Greg Zakowicz Greg Zakowicz

Cyber 10: The Holiday Shopping Sprint You REALLY Need to Prepare For

Most digital marketers have heard of the Cyber Five, the five shopping days from Thanksgiving Day through Cyber Monday. These five days happen to be the top five online sales days for the entire holiday season, accounting for 19% of all online holiday sales.

And now, within Gray November comes another consumer shopping evolution that will become a holiday season norm — the Cyber 10.

The holiday season is upon us, and, once again, it’s expected to set online sales records to the tune of $142 billion, according to eMarketer estimates. As online sales rapidly increase year-over-year, trends evolve and retailers adapt.

Take Gray November, for example. Over the past couple of years, we have seen those signature stand-alone online shopping days like Black Friday and Cyber Monday morph into a month-long series of discounts leading up to those days.

And now, within Gray November comes another consumer shopping evolution that will become a holiday season norm — the Cyber 10.

In this article, I discuss why marketers need to look beyond the Cyber Ten and pay attention to the Cyber Ten. Topics include:

  • Which days make up the Cyber Ten

  • Why the Cyber Ten is no longer a trend, but an annual occurrence

  • Which days in the Cyber Ten are seeing the biggest year-over-year growth

  • Why Cyber Monday, even with all of the changes, remains king

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Greg Zakowicz Greg Zakowicz

How to Use Social Proof in Email and on Your E-commerce Site

Using social proof, a type of conformity where one person copies the action of another, as a part of the on-site e-commerce experience can be an effective strategy for increasing sales. A social proof strategy is essentially influencer marketing, except the focus is on real customers.

Luckily for companies — especially online retailers — they already possess a lot of content that can be used for social proof. Here are a few ways retailers can utilize this content in their email marketing programs and on their e-commerce site to influence purchases.

Using social proof, a type of conformity where one person copies the action of another, as a part of the on-site e-commerce experience can be an effective strategy for increasing sales. A social proof strategy is essentially influencer marketing, except the focus is on real customers.

Luckily for companies — especially online retailers — they already possess a lot of content that can be used for social proof. Here are a few ways retailers can utilize this content in their email marketing programs and on their e-commerce site to influence purchases.

In these two articles, I write about ways to use social proof in both email marketing and on your website, and cover topics such as:

  • How to Use Product Reviews in Email Marketing

  • How to Use Social Media in Email Marketing

  • How to Use Your Employees in Email Marketing

  • Using product reviews, website Q&A sections, and employee picks on your e-commerce site

  • Using social proof in other channels

READ ABOUT USING SOCIAL PROOF IN EMAIL MARKETING

READ ABOUT USING SOCIAL PROOF ON YOUR WEBSITE

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Greg Zakowicz Greg Zakowicz

Primed: How Amazon Finally Converted Me

If you know me, or have ever listened to The Commerce Marketer Podcast, you know I am not a Prime member.

Until now.

I know, right? I spend my life analyzing the ecommerce world, ordering my products online, and yet I rebuffed all of Amazon’s attempts to draw me in. But the scale finally tipped. It was slow and gradual. I saw the writing on the wall. I finally got to the point I could no longer rationalize not subscribing. This was years in the making. But in all of this, there is a lesson for retailers to learn from my journey.

So, what took me so long to sign-up, and what changed? Let’s explore.

If you know me or have ever listened to The Commerce Marketer Podcast, you know I am not a Prime member.

Until now. Dun dun dun.

I know, right? I spend my life analyzing the ecommerce world, ordering my products online, and yet I rebuffed all of Amazon’s attempts to draw me in. But the scale finally tipped. It was slow and gradual. I saw the writing on the wall. I finally got to the point where I could no longer rationalize not subscribing. This was years in the making. But in all of this, there is a lesson for retailers to learn from my journey.

So, what took me so long to sign up, and what changed? Let’s explore.

Why Not Prime?

Why was I so resistant to Prime? It’s not like I didn’t shop on Amazon, but, frankly, the value I received compared to my lifestyle did not match. Like other consumers, I have come to expect free shipping. While Prime offers a lot more than free shipping, I always viewed it as paying for shipping. People commonly point to the free shipping as a main reason for subscribing.

Competition with Amazon also benefits non-Prime members. Consumers today have options: If I needed items in a relative hurry, Target and Walmart would often get it to me within two days. Many times, it would arrive the next day. If I needed something that day, I would just run out and grab it. And, not to be forgotten, prices on Amazon were frequently higher — sometimes drastically — than elsewhere. Every time I would see this it would cause me to take pause on a free trial.

Were there times I would have liked one-hour delivery? Sure. But those occasions were more the exception rather than the rule.

And those extras, like Prime Video – I didn’t need them. I have Netflix, a television package, Apple TV, and Roku devices at home. I also have two children, which means my television time is further reduced. I have enough content to satisfy me. Others, however, may be able to take better advantage of those services.

What Changed?

It was a gradual change, but one I noticed along the way. First, I live in an area with one-hour delivery. I saw that as convenient, but again, more of a nice-to-have than a necessity. Then came the emergence of Alexa-enabled devices, which interests me – and I think this is going to be huge. Then came the big one: Amazon acquired Whole Foods (WF). I am a Whole Foods-first household. This acquisition intrigued me because I knew something would come of it.

I have also had an Amazon credit card for years. It is one I rarely ever use. However, as a non-Prime member, using this card at WF allows me to receive 3% cash-back at Amazon. Prime members receive 5% on the same purchases. This is something I had to take a serious pause to consider. The question I asked myself was whether the 2% difference would pay for Prime. After all, I am shopping at WF anyway. For one month, I tracked how much I received with 3% cash back and calculated how much the extra 2% would have been. Then, on two trips, I was given the in-store Prime member discounts while checking out. Amazon is sneaky like that. Based on my purchases, I saved roughly $3 per trip with the in-store discount alone. If I shopped two times per month (which I easily do), this would extrapolate to roughly $72 per year. Amazon was breaking down my walls.

Then came Prime Day 2018. It all changed. Not because I care about Prime Day itself, but because Amazon announced that if you shop at WF the week of Prime Day you would receive a $10 credit to spend on Prime Day. I bit the bullet and signed up for a free trial. GASP! Of course, I got the $10 credit. But to my surprise, so did my wife. Now I am at $92 saved. On Prime Day itself, I again saved $3 on member-only sales.

After Prime Day, I received an email from Amazon thanking me for everything and giving me another $10 credit toward an Amazon purchase through August. And of course, I ran out of batteries two days later. Guess what I did? Now I am up to $102. If you throw in the extra 2% I have spent during the first two weeks of my trial membership, I have surpassed the $119 price tag.

Is this enough to keep me renewing? Maybe. Maybe not. But I am excited to see what’s next. What I am most anxious about is same-day WF delivery to my area. I expect it sooner or later. Now you’re talking value that fits my lifestyle!

What Retailers Can Learn

At the end of the day, Amazon took a slow and steady approach. But they kept at it! Ultimately, they added value to my experience, with both cost and convenience. As a retailer, how do you compete with Amazon? It’s imperative you understand how your brand and products fit into your customers’ lives. Reinforce this value at every step along the customer journey, from email to your website to your social channels. Make it hard for people to say no to you rather than finding a reason to say yes.  

Consider email marketing, for example. When it comes to email, make sure your automated emails speak to what matters to them most. Do they care about price, convenience, quality of products, satisfaction guarantees, flexible return policies, a commitment to a cause, or a combination of these? Are your marketing emails relevant to consumers and help them along their journey?

Most importantly, be patient. Focus on improving one thing at a time. Improving 10% of 10 things will get you nowhere. Continue to make things better and see them through to completion. Optimizing the customer experience and providing value to your subscribers is what will ultimately win them over.

I am now a Prime member, but am I an Amazon loyalist? Certainly not. Amazon is hoping I am like other Prime members and will spend an extra $600 year more than non-Prime members. I am not confident that I will be that person, but I am 100% confident they will get more of my business than they had before.

Kudos, Amazon, you finally got me! But you have made me more paranoid than ever. I know that brunch, heat index, and wind chill are reading this and see this as their hope to win their own fight with me.

But those are topics for another day.  

Like reading my thoughts on Amazon? Here are a few other stories you might enjoy:

Amazon 4-star and What It Could Signal for Amazon’s Future Retail Business

Why Amazon is Trying to Out‑Walmart Walmart

Future of Ecommerce: How Amazon and Giant Retailers Will Change in 10 Years

Alexa, Order Me Browserless Commerce

The Commerce Marketer Podcast:

Episode 036: How to Get Amazon Reviews & Why Your First 50 Matter

Episode 034: Marketplace Bootcamp: Keys to Successful Selling

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Greg Zakowicz Greg Zakowicz

When Is the Best Time to Send Your Brand Emails?

When is the best time to send emails?

This question has been around as long as email marketing itself. If you do a quick search, you’ll find tons of different studies pointing to a variety of answers, leaving retailers just as confused as before. The common result: Brands are flooding consumer inboxes with emails at seemingly random times throughout the day.

When is the best time to send emails?

This question has been around as long as email marketing itself. If you do a quick search, you’ll find tons of different studies pointing to a variety of answers, leaving retailers just as confused as before. The common result: Brands are flooding consumers' inboxes with emails at seemingly random times throughout the day.

This over-saturation, especially when combined with a lack of relevant content, can quickly lead customers to unsubscribe or let unread promotions sink to the bottom of their inbox—never to be opened.

Let’s explore some of the nuances of the “best” email send times, debunk a few common myths, and review why you should be looking beyond the email open.

The Best Time of Day to Send Marketing Emails

Identifying the best time to send depends greatly on the products you sell and the makeup of your audience. For example, millennials and Gen Zers are digitally-native consumers. They have their mobile devices with them at all hours of the day and use them all the time. Assuming they’re only opening their emails somewhere around the 10 a.m. lull at work is a very misguided and antiquated notion. Sure, it might be true for some, but it’s not likely for both generational cohorts.

While millennials may be working, Gen Z consumers may be at school or just hanging out with their friends. The same principle holds true for evening sends. Does your target audience interact late in the evenings? For younger cohorts, the answer may be yes, but for baby boomers, it may be less likely. For me, 5 p.m. to 8 p.m. is a marketing black hole. During that time, I’m eating dinner, playing with my children, and getting them ready for bed. Sending me an email at 6 p.m. is a wasted effort. But for households without children, it might be the perfect send time.

Another thing to consider when sending an email is the dreaded time zone. Even though you may want to reach your West Coast customers at 10 a.m., remember that means the same email will reach your East Coast fan base at 1 p.m. Always be sure to factor this into the equation, especially for particular messages. If you run a “lunchtime” flash sale and send the email just before noon West Coast time, your message may miss the mark for those in other time zones who are already well into the afternoon.

The Best Day of the Week to Send Marketing Emails

A very popular school of thought has been that Tuesday, Wednesday, and Thursday were the best days to send, and weekends should be avoided. More on this in a moment. But this is another rule that has since gone by the wayside. Brands are sending more now than ever before, so focusing on one singular send day for your emails is not an option for most.

That doesn’t mean you shouldn’t find the optimal days for your customers. As I mentioned with determining the best email send times, when trying to find the ideal day, look at the products you sell, as well as your audience and their social lifestyle. Sure, some brands or products may not have much success on the weekends, but others may find that weekends are the best days. I have worked with companies on both ends of this spectrum. It’s all about understanding how your product appeals to your consumers and knowing how to engage with them.

Now, for those pesky weekends. Times have changed. People now have access to their email in their pocket 24/7. Are we really supposed to believe they don’t check it or shop on the weekends? Does Amazon not sell products on the weekend? Of course, people shop on the weekends! And with the ease and ability to shop whenever you want, there’s almost no reason to avoid sending on those days.

One more note: This shopping convenience has also given rise to the, let’s say, “tipsy” shopping phenomenon. This tendency to shop while feeling a little loose likely accelerates on Friday and Saturday nights. Based on your target audience, these days of the week may actually be quite powerful.

More on which days are the best to send your marketing emails here.

The Next Step

If you want to determine the best day and best time to send emails, testing and tools are critical. Use them to understand your audience. Using data analytics is a must. Take time to review your previous send data. Organize your email open and click-through results by the time and day when your brand emails were sent. But remember: If you’ve typically been sending on a particular day of the week, your data will be skewed and show that the best open rate comes from that day.

Begin by looking at the time of opens. You should see a relatively consistent pattern here, but try to look for patterns. For example, when sending an email, the majority of your opens will happen closest to the send time and decline accordingly. But if you routinely send emails at 9 a.m., but your opens spike at 1 p.m., this should tell you something.

Once you’ve determined your general baseline, formulate a testing plan for both send times and days of the week, but preferably not at the same time. Focus on one before the other. You can then optimize as you go along. Be sure to use the send time optimization tools your commerce marketing platform provides. This can help you maximize the effectiveness of your email send times.

Go Beyond the Email Open

While I’ve focused on the best days and times to send emails, the open rate is only a piece of the bigger email marketing puzzle. Of course, you want as many people to see the emails as possible, but if they don’t result in conversions, what good are they doing?

Finding the balance between improving open rates and conversion rates is critical. If you find your open rates increasing but conversions lagging, something is missing. We know that consumers today are predominantly checking their email on their mobile devices. Are your emails mobile-friendly? If not, you not only lose the potential sale, but the consumer may stop opening your emails altogether, knowing the experience will be lacking. Is the content of your emails relevant, helpful, and engaging?

Sending batch-and-blast messages is not meant to engage individuals. If you do send batch-and-blast messages, incorporate individual and engaging elements in them, such as intuitive, subscriber-specific product recommendations or user-generated content. If you’re sending an email about preparing for the snowstorm in the northeast to those who live in Miami, don’t expect strong conversions from that segment, even if they all open your email.

Final Thoughts

Connecting the right time to the best day to the right content will help you create a more consumer-friendly customer experience. Your goal is to refine your marketing programs, create unique customer journeys, and ultimately earn more revenue. Need help?

Email campaigns serve as a bridge between brands and consumers. When done correctly, they allow you to effectively communicate and interact with your customers. So don’t waste the opportunity. Adapt to the changing consumer behavior and look beyond the outdated “myths” to find the send time that’s right for you.

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Greg Zakowicz Greg Zakowicz

The Importance of Relevant Recommendations

Imagine this scenario. You’re staying at a hotel, and you visit the concierge for a great dinner recommendation. You give him all sorts of information, including your craving for surf and turf. You tell him about the vintage red wine you like and your wife’s favorite chardonnay. You say you want a relaxed, romantic atmosphere – nothing too loud. After sharing all of those details, the concierge recommends the local sports bar. Wouldn’t you have expected more? Would you think less of the concierge and even the hotel chain as a whole? This same kind of interaction happens between retailers and consumers every day.

Imagine this scenario. You’re staying at a hotel, and you visit the concierge for a great dinner recommendation. You give him all sorts of information, including your craving for surf and turf. You tell him about the vintage red wine you like and your wife’s favorite chardonnay. You say you want a relaxed, romantic atmosphere – nothing too loud. After sharing all of those details, the concierge recommends the local sports bar. Wouldn’t you have expected more? Would you think less of the concierge and even the hotel chain as a whole? This same kind of interaction happens between retailers and consumers every day.

Such a disconnect can quickly turn consumers off and send them searching for other options. They are demanding personalized experiences and have come to expect relevant recommendations in exchange for sharing information about themselves. In fact, according to a recent Bronto-commissioned survey of U.S. consumers, 60% of millennials and 45% of Gen Xers expect retailers to make product recommendations based on their past purchases. Yet just 21% of millennials and 9% of Gen Xers are always satisfied with the recommendations they receive. What a major gap between expectation and reality.

When they’re done well, product recommendations are a powerful tool for connecting with consumers and making them feel like you truly understand them. They can be used in virtually any email, from day-to-day promotional emails and automated lifecycle messages, such as post-purchase and browse recovery, to order and shipping confirmations. They can even stand on their own as recommendation-only emails. And the best part is they don’t cause any additional strain for your likely lean email marketing team.

In this article, I’ll discuss:

  • The dos and don’ts f using product recommendations

  • How to make your product recommendations stand out

  • Potential pitfalls to avoid

Click here to continue reading on Multichannel Merchant.

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Greg Zakowicz Greg Zakowicz

Are Loyalty Programs Still Doing Their Job?

It’s a pretty disloyal world out there, but can you really blame the consumer? Online shopping has never been easier, and stores have been stepping over each other to see who can offer the deepest discount. While discounting your way to a one-time purchase might work in the short term, at the end of the day, you need to aim for a higher prize: customer loyalty.

Many retailers attempt to accomplish this with an official loyalty program. There’s just one problem – they rarely work.

It’s a pretty disloyal world out there, but can you really blame the consumer? Online shopping has never been easier, and stores have been stepping over each other to see who can offer the deepest discount. While discounting your way to a one-time purchase might work in the short term, at the end of the day, you need to aim for a higher prize: customer loyalty.

Many retailers attempt to accomplish this with an official loyalty program. There’s just one problem – they rarely work.

In this article, I’ll discuss:

  • What makes a good loyalty program

  • Why customers don’t feel loyalty to programs

  • Examples from Starbucks, Macy’s, Bruegger’s Bagels, and Amazon

>>> Click here to continue reading on multichannel Merchant <<<

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Greg Zakowicz Greg Zakowicz

The Threat of Disappearing Brands in the Age of Voice Assistants

When you see a red and white can of soda or a Peter Pan silhouette on a jar, you see a brand. You know the product. But what happens when you don’t have those visual cues to draw you to certain items when you shop?

Brands used to rely on traditional advertising to embed their brand imagery in our minds and remain visible and relevant to their audience. But in today’s digital-first world, consumer attention is more fragmented. Television screen time is declining, while time spent on smartphones and other mediums is increasing. This has created challenges for brands trying to stay in front of consumers.

When you see a red and white can of soda or a Peter Pan silhouette on a jar, you see a brand. You know the product. But what happens when you don’t have those visual cues to draw you to certain items when you shop?

Brands used to rely on traditional advertising to embed their brand imagery in our minds and remain visible and relevant to their audience. But in today’s digital-first world, consumer attention is more fragmented. Television screen time is declining, while time spent on smartphones and other mediums is increasing. This has created challenges for brands trying to stay in front of consumers.

Voice assistants add an additional layer of uncertainty to the traditional means of keeping us brand loyal. With devices like Siri, Google Home, and Amazon’s Alexa-enabled options, consumers are relying more and more on browserless interactions. In fact, comScore predicts that 50% of all searches will be voice searches by 2020. That’s not that far away.

But while performing informational searches is one thing, the idea of searching for products and actually buying them via browserless commerce is quite another. This begs the question: if consumers are searching and buying via voice, will this erode the value of brands as we know them?

The Age of Voice Is Upon Us

Amazon claims it sold millions of Alexa devices over the Black Friday weekend and that the Echo Dot was the top-selling item on the website worldwide during the holiday season. That equates to a lot of people saying, “Hey Alexa, order me batteries.” In this scenario, the first result you get is for Amazon private-label batteries. So how do Duracell and Energizer compete with this? How do their branding efforts influence a consumer’s purchasing decision when those visual brand cues are no longer available? Are either of these two brands stronger than Amazon? Battery sales figures from Amazon indicate they’re not.

And what about those instances when Alexa fails to deliver the brand name you’re looking for and suggests you open a browser to find it? With convenience so in demand, you may opt to purchase the suggested non-branded product just to avoid spending one more second shopping for batteries. If you’re willing to take the extra step to switch devices just to make the purchase, you must really love the brand.

What Do Voice-Assisted Consumers Want?

There is no doubt that the post-Gen Z generation, often referred to as Generation Alpha, will have voice assistants as a part of their everyday life. Gen Z is coming of consumer age during this evolutionary period, and they have the spending power and skills to navigate technology. And what about millennials? According to eMarketer, thirty million were expected to use voice assistants monthly in 2017. So, what do these consumers want from the experience, and how can brands provide it?

Millennials are loyal to strong brands. And they’re drawn to both value and hyper-convenience. What does this have to do with browserless commerce? In a recent conversation with millennial marketing expert Jeff Fromm, he said this age group is loyal to brands when the brand is strong, but will trade down when it is weak. If you pair that idea with the millennial interest in value and convenience, you understand the magnitude of the challenge brands are facing. Voice assistants are the definition of hyper-convenience.

Millennials also appreciate value, which doesn’t always mean the lowest price. Think bang for the buck. It’s one reason millennials often mix brand names and private labels. If we use the Amazon battery example, Amazon hits the trifecta: a strong brand, value, and convenience. How can brand-name battery makers compete?

But millennials are just one example. Other generational groups share many of the same values. In a browserless era, brand-name paper towels, peanut butter, ketchup, underwear, mouthwash, or any other branded basic runs the risk of fading away without the visual cues that advertising built and in-person shopping enhanced.

What Can Marketers Do?

Focus on communicating your value in a way that gives consumers a reason to verbally request your brand. For example. I love Utz’s old-fashioned hard sourdough pretzels. Not pretzel rods, or small twists, but the big ones that crack my teeth! I need to convey to my wife, who does the majority of shopping, why she should specifically request that product and not settle for the recommended sourdough rods.

The same goes for when the household’s usual shopper isn’t the one ordering from the voice assistant. In the store, I might be able to recognize the laundry detergent we use by its color and logo. Without that visual, how do I choose the right one? My instinct might be to order the recommended product or the cheapest one. How you differentiate your product from generic brands is critical.

Voice assistants also change the SEO game. How we speak will become more important than the words we type into a search engine. As a non-SEO expert, I would optimize for voice by writing and producing web content in a conversational style. Consider what consumers might ask when searching for your product and how your product or content might help solve their needs. For example, I might ask, “Hey Google, what’s the best way to keep my toes warm in cold weather?” Would the content you produce or the way you write your sock’s product description be relevant enough to return a query result?

In an age of voice, the potential for brand erosion certainly exists. How far will it go? Frankly, we don’t know yet. This evolution should force existing brands to rethink how they target and interact with their audience. Staying top of mind at a time when consumers are constantly connected, value is weighted, price comparison is commonplace, and convenience is essential is difficult. And it’s especially true when the actual device returning the consumer’s request may be a direct competitor. Will brands as we currently know them be forever changed by this evolution?

In the age of voice, a familiar logo is no longer enough.

 

This was originally published on Multichannel Merchant.

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Greg Zakowicz Greg Zakowicz

Millennials: From Punchline to Powerful Consumers

By now, you’ve heard the term “millennial” a million times over — and with good reason. They represent 25% of the US population and hold $1.3 trillion in spending power, which has turned them into quite a powerful consumer group.

Millennials have mostly been given the credit, for better or worse, for redefining consumer expectations. These expectations now go well beyond millennials, prompting retailers to change how they engage and market to consumers of all ages.

By now, you’ve heard the term “millennial” a million times over — and with good reason. They represent 25% of the US population and hold $1.3 trillion in spending power, which has turned them into quite a powerful consumer group.

Millennials have mostly been given the credit, for better or worse, for redefining consumer expectations. These expectations now go well beyond millennials, prompting retailers to change how they engage and market to consumers of all ages.

So, what do millennial consumers want? What do they care about? And how can retailers adapt?

It all starts with the smartphone. Thanks to the access these devices grant, millennials are consuming a lot of content. They read – and value – things like product reviews. They digest what’s happening on social media, both from brands and their peers. They watch videos. And yes, they communicate with their friends and family.

While content consumption is one thing, how brands drive action from them is another.

Building Millennial Loyalty

There is a notion that millennials are not loyal to brands, but this isn’t quite accurate. In fact, millennials are loyal to brands that clearly communicate a meaningful purpose and core values – and stand by them. They’re also more likely to stand behind a company that makes philanthropy part of its mission. They’re not going to go with a brand based on name alone, no matter how long the brand has been around.

For this generation, convenience is not only important, but it’s also essential. And ultimately, the consumer, not the company, defines convenience. Your brand may think four-day shipping serves its needs, but in this age of two-day, same-day, and even two-hour delivery, it may not be enough. To some consumers, four days can seem like an inconvenient eternity.

Millennial marketing expert Jeff Fromm takes it one step further and says it’s not convenience they care about, it’s hyper-convenience. As a retailer not named Amazon, you should think of ways to create customer experiences that make people want to engage with you and talk about your brand. After all, people don’t Google or ask Siri to find them an average restaurant or an average pair of shoes. To appeal to millennials, you need both a good product and good service. Here are a few ways to think about upping the experience you offer to millennial consumers.

Employees: Think about your frontline employees. Customer service representatives and store associates can help create an exceptional consumer experience. Train them to be advocates for the company. They are, after all, the face (or voice) of the business. If they’re unhelpful or treat people poorly, don’t expect repeat customers. In today’s age, news travels fast.

Content: The strategic focus here is to give consumers the information they desire when they go to look for it. Are your in-store product counts online accurate? Do you offer product reviews or how-to videos? Can I easily reach your customer service department to ask them a question? Providing easy-to-access content helps millennials navigate their customer journey.

Inspiration: Great brands inspire people to create great content. Does your brand inspire content creation, such as Instagram posts or product reviews? I don’t mean simply sending an email asking customers to review their purchase, but actually providing inspiration for doing so. Do you make consumers want to share with you on social media? Look at your messaging strategy – does it feel authentic or forced?

Email Marketing: Are your emails relevant and timely? Consumers, especially millennials, will quickly tune out generic batch-and-blast emails. Think of opportunities to send a more targeted email, such as browse recovery messaging, or adding product recommendations and user-generated content to your messages. In fact, according to one of our recent studies, 60% of US millennials fully expect stores to provide recommendations based on their past online purchases.

The customer journey today is more fragmented than ever before, especially for digitally native shoppers. Consumers today may still touch all four bases on a baseball field, but they may not do it in order. But if you can optimize your strategy and give them what they want at each stop, you’ll be a brand they remember and come back to time and time again.

For more information on marketing to millennials, check out episode 14 of the Commerce Marketer Podcast. Listen on Apple Podcasts.

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Greg Zakowicz Greg Zakowicz

Holiday Predictions Recap: Did I Hit the Mark or Shoot My Eye Out?

The holiday season exploded, much like a shot fired from a Red Rider carbine action, 200-shot, range model air rifle, with a compass in the stock and this thing that tells time. Back in October, I laid out my predictions for the 2017 holiday season. Now it’s time to take aim at my predictions and see whether I had Black Bart in the crosshairs or ended up shooting my eye out.

The holiday season exploded, much like a shot fired from a Red Rider carbine action, 200-shot, range model air rifle, with a compass in the stock and this thing that tells time. Back in October, I laid out my predictions for the 2017 holiday season. Now it’s time to take aim at my predictions and see whether I had Black Bart in the crosshairs or ended up shooting my eye out.

Where I Hit the Mark

Prediction: More Mobile Sales
Last year, mobile accounted for 30% of all online sales. I predicted mobile sales would increase to roughly 35%.

Result: We all saw this coming. Mobile accounted for 40% of online purchases, 33% of online revenue, and 56% of traffic, according to Adobe. If I’ve said it once, I’ve said it a million times; if you’re not optimized for mobile, you’re not optimized.

Prediction: Early Sales

Online holiday sales will start in October.

Result: Seeing as every day in November drove $1 billion in online sales, we know people were shopping the deals early. From my personal inbox, the incentives offered by retailers during the final week in October were right in line with those offered in November.

Prediction: Exclusions Apply

You will see fewer “off everything” promotions and an increase in discounts on “select items.”

Result: I did notice an uptick in select categories of sale items, such as discounts on pajamas one day and sweaters the next. While I did see exclusionary sales, I think they were handled much better than last year. Last year, in many instances, I would cart items only to find out at checkout that they were not discounted. This year, I noticed the sales having their own sections on websites and emails clearly defining which categories of products were on sale.

Prediction: Black Friday and Cyber Monday

I predicted both days would drive over $1 billion in mobile commerce and that the promotions for these days would start on Sunday or Monday prior.

Result: Black Friday raked in nearly $1.9 billion in mobile revenue, nearly 37% of all of Black Friday’s online revenue. Cyber Monday became the first day ever to reach $2 billion in mobile revenue, setting a new mobile benchmark.

Black Friday wasn’t just a day – it was a weeklong event. Even though Gray November was in full effect, many retailers started their Black Friday earlier that week. I made 92% of my purchases prior to Black Friday, and the other 8% on Black Friday itself. The deals were out early.

Prediction: Thanksgiving Day

I predicted that Thanksgiving Day would cross $2 billion in online sales for the first time ever.

Result: Online sales clocked in at $2.87 billion for the day. This day keeps growing as a critical online shopping day.

Prediction: Browserless Commerce

I predicted voice assistants would be the hottest sellers of the season, with Amazon devices being the No. 1 sellers in this group.

Result: Well, Apple’s HomePod was delayed until 2018, handing market share to Google and Amazon, and Google did not disclose how many devices were sold during the holidays.

But does it even matter? Amazon appears to be the big winner here. Amazon’s David Limp, head of devices, said that millions of Alexa-enabled devices were sold over Black Friday weekend. Amazon later said the Echo Dot was the top-selling item on the website worldwide during the holiday season, while the Fire TV Stick was runner-up. Can households claim Alexa as a dependent?

Prediction: Amazon’s Take

Amazon captured 38% of the online holiday sales in 2016, and I predicted this figure would inch up to the 45% mark.

Result: Amazon is king. GBH Insights estimated Amazon accounted for between 45% and 50% of online sales during the holidays. On Thanksgiving and Black Friday, Amazon accounted for 45% of online transactions among the 50 top retailers, according to Hitwise. Amazon also announced Cyber Monday was its best day ever, surpassing even Prime Day. Considering they were responsible for 44% of all online sales in 2017, this all sounds like just another day in Amazon-land.

A Few Half-Baked Holiday Results

Prediction: Even More Mobile Clicks
In Q4 2016, mobile accounted for nearly 57% of paid search clicks, with 47% coming from smartphones. I predicted we would see continued increases.

Result: At the time of writing, the data is not yet available. However, with 56% of holiday traffic coming from mobile, I would expect this prediction to be a successful one.

Prediction: In-Store Exclusives

In an attempt to drive in-store traffic, I predicted you might see a rise in brick-and-mortar retailers offering “off everything” or deeper discount sales for in-store only.

Result: There was a noticeable increase in retailers offering an additional discount, on top of the online discount, for shopping in-store. However, a relatively small number offered store-only discounts. In fact, I was astounded to see some omnichannel retailers make specific mention of the discounts being for online purchases only. Why would they not want their customers to come into the store? If anything, make it available in both places.

Prediction: Re-engineering the Brick-and-Mortar Experience
I predicted we’d see a lot of in-store-only Black Friday and Cyber Monday sales, as well as some in-store price-matching.

Result: While there was a noticeable rise in extra in-store incentives, there seemed to be relatively few in-store-only sales for these signature days. This might be why Shopertrak reported that foot traffic to physical retail stores was down 1% on Black Friday.

And to no one’s surprise, Black Friday deals were widely available for the entire week (and weekend) of Thanksgiving. Looking at my own inbox, more than 20% of all email subject lines contained the term “Black Friday” on the Monday before.

And yes, price-matching was seemingly everywhere. Stores like Dick’s, Walmart, Best Buy, Sears, Newegg, and even Amazon, in some cases, all deployed price-matching strategies during the holidays.

Prediction: Email Marketing Will Continue to Dominate

Result: This one is still pending, as complete data is still being analyzed. Adobe did report that on Cyber Monday, email drove 24.9% of sales, closely followed by the 22.9% from paid search. My inbox was extremely busy. In November, I received almost 25% more emails this year than last year. Year over year, Bronto sent more than 25% more emails on both Black Friday and Cyber Monday. Email continues to be a highly effective marketing tool for retailers.

Where I Shot My Eye Out

Prediction: More Billion Dollar Days.

I predicted we’d see 60 of the 61 days in November and December rake in $1 billion in online sales, up from the 57 days in 2017.

Result: 58 of 61 days topped the $1 billion mark. Every day in November reached this milestone, further reinforcing Gray November as a mainstay, not a trend. While improving upon last year, December let me down. Come on, December!

Prediction: The largest online shopping day of the year

I predicted that for the first time, Black Friday – not Cyber Monday – would be the largest online shopping day of the year.

Result: Here’s the big one. I predicted Black Friday to be the online king of the year. My reasoning was based on the industry-accepted benchmark of 2016 Black Friday and Cyber Monday online sales of $3.34 and $3.45 billion, respectively. We have been seeing this gap seemingly close year over year. Inexplicably, when the 2016 baselines were referenced, these numbers were surprisingly different, at over $4.3 and $5.65 billion each day, respectively. What a difference! While the industry thought Black Friday was about to catch Cyber Monday in sales, these adjusted numbers show that this wasn’t quite the case.

All in all, this year’s Cyber Monday reportedly clocked in at $6.59 billion, and outperformed Black Friday by $1.5 billion. Although Cyber Monday has some breathing room as king of online sales, Black Friday, at over $5 billion, is no day to smirk at.

And What About My “Bold” Predictions?

Predictions:

  • Starbucks will take flak over its holiday cup design. ‘Tis the season!

  • I will once again purchase my tree on Black Friday.

  • Fruitcake, while good in theory, will continue to be a poor party dessert.

Results: A little, yes, and yes!

The Starbucks cup design faced only minor controversy this year. Hey, someone has to complain, right?

I again purchased my tree on Black Friday, but not from the usual store. Upon arriving at my usual retailer, I was greeted with a ghost town. My local fire department’s tree lot was the winner this year. I absolutely loved my tree, and that usual retailer may have just lost my tree business forever.

And no, I did not serve fruitcake at my holiday party.

While not all of my predictions for 2017 hit the target, coming up with them is always fun. And by all accounts, this holiday season was great for consumers looking for a deal. Although retailer margins may have been squeezed, retailers certainly benefited from the high shopping turnout. This year, I look forward to seeing who Amazon acquires (I have my thoughts), how consumer behaviors will shift, and how retailers will adapt to meet their needs. These will, of course, all affect my predictions. Hopefully, next year, my predictions will be more like a Red Rider and less like pink bunny pajamas. Only time will tell.

 

This was originally published on Multichannel Merchant.

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Greg Zakowicz Greg Zakowicz

Confessions of a Holiday Shopper: Why I Didn’t Wait Until Black Friday

This holiday season was predicted to be the best yet for online retailers – and it was. Fifty-eight out of 61 days drove over $1 billion in online sales, including every single day in November. Gray November, the month-long period of deep discounts, is now commonplace. But do people buy more or simply buy earlier?

This holiday season was predicted to be the best yet for online retailers – and it was. Fifty-eight out of 61 days drove over $1 billion in online sales, including every single day in November. Gray November, the month-long period of deep discounts, is now commonplace. But do people buy more or simply buy earlier?

This year, I wanted to find out how early discounts affected my own shopping behavior and see what lessons it might offer for retailers. So, I conducted a little experiment.

A Little Background

My yearly holiday shopping comes with a double whammy. See, my wife’s birthday falls one week before Christmas. After buying gifts for my wife and the kids, my digital wallet looks more like a countdown clock in an email message, getting smaller and smaller as the seconds tick away.

I traditionally draft my gift list a few days before Black Friday and then purchase over that weekend. But this year, I pivoted. Having tracked the Gray November phenomena over the past several years, I felt confident that the discounts would be just as strong prior to Black Friday weekend as during it.

You can’t write about holiday shopping (or conduct your own holiday shopping experiment) without addressing the elephant in the room – Amazon. Although I purchase from Amazon, I am not a Prime member. Am I allowed to say that? I guess the first step is admitting it. As a non-Prime member, here's what I was looking for in my shopping experience:

  • Could other retailers compete with Amazon for my attention and wallet?

  • Would I regret buying “early”

  • Was Amazon the right retailer, or did someone else offer value or service that was better?

  • In the end, how much wallet share would Amazon nab, and why?

Let the Purchasing Begin

Although my very first purchase took place on November 13, my primary shopping started on November 16. I completed 75% of my shopping prior to Thanksgiving Day and 92% prior to Black Friday.

To Amazon or Not to Amazon?

HitWise reported that Amazon accounted for 55% of Black Friday sales and 45% of Thanksgiving Day sales. For the holidays overall, GBH Insights estimates Amazon accounted for about a 50% share of online revenue.

For me, 33% of my purchases were made on Amazon, accounting for 11% of my wallet. However, my November 13 purchase was a one-time, big-ticket item. By removing this specialty purchase, the adjusted wallet share Amazon earned from me jumps to 29%. Even though money spent is money spent, I view this adjusted 29% as a more accurate number, as it's based on my typical gifting habits.

One of the main reasons I chose Amazon was the convenience of buying many diverse products in a single order at a price that was comparable to or better than a competitor’s. When the price was comparable, I mostly leaned toward Amazon for value-add reasons, such as my confidence in their customer service.

But Amazon certainly lost out on a few of my purchases. Twenty-five percent of the time, the price was higher. Another 25% of the time, I was concerned about the quality of the Amazon offerings (particularly the private-label offerings), and 17% of the time, Amazon didn’t carry what I was looking for.

My Black Friday purchases all came from Amazon. I purposely shopped for the items prior to Black Friday, placed them in my cart, and left them abandoned. The prices at this time were comparable to other sites, and I knew that come Black Friday, I’d get a deal somewhere. Interestingly enough, Amazon was the one that came through with the largest price drops.

Customer Service and the Consumer Experience

I had two notable customer service experiences while shopping. The first was from Amazon. For one purchase, I ordered a product that was fulfilled by Amazon. The product quantity showed there were six remaining. One full day after placing my order, I received an email from Amazon stating the item could not be fulfilled due to the product not being in stock. But the website still showed the product as in stock and ready to ship. Needless to say, I found this to be a very poor customer experience.

On November 18, I placed an order from a national omnichannel retailer. They had a 50% off sale on several items I was shopping for. However, one of the items on my list was not on sale. The question became: do I purchase now or wait to see if the other item goes on sale? I assessed the situation. Because they offered free shipping and free returns, I had nothing to lose. After all, if they discounted the item later, I could simply return the order and place a new one with all of the items on sale.

So I purchased, paying full price for the one item. The very next morning, the full-price item went on sale at 50% off. Because it was less than 24 hours since the order was placed, I emailed customer service asking if they would credit the difference. They declined to do so, instead instructing me to sign up for their emails so I don’t miss a future sale. Umm, OK. Instead, I let them incur the cost for not only shipping the new order but also processing the return. This incident reduces my chances of doing business with them in the future.

These two experiences highlight a lesson for retailers: Be sure the product counts on your website are accurate and that your customer service policies allow you to meet customer expectations. In both cases, I had a negative experience. For Amazon purchases, I’m skeptical of the value of paying for Prime. For the other retailer, knowing they won’t address a simple price adjustment gives me little confidence that they would satisfactorily address a more complex customer service issue.

Final Thoughts

I’m just one shopper, but I feel confident my buying behaviors are fairly representative – customer service and value trump price. Don’t leave the success of your business dependent on discounts. If you're a retailer, spend the next six months forging stronger relationships with your customers. Review your customer service policies. When issues arise, don’t just say you’re sorry. Go out of your way to make things right! Communicate value-adds that are meaningful for your customers.

When it comes to purchasing from you or a competitor, give shoppers a reason to choose you. If you rely on price alone, you’ll eventually lose.

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Greg Zakowicz Greg Zakowicz

Top Retail Trends for 2018: Industry Experts Share Their Predictions

Many in the industry called 2017 a “retail apocalypse” and there were certainly strong elements of this. There were hundreds of store closings and several major bankruptcy filings as companies felt the ongoing pain of retail’s evolution. But the year ended on a high note with loads of anecdotal evidence of stronger-than-expected holiday sales; final figures will be in later this month.

Below, some industry experts provide their predictions on where retail, and B2C commerce in general, will be headed in 2018.

(Intro by Daniela Forte) In 2017, we saw a tremendous number of changes happen in the retail industry. Artificial intelligence and virtual/augmented reality were just starting to take flight in terms of marketing to customers.

Amazon bought Whole Foods, changing how we thought about grocery as a whole. Voice ordering was all people could talk about as products like Amazon Echo and Google Home were changing the way people shop.

We saw Walmart take aim at Amazon with its checkout-less stores, its offer of free two-day shipping, testing in-home grocery delivery, and partnering with Google to make it possible for customers to voice order. The list goes on here.

We can expect to see more of the in-store and online battle as retailers push to win over customers by meeting them where it’s most convenient and catering to their needs and expectations.

Many in the industry called 2017 a “retail apocalypse,” and there were certainly strong elements of this. There were hundreds of store closings and several major bankruptcy filings as companies felt the ongoing pain of retail’s evolution. But the year ended on a high note with loads of anecdotal evidence of stronger-than-expected holiday sales; final figures will be in later this month.

Below, some industry experts provide their predictions on where retail and B2C commerce in general will be headed in 2018.

Greg Zakowicz

Amazon, Walmart and Winning Over Customers

Brick-and-mortar stores will continue trying to position themselves as a more customer-friendly shopping option. Meanwhile, online retailers will keep offering deep discounts to attract and retain customers. Consumers will continue to demand free and quick shipping, as that is the new standard. Brick-and-mortar, if done right, can use this to their advantage by enhancing their buy online, pickup in store (BOPIS) offerings.

One big battle will be in online grocery, where the likes of Amazon, Walmart, Target, and Kroger are all trying to find ways to win over customers in the at-home-delivery market. This will not be solved in 2018.

The most intriguing aspect to me is how voice will continue to develop. Amazon is already trying to figure out how ads can be delivered via this medium. For name brands, figuring out how they will be able to compete in this Amazon-driven environment will be critical to defining if they view the ecommerce leader as friend or foe.

Who will Amazon acquire next? From a retail standpoint, they’re making a move into the superstore-type format. This will not only help them sell more private label brands but also provide a location for BOPIS and returns, which in turn cuts shipping costs. I don’t think all the Target chatter makes sense. A store footprint the size of Kohl’s seems about right to me. Ultimately, I see the bigger news story with Amazon being in the business and entertainment space, not just in direct-to-consumer retail. I can see something that would overlap with Amazon Web Services, such as an ecommerce platform solution. I could also see a media creation/distribution company acquisition that would make them a much stronger player in not only acquiring new Prime customers, but also becoming a major over-the-top media provider.

This was originally published on Multichannel Merchant.

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Greg Zakowicz Greg Zakowicz

2017 Email Marketing Report Card: Did Your Program Make the Grade?

As 2017 finds itself in your rearview mirror, ask yourself a question. What changes did I make to my email program in 2017 that had a significant impact? It’s a simple question, but I bet many of you won’t have a good answer. Some of you are likely doing the same thing now at the end of the year that you were at the start of it, possibly due to the rush of day-to-day execution or limited internal resources.

Here’s a checklist to help you plan for 2018:

As 2017 finds itself in your rearview mirror, ask yourself a question. What changes did I make to my email program in 2017 that had a significant impact? It’s a simple question, but I bet many of you won’t have a good answer. Some of you are likely doing the same thing now at the end of the year that you were at the start of it, possibly due to the rush of day-to-day execution or limited internal resources.

But email continues to be a powerful marketing tool. According to Econsultancy, 73% of in-house marketers worldwide said that email marketing provided a strong ROI, the most of any marketing channel. Yet, it’s too often overlooked or taken for granted.

While you may be planning to grow your email ROI in 2018, it will require some reflection and careful planning. Take a good hard look at where your program started and ended the year, and why you did or did not accomplish your goals.

Here’s a checklist to help you plan for 2018:

Review your previous goals. What were your 2017 email marketing initiatives? If you didn’t commit to any specific goals in 2017, keep reading. Now’s the time to start planning and setting goals for the coming year.

Document major accomplishments. Look at your program from the top down. What were your major accomplishments from this past year? Did you implement any new email programs, such as browse recovery? If so, how are they performing?

Optimize your messages. If you made an effort to optimize your messaging in 2017, how has it performed? Did the changes work as intended? If not, why? If so, how can you apply these principles to other messages in 2018? Don’t stop there. How can you further optimize your messages in 2018?

Assess incomplete goals. Which initiatives are left undone, and why? What roadblocks prevented you from accomplishing your goals, and how will you overcome them in 2018? And here’s another question. How much revenue did you leave on the table by not reaching these goals?

Plan for 2018. What key initiatives do you want to achieve in 2018? How much will each help your overall email program?

Analyze your resources. If you realize that you simply can’t get things done, ask for help. Find someone internally who can lend a hand. Look for partners, such as your email provider, who might be able to guide and assist you with executing your vision. Find outside third parties who may be able to help. There’s no shortage of help out here.

Don’t set it and forget it. Always look at the numbers and identify areas for improvement. If you don’t change the oil in your car, it will eventually stop working. The same goes for your automated messages. Consider editing subject lines, freshening up hero images, changing verbiage, updating template layouts, and split-testing multiple versions of your messages. What looked good two years ago may be stale and out of date today.

Don’t stop with best practices. Just because you implemented new programs this year doesn’t mean they can’t be improved. Remember: Best practices are not the endpoint, but rather the starting point. How can you make these messages more relevant for your subscribers?

Doing the same thing and hoping for better results is not only impractical, but it’s not a sustainable model for success, particularly now that consumers are more in control and expect more from retailers. If you haven’t done so yet, it’s time to come up with your roadmap for improvement. Perhaps you’ll focus on product recommendations, behavioral segmentation, optimized automated messages, user-generated content, or a combination of them all. I recently wrote about several strategies for doing just that.

With so much available out there to help you improve your email ROI, you should be asking yourself not “What can we do?” but “How much can we do?”

 

This was originally published on Multichannel Merchant.

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Greg Zakowicz Greg Zakowicz

Why Amazon is trying to out‑Walmart Walmart

Cash is king. Well, actually, Amazon is king. And it certainly creates a lot of cash. Not only does Amazon continue to dominate e-commerce, but it also impacts almost every line of business—from supermarkets to web services. Now it’s even getting into pharmaceuticals.

The folks over at Amazon are not dumb. They test, and they try. Often times, they even fail. But while they push the limits of getting to market, they’ve also proven to be patient. More importantly, they’re very calculated.

Cash is king. Well, actually, Amazon is king. And it certainly creates a lot of cash. Not only does Amazon continue to dominate e-commerce, but it also impacts almost every line of business—from supermarkets to web services. Now it’s even getting into pharmaceuticals.

The folks over at Amazon are not dumb. They test, and they try. Oftentimes, they even fail. But while they push the limits of getting to market, they’ve also proven to be patient. More importantly, they’re very calculated.

Walmart is trying to become Amazon. Ironically, though, I see Amazon as actually trying to become Walmart. Why? Because while e-commerce is growing, 92% of retail sales come from brick-and-mortar stores. Brick-and-mortar sales will continue to give up share to e-commerce, but e-commerce won’t replace it. People will continue to shop in-store, and Amazon knows that.

Here’s why I think it makes sense for Amazon to get into the supercenter game. I’m sure they’ll come up with a snazzier name, but let’s call it Amazon Life. Anyway, let’s explore this a bit, shall we?

Brick-and-Mortar: We all know Amazon is no longer an ecommerce pure-play. It has its own book stores, it now has Whole Foods (and is expanding pick-up lockers in some locations), it has stand-alone pickup lockers, and it’s also partnered with Kohl’s. This partnership makes Kohl’s a return hub for Amazon customers, as well as a place to purchase some Amazon products, such as the Echo. From what I can tell, the only reason Kohl’s agreed to this is that they believe in the “if you can’t beat ‘em, join ‘em” philosophy. I don’t see this ending well for them.

I envision Amazon using Kohl’s as a testing ground to track how many returns are actually made at these locations. Are people willing to drive to a physical store to make returns? If so, how frequently? Will this additional flexibility increase the rate of return, or will it remain steady? I’ll bet Amazon is analyzing this very closely.

Kohl’s, on the other hand, is likely banking on the idea that when someone returns an item, notably clothing, they might stick around to shop for better-fitting replacement items. While this makes sense, it’s not sustainable. Amazon offers too many products for Kohl’s to bank on generating enough clothing returns and related sales to expand its market share. Amazon has over a dozen private labels in the clothing category alone and is showing no sign of slowing its expansion in this category. Why would Amazon want to potentially lose sales to Kohl’s, whose shoppers are the perfect demographic for some of its own product lines?

Shipping costs continue to rise and eat away at margins. Having a more central location where consumers could pick up orders, even same day, could cut these costs significantly. According to fulfillment software vendor Temando, 82% of shoppers said they want the option to buy online and pick up in-store. The cost of paying for returns would be significantly reduced as well. Much like the Kohl’s model, consumers would bring their returns to the store. And, oh yeah, as with the Kohl’s theory, people may want to shop for a new size or product to replace the return while they’re there. The good news here is that all the money would stay with Amazon.

Amazon’s private labels. They continue to be big sellers, and they’re constantly expanding. This includes the most recent launch of Amazon’s first two furniture lines. With over 30 private labels, there will be no shortage of products to display in-store, especially with the fashion lines. I’m going to guess that clothing makes up a large percentage of Amazon’s returns. And with the investment made in the Amazon Look [the version of Echo with a built-in camera], having a local store to assemble a wardrobe for try-on makes sense. It should also help reduce back-and-forth shipping costs under the current Prime Wardrobe subscription model.

The Whole Foods play. The chain is already a brick-and-mortar presence with over 400 stores, but they’re often cramped. Being able to buy groceries (even for pickup) while grabbing a new USB charger, a pair of socks, and your prescription refill all in one stop certainly sounds like a win-win for consumers. It has been for Walmart. This combination into a supercenter format should allow for a more streamlined distribution process.

Amazon pharmacies. While it doesn’t yet have the permits to operate an actual pharmacy, Amazon is certainly going to get there. Now, unless it purchases a drugstore chain (which is quite possible), it will have to either build out stand-alone drug stores (too costly), integrate them into an already cramped Whole Foods space (not likely), or simply be mail-order-only (least likely).

Amazon warehousing and fulfillment. Consolidation into storefronts could provide Amazon with even more leverage when dealing with brands to use its warehouse and fulfillment services. Knowing consumers could buy and pick up same-day would create some urgency for brands to want to keep their product both in stock in stores and for quick shipping online. Brands would likely need to pay for larger Amazon warehousing, increasing Amazon billings.

Showrooming. Of course, consumers love showrooming. Just ask Best Buy! This is especially true for larger purchases, such as TVs. Too bad Amazon doesn’t sell electronics. Oh, wait. You won’t need to visit a showroom and then check Amazon for its price.

Data suggests that millennials and Gen Zers actually like going into stores, but they’re also quite comfortable shopping online.  More importantly, they value time, convenience, and the experience. Many retailers lack a focus on the in-store customer experience. Amazon doesn’t—and won’t. You can bet that people walking into an Amazon Life (name not official) location would be greeted with convenience and excellent customer service.

Could This Change Prime Memberships?

Consider this. If all of this happened, Amazon might have the ability to differentiate Prime offerings, such as Prime Standard and Prime+. How would they differ?

Just hypothesizing, Prime Standard could be similar to what you have today. Free two-day shipping and free returns, as well as other media-type services. There would remain a charge for Prime Pantry deliveries; however, instead of offering same-day delivery for free, you would instead have access to same-day pickup at one of their locations.

Prime+ could be offered at a slightly higher price point and include the same-day delivery as an added option. You may even have the delivery charge for grocery orders waived one time each month. You could look for other added benefits to either program, such as tying in meal or fashion subscription services in some way.

So, while Walmart is chasing Amazon, I think Amazon quietly has its sights set on being more like Walmart. Being able to physically provide a customer-centric experience that Prime and non-Prime members alike have come to expect from Amazon can go a long way toward further cementing customer loyalty to the brand.

Brick-and-mortar isn’t dead. It just needs to be done better! And I bet Amazon will be just the one to prove it to us.

 

This was originally published by Internet Retailer.

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Greg Zakowicz Greg Zakowicz

New Year, New Emails, No More Excuses

With email continuing to be one of the top-performing online marketing channels, I guess it shouldn’t be a surprise that my inbox is overrun with bland, generic emails. Why change what seems to be working? But change is inevitable. If you don’t believe me, just look at what evolving consumer expectations have done to many legacy retailers.

The fact is, while some strategies require larger resources or investments, many do not – and those that don’t can pay huge dividends. Make 2018 excuse-free. Roll up your sleeves, and improve your email program. Here are three ways to get started.

With email continuing to be one of the top-performing online marketing channels, I guess it shouldn’t be a surprise that my inbox is overrun with bland, generic emails. Why change what seems to be working? But change is inevitable. If you don’t believe me, just look at what evolving consumer expectations have done to many legacy retailers.

First, a look at some numbers. The Relevancy Group reports that U.S. marketing executives attribute 23% of total revenue in Q2 2017 to email, a 21% year-over-year increase. But other research suggests consumers expect more. A Flagship Research report from 2016 showed that 62% of consumers expect website browsing behavior to be used to personalize emails, and 76% expect the same with purchase history. Relevance matters to consumers, especially when it comes to marketing emails.

Traditional promotional emails can still deliver revenue, but relevant, personalized emails can deliver much more. I know, you don’t have a lot of resources at your disposal. I know, it’s only you running the show. And yes, I know you already have a welcome series (well, really, I hope you do). But I also know an excuse when I hear one.

The fact is, while some strategies require larger resources or investments, many do not – and those that don’t can pay huge dividends. Make 2018 excuse-free. Roll up your sleeves and improve your email program. Here are three ways to get started.

Step 1: Reassess Your Welcome Series

If a 60-year-old man and an 18-year-old woman sign up to receive your emails, will they receive the same welcome series? If the answer is yes, you need to make adjustments. Consumers expect relevance. Sending the same message to both subscribers is not that.

There are a couple of ways to do this. Look at what page, or category, the sign-up came from, and deliver specific messaging based on the acquisition source. If they signed up from the maternity category, customize their messaging to match. If they signed up on the men’s swim trunks page, do the same. Apply this strategy not only to the first message, but the entire series as well. Tracking the source is easy to do with a simple piece of source code, a field identifier or by using a unique sign-up form. The best part is that you can implement this tracking before any messages are even created, which gives you valuable segmentation information on your subscribers before new welcome messages start sending.

In lieu of this tactic, or in addition to it, determine the welcome series based on the actual clicks inside of your welcome email. If a subscriber receives a generic welcome message and clicks on the maternity navigation bar link, the next message should be maternity-focused. The same goes for other clicks. This allows subscribers to control their own onboarding experience. One company that tried this saw increases in every email metric for the customized message versus the generic one. The personalized message generated 140% more revenue than the generic version, while making up only 3% of the volume of sends.

In both instances, setting up the automation and tracking the data are extremely easy to do. And messages can be created and implemented one at a time. Gradually implementing new messages will require fewer resources for execution because it’s not an all-at-once strategy. As a bonus, think about all of the segmentation data you’ll capture with this click behavior while implementing your plan.

Step 2: Personalize Your Cart Recovery Strategy

Should a customer abandoning $800 worth of products receive the same message as the customer who abandoned one $50 item? Their obstacles to conversion and motivations for purchase are likely very different. Yet, in most cases, each gets the same message.

Why not customize the message to overcome potential hurdles? You have a lot of cart data readily available that can help you make these messages more relevant. For products themselves, look at things like cart total, SKUs, product category, margin of products, sale price, what gender would likely use it and/or sale end date. Consider the actual shopper by looking at their purchase history, such as recency of last purchase, lifetime AOV or total number of orders.

Such data can help you determine how to overcome conversion obstacles and what types of messages to communicate to the would-be buyer, including when to send them, how many to send, and what types of incentives to offer, if any. Addressing the shoppers’ needs – for example, communicating about installation and haul-away services for specific cart SKUs – can be a great way to address the individual shopper. Personalizing messages in a meaningful way, while protecting margins, lets both customers and retailers win.

Step 3: Think About What They Want

While relevant lifecycle messages can drive significant revenue, so too can your promotional messages. Crafting 50 segments to use in daily promotional emails isn’t realistic for most retailers, but you don’t have to settle for generic batch-and-blast messaging either. Inserting intuitive product recommendations into your emails is an excellent way to make emails more relevant.

Using product recommendations that take into account individual browsing and purchase history, email content, and even your select business rules can deliver powerful results. Think about your everyday promotional email sends. With a batch-and-blast strategy, each message is relevant to only a portion of the audience at any one time. With individual recommendations, some part of that message will be relevant at all times.

Include recommendations not only in your promotional messages but also in any triggered message, such as order and shipping confirmations, birthday messages, post-purchase messages, and even cart abandonment emails. You can even use recommendations as stand-alone email content. In addition to being relevant, these types of emails provide a nice change of pace from the standard promotional messages.

The best thing about using product recommendations is that they don’t require extra resources, so you can still focus on growing your email ROI. How does generating 33% more revenue from your emails sound? That’s what one company saw from emails sent with recommendations versus those without. People like personalization.

“Get Busy Living or Get Busy Dying”

This line is from one of my favorite movies, and it sums up email marketing perfectly. Being complacent with your email program in 2018 is not the key to success. In fact, it may be the ticket to gradual failure. With competition coming from every direction, consumers are quick to tune it out. Personalization can help you cut through the noise. Are your emails differentiating you from your competitors? Do they give consumers what they want? If not, 2018 is a perfect time to ditch the monotonous one-size-fits-all messaging and get personal.

 

This was originally published on Multichannel Merchant.

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Greg Zakowicz Greg Zakowicz

Eggnog and Fruitcake: Holiday Predictions That You Can Stomach

With the holiday shopping season about to begin, I thought this would be the perfect time to share my expectations for the end of the year. After all, planning is all about anticipation, and knowing what to anticipate will help you better prepare for the holidays. Here goes:

With the holiday shopping season about to begin, I thought this would be the perfect time to share my expectations for the end of the year. After all, planning is all about anticipation, and knowing what to anticipate will help you better prepare for the holidays. Here goes:

More Billion Dollar Days. 2016 saw 57 of 61 days in November and December rake in $1 billion in online sales. This year, I expect to see 60 of 61 days hit that mark. Why not all 61? Everyone needs a day to rest.

More Mobile Sales. Last year, mobile commerce grew nearly 54% during the holidays and accounted for 30% of all online sales. Mobile sales have been increasing year over year, and this trend will continue. Be sure you’re optimized for mobile because I expect it will account for roughly 35% of all online holiday sales.

And Even More Mobile Clicks. In Q4 2016, mobile accounted for nearly 57% of paid search clicks, with 47% coming from smartphones. Expect this to continue. Mobile is no longer a trend; it’s the way most consumers shop – at least some of the time. The smartphone is now the primary device that the majority of internet visitors use to access the internet. And in the not-so-distant future, it’ll be their primary device for buying online.

Promotions and In-Store Sales

Early Sales. Online holiday sales will start in October. Retailers have been discounting earlier and earlier to get a jump-start on their competition, turning Cyber Weekend into a month-long event that I like to call Gray November. But with Amazon taking in nearly 40% of all online sales last holiday season, and Prime memberships continuing to rise, retailers have even more to lose by not getting an early start.

Exclusions Apply. For the past several years, especially last year, I saw a noticeable trend in holiday sales having mass exclusions. As a heavy shopper during this period of time, I found myself frustrated. But frustrated or not, I expect this trend to continue. You will see fewer “off everything” promotions and an increase in discounts on “select items.” If you plan to restrict sales, be clear as to what is – and isn’t – included.

In-Store Exclusives. You may see a rise in brick-and-mortar retailers offering “off everything” or deeper discount sales for in-store only. This allows a retailer to drive that sought-after in-store traffic, while offering shoppers deeper discounts and no shipping fees. Seems like an obvious win-win.

Re-engineering the Brick-and-Mortar Experience. I expect in-store sales to increase from last year, but not as much as ecommerce sales. You’ll see a large push from multichannel merchants to drive in-store traffic, touting extra incentives for shopping in-store and even discounts for in-store pickup. As 65% of consumers make additional purchases when going in to pick up items, the tactic makes a lot of sense. Expect to see in-store-only Black Friday and Cyber Monday sales (likely all weekend long), as well as some in-store price-matching. While never a long-term model for success, many retailers may find it worthwhile during the holidays.

The Big Shopping Days

Black Friday and Cyber Monday. While no longer the start of the shopping season, these days are still known as deep discount days. Shoppers oblige and spend more online on these two marquee days than any others during the year. But which day is bigger?

  • Both days will drive over $1 billion in mobile commerce.

  • For the first time, Black Friday –not Cyber Monday – will be the largest online shopping day of the year.

  • Of course, the marketing and promotions for these days will start on the Sunday or Monday prior.

Thanksgiving Day. This will continue its growth as an online shopping day and cross $2 billion in online sales for the first time ever.

Marketing Tools, Top Gifts and the Obligatory Amazon Mention

Browserless Commerce. Speaking of the Echo, voice assistants will be the hottest sellers of the season. While I predict Amazon devices to be the number-one sellers in this group, Google and Apple will see significant sales in this arena. The age of voice is upon us. “Hey Santa, bring me a new train set.”

Email Marketing. Email will continue to dominate as an online marketing tool during the holidays. Last year, Bronto sent 50% more messages than they did during Black Friday and Cyber Monday 2015, sending more messages in November than ever before in company history. I know my inbox will be busy.

Amazon’s Take. Amazon captured 38% of the online holiday sales last year, and it will once again own a substantial portion of the holiday ecommerce space. With the rise in Prime memberships and adoption of the Echo, I would not be surprised to see this figure inch up to the 45% mark.

Three Even Bolder Predictions:

  • Starbucks will take flack over its holiday cup design. ‘Tis the season!

  • I will once again purchase my tree on Black Friday.

  • Fruitcake, while good in theory, will continue to be a poor party dessert.

What could go wrong? Apart from the hostility of rogue nation states, what else could throw holiday shopping into a tailspin? How about fallout from the Equifax data breach? Potential widespread credit card fraud resulting from this breach could put a major wrench in holiday spending and shopping habits. Credit cards could be frozen due to fraud, consumers could lose trust in online security when purchasing, and it could over-inflate online sales data if fraudulent sales are racked up. There have already been reports of a 15% increase in fraud as early as August of this year. This lack of trust in security might wind up benefiting major, name-brand retailers, as many consumers tend to put more trust in them.

What do you think you’ll see this holiday season? I plan to watch my inbox, shop my exclusionary sales online, and sip my coffee from a ridiculed Starbuck’s cup, all from the comfort of my living room. Just don’t be a Scrooge and charge me for shipping!

 

This was originally published on Multichannel Merchant.

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