> <p>For the second part of our Econsultancy exclusive blog series, we dive into successful challenger brands and how they use heuristics, or sales triggers to win in their category.</p> <h3>The challenger brands</h3> <p>If asked to think of successful challenger brands, many in our industry might mention Under Armour or Tesla Motors as recent examples.</p> <p>Under Armour is seen as challenger in an already saturated sector, successfully taking significant market share from both Nike and Adidas.</p> <p>Tesla in turn is both changing the perception of electric cars and challenging an entire industry, with large manufacturers now playing catch-up.</p> <p>When looking into both of these brands and their success, one of the things that sets them apart from the competition is they both have a clearly defined mission statement.</p> <p>Putting it in Brand Commerce terms, they both understand what their key feature (their One Key Thing) is and allow it to permeate through their whole organisation.</p> <p>This in turn allows them to provide consistent and relevant messaging in all of their marketing activities.</p> <p>Tesla’s stated mission as a company is to "accelerate the world’s transition to sustainable energy”.</p> <p>As part of its strategy, Tesla decided to remove the traditional middleman and instead focus on providing a great online retail experience.</p> <p>Even when visiting one of its stores, Tesla provides a consistent experience by letting the customer place the order through the website.</p> <p><img src="https://assets.econsultancy.com/images/0007/9740/Screen_Shot_2016-09-29_at_19.14.11.png" alt="Tesla Motors" width="640" height="320"></p> <p>Ultimately for many, owning a Tesla becomes a clear statement of one’s personal commitment to the environment.</p> <p>Not only the brand but also its advocates are seen as leading the charge towards a more sustainable world.</p> <p>Under Armour’s mission is to "make all athletes better through passion, design and the relentless pursuit of innovation.”</p> <p>This mission has allowed Under Armour to branch out into the territory of tech companies such as Fitbit and Apple, providing its own ecosystem of digital fitness products.</p> <p>While this could be seen as a gimmick, what makes this relevant to the brand is how it strengthens its claim of making all athletes better.</p> <p>Looking at Under Armour's sponsorship marketing, instead of going straight for the larger athletes, it has been signing up athletes before they become superstars while also creating marketing campaigns around athletes in secondary sports.</p> <p>One example is the recent campaign ‘Rule Yourself’. While featuring Olympic swimmer Michael Phelps, it also includes the US Olympic Women's Gymnastics Team and young talent Memphis Depay from Manchester United.</p> <p>Through this campaign Under Armour provides consistency by embracing its mission, to make all athletes better, not just the LeBron James's of the world.</p> <p><iframe src="https://www.youtube.com/embed/CDM1FPFxbVk?wmode=transparent" width="640" height="360"></iframe></p> <p>With so many industries being saturated with competitors, inconsistency is often enough of a reason for consumers to switch brands.</p> <p>By ensuring that the whole organisation, from product design to marketing and sales, understands the mission, brands stand a better chance at providing a consistent message that resonates and feels natural to the consumers.</p> <p>Are you making the most of your unique key feature and are you using it effectively to stand out from the competition?</p> tag:econsultancy.com,2008:BlogPost/68329 2016-09-27T11:39:10+01:00 2016-09-27T11:39:10+01:00 Farfetch’s CMO: Why we’re more than just a shopping platform Nikki Gilliland <p>Here is what she had to say.</p> <p><img src="https://assets.econsultancy.com/images/0007/9547/stephanie_horton.JPG" alt="" width="464" height="299"></p> <h3>Farfetch describes itself as “for fashion lovers, not followers” – can you talk a bit about the general branding strategy of the company?</h3> <p>It’s interesting how the brand has actually evolved a lot since that statement.</p> <p>When we first started out we were definitely a fashion site for people who wanted to find that special item – but since then the brand itself has really expanded into more than just a shopping platform.</p> <p>We now have Black and White, which is a new division we launched last year, that lends our technology to retailers and brands.</p> <p>So where before we focused on putting boutiques on the site, we’re now looking at ourselves as more of a platform for <a href="https://econsultancy.com/blog/67731-think-affiliate-marketing-doesn-t-work-for-luxury-brands-think-again/" target="_blank">luxury</a>.</p> <h3>What is Farfetch’s USP in relation to other luxury retailers like <a href="https://econsultancy.com/blog/68219-four-things-brands-can-learn-about-content-marketing-from-net-a-porter" target="_blank">Net-a-Porter</a> and <a href="https://econsultancy.com/blog/68293-a-review-of-style-com-conde-nast-s-new-ecommerce-site/" target="_blank">Style.com</a>?</h3> <p>It’s mainly breadth and selection, because we have over 500 boutiques around the world contributing to the site as well as over 200 brands.</p> <p>We have more product, sometimes even more than a brand’s own website, and we have more variety of product.</p> <p>For example, you’ll have a buyer in Toyko, a buyer in Paris and a buyer in New York – all from the same brand – so instead of having maybe six or seven selections, you might have 30 or 40.</p> <p>For a consumer it is amazing because they can actually shop and style a certain brand or designer, rather than having a limited number of pieces. </p> <p><iframe src="https://www.youtube.com/embed/GLhdJoqSLdc?wmode=transparent" width="909" height="472"></iframe></p> <h3>What is the value for boutiques selling on Farfetch?</h3> <p>The site started because a lot of the smaller boutiques and brands didn’t have the ability to do ecommerce – for them it’s a very expensive and time-consuming proposition.</p> <p>They simply didn’t have the resources to do it.</p> <p>By using Farfetch, they are able to gain a global audience and gain all the infrastructure needed to become a real player in the ecommerce world.</p> <p>That includes things like customer service, payment... all those factors they would have had to figure out for themselves.</p> <h3>Last year, it was announced that Farfetch had acquired the Browns store in London – does this signal a move into physical branded stores?</h3> <p>I think Farfetch has always been really focused on the physical experience.</p> <p>One thing José, our founder, always says is that fashion is not downloadable. So it’ll never be the case that customers will only ever buy online – stores will always be an important part of the process.</p> <p>Browns allows us to have that incubator, a sort of lab to test new things and the technology to make the retail experience even better.</p> <p>For us it was just a way to really expand, do more things, and be able to roll more things out to our boutique and retail partners at large.</p> <h3>How do you ensure the experience of ‘luxury’ is replicated in digital?</h3> <p>I think every site has a point of view, and you just have to take that and really make sure that it is coming through in all aspects - from the quality of the editorial to the look and feel and how you’re presenting things.</p> <p>It’s important to read reviews, and make sure that the consumer experience is up to scratch.</p> <p>It’s also recognising that luxury requires certain things online that it might not in physical stores.</p> <p>Everything from the quality of customer service to the quality of delivery and how easy it is to return – making sure that all of those things stand up and that they are of a premium standard.</p> <p><img src="https://assets.econsultancy.com/images/0007/9546/farfetch_boutiques.JPG" alt="" width="780" height="242"></p> <h3>Lastly, what will you be speaking about at the Festival of Marketing?</h3> <p>I’ll be speaking about international marketing – so what we look for when going into a new market as well as what we know about our customers.</p> <p>There will be a focus on how Farfetch has been able to expand globally, the key leverages for us and the biggest challenges throughout the process.</p> <p><strong><em>The <a href="http://www.festivalofmarketing.com/welcome?utm_source=econsultancy&amp;utm_medium=blog&amp;utm_campaign=econ%20blog" target="_blank">Festival of Marketing</a> takes place in London on October 5-6.</em><br></strong></p>