Learn more about May is Marketing Month Any retailer’s tale of their mobile journey so far is really just the first chapter or so of a much longer story. But that first chapter is often the most interesting – a challenge is set, obstacles arise that must be overcome, a few initial lessons are learned to guide the protagonist in the adventures yet to come. At the recent Shop.org digital retail marketing workshop in San Francisco, Dave Barrowman, Senior Director of Product Management, Gap Inc. Direct recounted Gap’s mobile journey to date and some of the lessons they have learned along the way.

 “Even if you don’t build it, they will come.” Some years ago Barrowman (who has a development background as well) was so intrigued by the idea of mobile phones for retail that he actually created a prototype on his then-leading edge Treo 600. Gap didn’t pursue the idea further until the iPhone launched, at which point they realized that, with nothing else in place, customers were looking for Gap on their smartphones and simply “getting the desktop experience on the phone – and that had to change,” Barrowman said.

Customers want good functionality and clean design – but it may take several tries to nail it. With smartphone technology continuing to evolve rapidly, Gap decided to get serious about a mobile website. “In typical Gap fashion, we stepped back, talked to lots of customers [for input] and came up with the critical components for a smartphone platform,” he said. Number one on the customer wish list: a store locator. Barrowman noted that as the days get closer to Christmas, store locator usage can actually triple.

As for navigation, Gap focused on creating a “clean design – easy to read fonts, big buttons.” In the first iteration, Gap even went so far as to utilize Apple icons to indicate things like “more” and “fewer”. Turns out, customers didn’t always understand those icons, and instead wanted to see very literal messages. Gap responded by switching navigation elements such as a button with “more” spelled out, a button labeled “images only” for an images-only view, and a “menu” button to take the user to other parts of the site without having to back up through multiple pages.

Even on a small screen, you need a balance of product and marketing content. Customers told Gap that they wanted a very visual experience – meaning that even on the smartphone, they wanted access to the same alternative views, product catalog, zoom, product reviews, and all that they get while navigating the Gap website. When the initial Gap smartphone site launched in 2010, it featured an almost exclusively product focus – with no marketing content to speak of. By 2011, however, Barrowman said the team realized, “There was a disparity between the marketing content in emails and what was shown when the customer clicked through from the marketing email to the smartphone site.” In keeping with the need for a clean design and easy navigation, the Gap team had to get creative with presenting content such as offer details so the smartphone site now uses pop ups instead of separate pages for some non-product content to reduce the overall number of page loads needed.

You will need to manage across brands – and across markets. Another design and development challenge: How to let customers shop all five brands on one universal mobile site, since the more sites you have, the more you have to manage. Gap opted to give customers an easy to use menu to seamlessly move from one brand to the next, while keeping a universal cart across all five. Since that time, Gap also has launched smartphone sites for the Canadian and EU markets, with a few adaptations to local market needs – currency denominations, security verification seals such as Verified by Visa in the EU, a French-language site for Canada.

Just like the web, smartphone sites need continual review and revamping. Barrowman noted his personal observation that where we are with mobile today is much like early web days – except that consumer adoption is already through the roof. Everyone, and as Barrowman quipped, “and their mother – literally” has ideas and opinions about mobile design and development. In the vein of continuous improvement, Gap last year added order status and “suggested sells” to its smartphone site. Apps designed to give consumers in-store functionality such as product scanning and ordering out of stock items were initially outsourced but have since been brought back in-house.

What’s next for Gap? Addressing mobile performance, to which Barrowman added, “Most sites are frustratingly slow, but performance is critical.” Also on the horizon is simplifying management of multiple sites across brands and markets, optimizing email for mobile devices when different devices render the same email differently, and “bridging the gap from the virtual and physical” to find a common thread across devices and the store.

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Learn more about May is Marketing MonthThe term “SoLoMo” has been walking the line of buzzword or trend for a little over a year. And as Melissa Parrish of Forrester Research pointed out at the Shop.org digital retail marketing workshop in New York, this term for brands and retailers has primarily centered around the “check-in” function via sites like Foursquare. Social and mobile usage and participation have both grown steadily, per Forrester Technographics data, and consumers are increasingly using social and mobile together. So how about the “Lo” (location) part?

Parrish feels that geosocial apps dominate when compared to Internet location features, incorporating location as an integral feature and making privacy key. “Despite these promising features, few people – about 5% of U.S. online users who own a mobile phone – are actually using these apps today,” Parrish noted. That’s not to say that that 5% isn’t worthy of a retailer’s attention –they skew younger (75% of these geolocation app users are between ages 23 and 45) and male; are very active on their mobile devices and online; and are twice as likely than the average U.S. online adults to share product information, reviews, and offers or discounts.

As such, Parrish thinks that defining “local” solely in terms of geolocation apps simply doesn’t paint the whole picture. In the course of their ongoing consumer research, Forrester analysts have seen another online consumer pattern emerging – the rise of the “always addressable customer.” This is a consumer who fits the bill on three fronts simultaneously:

  • Owns and personally uses at least three connected devices
  • Goes online multiple times throughout the day
  • Goes online from at least three different physical locations

Another attribute of this group, Parrish continued, is that these customers are highly educated, tend to be high-earning, are sophisticated mobile users and very socially active. This consumer approaches technology as the tool that helps him or her accomplish whatever the task at hand.

Last year, Forrester found some very telling data when they took a closer look at the always addressable customer. Their research found that 37% of North Americans were ‘always addressable customers,’ a significant leap from 17% in 2010. It’s safe to say that this segment of consumers is likely to become the norm rather than an anomaly – and for some generational groups, it already is. In 2011, approximately 3 out of 5 Gen Z (18 to 22 year olds) and Gen Y (23 to 31) fell into the category; along with close to half of Gen X and a quarter of Younger Boomers. Older consumers aren’t sitting on the sidelines – one in five older boomers (56 to 66) and one in ten 67 years or older fall into this category as well.

So where does “local” fit in to this data? For a retailer, the “Lo” part of SoLoMo is simply that wherever your customer goes, you must be there. “Don’t think technology first – think about what your customer needs,” Parrish emphasized. Unfettered by preconceived ideas about which device to use for a specific purpose, consumers increasingly turn to whichever device is at hand and that suits both the task and the location (commuting on the train, at home in the evening, waiting to pick up the kids, standing in a store researching a product – and even on vacation). I would add that this untethered consumer wants to interact with you – so make sure product information, emails, social media integration, even the cross-channel cart all render seamlessly across devices. And that term “connected device”? Likely soon one for the history books – as Parrish concluded, consumers increasingly just think of them as plain old devices or tools – the “connected” bit is entirely a given.

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Shop.org’s parent, NRF, announced last week that consumers are expected to spend a full $18.6 billion to celebrate the mothers in their lives on May 13. The survey of 8,724 consumers conducted this month by BIGinsight showed also that online shoppers will contribute a fair bit to that total. In all, 1 in 4 Mother’s Day shoppers will buy at least some portion of their gifts online this year, up from 1 in 5 in 2010 and 2011. Below are a few key trends that stand out with this year’s online Mother’s Day shopper.

Online consumers expect to spend 53% more on Mom than all shoppers across categories. Of consumers who plan to shop online for some part of their Mother’s Day shopping, almost one-third (31.7%) expect to spend more this year than last – that’s compared with about half that number for all adults 18 years and older. In all, online Mother’s Day shoppers expect to spend a combined net average of $233.67 – or 53% more than the average for all adults.

Which products will catch the eye of the online consumer in emails, search, online ads and in social media? 4 out of 5 will spend close to $9 on greeting cards, three-quarters will spend an average of $32 on flowers, and 3 out of 5 will splurge on a special outing such as dinner or brunch, at an average of $56.75. That said, online Mother’s Day shoppers also have their eye on bigger ticket items such as consumer electronics, jewelry, gift cards, clothing and accessories, and books and CDs. For example, an impressive 44.5% of online Mother’s Day shoppers expect to spend an average of $116 on jewelry alone. As a retailer, have you updated your Pinterest presence to showcase your best products in these must-buy categories?

Online shoppers will research and buy across channels… This inclination to treat Mom is evident also in where online shoppers plan to buy their gifts – while one quarter will buy something in a discount store, that’s actually less than all adults 18 and older (30.2%). Instead, expect online Mother’s Day shoppers to not only buy online, but also to head to department and specialty stores. About twice as many online shoppers (15.7%) as all adults (8.2%) expect to shop in specialty stores.

…with smartphones and tablet devices firmly in hand to locate, research and buy. Among online Mother’s Day shoppers who own a smartphone, 2 out of 5 will use their smartphone to research products and compare prices, almost one third will look up retailer information (e.g. location, store hours, etc.), and one quarter will actually buy via their smartphone. Not surprisingly, online Mother’s Day shoppers who own a tablet device will use the tablet to even greater degree: over half will research products and compare prices on their tablet, close to a third will look up retailer information, and one quarter will redeem coupons. Close to half expect to use their tablet device to actually buy – and why not, with all that rich imagery and content to entice shoppers to hit the “complete purchase” button.

Online retailers should milk the week leading up to Mother’s Day. Google notes that MasterCard SpendingPulse last year (2011) found that online sales hit their crescendo the Tuesday before the big day (this year, that’s May 8), while in-store shopping peaked the day before Mother’s Day (i.e. that Saturday).  Retailers should harness email, search, site and social marketing to tout online shopping in the 5 to 8 days before Mother’s Day, then switch to messages about buy online, pick up in store service and/or in store specials, events and associates’ gift picking expertise.

Utilize cart remarketing to get consumers to commit – even if not on the first round. With cart abandonment rates continuing to rise, I would point retailers again to some highlights of the recent Shop.org webinar on shopping cart abandonment and cart remarketing. Per SeeWhy’s research, one quarter of one percent (you read that right) will complete their purchase in their first visit to your site. Instead, focus on visitors who put something in their cart as hot leads who are unlikely to buy during that first visit, but are likely to buy – somewhere – within the next 12 hours. Timing (think 2, 4 or at most 6 hours after the cart is abandoned), tone, and personalization (greeting the customer by name, naming the product(s) in the cart, etc.) are the keys to effective cart remarketing . Considering how few retailers do much of anything to remarket carts in the first place (also per SeeWhy), you have every chance of capturing that sale – and cementing further your relationship with that customer for the long term.

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With a valuation of more than one billion dollars, Gilt Groupe is one of the most fascinating, innovative start-ups of recent years in the retail world. At the bleeding-edge intersection of fashion, e-commerce, and technology, Gilt has changed the way people shop. First, they brought the sample sale online and with that the urgent and slightly addictive rush to shop to the digital world. And over the last two years, they have continued to innovate by bringing their impeccable shopping experience to the consumer with editorial-worthy apps on tablet and smartphone devices.

Behind this powerful, digital, luxury brand are two fascinating and glamorous women. Alexis Maybank and Alexandra Wilkis Wilson, authors of By Invitation Only: How We Built Gilt and Changed the Ways Millions Shop.

I was proud to recently chat with Alexandra, one of our key presenters at our upcoming Digital Retail Marketing 1/2 Day Workshop in New York City on May 1st, to discuss all things mobile and social, innovative retailers on her radar, and what’s next for Gilt Groupe.

Alexandra Wilkis Wilson, CMO, Gilt Groupe

Before founding Gilt Groupe, you worked in the luxury retail business. What lessons from the world of high fashion have helped you succeed in your current role?

I was very fortunate to have worked for two of the most prestigious luxury brands, one French (Louis Vuitton) and one Italian (Bulgari). My years working for these companies helped teach me the luxury mindset of old world European brands which recognize the need to modernize in some ways yet are not willing to compromise or change in others. Both these brands are incidentally staunchly opposed to discounting, so that also prepared me well for the hundreds of reasons why brands might not be receptive to partnering with Gilt Groupe, at least not initially when we launched in 2007. I am proud to say that over time, we have convinced over 6,000 of the world’s most illustrious brands to partner with Gilt. I had many doors slammed in my face and unanswered calls and emails, but I never backed down and continually pushed forward with our vision and how I believed that partnering with Gilt could positively impact diverse brands for a wide range of reasons.

Gilt Groupe was an early pioneer of the flash sale model, but more and more companies are crowding the space. How has the tough competition affected your strategy? What have you learned from your competitors?

I am a tennis player and I always like playing with people who are better than I am. It makes my game stronger. We face competition from all sides, and that is actually a good thing for Gilt. It has forced us to continue to innovate and to surprise and delight our customers as quickly and effectively as possible. Our members have high expectations for what we introduce them to on Gilt. Our team works as hard as we can so that we don’t let those customers down.

With the growing popularity of social media and mobile technology, the way people shop has already evolved since Gilt Groupe emerged in 2007. How has your strategy evolved to engage the social shopper?

Our business is constantly evolving to keep up with our consumer demand, our offerings and the world around us. We are having fun experimenting with various partnerships such as with Klout where for a limited time only customers discovered that the higher their Klout score, the higher their discount to shop on Gilt. That was fun and rewarded our customers with the greatest social influence. We also recently had a fun initiative called Pin it to Unlock It with our Gilt Kids business and Pinterest. We at Gilt have fun engaging with the social shopper and we learn from him and her every day. Our Gilt Customer Support team actively engages with customers via Facebook and Twitter. You don’t believe me, try tweeting to @GiltSupport and see what you discover!

Everyone is opening email on phones these days. How important is mobile to your business? How has your strategy evolved to attract the mobile, on-the-go shopper?

Mobile has come to play a huge role in our business and that was certainly not the case when we launched in 2007. On weekends and holidays, revenues can be as high as 30% from mobile. Our engineers have developed award winning apps for iPad, iPhone, Android and m-commerce. Our customers are on the go, but that doesn’t mean they need to miss out on what we have on sale at any particular moment on Gilt Groupe.

A company like yours must require a rock star marketing team. How do you keep your team ahead of the curve? What do you do to find, keep and cultivate good marketing talent?

We have an A+ marketing team, that is for certain, but in addition to that many of our employees, whether they are engineers, merchants or customer support representatives, have an inherent sense and understanding of marketing and its importance. To stay ahead of the curve, we eat, drink and breathe innovation. We all love to experiment and value internal creativity at all levels. Our company has grown to become a tech company, a powerful retailer and a robust marketing engine. Often people ask me, which of the three are you? My best answer would be all of the above.

You’ve seen amazing success, growing into a billion-dollar company in just four years. For you personally, what has been the biggest surprise along the way?

I never imagined how much fun and yet how emotional it would be! I feel like Gilt is my child, but then again many of us even beyond our team of five co-founders feel that way. Lucky for Gilt, it has many parents!

Which retail companies do you find most fascinating to watch?

I watch so many retail companies. I can’t help it. Even if I didn’t work for Gilt, I would watch them. It’s what I love. I keep my eye on the department stores. I keep up with the luxury outlet malls in the U.S. and overseas. I need to know what’s happening at the bricks-and-mortar off-price companies like: Century 21, Loehmanns, TJ Maxx, Marshalls, etc. I pay attention to what the other flash sale and group buying sites are up to, because I have to. I pay attention to QVC and HSN. But what I find most fun to watch is the retailers whose businesses are 100% focused online including the larger established ones like net-a-porter, ShopBop and Zappos, and then the newer and more innovative ones like Bonobos, and Warby Parker. The subscription world from Birchbox, to Shoedazzle, to Send the Trend is very exciting right now and I follow it closely. There really is so much innovation happening today, and much of it is in New York City which is fantastic. It is amazing and at the same time it is hard to keep up. It is a lot to take in everyday but it’s fun and doesn’t feel like work!

What’s next for Gilt Groupe?

Improved personalization so that all customers who visit Gilt will feel that the site is personalized just for them.

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The retail consumer is a working mom on the go – utilizing her mobile phone to find the closest retail store to pick up school supplies for her children. The retail consumer is a self-proclaimed techie – he would never buy a new device without recommendations and reviews from his fellow-gadget lovers and tech bloggers. The retail consumer is a 20-something, always-connected mobile consumer – she spends hours every day on social networking sites including Facebook, Twitter and Pinterest to share stories, likes, reviews and even locations with a network of friends and family. The retail consumer is smarter than ever, always-connected and expects a localized, personalized omnichannel shopping experience across every social platform, retail site or store that is convenient for them. You know this. We’ve been talking about this for years and there is no fighting it now.

Just a few years ago, the shopping experience didn’t involve the same technologies it does today. We’re going through a revolution of sorts filled with disruptive, marketing-powered technologies allowing us to truly enhance the socialized, localized shopping experience for the always-connected, mobile consumer. But which retailers have made the best efforts to optimize their marketing, merchandising and customer service for this empowered shopper?

At the recent Retail Business and Technology Expo in London, I presented my top ten omnichannel, SoLoMo-embracing retailers. My list included Apple, Gilt Groupe, Tory Burch, American Eagle Outfitters, Express, PacSun, Nordstrom, 1-800-Flowers, and one of my favorites – Guitar Center.

While many of us have heard or read about how innovative some of these retailers are in terms of all things social and mobile, there was one particular example that the High Street retailers in the UK seemed to embrace from my presentation. That retailer was Guitar Center.

Most recently, we were proud to feature Guitar Center executives Steve Zapf and Kirit Sarvaiya, on the Shop.org First Look Track stage at Retail’s BIG Show to share how they harness the power of 220 stores and over 4,000 store associates to win web shoppers in a local market. In their presentation Guitar Center discussed how they differentiate and thrive in the competitive retail environment. Going one step beyond added features including pick up in store and return-to-store for online purchases, Guitar Center used their number one asset: their knowledgeable, local store associate (4,000+ of them) to marry all things digital to the in-store experience.

To compete in this new age of retail, Guitar Center launched store microsites for stores all over the country. These sites featured store information, maps, local event calendars, local store ads and spotlights, and most importantly – a feature to “Find an Associate” within a specific store. Not only did Guitar Center feature all of their associates with individualized profiles, but they went to the next level to categorize them as an expert within product categories. These store associate profiles highlighted musical interests, favorite instruments, gear recommendations and more.

Why did this literally rock? These store associate profiles can be viewed by customers looking to complete product research, ask specific store associates questions, and can help drive traffic to the store AND to the site. Utilizing their number one asset all over the country, Guitar Center has married the in-store experience and e-commerce for the social, on the go consumer. They were my ideal example of omnichannel differentiation at its finest.

Omnichannel? It’s not just another buzzword. It is the word that encapsulates what retailers should aspire to be for their customers. Omnichannel is all about letting customers experience a brand, not a channel within a brand. Omnichannel at its best? You can find it at Guitar Center, where they have given a microphone to the influential voice of their store associates… at local stores all over the country.

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