Spokescharacters on TV, mobile phone circulars and a shopping cart Kinect prototype. All competing for consumers. Which is most valuable? Which offers a lasting connection? Which will pocket the cash? These answers and more…in this week’s post. Sounds like the opening to a reality show doesn’t it? I suppose it could be if you had agencies competing, but this is my post and we’re here to talk real life examples and their positives and negatives.
1) First up, spokescharacters on TV and Spam’s ‘Sir Can-A-Lot.’ Yes, spam’s agency has rolled out a spokescharacter to celebrate 75 years and its name is ‘Sir Can-A-Lot’ http://bit.ly/zCMgjS.
The positives: Spam is meat in a can, and they’re seeking to inspire people to spice up meals by adding spam. What kind of character typically saves the day? A knight, which is exactly the character chosen. It makes sense, and so spam wins some points there. Will it attract attention? Possibly, if anything because it’s new and different.
The negatives: Cartoon characters are becoming a turnoff for adult consumers, and this is spam’s audience because they are the ones cooking for their families. Just look at all the backlash about recent car insurance ad characters in a recent car insurance commercial. Cartoon characters? Not the best motivator for these consumers.
The verdict? Least likely of the three to rake in the best results. Sir Can-A-Lot doesn’t immediately make you think of spam, and isn’t likely to motivate consumers to buy it popping out of an egg carton. What spam should be doing? Some type of contest featuring recipes with spam and online voting via their social media site for the most creative one and best tasting one.
2) Whole Foods’ Kinect shopping cart prototype. Whole Foods is testing the Kinect technology on shopping carts as a way to ease the shopping process http://bit.ly/y9KrbD. The technology identifies loyalty card shoppers, scans each item placed in the cart and checks out customers.
The positives: This could be a platform for advertisers, as their ads could be featured on the screen as customers shop. It would be the most profitable for stores and could even be called The Smart Cart. The convenience factor is another plus, as it even crosses items off your shopping list, essentially managing the whole shopping process for you.
The negatives: As it currently stands, this concept is quite futuristic and threatens jobs, which is not likely to make a big splash anytime soon. Also, as it doesn’t currently feature ads, it’s missing an opportunity to stand out.
The verdict? More likely to attract shoppers than Sir Can-A-Lot but a little too futuristic to be relevant in today’s economy. Also, without ads it’s missing a crucial selling point.
3) Mobile phone circulars a la Walgreens. Walgreens has partnered with LocalResponse to make the mobile check-in experience more like a circular http://bit.ly/AiWxPt. When customers check-in they are pointed to special products and given coupon incentives.
The positives: This idea has a lot of potential. First, companies who implement it can emphasize their efforts to go green. Getting customers into digital circulars would reduce or eliminate paper ones, saving paper and boosting their position. This idea also involves more direct interaction with consumers at point of purchase. The closer to point of purchase the better the outcome.
The negatives: Lack of targeting. The article mentions Walgreens’ partnership with Halls and how check-ins direct customers to Halls in-store. However, that’s not always what consumers have come for or need. The other offer mentioned is a coupon for batteries, which is generic enough that its widespread use isn’t a stretch. Still, no excuse for not targeting via customer history. Pointing you to common items you buy that are on sale or offering up a coupon for the same? Now we’re talking.
The verdict? Certainly more effective than Sir Can-A-Lot. However, this concept still needs some work. It’s the closest of the three because of its use of mobile and mobile being the go-to shopping device.
The overall verdict? Out of the three, Walgreens wins. When it comes down to technology versus personality, especially with these three examples, technology has the edge. Personality may draw people in but the interactive and convenience qualities of technology make it more accessible and effective.
Developing Retail App-titude
Tags: Amazon, developing strong retail apps, enrich or engage customers, in-store apps and purchase decisions, in-store shopping apps, mobile landing pages vs. apps, one-tap buying, shopping apps, ShopSavvy Wallet, smartphone shopping, types of shopping apps, using in-store apps to keep customers
There is a distinct threat to ‘brick and mortar’ retail these days, and it can be summed up in one word: mobile. Companies like Amazon have apps that let consumers scan a barcode with the option to purchase the item on the spot. More of these apps are coming, but this threat can become an opportunity if retailers develop their retail app-titude. Yes, I made up a new word. It seems quite relevant though considering the topic of this post. How does that one saying go? Fight fire with fire? What I am trying to say is that it is time for retailers to fight apps with apps of their own.
Why is this important?
1) The Facts and Just The Facts: Pew Internet and American Life Project came out with a study that shows 52% of adult mobile phone users use their phone to help make purchase decisions. The ScanLife Mobile Barcode Trend Report, tracking mobile scans of UPC and 2D barcodes, reported nearly 12 million scans last quarter and a 300% increase from the previous year.
2)If Not You Than Someone Else Will: MediaPost’s Chuck Martin discusses how ShopSavvy Wallet, like Amazon, also offers one-tap buying http://bit.ly/AC7pzn. After an item is scanned, the app lets consumers compare prices and one-tap purchase from the retailer with the best price. The moral of this story is that retailers need to offer their own app to maintain consumers’ attention and money. If you can’t capture their attention then someone else will.
How do you capture their attention?
According to Mark Walsh, many retailers have weak apps because they’re not focused on making them shop-centric http://bit.ly/w9GNCs. Examples of companies with weak apps are Abercrombie and Fitch and Longhorn Steakhouse. Instead of focusing their efforts on informing and connecting, they go the flashy route with 3D graphics and motion-based effects. Walsh clearly states that retailers need to choose whether to enrich or engage consumers. With this there are four types of apps to choose from that enrich or engage.
1) Informational: These apps enrich by providing consumers with information on retail outlets, high-level and non-product-specific information. Examples include Century 21, Hilton Hotels and Toyota.
2) Buy/Ship: These apps allow consumers to look up items and purchases for later offline home delivery. Examples of these include: Amazon, Wine.com and Zappos.
3) Multichannel Lite: Designed to assist in-store shoppers, but not in the same way as multichannel heavy apps. Multichannel lite is focused on providing product information and solving consumer problems like in-store wait time. Examples of these are Starbucks and Best Buy.
4) Multichannel Heavy: Also designed to assist in-store shoppers, but allows for more interaction and the option to purchase the product through the app. Examples of these are Walmart and Walgreens.
What about mobile landing pages and websites?
eMarketer cites two studies and concludes that consumers prefer each for different tasks http://bit.ly/Ag7tW8. Consumers prefer mobile for shopping, searching and accessing entertainment and prefer apps for navigating and acquiring information. However, what this article fails to mention is that the two are often intertwined. Acquiring information is part of shopping and making a purchase decision and websites and apps can both be sources of a purchase decision. Mobile landing pages are important to have, but apps are also and are more likely to both inform and engage consumers in the purchase process.
No longer is shopping a point A to point B journey. There are many other points along the way and with them come many other apps competing for shoppers’ attention. If retailers do not develop their retail app-titude and make it the strongest than another will and will take their customers along with it. Ask yourself what the status of your retail app-titude is and what kind of app you wish to develop, because that is what will make the difference. Successfully fight fire with fire, and you win.