GAP: Turning shopping on its head

Isn’t this brilliant? I thought so. It’s from a few months back now but no they aren’t a client, lets get that out of the way first.

To announce and promote their customer loyalty programme Sprize, the GAP store  in Vancouver, BC completely flipped everything upside down and adhering to their tagline rather nicely of turning shopping on its head. This I like.  So all of the mannequins, displays and signs were flipped, as well as some cars and a hot dog stand outside of the store. Brilliant.

It seems to me like a clever customer retention tool and keeping those existing customers happy. I think its only open in Canada at the moment but they can sign up for a free Sprize account at participating Gap stores for an opportunity to collect SprizeMoney. Put simply, if you buy a shirt at £25 and within 45 days it goes down in price then you get credited to your account the difference. Now thats something I’d sign up to for sure. Isn’t it annoying when you buy something full price for it to be discounted some weeks later?

This is smart because the idea / hope is that people will return to GAP more often to see what they can get for their Sprizemoney and undoubtedly pick up a few more purchases than they had intended. Potentially increasing footfall and volume of purchases.

Nice.

Via PSFK and Suite 101

Branding can make anything look good.

The wonders of branding. How many can you recognise? .

@rorysutherland at TED: Life lessons from an ad man

Now perhaps somewhat of a TED classic, this is definitely worthy of your time, the video that is. Rory is not only someone with a deeply ingrained wealth of knowledge and experience, but I think he’s truly emblematic of our time. Why? Well, along with all that, it would seem he maintains a curiosity for this new world we live in and an enthusiasm to try out all the new tools that have sprung up and become part of every day life. In this TED talk he mentions amongst other things, the skills and creativity involved in creating intangible value, and that’s an important one, especially with social media, creating value that you can’t touch. I like the musings that advertising isn’t getting people to buy stuff that they do not need as much as it is getting people to value what they already own. Fascinating stuff.

“We need to appreciate what we already have, rather than agonising over what we don’t.”

A point is also made that many of life’s problems could be solved by “tinkering with perception”. Isn’t that what we’re all trying to do with all these creative, groundbreaking projects on behalf of bold / brave clients? Challenge perceptions, push the boundaries, reach new heights? The Diamond Shreddies are a perfect case study, where something so simple to everyone (in hindsight) as flipping shreddies on it’s side resulted in raising sales by 18%. Truly remarkable. We’re told that the traditional shreddies is old and boring (below) whilst being shaped as a diamond instantly makes them ‘better’, ‘more flavourful’ and ‘crunchier’. Astounding. It’s the same shreddies but the perception we are being sold is of these new experiences to be had with the Diamond Shreddies. And we believe them. Hence why sales rose.

Of course, I digress. There was some criticism of the points Rory made here and then furthermore in the comments.. but I got bored of the arguing and going round in circles in the comments but hey, it’s encouraging some debate and thought around the subject isn’t it.

Close to 100 comments here also, on TED, mostly wildly cynical and dismissive but isn’t it great when Rory himself pops in, says hello and silences a few critics. Truly brilliant.

After all that waffle, here it is.. Enjoy.

Interacting via social media isn’t the preserve of the young

Following on from my post previously from The Times here another interesting read was found in the 16th April issue of NMA where Rebecca Jennings, Principal Analyst at Forrester Research wrote a similar piece how an older age than expected is using social media. The following is a repost of that article.

Most interactive marketers know that young consumers are very engaged in social media, but many fail to appreciate that the same social tools can also be used to reach older users. Recent Forrester research shows there are a significant number of European baby boomers – adults aged 43-63 – who already read social media on a regular basis, and another, slightly smaller subset who are already uploading their own content, like videos, onto the web. Marketers can take advantage of this by offering them value with useful information and support provided in a social context.

Overall, 47% of younger boomers – those online adults aged 43 to 52 – now engage with social media on a regular basis, as well as the 41% of older boomers – those aged 53 to 63 – that also take part. In each of the groups, more than a third can be classified as spectators, or those who are reading social content such as blogs at least monthly.

While boomers are taking the plunge into consuming social content, they’ve been slower at joining social networks; just 10% of younger boomers and just 7% of older boomers participate in this type of activity. For example, one of the most popular social networks aimed at older consumers, SagaZone in the UK, has around 45,000 users, compared to Facebook’s estimated 18m+ users.

Despite their resistance to joining social networks, both young and old boomers are contributing their own opinions online – known as being a critic. These critics do things like participate in forums or post their own reviews online. Encouragingly for marketers, around a tenth of both age groups fall in to this category and a slightly smaller percentage, 9% of younger boomers and 7% of older ones, are creators: those who upload their own content or write their own blogs.

Marketers should also take note that just as participation in social media varies between age groups, it also varies between European countries. Dutch boomers lead the pack as the most engaged older audience overall, with 69% of 43-52 year olds and 60% of 53-63 year olds using social media on a regular basis.Of these other Europeans, Italian boomers are the keenest creators, with around 17% of younger boomers and 14% of older boomers involved. Younger boomers in the UK are considerably more engaged than older ones, with around 52% of 43-52 year olds engaged in social media, but just 38% of 53-63 year olds. About 40% of boomers in both France and Spain are keen spectators but just a third of the German boomer audience are engaged in social media.

Will consumers continue to shun the high street in favour of online shops?

So I’m taking a bit of a diversion away from the small, friendly, local pub that I call Twitter for one post and trying out something new. I wanted to see what the world was like outside (great view!) so if you’re expecting a dose of social media musings, come back again soon 😉

As part of my work related media diet, along with NMA, Marketing and PR Week, I subscribe to Revolution magazine. It’s undergone a bit of an overhaul recently, it looks fantastic and it’s always got some thought provoking articles. One of which forms the crux of this post. The covers in the last few months really have been beautiful. I actually now look forward to my copy dropping through the letter box once a month.

I’ve always maintained an interest in all things retail working for Argos and HP in their Marketing depts along with dabbling a bit in the running your own business thing when I was younger, so it was an interesting read when reading “Will consumers continue to shun the high street in favour of online shops?” in Revolution. If you missed it I thought I’d republish it here for your viewing pleasure. Before I do that though..

What do you think? Is retail as we know it here to stay? What’s next?

Without further ado, it goes a bit like this.. All credit to Revolution, P22 of the February issue of course..

Bargain hungry shoppers flocked online towards the end of last year, helping retailers including House of Fraser, Next and Marks & Spencer record a rise in e-commerce sales in the run-up to Christmas. Will online shopping continue to boom at the expense of the high street? They put the question out to four individuals. As an FYI, before talk leads to the results, bear in mind that this was published in Revolution, a magazine that’s tagline is ‘Smarter digital marketing’. So when 3 out of the 4 respondents said Yes to the question in the article title, it is perhaps a bit of a one sided argument. Would have been good to hear a bit more from the other side.

1. Andrew Ellison, Digital Controller, Schuh (Yes)

This year will be the first time online retailers will have no guarantee of achieving sales increases. Most online shoppers still use credit cards, and the issuers are increasing their interest rates, no matter what the Bank of England does.

People think online shopping is all about price. It isn’t. Those online retailers that compete on price will find the high street nipping at their heels as clearance sales and all-year promotions become commonplace. Those online retailers that compete on selection and availability will continue to boom as the high street merchandisers trim their ranges of all products that have limited appeal and low margin.

People will still pay for full price for a product they really want – particuarly if they can’t get it at the local shopping centre. (Supply and demand? Simple)

We are all passionate about certain categories of goods, from top end electronics to Sienna Miller’s handbag. Online will soon be the only place for them.

2. Robin Goad, Research Director, Hitwise (Yes)

Online will steal shoppers, but the biggest beneficiaries will be web-savvy high-street retailers. Spending shifted online last Christmas, but more of it is going to familiar names than internet start-ups. During December, the websites of high-street retailers received 32% more visits than their online-only rivals, and this gap will widen in 2009.

Thanks to the recession, consumers are turning to the internet to save money; discount voucher searches have doubled; consumer advice sites have flourished; and the supermarkets are thriving.

M&S experienced its busiest ever day online when it reduced prices by 20% in November. It is the combination of online and offline that has helped brands such as M&S, Argos and Tesco thrive on the web. While a presence on the high street helps, particularly during sales season, the strongest asset for a mult-channel retailer is a trusted brand.

3. David Walmsley, Head of Web Selling, John Lewis Direct (No)

On Christmas day, a strange thing happened. Johnlewis.com had lots of visits and browsing, and a pleasing amount of sales. But conversion was weaker. Customers were researching online before visiting one of our stores.

For us it is genuinely not about increasing sales in one particular channel. The challenge is to keep up with our customers expectations. In 2009 therefore we expect to build on the success of cross-channel propositions, such as Deliver to Store service. We also expect to see an increase in customers researching online before heading in-store, and vice versa.

Our aim is to provide a multi-channel shopping experience (bla bla marketing spiel) that flexes to meet demand so customers only ever deal with one John Lewis. We therefore believe that the future for the high street is a vibrant one. (But then they kinda have to say that, right?)

4. Fadi Shuman, E-commerce Director, Pod1 (Yes)

This online trend will continue for the next few years, and shopping on the high street will never be the same again. Last Christmas, a record number of people experienced the convenience of shopping online, and they will spend ever more of their cash online this year and next.

The fact that websites are getting more secure, coupled with more intuitive interfaces, faster connections and a plethora of other improvements to the internet, means an even more convenient shopping experience that just keeps getting better.

In the next few years, the high street will evolve rather than completely disappear. The new wave of shops will be less about a pure shopping experience and more about a social experience where you can purchase goods while being entertained.