A new survey from BDO reports that this holiday season, the largest retailers are getting the hang of both social and mobile, and working the brick-and-mortar angle to their own advantage. “Whether it’s Best Buy, Target, Walmart or Toys R Us, we’re seeing that brick-and-mortar stores have learned to adapt and even embrace the mobile shopper,” Stephen Wyss, partner in BDO’s retail and consumer product practices, tells Marketing Daily. “They are starting to see that they have an advantage. Once a consumer is in their store, they are ready to buy. They have already done their research, and even if they are, to some extent, just 'showrooming,’ it gives stores the opportunity to close the sale. Consumers often want that sense of immediate satisfaction, and with things like price-matching, stores this year are doing a great job of offering mobile shoppers a good deal they can have right now.” BDO’s survey finds that of the CMOs at the 100 largest retailers, more than half are now including mobile in their marketing plans, “showing that many are still playing catch-up to the dramatic growth in mobile use.” (Last year, 39% of the CMOs reported using mobile.) Favorite mobile efforts include flash sales and daily deals (the No. 1 mobile priority for 30%) followed by text messages (23%) and mobile coupons (20%.) In some ways, social media has been even more transformative, with 86% of the CMOs reporting that this year, they are incorporating social into their strategy. And they are not just throwing up Facebook pages: The group reports that social now accounts for about 10% of its marketing budget. In fact, digital’s share of holiday promotional budgets is increasing, despite 67% reporting that overall marketing spend is flat this year. Print advertising is still tops for 42%, but 31% say their plan calls for spending the most marketing dollars online, representing a 35% jump from those who said that in last year’s survey. Broadcast spending is the biggest expenditure for 22% of CMOs, down a bit from last year. The survey also revealed that the vast majority are swimming in data, with 93% saying they find it a challenge to integrate and manage all their data, and 40% describing it as “very challenging.” In terms of favorite social efforts, 99% say they are focusing on Facebook, with one in five also using Pinterest, and 51% incorporating Twitter into their plans. “Retailers have really learned some lessons,” he adds, “and realized mobile and social can be big drivers. They are really making mobile, including the apps they’re developing, a nice shopping experience for the customers, making great use of the larger smartphones consumers are using. We all thought mobile would do well for retailers this year, but it’s been fantastic -- even more than most expectations.” And across all social efforts, he says, “the common denominator is building brand image and brand loyalty.”
Car batteries get no respect. They are kind of like kidneys: you don't think about them until they stop working. Sure -- mileage, tires, motor oil, fun features, cosmetics and the transmission are important. But the works are just dead metal if the electricity stops. "Yes, there's a group of consumers who really are loyal to certain [battery] brands," says Tyler Reeves, director of marketing, strategy and innovation at Dallas-based Interstate Batteries. "But what you really need are very timely solutions in semi-emergency situations. Because you don't think about a battery until it dies." To get to the heart of it, the company is launching a campaign, via Dallas-based Firehouse, whose strategy is to outflank competitors DieHard, Exide and Duralast that have a retail distribution at places like Walmart. Interstate Batteries are sold almost exclusively in garages or general automotive repair shops, so the consumer exposure is limited -- and such operations are not typically open in the early morning, evenings or weekends, when people have problems. Thus, the idea is to get the Interstate batteries (and therefore the brand) to people when they really need a new battery. The effort, 866-RESCUE-ME -- initially in Columbia, S.C. and Omaha, Neb., before rolling out nationwide -- gives people dialing in over-the-phone help, a connection to one of the company's 80,000 dealer partners (or independent repair shops), or free on-site battery installation. "We kept looking at data that showed the majority of batteries were purchased in these emergency/semi-emergency situations," says Reeves. "We’re always looking for ways to make our brand promise come to life in a meaningful way to consumers. 866-Rescue-Me delivers on both fronts." The effort includes a radio, TV, digital, out-of-home, mobile and search campaign. In addition to getting the number from ads, consumers can click a mobile digital ad, which delivers the 866-RESCUE-ME number to their phone contacts. "Our brand is built on the promise of outrageously great service one battery at a time. The rescue program is an extension of this," says Reeves. "We are nationwide with good awareness among shops but from a consumer standpoint, not as well known, so we have opportunities." He tells Marketing Daily that the approach is a new one for the brand. "It's one thing to drive awareness with ads. This is different in that it shifts from awareness to solution. It also gives us measurable data: we will be able to see is call volume and lift in markets." He adds that when the number goes nationwide, it will be a benefit from a business standpoint. "We have 80,000 locations that sell Interstate, but until this there was not one number you could call. We wanted to amplify that." The humorous ad has a guy stranded in a parking lot that suddenly becomes the ocean, with his car floating around on an inflatable raft, and sharks circling.
It looks to be a green Christmas for consumer electronics makers and sellers, with U.S. consumers planning to spend 33% more on devices and gadgets than they spent last holiday season. According to a survey of 2,500 U.S. households, average spending on consumer electronics will be $1,058 this year -- up from $793 spent last year, according to Parks Associates. Among the respondents, nearly two-thirds (63%) planned to make a CE purchase this holiday season, almost double the percentage that said they planned to make them last year (37%). The hottest items: tablets and smartphones. “It’s certainly an encouraging sign that you’ve got so many people planning to buy consumer electronics,” John Barrett, director, consumer analytics at Parks Associates, tells Marketing Daily. “Overall, the consumer confidence index isn’t so robust. But in the CE space, things are picking up.” Among all consumers, 26% said they intend to spend more on electronics -- the highest rate since 2008, Barrett says. And for the first time, more U.S. households plan to purchase a tablet than a laptop, netbook or Ultrabook computer, he says. It’s still too early to call the demise of the desktop computer, Barrett says, but the early signs point to consumer attraction of the portability of laptops and tablets as their main computing devices. “There are early indications that we’re starting to see a shift to where instead of a household having a combination of desktops and laptops, we’re transitioning to a combination of laptops and tablets,” Barrett says. “There are some indications that desktops are [being viewed as] more expendable, and that a tablet is a nice way to complement a laptop computer.” In addition, consumers are showing stronger intentions to purchase their devices online (47% of tablet shoppers said they’d purchase online, compared with 35% last year). While this may mean increased showrooming and price comparisons in stores, consumers are also showing a preference for the online storefronts of traditional brick-and-mortar retailers. “There’s certainly a showrooming phenomenon going on,” Barrett says. “But the retail chains still play an important role. I think [their role] may be shifting though, as more of the buying goes online. Is the store just a distribution point, or is it a showroom? And yes -- you can pick up [a product there], but it serves a more interactive and informative role. It will be interesting to see how that phenomenon plays out.”
Sorry, Daniel-Day Lewis will not be the spokesperson for Lincoln Motor. Sure, Lewis is in the movie by that name, Honest Abe does appear in Lincoln's new anthem spot, and the brand is, in fact, named after the 16th president. But the new Lincoln brand ambassador is NFL Hall of Famer (and "Dancing with the Stars" winner) Emmitt Smith. That makes sense, actually, since for the very first time, the luxury brand will be advertising in next year's Super Bowl. Smith will be involved in the lead-up to the game and will be the face of Lincoln at the game, per the company. The Super Bowl advertisement itself will also be a first: it's a consumer-generated social-media campaign in which people co-create the 60-second ad via tweets. Jimmy Fallon will be curating the effort. Specifics aren't clear just yet, but the whole thing gets going on Wednesday. On hand at a Monday press conference about the brand at -- where else -- Lincoln Center, in New York City, were Ford Motor CEO Alan Mulally and Ford and Lincoln Global Marketing Chief Jim Farley. The latter tells Marketing Daily that the purview of Lincoln's new agency, New York-based Hudson Rouge, won't be just advertising and brand positioning for the U.S. market. The agency, he said, will be the source for Lincoln's global brand identity, including in the boomtown Chinese market. "We are one brand around the globe so what we do here and in China is very integrated, in terms of how we present the brand. We may have some differences in China, but that new agency will be in the center of everything we do." Farley said this is also a golden opportunity for Lincoln to grab U.S. market share, since the recession helped change the affluent mindset. Citing a study from the Luxury Institute, he said post-recession shoppers are less brand loyal, no longer want to put off the finer things, and are more likely to favor products that appeal to their desires rather what impresses the neighbors. About a quarter of luxury auto shoppers are, per the marketer, "ready to switch brands. And after the great recession they are looking for something new," he said. In spite of a massive new ad push, the brand's emancipation from the bottom of the consideration list will be led by the four new Lincoln vehicles coming down the pike, per Farley. He said Lincoln is counting features like push-button shifting, and the rather astonishing MPG numbers for MKZ: 45 miles per gallon highway, or city, or combined. Also, per Farley, MKZ Lincoln is the only lux brand offering advanced hybrid at the same price as the gasoline drivetrain.
The Champagne Bureau, USA, has launched a national ad campaign as part of a large-scale effort to reclaim its name in the U.S. marketplace. The sparkling wine Champagne can only come from the region of Champagne, France. The ad campaign is designed to remind consumers of the role location plays in creating wines and to tap into growing American consumer interest in geographic origin. Posing questions like “Maine Lobster from Kansas?,” the ad reminds consumers of the importance of authenticity and of knowing products’ true origins. The ad, which will appear in print, outdoor and digital formats and on the bureau’s website, highlights the gap between American consumers’ growing desire to know the true origins of their purchases and persistent legal loopholes that create confusion about where certain products actually originate. The ads will appear in print and digital formats including The New Yorker, Food & Wine, and Travel + Leisure; on billboards in New York, San Francisco, Los Angeles and Washington, D.C.; and online on websites including The New York Times, Vanity Fair, GQ and The Wall Street Journal. U.S. consumers are seeking information about how and where their wine and other goods are produced, said Sam Heitner, director of the Champagne Bureau, USA, which represents the growers and houses of Champagne. “This campaign uses humor and well-understood U.S. location-based products to encourage consumers to take a moment and consider the authenticity of what they are buying,” Heitner said in a release. “U.S. consumers are savvy, and this reminds them to say ‘of course not’ when faced with products that lack authenticity and to seek out products that come from unique places like Champagne from Champagne, France, Maine lobsters from Maine and Napa Valley wines from Napa Valley, California.” The ad highlights a legal loophole in federal law that allows a few U.S. sparkling wine producers to mislead consumers by labeling their products “Champagne” even though they do not originate from Champagne, France. In December 2006, Congress passed legislation banning the future misuse of 16 wine place names, including Champagne. While that seemed a step in the right direction, the legislation did not address the grandfathering of labels currently misusing Champagne’s name and those of 15 other wine regions. Almost half of the bottles in stores and restaurants still misuse the Champagne name.
Weeks after controversial remarks about cutting back on workers’ hours as a result of rising costs due to the Affordable Care Act, Papa John’s Pizza and Applebee’s are still suffering negative buzz, reports YouGov BrandIndex. In mid-November, Papa John’s CEO John Schnatter was quoted as having stated that franchise owners may decide to cut employees’ hours to below 30 per week in order to avoid higher costs of health care under the “Obamacare” plan. Around the same time, Zane Tankel, CEO of Apple-Metro, who owns 40 Applebee’s franchises in the New York metropolitan area, said he would freeze hiring and consider cutting workers’ hours in response to the health care costs. Also, a few days later, on Nov. 17, Denny’s franchisee John Metz, who also has 40 locations, said he would add a 5% surcharge to customers’ bills and reduce employee hours. Applebee’s parent company DineEquity moved quickly to distance itself from Tankel’s remarks, saying that franchisees do not speak for the brand itself. And Schnatter subsequently wrote a column (published in The Huffington Post on Nov. 20) explaining that franchisees, who make their own business decisions, might feel pressured to take actions to reduce costs, but all employees of Papa John’s corporate and company-owned stores will continue to be offered health insurance. Papa John’s -- which got a PR double whammy in the form of news of a class-action suit alleging that the QSR illegally texted consumers, which broke soon after the health care remarks -- saw its BrandIndex Buzz score drop from 32 on Nov. 6 to 22 eight days later. A few days later, Papa John’s’ score dropped below Pizza Hut’s, and is presently at 4. Applebee’s had a 35 Buzz score on the eve of Election Day. By Nov. 17, its Buzz score had fallen 20 points. As of this past Thursday, its score was 5. Nine days after Metz’s remarks, Denny’s’ Buzz score had declined from 10 to zero -- not nearly as much as its competitors’. Furthermore, unlike Papa John’s and Applebee’s, Denny’s’ score has since rebounded to close to where it was prior to the remarks. YouGov speculates that consumers may have been more responsive to the apology that was issued by Denny’s CEO John Miller a few days after Metz’s remarks. The Buzz score, like other BrandIndex scores, is measured daily. It asks respondents: "If you've heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?" Results were filtered to adults 18 and over who have eaten at casual dining restaurants in the past month.
It’s likely that you have seen the software program that allows you to use a photo of your face to try on different hairstyles. While this may seem a lark, at its essence, this approach is an example of the classic sales truth, “try before you buy.” Consumers today are even more conscious of getting the most for their dollars and especially their time. The traditional consumer path to purchase from at home to the store and in the store can be inefficient. Let’s look at three new technology products -- one at each point along the path -- that are engaging consumers, reducing barriers (with try ons), and getting them to buy. The company Styku offers technology that facilitates the “try on” at home. Their software solution can scan and pinpoint body measurements in less than five seconds in the privacy of consumers’ homes. Once the scan is complete, consumers can view a 3D image of themselves and try on hundreds and thousands of clothes to judge fit and eventually purchase. In addition, Styku can provide an evaluation and suggestions on sizing. It is helping not only consumers, but retailers, by reducing the number one barrier to online apparel purchase: fit. In addition, retailers are using this technology to disrupt the path-to-purchase cycle with a “try on” while on the road and going to the store. Recently, one of Bloomingdale’s New York City locations allowed consumers walking by to virtually try on sunglasses without having to go into the store. As consumers paused in front of a store window and stared into an LCD screen, the interactive display determined the position of their eyes -- and seemingly magically, a pair of glasses would materialize. There were several styles and alternate views (head-on and side profile) to help with “trying-on.” To close the deal, with a push of button, consumers could send their favorite selection to the sunglass department in the store for purchase. In more than 70 malls across the country, high-tech body-scanning equipment, which looks similar to airport security screeners, has been installed. The leading companies providing the technology are Bodymetrics and Unique Solutions Design. Unlike the “at home” and “to the store” examples, where the ability to physically try on is not feasible, the advantage for consumers to being scanned in the retail environment is all about saving time. Shoppers step into a private booth fully clothed, where precise measurements are taken. They are then provided with personalized sizing, SKU, brand and pricing information based on current inventory levels (giving consumers a heads up on what is in stock). Consumers can now efficiently “try on” recommended options and more successfully buy items. The takeaway for marketers is quite fundamental. Consumers want to get the “right” item with the least amount of hassle. Virtual try on is one innovation that is helping to reduce risk and lower barriers to purchase. Consider how your brand can use technology at different points along the path to purchase to engage your consumer -- give them the opportunity to envision themselves with the product or bring the product experience to life. Get your consumers closer to your products and facilitate the shopping experience to ultimately get them to take action and buy.
For all the inflated expectations and "game-changing" promises of big data, there is one place where it is actually paralyzing the very people it was intended to help -- sales reps. The best sales reps I know always do their homework before calling a customer or prospect. They check annual reports, review connections on LinkedIn, scroll through Twitter updates, scan news alerts and refer to their CRM system. They take time to understand their prospects and customers so they can have an edge when placing that call or delivering that pitch. The challenge I am hearing from them, however, is that in our digitized world, it’s taking more and more time to do this research because there is simply more information available. And unfortunately, it is said that less than 0.01% of this information is actually useful for discovering buyer intent. With the average sales rep spending 24 percent of their time researching to prepare for sales calls, according to Aberdeen Research, this means that less time is spent doing the primary responsibilities of a sales rep -- selling and making quota. Professor Eric Brynjolfsson, an economist at the Sloan School of Management at MIT, has found a significant boost in productivity among companies that use what he calls "data-directed decision-making." But as the mountain of knowable information about a customer or prospect grows, is it possible for a rep to manually search all this information? How can the rep possibly consume all this data while continuing to be productive and hit his or her sales quota? This begs the question: Is this era of big data working for reps or against them? CSO Insights conducted a survey of more than 200 sales executives to find the answer. The results? Sales reps are struggling to find the information they need to close deals, even in an era of big data. There is plenty of data out there, but where should a rep look to find the nuggets they need?