An article in Barron’s published this last weekend entitled “TV’s Sports Problem” contained this startling forecast: that by 2020, Google and YouTube parent Alphabet, Facebook, and Amazon could have $100 billion in free cash flow in their coffers on a combined basis, compared to $30 billion for broadcasters ABC, CBS, NBC, and Fox. That means the online marketers will have more than three times the amount of money to bid for sports rights, and to create original programming to compete with conventional television channels.
It was the day after Christmas when one of your Friday Forecasters started canvassing a table of Jim Shore holiday figurines that were priced at half-off in the cellar at Macy’s. No other shoppers were paying any attention whatsoever to the display until your faithful narrator started setting some boxes aside indicating purchase intent. Soon, like moths to a flame, the table was surrounded by like-minded individuals who engaged in a kind of feeding frenzy, jockeying amongst one another for the remaining spoils.
Are you worried that your products aren’t effectively reaching your target audience? Frustrated that you need to continue to find creative ways to market products to consumers? It’s complicated.
At the 2017 Government Affairs Fly-In, we were joined by speakers Bala Iyer, executive VP & chief operating officer, Telebrands, Marc Roth, partner, Davis Wright Tremaine LLP, and Jennifer DeMarco, general counsel, All-Star Marketing for a panel entitled, “We’re All in this Together: The Complicated Relationship that Makes up your Direct Response Advertising Campaign.” And the panel was moderated by Ellen T. Burge, partner, Venable LLP.
Retailers beware: A hesitancy to ride the wave of mobile payments could sink your business and submerge your sustainability. The traditional ebb and flow of card-centered purchases is on its way out to sea.
Trusting a mobile wallet, or near field communication (NFC) payment method, may seem dangerous, but your customers want it. And customers usually get what they want.
There’s a lot of talk about shifts in media consumption habits by generation and the implications that it has for the traditional interruptive television advertising model. We know eyeballs are shifting away from TV onto smartphones, tablets, laptops, and desktops, especially among the demographic groups under 35 years of age. We know too that more content is being streamed on a delayed or on-demand basis and that viewers are either fast forwarding past our commercials or foregoing them altogether.
The ramping up of allusions to George Orwell’s legendary dystopian novel 1984 really began in earnest when Edward Snowden revealed the degree to which the American government was surveilling its citizens. But since Donald Trump assumed the office of the United States presidency, such references to the literary classic have revolved more around the notion of Thought Police and Thought Crimes and the idea that the powers that be are manipulating a narrative in order to deceive the public.
For many years, direct response advertising has offered consumers two primary ways of reaching out to marketers: the telephone and the web. Now a third, exciting avenue has emerged: text. Why do we think this is such a compelling opportunity?
There has been a great deal of industry discussion regarding the rapid growth of the consumer retail market in China in recent years. In fact, China is forecasted to become the world’s largest consumer economy by 2024 when it will reach $11 trillion in annual retail spending.
As China develops into a fully-matured consumer market though, growth will inevitably slow and stabilize. However, several other economies in the region are poised to show similarly dramatic growth in the next few years, and retailers should act now to position themselves in the right place at the right time.
There are some eye-opening stats out there about loyalty program engagement: Consumers on average are enrolled in 29 loyalty programs, yet are only active in 12. Six out of 10 customers believe that companies only offer rewards programs to get them to buy more. And 74 percent of U.S. retailers reveal that customer engagement is their number one concern.
At the recent D2C Convention, I presented a session entitled, Trend Spotting: Benchmarking the Present and Predicting the Future of Marketing. My intention was a simple one: to synthesize the latest statistics, forecasts, and best practices in marketing from over 100 different sources to save my audience time and to provide insight that will help you today and in the future. In the second of this six-part series, I'll take a look at online. Given the presentation was limited to an hour, I have had to limit my focus, but hopefully the learnings gleaned will prove helpful to the reader.
At the recent D2C Convention, I presented a Masters Series session entitled, Trend Spotting: Benchmarking the Present and Predicting the Future of Marketing. My intention was a simple one: to synthesize the latest statistics, forecasts, and best practices in marketing from over 100 different sources to save my audience time and to provide insight that will help you today and in the future. Over the next six weeks on consecutive Tuesdays, I will be blogging about each of a half-dozen marketing channels and topics.
“Right now, we’re in a moment in the industry where we have more data on consumers than ever before,” said Mikael Greenlief, Director of Strategy at Giant Spoon, during the keynote luncheon at the 2016 ERA D2C Convention. “Ninety percent of all consumer data has been captured in the last two years.” Because marketers have access to this data, he also noted that they are now able to connect with consumers on different levels more so than what they had traditionally been able to do in the past.
At the tender age of 16 I took my first job: pumping gas at a service station. While the adjoining carwash was already automated, the idea that I might no longer be needed came as a surprise. My initial response was, “No way are people going to pump their own gas and stick a credit card in a machine.”
Fast-forward to today, and it’s a shock there isn’t a sketch of my adolescent self in the dictionary next to the word naïve.
Contrary to popular belief, millennials, a demographic that spends an estimated $600 billion each year, are willing to be loyal to brands and in fact, even more interested in loyalty programs than previous generations.
Millennials make up an increasingly significant piece of the global spending pie. A study from the Dartmouth Center for Marketing Research estimated that Millennials born between 1980 and 2000 possessed a spending power of $2.45 trillion worldwide in 2015. As the younger portion of the generation begins to control more money and become more financially independent, that number is expected to rise, and businesses want to be there when it does.
RetailMeNot, Inc., a leading digital savings destination connecting consumers with retailers, restaurants and brands, both online and in-store, has released a new study titled, “Back-to-School Cheat Sheet: Consumer Trends and Insights for Retailers,” that explores the shopping habits of parents as they prepare for their students’ return to the classroom.
Following are a few interesting statistics.
We live in an age of accelerated technological advancement. With everything they need right at their fingertips, Millennials are having a major influence on a rapidly evolving consumer landscape. A force of 80 million Americans born between 1981 and 2005 with real spending power increasingly prefer mobile payments via smartphones and tablets over brick-and-mortar shopping. Gone are the days of hanging out at the mall. This trend is changing not only the way merchants must connect with customers, but how goods and services are being bought and sold on a grand scale.
Editorial Disclaimer: The statements, opinions, and advertisements expressed on the ERA Blog and other online entities owned by the Electronic Retailing Association are those of individual authors and companies and do not necessarily reflect the views of the Electronic Retailing Association.
The many “truisms’’ of customer loyalty lore are mostly a set of mythologies to deceive the gullible and exploit the innocent. Let us explore these mythologies and then talk about best practices for customer satisfaction and customer loyalty research.
The advertising world will never be the same again. History is being made, and records are being broken. Consumers have made their preferences known, and advertisers need to adjust if they want to retain the competitive edge.
A New Era of Advertising
According to a recent eMarketer study, 2017 is the year that digital ad spend will finally turn the tables on its cord-connected counterpart.
Businesses that want potential customers to linger longer on their websites have an easy tool for making that happen—video. It turns out, giving website visitors text to read or photos to look at isn’t enough to keep them engaged. But add a video and they’ll hang around, on average, an extra two minutes.
Global ecommerce is projected to top USD $1.8 trillion in 2016, and while digital consumers are enamored with the convenience of mobile shopping, analysts are finding that they’re also concerned about some aspects of the ecommerce experience. In its 2015 Consumer Payments Survey, PricewaterhouseCoopers subsidiary Strategy& found that digital shoppers want better data privacy, more assurances of transaction security, and more rewards and offers when they shop online. Ecommerce and mcommerce merchants who address these consumer concerns wisely can build customer trust and differentiate themselves from the competition in the year ahead.
If you ask anyone what the key to successful customer service is, the answer will often be some form of ‘treat your customer how you would like to be treated.’ However, this statement fails to recognize the importance of a personalized customer experience—each individual customer has a preferred form of interaction and treatment.
Did you know the world has a favorite color? It is blue. Blue tops the list across cultures and in business, too. Fifty-three percent of businesses that design their logos on 99designs request blue—that’s almost twice as often as the next most popular color. In retail, three of the top four industry leaders (Walmart, Costco, and Kroger) use blue, too.
But what’s even more interesting is the colors businesses aren’t using—but maybe should. These “invisible colors” can provide an excellent way for retailers to stand out from the competition.
While most of us were busy taking down the Christmas decorations during the first week of January, many others were returning those wrong-sized or otherwise unwanted gifts. That’s why UPS predicted that it would return more than a million packages to retailers on Jan. 6, 2016.
Accordingly, UPS designated this “National Returns Day,” the year’s busiest day for returns. By the end of the first week of 2016, we anticipated processing more than 5 million return packages – 500,000 more than this time last year.