Posts Tagged ‘david king’

Mobile Rules of the Road for E-Retailers

Thursday, July 16th, 2009

dk-photo1Mobile devices like the iPhone and G1 are letting consumers take advantage of the growing number of high-speed networks, an opportunity that e-commerce retailers are recognizing as users are increasingly using websites for shopping from mobile devices. Some people are even using their mobile devices as their primary online browser.

Any retailer looking to the growing mobile audience for new revenue should deliver shopping sites that are mobile friendly. This means paring back content – or re-organizing it – so that users can access relevant items more easily.

While wireless devices have come a long way, their screen size limits what can be displayed and still be read by the average user. Features such as panning and zooming can only compensate so much for the smaller real estate available on handhelds.

Most websites are still using cascading stylesheets (CSS) optimized for personal computers. Designing and embedding CSS specifically for mobile users will help ensure that the user experience on handheld devices is high quality. The CSS Mobile Profile 2.0 developed by the W3C (the standard-setting World Wide Web Consortium) is now available, giving retailers a widely supported standard to follow.

Other common shopping features, such as large tables of product images and Flash animation, also need to be rethought. Just a decade ago, many websites were built successfully without these features. As screen resolutions and bandwidth grew, these were added to create richer online experiences. Handheld devices may not support all of these technologies, so the emphasis should be placed on simplicity, clarity and speed. And make sure that commonly accessed features, such as viewing the shopping cart are readily reachable.

While the technical aspects of mobile are important to consider, retailers must also focus on marketing fundamentals, such as understanding the needs of this changing audience. Research and analysis on what users want and how they want to interact with your site are critical. One quick tip: use the mobile device itself to gather research information, rather than relying solely on traditional research channels.

Retailers that can use messaging, web content, e-mail, and social networking in an integrated fashion, centered on the handheld device, let users engage with their brands. A basic practice: rather than just asking for e-mail addresses on your sites, permit users to give you addresses for text messages as well, and let them know about special mobile content.

One last piece of advice: do not let mobile marketing become a new outlet for spam. Mobile devices give unprecedented access to retail customers; respecting your customers’ time will lead to longer, two-way relationships.

David King is CEO of Fulcrum, a leader in advanced analytics, technology and multichannel program solutions for marketing.

Four Ways Retailers Can Boost Cross-Sell Results

Friday, January 9th, 2009

dk-photo.jpg Many retailers have learned how to leverage their data to help identify opportunities to increase their share-of-wallet by cross-selling additional products and services to established customers. Yet many retailers remain disappointed with the results of their cross-selling efforts to deepen and broaden their relationships with established customers. Response rates have remained flat or actually declined. Average order sizes remain unchanged or are actually decreasing. Tinkering with the current approach will no longer provide incremental improvements — 2009 is the year to build a new foundation for your cross-selling strategy, based on four cornerstone concepts:

1. In-Market Timing
Many retailers who have developed an ability to anticipate when customers are interested in buying have done so by building a standalone model, and then face the logistical challenges of working with multiple models to account for both choice and timing in any customer’s purchase decision. Your analytics department or vendor needs to have the capability to take both of these dimensions into consideration in one integrated modeling framework.

How could your cross-selling results improve if you were able to not only anticipate what each customer or segment is interested in, but when their interest will be highest? And to eliminate individual customers or segments from further solicitations of the same or similar offer when they are no longer interested? And do both while also taking into account your competitions’ plans?

2. Repeat-Purchaser Focus
Every retailer has a percentage of single-transaction customers, but few retailers design and implement specific strategies to increase their number of repeat customers. Aside from the data management issue of identifying a first-time customer (not an insignificant issue in itself for many retailers), the other challenge is deciding what exactly to offer these customers to encourage a second purchase. Even with the limited data that you will have on file for these customers, an analysis can identify at either the individual or segment level the specific second-purchase decisions with the highest potential acceptance.

3. Cross-Channel Offer Affinity

Every retailer knows the importance of delivering consistent messaging across customer channels, and many are in the process of making significant strides in this area. Yet, despite widespread consensus that cross-channel integration is critical, many retailers struggle to find and deploy practical strategies to infuse more cross-channel intelligence into their marketing programs. In many cases, the concept of “offer affinity” affords retailers an immediate opportunity to provide meaningful communications to customers across channels.

“Offer affinity” is based on a marketing analysis that finds a pattern of one type of purchase naturally following another. To use a home improvement example, a purchase of deck lumber would have an intuitive follow-up sale of deck stain, but an analysis of transaction data could point to other “missed purchase categories” such as joist brackets, and flashing.

Finding these “potential pairings” is something that in-store merchandising display departments have studied and reacted to for years, but now that kind of intelligence can inform both offline and online customer communications.

4. Marketing Agility
A decade after the launch of marketing automation systems to execute and measure direct marketing strategies, many retailers remain locked into campaign-centric views of their marketing programs. The demands of today’s marketplace require that retailers be able to respond to smaller and smaller segments of customers with increasingly targeted and timely offers.

Your database marketing platform needs to provide a cross-channel marketing management solution that provides a high degree of customization at either the individual customer or segment level. Such a platform will allow you to transform the way you think about marketing, breaking out of the traditional campaign-centric view to truly deliver customer-centric marketing.

David King is CEO of Fulcrum.