It’s a common sight. Customers scanning items in stores to find the bigger, better deal. Especially now, it seems everyone’s looking to get quality items for the lowest price around. With smartphones being so ubiquitous, it’s almost like your business is flying out the door. It’s a jungle out there and it’s all about survival of the fittest. How do you turn the situation around? What’s going to keep business in your store? Let’s explore.
1) Challenge Showrooming: Chuck Martin refers to customers shopping, scanning and then ordering online or from lower-priced retailers as showrooming http://bit.ly/M444cR. There are two ways to tackle this. Counter-showrooming, or customer service, and reverse showrooming. Even before mobile phones, there were always situations where you had to regain control of the sale. It’s not much different now. Customer service, or paying attention to customers and going the extra mile, can diffuse a lot of difficult situations and keep money in your pocket. Reverse showrooming is like turning lemons into lemonade, as it turns scanning into money for your store. Basically reverse showrooming is using the showrooms of retailers to sell their products to people who aren’t there. Shop My Label, a consumer-to-consumer online shopping startup, aims to do just that. By partnering with stores, it allows customers to scan merchandise to put in their own virtual stores. Within those virtual stores customers can make outfits from the clothing of multiple retailers, and they receive up to 10% commission on anything they sell. Shop My Label is designed to drive full price sales and free shipping is a part of the deal. A startup like this is something that’d be especially popular with millennials, which is crucial as 75% of them always have their mobile while shopping and 73% of them already make transactions on their mobile http://bit.ly/Oz32CG.
2) Take Advantage of Indoor Mapping: IMS analyst Alex West notes that both Google and Microsoft are already mapping indoor spaces, and firms like Aisle 411, Micello and Point Inside are compiling databases of indoor maps http://bit.ly/PO016t. Shopping malls and complexes are not immune to this, but they have ways to take advantage of it. Much like reverse showrooming, malls could make use of interactive indoor maps and get customers using their stores’ apps. In fact, an interactive map should display app icons for any stores that have an app and clicking on those icons should connect customers to an immediate download. Having customers utilize apps is sure to drive more foot traffic and build more connections as convenience (ease of finding and purchasing items) would be significantly increased. Just look at Point Inside’s work with Meijer on a Find-It app, with couponing and item ordering features as well as in-store tools for finding items on certain shelves. The app even helps customers locate restrooms and the bottle return. With convenient features like these, interactive mapping and apps have the potential to revitalize and grow retail in a whole new way.
3) Utilize Facebook’s ‘Want’ Button: Recently, web developer Tom Waddington discovered a disabled ‘want’ button in Facebook’s Javascript SDK http://bit.ly/MjuYPS. When activated, the ‘want’ button will work with Open Graph projects with the tag ‘products’. Open Graph is a new class of apps allowing users to share what they’re doing, and invite others to join, without being overwhelming. It connects other users to the objects of other people’s actions. For example, if your friend were cooking with a new recipe from a website it would link you to that recipe. A ‘want’ button would thus connect other users to the same products that others want, allowing them to declare their want if they want that item too. This feature would give companies the ability to gauge interest in certain products as well as distinguish between likes and wants. It’s a big step that would bring about a whole new set of user data along with more accurately targeted ads. A win for consumer and retailer alike.
Well there you have it, three steps to success. In today’s environment you must have the edge. These up-and-coming tactics are designed to provide that edge and help you become a retail survivalist. Some you can put into effect now, and others you need to watch for and adapt to as they come. Knowing about tactics like these is half the battle, implementing them is the other half. Put both of these halves together and you are on your way to being invincible.
Ready for Social Display Ads?
Tags: ad creative, ad creative and building the brand, ad relevancy, ad targeting, brand recall, branding, click throughs, click throughs vs. ongoing engagement, clicks, Facebook likes as public sponsorships, Google, Google +1's as public endorsement, Google adds social layer to display ads, Google Display Ad Network, how effective are click throughs, measuring engagement, what do clicks measure, what don't clicks measure
Ready or not, here they come. Google+ has introduced a social layer to display ads on their Google Display Ad Network http://bit.ly/thvrHU. An extension of what started at the beginning of the year, Google+ has added a +1 button to its search ads. This move allows users to endorse those ads by clicking the +1 button, displaying that endorsement and their profile picture to their connections. Images in Google search of connections who have +1′d an article or web page are common, now the same thing will apply to search. When the ad loads, images of connections who have “endorsed” the ad will be displayed along with a count of how many others have done the same. After 10 seconds it will fade away from the bottom of the ad. Google’s +1 display ads aren’t unlike Facebook turning ‘likes’ into social sponsorships that are displayed and known as “Sponsored Stories” within a user’s newsfeed. So, what effect do they have? For advertisers it’s a good thing, in the sense that it appears to show more interest and indicate which ads are more relevant to their target audience based on their clicks. Plus more click-throughs equal more money for agencies. However, as I have spoken about before, there is more to declaring interest than clicking on a button. When it comes down to the bottom line, and money is always the bottom line, actions are what translate into product sales. Just because a clicked button indicates interest and intent to purchase does not 100% of the time add up to definite and prolonged interest and engagement. Additionally, people may not fully understand that by clicking that ‘like’ or ‘+1′ button they are endorsing and/or sponsoring something.
Their true motivations for clicking it are to express to the brand that they support or like it. Whether they continue to isn’t often measured, because we often don’t follow-up beyond measuring overall clicks. I have yet to see a list of clicks broken down into clicks per specific users, probably because you can’t click twice on something to +1 or ‘like’ it. A major flaw of the system. Especially since 60% of agencies cite brand recall and intent to purchase as the most important measures of online success http://bit.ly/vDVBD5. Clicks and conversions are still key, but how do you measure ongoing engagement, brand recall, or an audience from that? The last part of that especially baffles me because clicks make it seem like your audience is growing but how do you know that even half of those people are still part of your audience? Another alarming component is that for 57% of agencies, the majority of their display objectives are building their brand while only 11% cite ad creative as critical to the campaign’s success http://bit.ly/vDVBD5. The way I see it, ad creative and display objectives aren’t two separate things. It takes ad creative to build a brand in the first place. People need to be interested in the brand to try it and they usually have to try it to like it. Where does that come from? Ad creativity. Is it any wonder that the best Superbowl ads are often aligned with the leading brands? All food for thought. I wouldn’t be so quick to jump on the bandwagon with social display ads. Like anything it is something to be entered into thoughtfully, and what I’m seeing is “let’s exploit word of mouth online to get more click-throughs.” Yet it’s not about click-throughs, it’s about consumers’ relationship with the brand right? If it really is about consumers’ relationship with the brand, we may need to reexamine this preoccupation with click-throughs. Are they good? Yes. Are they the best indicator of ongoing engagement? No. They are just one piece of the puzzle and need to be treated as such.