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Tag Archives: omnichannel

The essential media channel most successful digital start-ups can’t do without…

31 Tuesday May 2016

Posted by Malcolm Auld in Advertising, Branding, Digital, Digital marketing, Direct Marketing, Marketing, Media, Sales Promotion

≈ 6 Comments

Tags

advertising, digital disruption, digital marketing, direct marketing, inserts, media, omnichannel, print, sales funnel, selling, start-ups

Here’s a quick quiz for you digital marketing experts:

Question: What do all these online brands have in common?

Google, Uber, Kogan, Catch of the Day, Deals Direct, The Iconic, Hello Fresh, Helpling, styletread, carnextdoor, suppertime, Charles Tyrwhitt, Naked Wines, Virgin Wines, Marley Spoon and loads of other digital retailers…
(Hint: Direct marketers have an unfair advantage here)

Answer: they all rely on print as their most valuable media channel for acquiring new customers.

That’s right folks – print technology. You know, that ancient old-fashioned relic of a media channel, arrogantly ignored by so many naive digital marketers?

inserts

printed inserts are key to new customer acquisition

FYI a quick piece of digital advice – if you are an alleged digital marketing expert who advises clients to only use digital channels, or a digital marketer who only uses digital channels, you may need to rethink what you do. Because if you are not using the proven channels and only using the (often) unproven digital channels, you really should leave the industry. You’re giving it a bad name and costing marketers a sizeable fortune.

I’ve written previously about Google’s use of direct mail. You’ve probably received some of their mailings. So let me share the ParcelPush story with you.

Bjorn Behrendt is a successful German entrepreneur with a background in online direct marketing – also known as digital marketing. He launched styletread, an online shoe store, in Australia. He then sold it for loads of money. Now he’s launched another three digital start-ups in Australia to service digital retailers. And these start-ups are all print-based businesses.

Gotta love it when one of the fastest growing digital start-ups, which exists to service digital start-ups, is providing print services to those digital start-ups!

If you’ve worked in direct marketing, particularly online retail or mail order, you’ll probably already use printed inserts in fulfillment parcels to acquire customers. This channel is at least 50 years old.

But if you don’t have any DM experience this channel might be new to you. Bjorn discovered printed inserts when he owned styletread. Loads of other online retailers asked if they could put their inserts in styletread’s shoe boxes when they were delivered to customers – for a fee of course.

Long story short, Bjorn partnered with Australian Craig Morris and launched ParcelPush – a specialist business owning the rights to access online retailer’s fulfillment boxes/parcels. They pay to insert a branded envelope into them. Then they sell inserts into those envelopes to other online retailers. For example, in the Aussie Farmers Direct fulfillment box, they insert an envelope branded “Aussie Farmers Direct” and it is filled with third party offers and samples.

logo

This has become one of the cheapest channels for online retailers to acquire new customers. After all, they are making offers to people who have already bought a product online, so these prospects don’t need to be educated to shop online. It’s the same process as mail-order companies that used inserts to convert existing mail-order customers to buy other products by mail-order. What’s old is new again – again.

More importantly they are using tactile media – the media that affects all five senses – sight, sound, touch, smell and taste. Digital media only affect sight, sound and touch, so are relatively limited in their customer engagement ability. (I had to get customer engagement into a marketing blog to demonstrate my digi-credibleness). As I’ve said before the physical nearly always outperforms the virtual.

Most digital marketers struggle to make digital channels profitable for customer acquisition. The digital channels are much better for retention and repeat business.

Here are some samples of the inserts – all shapes and sizes:

Parcel Push 2

Parcel Push

In addition, and as a result of the success of ParcelPush, they’ve also launched two other print-based businesses:

www.letterboxpush.com.au – this is a competitor to the Yellow Envelope and other distributors of catalogues and brochures into letterboxes.

www.printpush.com.au – this is an online print business. Who’d have thought we needed another printer? But the ParcelPush print volumes have made it possible to offer good value printing – and distribution.

So if you want to succeed with digital marketing, here’s some career advice. Find a grey-haired direct marketer and buy them a drink. Then sit back and listen. They’ve lived through and created more disruption in marketing than anyone else in history. And they continue to do so. You’ll be surprised how fast your career takes off.

But remember, just because digital marketing techniques are new to you, doesn’t mean they’re new to the world. Technology changes, but human’s emotional reasons for buying remain constant…

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Successful retailers prefer paper to pixels for profit…

11 Thursday Sep 2014

Posted by Malcolm Auld in Advertising, BIG DATA, Branding, Digital, Direct Marketing, Marketing, Social Media

≈ 2 Comments

Tags

advertising, bookbook, digital marketing, Ikea, omnichannel, retailing

My recent rant about Omni-channel created some interest. Like me, most marketers cannot understand why common sense needs a buzzword.

It doesn’t matter if you’re selling stuff in the analogue or digital world, you always ensure consistency of imagery, message and service. It is common sense to do so – and doesn’t need a label like Omni-channel for digi-sake.

Most of those who relish digi-buzzwords also naively claim any media channel that existed prior to the arrival of the internet, no longer works, or is irrelevant – some pompously call these channels old-fashioned.

Imagine if these digi-tossers consulted to Ikea – one of the world’s most profitable marketers (they made around 4 billion Euro last year). If Ikea listened to these digi-spruikers they would be out of business.

There’s hardly a person in the first-world that has not seen the printed Ikea Catalogue – it has almost reached icon status. And it’s the key to the company’s marketing success.

ikea 001

A quick background – the 2013 edition was more than 300 pages, with 12,000+ products. It was printed as 62 different versions for 43 countries in 30 languages.

Like many successful retailers, Ikea understands the power of paper over pixels. They also understand how to use pixels to make their paper work even harder. The brilliant Ikea Social Catalogue is one example.

Ikea invited their social media Followers, to upload a photograph of the page in the catalogue with their favourite product to Instagram, for a chance to win the product. Thousands of pages were uploaded and within 4 weeks every product in the catalogue had been photographed and posted.

They call it the Social Media Edition of the catalogue and all it costed was a few weekly prizes and some head hours.

And recently Ikea launched the amazing new bookbook – which they have trade marked. It’s already had around 10,000,000 views online. This incredible piece of technology has no internet or power cables and the battery lasts a lifetime.

The content is pre-installed with 328 high definition pages featuring thousands of products. And navigation is easy – just use your fingers. You can bookmark favourite pages and share the bookbook easily with others.

Yes dear reader, you’ve probably already guessed, the bookbook is the 2015 Ikea Catalogue, hot off the printing press.

Ikea 1

Ikea 2

Once again it will help them sell billions of dollars worth of products – and it will be supported by digital and analogue channels to create even more sales.

And continuing on my fashion retailing theme – here and here, the Sportscraft catalogue arrived in the mailbox this week, complete with VIP offer. Another smart retailer using paper for profit.

Sportscraft 001

Sportscraft 002

So if you suffer from a digi-spruiker trying to convince you the only channels you need to use are the digital ones, here’s a suggestion.

1. Take one Ikea catalogue (bookbook)

2. Hold it just above shoulder height near said digi-spruiker

3. Whack them once on the side of the head with the catalogue

hit in head

You can then leave them the catalogue, so they can do some virtual shopping.

After all we’ve been virtually shopping by catalogue since the mid-1800’s – how terribly old-fashioned of us.

 

 

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Oh omni-channel, you naughty little digi-prangster…

05 Friday Sep 2014

Posted by Malcolm Auld in Advertising, BIG DATA, Branding, Customer Service, Digital, Direct Marketing, Marketing

≈ 5 Comments

Tags

marketing, omni-channel, omnichannel, retail marketing

For those of you who are regular readers, you may recall my bride enjoys her fashion.

And while I can rarely discern where her fingers end and her various screens start, she does not just rely on websites for her fashion information. And the retailers know this fact, because she is not alone amongst their customers.

Fashion, cosmetics, jewelery and accessories retailers all use personalised mail to build their brands, generate store traffic and to sell stuff. They’d go broke if they didn’t, as mail is one of the most successful and proven channels in retail marketing.

They also use email, social sites and in some cases apps, to communicate with their customers. Dare I say it, they’re omni-channel marketers. Oh my digi-goodness, how innovative of them.

You have to love the marketing buzzword “omni-channel“. According to Marketo it refers to the fact consumers can now engage with a company in more than one channel to enjoy a seamless or universal experience. Yes it’s true dear reader. And apparently something new in retailing, this multiple-omni-thing.

And omni-channel even has the buzzword ‘engage‘ in its definition – so it must be fascinating. If you want to read even more omni-drivel, particularly about the value of the omniscient customer experience click here.

For the digi-impaired here’s what it means in layman’s terms. Before the internet was invented, consumers were limited in the ways they could engage with brands – particularly in a seamless or universal way. They only had television, radio, press, print, mail, catalogues, sales people, retail stores, trade shows, telephone, sms, promotions, posters, brochures, sponsorship, videos, CDs, events, multi-level-marketing and such channels.

How frightfully old-fashioned I hear you say?

Now they can still engage using most of those channels of course. But they can also engage via a website, social site, app and email using various computer devices. So obviously this rush of new digi-channels demands a new buzzword to describe the fact consumers can now engage with a company in more than one channel to enjoy a seamless or universal experience. If you get my digi-drift.

It’s undigi-believable this brilliant ability of the digi-buzzword to claim ownership of behaviour we’ve always exhibited in the analogue world and now also exhibit in the digi-world. That is, we use a number of different reference sources before buying stuff – both online and offline sources. Amazing insight this omni-thing.

I was chatting with my soccer mums recently – as I coach their kids. I’m sure one of them said she loved this new Omni-world. She could look at a product on a printed catalogue. Then she could drive to the store and see the same image of the product on a poster at the store, or she could look at it online.

But if the product image on the poster or the website wasn’t a seamless match to the image on the catalogue, she could refuse to buy it on the basis her shopping experience was not universal and seamless. Such consumer control of brands is scary.

Apparently it happens all the time – consumers always use marketing speak when conversing with each other don’t they? Just ask a digi-spruiker.

In case you’re interested, Omni comes from the word Omnis, which can mean ‘all’ or ‘universal’, depending upon your definition reference. Yet there is no agreement on the spelling of the buzzword – is it Omnichannel, Omni channel or Omni-channel?

Let’s look at a a couple of Omni-channel graphics shall we:

omnichannel 1

omni-channel-300-x-272

As you can see these images describe a recently discovered parallel universe. In this new Wonderland humans don’t shop in physical stores (despite the sexist image of women shopping at a retail store). These people don’t speak with other humans, watch TV, listen to radio, see outdoor or in-store posters when they walk or drive, read catalogues received in the mail or engage in any other analogue channel. They just spend their life staring at screens and tapping keys.

What Omni-bollocks!

Yes, on some occasions people will notice or search for something online and then buy it online, without involvement in any other channel. This is a growth area of retailing. And the more consistent the content on the various screens, the easier it is on the eye and mind to process. This knowledge comes from decades of analogue retail experience by the way.

And yes, in many cases a statistically insignificant number of people will comment on a social site about their purchase, or even on the retailer’s site, or even less on a ratings site.

But in the real world, most people use any combination of analogue and digital channels when deciding what to purchase. Mind you, when they are repeat purchasing groceries for instance, they rarely use any channel to guide their decision, apart from the brands they see on the shelf. “What’s on sale today?”

If they buy groceries online, they often have a set shopping list and just hit the re-order button. Very little omni-experience there.

But back to the fashion retailers – they are Masters of the Omni-Channel.

In the last week both Mecca Cosmetica and anna thomas have mailed different types of catalogues with news and offers for their customers. For those who don’t know, Mecca has 40 stores across Australia and NZ, while anna thomas has six boutiques in Australia.

Here’s some shots from their mailings. Mecca is a cross between a catalogue and a broadsheet newspaper. It also included The Mecca Report Hotlist as an insert…

Fashion shots 006

Fashion shots 008

Fashion shots 007

The anna thomas mailing was a poster folded to C5 size:

Fashion shots 003

Fashion shots 004

Even Country Road doesn’t miss starting a new season without mailing their customers a broadsheet catalogue:

Fashion shots 001

Fashion shots 002

In fact, they probably do as Peter Sheppard did decades ago and use the sales results from their mailing to determine the floor stock for their stores.

And if you look at these retailer’s websites you’ll discover they include the same content on their sites as they do in their mailings, so they create a seamless experience for their customers – they’re omni-channel purists if you ask me. Bloody retailing legends really.

But I have to go now. I have some omni-engagement to do. I have a catalogue to read and a website to view – to help me drop hints for a Father’s Day gift.

Have an omni-goodweegend – and if you’re in Oz, Happy Father’s Day!

 

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