Leader’s Blog

Target now accepts gift card payments via mobile device at its 1,740 U.S. stores.  Card holders can enter the login and pin for the gift card online or on the mobile version of the site, and a 2D barcode appears for cashier to scan.  Target is the first national chain to incorporate mobile enabled scanning across all locations but there are several other retailers - including Starbucks and 7-Eleven – piloting similar programs in their stores.

As the ability to scan barcodes from mobile devices becomes widely available, I envision uses expanding greatly to include other functions.  This would be a powerful way for retailers or even consumer goods companies to offer coupons to customers.  Giving consumers another (and I’d argue more convenient) way to save at the register could do wonders for brand loyalty.  I would love to see this take off as a way to handle store membership cards too.  It seems as if every retail store I go into now offers me a membership card for discounts or rewards, and I have to be honest I have started to turn most of them down because I can’t fathom adding another card to my wallet or key chain.  If they could offer me a version of their membership that could be scanned from my phone when I come in, I’d probably accept every membership I was offered.

The key to this for me is that I go everywhere with my phone in hand.  A retailer or consumer goods company that allows me to more easily spend or save with a few clicks of my phone would definitely be higher on my list than one that didn’t.

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Online display advertising began as one of those memorable marketing channels that often grabbed my attention.  As the market got more crowded though, I seemed to find myself ignoring many online ads – regardless of how visually interesting I perceived them to be – typically, because they just didn’t apply to me.

Google is hoping to change that experience as a result of their acquisition of startup Teracent, developer of a series of “machine-learning algorithms that can create and customize an ad in real-time, based on user preferences and other characteristics”.

What this really means is that Google would have the ability to serve up more relevant display ads based on location, time of day, language, placement of the ad, or even which ads have performed better in a given time period.   Teracent offers an additional expanded ability that could make the ads more dynamic on the page – serving up different creative or size of ads based on the users visiting the site.

This acquisition could mean a lot for a medium that hasn’t seen a lot of innovation lately, so I – for one – am excited to see online display ads get more targeted.

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The thing that makes online marketing such a powerful force is its ability to be agile.  eBags used an agile approach to take what could have been a challenging holiday season into “Cyber Monday” sales that were up by 32%.

So what worked?

The marketing team kicked off their paid search campaign with the words they thought would generate the most sales, but they didn’t stop there.  They defined a firm target on how a word should be generating sales and reduced spending on those words that didn’t make the mark.  It has been my experience that people treat paid search as a “set it and forget it” marketing technique so I am always glad to hear about companies that follow my preferred “deploy, analyze and adjust” model for paid search.

I should also mention they deployed a targeted email campaign that was based on users’ previous purchase that led to a 25% in their email marketing.  This is a one-quarter increase in opportunities to sell to a current customer based on the understanding of what they like.  This is a great combination of the analytics gathered at purchase with a straightforward execution method.

With a nimble marketing strategy in place at one of the peak times of the buying season you can understand how eBags earned its spot as 93 in the Internet Retailer Top 500 Guide.

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As we are all now well into our marketing efforts for 2010, it is hard to miss the reports stating that “this is the year for mobile marketing”.  So how to you determine how much is fact and how much is hype?

The article doesn’t talk about predicted mobile ad spending as the main reason you should stand up and take notice, but rather looks at how people are using their smart phones for things other than calls.  The study indicates that users have essentially doubled their non-voice communications.  It also indicates that 18.5% of mobile users have searched for local products or services from smartphones. (For more thoughts on how mobile can be effective locally, check out Getting the Most From Mobile Ad Spend.)

As marketers start to shape their mobile approach, it will be critical to understand how users interact in the mobile environment.  Once you have a clearer picture of the landscape, you can make better decisions about how mobile can best impact your business.

Only time will tell if companies are able to successfully harness the mobile landscape – whether or not it is 2010 – it appears that is more for mobile users to decide.

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With many people trying to understand how YouTube can be used to market products and services, it is great to see Silk Soy Milk leverage the channel in an innovative and interesting way.

The campaign starts with an interactive trivia game that leverages YouTube’s new “deep link annotation” functionality.  This keeps users in the Silk branded environment as they progress through the game.  Silk also leveraged YouTube’s promoted video.  This allows marketers to code videos with keywords to make them easier to find in YouTube’s search.  (It is also interesting to note that promoted video is being offered on a cost-per-click basis – much like Google ad words.)  Silk is using print ads with quick response (QR) codes to encourage mobile participation. 

Understanding how consumers interact with a channel is key to successfully leveraging it.  Consumers come to YouTube to be entertained and Silk hits the mark with this fun and imaginative game.

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I am always amused at the resistance of some of my older family members in getting online and using the computer.  Online banking, purchasing online, and things I can’t live without they wouldn’t consider touching.  So when I read that The Office for National Statistics recently reported that “6.4 million people over 65 have never used the internet”, needless to say I wasn’t surprised.

That may be set to change with the help of SimplicITy.  SimplicITy is a desktop computer designed for users over 60 who are new to computers.  The simple interface has just 6 buttons on startup that lead users to a variety of basic functions like internet, chat and email.  It also comes with pre-loaded with 17 video tutorials that guide you through each of the machines functions.

Without a doubt this opens up a whole new set of opportunities for companies to market their products and services to the huge aging population.  Adding 6.4 million people as potential customers is certainly significant but I also think this will have a huge social benefit for its users.  Family members spread around the globe can more easily connect via chat and email.  I’ll be interested to see if these types of devices will become more popular or if websites will follow suit and create stripped down versions for older users.  It will also be interesting to find out if use of these devices will eventually lead to users adopting “real” computers. . . SimplicITy has thought of that angle by allowing users to upgrade to a standard Linux desktop free of charge if they outgrow the SimplicITy interface.

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When many companies take on the idea of innovation it seems like an insurmountable mountain to climb.  Innovation doesn’t always have to come in the form of the “big idea” to be impactful.  This blog points out several small steps we can all use to achieve innovation every day.  Innovation can be achieved through small, digestible changes that can lead to breakthroughs and large operational efficiencies. 

When eagerness for massive overhaul is at all time low, approaches that allow you to fine tune tactics along the way rather than starting from scratch can be especially valuable to keep organizations both innovative and competitive.

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Apple has decided to allow in-app purchases from free iPhone apps.  Previously purchases were only allowed from paid apps.  I think this is a good decision on Apple’s part.

It benefits the consumer from a user interface perspective because it eliminates several steps in the process in getting from the decision to buy to actually making a purchase.  It also eliminates the need for users to go back and delete the old app after installing the paid version and having to login to the new app as a new user.  All of that information will be maintained now.

There is benefit to Apple in this scenario as well.  Many users may not even be aware there are paid versions of the apps they enjoy with more features.  By giving users a quick and efficient way to upgrade a free app to the paid version not only informs the customer of its existence but it also helps reduce the chances a customer will abandon an unnecessarily complicated transaction.

I also like the opportunity for opening up payment gateways to third-party transactions in free apps. A good example of this type of app is the Chipotle ordering application that is a free app but allows you to order and pay for your order direct from your iPhone.  I see lifestyle applications like this one really taking off as a result of this expanded opportunity.

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I enjoy an article that gives you a “sneak peak” on what it takes to power a site like Gilt.com.  Most people never think about things like that (naturally I do).  We just expect the site to work when we want it to work.

To those of you unfamiliar with Gilt.com, it is a membership only site that offers short term sales (usually 24 hours) on a limited amount of discounted luxury merchandise.  Recently it has expanded to include a site geared to men’s apparel, a travel discount site, and a site offering emerging designer brands of apparel.  Members are notified about the sales via email each day where they can log on to the site, view the merchandise, and make a purchase.

That is where the challenge lies.  Each day Gilt.com accommodates large spikes of traffic activity as their customers receive their emails and logon for deals.  The article explains how they have leveraged JRuby to power the seamless experience that the customers have come to expect and their business depends on.  The success of their operating model depends on their customers being able to access the merchandise quickly and complete a purchase.  If navigating the site and the checkout process was slow customers would quickly miss out on the fast selling merchandise and not return in the future.  The fact that Gilt.com has been able to create a visually appealing and stable user interface is beneficial for getting the customers what they want immediately and keeping them coming back for more.

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CNN describes Finland as one of the most wired countries in the world with over 95% of the population having an internet connection.  So why would the Finnish government take steps to make broadband Internet access a legal right? 

Having broadband access in all areas of Finland – regardless of whether you reside in a city or rural area – can create efficiencies for public service agencies. Finnish government could use the Internet to push out public service announcements to all areas of the country during an emergency or natural disaster. Additionally, broadband can improve access to information that was previously limited to people in rural areas.

Expanding broadband also creates opportunities for businesses to expand their online capabilities and services to broaden Finland’s economic opportunities. 

As broadband becomes the norm we will all be better connected.  Finland could just be the beginning of a trend because the United Nations shares this view and is taking strides to make Internet access a citizen’s right. 

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