24x7 Retailing - Is it Working?
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The document discusses the concept of 24 x 7 retailing and its evolving influence on consumer behavior and marketing strategies. It emphasizes the need for retailers to adapt to consumer-driven product offerings, improved performance metrics, and the significance of sentiment in shaping buying decisions. The three T's framework—thinking, talking, and transacting—is introduced as a method for measuring success in this new retail landscape.
24x7 Retailing - Is it Working?
- 1. 24 X 7 Retailing Is it Working? Peter.Charness@Manthansystems.com 1
- 2. Analytics for 24 X 7 Retail “The Opportunity” • One Hour Offer Expires • The “100” Offer • Proximity & Behaviorally Profiled Mobile Coupon • The $55 TV • NASTYTWEET • (Was the product there to meet demand?) • Did it Work? 2
- 3. The Balance is Shifting - 200 Years of Retail Merch Mktg 3
- 4. The Old Way • Merchants Rule • Retailers Sell what the Buyer Buys – Marketing helps move the products that the customer didn’t understand…….. • Marketing Anniversaries old promotions – “Coordinates” Production • No One is responsible for Stock Outs……. 4
- 5. Dramatic Change The World We’re Leaving Behind The New Reality • Chain Level Assortments • Consumer Driven Product • Chain Level Pricing • Remix by Customer • A Few “Versions” of – Stores Flyers – Web Experience – Pricing • Mass Email • The Product Was the Sell • Time/Proximity/Attribute Based Offers • Selling Customers “a few” at a time 5
- 6. Traditional Measures and Controls Fall Aside? • From the CFO…… – Before: • Marketing can NEVER accurately project expenses • Open to Buy is NOT a GUIDELINE! – Now: • You want more headcount for tweeting for the Merchants? • You want OTB just to support marketing initiatives? M M 6
- 7. Performance Metrics • Sales • GMROI • Operational Productivity • Sentiment? – Returns, Repeat Purchases…… – One Unhappy Customer might tell 10 People – A Happy customer may tell one friend. – Complaints Department • What you didn’t know probably couldn’t hurt you….. 7
- 8. Today “Sentiment” – Speed and Volume • One-quarter of U.S. consumers are far more likely to spread the word about a bad experience or product than a good one, according to Colloquy's latest research into word-of-mouth sharing practices. • “no name blogger” 61,000 readers/week • Tweets • Facebook • ………. 8
- 9. 24 X 7 Retail • Increasingly we sell what we influence and promote • One to One Marketing • More Marketing Budgets and Experimentation • The M&M’s – Unprecedented Coordination Required • Is it Working? 9
- 10. 3 T’s Framework Measuring Success Transacting Thinking Talking 10
- 11. Stage 1 - Thinking Thinking reflects a consumer who is at a stage of interest about your company, or a product (that your company may sell). The consumer is assembling knowledge, rationalizing need, and while at the very front end of a purchase decision potentially on the path to purchase. 11
- 12. Stage 2 - Talking Talking reflects interaction between consumers who have something to say about your company or product. While Talking has always occurred it has largely been invisible and impossible to measure.. 12
- 13. Transacting Transacting the ultimate measure of success being a margin rich transaction and a happy purchaser willing to be a repeat buyer. (Attribution of causality for the purchase is difficult) 13
- 14. Measurement Thinking = Brand • A brand is the essence or promise that a product, service or company will deliver or be experienced by a buyer • Brand Awareness Can Be Measured – Focus Groups, Impressions, – Page Views, Clicks, Search, Stickiness, • Conversions, CPC 14
- 15. WSJ Today 15
- 16. Meaurement Talking - VFS • Social Widgets – Volume – Frequency – Sentiment • Tweets, Reviews, Likes, Blogs, Searches 16
- 17. Measurement Transacting – Recording the Sale – New Dimensions • Who Why 17
- 18. 3 T’s Framework – Why did it Work? Transacting Thinking • Who? • Page Views • Why? • Search • Clicks Talking • Volume • Frequency • Sentiment 18
- 19. Techniques for turning all this new data into profit • Customer Segmentation Analysis – Who’s Buying? – Assortment – Sizes – Unequal Offer • Promotion & Campaign Analytics – Why are they Buying? – Plan vs. Actual – Reasons for Success/Failure • Margins, Sell Through, Stock Outs…….. • “Brand Analytics” VFS – What do they think about us? 19
- 20. New Methods for Information Delivery • Packaged Solutions! • Aggregation • Exception Based Reporting • Alerts • Real Time Data 20
- 21. Is it Working? Promotions/Campaigns 21
- 22. Promotional Analytics 22
- 23. Customer Analytics 23