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moments_of_truth

Supercharging retail sales through geospatial analytics
March 2019 | | McKinsey | By Rob Hearne, Alana Podreciks, Nathan Uhlenbrock, and Kelly Ungerman.

A retailer can now use geospatial analytics to understand the interactions between its online and offline channels. With these insights, it can create a higher-performing retail network.
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Is our outlet store in San Francisco hurting foot traffic and sales at our full-price store two miles away? Or is it doing the opposite—attracting new customers and making them more likely to visit both stores? How are our five Manhattan stores affecting our e-commerce revenue? Are they making consumers more likely to shop on our website or to search for our products on Amazon? If we open a new mall store in the Dallas metro area, what impact will it have on sales at our existing stores, at our department-store partners, and online?

The answers to these kinds of questions are increasingly crucial to a retailer’s success, as more and more consumers become omnichannel shoppers......most retailers don’t give adequate thought to the cross-channel impact of their stores. They rely on gut feel or on high-level analysis of aggregated sales data to gauge how their offline and online channels interact.....there’s a way for retailers (and other omnichannel businesses) to quantify cross-channel effects, thus taking the guesswork out of network optimization. Through advanced geospatial analytics and machine learning, a retailer can now generate a detailed quantitative picture of how each of its customer touchpoints—including owned stores and websites, wholesale doors, and partner e-commerce sites—affects sales at all its other touchpoints within a micromarket......US retail sales are on an upward trajectory.....despite the growth of e-commerce, the vast majority of these purchases still happened in brick-and-mortar stores. .....So why have US retailers closed thousands of stores in the past year, with thousands more closures to come?....Because the consumer journey is changing!!......Consumers are transacting in different channels....engaging across multiple channels, often simultaneously rather than sequentially. It’s critical for omnichannel retailers to have a detailed understanding of the interplay between online and offline touchpoints, and between owned and partner networks.

Quantifying cross-channel effects

the starting point is data......from a wide range of internal and external sources. Inputs into a geospatial model would ideally include not just transaction and customer data but also store-specific details such as store size and product mix; site-specific information such as foot traffic and retail intensity; environmental data, including local-area demographics; and anonymized mobile-phone location data.......A simulation model can then quantify the sales effect of each of the retailer’s customer touchpoints on its other channels within a local market. The model must be sophisticated enough to simulate the upward or downward revenue impact of adding or removing a particular touchpoint.

Geospatial analysis reveals that the consistency and magnitude of cross-channel effects vary significantly across channel types and markets.
analytics  bricks-and-mortar  cross-channel  customer_journey  customer_touchpoints  data  e-commerce  foot_traffic  geospatial  gut_feelings  location_based_services  McKinsey  moments_of_truth  omnichannel  privacy  retailers  store_closings  security_consciousness  site_selection 
march 2019 by jerryking
Holding onto your other assets when your number one asset walks away
JULY 2013 Lukasz Gorajek.

The marketing function for any business, particularly a fresh produce business, needs to take a holistic view of its role. When properly appreciated, marketing takes responsibility for the entire supply chain’s experience. Only after a positive ‘complete’ experience will customers and suppliers likely feel attracted, and loyal, to the business and not its key salespersons. Achieving this customer and supplier relationship with the company is, in my experience, the marketing team’s duty.

As a foundation, the marketing department needs to work with human resources to improve the customer and supplier experience across all touch points. Even the best marketing initiatives will underperform or fail if the best team is not available to execute marketing’s promise.
marketing  fresh_produce  customer_experience  thinking_holistically  moments_of_truth 
august 2014 by jerryking
Six habits of successful digital firms - The Globe and Mail
Jan. 07 2014, The Globe and Mail HARVEY SCHACHTER

Strategic Digital Marketing
By Eric Greenberg and Alexander Kates
(McGraw-Hill Education, 352 pages, $31.95).

the Amazon Price Check app on their mobile device, they can be in a store and, by scanning the bar code, see whether that item can be obtained more cheaply from Amazon, which offers lures like free shipping.......a phrase Google uses, "Zero moments of truth," to describe the critical times when consumers use the Internet to evaluate your offering. It might be the Amazon Price Check. It might be a consumer visiting your website and then plugging into social feedback from Facebook and Twitter. Prospects might scan reviews by recent purchasers. This information can be accessed quickly and could determine whether they will deal with you – now, or forever...... little attention is paid to return on investment when digital marketing strategies are developed. They believe that less than 10 per cent of large organizations base their digital initiatives on some measure of financial return on investment (ROI). Instead, the talk is of "likes" that might be generated by a Facebook campaign, or the followers and awareness a Twitter initiative might spark.

"If increasing sales is the ultimate goal, shouldn't we always evaluate digital marketing, and all marketing for that matter, through an ROI lens?"

1. Platform convergence, not product conformity. Companies such as Google, Amazon and Facebook are knocking heads, not operating in the separate niches where they started, but fighting to be the go-to platforms for online denizens.
2. Big data, not blind deductions.These companies rely heavily on data to drive their decisions, rather than guessing. They also run tests to see what might work, learning early from interaction with real customers.
3. Customer experiences, not conventional expectations. The best companies are fiercely focused on customers, relentlessly looking for new ways to refine and improve the customer experience.
4. Networks, not bulwarks.
These firms understand the importance of their networks, such as customers and corporate partners.
5. Top talent, not hired hands. These companies realize the importance of talent, and actively seek the best people they can find.
6. Innovation, not immediate gratification
Amazon  books  conformity  customer_experience  data_driven  delayed_gratification  digital_economy  digital_strategies  FAANG  Facebook  Google  Harvey_Schachter  habits  innovation  marketing  massive_data_sets  mobile_applications  moments_of_truth  networks  platforms  ROI  talent 
january 2014 by jerryking
Pulling More Meaning from Big Data
August 2013 | Retail Leader | By Ed Avis

"A.G. Lafley [Procter & Gamble's CEO] spoke of the two moments of truth," says John Ross, president of Inmar Analytics based in Winston-Salem, N.C. "The first occurs when a consumer buys a product, and the second when they use it. Much of the data today is about orchestrating and understanding those two moments. But two additional moments of truth are emerging to bookend Lafley's. One occurs when a consumer is planning to make a purchase. The other happens following use, when the consumer talks about his or her experience with the product. All of these activities leave a 'data wake' that describes how the consumer is moving down the path to purchase." (jk: going to assume that data wake = exhaust data).

Like most consumer packaged goods companies, Procter & Gamble relies on data to determine what consumers are looking for. "Consumer insight is at the core of our business model. We approach every brand we make by asking the question, 'What do people really need and want from this product? What does this mean to their lives?' Let me be clear – this is not casual observation. We employ teams of behavioral scientists, researchers, psychologists, even anthropologists to uncover true insight based on intensive research and exploration," said Marc Pritchard, P&G's global marketing and brand building officer, speaking at the Association of National Advertisers' 2012 Annual Conference....Most firms haven't advanced beyond localized analytics and don't fully capitalize on the existing data they have at hand – such as POS data, loyalty club data and social media traffic – according to a 2012 Deloitte study for the Grocery Manufacturers Association.
massive_data_sets  Sobeys  grocery  supermarkets  Safeway  P&G  A.G._Lafley  Kroger  point-of-sale  loyalty_management  customer_insights  insights  CPG  exhaust_data  psychologists  psychology  anthropologists  anthropology  ethnography  behavioural_science  hiring-a-product-to-do-a-specific-job  data  information_sources  moments  moments_of_truth 
december 2013 by jerryking
Dell should listen - product recalls can be good
August 16, 2006 | Financial Times | NIRMALYA KUMAR and NADER TAVASSOLI

* Companies need to realise that such crises are about more than simply minimising legal liabilities. The challenge is not to allow a product recall to threaten the entire brand or company.
* Understandably, companies may feel threatened by a deluge of press inquiries, but speed and clarity of response is essential. The media may be converted into an ally, and internally it is vital to maintain staff morale. (JCK: the platform can help here).
* This team's priority should be immediately to assess the source and potential impact of the crisis. Who was hurt? Does it require free servicing, partial recall or total recall? Of course, preparation helps.
* The brand also needs to consider how to get back on its feet.
* A product failure is a moment of truth. A poorly managed response can unmask a brand promise as a hollow boast.
ProQuest  crisis  crisis_management  crisis_response  brands  branding  brand_purpose  Dell  failure  moments_of_truth  preparation  product_recalls  threats  turnarounds 
june 2012 by jerryking
Build your brand - but don't forget to deliver an experience
FEBRUARY 11, 2008 | THE GLOBE AND MAIL | GEORGE STALK.

Brand relationships are not confined to consumer products. They exist with hospitals, taxi companies, cleaners, garages, airlines, restaurants, and more. The strength of a brand experience is inextricably linked to every aspect of buying and using a product, not just to the inherent performance of the product itself.

Before launching that next advertising campaign or promotion, ask yourself how your investment decisions affect the customer experience, and if everyone - from senior executives to counter clerks - is aware of how much the brand's value hinges on the quality of experience you deliver.

Here are some questions to consider.

Can you describe the end-to-end experience, through "learn-buy-get-use-pay-service," that different customer segments experience?

Could you present it in a video for employees?

Do you have specific measures that track your ability to overcome the dissatisfactions (such as long waits for delivery and repairs, inaccuracies in orders and billings) customers encounter as they progress through your brand's experience?

Can you map the ripple effects of problems from misleading marketing claims to consumer distemper to service calls and product returns? Can you measure the economic implication of fixing these problems?

What is the dollar value of delivering an experience that consistently produces brand boosters and eliminates brand blasters?

Brand management is at a turning point. As the cacophony of the marketplace escalates, only those brands that deliver will succeed. Increased advertising investment alone won't move the sales needle: refocus your brand management on the outcomes that matter most - those that affect the lives of your customers.
branding  George_Stalk_Jr.  customer_experience  turning_points  moments_of_truth  product_launches  product_returns  BCG  ripple_effects 
january 2009 by jerryking

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