Thursday, May 31, 2012

The Pre-Purchase Behavior of Shoppers.

A study conducted by the e-tailing group on behalf of Local Corporation found that today’s consumers have developed unique pre-purchase behaviors—even when shopping locally—driven by the use of technology and mobile devices. This infographic from looks at the pre-shopping habits of these local and mobile consumers.

Is ‘geofencing’ the best defense against showrooming for physical stores?

Retailers are trying to make smartphones work for them instead of against them. 

Retailers desperately hope the technology—called "geofencing"—can be at least one successful response to the dreaded "showrooming," where a shopper comes into a store to see an item but then makes the purchase online after finding a better price via smartphone.

The idea behind geofencing is to target consumers when they are nearby—and the promotions can get hyper-local, like beaming a special on umbrellas to people within a 10-mile radius during a rainstorm, or touting a markdown on aisle 6 when a customer is walking down aisle 3. 

With Shopkick, Target Takes On Showrooming

Target, whose recent moves have indicated it won’t let price-comparing, smartphone-wielding customers leave their stores without a fight, announced today that it is offering its customers nationwide incentives via the Shopkick mobile app.

The retail giant, which had been testing the location-based shopping app Shopkick in stores in seven cities, is now making it available at all 1,764 stores nationwide. When guests walk into their Target store, the Shopkick app rewards them with points known as “kicks,” and as they walk around the store browsing, they have the opportunity to scan products—ranging from everyday items like food and cleaning supplies to specialty products like electronics and toys—for additional kicks.

Mobile is the future

According to KPMG, mobile payments are set to reach 591bn by 2015 while Gartner predicts that 190m people will use their mobile to make payments in the next 24 months.

Contactless payments might grab a lot of headlines, but in reality this is just a small part of mobile payments technology.

The really interesting part about mobile payments is that marketers can actually engage with consumers from any location, at any time and access an unprecedented amount of knowledge about those they are targeting.

The aim is for consumers to trust mobile payments as much as any other payment methods they currently use.

Another point is that mobile payments need to be open and accessible to all consumers in order to encourage adoption, not restricted to those with a certain mobile handset or bank account.

On the other hand, too many mobile payment offerings at once only serve to confuse: the consumer now has to log into a mobile app to buy their coffee, use another app like Pingit to transfer money, use NFC to pay for their lunch and then go into their mobile browser to order bigger items like TVs online.

If the above is achieved successfully, the future of m-commerce is set to be an exciting time for both marketers and consumers.Even now, as eBay demonstrated, mobile payments can turn any location into a pop-up store and can let consumers make purchases within minutes.

World Map of Social Media

According to a recent report by the International Telecommunications Unionsocial media use has now passed the billion-user mark. Of these, 900m have Facebook profiles. Its massive global following translates into big opportunities for social media marketers to connect with customers in emerging markets.

Below is a representation of various social media networks:

Google+ Local replaces Places, gets Zagat ratings

Google is adding a new entree to its menu: free restaurant ratings from the Zagat review service.

"Now, the world's highest-quality reviews are available to more people, whether they are at their desks or on the go," Zagat founders Nina and Tim Zagat wrote Wednesday on their Google Plus social-networking page.

The decision to turn Zagat into a free online service comes as part of Google's expanded local business listings in its12 search results and the Plus service.

The new business listings, which will also appear on Google's online mapping service and mobile device applications, will also include any pertinent recommendations from within a user's contacts on Plus.

Read full article here

Mobile Payments are growing!

A report from Gartner projects mobile payments this year will reach a massive $171.5 billion on a global basis. Last year mobile payments were roughly $106 billion according to the firm.

The definition of “mobile payments’ being used by the firm is extremely expansive. Hence the large number.
Gartner said that it expects “Web/WAP access to account for about 88 percent of total transactions in North America and about 80 percent in Western Europe by 2016. Near Field Communication (NFC) transactions will remain relatively low through 2015, although growth will start to pick up from 2016.” If that’s right it spells trouble for Google’s NFC-based Wallet, which has been struggling for consumer adoption.
Under the “mobile payments” heading, Gartner’s forecast includes a range of transaction types that are distinct. It includes “m-commerce,” mobile bill paying, SMS money transfers and mobile wallet-type in-store transactions.

Wednesday, May 30, 2012

The Connected Consumer

How well do you know Gen Y?
Here are some interesting points for discovery that get us thinking beyond what we think we know today:
  • 59% update their social status in class.
  • 29% find love through Facebook while 33% are dumped via TXT or Wall posts.
  • Millennials watch TV with two or more electronic devices.
  • Only 11% define having a lot of money as a definition of success
  • Gen-Y will form 75% of the workforce by 2025 and are actively shaping corporate culture and expectations.
  • Only 7% of Gen-Y works for a Fortune 500 company, while startups dominate the workforce for this demographic. Gen-Y expects larger organizations to hear their voice and recognize their contributions, increasing the need for an intrapreneurial culture.
  • Millennials trust strangers over friends and family. They lean on UGC for purchases.
  • They are 3x as likely to follow a brand over a family member in social networks.
  • 66% will look up a store if they see a friend check-in.
  • 73% have earned and used virtual currency.
  • Gen-Y believes that other consumers care more about their opinions than companies do, which is why they share their opinions online.
  • Gen-Y’ers are more connected on Facebook than average users, managing a social graph of 696 Facebook friends versus 140.
The Last Ten years
  • 274 million American have Internet Access, which is more than double that of 2000.
  • 81 billion minutes spent on social networks and blogs.
  • 64% of all mobile phone time is spent on apps.
  • 42% of tablet owners use them daily while watching TV.
  • For the first time, the numbers of laptops have surpassed desktops within TV homes.
Women Rule Gen-C
In 2009, I discovered that in social media, women rule. As you can see in Nielsen’s report, women too rule Gen-C. Specifically, they rule social media, online video, and TV viewership. With smart phones, men and women are tied in adoption. With tablets however, men rule.
Mobile shopping activities include:
  • 38% compare prices online while in shopping in a store.
  • 38% browse products through websites or apps.
  • 32% read online reviews of products.
  • 24% search for or use online coupons.
  • 22% have purchased a product.
  • 22% scan barcodes for product or price information.
  • 18% use location-based services to find retail locations.
  • 27% of male and 22% of female consumers would use their mobile phone to make payments in restaurants and shops if they could.

How online ads help CPG sales

Nielsen Catalina Solutions, a joint venture between Nielsen, the insights group, and Catalina Marketing, the agency, drew on 800 studies from the last seven years, using data from 300 brands and 80 firms.

Mike Nazzaro, CEO of Nielsen Catalina Solutions, suggested companies in the consumer packaged goods (CPG) industry, one of the most valuable ad categories, still under-represented the web in their media mix.

Overall, it was reported that the ratio of incremental sales delivered versus the amount invested in ads - in the form of cost per thousand - based on actual purchase figures reached an average of $2.97.