In light of their astonishing growth and as a preview to Doug’s upcoming appearance as a Super Session speaker at Retail’s BIG Show, we reached out to CEO Doug Mack for our most recent Talking With… interview. During our conversation, Mack repeatedly touched on a few key themes that apply to leading and succeeding with just about any retail business in the world: hone in on innovation, embrace design and technology, leverage your data, and optimize every aspect of the customer experience. While Doug points to some of the companies and brands that he looks to for inspiration, I can only imagine how many companies and brands already are inspired by his leadership and the near-flawless focus at One Kings Lane on website design, online merchandising and building the next game-changing lifestyle brand.

Social media is obviously changing the way some people shop and engage with your brand. What are some of the new and exciting trends in social?

We’ve had great success at One Kings Lane with social media to fuel “word of mouth” around our brand – when you offer something unique and interesting, customers will now share it broadly via Facebook, Twitter, blogs and even old-fashioned email. Some exciting developments in social media are new “interest” focused communities such as Pinterest and Houzz. While Facebook does a great job at addressing the social graph, these emerging sites are addressing interest by providing environments for enthusiasts to spend time sharing what they love across a wide range of categories and interests, including design and home décor.

What does the future hold for flash sales? How is the business model evolving?

The Flash Sales model is very exciting to consumers, as they tend to get great products at better prices. My view is that innovation is critical for the continued growth of companies in the flash sale space. In our case, we were the first company to offer the Flash Sales model in the home market when we launched in 2009. We then followed up by evolving from a pure flash sales model when we launched the Tastemaker Tag Sales series, where we work with well-known designers and influencers to bring curated sales of one-of-a-kind and vintage items to One Kings Lane. Today, we also shop around the world to bring unique, exceptional items that are hand-selected and deliver tremendous value for our customers. In many ways, we’ve already evolved well beyond flash sales with the variety of merchandise we offer – along with the content we integrate into the experience.

Today’s hot topics in retail include all things mobile, tablet, social and flash. Looking forward, which of those items do you think will sink and which will swim?

I believe the mobile, tablet, social and flash trends will continue to be very relevant to consumers. The reality is that consumers are now becoming accustomed to searching and purchasing items directly from their smartphones and tablets – with tablets representing a particularly encouraging opportunity. Social will be embedded in all e-commerce experiences – so sites that offer an exceptional consumer proposition will benefit from it while those that are undifferentiated will suffer. In flash, I expect we’ll see vertical winners evolve in the years ahead in categories such as apparel, home, kids and travel – while sites that are not a leader at any particular category will eventually sink.

What do you find the most exciting about working in the e-commerce field?

I’ve been in e-commerce for more than a decade now – and I absolutely love the opportunity to find innovative new ways to excite consumers. As we have this mindset in our company, it forces us operate in a non-traditional way in almost every area of our business, from merchandising to product to marketing to operations. For example, unlike traditional retail, our shelves change every single day, 365 days a year, which presents major operational challenges – that as we solve one by one, provides us with huge sources of competitive advantage. The end result is that we continue to deliver a dramatically new and different retail experience for our customers – and yet, despite our fast traction, I think we might still be in the first inning of all the innovation we have planned in the years ahead. The amount of open space to innovate makes it exciting to come to work at One Kings Lane each day.

With your background in design and technology, do you ever find yourself getting caught up in website design and looking less at the retail component? How important is website design for retailers?

That is a critical question for any e-commerce company. We have a phrase that we use at One Kings Lane that one of our employees came up with at our last all company summit – “the merch is the fuel to the car.” Everything we do in the business is critical to our success – but if we don’t get the merch right, we won’t get very far. Design and technology are critical aspects to our overall experience – as we apply these disciplines in three key directions – to our consumers, our employees (who run the business) and our suppliers. One of our driving principles in the application of design and technology is to stay focused and keep it simple – and this certainly manifests itself in our website design. In fact, I believe companies that have hard-to-navigate and cluttered websites is a result of a lack of focus internally – you can see their lack of cohesive strategy represented in the experience on their website.

The feedback we continue to receive from our customers is they love the simplicity of our site. One of the hardest things is to not implement every idea we have for fear it will clutter the experience. We relentlessly curate both the merchandise and website experience to make it a joy for our customers.

How does technology empower retailers today? What are the opportunities of innovation and convergence between the two industries?

Just having a website no longer cuts it for retailers. For retailers to be successful, they need to offer their customers an opportunity to interact with their brand easily from wherever they are, whether it’s on their phone, at home, or in the mall. Also, the future of commerce lies in the massive leverage of data – to have an unfair advantage is optimizing every inch of the customer experience – how you market, how you merch, how you serve. This is extremely hard to do – but those who crack the code will have a systematic advantage in the market.

What do you think is the biggest challenge facing digital retailers right now?

Companies have been working on incremental improvements to refine the customer experience, but my sense is we’ll start to see a wave of companies like One Kings Lane that bring a game-changing new experience to bear. The challenge is to sort out if you’ll be part of changing the landscape – or more impacted by it. My sense is digital retailers are also a bit too dependent on certain tools that work today, such as email and SEM, but need to push their thinking on how to be more creative in their customer contact strategies.

What skills do you look for when you’re hiring new staff at One Kings Lane? Do you think today’s graduates are bringing the right experiences to the table?

In every employee we look for passion, agility, innovativeness and customer focus. We focus huge mind share on hiring employees that fit well in our company culture. We’ve had great success hiring recent graduates who have the above traits, along with experienced individuals from a wide variety of industries, including e-commerce, retail, internet and media.

As a recognized leader in your field, who or where do you look for inspiration?

I am a huge fan of major brands that fundamentally change industries. I continue to have utmost respect for Nike, Apple and Starbucks in particular as they completely changed their respective markets, but then never stopped evolving. Apple for instance not only changed the PC industry, but then the music industry – then the mobile industry – and now the PC industry again (via the introduction of tablet computing). All of these companies started with a core innovation, but did not rest on their laurels. As One Kings Lane builds the next lifestyle brand, I will continue to look at these game-changing companies for inspiration.

Vicki Cantrell, Senior Vice President, NRF Communities and Executive Director, Shop.org

To put it lightly, Vicki Cantrell has hit the ground running.

Last week, the National Retail Federation announced that retail veteran Vicki Cantrell would be joining the NRF team as  Senior Vice President, Communities and Executive Director, Shop.org. And today, she’s more than excited to share what her first few days on the job have shown her about NRF and the communities she’ll oversee within her new position.

Prior to joining NRF, Cantrell served as the COO and CIO of Tory Burch during a period of extreme growth and expansion domestically and internationally. As COO, her work centered on the development of process and infrastructure for the transition from initial success to sustained growth. She was also a brand advocate and instrumental in developing ongoing employee and team strategies. During her storied retail career, Cantrell has also worked as CIO of Giorgio Armani Corporation and held positions of growing responsibility with Gucci Group, Party City and JCPenney.

Cantrell was kind enough to sit down with us for a Q&A session, where she spoke about her wealth of retail experience, her vision for NRF and Shop.org and her perspective on the evolution of retail over the past several years.

In the press release announcing your hire, Matthew Shay said your past executive level experience with major retail brands makes you a great fit for our organization. What parts of your work experience do you think will have the most impact in your role spearheading NRF’s communities?

As an operational executive in several high/fast growth situations, you have the opportunity to understand what happens in many areas of the company, and most importantly, how different business units are so dependent on each other. Each step is an important cog in the wheel of the product getting to where it needs to be and the customer being satisfied. Today’s retail climate is challenging, not only because of the economy, but because things are changing so quickly. This makes an environment where flexibility, experimentation and moving fast is key. One of my favorite things to do is to bring the right people together, work across business areas, get the best minds on a problem, and facilitate the ability to make something happen.

The NRF communities have to mirror the same style of interconnectedness that is now prevalent and critical inside the retail business. I think we will get great synergies.

What excites you most about this newly-created position?

Actually, there were many aspects of this new position that were a draw for me, some I mentioned above. I consider myself a lucky person and I am a happy person. As I look at my life today and all of the experiences that brought me to this point in my life, I have truly been shaped by my retail career. I have always believed that the NRF and Shop.org are THE representatives of the retail business. In some ways, I feel like I am giving back to my industry by coming here and doing my part to make it a strong organization that truly supports, represents and advocates for the retail industry.

You’ve also worked with NRF in the past from a member standpoint within our committee framework. What was your most interesting take away from that experience?

I have built my strongest industry relationships from being part of those committees. I find that when sitting with your peers in person, there is an almost immediate desire to help each other by sharing experiences. So, the “interesting take away”, is that there is always a level of trust that is assumed. How does that happen? Always remember, that there is no substitute for a face to face interaction.

There’s no doubt that digital retail is playing a major role in the holidays this year. How do you see this “omnichannel” mentality playing out among retailers – and what can retailers be doing to ensure they’re firing on all cylinders this holiday season?

As we all know, the holiday plans are fully in place and now in execution mode. While we are all feeling good about the increases in performance in the digital channels YOY, that does present challenges. A lot of work is done to define the projections because that drives the many inter-related decisions on staffing, fulfillment, customer services, etc. While it is table stakes to be vigilant on the operational aspects of your site, uptime, accurate promotions, appropriate customer communication, etc., it is also critical that retailers have contingency plans for two additional aspects; the Stretch (better than expected sales) and the Problem (unexpected site outages). Make sure you have your action plan in place.

All that said, if you have stores, it is most important to remember that great customer service and the right experience in your store will shape their relationship with your brand better than any other aspect.

What opportunities do you see as low-hanging fruit as you begin your tenure?

I think there is a great opportunity to collaborate across the communities. There is a great talent pool internally at NRF and Shop.org, and externally with our dedicated membership and industry groups. I hope to initially take a macro view and see where we can align some of the functions that are common across all groups while keeping the aspects that define the community’s unique “brand”.

For the past several years you have been focused on the luxury retail market. How has luxury retail changed over the last decade, and how are retailers able to continue to grow that category in spite of the economy?

It is not surprising that the luxury business is coming back after the softening of 2009/2010. I have seen this pattern several times and when taking the long view, luxury is resilient. I could say that it is for the reasons that we have all heard like, the very top tier are less affected by behavior changing shopping patterns, or, people start spending again after a period of austerity.

Rather, I think that an important factor is that the luxury businesses have a distinct advantage of having more information and a stronger personal relationship with their clients in order to provide the high level of touch/service. This gives the luxury retailer the benefit that when shopping patterns change they can communicate differently or provide new or different services.

The biggest change I see in the luxury business over the last few years is that the segment has adapted (albeit a little slower in the beginning) to the digital customer. There was an initial struggle with losing how they managed the brand experience with the introduction of new technology but some of the coolest apps and experimentation are coming from luxury brands.

What’s the best piece of advice you’ve ever been given?

Wow, that’s a tough one; I have received a lot of good advice! Two that I try to follow is “sweat the details”, and, people may not always remember what you say but they will always remember how you made them feel.

You’ve worked for a number of well-known retailers. What would you tell students who are considering careers in retail about the opportunities in our industry?

I have been part of very robust and important intern programs at several companies so have had a lot of chances to advise, guide or mentor many young people about our industry. I think retail is one of the most exciting careers that someone can have because of the diversity of opportunities. Aside from the different lines of business that could interest someone, the process that happens from the time that something is an idea in a designer’s mind to when that item appears for sale in a store encompasses hundreds of steps. No matter what your interest is, you could find a niche in a retail environment. You can be part of design, web development, manufacturing, finance, customer engagement, and in many cases, it’s also a great way to understand the global landscape. The retail business is so dynamic because of the constant change. The opportunities for growth are unparalleled as long as you’re willing to work hard, stay humble and learn as much as you can about the business.

Talk about your very first job.

I started working at JCPenney in “Foundations” and went on to become a department manager and then a buyer for jewelry and luggage. This was when the corporate headquarters was still in New York and there were buying and merchandising teams at the store level. I was able to work in several areas and my time at JCPenney was a microcosm of my future career – I even helped train on, and implement their first “computer registers”. I wouldn’t trade the experience of working on the retail floor and with the customers. There is no substitute for understanding where the rubber meets the road.

Finish this sentence, “I can’t start my morning without…”

My Google Alerts and a cup of coffee (in that order).

From mobile phones, to tablet computers, to artificial intelligence, innovations in technology are changing the way we interact with the world around us. As technology evolves, so does the retail industry, as retailers find new and exciting ways to utilize technology to transform their customer service capabilities. Staying ahead of the technological curve, however, can prove to be difficult.

That’s where Ray Kurzweil comes in. Kurzweil, a keynote speaker at this year’s Shop.org Annual Summit, has been described as “the restless genius” by the Wall Street Journal and “the ultimate thinking machine” by Forbes. During his keynote presentation, Kurzweil will present a program for innovation, how to foster it in your organization, and how to bring inventions to market. He will explain how near and long term technology trends are accelerating opportunities for innovation and will connect this to ways to anticipate the next technology and marketing wave. In anticipation of his keynote, Kurzweil was also kind enough to answer a few questions for us about the future, technology in general, and where retail fits in.

You have spent a considerable amount of time, in both your writing and professional career, discussing the impact of technological advances and inventions – not to mention being called, “the rightful heir to Thomas Edison” yourself. What do you think will be the next invention that radically changes the way the average man and woman live their lives?

In health we will be turning off genes that promote disease and adding new ones that keep us health and extend our longevity (not just in newborns but in mature individuals). We will be harnessing stem cells to rejuvenate all of our tissues and organs and make us young again. There will be no need for embryonic stem cells as we will be create the equivalent by injecting four genes into our skin cells. These are all existing technologies but they will be mainstream in about a decade. On another front, virtual and augmented reality will become ubiquitous. Images will be written to our retinas from our eyeglasses and lenses and we will be online all the time.

Retailers are focused on getting to know their customers—or their customers’ spending habits, to put it more specifically—better and finding ways to put their product out in front of the right demographic. How do you think retailers could better use technology that already exists to serve their customers?

Have better virtual experiences with today’s technology. For example, clothes retailers should routinely enable customers to get their body scanned and then to see what the clothes they offer look like on their three-dimensional avatar. Customers could then customize these products with different colors, fabrics, sizes, and so on.

Your most recent book, The Singularity is Near, is dedicated to the discussion of a coming age of technological singularity and the inevitable augmentation of the human body/mind with technology. Do you believe technological advances are fueled by a desire to increase the longevity and capability of the human life, or are those advances mere bi-products of technology’s inevitable progress (law of accelerating returns)?

The one thing that is unique about the human species is that we seek to transcend our limitations. We didn’t stay on the ground. We didn’t stay on the planet. We have not stayed with the limitations of our biology which meant a life expectancy of 23 a thousand years ago. It was 37 just two hundred years ago. We always seek to go beyond what is possible, and with some struggle we succeed. People do want to stay alive no matter what they might say on a philosophical plane.

What is the most effective way for retailers to attempt to stay ahead of the technological curve?

Gather data about your customers and use that to reach out to them. The information that companies like Google and Facebook have about their users is their most valuable resource.

You’ve mentioned that timing is extremely important for inventions. Can you give any examples of inventions that were simply released too soon?

First generations of products are always released “too soon.” Ebooks were released in the 1990s but the technical infrastructure was not there to support it. Screens were low resolution, computers were too heavy, there was inadequate communication, and so on. So technology conservatives pointed to this and said, “see I told you, this will never happen.”

How would you describe your retail shopping habits?

I enjoy walking around retail stores for the experience and I like walking anyway. I do a lot of my routine shopping online.

What’s the first thing you read when you wake up in the morning?

The New York Times, often online.

Who were your heroes growing up?

A fictional hero was Tom Swift, Jr. A real one was Thomas Edison.

It just takes one look at their website to realize that ModCloth is one cool company. Built around the premise that “we want to be the fashion company you’re friends with,” ModCloth relies upon a variety of media, tools, and messages to actively engage with their audience. In advance of her keynote at Shop.org’s Online Merchandising Workshop next month in San Diego, ModCloth Chief Marketing Officer Cooper took time to share her thoughts on social media successes, their unique “Be the Buyer” forum, and how they integrate the company’s blog into their overall strategy.

Many digital retailers are increasing their focus on Facebook and Twitter, but ModCloth has taken social engagement a step further by using partner sites like Kaboodle and Polyvore. What have you learned by participating on these relatively new platforms?

Having a presence on Polyvore, Kaboodle and other sites like Tumblr allows us to collaborate with their communities and tastemakers in a way that is about fashion and our girls’ lifestyle. This subset of customers wants to think about how an item will fit in her wardrobe before purchasing or just wants to experiment and enjoys styling and conceptualizing looks in her free time, especially for big events like choosing a holiday outfit or an 80s-themed party.

Knowing that there’s an audience that wants to interact with our product this way has been something we consider in our engagement strategy, especially with contests that include styling elements or even tools. Most recently, we ran a contest utilizing the Polyvore mini editor on our ModCloth blog. We also think about engaging this audience with our ModStylists, who provide live style advice and product information for our customers and supports that segment of the ModCloth community looking specifically for styling advice on the ModStylists’ Facebook page. These sites and tools are giving girls the freedom to really become stylists and style curators like never before and since supporting the customer’s voice is our mission at ModCloth, we want to continue to think about how we can offer more contests and site features that allow her to express her creativity.

The ModCloth shopper is young, trendy and no doubt on the high end of social media usage. Based on the tools your target shopper uses to influence her friends about your product, what insights or projections can you share on social media trends?

Our customer definitely is a heavy user of social media. And, I don’t think you can talk about social media without talking about Facebook. I think for marketers, Facebook will continue to evolve its ad platform to a very interesting way of reaching their target market. I think we’ll see a lot of experimentation with commerce on Facebook. I don’t think Facebook is a great platform to replace standalone ecommerce sites, but I do think it’s an interesting way for retailers to attract customers. I also think Twitter will figure out how to monetize its platform and be an interesting place for marketers to reach their market.

As I mentioned before, there are many sites beyond Facebook and Twitter that will continue to grow and be an important part of her life. Tumblr and new sites like Pinterist become places where she can highlight her tastes and curate collections and find like-minded friends to follow that are more around like-interests than friendship. In a similar vein, our girl is sharing more often, and exciting new tools to enable her sharing like Go Try It On are letting women get fashion advice before they head out the door. Online tools are allowing shoppers to get advice from the people whose opinions are most important to them–their friends.

Our shopper is always connected, so I think we’ll continue to see massive growth in mobile, as well as marketers and ecommerce companies finding ways to connect with her in those small moments of downtime. I think part of the growth of the “daily deal” sites or Gilt has come from impulse buying — in Gilt’s case, at a specific time — but I think in all cases, an opportunity to quickly show her ideas and engage her is a fast retail fix.

Finally, social media tools are opening up the business process. Many other companies have seen the benefit of crowdsourcing. Sites such as Threadless are also using crowd generated votes to produce products. Technology allows people to be a part of business processes and make decisions that affect them, and the public loves it! Tools such as Polyvore and Kaboodle allow users to be the stylists and create new trends. These sites are able to share interesting information on trends, popular brands, and influential celebrities based on feedback from users. Using customer generated products and content will continue to be a growing trend within social.

More outwardly than most other online retail sites, ModCloth allows customers to “Be the Buyer” through an online forum built into the purchasing interface. What other ways are you using engagement techniques to influence your product offerings?

You’re right, we want our customer to be at the center of the buying experience, and Be the Buyer is a great way to have her help us decide what we should buy (and how much we should buy)! One less obvious way we engage our customer is through our merchandising on the site. We launch 25-50 new products a day, and we tend to buy in small lots, so if products sell out quickly, we offer our girl the opportunity to click “Notify me on Restock”. This allows us to gauge demand we missed and notify customers directly when the item in their size returns to the site. We also listen to how she “loves” items and how she reviews them. We believe customer reviews are so critical to buying the right product that we built our own reviews feature that allows customers to upload photos, provide their measurements, and rate on fit, length and quality.

Of course, we’re always looking for feedback through Facebook and Twitter. We have many product conversations each week on our Facebook page where we are getting great responses. Our team talks about our social sentiment cross-functionally to make sure that the big themes as well as smaller issues are understood by the team internally.

The ModCloth blog is a key feature of your brand site. What types of successes are you finding with this content?

The ModCloth blog is a great vehicle to connect with our girl, tell her our story and the unique personality behind our brand, and connect our community. The blog gives our customers the chance to learn more about who “she” is, the girl behind the outfit. We want to support the indie and vintage-inspired lifestyle through style tips, relevant news that resonates with our readers and their lifestyle, and contests that engage our readers and encourage them to feel part of the ModCloth community. Our girl loves the creative side of life, so features like fashion, culture, cooking, and DIY engage her with the brand. One of the principals we start with is that anyone who’s passionate fashion can find value and inspiration in our content.

One thing that I think sets our blog and our overall voice apart from other retailers is that we have our employees’ are the voice of our brand. We hire amazing customers as our employees and think it’s important that, as they are a part of the ModCloth community, their voices and ideas are what drive the blog. We talk about oft-avoided subjects such as plus-size clothing, or the sexist context of the retro styles we all gush over. In 2010, we wrote a three-part series explaining to our customers why ModCloth hasn’t been able to carry large quantities of plus-size clothing, and asked our readers to help us fight the industry traditions preventing us from doing so. This week, we kicked off swimsuit season with a “Vintage Sexism” post on body hair and the societal pressure for women to shave. Not the most glam topic to bring up when we’re promoting swimsuits, but we knew we could pull it off. And we did — the reader responses have been incredible. In short, the blog is a great way for our girl to engage with the brand in a “real” way and help shape it.

Thacker, who has been a member of the Board of NRF’s Retail Advertising and Marketing Association for many years, has a storied career: before joining OfficeMax in 2005 as Senior Vice President of Marketing and Advertising, he served as Target’s VP of Marketing and SVP of Marketing at Sears. (Yes, it’s true: he is the guy who brought Michael Graves to Target.) As a speaker on one of this month’s Marketing Month webinars, we reached out to Thacker for his insights on mobile, traditional advertising, his favorite retail ad of all time, and how to land the perfect job in retail marketing.

There’s no doubt that mobile provides retailers with opportunities, not only as a sales channel but also as a marketing vehicle. What do you think is the best way for retailers to measure marketing efforts delivered through the mobile channel?

I used to say that Mobile in the US was like soccer: The rest of the world got it, we didn’t. That’s all changed. I recently read that something like 60% of people are purchasing goods using mobile services. People are texting, reading QR codes, searching, voting, polling, even earning rewards with mobile. Measurement has been challenging for some areas, and others not. Tracking sales, redemption of coupons and click through, opt in, and click-to-call rates on mobile are relatively straightforward. It’s also possible to track changes in attitudes toward brands through mobile. The softer, less finite things are still posing challenges for measurement. But I see that changing very soon.

Are there any areas where you think retailers are really missing the boat?

These are tough times. People are still in post traumatic shock from the recession. Fear and doubt are the killers of creativity. I think it’s time for people to focus on nurturing, developing, protecting and championing new ideas. Many companies have talent. Sadly, the talent is traumatized. This is an area that I’m passionately focusing on in the future. Helping people think “inside” the box. Helping them maximize the talent they already have on staff.

Across mobile, social, online, and print channels, which do you think are the most effective with conversion? Speaking from your experience, how would you prioritize the four?

It’s tough to lump media into a category of effectiveness because there are always individual ads and campaigns that break the rules. That’s what advertising should always strive to do. That said, I would say that for pure and direct ROI (messaging that delivers most immediate sales results), I’d choose online, print, mobile, and social.

Thinking back over your time with Target, Sears and then OfficeMax, what has been the most fun marketing campaign you’ve been a part of?

I’ve been blessed with a long career. I would have to say that the most rewarding, and therefore fun, would be the restoration of the Washington Monument while I was at Target. People said that we couldn’t make restoration construction a work of art. We did it! The scaffolding system Michael Graves designed was amazing. There were actual attempts to make it permanent. It was a case of art and business and government coming together for a greater good. As a by-product, Michael Graves was introduced to Target as a designer. The rest is history.

At a Shop.org event a few years ago, you spoke about traditional advertising and shared your viewpoint that “If you’re going to crash the party, you’d better bring a bottle of wine.” What did you mean by that?

Advertising is a party crasher, an uninvited guest. People tolerate advertising interrupting their life, but few people would say that they actually LOVE advertising. I believe that advertisers shouldn’t forget their role. So when they crash the party, they need to give something in return. Advertising must entertain, enlighten, inspire, provoke thought, and be memorable in the most respectful way.

What brands do you see as ahead of the curve on social media marketing?

Social media is fascinating. Some of the best in my opinion are Threadless for total engagement both of suppliers and customers, Old Spice for making my grandfather’s aftershave seem current and hip, and Coke for always remembering who their true audience is.

Some of your most successful campaigns have used good, old-fashioned public relations as a way to generate media buzz and excitement. What is your viewpoint on the role of PR in traditional marketing, and how do you see the two fields working together?

One of my mantras has always been “Don’t make ads, make news!” I measure the success of a marketing campaign idea by the way it can be extended to become truly newsworthy. PR and events are key players in the mix. I always ask “What is the photo image of this idea? How would it look if it came to life as something more than just an ad? How can people ‘experience’ this idea?” Suddenly an ad idea becomes a flash mob, or a street encounter, or a viral experience, or even a fashion show.

OfficeMax’s ElfYourself campaign is widely recognized as a smashing viral success for its ahead-of-its-time creativity and low-cost budget. If you could go back to 2006 and re-launch this campaign, what would you do differently?

In many ways ElfYourself was an unexpected hit. We actually launched 20 sites simultaneously. Anne Bologna and Ari Merken wisely convinced us to experiment…to take our paltry budget and play it on an exciting new experience. I don’t think I’d do anything differently. I just have to keep reminding myself and others that it’s important to test multiple ideas. We didn’t know which of the 20 would hit. Fortunately, one was a mega hit. It’s interesting for me to look back on some of the others. A few had millions of hits as well. I’ve often thought we were ahead of our time and that OfficeMax should bring some of the others back as well. Alas.

Is the catalog dead?

Catalogs aren’t dead. Newspaper inserts aren’t dead. They may be on life support, but there is still a place for both. It’s important for retailers to understand though that they can’t expect the same return on their catalog and insert investments as they did in the past.

What’s your favorite retail TV ad of all time?

Asking an ad guy for his favorite retail ad of all time is a little like asking somebody “What’s your favorite hot fudge sundae of all time”! That’s hard. I will always love a radio ad that Chris Preston – formerly of Martin-Williams, now President of Preston Kelly in Minneapolis – did for us at Target. We were entering the Chicago market and Chris proposed that we do a radio-roadblock where we would own the exact same minute on every single radio station at the same time. This had been done on television before, but never radio. People said “You’ll never make it happen.” It’s a long story. We did. The spot itself spoofed people pushing buttons on the radio as the announcer said “We’ve taken over every single radio station in Chicago to make this announcement. Don’t change the channel. (SFX: buzz buzz music squeal) I told you not to do that…” It was a huge success. Very engaging. And a brilliant use of media.

Over the years, you’ve undoubtedly hired many young people looking to excel. What pieces of advice can you offer someone right out of college who wants to break into the world of retail marketing?

Don’t ever act your age. Be young, but not immature. Be kind. Say thank you.

What’s the best marketing advice you’ve ever received?

If you don’t go out on a limb, you’ll never taste the fruit. Great ideas are often scary.

Complete this sentence: “At the end of each day, I…”

I hope that I’ve given more than I’ve taken.

In advance of Shop.org’s upcoming webinar on successful strategies for today’s affiliate marketing programs, we asked affiliate guru Shawn Collins to share his thoughts on the ever-changing role this type of marketing plays in a constantly evolving medium, who’s who (and successful) in the affiliate marketing space and a few tried and true tips to help jump start any affiliate program. Read on for Collins’ insightful answers.

During Shop.org’s Online Marketing Month, you’ll be moderating a session on 7 Steps for a Successful Affiliate Program in 2011. What’s different now compared with affiliate programs a year ago?

Affiliates are constantly innovating. There has been an increased usage of pay-per-call, as well as incorporating video and mobile apps by affiliates.

You’ve composed several resources for newbies and non-retailers on how to earn money as affiliate marketers. Any tips for retailers on how to take advantage of outside sources who are essentially doing their marketing for them?

Retailers should think of their affiliates as their extended sales force, and provide them with the tools and information they need to properly market the company. Just as you would give an employee resources and guidance to succeed with your company, provide the affiliates with a guide to effectively promote your company with details such as your best sellers, target demographic, etc.

Which retail brands are getting affiliate marketing right? Is there a commonality between those brands that signal successful strategies?

Amazon, Buy.com, and Zappos have all been effective and successful for a long time with their affiliates programs, because they have invested in those programs with staffing and tools to foster relationships with affiliates and provide them with the resources they need. The companies that treat affiliate marketing as an investment, rather than an expense, are the ones that excel.

How has the impact of social media changed affiliate marketing?

Social media has opened up affiliate marketing for more people to participate, but some of it has been one-dimensional and junky. Affiliates should serve some purpose, whether it is to compare products, provide insightful reviews, or some other value proposition. When an affiliate just drops an affiliate link on Twitter, they are adding clutter. I wish affiliate programs and networks wouldn’t encourage that sort of tactic. But social media has also brought all sorts of innovations and ways to effectively target an audience, too.

What are best practices for retailers to balance internal SEO efforts with affiliates that may also play in the same space?

The most important thing is to have very clear policies, and to know how affiliates are promoting the company. There is no black and white when it comes to the best policies. Some companies are willing to allow affiliates to use their brands in title tags, domains, etc., while others impose restrictions on this sort of behavior. In the end, it’s most important to only grow an affiliate program to the point where you know who’s who and what they’re doing.

What are some strategies to drive affiliate performance besides deals and coupons?

Some that I have personally done are text product reviews, video product reviews, offline marketing with postcards, paid search, and relevant text links in original content. I am planning to break into the use of product data feeds with original content and mobile apps this year.

What types of technologies do you use for your own affiliate efforts?

My affiliate sites are all in WordPress these days. I started out writing the HTML for all of my sites, but switched to WordPress in recent years to better scale up my number of sites. I also build email lists, create videos, and drive traffic via social networking sites.

If you weren’t an affiliate marketer, what would you do for a living?

The basis for all of my affiliate sites is original content that I create. I love writing, and still have plans to knock out the “great American novel” at some point. I think I would be a newspaper writer if affiliate marketing didn’t come along, and maybe I still will at some point.

Congratulations on an incredibly successful Cyber Monday – your biggest sales day ever! What trends did you see develop on Cyber Monday this year compared to last, and how do you hope to keep the sales momentum going through the rest of the holiday season?

First, thank you for the congratulations. It was a fun weekend as Black Friday beat our previous record with sales up 76% over Black Friday last year. Then we were fortunate to eclipse our new record three days later on Cyber Monday with sales up 54% versus last year. All in all, over the five-day Cyber Weekend, eBags sales were up 63% versus the same five days last year. When you’re in retail, it doesn’t get much better than that.

We think there are several factors that played a role in our growth. On the macro side, there is no question more shoppers are using the internet to conduct research and make purchases. This year, we knew the holidays would be challenging so we started planning last spring. That included all facets from marketing and merchandising, to site performance and logistics. We were running A:B tests less than a week before Black Friday to come up with the optimum product detail page. And our logistics team carved out a full day in the average time it takes to get a package to the customer, which will be critical as we get closer to the Christmas shipping deadline.

In many of NRF’s consumer surveys, we’ve noticed a shift in holiday gift giving away from basics and necessities back to more discretionary, “fun” gifts. We’re also noticing an emphasis on value over price. Are you seeing similar trends this holiday season?

Clearly value is important to shoppers and we knew that would be the case this holiday so we negotiated with many of our brands to move their traditional December 26 through January sale events forward to the Black Friday through Christmas time period. Why not have your best products and lowest prices for when customers are shopping for the holidays? One by one, our brands agreed and eBags has been able to offer great deals to our customers. But to your question about basics vs. fun, we saw our luggage and laptop case categories grow 78% and 73%, respectively, powered by the strength of top brands such as Tumi, Samsonite, and Kenneth Cole. We would categorize these purchases as more along the lines of basics and we think there is quite a bit of pent-up customer demand to get back out and shop again. Retail therapy, if you will.

As online retail continues to grow, companies have been investing in site features and services to maximize their holiday sales. According to a recent Shop.org survey, a majority of retailers say they have invested in the company’s Facebook page in advance of the holidays and many say they have invested more this holiday season in a Twitter campaign or Twitter feed. Talk about how eBags is using social media to leverage its online presence.

I am a big believer in social media, yet clearly the potential of Facebook and Twitter for online retailers has not been realized. It is not a question of if, but when social and retail will converge. At eBags, we have done a nice job of building out our Facebook page and are active with Twitter and our blog. Probably the most promising area in regards to social media on eBags is how our 400+ videos are tied into Facebook. When a shopper watches a video on eBags.com, like the eBags TLS Weekender, they can click “Like” or make a comment and the video and comment are uploaded to the shopper’s Facebook account. The viral potential of eBags videos ending up on thousands of Facebook pages is exciting.

On the eBags blog you mention being thankful you get to work in the “wonderfully challenging, fast-paced world of internet retail.” What do you find most rewarding about e-commerce?

I love the fact that e-commerce is an uber-dynamic environment which allows for real-time testing, revising, and optimizing. The metrics are there for everyone in the company to see 24/7. At any time, eBags.com executes multiple online tests and customers tell us via their clicks which options work best for them. And the results are not always what you expect, which reinforces the need to test.

You recently brought your core customer service center back to the US and expanded your call center hours to 24/7. How do you think these operational changes will impact your sales this season? What prompted you to make the change?

Several years ago we split off part of our Denver-based customer call center and had many of our incoming calls handled by a team in the Philippines. This outsourcer handled calls for several other top 100 e-commerce retailers and did a nice job for us. This fall we decided to return our call center to the US. Although our new domestic call center is not the lowest cost option, we believe it is a smart investment that will pay off in both the short-term and long-term, through additional immediate sales, quicker issue resolution, and ultimately higher customer retention and satisfaction. The move to a 24/7 call center as well as offering chat, Facebook, and Twitter allows us to communicate with our customers whenever they want and through their preferred method. We are here to listen and, as shown by our two million customer reviews to date, our customers have a lot to say.

Traditional retail stores can utilize storefront window displays to attract customers and showcase hot products. In what ways can a purely online retailer establish visuals that similarly engage customers and enhance the shopping experience?

You hit on an area where we think the internet has distinct advantages versus brick and mortar. A bricks-and-mortar store has a window display that is the same for everyone and is cumbersome and expensive to change out. Even twelve years ago when we started eBags.com, being able to create a personalized shopping experience for every visitor was our goal. We made significant investments in this area in 2010 and are well on our way to optimizing personalized shopping on eBags.com. Being able to tailor creative and offerings to online shoppers is a big reason why e-commerce will continue to steal retail market share.

With airlines limiting the number and size of bags customers can carry on planes, what are some things to keep in mind this holiday season when shopping for the perfect carry-on?

The “rules of engagement” with the airlines and TSA are always changing and it is important to think about the bag you carry on. On some of my most recent flights, they are instructing the last one-third of passengers boarding the plane to gate check their carry-ons because the overhead bins are full. For this reason, we advise travelers to select a carry-on that can withstand the rigors of being checked. Also, since you give up possession of the carry-on for a period of time, make sure that the bag can be securely locked. Another trend is that travelers are packing smarter and opting for convertible backpacks that can be used as a small duffel, yet have backpack straps to make it easy to throw on your back when walking longer distances. Some of these have the advantage of fitting into regional jet smaller overhead compartments or under the seat, thereby avoiding the need to check. One last thing I tell people shopping online is to make sure you read the customer testimonials. We have over two million on eBags.com and it is invaluable to get feedback from others who have purchased and used the products. I am always amazed at the level of detail eBags customers include in their bag testimonials.

Your corporate values are respectful, resourceful, achieving, pioneering, and passionate. If you could add a sixth value, what would it be?

That is a hard one because the team of eBaggers that came up with those values spent a considerable amount of time before landing on the five finalists. Maybe I would add “fun-loving” because we have a culture that promotes having fun along the way to make sure we do not take ourselves too seriously. We are charged with navigating through complex technologies, stiff competition, and demanding shoppers. Those that see that as a fun challenge do well at eBags.

You’ve got an interesting title: Chief Marketing Officer & Senior Plumbing Evangelist. Talk about the “evangelist” component of your role. Should all retail CMOs should see themselves as evangelists?

I would certainly say that senior managers of any company should be passionate about their work. As for my title, “plumbing evangelist” started in 2004 as a riff on the Google “Search Evangelist” job title. However it quickly became clear to me that I really was an evangelist for selling plumbing online. This sounds a bit odd, but one needs to remember that manufacturers in many industries were (and still are) struggling to figure out how to keep online retailers from diminishing their brand and stripping sales from their off-line retailers. It has taken a lot of work and data digging to show some of the larger plumbing manufacturers that we actually benefit their off-line stores. That’s evangelism.

During your tenure, you’ve implemented SEO and SEM strategies that have assisted in a 1700% increase in gross revenues for the company since 2001. What are some of the best tips or tactics you’ve used, and what’s the best piece of advice you can offer to executives looking to embark on a new SEO campaign?

If you are new to search marketing, register for the next SES or SMX conference and take all the beginner sessions. While you’re there, network like a madman with the speakers. You go to Shop.org when you have the basics down and are ready to move on to more advanced topics.

The Shop.org Content Team credits you with developing the idea for the “40+ Things You Can Do To Make More Money Next Week” sessions, which will be featured again at this year’s Annual Summit. Where did the inspiration for that come from?

We were having a brief sales drop because of a technical issue and I wanted to find some quick replacement revenue. I called a few people I knew and they gave me some tips. Necessity was the mother of that invention.

As a connoisseur of bathrooms, tell us about the most awesome bathroom you’ve ever been in. What about the most off-the-wall?

The bathrooms at the Hearst Castle in California were breathtaking. Rural Italian train station bathrooms are also breath taking but in a much more literal way.

Before Vintage Tub & Bath, your resume included five years as a sales manager at an auto dealership and a few years as a stockbroker. How did you land in retail marketing?

I thought eBay was about the neatest thing ever when I signed on in 1997. I started selling everything I could get my hands on (including a few local small businesses that wanted to liquidate their slow-moving inventory). I discovered that if I misspelled some keywords the number of hits to an auction page would drop dramatically but I would often sell the item for more money or sell it much faster.

What was your first exposure to Shop.org?

I had been attending the search marketing conferences and was looking for a conference that was retailer driven and had a broader agenda. Shop.org events filled the bill nicely.

How has networking with other multi-channel retailers helped improve business operations within your company?

Networking with other business people is critical to business success. We have learned everything from which vendors to use and avoid, marketing tips, manufacturing contacts, etc.

What advice can you offer other small retailers that are trying to compete with the big boys?

1. Don’t hire out the marketing of your products to a vendor until you have done it yourself. You won’t have a clue if they are doing a good job unless you have done it first.
2. Cash is king. Spending money is always a last resort. Example: Don’t buy new equipment if used will do. Our first shipping desk was two saw horses with a door on top.
3. Niche marketing – go deep into a market. The big boys almost always go wide. You can then beat them on service and knowledge in your specific market.

If you had an extra $500,000 to use for marketing, how would you spend it?

I would convince my CEO that a year-long globe-trotting expedition to explore the world’s bathrooms would help me better market the items we sell and find new items to offer. There would be long stops in the South Pacific, Italy (not the train stations), and South Africa.

Seriously – I would get a real social media plan built.

In light of the company’s success, we reached out to CEO Glen Senk for our next Talking With… profile. In the Q&A, Senk touches on how social media is changing word-of-mouth advertising, which retail brands he finds inspiring, and the key to staying profitable in a shaky economy.

Glen Senk, CEO of Urban Outfitters, Inc.

Urban Outfitters, Inc. isn’t just one brand – it’s five brands that represent fashion, home goods and even garden under one large umbrella. What are the benefits and challenges of representing so many diverse brands?

The benefit is the diversity – I’m constantly inspired by the evolving and distinct voices in our company. Each brand is different, and compelling, and changing, and that keeps things very fresh and always interesting.

Of course, with diversity comes complexity, and it is a challenge to help each brand grow simultaneously in a way that’s specifically right for them and their customer. But that exact challenge is also what makes my job so fun.

During your keynote at Shop.org’s Annual Summit in September, you’ll talk about about how your company uses technologies to reach consumers in all channels. Can you offer one or two nuggets in advance that you’ll be discussing?

I’ll plan to talk about our evolution as a company – that is, how we started as a bricks and mortar operation and the process by which we entered new channels. I’ll also talk about why we value multichannel retailing, what it means to our customer, and I’ll dive into the operational philosophy that connects our stores, catalog, and web into one seamless user experience.

What are your opinions on social media and how – or if – it’s changing the game for retailers?

Social networking is word of mouth on steroids. Can you control word of mouth? It’s almost impossible. But we believe that if we do our job, if we’re constantly focused on wowing our customer, then we shouldn’t have to worry about controlling what he or she blogs or tweets or reviews or posts about us on Facebook.

Now, social media is a relatively new phenomenon and it does take some getting used to – for a long time, marketing was something that was thoughtfully crafted and carefully controlled. That approach still exists today, of course, but the web has created a degree of transparency that gives much more power to the consumer. As a company that loves its customer and values his and her opinion, we welcome that change enthusiastically.

A recent report by Forbes stated that revenue per square foot for Anthropologie stores has historically been one of the highest in the industry. What’s the secret to your success?

Although it’s a statistic I’m very proud of, we don’t go about it as a goal. Rather, we focus our energies on the customer experience: innovating, making beautiful products, really pushing the limits of our brand expression and constantly refining how we operate. Revenue per square foot is the result of that focus, rather than the starting point or motivation.

As a multichannel CEO, what’s your best piece of advice for managing the customer relationship at each touchpoint: in store, on the web and through communication channels?

The most important thing is to always put the customer first, regardless of the channel. As the CEO, it’s critical to communicate our values and our philosophy so that the information cascades to the individuals within each channel who actively engage in a dialog with the customer.

The recession has hit some retailers very hard, but in the first quarter of 2010, URBN  posted a 72% profit increase. From a management perspective, what changes have you made throughout the past year that speak for the increase?

I think the key is that we hire people who embrace change. So when economic conditions necessitated fast, strategic maneuvering, everyone pulled together in remarkable fashion and exercised the financial discipline and creativity necessary to operate responsibly while continuing to amaze our customers.

We made changes to our inventory composition on a dime; we challenged our design, production, and buying teams to create styles our customer couldn’t help but fall in love with – we leveraged every facet of our business to streamline all of our processes, but also to let loose creatively. Everyone pitched in and, as a result, we more than weathered the storm, we flourished.

Which retail companies or other retail executives do you look to for inspiration?

I’m impressed with Apple’s inventiveness and aesthetic, Trader Joe’s originality, Amazon’s ease of use, Chanel’s commitment to beauty, and 1st Dibs user experience and product assortment.

I’ve read about a few recent design ventures that Urban Outfitters is undertaking including Space 15 Twenty, “a collaborative space where fashion, art and music collide.” You’ve also made changes to an Upper West Side store featuring the old school look of New York City retail. Talk about the concept behind these two ventures.

Part of the Urban Outfitters appeal, today and historically, is that no two stores are alike. We believe in change and we believe in honoring what’s special about a given geography or city. To a large extent, that’s precisely what those two store concepts are about: keeping things fresh, unique, unexpected, and right for where they are and what customers we hope will walk through the door.

What keeps you up at night?

I actually sleep pretty well, but this is a business in a constant state of change, and that kind of movement is, for me, a real source of excitement. So if I am awake at night, it’s likely because I’m excited about some new idea, or plan, or hire, rather than anxious.

What word do you hope comes to mind when customers think of the URBN customer experience?

Our customer base is so eclectic, as are our brands; it’s hard to pick a single word that I’d imagine every customer would associate with us. But I would hope that customers would describe us as genuine, engaged, smart, customer centric, personalized, and creative.

What’s the best piece of advice you can offer to someone beginning a career in retail?

Become indispensable, take risks, stay humble, and learn every aspect of the business.

Your upcoming session at Shop.org’s Online Merchandising Workshop has garnered quite a bit of attention. I don’t want to spoil your session, but how about a sneak peek at what attendees can expect?

Come on, they’re secrets! How could I share them here? What I will tell you, is that after working on improving the conversion rates of ecommerce websites for more than a decade, I have distilled the essence down to 21 of the most powerful things you can do to improve your website.

Let’s say a retail company wants to get optimized and work toward a smarter, more efficient marketing plan. What’s the first step?

How do you eat an elephant? It’s a big task to get all optimized. You start one bite at a time; simple. Make your first changes, maybe one or two that I’ll recommend in the session, measure the impact, and repeat. Do this until your corporate metabolism builds up to handle more than one little bite at a time.

What brands do you think are on the forefront of web marketing optimization and are firing on all cylinders?

In my presentation, I highlight many of the brands that represent the best of Shop.org. I think many different companies are doing some things amazingly well even when others need improvement. It’s hard to fire on all cylinders in digital marketing. It evolves and grows daily. Certainly, Amazon is among the closest. Amazon accounts for nearly 25% of all ecommerce transactions in the US. I’ll be happy sharing some of those secrets from Huntington Beach.

Give us your take on social media marketing. How should retailers allocate resources when it comes to jumping in the social media world?

The world is becoming more social and connected daily and so must retailers. Go where your customers are. That’s not an opinion or a suggestion. It’s a fact: retailers ignore at their own peril. Nevertheless, it is not about setting up accounts and buying tools to connect with customers. Those are the means to an end. The end result is thrilling customers and having them share that experience.

The key is to make yourself remarkable so that people want to talk to you. This is truly about your brand and products, and not always directly correlated to immediate sales conversions. It’s more like dating to find a partner for life then scoring every night. Today, branding is so much more about what you do than what you say.

In our last Talking with…, Jeanniey Mullen talked about whether the star around email marketing is fading. What do you see as the number one mistake retailers make when marketing through email?

It’s about the content. Stop getting your customers addicted to your offers. Offers are great but if you use them too much, your customers will wait for that extra special offer and only buy then. Is that how you want them trained? I’ve seen it happen before. If you’ve got nothing else interesting to say when you’re not offering a discount, then perhaps you should be asking why your customers should care about you.

How’d you get your nickname The Grok?

Back in the mid 90s, we were working with one of those famous dot-com incubators helping some of their web properties. Author Robert A. Heinlein coined the term in his best-selling 1961 book Stranger in a Strange Land. From the novel:

“Grok means to understand so thoroughly that the observer becomes a part of the observed to merge, blend, intermarry, lose identity in group experience. It means almost everything that we mean by religion, philosophy, and science and it means as little to us (because of our Earthly assumptions) as color means to a blind man.”

The Oxford English Dictionary defines grok as “to understand intuitively or by empathy; to establish rapport with” and “to empathize or communicate sympathetically (with); also, to experience enjoyment.”

So when we were trying to come up with how to tell people about the importance of conversion rates when all they cared about were eyeballs, one of the people at the incubator suggested we create a mascot to tell our story and I became The Grok. Grokking is so much more than knowing, it’s about appreciating all the nuances and applying them in a cohesive way to improve the customer experience.

As an online marketing pioneer, how did you get your start in the industry?

I’ve been online since the early 80s when I first started my own bulletin board system on my Atari 800 and 300 baud modem. Even back then, I would change words and the menu system to see if I could get people to go where I wanted them to.

It was in 1998 that I started focusing on online sales. In the age of “The Internet Will Change Everything”, I was like the little boy who asked: Why does the Emperor have no close? Sure, I know it’s clothes, but closing sales is why companies are in business. Speaking of closing sales, I’d like to ask your readers a question.

If your conversion rate is below 10%, how do you justify that?

I look forward to seeing you at The 21 Secrets of Top Converting Websites and letting you know that you shouldn’t have to settle for less than 10%.

Looking for Jeanniey to tell you that email is the end-all, be-all of marketing? You won’t find that here. What you will find are some incredible insights on why email is still relevant, the best way to measure success, how social media and mobile play into the mix, and the best marketing advice she’s ever received.

How would you explain your company in three sentences or less?

This is so difficult because I am involved with three companies:

• Zinio is the world’s largest newsstand, leading a reading revolution where all the content we love is readable on whatever device or screen we have access to.
• VIVmag is the world’s first all digital magazine made for women who love to work hard and enjoy their success by living their life to its fullest.
• The Email Experience Council is the largest global networking community for email markets.

Phew! That was a lot.

In the age of status updates and 140-character news, how has social media changed the marketing game?

Finally! Something makes you think and consolidate your communication. The world had gotten a bit too verbose – don’t ya think? (14 characters left)

You’re speaking on a Shop.org webinar today entitled, “Is Email Dead?” I presume your answer to the session title is no…but why?

My answer hasn’t changed in the 15 years I have been working with email. Email is the 3rd mode of communication: Verbal, Written, Electronic. Saying email is dead is like saying people will stop speaking some day because it’s faster to text.

Most marketers make the mistake of looking at email as an ROI building channel and fail to miss the simple fact that email is your digital social security number. There is not one thing you can do online without registering with your email at some point.

What is the most prominent mistake retailers make when marketing through email?

Oops. I think I just answered this above. My best advice is respect the channel for all of its benefits. Getting someone to give you their email address (whether they ever even open an email you send them) drives a 27% lift in sales from the customer. Your brand impact with email is huge.

What is the best way to measure email success?

There are a few key ways based on what you are using email for. My favorite is CPO: click per open. The open rate tells you how relevant your subject line was; the clicks you get from the people who open tell you how relevant your message is. This is key.

Tell me about one of your most successful email campaigns. What was the key to success?

I have so many. If I have to pick one, it would be the email campaign I worked on with CKOne in 1998. They put email addresses on models in outdoor billboards and people, lots of people, took the time to write emails to these models. Every inbound email was replied to with an “in character email back” – there was the party girl, the nice girl, the hot guy, etc. The personal emails consumers received in return had product recommendations that drove sales through the roof. Those types of emails are so much more exciting than a standard flyer. We need to integrate email into other channels. It’s really going to be the only way to go, now that the entire world is mobile.

Which retailers do you look to for email inspiration?

Gosh – I can’t answer this one without someone getting mad at me for leaving them out. Can I plead the Fifth? If not, the only comment I would make is that the team that runs the GAP’s efforts is amazing and really understands the channel.

What are your thoughts on marketing through text messages?

In our mobile world, there are so many better opportunities than marketing through text messages. I’m not a big fan – even if someone opts in. When you are mobile, any message you receive is interrupting whatever you are doing (because you are out and about). Why build a level of resentment with – potentially – your top customer?

I hear that you used to work for Shop.org’s Chairman of the Board, Rich Last. Tell me what it was like working with Rich.

WOW – I knew that one day, my opportunity to blackmail Rich would actually be presented to me! Here I am with a whole blank page just begging me to spill all of the juicy secrets about Rich. What do I want to say first…

Many people see Rich as an intelligent and strategic thinker. I don’t. I see him as a sage guru. Back in the 90’s, when no one knew what the heck a website should do, or what a strategy for growth should look like, Rich took chances no one else in retail would. Many of those gambles paid off in a big way. Today, we face the very same, new world of mobile opportunities where apps will rule the experience and nothing will run off a web for much longer. Who better to advise on taking chances and building for the future than someone who has already done it once?

Anyone who reads this should seek out Rich and ask him 3 questions about “the good old days” to see what inspired him to take the chances he did. You will find that much of what he says will be a guide for you to follow now. (See, and I didn’t even mention…oh…never mind)

Your company, Zinio, is revolutionizing the way consumers access published content. How close are we to taking individual digital access into the classroom? Will we be seeing a classroom full of third graders with iPads in the next few years?

I will answer this by saying my 7-year-old stole my iPad so she could take it into her class and share the interactive version of National Geographic for show and tell. I think that sums it up pretty well as far as impact potential. That said, we at Zinio get some insights on new devices coming out. I can safely say in 3 years our world will be driven by mobile web access and touchscreens. The future will be about ease of access and connected content. If anyone is still thinking @ is their website strategy- they should retire now. The future is 100% mobile apps.

Kindle or iPad? iPhone, Blackberry or Droid? What do you carry and why?

I have them all. It’s my job. I don’t use the Kindle – its black and white and klunky. I use my iPad to read Us Weekly (no joke – try it – it’s AMAZING), I use my iPhone for QA stuff only, my BlackBerry because it actually has a keyboard and I can text without looking at the keys and my Droid because the Android platform has a tremendous number of benefits.

That said, I know that in the next 6 months the technology that will be introduced is going to make these all look silly. So, no one buy any holiday gifts yet. Just wait a bit longer.

For people who might be interested in a career in marketing, what’s the best piece of advice you’ve ever received?

The best advice I have ever received in marketing is this:
Never evaluate a marketing program or potential program at work.
Go home
Go running
Go to dinner
Go to the beach
Go somewhere and then look at it through the eyes of the customer.

There are too many occasions where we get too close to the business and need to take a step back.

(If you missed the episode, which provided really eye-opening insights on what it’s like to work the back-end jobs in retail during the holiday season, you can watch it here.)

You made the decision to participate in Undercover Boss before any episodes had aired. There’s no doubt that decision was at least somewhat risky. Why did you agree to move ahead?

I founded GSI Commerce and know our business inside and out. As we’ve grown larger, I have missed the opportunity to be close to the day to day activities that are at the center of what we do and the things that enable us to deliver value to our clients. I wanted the opportunity to connect with the thousands of associates that make our company successful – especially during our busiest online shopping season. Being part of “Undercover Boss” gave me this opportunity.

Your undercover experience occurred during the holiday season. For everyone who has never worked in retail during that particular time frame, tell us what that was like.

Going undercover in our fulfillment centers during the holiday season was one of the most challenging things I’ve ever done in my life. At one point, after loading trucks all day, all I could do was sit on the locker room floor and drink water. I stayed there (on the floor) for an hour.

I definitely learned about the hard work and dedication it takes to service our clients and their customers during the holiday season. I have a totally new appreciation for all of our permanent and seasonal employees.

Was there any point in the “undercover” experience that you felt completely overwhelmed or frustrated by a certain task? If so, tell me about it.

Yes! In addition to the exhausting work I did loading trucks, I also worked as a packer in the fulfillment center. I thought I’d be able to ace every job they gave me but I couldn’t event meet the hourly quotas.

What were your biggest takeaways from this experience? What did you learn about your company?

My biggest takeaway was that our employees work extremely hard and dedicate themselves to excellence. Even when they may be struggling with things in their personal lives, they still come to work every day and do the best job possible. As a business owner, I could not ask for more than that.

Can you tell us what changes you’ve made to GSI Commerce business practices, employee dynamics or customer relations since going on the show?

We are piloting a program later this month that we’re calling “A Day in the Life.” Our key corporate employees will spend about a week in our customer contact centers learning and observing. If the pilot achieves the goals, then it will be rolled out company-wide.

How did the experience of the show change the way you lead and manage your company?

This was a life-changing experience. I no longer view the company just from the eyes of the CEO. Now, I think about how my decisions will impact everyone in the company. I’ve developed a greater awareness and sensitivity to my employees’ needs.

As the founder of GSI Commerce, what led you to start a business that focuses on the back-end, behind-the-scenes part of retail?

I’ve been an entrepreneur since the age of 12, when I started a ski tuning business in my parents’ basement. After that, I went into the sporting apparel business. It was during this time that one of my clients told me about the challenges he was facing trying to figure out this whole retail-on-the-web concept.

That conversation turned on a light bulb in my head: I realized the Internet was the future of retail and my company should be the one guiding retailers through this transition. We were able to provide retailers with the end-to-end services – from website hosting to fulfillment to customer services – that they needed to build their online businesses.

Over the years, GSI Commerce has evolved and we continue to offer e-commerce services as well as additional services like interactive marketing, email marketing, product photography and online private sales — whatever our clients might need to help them grow their online businesses.

You’re one of the youngest CEOs in the country, and you’ve always been your own boss. What can you advice do you have for people who are thinking about starting their own business?

My advice is to have a vision, a solid business plan and the ability to accept that you are going to have to crawl before you walk. Prior to GSI, I tried my hand at a few different businesses and it took time to get it right. Even though I’m young, trust me when I say success does not happen overnight.

What would you say to other company executives weighing the decision to participate in “Undercover Boss” – or even go undercover in their own company?

If you are a CEO and are approached by Undercover Boss, you have to do it. It is a great way to connect with employees, figure out what their needs are and learn how to better run your business.

After taping a show that brought you back to the inner workings of your own company, what was your favorite part of the entire experience?

The experience was interesting from start to finish. I really liked connecting with employees on one-to-one level as a colleague and not the CEO. I met some incredible employees who have faced some difficult challenges in their life but come to work everyday with an extremely positive attitude.

What do you love most about retail?

That it’s always evolving. Customers are in control of the retail experience, which means retailers have to keep up with their ever-changing demands or risk being left in the dust. That’s what GSI is all about: equipping our retail clients with the insights and services they need to meet consumer demand and stay competitive. It’s an awesome job.

This month, Bazaarvoice will celebrate the fourth anniversary of its launch of ratings and review products. There’s no disputing that an incredible amount has happened within that time when it comes to acceptance of and technology behind ratings and reviews. Talk about the differences, then and now.

The crazy thing to think about is that just four years, nine months ago (we started our company on May 2, 2005), only three retailers in the entire United States had customer reviews on their site. Now we serve more than 50 of the top 100 retailers here, and more than 25 of the top 50 in the UK (and equal ratios in France, Germany, Australia, and a number of other countries).

What began as simply product reviews on retailer sites has expanded to a variety of types of consumer-generated content in 17 industries, 25 languages, and 36 countries. At the end of the day, Bazaarvoice is a digital reflection of word of mouth, which has always been with us since the dawn of the original bazaars (think “voice of the marketplace”). So there are many industries where word of mouth works. Today we have manufacturers gathering reviews on their own sites and sharing them with retailers to transform channel advertising on retailer sites in a world where 80% of consumers now seek reviews while shopping. Industries like financial services and health insurance, to name a few, are also increasingly requesting reviews from their consumers. We’ve also seen the quick adoption of community Q&A, where consumers can ask other consumers and brands specific, real-world questions about products or services. Even brands that don’t sell online are gathering reviews, Q&A, and shared experiences to build community on their sites. The implications all of this customer-generated content has for transforming the world of commerce as we knew it are truly profound.

We’ve been hearing for years that reviews and ratings are what the customer wants. That said, in what ways can retailers use this immediate, candid feedback for their own purposes to improve products, experiences or make major company decisions?

I’ve heard literally hundreds of stories from our clients that have used reviews and other content to improve everything from product design to shipping processes. One of the best examples is from Oriental Trading Company. They created an internal team made up of people from all over the organization who read negative reviews and changed more than 700 products to address consumer concerns.

For example, they saw that one of their teaching products, an inflatable solar system, was going “flat” very quickly, so the product had a low overall rating. They worked directly with the manufacturer to improve the product, then took new photos and wrote new website and catalog copy to better set customer expectations. Today the product is rated twice as high as it was before the changes, and earns several rave reviews.

Another good example is from Rubbermaid. They noticed low reviews on their Produce Saver product; however, their product testing had proven it worked the way it should. Reviews helped them understand that consumers didn’t understand how to best use the product, so they wrote an informative blog post and added new, clearer instructions to the package.

Do you feel the recession has impacted how today’s consumers make purchasing decisions?

The recession has definitely made consumers more carefully consider their purchases, making authentic input from other consumers even more important. The emotional pull of buyer’s remorse has never been stronger in an economy where the consumer saving rate is 5%. Yesterday’s consumer may have referenced Consumer Reports. Today’s consumer may look at Consumer Reports, talk to their neighbors, and read online reviews to make the best decisions. Nielsen reported that 81 percent of online shoppers read product or retailer reviews by other customers when doing their holiday shopping. The multichannel implications are very serious, especially when you consider how mobile is accelerating the adoption of browsing the Web to read reviews while shopping in the physical store (or at home, while browsing through a catalog).

With mobile all the buzz in retail right now, talk about MobileVoice, the platform your company launched last year.

We’re excited about MobileVoice, which lets a shopper access reviews anywhere, instantly seeing the input of thousands of consumers in the palms of their hands. Sephora launched MobileVoice and it continues to be popular with in-store shoppers, who can easily access 700,000 reviews at m.sephora.com. We’re looking forward to even more brands adding mobile reviews to help in-store shoppers make purchase decisions. You can see the huge display from 2009, when TurboTax encouraged consumers to read mobile reviews in large retail stores. Each year, they find new ways to help consumers easily access customer reviews to make purchasing decisions, and this had a huge impact.

I’m sure this is not a new question for you, but here it goes: What would you tell a retail CEO who is hesitant about implementing ratings and reviews because they are concerned about negative comments?

I’d say,

“Every day people are coming to your store and having experiences – positive and negative. You’re kidding yourself if you think all customers have great experiences, and the truth is that most unhappy customers won’t ever take the time to write a letter or complain to a manager. So, what happens? You see the negative effects in one way or another – defection to your competitors, high return rates, and decreasing sales. Why guess at what is happening when you can make it easy for consumers to communicate with you, and each other, so you can solve these problems and uncover new opportunities?

“You should also note that our research over the past four years has shown that over 80 percent of all reviews are positive – worldwide. There’s simply no reason to hide from reviews. They are proven to increase sales, decrease returns, lift customer loyalty, and transform the practices of your marketers and merchandisers. To think you can hide from the effects of word of mouth are misguided, and there is no debate about the positive, highly quantifiable effects of embracing it.”

I hear you’re about to add another title to your bio: “author.” Care to confirm/deny/elaborate?

Corporate culture is a huge passion of mine, so I’m writing a book about building a great culture. The working title is How to Make Your Company Suck Less. It’s based on my experiences in founding five companies (Bazaarvoice, Coremetrics, and three other smaller endeavors), and I’ve reached out to other CEOs and experts to interview them, too.

I’m really excited about this new endeavor, and I’m donating all of the proceeds to charity. My gift when I speak on this topic, which I’ve done about 25 times now, are CEOs telling me that our ideas made a real difference at their company. We spend most of our waking life working. Make it meaningful (and think of the powerful message in Man’s Search for Meaning by Viktor Frankl)! Life’s too short…

As a member of Shop.org’s Board of Directors and regular sponsor and attendee of both Shop.org and NRF events, what are you looking forward to most about the inaugural Retail Innovation & Marketing Conference next month?

As you mentioned, this is a new event for Shop.org, and I was happy to be one of the champions for it at a Shop.org Board meeting. We are bringing together many of the most innovative minds in online retail, including the vendors that serve them and the investors that back them, to discuss what the future disruptions will be. It is based in San Francisco, on the north-end of the hub of technology innovation in the U.S., Silicon Valley. I hope this turns into a mainstay for Shop.org, and I expect it to be one of our best events ever.

In your opinion, what’s next in the world of customer-generated content?

I think we’ll see more of what Intuit recently did with TurboTax, with their Friends Like You functionality. As detailed in BrandWeek, TurboTax combined the power of consumer reviews with the influence of your friends – specifically, Facebook friends. With Friendalyzer, you can see which TurboTax products your friends used and read their reviews directly on the TurboTax site, while you’re trying to determine the best product to use. It truly customizes and personalizes reviews for consumers, and I think there is much more of this type of integration to come. You can find people in situations like yours – new baby, bought a house, etc. – and learn about their experience with TurboTax. The mass of reviews will continue to let consumers hone in on opinions that are most relevant to their own. Seth Greenberg, director of national media and digital marketing for Intuit, will share his learning at our upcoming Social Commerce Summit in April.

As a young entrepreneur, you’ve received incredible accolades from the business community. What guidance or tips would you give people who are thinking about starting their own businesses?

You have to have passion and follow your dreams. You have to be 100% committed to reaching your goals. I started programming at age 7 and I’m 38 today. While that may sound cool now, it wasn’t when I was growing up in Texas (in the days where it was football or nothing for boys). But I feel very lucky to have found my passion at such a young age. Find yours!

Also, don’t ever be afraid to surround yourself with people who are smarter than you are – there’s always something new to learn. If you ever reach a feeling of “you know it all,” you are in for a hard fall eventually. Or, worse, you’ll never take risks in life. Several of my mentors are in their 60s and financially they’ve proven a lot, but they are always humble and always learning.

First and foremost, put people and culture first. When you find passionate, smart, energetic people, take care of them and realize that culture needs to be nurtured constantly. Companies have a soul – nourish it. Unless you run a company that is powered 100% by robots (except for yourself, of course), you have to learn how to motivate people.

Give me your best sales pitch on the reasons to visit – or live in – your hometown of Austin, Texas.

What can I say? Austin is so cool – talk about a city that generates great word of mouth (just listen to passengers on a flight to Austin). There’s a vibe in Austin that attracts smart, creative people and lets them be themselves. Cost of living is great here (allowing you to focus on more fulfillment in life than the Maslow hierarchy-driven shelter), and it’s a great environment for entrepreneurs because of the beautiful surroundings, live music, and just a wealth of things to do and see at any time (SXSW, for one, is coming up). I was born here and although I’ve lived in San Francisco and Philadelphia (both great experiences in my life), I’m glad to be back. Even as Austin has grown exponentially, there’s still this laid-back feeling and friendliness to the city that makes it unique. People really help each other here – there is a real sense of community.

I read an interview where you said your first job was working at your parents’ furniture store. What did those experiences teach you about retail?

I read Sam Walton’s book, Made in America, when I was at The Wharton School earning my MBA. He was the leader I chose to do a report on for my Leadership & Teamwork class. Sam’s key to success was that he spent a lot of time in his stores, and his competitors’ stores, observing real-world customer behavior. Growing up in my parents’ store, I did the same. But I also spent over 20,000 hours programming from ages 7 to 21. So I blended my two passions – retail and technology – and never looked back. Coremetrics provided the “eyes” you needed to observe in-store behavior (on the Web). Bazaarvoice provided the “mouth” and “ears.” At the end of the day, most Web innovations can be tied to offline innovations. Google is the world’s biggest and most efficient Yellow Pages. Facebook is the world’s biggest High School Yearbook, cocktail party, conference, or dinner between two friends. Bazaarvoice is the “voice of the marketplace.”

If you could have dinner with six people in the world, who would you pick and why? And where would you take them?

Mahatma Gandhi, the Dalai Lama, Sam Walton, Warren Buffett, Eric Schmidt, and Bill Gates. They are all great leaders and have ultimately served the world, and society, with great humility. Bill may be a controversial choice given some of Microsoft’s past competitive tactics, but I really respect how he is dedicating the entire second phase of his life to serving the global community instead of selfishly bathing in his riches. We only live once, and the ultimate goal is to create Heaven on Earth.

You seem to be constantly moving in a million different directions. How do you unwind?

At the end of the day, my biggest motivation is my family. My daughter, Rachel, is 5 years old and our son, Levi, is 6 months old. My wife, Debra, and I have been married for almost 14 years and she has been an amazing life partner. There is nothing more important to me than the three of them. We often spend vacation time together in Hawaii. There is no better place to unwind with family than Maui. It has it all – varied terrain from beaches to mountains, great food, breathtaking sunsets, perfect weather, and friendly people.

In a recent blog post, you outlined six ways for management to manage social media. In one of the suggestions, you said managers should lead by example and participate in many of these networks. If you had to sell an executive on the use of social media, both personally and for his/her company, what would you tell them?

I’d tell them to go Google themselves. Check out what people are saying about you, your brands, your senior management team, your competitors and the industry you serve. Check out places like Google Blog Search, Twitter Search, Technorati, IceRocket and more. You might just learn something or you might simply realize that there is zero conversation around you and your brands. And, here’s a hint: if there’s no conversation about your brands… that’s not a good thing. So, while this isn’t a tactic to “sell an executive on the use of social media,” it’s a great way for senior executives to understand where they sit and play in the digital landscape.

Shop.org’s eHoliday study found that 47% of retailers are adjusting to the economy this holiday season by investing more in social media. What are your thoughts on that strategy?

On one hand, it’s exciting to think that retailers are going to start listening and engaging in the many online conversations that are taking place. On the other hand, if they’re doing this because they think it’s a fast and cheaper way to break through the clutter, my guess is they’re going to be in for a very big (and painful) shock.

One of my new favorite thoughts is this: you can’t build community when you need it, you had to have been fostering a community, so that when the need arises, those community members are there for you. If retailers are just starting to build community now, odds are it won’t work in time for the holiday rush.

What do you think is the biggest mistake a company can make regarding social media?

A lot of companies have professionals who run around from boardroom to boardroom asking questions like, “what are we doing on Facebook, YouTube and Twitter?” To me, that is the biggest mistake. Don’t ask “what are we doing?” ask “why?” Once you can figure out why your company should be on Facebook, YouTube and Twitter, you’ll be able to tie it directly into your strategy and your ROI. “Why?” is strategy, “What?” is a tactic. Too many companies are getting tactical without the strategy and then they’re left wondering why things are not really working out for them.

Name five retailers handling social media really well.

H&M is doing amazing stuff (especially on Facebook), Best Buy has been highly engaged in building community, Wal-Mart has been making some great moves with consumer reviews and sharing applications, Zappos has always been a blue-chip social media marketer, and I’ll leave #5 open for the many mom and pop operations that are really making serious in-roads and making their business that much more social and open.

Your book, “Six Pixels of Separation” was recently published. Tell me about the motivation behind the book and some of your favorite components.

My motivation was simple: write a business book using business language to get business people who are on the fence about the digital channels to better understand the changes happening in their world in a format they are most comfortable with (a business book). Along with that, I was encouraged to help those who are already deeply embedded in the channels and platforms to have one, centralized place that really looks at the changes in media and how this affects marketing and business. My favorite component of the book is the base premise that personal brands will rival those of the biggest corporate brands. As people become more connected and social, they expand their networks beyond geographical borders and can cross-communicate to masses – which is something we could never do before the advent of social media.

When you’re not blogging, how do you spend your days?

I spend my days thinking of stuff to blog about! Seriously, I am the President of a digital marketing agency called, Twist Image. We have close to 100 full-time employees with offices in Toronto and Montreal. We work with world-class brands, and I spend most of my time leading business development or working internally on client strategy. Everything I do: the blog, podcast, book, speaking, etc… all goes straight into Twist Image. We were just named one of the top ten marketing agencies in Canada by Marketing Magazine, and the only pure-play digital agency to make the list. So, that’s when I spend all of my days.

One of my favorite blog posts of yours recently was how people can easily and simply create content. While the post gave some great ideas about how to get started when you feel stuck, my question is really the reverse: can a person or a company ever have too much content (ie: too many Twitter posts or Facebook updates)? How do you know when it’s overkill or how can you keep that from happening in the first place?

I always laugh when I see self-proclaimed “experts” or “gurus” in these channels as the majority of them can’t be getting any client work done, because all they’re doing is tweeting and Blogging on their own behalf 24-7. I think there is a fine line, and companies have to figure out what I call, “the pulse” of how often to push content out there and how frequently to comment and add their thoughts elsewhere. Without knowing what the right pulse is for your specific business, I think things can get a little excessive or even a little too ghost-towny. There’s no specific formula as to what constitutes a good pulse, but once you find it, you’ll know.

How did you get started in the digital marketing space?

I had one of the first modems, and as soon as my computer connected to another computer, my brain exploded. My background is diverse. I used to publish music magazines (and yes, I put them online when most people didn’t even know what an ISP was), and once the music industry got tired, I moved over to help launch one of the first meta search engines on the Web (imagine, I was in the search game years before Google even existed). From there, I did a short stint at a mobile content company before meeting my business partners at Twist Image. In all of those professional shifts, the one key – and underlying component – was digital marketing. It was always my passion. It still is.

You’ve written a lot about the newspaper world and its struggles to make money. Knowing everything you do about digital marketing, if you were a newspaper publisher, how would you make any money right now?

I’d focus on publishing compelling content in audio, video, images and text that people were willing to pay for. If that didn’t work, I’d focus on publishing compelling content in audio, video, images and text that advertisers wanted to pay for. Bottom line, newspapers never sold content: they sold advertising. They need to figure out how they’re going to create some kind of relevant and worthwhile online advertising packages or they’re going to have to figure out how to sell content online. Both models are not easy and both models are going to require time and significant investment for them to flourish.

I saw in your bio that in one of your speaking engagements, you shared the stage with Dr. Phil. What on earth were you both talking about?

In fact, it was my first major public speaking event. The event is called The Power Within and they run these full-day leadership and motivational events. It’s usually five speakers. This one event was being headlined by Dr. Phil. It was in front of about 5000 people and it really set the stage for me in terms of discovering my passion for speaking in public. I am forever indebted to the good people at The Power Within for giving me that chance/opportunity, and it has lead to some fantastic events and business-building opportunities.

What’s your mobile device of choice, and why?

I currently have a BlackBerry Bold. I’ve been a BlackBerry power user since they first came out. I am also about to pick up an iPhone 3GS as I need to play more with the apps and augmented reality. Something tells me, I’ll be using both – together – instead of choosing just one.

Tell me something about you or your company that few people know.

I think few people know just how big and impressive Twist Image is as a company. I think most people have this preconceived notion that I’m just some guy who blogs, tweets, writes articles and speaks. It’s funny how being the “face” of an organization can sometimes create that misconception in the public. If people only knew how much time, effort and passion I put into Twist Image, its current growth and its future, I think it would shock them.

Have you seen the shopping habits of customers change as a result of the recession?

We have seen changes in how customers are shopping. The footwear industry has seen a pullback due to economic uncertainty and unemployment. What is great for us is that kids continue to change size and our children’s business is doing well — even in a recession.

We’ve recently seen a lot of favorable macro-economic data (GDP and other leading indicators) that suggests that the recession may be ending soon, but this was a consumer-led recession and the high levels of unemployment currently at play could slow the recovery on Main Street and at retail. Employment growth is really a necessary factor for vibrant growth in the consumer sector.

As a lower-priced brand, one might argue that Payless is well-positioned when people are trading down, but that customers might disappear when the recession ends. How is the company trying to hook consumers to ensure they’ll stick around even when the economy bounces back?

We are well positioned. We’ve actually gained market share, driven in large part by our success in our children’s category. Cross-channel shopping is not as prevalent in all footwear categories, and the trade-down effect for us is somewhat mitigated by heavy discounting in the off-price channel.

Our strategy, regardless of the economic climate, is to remain focused on the consumer. And we are attracting new shoppers every day with our newest brands like the Zoe & Zac green brand, the Unforgettable Moments by Lela Rose special occasion line and the Christian Siriano for Payless designer brand, among others. We can be successful if we understand our customers’ needs and desires, and then find innovative ways to deliver great product in a special and dynamic way and provide an outstanding, thoughtful experience in our stores. As well, our CRM capabilities have grown beyond our expectations in the last few years, and are providing us with meaningful new insights on how to reach and connect with our customers on a deeper level.

Just a few weeks ago, Collective Brands re-launched its website. Tell me about some of the new bells and whistles, as well as why you moved forward with a redesign during an economy like this one.

Since Collective Brands was formed, we have worked hard at developing our strategy, building our dynamic teams, positioning our brands and integrating our company to provide a powerful platform for our individual brands to leverage as they execute their unique strategies for their target customers. The core strength of Collective Brands is the world-class brands that are platformed by shared resources and infrastructure in the global marketplace. We have made tremendous progress, and we have a great story to tell about what a dynamic business Collective Brands has become. The new website is designed to provide our core audiences — potential associates , investors, media, business partners, and others — with a resource that fully illustrates the vision, strategy and story of CBI through a web experience that is engaging, informative and compelling. Many people have an incomplete understanding of Collective Brands, and this new site provides a singular place that communicates the breadth of the businesses and brands, the character of the company. While CBI is only two years old, we have a rich heritage and diversity of brands, products and people.

I see that people can become a fan of Payless on Facebook or follow it on Twitter. What are your thoughts on the role that social media is playing in retail right now?

Social media is clearly an innovative new way to reach customers, and like any consumer engagement tool, we want to be thoughtful in our approach to make the experience meaningful. We want to utilize the forum to listen and engage and interact.

One of the programs that Payless is involved with is Shoes4Kids, which will donate more than 77,000 pairs of shoes to children this holiday season. Tell me a little about the program.

Payless Gives is a program that I’m very proud of. It really started last year with an idea…a “what if?” What if we were to give away $1 million worth of free new shoes to kids in need during the holidays? Could we do it, and if so, how? I posed this question to our leadership team, who really stepped up and rallied around this important holiday giving idea. In just weeks, we organized a massive grassroots campaign, secured nearly 3,000 applicants, selected more than 630 charity partners, sent them the coupons and the kids started shopping! It was a groundbreaking campaign.

There is a massive need for children’s shoes and we are in a strong position to help out. But the need is 10 times what we did last year…and it’s international. So this year, we expanded beyond just the U.S. to Canada, Puerto Rico and in 10 Latin American countries where our stores are located. We expect to give away more than 77,000 pairs of free new shoes valued at more than $1.2 million through a network of hundreds of localized charities. Oct. 30 is the application deadline for charities, and we are wanting as many charity partners as possible to apply to help us create an extensive and wide-reaching network to get the shoes into the hands of children that need them the most. The grassroots approach is important because it ensures widespread and diverse coverage in urban and rural areas. And it helps support the localized nonprofits — the smaller charities — which are seeing less funding support as well, due to the economic crisis.

Information on how non-profit organizations can apply and the selection criteria can be found on our site, www.paylessgives.com.

I recently read about a new line of Stride Rite shoes, which helps children just learning to walk. Tell me about the new shoes.

Collective Brands is committed to product innovation, and this is a strong example of how our Stride Rite team is using innovation and technology to create products that really make a difference to our customers. Stride Rite partnered with the prestigious Leon Root, M.D. Motion Analysis Laboratory at Hospital for Special Surgery in New York to better understand the effects of footwear at the important learning-to-walk stage of a child’s development. The research enabled the Stride Rite team to create a new collection of footwear for toddlers featuring a patent-pending innovation called Sensory Response Technology that helps guide young children to walk in the healthiest way possible. This groundbreaking line of footwear was launched this fall, and is gaining market share and validating Stride Rite’s premium brand position as the premier brand to promote healthy feet for children.

I hear you make regular visits to your stores. What do you learn from those experiences and why do you think interacting with customers is so important?

Getting to the stores is critical. It is where our customers come and our people interact with them. When I visit stores, my approach is to listen, observe and ask questions — to get first-hand insights. Besides, it’s the place where people are having the most fun so I truly enjoy it.

You’ve had some incredible experiences at well-known retailers like J. Crew, Cole Haan, Revlon and Tommy Hilfiger. What did those different positions teach you?

We learn from all of our experiences. The commonality I’ve found in all my career experiences has been to know, respect and entice the customer with great product that is well presented and valued. Make sure you have a thoughtful feedback loop and keep your head up as you look forward, while also understanding the road your brand and business has traveled. Make sure you know what makes each brand and retail destination special and unique in the market. Amplify that uniqueness and keep it focused on its core. The business of retail and brands is fun and challenging work that is immensely invigorating and fulfilling.

What would you say to anyone considering a career in retail?

Stay focused on the customer. They hold the key to any retailer or brand success. Be ready for dynamic action, pace and change. It’s a great place to be creative, work with teams and build. It’s also great because if you make a mistake you can mark it down, learn from it and move on.

Which leaders do you look to for inspiration and what traits do they possess that you try to emulate?

People who are focused on the consumer, who master the fundamentals, respect the teams they work with and drive to the win.

What shoes are you wearing right now?

Sperry Top-Sider dress loafers. I am in here in the our global headquarters offices today, but when I am in my Sperry’s I can take a moment to think of a great day on the water.

Let’s begin with some exciting company news. Tell me about some new projects in the works, including Jetsetter.

We’re launching a new platform in mid-October, which is a way to be able to surface some of the new categories we’ve been exploring. It won’t feel like a different experience for you if you’re coming in by email, but it does allow for a lot easier navigation and cross-promotion of some of the new sites.

We are going to be launching Jetsetter.com. It is like Gilt in many ways; it’s a flash-sale site. There’s a lot of great, great inventory out there, and we’re presenting an edited selection of experiences for people. We’ve done three or four test sales and they’ve been very successful.

In a Forbes article which ran last fall announcing your new position, you said you were already a fan of the company and that you “understand why members describe it as an addiction.” What do you think makes it so darned addictive?

Gilt did not feel like other e-commerce sites, which have a left-hand navigation and are very much products of the internet. This felt like something that was more editorial, yet had a very simple user interface. It was gorgeous, it was beckoning, and it was easy: two clicks and I was on a product detail page, two clicks and I could buy. That simple, fast fun is really something that I think they’ve done brilliantly, long before I came.

The longer that I played with it and the longer I’ve watched our members’ behavior, I think there are a number of things that are addictive: it is appointment shopping, it’s new every day. You know what brands are going to be sold but you don’t know what’s going to be inside the sale, so it’s like opening a present. There is that thrill of the hunt, thrill of the chase, and there’s a certain kind of gaming almost about this process. Gilt is bringing fun and excitement back to shopping, and I think that’s a large part of the appeal.

Do you believe your customers are drawn to the exclusivity of a shopping club or do you think Gilt would be as successful if it was an open e-commerce site?

I think there’s definitely something about it being invitation-only that makes it special. Anyone who has ever been to a live sample sale knows that there is a certain allure to the fact that you’ve been one of the lucky ones who’s chosen. And it does make you go that day, and there’s definitely something to the fact that this is an invitation-only site.

Before taking the reins at Gilt Groupe last fall, you spent nearly four years as the head of Martha Stewart Living Omnimedia. What were some of the biggest challenges in making the transition from a media company to e-commerce?

The Martha Stewart company is media and merchandising; they’re almost equal parts. That was my first merchandising experience, though the e-commerce part of that was a very small part of our overall revenues. The biggest shift or transition was really from a more mature company to a start-up that was really in hypergrowth. That was a truly revolutionary change for me on many levels.

Some have said that sites like Gilt, ideeli and Rue La La are well-positioned now, when the economy is suffering, but that it may be difficult to sustain this growth when the economy rebounds. What are your thoughts?

Nobody knows, ultimately, but there has always been a big industry around excess goods. Many brands have a large outlet business. This is not only something that emerged during this economic downturn; it’s been part of the life cycle of goods forever.

I think the bigger factor is who gets the great goods, and will people be cutting much more tightly as they go forward. So far we’re not seeing that. Certainly there aren’t as many excess goods in the overall marketplace, but that’s not a bad thing for us.

NRF has a Port Tracker report where we look at traffic coming into the nation’s ports. What we found this year is that retailers were cutting back inventory to about 2002 levels. Have you seen that affect business?

No. This is a huge industry, and we are not a billion-dollar company yet. It’s not impacting us.

On some levels, it’s actually better for us because I think there is less great inventory out there and I think we’ve got the best assortment. I think retailers’ inventory levels are maybe even a positive for us in the coming year. We have a lot of good brand relationships and we’ve got customers who know what they like and keep coming back.

During your session at the Summit, you will be talking about how viral marketing brings in new customers. Can you elaborate on this?

The biggest element of our marketing that our company benefits from is our “invite a friend.” We still bring in well over half of our members every year through invite a friend. It’s a hugely valuable marketing tool for so many reasons, not the least being that you tend to open things from a friend a lot more quickly and a lot more readily than if it’s coming from some institution.

You spent many years in the entertainment industry before your recent foray into retail. While those industries are different in many ways, several smart retail executives I’ve talked to say that retail is really just repackaged entertainment. What do you think?

That’s absolutely right. I think the best retailers do view their stores as a show. You have to grab your customers in the first act – when they walk through the door. Whatever they see first is critically important. Making sure that they stay, essentially, and going further into that stage is just as important.

I actually did one interview where, without thinking about it, I really was talking about what we do every day as entertainment. The interviewer challenged me and said, “You haven’t gotten out of your old way of thinking.” That may be true, but I do see so many elements of what we bring to people every day as being very similar to actually programming a network. Every day there’s a new show.

Do any retailers come to mind who do “entertainment” really well?

Offline, I think J. Crew has done a great job. The Collection store on 79th Street and Madison is fantastic and really well thought-out. They’ve taken a really smart, edited selection of their product and they have created a store that is for that Upper East Side customer. It feels completely different in there. I think Zara has a really great online store, and it’s even more interesting because it’s lower priced products.

In an interview with Advertising Age several years ago, a colleague illustrated your “unflappable” demeanor with a story about how, when you were pregnant, you made sure staff got to a screening before you headed to the hospital to have your baby. True story or urban legend?

Actually, I went to the screening with them and realized, “I can’t sit through this.” I went to my doctor’s office and my daughter was born about 20 minutes later.

Gilt is growing quickly while many retailers are shedding jobs. Can you share any insight about the company for people who may be interested in applying for one of your dozens of open positions?

We have 104 open positions right now at every level – we’ve got openings for stylists and art directors at our photo studios, we’ve got openings for warehouse employees and we’ve got openings for senior buyers and senior marketing executives. It’s a big range. We’ve been hiring very quickly.

We are launching a much more expanded home collection, we’re launching men’s as a separate site, and so we’re building out those teams as we speak. This is a much more complex business at scale than you would think. It’s a pretty easy business to enter, but it’s a difficult business at scale. We are moving tens of thousands of SKUs in and out all the time. We have new products every day; there is no core inventory here. So sale operations, warehouse operations, receiving, shipping, the tech platform, are all very complex.

This is a business where everybody comes at the same time. Shoppers all come to the door at about 11:55 and they race through to be the first people into the sale. Several hundred thousand people are trying to add to cart at the same time or trying to get through checkout. It needs very good operational minds, very good technical minds and great merchants who can both source and create sales.

You spent almost nine years with the Walt Disney Company where you served as president of ABC Entertainment, developing television shows such as Desperate Housewives and Grey’s Anatomy. What’s your favorite TV show right now?

Glee. It’s fantastic because it breaks all kinds of rules. It’s trying something very ambitious and those are always the shows I like best. Most of the time, they reach too far and something doesn’t work. This one happens to be awfully good.

Where do you look for inspiration?

I do a lot of reading, I look at a lot of magazines, I go to a lot of art galleries, and I visit a lot of stores. Also, I’ve got two daughters who are 24 and 20, and two step-daughters, and they’ve got tons of friends. Their friends are a huge resource for me. I see how they dress, I see what obsesses them, what shows they watch, what stores they walk into, what sites they access, and that’s hugely valuable.

You’ve been in the retail industry now for nearly a year. What have you learned that has surprised you?

I can’t tell you this completely surprised me, but it did confirm something for me: the customer is very smart. They are very savvy, they know what they like, and they’re generally right. You’re never going to be able to sell something—no matter how beautifully it’s presented—if it’s not pretty great, particularly in this economy.

I think that the people who are drawn to fashion at any price point tend to have looked at enough clothes over their lives that they are very savvy shoppers. They’re always going to be able to find the gem wherever it exists. We are well-served to watch them.

Jayne will be at the Shop.org Annual Summit on Tuesday, September 22 to sign copies of her book.

Today is the day GenBuY is published, and I know it’s been quite a project! Tell me about some of your favorite parts of the book.

I loved hearing and writing the young people’s stories about their relationship with brands and stores. It’s amazing how much what they buy – or long to buy – says about what they’re going through at the different stages of their lives. No matter what I’ve covered, I’ve always been intrigued the most by why people do what they do – whether it’s commit crimes, take driving risks or collect designer jeans.

Some of the teens’ obsessions with, umm, undergarments – one young lady had several dozen bras in every conceivable color and pattern – video games or sneakers were both mind boggling and revealing from a marketing standpoint. How to create or tap into these yearnings for various fashions or technology? We came up with some answers.

I knew we were on to something when I learned what was up with the various collections of “stuff’ – from Webkinz to flip flops – my 9-year-old was amassing in our two years of research and what was driving her fledgling passion for fashion. I’m also far more prepared for at least the shopping side of the teen and 20-something years now.

In researching for your book, what surprised you?

It was quite stunning what powerful consumers these young people are. The more we researched, the more convinced we became that this was truly the generation retailers and marketers need to target to thrive and even survive in the new economy. Their clout comes from their purchasing power (given that they have their own money, plus parents, grandparents and others shopping for them); their love of brands and shopping; and their influence over household buys.

It was also surprising how much the business relationship with them needs to mirror a personal one, including respect for their opinions and involving them in decisions. That’s what some of upstart websites such as Karmaloop and Threadless do and we think it’s going to have to be the way more established brands deal with their Gen Y customers – and employees.

It’s just so important for marketers to understand what’s makes Gen Y tick because that’s what makes them click — and buy!

I’ve heard that the inspiration behind your book came from a Shop.org conference session. True?

Indeed. A few months after I started on the retail beat in 2006, the women at Resource Interactive pitched me to do an article on findings they were going to share at that fall’s summit on Gen Y consumers. I agreed (That’s unusual right there! I probably do 1% of the stories I get pitched. See below.) I interviewed some of the teens in their study and found their digital and retail lives fascinating. When consumer psychologist and marketing professor Kit Yarrow and I decided to write a retail-related book the next year, it was the topic I most wanted to examine more deeply. She agreed it was the most compelling topic we could cover when it comes to retail.

As an outsider looking in on the industry, what do you think retail has in store for the next six months?

Well, I read the same reports everyone else does, but am probably more optimistic by nature than most. I do informal polls of USA TODAY’s 2,000-member Shopper Panel regularly and find many are starting to spend again – at least the ones who are still employed — but most say their buying habits have probably changed forever. Will luxury retail ever return to its pre-recession levels? That’s hard to imagine. But I know I have my own bad case of pent-up demand and many of the subjects of our book – to the extent they cut back at all – are dying to get back to some serious shopping. So I do think sales will start to improve.

What do you love about retail? What frustrates you?

The passion people in this industry have for their work makes retail a far more enjoyable beat than most I’ve covered, such as airlines or antitrust. I do rather love to shop so it’s fun – though expensive! – to do interviews at stores. And it’s very cool to be hearing about the latest trends in fashion and merchandising and to be able to call it “work.”

That said, it is frustrating – and perplexing – that many retail executives are so reticent about talking to the media, particularly when there is no shortage of “experts” out there ready to give their take on what retailers are doing right or wrong. I’m surprised and disappointed more don’t take the time to get to know reporters before they’ve got big news to pitch or bad news to try to spin. As it is with consumers, it helps to have a relationship with the media.

As a retail reporter for the last three years, you’ve undoubtedly spoken to a lot of retail executives. Can you tell me which interviews were the most enjoyable for you?

I loved hanging out with the loss prevention guys – at Bealls in Florida – and interviewing Target and Montgomery County police officials when I did a retail theft cover story a couple years ago. The thieves’ brazenness is horrifying, yet riveting. Unlike me, however, the LP folks aren’t exactly fascinated with why the bad guys (and women) do what they do. They just want them to stop stealing!

Farooq Kathwari of Ethan Allen has to have one of the most interesting life stories in retail and he’s a very nice person to boot. Johnny Morris of Bass Pro Shops (look for my profile on him coming this month!) has got to be the most down-to-earth CEO on the planet.

With the holiday season nearly upon us, I’m sure your email in-box will soon be overflowing with pitches from retailers and vendors. What advice do you have for companies who want to make a splash in the press this holiday season?

Keep an eye out for trends you may be a part of and pitch an “idea,” not just your company or product. For example, watch what your consumers are buying more of this year than last. Last year seemed to be the year of the practical and the comfort-giving gift. What will the theme be this year?

When you pitch your company, put it in a larger context. Newspapers, like most media, have shrinking staffs and reporters often don’t have time to connect the dots. Few of us have the time or space to report incremental developments at individual companies that don’t have a larger meaning or impact on consumers or business.

Do something that is truly different and newsworthy. Step back from your day-to-day job and think what your company might be doing that would be interesting to an outsider. Or ask new – and/or young! – employees if there’s anything going on that seems unique or newsworthy. I’m sure there will be stories about the retailer that stays open for the most days straight or puts up the first Christmas tree (which has no doubt already happened), but how about some truly new angles on the holidays this year?

And let’s try the reverse: what should companies who want to get their name in the paper never do?

Try to get reporters like me to promote their promotions. Sure, they might get lucky and a deal will get mentioned in a larger story. But PR pitches are far too often thinly-veiled (or not veiled at all) ad copy. I would have gone into advertising or marketing instead of journalism if I wanted to promote products!

It seems the Internet is playing a role in just about everything these days. Can you talk about how the web has changed the newspaper world, specifically USA Today?

Print reporters now have to think much more visually about their stories and consider things including interactive graphics and video. I even shoot my own video now. (Not very well, maybe, but it’s a start!) Our already-thin staffs feel even smaller now that many colleagues are blogging almost full-time. That can make it harder to cover the news, but helps bring new visitors to the site and the blogs give us all another forum to write in, which is exciting. And, of course, everything moves more quickly now with 24/7 news so it has sped up the news cycle. That doesn’t have as big of an impact on the retail beat, but it sure keeps the economic and political reporters on their toes.

How do you get your news, specifically retail news?

I read both SmartBriefs every day and love them. It saves a lot of time I might otherwise spend combing other print and online publications to keep up with trends. I scan the wires, read the major newspapers and get press releases on email from most major retailers or go to their websites when I’m working on a story.

You’ve made no secret about how much you love shopping. Where are some of your favorite places to shop, and what are your favorite things to buy?

I don’t want to name names, but I will confess to loving high-end department store outlets and off-price shopping. Some people say it’s too much work; I think the hunt is at least half the fun. I’m on a few of those discount designer email lists and get some great ideas that way but it’s just not the same for me as sorting through all the stuff in the store and feeling for myself whether that “buttery soft” cashmere really is. Clothes shopping is my favorite, but I’m going to have to return to furniture shopping soon. All these hours at home working on the book has reminded me it’s time to redo the living room.

If you were forced to take a three-month, paid sabbatical, what would you do?

I’m a passionate (not crazy!) cat lady. We foster homeless kittens and have a few of our own. So I’d take a tour of some spots out West I haven’t visited, do some writing and take my daughter to Best Friends Animal Sanctuary in Utah to volunteer. Lest I sound too do-gooderish, I’d also map out the closest spa and designer outlet mall and hit them as well.

Now that you’re no longer writing a book, how will you fill those extra hours?

Helping sell it, spending time with my somewhat-neglected family, and shopping — of course!

Connect with Jayne:

• Facebook
• Twitter
• LinkedIn
• Email: jodonnell@usatoday.com or Jayne@genbuy.net

This week, we’re “Talking With…” Terry Lundgren, who started his career as a trainee with Bullock’s department stores in 1975 and is now the Chairman, President and CEO of Macy’s, one of the most iconic retailers in the world. Here’s what Terry had to say about Macy’s plans for the holidays, what he loves about retail, and the importance of business leaders listening to young company talent.

You’ve been in the retail industry since 1975, when you started out as a trainee with Bullock’s, a division of Federated. We know the industry has changed dramatically, but what remains the same?

When I was a buyer at Bullock’s in Los Angeles, I knew every store manager, every department manager and most of the best sales associates. I even knew the guys in the distribution center because I needed to make sure that my merchandise received priority placement on the delivery trucks, especially when I was running an ad in the newspaper, which was often. I could stay very close to the customer with all of these points of contact. But my span of control was only 20 stores and they all were within a 90-minute drive or a one-hour flight.

With our My Macy’s initiative, we are recreating a version of what we had 30 years ago – reduced span of control for district merchants and district planners to be in stores constantly, listening to the voice of the customer. This close connection to our customer was, and always will be, the key to success for any retail organization.

NRF’s back-to-college survey found that department stores remain the shopping destination of choice for 18-24 year-olds. Has Macy’s made a conscious effort to reach out to young adults?

Absolutely. We work hard every day to bring a high level of fashion and excitement to our juniors and young men’s businesses. We’ve also stepped up our assortments for young professionals just entering the workforce through brands like BCBGeneration, as well as through more premium denim and other products that appeal to this younger generation. We just launched Rachel Rachel Roy exclusively at Macy’s, which is targeted to this young customer and it is selling extremely well. We are reaching out to this customer through social networking, including Facebook and Twitter, as well as local fashion and culinary events. Our national advertising, which features design celebrities such as Sean Combs and Jessica Simpson who have product in our stores, positions Macy’s as a preferred destination for younger shoppers.

Can you share any thoughts on the upcoming holiday season?

Especially in this tough economy, we inspire customers during the holidays and encourage them to “Believe” in the spirit of the season. Last year, we asked children to bring their letters to Santa to any Macy’s store and place them in our special letter boxes. More than 1 million of them did so, and we contributed $1 million to the Make-A-Wish Foundation, making us the largest single contributor to this fantastic organization that grants wishes to children with terminal illnesses. We will have a similar focus again this year.

The holidays are a very special time in our society, and it’s a time when Macy’s really shines – beginning with the Macy’s Thanksgiving Day Parade. Millions of people around the world also watch “Miracle on 34th Street” at Christmastime. And this year, we are going to launch a new animated movie based on a true story of a little girl named Virginia who seeks to discover if there really is a Santa Claus. Macy’s is a part of the fabric of the holiday season in America and we take our role very seriously – not only as a place to shop, but also as a place to experience a magical time of the year.

When you received the Gold Medal Award at NRF’s Annual Convention several years ago, you talked about the importance of cultivating young professionals within the Macy’s organization and said you meet with a select group of young talent on a regular basis. What have you learned from those meetings and have you made any changes because of them?

I learn a lot each time I meet with a group of associates who are early in their careers with Macy’s. I work hard to devote at least 30 minutes a week to them, and it is among the most rewarding things I do. These individuals are brimming with good ideas and insights we can apply to our business, and we do take action on them. For example, the development and rollout of the BCBGeneration product for young career women, as well as the Rachel Rachel Roy launch, were directly related to a meeting of my “Breakfast Club.” The group told me we had a gap in our assortment for this younger working customer, which included our own trainees and assistant buyers, and we moved very quickly to fill it.

Even in the midst of a challenging economy, Macy’s continues to grow. Was the decision to continue to open stores in this environment a difficult one?

I’m going to be perfectly honest with you. We planned these new stores a long time ago so they were already under construction when the great recession began to hurt the economy. Our focus today is to drive higher sales from existing locations. That’s the objective of our My Macy’s localization strategy. But we also are pursuing a few select opportunities to open new stores where Macy’s and Bloomingdale’s are under-represented. There are very few new shopping centers being built or opened today in the U.S. In the future, we have a number of potential avenues for growth, including overseas, and we are opening the first international Bloomingdale’s in Dubai in spring 2010. But right now, our energy is being focused on increasing comp store sales. We believe there is a lot of opportunity to take market share and to grow Macy’s and Bloomingdale’s in the locations where they already do business.

To whom do you look for inspiration?

Internally, I look to our own people. There is so much energy and enthusiasm within our company today, in spite of the economic environment. I truly believe that we have the best and the most talented team in the entire retail industry at both Macy’s and Bloomingdale’s. We have always had a good team but today we have a spectacular team and they have a great deal of respect for one another. Our people have great ideas and a tremendous amount of passion for the business. I get excited and inspired every time I visit a store or talk to a group of our people.

Externally, I take whatever time I can to talk and listen to the senior leaders of other great American companies, especially those in consumer-driven industries. I am involved with a couple of outside organizations and have developed friendships with some of the most respected CEOs in the country. They always have a lot of great insights and I consider myself a student of business, so I just eat it up. I would like to think that they get a little something from my own insights and experiences at Macy’s and Bloomingdale’s.

Tell me something that’s especially vivid from your first days at the company.

I was recruited to Bullock’s in Los Angeles as I was graduating college at the University of Arizona. I had several other job offers, but what struck me about Bullock’s was the unbelievably talented people I met in the interview process and potentially would be working with and for. That’s what attracted me to retailing and what has kept me in this industry.

Retailing thrives on smart, aggressive, fast-moving people who know how to spot and capitalize on opportunity. You are responsible for your own P&L statement early in your career as a buyer or a store manager. I am very proud of the fact that Macy’s, Inc. is known for having the very best training programs, which in turn has attracted the best people in retailing.

Give us a snapshot of something attendees might hear during your keynote next month at the Shop.org Annual Summit. [Shop.org retail members, remember to claim your company's free pass to the Summit by August 14.]

I’ll be talking about the power of multichannel retailing – the convergence of stores and online. It’s something we’re doing very well at Macy’s. Our multichannel strategy mirrors the strengths of Macy’s – fashion, brands and excitement. I plan to talk about the opportunity to capture more of your customer’s open-to-spend.

You’ve spent more than 30 years in retail. What do you like most about this industry?

The constant change. You can’t stand still in retailing. You must always be innovating and pushing the envelope. The competitive landscape is always changing. The customer is always changing and evolving, and so must we. I like being challenged in this way. I just love this business. It’s a privilege to come to work every day and do something I absolutely love to do, even in this very difficult economic environment. We get our performance review every day at the cash register. I love the challenge because I know our strategy and our organization structure is right and we have the talent to win.

How do you unwind?

I enjoy spending time with my family and my friends. I also have always played sports. I love the friendly competition. These days, I prefer golfing – it’s easier on my knees than basketball. I enjoy exercising in the early morning and I’m also an enthusiastic spectator when it comes to football, baseball, basketball, tennis and just about every other sport.

If you could take five people in the world to dinner – past or present – who would you take and why?

Funny you should ask. At Macy’s, we have a drive this fall that encourages people to “Come Together” over dinner to raise funds for local food pantries around the country. Our plan is to contribute at least 10 million meals for those in need. In this spirit, I plan to have dinner with a group of those well-known celebrities whose merchandise is sold at Macy’s – Jessica Simpson, Queen Latifah, Mariah Carey, Usher, Martha Stewart, Emeril Lagasse, Tommy Hilfiger and Donald Trump – so we can set the example in raising funds. They all will be appearing in the Macy’s television commercial this fall to promote “Come Together” and to help eradicate hunger in America.

Finish this sentence: “I can’t start my morning without…”

Some kind of exercise followed by a Grande Black Pike Place (Howard Schultz will know what that means) and reviewing the previous day’s sales report.

NRF's Godmund Schick, currently serving as an Army Sergeant in Iraq, is expected to return to the U.S. next spring

After beginning as a project coordinator with Shop.org three years ago, Godmund Schick joined NRF’s Internet Strategies team in 2008, handling project management, requirements gathering, designing web page comps, building new sites, and about a million other things. (His after-hours talents, namely baking, are also well-loved and appreciated by colleagues.) Shortly after being promoted to director of web strategies last year, Godmund bid adieu to the comforts of home to serve a 15-month deployment as an Army Sergeant in Iraq. A superb team player and a congenial, witty colleague, we’re all anxiously waiting for Godmund to return safely to the U.S. – and to the office!

People throughout NRF and Shop.org submitted their most-pressing questions about Army life, and this week we’re “Talking With…” Godmund about how he gets his news, where he (still) shops online, his most indispensable possessions overseas, and how this experience has changed him.

What’s an average day like? –Joan Broughton, Internet Strategies

There are many versions of the “average day” here at our little Joint Security Station (JSS). We have days where we go out on day/night missions and patrols and other days where we just patrol the JSS. There isn’t much of a pattern to it, just whatever higher-up dictates. Some days are set aside just to catch up on important vehicle/equipment maintenance.

How has your experience differed from what you expected prior to being deployed? — Victoria Laudati, Marketing

Before I came to Iraq I thought the environment would be much more desert-like: hot and dry and sandy.

The weather is definitely hot and dry, but the countryside I work in (near Baghdad) is very green and lush. We get sand storms every couple of weeks that last for 2-3 days, but otherwise the weather is pretty nice. Some parts of the area actually resemble a tropical island, very beautiful and peaceful.

Do you like anything about Iraq? If so, what? –Daryl Everett, Conferences

Honestly, I have begun to like the heat. Sometimes I turn off my AC unit because I have become so accustomed to the higher temperature that I can’t stand how cold the air conditioning gets. I also like the civilian population. It’s great to be saturated with another culture and Iraq has a very old and interesting one. The local food is also pretty good and the farmland and canalization system around where I patrol is striking.

What’s the strangest MRE you have eaten? –Stacy Cornell, Shop.org

The strangest Meal Ready-to-Eat (MRE) that I’ve ever eaten has probably been the Cheese Omelet…Its pretty terrible and resembles a chunky yellow/salmon colored paste. I try to avoid MREs whenever possible. They have on average at least 8 grams of trans fat per meal so I encourage my soldiers to only eat them as an absolute last resort. Thankfully we have cooks stationed with us on the JSS and they do a pretty good job with what they have to work with.

How do you use social media or social networking to communicate with people back home? –Eric Olson, Industry Relations

When we have access to the internet I use Facebook religiously. If I still had access to my mobile device I would use Twitter… but unfortunately mobile phones are a security risk on patrol and they are, in general, much too expensive in country.

You sent us a picture of a heavily fortified Starbucks, and I’ve seen some quick-serve restaurants operating for the troops, but are there any American-style bricks-and-mortar places for the troops to shop? What are your observations of retailers in Iraq? — Rick Gallagher, STORES

The heavily fortified Starbucks was actually in Kuwait. Unfortunately I haven’t seen any Starbucks in Iraq yet.

The shopping options for troops consist of AAFES PX/BX, and quick-serve restaurants like Burger King, Pizza Hut, Taco Bell, Popeye’s Chicken. In addition, local merchants are allowed to set up shops in certain parts of the bases. I have seen hardware shops, DVD stores, grocers, and clothing stores run by local merchants. All of the shops are in temporary buildings (just about all buildings on bases are temporary).

One example of retail in Iraq. Godmund says, "I love this little store."

I am stationed in, and patrol, an agricultural section of Iraq. The local retailers in my area cater to that type of community. The shops themselves are fairly primitive by western standards, but the open-air markets are vibrant and fascinating.

Does online shopping provide any competition to AAFES (the BX)? Do you think this has changed AAFES customer service, selection, or pricing? –Iver Nielsen, IT

AAFES PX/BXs here tend to cater to the basic items soldiers are willing to buy in country. The pricing is fair and the selection is limited. There are many limitations to what they can really sell in country because of the practical reality of what soldiers can actually use. Soldiers tend to move from base to base as the mission changes, so purchasing anything but the essentials becomes a burden when it’s time to move out.

Online shopping fills in the gap for more specialized items that, while mostly available in the PX, aren’t precisely what the soldier was looking for. I have seen, and have myself ordered, specialized gear for use on missions, household items (bedding, pillows, etc…), books, video games, food and tools from online sources.

In general, I think AAFES has extraordinary customer service in country. It’s a really unique situation here because they are at almost as much risk as the soldiers, so they really get treated like they are part of the team. I can’t get into specifics but let’s just say that working at a PX in Iraq can be pretty dangerous.

What are the top 3 personal items that you have not been able to live without while you’re in Iraq? –Karen Walsh, Internet Strategies

1) S.O.L.A.G Hellstorm Kevlar gloves from Blackhawk. These gloves are incredible. I can do anything (including type) with these gloves on. And concertina / razor / barbed wire doesn’t cut through them, which is helpful, considering how much of it is around the country.

2) iPod Touch. The combination of its size and weight (fits right into a shoulder pocket and weighs almost nothing), and the app store make this little tool VERY useful. I shut off the WiFi when on missions (for safety reasons) and pretty much take it everywhere I go. I think this little tool has near-unlimited potential in this type of environment, although a camera/video camera would make it perfect.

3) My MacBook…. of course.

What are you looking forward to doing the most when you’re back in the US on leave in August? What will be your first purchase when you come back to visit? –Sarah Rand, Internet Strategies

First purchase will be a pair of Ecco loafers (because it will be nice to not wear boots for a couple weeks). I’m also very much looking forward to running on the National Mall and the C&O Canal towpath. And of course I am looking forward to seeing the NRF family!

What websites do you visit most often? Do online retailers even ship to Iraq? –Rachel Ryan, Finance

I visit NYTimes, Facebook, CNN, DrudgeReport, Politico, WashingtonPost, Amazon, USCavalry, gmail, Shop.org and Techcrunch as often as possible.

Almost all online retailers ship to Army Post Offices (and therefore Iraq). In fact, one of the first things I did for my soldiers was show them how to order from Amazon using an Army address. The only problems we have are when an item’s warranty would be voided by shipment to our area of the world. In that case the merchant won’t ship it directly and we have to have the item reshipped from friends or family in the states. I tried to have a cast iron skillet shipped once and Amazon wouldn’t ship it because of warranty issues… which I thought was hilarious. But typically the items that can’t be shipped directly are electronics.

When all is said and done, how do you think the experience of being deployed will have changed you? — Tracy Mullin, President and CEO

My hope is that this experience will make me more disciplined, focused, and appreciative of the simple luxuries of American life. Iraq is a huge reality check.

What are you most proud of that you have seen or done in Iraq? –Bruce Lampron, HR

Aside from the combat missions/security, we provide many of the local schools and clinics with water and supplies/expertise and administer micro-loans to merchants who we think will be able to create jobs and stability in the local community. These things combined have made a large impact on the lives of the people in this community. Much of the reconstruction funds in our area have gone towards revitalizing the canalization system for the local agricultural community. Over the last few months much of the work has been completed (using local contractors and management) and the effort has made an enormous difference in how many fields the farmers can flood, how much they can grow, etc.

Connect with Godmund:

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You’ve had an interesting career, first with Tower Records, then Borders, and now your current employer, ForeSee Results. What are the similarities between those roles? How about the differences?

There’s actually been some nice continuity between the three positions. I was at Tower for 20 years, working my way from store associate to buyer to store manager to some IT roles and then finally, with all my retail and technology experience, to building up TowerRecords.com when e-commerce came around.

When I finally left Tower to join Borders, I saw a lot of similarities in the businesses, for sure. Tower was primarily music and video, but also sold books. Borders was basically the opposite as far as focus, but the general business was pretty similar. Tower was private (with some public debt toward the end of my time there) and Borders was public, so I did notice more short-term pressures related to public reporting at Borders than I saw at Tower. Dress code was definitely different. At Tower, the dress code was basically “Don’t wear swimsuits.” Borders was a little more conservative than that.

ForeSee Results is a departure of sorts for me in that we’re a vendor. However, my role as Vice President of Retail Strategy calls for me to very much remain a retailer, which is great because that’s what I’ve been my entire adult (and even a little pre-adult) life. I don’t want to lose that exciting retail feeling.

Since I’ve been a ForeSee customer since 2002 at Tower and again during my time at Borders, I feel very comfortable with the ForeSee way, and I really love what the company does and stands for. In fact, during my search, I told myself that I had three objectives for my new position: (1) I had to believe in what the company does; (2) I wanted to learn something new and have plenty of great challenges; and (3) My “Miss America” clause: I wanted to be in a role where I could make the world a better place. I really believe that I’ve found all of those with ForeSee Results, and I’m really excited to be part of the team.

What were the first three things you did when starting your new job?

Well, besides filling out lots of HR paperwork, one thing I always try to do when starting a new job, whether it’s a new position with the same company or a new position at a new company, is write down my first impressions. It’s the only time I’ll have them, so I want to make a record of them because I find that over time I’ll start to hear and ingest all the reasons things are the way they are and I’ll forget how I felt about things that might not seem right to a new employee or a new customer.

I have this theory I call the Tree Stump Theory. It goes something like this…If we were to stick a big tree stump in the middle of one of our conference rooms, everyone who walked in would notice it and ask about it. Someone would give us a compelling reason why it was there, and then we would move on with our meeting. The next time we met in that room, we would notice the stump but not ask about it. Eventually, someone might stick a tablecloth on it, and we would start to adjust our seating to work around the stump. Before long, most people might not even remember why it was there to begin with. It would be hard to miss for anyone new to the room, though. So, it’s nice to reference my first impressions list from time to time to help me see things freshly again, even when they’ve become ingrained.

And by the way, there are both positive and negative tree stumps. I’ve found many times that there are great things at companies and on sites that have been undervalued over time, and it’s just as easy to lose sight of those as it is the negative things.

I also definitely like to spend time meeting everyone on the team and really listening to their perspectives and sharing some of my stories from the world of retail. Last and certainly not least, I’ve been talking to customers to get their perspectives and really try to understand their needs and expectations.

What are you most proud of from your tenure at Borders?

I’m really proud that we brought Borders.com back home to Borders. I love the site and some of its innovations, including the Magic Shelf and some of the excellent video content. I am unbelievably proud of the team of people who worked day and night to bring the site back. It was a tough, tough project that had to be done in a very short period of time. People sacrificed major portions of their lives and time with family for the cause, and I could never thank them all enough for what they did.

I’m also really proud of Borders Rewards. Before building Borders.com, I first led the team that created and launched Borders Rewards. It has since become one of the largest loyalty programs in specialty retail, and it far exceeded any of our early expectations. It was very cool to work on that effort.

As someone who recently transitioned into a new position with a new company, what advice do you have for online retail employees who may be in between jobs?

I think the first thing I would say is stay positive. I’ve been impressed with how many companies seem to be hiring e-commerce roles, even in this economy. While it may not seem like it at times, this can be a great opportunity.

I suggest communicating with everyone you know to let them know your status and what you’re looking to do. My first week after leaving Borders, I spent a LOT of time sending emails and making phone calls. I went through my contact lists, LinkedIn, Facebook, etc. and tried to find everyone I could think of that might be connected to someone who knew something about a job. I talked to former co-workers, vendors, friends, neighbors, friends of friends, people at the gym, etc.

All of that initial outreach definitely generated opportunities, and I pursued them all with vigor. Even though there were some positions that didn’t seem right, I still chased them down. I figured if nothing else, the effort would help me refine my story and my interviewing skills — and it did. I got very good at telling my story and hitting all the right points.

I also “interviewed” myself. I wrote down all of the interview questions I could think of, and then I took some time to write down my answers to each. As I heard new questions during my process, I added them to the list. I regularly studied this sheet before each interview as part of my preparation.

Of course, I also did lots of research on each company and each interviewer and created a set of questions to ask during the interview. In addition to questions, I found it was helpful to come up with some ideas for how to improve the business. I found that even if interviewers weren’t ready to take on each of my ideas, they really appreciated the thought that went into them.

You’ve been in this business, in varying roles, for a long time. For someone who is just getting started in retail or e-commerce, what advice would you give them?

I think it’s really important to listen and learn as much as possible. Read blogs (the Shop.org blog, grokdotcom.com and Six Pixels of Separation are really good ones), subscribe to newsletters like SmartBrief and Internet Retailer, and more than anything talk to customers. If you’re working for a multichannel retailer, find time to work in some physical stores. Multichannel or not, find time to take some customer service calls.

I’m also a big fan of business books, so I would recommend reading lots of them. You may not believe everything you read, but it will help expand your thinking, and I think that’s always a good thing. One I read this year that really got me thinking was “Fooled By Randomness” by Nassim Nicholas Taleb and one of my all-time favorites is “Moneyball” by Michael Lewis.

Optimists, myself included, are fond of saying that retailers who make it through this recession will be stronger for it. Do you agree with that? Can you think of anything specifically in e-commerce that will have benefited in the long-term from the current economy?

I definitely believe businesses that make it through this storm will be stronger for it. The recession has caused us all to find those elements of our businesses that are most critical to our success and relentlessly focus on those elements, not on the peripherals. Costs are more in line with sales today, and as revenues start to return the bottom line should benefit. The key will be to maintain that focus even when better revenues tempt us to take our eyes off the ball.

I think e-commerce is benefiting from the realization at many retailers that the website is about much more than the buy button. Online marketing vehicles are more efficient, for the most part, than their traditional counterparts, and retailers are starting to see that those vehicles can drive traffic to brands overall, online and offline, and the web plays a central role in both acquisition and retention of valuable customers.

You recently blogged about a quote you read, that “defending the status quo is what kills companies.” The e-commerce crowd is generally a pretty forward-thinking bunch, but how can smart retailers ensure that progress is not hindered because they’ve “never done it that way”?

Ha! Thanks for reading. I think everyone is susceptible to defending the status quo, especially when things are going well. E-commerce is generally going well, even in these times, and its future is bright. But good times are exactly when it’s important to start thinking about changing for the future. The world is constantly changing, and in e-commerce it’s changing faster than anywhere else, so we have to be even more ready to change directions. The barrier to entry at a global level in e-commerce is obviously significantly lower than in the physical world, so innovative new business models have a much better chance at success than in the past. In the blog post, I talked about how quickly Zappos went from an idea to a billion-dollar company on the strength of a new model. Amazon and iTunes are other obvious examples. As e-commerce continues to mature, we will become more susceptible to resting on our laurels, at least to some degree. We cannot rest.

You mentioned the Shop.org blog as a resource for people looking to learn more about e-commerce. Tell me about your history with Shop.org.

I’ve been involved with Shop.org since my days with TowerRecords.com. I find the organization overall to be incredibly valuable. The content at the shows is always top-notch, and I’ve learned so much by attending. Even more than learning, I’m always inspired by what I see and hear. Sometimes, I’ll see a presentation that wouldn’t seem relevant to my business, but I’ll hear something that will spark an idea. I also really love the round tables. I’ve hosted lots of them over the years, and I’ve never been disappointed in the conversations. I like that they provide a comfortable but somewhat structured point for conversation of particular topics. Of course, the absolute best conversations take place at the conference bars. I’ve had some doozies in there!

I also really appreciate Shop.org’s advocacy for the industry. I’ve been lucky enough to be involved with the Policy Advisory Group, and I’ve been impressed with how the Shop.org team is working on behalf of its members to deal with some thorny issues in Congress.

What’s the best part about working in retail?

To me, bar none, the best part about working in retail is finding ways to help customers. I always loved making customers happy when I was working in stores, and I’ve never lost that feeling. I think retail is really a service industry, and when we do things that truly delight customers we actually make the world a better place.

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• Email: Kevin.Ertell@ForeSeeResults.com