The Perspective 
Tuesday, 23 September 2014

by Joe Holley
Frank Mayer & Associates, Inc.



Millennials are as large a demographic group as their Baby Boomer parents and their presence is already felt at retail. Their power to purchase and influence is on the rise.

Despite having lived through the Great Recession and carrying an average of $25,000 in student loan debt, Millennials’ $600 billion of spending is projected to increase to $1.4 trillion by 2020. The U.S. Chamber of Commerce is naturally interested in this economically powerful group and concludes they will “completely upend many of the established businesses, methods, and processes that have defined the U.S. Public and private sectors for decades.”

This generation is moving at a pace that legacy retailers are hard-pressed to keep up with. The physical store is still the focus of the vast majority of sales, but there is a plodding but undeniable “any channel” transformation being influenced by Millennials’ desire for shopping without boundaries.

Besides renovating disparate technology platforms, what are retailers doing to court this powerful, ascending generation? Their responses include changes to format, visual merchandising, product displays, digital signage, interactive shopping experiences, location-based mobile communication and targeted product offerings.

Take for example, Macy’s, which is incorporating many of these strategies. They’ve developed apps and installed Wi-Fi. They’re using Shopkick and testing iBeacon for location-based in-store offers. They’re integrating interactive technology into numerous departments to satisfy expectations for immediacy, access and engagement with fresh content. Localized product assortments catering to specific Millennial sub-segments are a part of their merchandising strategy. So committed to this target is Macy’s CEO Terry Lundgren that he has breakfast monthly with a group of Millennial employees to get their feedback.

There are numerous other examples of retail transformation in our latest whitepaper Succeeding with Millennials as well as a list of implications for marketing to Millennials that emerge from vast amounts of research being conducted on them:

  • Embrace the multi-channel mindset by catering to expectations for relevancy and accessibility that are rooted in online experience.
  • Create store environments that merge physical and digital elements.
  • Create environments that are vibrant and dynamic.
  • Balance deal-oriented incentives with exceptional experiences in order to win hearts and pocketbooks.
  • Develop marketing and merchandising plans that incorporate multi-directional engagement.
  • Incorporate opportunities for validating purchase decisions through peers and ratings/reviews.

I’m sure you have others to add.

Posted by: Admin AT 01:00 pm   |  Permalink   |  0 Comments  |  
Friday, 30 May 2014

Matt Schmitt
President & Founder
Reflect Systems


 

Today’s brands are more focused than ever on adapting to consumer lifestyles and delivering a branded experience that resonates with their audience. The importance of well-executed brand media increasingly puts all brands, including retailers, in the content game.

Reflect In-Store Digital SignageMarketing’s role in retail is shifting from advertising to brand storytelling. In the past, the driving force of many marketing strategies was to use print and broadcast to get customers out of the home and into the store. Customer segments were focused on demographics using age, gender and location. In this traditional “push” model, the idea was to reach a captive audience and deliver them a message, with the goal of influencing a transaction.

Today, marketing is about creating a brand media network that spans a variety of engagement channels. We’re not simply trying to get customers to a location. We want them to create a lasting connection with the brand and adopt it as part of their lifestyle. Moving beyond demographics, psychographics focuses on behaviors, interests and lifestyle. And rather than a push model, brands are pursuing an engagement model that creates a two-way dialogue between them and the customer.

Everywhere, All The Time

Reflect In-Store Digital Media

Brands are becoming more omni-focused, with content executed across a variety of channels, from the digital world to physical locations. The brand media should be consistent and adapted to suit the channel type.  

1. Broadcast is still a major platform for all brand media. Broadcast is still primarily about traditional television, but the landscape is shifting rapidly. YouTube is becoming a big player for brand media, with strong appeal for the brand. The ability to better target audiences and track engagement is key. And brands are able to tell more of their story with longer form content and media that moves beyond the 30-second spot. 

2. Social Media is a fast-moving target. It’s easier to think less in terms of the individual applications, and more in terms of a communications network with a shifting landscape of providers. Pinterest, Facebook, Twitter, and others provide new ways of engagement and require new methods of branding. 

3. Mobile is increasingly becoming synonymous with online, and commerce transactions are shifting away from the desktop pc and retail website to an untethered, app-centric world. Mobile apps are about personal empowerment and enabling relevance in time and place.

4. In-Store is where all of the engagement channels can be brought together to create an impactful brand experience that can create deep engagement with the customer. The physical location presents a powerful platform for telling the brand story in a contextually relevant way.

The Art Of The Happening

Going to a physical store to shop is an event. To use an analogy, it’s like going to a movie theater instead of watching at home. Sure, there’s the instant gratification that comes from going to the location to “get it now”. But there’s more to the theater than exclusivity. The venues, at least the better ones, provide an experience. It’s an event and a happening.

Shoppers who “check in” to a physical store via social media aren’t simply looking for a coupon or offer. Often they are saying “Hey, look…I’m doing something. I’m out there in the world, taking action.” But are they being treated to a feeling of excitement by the brand experience and given reinforcement that what they’re doing is interesting? In other words, did they arrive at a location, or at an event?

The Audience As Participants

In the age of the connected customer, the audience for brand media is not passive. Because of their affinity for empowerment and communications, they are able to be active participants in the new media.

For a compelling example of brand media engagement, take a look at the recent campaign by the fast fashion retailer Uniqlo. To promote their new line of t-shirts, a multi-channel experience was created to engage the customers as brand media participants.

uniqlo store 

A purpose-built mobile app was created for the campaign. The app allows customers to create two-second video clips showing them with their new Uniqlo t-shirt and “showing off their moves”. The app is promoted in the store, with a small stage area set up with lights and a backdrop. Customers can shoot their video (either in-store or elsewhere) and can post it to social media and to a special microsite set up by the brand at ut.uniqlo.com. The user-generated content is also showcased in the store as montages on digital signage video-walls.

In the post-advertising age, the most effective brand media content can go beyond storytelling, and into customer participation. Brands are now finding ways to move audiences to participate in the storytelling process.

The Store Is Still The Star

For most retailers, the store is the ultimate manifestation of the brand. It’s the place where customers are fully engaged with the brand. And while it’s still the moment of truth for creating transactions, it’s also the time and place for creating a deeper connection with the customer.

Many retail brands have great mobile apps, websites, YouTube channels and social media. But there is often a lack of awareness of these touchpoints. This awareness gap can be bridged by more effectively leveraging the store to tell the brand story, and to let the customer know all the ways they can engage the brand further after leaving the store.

Posted by: Admin AT 11:12 am   |  Permalink   |  1 Comment  |  
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