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Jeff Hasen

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Running With Mobile But Crawling With Personalization

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If you want hype or smoke and mirrors, you can easily find 100 people who will tell you a tale about the mobile wallet’s role in eliminating cash (it hasn’t) or the ways that beacons have saved retail’s brick and mortar locations (they haven’t).

But if you want to know what really is happening – or isn’t – in marketing, you check in with Noah Elkin, now a research director at Gartner. I met Elkin more than 10 years ago when he was Chief Evangelist at eMarketer. His book, Mobile Marketing: An Hour A Day is a great read, even six years after its publication.

What caught my eye recently was Elkin’s positive assessment https://blogs.gartner.com/noah-elkin/mobile-marketing-means-serious-business/ of where we are with mobile marketing.

“A big theme in Gartner’s recent Multichannel Marketing Effectiveness Survey is the emergence of mobile as a dominant channel for multichannel marketers," he wrote. "Now, for those who have been watching mobile’s share of ad revenues and digital time spent climb steadily upward, the notion of mobile’s dominance may seem old hat. It clearly enjoys that status for the audiences marketers are trying to reach.

“But marketers often have struggled to effectively incorporate mobile into their marketing strategies. We’ve seen that most multichannel marketers, for example, don’t see a need to go beyond creating mobile extensions of existing desktop-based engagement techniques (e.g., the website, advertising, search and email) — a finding consistent with the marketers who’ve used Gartner’s “Marketing Maturity Assessment” tool and rated mobile marketing their least mature capability.”

But lots changed in 2017, according to Elkin.

“This is one of those rare occasions where we can legitimately say, 'What a difference a year makes,'” he said. “In 2016, marketers told us that on average, they were using 3.5 mobile techniques (out of a total of 13 we asked them about) and had another two in the pilot stage. Fast-forward to 2017, and marketers now have 4.3 tactics live on average, and are piloting 3.1, representing a combined increase of 33 percent.”

To go deeper, I dialed up Elkin for a The Art of Mobile Persuasion podcast interview. In part 1 (episode 24 - https://itunes.apple.com/us/podcast/art-mobile-persuasion-podcast/id1156481550?mt=2), we talk about the increase in maturity, but also the distance that we still have to go to deliver on the one-to-one communication that so many hype.

“You see marketers taking something of a crawl, walk, run approach,” he told me. “There is this promise that if you are fully invested in personalization, it promises great things from a business results perspective. But most marketers really are starting with one channel. You’re starting with basic e-mail personalization, for example. I have a lot of calls with our marketing clients about just taking those baby steps about how to do better customer segmentation. That’s a long way from being able to personalize across the entire customer experience.

“There are cost implications. There are complexity implications.  The technology is there but one thing we see not just with personalization technology but with marketing technology in general is that marketers buy it with intent to fully deploy it, but there is lag between when they adopt it to when they fully utilize all the capabilities of the tools that they have.”

To believe that drastic improvement is coming is, in Elkin’s view, a bit too optimistic.

“The way marketing technology weaves itself into organizations tends to be more incremental than rapid,” he said in the interview.  “We see marketers in to the 2 range (the developing phase) in the marketing maturity model and they want to get to a 4 (the advanced phase) (out of 5). Marketers really want to move up that maturity curve but the challenging part is how do you change processes, how do you bring on board new technology while you are still running your business day to day?

“That’s where some of that energy around maturing areas of marketing can fall down because it’s hard to be working on those parallel paths. How do you do these changes that have significant implications for how your marketing department is run and how it is structured, the technology it uses, the skills that you require while you are still doing the day to day and still being measured on where you are expected to deliver.”

Hear more of Elkin’s insights in part 1 and in a second part posting later in January.

Tagged with Noah Elkin, The Art of Mobile Persuasion, podcast, Gartner.

January 9, 2018 by Jeff Hasen.
  • January 9, 2018
  • Jeff Hasen
  • Noah Elkin
  • The Art of Mobile Persuasion
  • podcast
  • Gartner
  • 1 Comment
1 Comment
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Delivering Lessons From The Holiday Shopping Season

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Conventional wisdom would say a retailer shouldn’t risk cannibalizing holiday sales as well as not give consumers an opportunity to wait until the last minute because they might be enticed to buy elsewhere.

In 2018’s first understatement of the year, Amazon is anything but conventional.

The company actually elongated holiday selling efforts, beginning in September and stretching literally to the final hour before Christmas.

Sure, big revenue days were Black Friday and Cyber Monday, but Amazon catered to all, including those who turned the page on Labor Day with shopping and those who procrastinated or purposely waiting until Dec. 24 with delivery options that were as historic as unconventional.

It even prospered in year two of Prime Day in December -- 30 hours of deals for members of its Prime program  — and saw the biggest sales day ever in company history.

Most noteworthy was the activity generated by rapid delivery.

According to Amazon, which for the first time offered same-day or next day delivery in 8,000 markets, the last Prime Now order in time for Christmas was delivered in 58 minutes at 11:58 p.m. on Christmas Eve in Baltimore, MD. The order included those must-haves, at least for someone -- the Kid Galaxy Amphibious RC Car Morphibians Shark Remote Control Toy, the Crayola Oil Pastels Art Tools, 28 ct., and the VTech Click and Count Remote.

“Same day and next day delivery is starting to replace store visits,” retail expert Ryan Craver told me in an interview on The Art of Mobile Persuasion podcast that posted this week (episode 23 here - https://itunes.apple.com/us/podcast/art-mobile-persuasion-podcast/id1156481550?mt=2).

“The big reason why we are seeing a bit of inflection point, if you think back, we didn’t have that many markets where it was available. Obviously now word of mouth plus the press has people try it for the first time and they fall in love with it.

“The second thing is the amount of product that is now available for same day delivery. Everyone knows about Amazon but there is a big behemouth called Google who offers something like Google Express that provide access to everything that Walmart, Target, and Costco sell with same day delivery.”

Craver, a key voice in my The Art of Mobile Persuasion book www.artofmobilepersuasion.com, says price plus availability makes consumers think that delivery is the way to go.

“It’s actually a decent price,” he told me “It’s a marginal fee now. You’ve got 1099 employees delivery for $5 a pop and a tip if you hit a certain price point. That is a pretty compelling consumer experience that is tough to match and it’s going to continue to grow and grow and grow.”

Customers' use of Amazon's one-day, same-day, and two-hour delivery doubled this holiday, according to the company.

As to mobile’s role in purchasing, Amazon said that mobile purchasing increased 70 percent in 2017.

Mickey Mericle, vice president, Marketing and Customer Insights at Adobe, said that “shopping and buying on smartphones is becoming the new norm and can be attributed to continued optimizations in the retail experience on mobile devices and platforms.”

Adobe reported that 75 percent of millennials expected to shop via their smartphone.

Still, Craver reminded us that there is more to do with mobile, noting that many web sites and apps don’t allow for purchase.

“There are only a few retailers who have figured out that final path to purchase,” he said.

Of course, Amazon is one of those few. And it won’t stand still. Drone delivery awaits.

(Hear Craver’s insights on the podcast this week and in a 2018 look ahead posting later this month.)

 

Tagged with Ryan Craver, Amazon, The Art of Mobile Persuasion, podcast.

January 2, 2018 by Jeff Hasen.
  • January 2, 2018
  • Jeff Hasen
  • Ryan Craver
  • Amazon
  • The Art of Mobile Persuasion
  • podcast
  • 1 Comment
1 Comment

Jeff Hasen

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