Foursquare Local Updates: Checking In for Checking Out

Businesses find it more challenging than ever these days to get the attention of customers. And, if they are able to get their attention, they are further challenged to create relevant content that is valuable and maintains people’s interest. Location-based social networking site Foursquare has developed an innovation to its service that helps businesses in this regard. It is simple, but the simplicity of the feature is the characteristic that makes it so appealing.

Foursquare has introduced local updates, a feature that lets businesses on Foursquare communicate information to people checking in at stores, restaurants, and other locations on Foursquare. Tips and other information posted by users that have been the core of Foursquare’s concept are being complemented with marketer-delivered information. Examples of how local updates might be used include a restaurant that has new menu items or specials can list them as an update. Or, a minor league baseball team running a discounted ticket promotion for Tuesday night games can communicate it using local updates.

The value of local updates on Foursquare for businesses and users is simplicity. Information is not being communicated through costly advertising – no loud music, celebrity endorsers, or other trappings of media advertising messages are needed. A restaurant analogy used to describe the local updates feature is that it can be used like a sandwich board displaying daily specials. If engaging customers has become the holy grail of marketing, Foursquare’s local updates is a small step toward achieving that quest.

Even if a business is not using Foursquare, it can apply the idea behind local updates, considering whether other channels exist to communicate with customers in a simple, low cost way. Consumers value information; it helps them make more informed decisions. Meet customers where they are, whether it is on Foursquare, other online channels, or offline, by being an information resource for them.

Think Beyond Transactions for Mobile Marketing

Creating mobile apps for your business today bears some similarity to developing a website circa 2000. It is still novel, all of the “cool” brands are doing it, and there are potential business benefits… you just may not be sure what they are. Perhaps you have come to the conclusion that the amount of revenue that a mobile app would generate does not justify the time and expense of going mobile. However, findings from a recent study by Deloitte Consulting on mobile shopping may change your thinking.

According to the study’s results, mobile marketing influences 5.1% of all retail sales in the U.S. That means 95% of sales are coming through other channels, so if mobile is not pursued right now that’s OK, right? Nope. You must look beyond direct sales to find the influence of mobile apps. Some of the most interesting findings included:

  • 50% of consumers surveyed owned a smartphone (and penetration will continue to increase over time)
  • Conversion of shoppers using a retailer’s mobile app is 21% higher than those not using the app
  • The influence rate is expected to reach 17-21% by 2016, translating to more than $600 billion in retail sales

These figures are impressive, but long-term forecasts of emerging technology adoption often are overstated. So, let’s take a look at the influence mobile apps have on shopping behavior as evidence of their value:

  • 25% of shoppers use a retailer’s mobile app the day before a planned visit to the store
  • 52% use a retailer’s app on their way to the store (let’s hope they are not driving!)
  • 61% use a retailer’s app while in store

 These statistics reveal the true influence of mobile apps today – they are a valuable information source before and during a shopping trip. Tech-savvy shoppers that know what they are looking for or prefer not to seek out help from a salesperson are using mobile apps as a resource to assist in making buying decisions. Mobile apps represent an opportunity to persuade buyers at a very critical place – in front of merchandise. And, apps do not call in sick or expect raises like salespeople (coming from the former retail manager in me).

Consider what a mobile app could do for your business. Informing customers, engaging them with your brand, and of course, facilitating transactions are appealing incentives for going mobile.

MediaPost Research Brief – “Mobile Shopping Growing Exponentially”

Distribution Lessons from ‘Bibles and Beer’

A recent USA Today article shared how some churches are taking their messages to a very nontraditional location: taverns. With names such as “Bibles and Beer,” churches are experimenting with distribution models that take the product to the people. Some church goers may question the appropriateness of using watering holes as a gathering place for bible studies or watching televised church services. But, the practices profiled in the article are a call for marketers to reflect on how they should approach product distribution.

Holding bible studies in taverns to deliver faith experiences is a viable strategy because:

1. Business is down – The number of people regularly attending traditional worship services has been in decline or stagnant in recent years. Alternative distribution models should be evaluated as a means to energize sales.

2. Consumer need exists – Church attendance may be down, but it is not because people do not feel a need to explore their faith. A variety of reasons keep people away from traditional churches; taking a product or experience to environments where people feel comfortable enables them to meet their needs on their terms. Other services have successfully used this type of distribution model such as medical clinics at work sites and supermarkets.

The practice of holding faith-based events in taverns will probably not fundamentally alter the delivery of religious experiences in this country. But, it represents an innovation, adding new value to customers by making it more convenient to explore one’s faith. Can your business apply the “meet them where they are” distribution model to increase sales while meeting customer needs? Do you use the same channels for reaching customers that you have always used? If yes, you are likely missing sales because customer needs are a moving target, changing over time. If your distribution approaches do not adapt to the market, you are likely missing sales that an enterprising competitor will gladly take.

USA Today – “Churches Take Their Message to Taverns”

‘Flavor of the Month’ for Cause Marketing?

Retail icon JC Penney is at a crossroads. Declining sales, upheaval in pricing and promotion strategies, and turnover at the top of the organization.create an uncertain future for the company. In an effort to define the JCP brand and become relevant again with consumers, the company has announced a cause support program called JCP Cares. Shoppers will have the option to round up their purchases to the next dollar, with the change going to a cause designated by the company. A unique feature of JCP Cares is that a different cause will be supported each month.

A “flavor of the month” strategy might work for selling ice cream, but it is not the approach a business should take for engaging in strategic philanthropy. Cause marketing is far more than a platform for raising donations; it should be used to articulate a brand’s values and meaning. Selecting causes should focus on one or a select few causes that resonate with a brand’s target market. One to three initiatives (general issues or causes) should be identified as priorities. Then, the marketing and human resources a firm possesses can be used for good to provide support.

JC Penney’s intentions are admirable. Among the causes it plans to support through JCP Cares are USO, Boys &Girls Clubs, and The Breast Cancer Research Foundation. The causes JCP Cares have selected are not the issue; the number of causes supported spreads the resources of JC Penney too thinly. Also, it will be difficult for the brand to be associated with the various causes because of the short-term nature of the cause promotions. Also, with such a large number of causes supported, consumers could be confused about which causes JC Penney supports.

Cause marketing should not be viewed as a sales promotion that can create short-term sales gains. Instead, cause marketing is a means for a company to involve its customers in supporting a nonprofit or charity whose mission and values represent priorities for all involved. JC Penney – figure out what is important to your customers, then marshal your resources to create spectacular cause marketing programs. Your customers will admire you, and the “cause of the month” can be replaced by an ongoing commitment to strategic philanthropy.

Marketing Daily – “Penney Reaches Out to the Right”

Targeting for Precision, not Imposition

Online travel website Orbitz caused somewhat of a stir recently when it acknowledged that it showed pricier hotels in search results for Mac users compared to PC users. The idea that search results would be influenced by the type of computer one uses was unsettling to some people who are worried about a company knowing too much about people on the other side of the computer screen. Also, some consumers perceived the tactic as Mac users being subjected to differential pricing. Of course, that is is not the case – Mac users are only seeing different results on the first pages of their search queries, not being charged different prices.

As a marketer and consumer, I applaud Orbitz’s data mining efforts to seek to match product options with a buyer’s characteristics. The practice is hardly new – market segmentation is a default strategy because not every buyer wants what you sell. Also, a firm has limited marketing resources; finding the most likely buyers saves the firm money and makes consumer search more efficient by being exposed to more relevant messages from advertisers. The rationale behind Orbitz’s targeting tactics is no different than what a business does when it decides it wants to air radio advertising. The company finds whose listeners’ characteristics match well with the advertiser’s target market. The company does not air commercials on every station in town; they find the most likely buyers via a station’s audience.

One of the advantages of search engine marketing for consumers is efficiency in carrying out information search. The Internet casts an unbelievably wide net – too wide to be beneficial without a means for sifting through vast data and pinpointing information that is most likely to be of interest. Marketers should follow Orbitz’s example and examine how they can better match their offerings with consumer characteristics. Opportunities exist in online and offline contact points to make interactions more relevant by revisiting how targeting decisions are made.

Los Angeles Times – “Is Orbitz Being Creepy or Smart?”

Turn Customers into Participants

 

Baseball legend Jackie Robinson was quoted as saying “life is not a spectator sport.” His sentiment has a great deal of validity. We can choose to be passive observers, but there is much that we must do (work), can do (entertainment), and ought to do (well being). Thus, being a spectator is not a viable option. The “ought to do” aspect of our lives has implications for healthcare marketing. A study done by Accenture reveals that when it comes to managing our health, Americans want to come out of the grandstand and get in the game.
Findings from the Accenture study show a desire for being engaged in communication with healthcare providers:
  • 90% want to use digital media to manage their personal healthcare
  • 88% want to receive reminders via email when it is time for preventative or follow-up care
  • 83% want to access personal medical information
  • 76% want to communicate with their doctor via email
  • 72% want to book, change or cancel appointments
  • 72% want to request prescription refills
Digital channels are significant for enabling patients to be participants in their health care. Survey respondents placed particular emphasis on email as a communications channel, but information access and communication options via mobile devices is important, too. The one statistic that cannot be overlooked in all of the interest in digital management of healthcare: 85% said they still want to be able to communicate with their doctor in person.
For healthcare marketers, findings from the Accenture study send a clear message: Figure out how to turn patients into participants. Many healthcare marketers may have some of these digital media in place already, but the survey also found that about one-third of patients were unaware that they could manage aspects of their healthcare using digital channels. Communicating options for self-service and encouraging patients to be engaged on an ongoing basis are two rather obvious solutions. Firms in other industries can reflect on findings of this survey, too. How can customers get involved as participants in managing their relationship with your company? Is interacting with your company easy to do, or are barriers in place (intentional or unintentional) that send a message of “don’t bother us.”
Life is not a spectator sport, nor is the customer experience with your brand. Get your customers into the game to deepen their relationships with your business.

Dialing Up a Better In-Store Experience

The retailing industry is going through a period of significant change in terms of how customers interact with retailers. The days of the in-store experience being the dominant customer touchpoint are over. The advent of the World Wide Web gave shoppers a virtual shopping option. Despite predictions to the contrary, brick-and-mortar stores have not disappeared due to the emergence of e-commerce. Now, the evolution of mobile communication leads many retailers to again predict a revolution in shopper behavior.

According to a recent study by Motorola Solutions, 74% of retailers surveyed believe creating a more engaging in-store experience will be critical to business success over the next five years. Technology-assisted interactions are expected to play a significant role in shoppers’ behavior. Among key findings pointing to a more significant role for technology in retailing:

  • 56% of all transactions will occur via mobile point of sale, self-service checkout, or a shopper’s mobile device
  • 42% of sales will come from online, mobile, and social commerce sites

Exciting news – shoppers are embracing technology to make purchases… or is it exciting news? These trends should serve as a wake-up call for retailers that have resisted enhancing their interactive experiences for shoppers. It is understandable why retailers might be reluctant to quickly react to the forecasts – we have heard similar proclamations before. The Web did not make traditional stores obsolete, and while smartphone capabilities have definitely changed how we shop, brick-and-mortar stores are not going away anytime soon.

Regardless of whether the forecast for mobile commerce over the next five years comes to fruition, the survey’s findings should serve as a call for retailers to step up their m-commerce game. It is evident that retailers know the stakes are higher to meet shoppers where they are and deliver value by providing information, coupon offers, and transaction convenience. The key for retailers will be make understanding the customer shopping experience a priority – not what they think shoppers will want but committing resources to learn and understand what customers expect from retailers.

Marketing Charts – “3 in 4 Retailers See Improved In-Store Experience as Critical”

    Baking Customer Experience into Corporate Social Responsibility

     

    A great deal of emphasis is given to creating great customer experiences today. Marketers recognize that total consumption experiences influence satisfaction judgments. Also, a focus on delivering an exceptional experience can differentiate a brand from competition. But, there can be another reason for building a remarkable customer experience: Compassion for the less fortunate. That is what Panera Bread has done with a concept called Panera Cares Community Café.
    Panera Bread can attribute much of its success to the experience created daily in its more than 1,500 locations. And, like many respected organizations, Panera Bread takes on social responsibility obligations as a way to give back to the communities the company serves. The Panera Cares Community Café is an innovative approach to aligning company values with social responsibilities. The company operates four of these “pay-as-you-can” restaurants. Menus feature suggested prices, and donation boxes are set up to collect money to allow customers to provide funds to help buy a meal for someone who cannot afford to pay. People can pay suggested price, less if they cannot afford the full amount, or volunteer for one hour to eat for free. Panera Bread just opened the fourth café, in Chicago. It should be noted that the other three locations in the St. Louis, Detroit, and Portland areas each has been profitable.
    As unique as the Panera Cares Community Café concept is, what really struck me as remarkable was the CEO’s perspective on why these locations are important. Ron Shaich, who is the company’s founder as well as CEO, wanted to give less fortunate people a good dining experience. He contrasts eating at Panera Bread to receiving a meal at a soup kitchen. He calls that experience as “institutional” and giving off negative energy. Shaich believes the less fortunate should be able to enjoy the same experience that anyone else dining at Panera Bread has.
    Creating great customer experiences is a priority for marketers. Panera Bread has taken experiential marketing to another level, incorporating experiences into its strategic philanthropy. Donations of money and human resources are admirable, but creating experiences that touch others who are not in your target market demonstrates more than social responsibility. Showing compassion for your fellow man meets what is perhaps the ultimate social responsibility.

    Don’t Look for a Job – Market Your Brand

    The realities of a challenging global economy and after-effects of a recession in our country are unexpected educational experiences for recent college graduates. This year’s graduates have degree in-hand but in many cases have no guarantee of a job or immediate prospects. Young people are moving back home, searching earnestly for positions related to their college majors and in many cases taking jobs with little relevance to their chosen career.
    I can empathize with the struggles young people are facing on two fronts. First, as a college professor one of my responsibilities is to help students launch their careers. I share with them the importance of building a professional network and encourage them to use tools like LinkedIn to engage in networking. Also, I stay engaged with the local business community to stay abreast of job opportunities for marketing majors. Second, in addition to my advisees who study under me, I am currently mentoring my flesh and blood advisee – my oldest son graduated with an Information Systems degree in May and is in the job market with thousands of other recent grads. On both fronts my advice is the same: Don’t look for a job – market your brand.
    Job seekers are abundant; they flood Monster and Career Builder with résumés. The problem is that it is difficult to differentiate yourself as an employee when your mindset is to find a job. In contrast, when you are marketing your personal brand, your thoughts and actions serve to build your brand. Why is personal branding a big deal? Most job seekers do not think like a brand manager. Their focus is on finding a job. Employers are interested in how a candidate can add value to their organizations. Brands focus on creating and articulating value.  
    My advice to job seekers (including my own Chris) is to manage and develop the 3Ms of a personal brand:
    ·         Meaning– Your values and beliefs that guide your priorities
    ·         Make–up – The skills, abilities, and training that are marketable competencies
    ·         Message– Communication of your qualifications and personality; Social media gives us numerous opportunities for spreading our message… if used correctly
    It is a unique but daunting task to oversee the most important brand in the world: You. If you want a job, develop your brand and market it. When you define what you have to “sell” and are able to persuade others about the value you can deliver, the job opportunities will follow.

    Like Exceedingly, Love Strategically

    Chalk up another new source for learning or reinforcing marketing lessons: HGTV. Yes, that HGTV, the cable TV network. On occasion, I will find myself watching HGTV shows with my wife. A recent chance encounter with an episode of Love It or List Itreinforced an important aspect about managing customer relationships. The format of the program is that a designer and realtor work with homeowners deciding whether to renovate a home or move to another. The end result is the homeowner will either love the renovation and stay or find a new home to be too irresistible and list their home for sale.
    The homeowners featured in the episode I watched recently were weighing the stay or move dilemma, but both the designer and realtor knew they had their work cut out for them to please this couple. The tipoff? The home that the couple owned currently was chosen after looking at 255 houses. I don’t think I have been in 255 houses in my life, much less look at that many when deciding to buy one! After watching a few minutes of the program, it was understandable why they looked at so many houses – both the husband and wife had specific desires and demands for which there was no negotiation.
    Yes, the program was for entertainment, but the behavior of the homeowners probably was not an act. They were hard to please, perhaps an extreme case of a difficult customer, but a drain on a business’s resources, nonetheless. One of the hardest lessons for me to learn in the earlier days of my professional career was that all customers are not equal. I wanted to like everyone, treating all customers the same. And, if there were customers that were not as profitable or took too much effort to serve, I was confident that I was the salesperson who could change the relationship and bring them along. Not all customers are equal, I came to understand. Some customers are more valuable and loyal; they deserve to be treated as a priority. Less valuable customers are not to be ignored, but they are serviced in a manner consistent with their value to the organization.
    The take away from Love It or List It for marketers is to like exceedingly, love strategically. Having friends is great, and social media gives businesses a forum for making friends with customers and others regardless of their financial worth to the firm. But, realize that some customers are more important than others and should be treated accordingly. Tactics such as assigning dedicated customer service personnel, customized products, and rewards of merchandise or credit are examples of how valuable customers’ worth can be acknowledged. Determine which customers should receive the most love and show it to them. In other words, love strategically.