WMT vs. AMZN: War As a Catalyst for Innovation & The Implications for Grocery Retail

Posted by on Jun 18, 2014 in Amazon, Digital Coupon, Digital Strategy, Loyalty, Online Grocery, Retail Disruption, Strategy, Vulnerability, Walmart | 0 comments

War has always been a great catalyst for technical innovation. And in this particular war, a lot of reinvention is happening as two of the biggest players in the competition for consumer share of wallet are duking it out, big time.  Great rivalries also redefine what is possible, break records, change the rules of the game. See these two recent events:   1. Walmart Uses Rivals’ Discounts to Fuel New Loyalty Program  This is brilliant because: Only Wal-Mart can do it, it builds off of a core strategic advantage…the low prices they are able to secure from suppliers due to their size/volume. It’s a way for them to capture real time pricing info of competitors quickly and efficiently (something AMZN has been doing for a while, and built upon further with their app below). It’s a simple value proposition that naturally evolves into a new level of relationship with their customers…building their digital engagement to higher levels. FYI – Most brick & mortar retailers see digital customer engagement between 5-10% – considering both initial opt-in and ongoing frequency of engagement. As a defensive tactic against the coming ecommerce evolution, all retailers need to be strategizing about how to improve that metric now. Also, for your info, just promising “coupons” has already been tried, by almost everyone and has strong but limited appeal. To get bigger, you must thing broader – as WMT has done here. 2. Amazon just unveiled a new smartphone called the Fire Phone with a Built-In Showrooming App.  If you throw out,for the sake of argument, whether the phone itself is going to be successful or not – the move to include a built-in showrooming app is a critically strategic piece of information for us in this space and the approach is brilliant because: Only Amazon can do it, it builds off of a core strategic advantage…the ability to be everywhere, carry everything and adjust its price “on the fly” based on current price/market information (something brick & mortar stores are going to have to figure out how to do, if they want to combat showrooming attrition). It’s a simple consumer value proposition that is also, a way “into a new level of relationship with their customers…building their TACTICAL, ON-SITE engagement to new levels. If they can get 8-10% of their digital customers to use the showrooming app, the would be huge…an excellent example of usurping a competitor’s advantage to become your own. But what’s important is not the specifics of what these two companies are doing, what’s more important is HOW THEY ARE PLAYING. These are NOT “play nice” moves, and if you – or your team – are hesitating to take action because the path is not clear… let me...

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Data “Toxic” To Retailers (Business Insider)

Posted by on Jun 12, 2014 in Uncategorized | 0 comments

Wow, what a headline. The proverbial double-bind, which I happen to have a lot of experience with, comes to mind here… if you don’t collect data and use it effectively to personalize your service to consumers and keep it absolutely safe… you’re toast.  If you do, you’re a target. Tough world out there for marketers these days. Data “Toxic” To Retailers (Business...

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Almost Half of US Consumers Emotionally Indifferent to Brands

Posted by on Jun 5, 2014 in Brand Purpose, Brand Value, CPG, Digital Strategy, innovation, Learning, Loyalty, Shopper Marketing | 0 comments

This headline caught my attention. As it should catch the attention of any of us who are paid to build, protect and develop brand value. We should not dismiss this, like we dismiss it when consumers say they think products should cost less and that they eat less junk food than we know they do. We should not dismiss it, because the green statistics are signs of things that have been – for US marketers – not of things to come. And we need to understand why, and evolve and adjust our not just our marketing strategy…but our product development and entire go-to-market approach. People grow apart for valid reasons. And consumers and brands are growing apart. Or – more precisely – consumers are maturing and doing grown up things, and we marketers are still loitering around the convenient stores, drinking suicides and trying to get better at Asteroids. That consumers are maturing, thanks to increased access to information and a ton more choices, is not a tragedy! Rather, it is the opportunity of a lifetime – for all of us. Empowered, informed consumers create the context we’ve all been dreaming of…a chance to have a deeper, more meaningful, sustainable, efficient and longer lasting consumer relationship (which is also, by the way, the real definition of “brand loyalty”) . Susan O’Neal Gear has over 20 years of experience at the intersection of consumers, marketing and technology. Passionate about all aspects of a consumer’s relationship with brands and retailers, we’re spending the next year looking for new, groundbreaking thought leadership – if not disruptive solutions – with the potential to redefine the parameters of consumer loyalty. If you also want to see some game changing happen -then follow Upstream Insight, contribute your voice, share this post…do...

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Amazon vs. All Other Retailers: Is It Really An Unfair Fight?

Posted by on Jun 2, 2014 in Amazon, Digital Strategy, innovation, Leadership, Loyalty, Online Grocery, Online Marketing, Personalization, Retail Disruption, Strategy, Target, Technology, Walmart | 1 comment

              I have been pondering this quote from famed author James Patterson, which you may have seen: “Amazon seems out to control shopping in this country. This ultimately will have an effect on every grocery and department store chain and every big box store and ultimately put thousands of mom and pop stores out of business. It sounds like a monopoly to me. Amazon also wants to control bookselling, the book business and book publishing. That’s a national tragedy. If this is the new American way, it has to be changed by law if necessary.” While I understand the frustration that Patterson and his publisher must feel about their lack of leverage against Amazon in negotiating retail price, it would be a greater national tragedy for government to step in and legislate – any more than they already have – an unnatural competitive advantage for brick and mortar retail. Yes, Amazon is out to control shopping in this country. The only way they can do it is by finding better and better ways to serve consumers. Yes, “we” shouldn’t allow Amazon to control shopping in this country. But brick and mortar retailers have an advantage, and should not allow a lack of creativity or fear of failure to serve as an excuse to go whine to Mom & Dad (er’ the government) that someone isn’t playing fair. We should prevent Amazon’s dominance by… (revolutionary thought)… GETTING BETTER AT SERVING CONSUMERS! Brick & Mortar retail has the advantage of proximity (75% of all retail spending occurs within one mile of the consumer’s home, not online), the advantage of “I want to see it before I buy it”, the advantage of “I want to take it home with me now”, and – theoretically at least – the advantage of human touch. Amazon  (and Google Shopping Express and eBay Now and others) are investing aggressively and thinking creatively about how to erode the first three advantages – but what about the last one? How important is the human in retail? It used to be very important, before the age of Big Box and Discount Retail. Before chain retail the shop owner and his family – they were the brand. They gave personal, knowledgeable service. They were the epitome of personalization and high touch. This is what actually got me hooked on marketing technology – the possibility that technology held to make that epitome of the shop keeper/consumer relationship actually efficient. I wonder now, if we marketing technologists and our love of data and analytics have created  more distance than we’ve closed – especially when I read that 52% of consumers believe that shopping is too impersonal (mediapost)....

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