tag:econsultancy.com,2008:/topics/strategy-operations Latest Strategy & Operations content from Econsultancy 2016-05-25T11:38:00+01:00 tag:econsultancy.com,2008:BlogPost/67876 2016-05-25T11:38:00+01:00 2016-05-25T11:38:00+01:00 Why Gousto’s CEO thinks recipe boxes are the future of grocery retailing Nikki Gilliland <p>A few days ago I spoke with CEO Tim Schmidt, to talk about how Gousto is intent on delivering more than just good ingredients.</p> <p><img src="https://assets.econsultancy.com/images/0007/5283/timo-schmidt-CEO-gousto.jpg" alt="" width="620" height="539"></p> <p>Here's what he had to say...</p> <h3>What would you say is Gousto’s unique selling point?</h3> <p>Customers shop by recipe, choosing whatever they like the look of, and we deliver the ingredients to anywhere in the UK.</p> <p>We offer a new menu of 12 meals to choose from each week, as well as extra goodies like wine and dessert.</p> <p>No other service gives this amount of choice or lets you have add-ons. If you don't like feta cheese... well, that's your prerogative.</p> <p>Alongside this, we think Gousto is the easiest way to cook healthy food. And our customers are busy people, so they really value that.</p> <p>Despite being certified organic and only using meat from British farms, we only charge from £3 per meal including free delivery. This also makes us the least expensive recipe box option in the UK for healthy meals. </p> <h3>Who do you see as your biggest competitor and why?</h3> <p>It's a £200bn grocery market characterised by no growth and no margin. But there are pockets of growth: the online channel is growing at 17% per year, moving £10bn in revenues from the store to online by 2020. That's a seismic shift. </p> <p>Plus, nobody want to waste two hours shopping every week when they can instead spend one-minute browsing online and get everything delivered for free, without any food waste.</p> <p>So in a way I really believe that supermarkets are our competitors. </p> <p>The supermarket model is out-dated. We think customers deserve better – and the response shows they agree. On Trustpilot we have a 9/10 score versus 3/10 for all supermarkets.</p> <p>As we continue building our proposition over the next 10 years, I expect mass adoption. This is amazing for farmers, customers and animals alike.</p> <h3>Some assume recipe boxes are for people who can’t or don’t like cooking – what is the benefit for the ‘foodie’?</h3> <p>First of all, 75% of Brits cook every single day. </p> <p>Take Rachel, a 40-year-old professional living outside of London with two young kids. She has to cook to provide a healthy meal, it's a real pain for her.</p> <p>It's not a choice, because she can't order pizza or heat up frozen food as its way too unhealthy for her kids. </p> <p>Customers like Rachel represent a huge proportion of the UK – our aim is to make their lives easier, better and more natural. </p> <p>We don't change their habits; we just help them. </p> <p>And rest assured I'm a hardcore foodie and I still love my four Gousto meals each week. It's incredibly nice to go on autopilot knowing you’re cooking something delicious every single time.</p> <h3>How do you maintain low levels of food waste in comparison to supermarkets?</h3> <p>We are the only grocery business that actually repackages food. We go to farmers, buy large quantities and repackage food ourselves. </p> <p>This, together with our centralised warehouse, guarantees our close to zero waste rate. The forecasting is 100% data driven and automated. </p> <p>In contrast, if you run 5,000 stores you get grey hair predicting demand, especially on short shelf-life produce. A leading supermarket just published that it is wasting 66% of fresh salad. That's just insane!</p> <h3>As a subscription service, how do you ensure customer retention?</h3> <p>We delight customers. That’s all there is to it. </p> <p>But seriously, we listen to feedback super carefully and obsess about our product. If you think about innovation in three stages - ideation, selection and execution - it's fair to say that we outsourced the first two to the customer.</p> <p>In other words, we listen to customers and then do whatever customers want. But not via a once-a-year focus group, in real time every hour. </p> <p>To give you some examples, just this year we launched express meals, we doubled additional products like dessert and wine, we launched iOS, Android and iPad apps and we increased recipe choice by 20%. </p> <p>Other companies in this space have done nothing at all. Our restless nature and desire to give customers what they want is how we will stay ahead.</p> <h3>What digital channels are most important for your business?</h3> <p>Television is dying and all acquisition is moving online. Our customers are extremely active on social media, and recipes are the most shared content on most platforms already. </p> <p>We of course use <a href="https://econsultancy.com/reports/email-census/">email</a> and other channels too. We have very high referral rates from happy customers and we also get lots of word of mouth which is nice.    </p> <h3>How does Gousto use personalisation to improve the customer experience?</h3> <p>I'm a geek at heart, so I really admire our data team. With PhDs in machine learning, computational chemistry and maths, we have some serious fire power when it comes to <a href="https://econsultancy.com/reports/website-personalisation-buyers-guide/">personalisation</a>.</p> <p>And we run a state-of-the-art AWS cloud micro-server infrastructure that allows us to process huge amounts of data, super-fast.  </p> <h3>What are your aims for Gousto in future?</h3> <p>As food shopping is moving online, we are building capabilities to capitalise on the rise of dietary requirements, convenience and mobile. </p> <p>In a decade we will have achieved true personalisation. That's a BIG proposition which will challenge supermarkets' existence. It just takes time. And buckets full of conviction. </p> <p><img src="https://assets.econsultancy.com/images/0007/5286/gousto-food-boxes.jpg" alt="" width="780" height="585"></p> tag:econsultancy.com,2008:BlogPost/67860 2016-05-19T14:57:11+01:00 2016-05-19T14:57:11+01:00 10 examples of great Disney marketing campaigns Ben Davis <h3>1. 'Healthily Ever After'</h3> <p style="font-weight: normal;">Disney has so many great stories, but it's not averse to running campaigns with a message.</p> <p style="font-weight: normal;">'Healthily Ever After' uses Disney characters to inspire families and children to eat healthily and exercise more regularly.</p> <p style="font-weight: normal;">The company has form in this area, recently partnering with Public Health England on the NHS' <a href="http://www.disney.co.uk/changeforlife/homepage">Change4Life</a> programme and <a href="https://www.swimmingworldmagazine.com/news/usa-swimming-teams-up-with-disney-pixars-finding-dory-for-just-keep-swimming-marketing-campaign/">with USA Swimming</a> for Finding Dory.</p> <p style="font-weight: normal;">For a decade, Disney has been using nutritional guidelines when choosing which partners to work with. It's an effort that fits seamlessly into Disney's marketing strategy, one that necessitates engagement with parents as much as it does children.</p> <p style="font-weight: normal;">Hooking mums and dads into films and franchises, either through clever use of content or broader brand values, is the aim.</p> <p style="font-weight: normal;">Check out the video below.</p> <p><iframe src="https://www.youtube.com/embed/J-MMIFiifRQ?wmode=transparent" width="560" height="315"></iframe></p> <h3>2. Star Wars: The Force Awakens - content seeding</h3> <p style="font-weight: normal;">There are a number of blogs that have analysed <a href="https://ahrefs.com/blog/content-marketing-strategy/">the content marketing ahead of Disney's first Star Wars</a> release last year.</p> <p style="font-weight: normal;">Of course, the associated activity for a movie set to gross billions is massive, but here are just a few of the highlights.</p> <p style="font-weight: normal;">Content marketing from Disney is hard to define but these seemingly off-the-cuff examples are likely expertly stage-managed.</p> <h4 style="font-weight: normal;"><strong>A user-generated R2-D2</strong></h4> <p style="font-weight: normal;">The first photo to be released from the set of the new film was a masterpiece in understanding the franchise's audience (<a href="http://www.starwars.com/news/r2-d2-is-in-star-wars-episode-7-and-hes-fan-made">view it here</a>).</p> <p style="font-weight: normal;">Though it's not the most exciting photo to you or I, Star Wars nuts were ecstactic to see that R2-D2 had returned, and got even more glassy-eyed when they saw this droid was built by two fans. </p> <h4 style="font-weight: normal;"><strong>Perfect tweets</strong></h4> <p style="font-weight: normal;">Here's a tweet from the director, JJ Abrams. In case you aren't up on your spaceships, that handwritten note is sitting on the Millennium Falcon's snazzy, light-up chessboard.</p> <p style="font-weight: normal;">Again, this was catnip for fans.</p> <blockquote class="twitter-tweet" style="font-weight: normal;"> <p lang="und" dir="ltr"><a href="http://t.co/wQYfaVtwFU">pic.twitter.com/wQYfaVtwFU</a></p> — Bad Robot (@bad_robot) <a href="https://twitter.com/bad_robot/status/474206241603198976">June 4, 2014</a> </blockquote> <h4 style="font-weight: normal;"><strong>"Chewie, we're home"</strong></h4> <p style="font-weight: normal;">The second teaser trailer for The Force Awakens was when the marketing campaign went into overdrive.</p> <p style="font-weight: normal;">Though the first trailer hadn't included clips of the old franchise stars, they featured heavily here. Harrison Ford's closing line was so perfectly pitched, it became a meme.</p> <p style="font-weight: normal;">Ahrefs points out that $2bn was added to Disney's value by the success of this trailer alone. Type 'Chewie, we're home' into Google, and you'll see 661,000 results (at time of writing).</p> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0007/5060/chewie.jpg" alt="chewie" width="460" height="231"> </p> <h4 style="font-weight: normal;"><strong>A powerhouse of cross-promotion</strong></h4> <p style="font-weight: normal;">ESPN and ABC (Disney companies) went to town in referencing the new movie. And when it came to commercials, the amount of co-branding that went on was staggering (see <a href="http://www.adweek.com/news/advertising-branding/brands-awaken-disneys-co-branding-push-new-star-wars-film-unprecedented-168660">this AdWeek article</a>).</p> <h3>3. The Jungle Book reboot</h3> <p>We'll get on to some marketing nitty gritty soon, but I wanted to mention another movie in the context of Disney's ability to perfectly pitch its films.</p> <p>The Jungle Book reboot has a trailer that notably includes no songs, little Baloo, and yet does feature plenty of moody, scary moments.</p> <p>Adding to this, stills and videos were created emphasising the actors that voiced the characters.</p> <p>Targeting older audiences and parents in this way created a wide-ranging appeal that ensured three weeks at the top of the box office (before Captain America came along).</p> <p>A Super Bowl ad placement and a 3D preview in auditoria before the Star Wars movie helped, too.</p> <p><iframe src="https://www.youtube.com/embed/McZyOEekZy4?wmode=transparent" width="560" height="315"></iframe></p> <h3>4. Oh My Disney</h3> <p><a href="https://ohmy.disney.com/">Oh My Disney</a> is Disney's BuzzFeed imitator. It was set up back in 2013 and publishes plenty of content about TV shows, movies, theme parks, as well as the obligatory trivia, quizzes and behind-the-scenes stuff.</p> <p>It's all designed for maximum sharing, of course, with a positive outlook and a dose of nostalgia.</p> <p>Even a brand like Disney needs to keep creating opportunities to engage with fans and, although running a site like this doesn't come cheap, it's a drop in the ocean of Disney's marketing budget.</p> <p>Oh My Disney is doing fairly well on social with around 700,000 Facebook fans to date, but does face stiff competition from many other outlets (such as BuzzFeed itself), which understand the draw of Disney-themed content.</p> <p><img src="https://assets.econsultancy.com/images/0007/5064/Screen_Shot_2016-05-19_at_09.17.42.png" alt="oh my disney" width="615" height="321"></p> <h3>5. Annie Leibovitz ads</h3> <p><a href="http://www.boredpanda.com/celebrity-disney-dream-portraits-annie-leibovitz/">Disney Dream Portraits</a>, to give them their proper name, were produced by Annie Leibovitz from 2007 to 2014.</p> <p>These photographs of Hollywood stars in character as iconic Disney princesses, villains (etc) featured as print advertising, again appealing to parents and older fans.</p> <p>They speak for themselves and add A-lister gloss to the brand, perhaps making dad rethink his decision about Disney World this year.</p> <p>View the portraits.</p> <h3>6. MagicBands</h3> <p>Next, some more prosaic activity - <a href="https://econsultancy.com/blog/65307-five-retailers-using-nfc-and-rfid-to-enhance-shopping-but-do-they-work">RFiD</a> and <a href="https://econsultancy.com/blog/66287-the-five-biggest-benefits-of-crm-systems">CRM</a> to be exact.</p> <p>In 2013, Disney made a leap forward in its parks, introducing MyMagic+, which includes MagicBands.</p> <p>The system allows users to book slots for rides, restaurants and meeting characters, as well as open their hotel room door. This can be planned by website or app, and the MagicBand can store payment and ID information.</p> <p>Disney can collect more accurate data about visits, purchases and customer satisfaction, adding this data to digital and social profiles.</p> <p>In turn, the flexibility of MyMagic+ helps to improve the visitor experience.</p> <p><img src="https://assets.econsultancy.com/images/0007/5067/Screen_Shot_2016-05-19_at_09.28.35.png" alt="magicbands" width="615" height="356"></p> <h3>7. Instagram</h3> <p>Disney has 5.2m followers on Instagram.</p> <p><a href="https://www.instagram.com/disney/">The account</a> is notable for the variety of imagery on display, invoking family, nostalgia, fun and, of course, merchandise.</p> <p><a href="https://www.instagram.com/p/BFU-zazyf1R/?taken-by=disney&amp;hl=en"><img src="https://assets.econsultancy.com/images/0007/5071/Screen_Shot_2016-05-19_at_09.44.02.png" alt="disney instagram" width="615" height="330"></a></p> <p><a href="https://www.instagram.com/p/BFWPE4eSfxP/"><img src="https://assets.econsultancy.com/images/0007/5070/Screen_Shot_2016-05-19_at_09.43.35.png" alt="disney instagram" width="615" height="393"></a> </p> <h3>8. Frozen</h3> <p>Frozen is the biggest animated movie of all time. What's interesting is the way the film's revenue grew throughout 2014, despite a 2013 release.</p> <p>Some say Disney was caught on the hop by the film's success, hence being late to the party with much of the merchandise and many of the tie-ups.</p> <p>Indeed, many retailers put restrictions on merchandise, allowing customers to buy only one or two of certain toys, and therefore keeping demand sky high.</p> <p>I'm including the film because of Disney's genius is producing new products to fit a franchise. For Frozen this included a re-release of the movie, with subtitles for a singalong experience.</p> <p>There's also a karaoke app, a Broadway show no less, plenty of YouTube and ABC content, and the familiar toys, clothing etc. Frozen drove a 7% increase in merchandise revenue in 2014 (a year after the film released).</p> <p>The franchise is now one of Disney's top five most valuable and its tale of sisterhood and princesses without princes has shown how Disney can update the playbook and reap big returns.</p> <p><img src="https://assets.econsultancy.com/images/0007/5078/frozen.jpg" alt="frozen" width="259" height="383"></p> <h3>9. Marvel tie-ups</h3> <p>I've mixed things up here and included an example of brands using Disney as a distribution tool. Marvel, owned by Disney since 2009, allows partners to make use of its comic book characters.</p> <p>The example below shows a Kiehl's and Captain America custom edition that was distributed to Wall Street Journal subscribers. There's an ad inside and as you can see, the characters on the cover seem to be bursting out of a Kiehl's store.</p> <p>Somehow, the Marvel brand, being all-American, is perfectly suited to advertising tie-ups like this.</p> <p><a href="http://reader.marvel.com/#/issue/33801/wl/1"><img src="https://assets.econsultancy.com/images/0007/5077/Screen_Shot_2016-05-19_at_10.26.06.png" alt="kiehl's and marvel" width="400" height="613"></a></p> <h3>10. Disney Parks blog</h3> <p>Another publishing effort from Disney, and another that caters for superfans. Each post has a handful of comments, showing just how engaged regular park visitors are.</p> <p>Again, this kind of activity is about making sure that Disney's most valuable customers feel central to the action and keep coming back.</p> <p>The website serves a variety of needs, promoting current releases, careers at Disney Parks, new attractions and important minutiae, such as food at the parks.</p> <p><a href="https://disneyparks.disney.go.com/blog/"><img src="https://assets.econsultancy.com/images/0007/5075/Screen_Shot_2016-05-19_at_10.15.08.png" alt="disney parks blog" width="615" height="322"></a></p> <p><em>For more marketing campaign roundups, try the following:</em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67694-10-examples-of-great-ikea-marketing-creative/">10 examples of great IKEA marketing creative</a> </em></li> <li><em><a href="https://econsultancy.com/blog/67766-10-examples-of-great-travel-marketing-campaigns/">10 examples of great travel marketing campaigns</a></em></li> <li><em><a href="https://econsultancy.com/blog/67786-10-great-sports-digital-marketing-campaigns/">10 great sports digital marketing campaigns</a> </em></li> <li><em><a href="https://econsultancy.com/blog/67729-10-creative-digital-marketing-campaigns-from-lowe-s/">10 creative digital marketing campaigns from Lowe's</a> </em></li> </ul> tag:econsultancy.com,2008:BlogPost/67841 2016-05-17T14:23:46+01:00 2016-05-17T14:23:46+01:00 As consumers clamor for good deals, discount strategy becomes key for retailers Patricio Robles <p>According to <a href="http://hitwise.connexity.com/05.09.2016_DealSeekingInspire_CD_US.html">a report</a> published by Hitwise, which we must also note is a division of Connexity, one in every 300 searches contains a bargain hunting keyword like <em>sale</em>,<em> coupon</em>, <em>deal</em>, <em>rebate</em>, <em>bargain</em>, <em>discount</em> or <em>clearance.</em></p> <p>Furthermore, these searches have increased by 40% in the past year alone.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4913/dealsearches-blog-flyer.png" alt="" width="470" height="283"></p> <p>Approximately 60% of these searches originate on mobile devices, evidence of the fact that mobile devices are influencing consumers' offline shopping behavior.</p> <p>Not surprisingly, many coupon-related searches are branded, a reminder to retailers that many consumers are still in play even after they walk into their stores.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4912/brandcouponsearch-blog-flyer.png" alt="" width="470" height="313"></p> <p>Interestingly, Hitwise's data reveals that many deal-seekers aren't undesirables that retailers would want to shun.</p> <p>60% of them are women, nearly half have a college degree, and well over a third have an annual income of $100,000 or more.</p> <p>In fact, these six-figure earners are 19% more likely to search for coupon codes.</p> <h3>Implications for retailers</h3> <p>Retailers shouldn't ignore growing consumer demand for a good deal.</p> <p>As more and more consumers become more savvy and comfortable using their mobile phones, retailers that don't respond risk losing sales to retailers that do respond.</p> <p><strong>So what can they do?</strong></p> <p>Obviously pricing strategy is key. Research suggests that younger consumers are <a href="https://www.entrepreneur.com/article/253582">among the most sensitive</a> to price, and Hitwise says Gen Xers and millennials are the most likely to search for coupon codes.</p> <p>Retailers should address these and other price-sensitive customers directly.</p> <p>Tools like <a href="https://econsultancy.com/blog/10894-best-buy-fights-showrooming-with-online-price-match">price matching</a>, <a href="https://econsultancy.com/blog/66128-consumers-demand-experiential-rewards-from-loyalty-programs">loyalty programs</a>, <a href="https://hbr.org/2015/03/price-sensitive-customers-will-tolerate-uncertainty">uncertainty</a> and rebates can be incorporated into pricing strategy and employed in a targeted fashion to reach specific customer segments.</p> <p>When offering deals, retailers also need to make sure that they <a href="https://econsultancy.com/blog/66984-how-to-get-the-most-out-of-your-online-coupon-campaigns/">get the most from their campaigns</a>.</p> <p>This includes ensuring that discounts are promoted properly on their websites and to customers via targeted emails. Retailers should also ensure that they're not overlooking affiliate channels and third-party services that aggregate coupon codes.</p> <p>The good news is that with smart strategy and good execution, retailers can not only please the bargain hunters in their existing customer ranks, but possibly also drive new customer acquisition.</p> <p>According to Hitwise, those who search for coupon codes are 19% more likely to shop at a store they don't frequent based on a sale, and they're 23% more likely than average to identify themselves as a source of purchasing advice to the people around them.</p> tag:econsultancy.com,2008:BlogPost/67826 2016-05-16T11:31:30+01:00 2016-05-16T11:31:30+01:00 The 10 steps of digital replatforming Ben Davis <p>Recently I read a simple guide to <a href="http://www.codecomputerlove.com/blog/2016/04/de-risk-your-digital-system-migration">mitigating the risk of system migration</a>, written by Code Computerlove, which I thought was good enough to summarise here.</p> <p>It is applicable to anything from CRM to ecommerce.</p> <h3>1. Build a case across the business</h3> <p>Why are you changing platform? No matter which department triggers the change, most others will be affected, too.</p> <p>Building out your objectives and goals for replatforming by allowing other teams to contribute to the process is vital.</p> <h3>2. Form a steering group</h3> <p>It can be difficult for departments to work together on a replatforming project if business as usual is normally a siloed affair.</p> <p>Create a diverse steering group led by an enthusiastic agent of change.</p> <p>The job of this group is to research and strategise, in order to evaluate how the new technology will impact on the business' platforms, performance, people and processes.</p> <p><img src="https://assets.econsultancy.com/images/0007/4824/steer.jpg" alt="steer" width="450"></p> <h3>3. Benchmark performance</h3> <p>Revisit your objectives in order to define goals and then measure with specific <a href="https://econsultancy.com/blog/65180-what-kpis-are-you-using-to-measure-the-impact-of-content-marketing/">KPIs</a> and metrics.</p> <p>You don't simply have to benchmark performance as a monetary figure. Benchmarks could include efficiency (some measure of time required for a desired output) or even staff retention. </p> <h3>4. Navigate the marketplace</h3> <p>There are no real shortcuts here, with plenty of platforms and implementers to choose from.</p> <p>The IT team will have a large say in this choice, often having a preference for a particular framework such as PHP or .NET.</p> <p>Be clear on what you want the technology to do (how complex does it need to be?) then invite the right suppliers to showcase their products.</p> <h3>5. Evaluate cost versus value</h3> <p>Open source and licensed products will be available. The licensed product is more expensive but may deliver more value, too, dependant on your requirements.</p> <p>It's important not to dismiss costlier platforms that may bring in more revenue in the long term, through greater flexibility or functionality.</p> <p><img src="https://assets.econsultancy.com/images/0007/4827/wordpress.jpg" alt="wordpress logo" width="450"></p> <h3>6. Test to ensure a positive impact</h3> <p>Prioritise where the business needs most support and test the impact of new technology here first.</p> <p>For example, a new website build might employ <a href="https://econsultancy.com/blog/67249-a-beginner-s-guide-to-a-b-testing/">A/B testing</a> and rapid prototyping to ensure that new functionality is an improvement on the legacy.</p> <p>To what degree the new functionality outperforms the old is important to know when managing stakeholder expectations.</p> <h3>7. Replace the most valuable parts first</h3> <p>Changing everything at once is risky.</p> <p>'Application strangulation' is the technique of keeping old infrastructure in place and replacing it as you go, prioritising the most valuable parts.</p> <h3>8. De-couple your systems</h3> <p>If systems are too closely integrated, updating functionality can be more labour intensive and expensive that it needs to be.</p> <p>Utilising multiple vendors and a looser integration should allow for systems to be swapped in and out more easily as the market changes. </p> <p>This is often dubbed microservices architecture over monolithic application. Services should be scalable in isolation.</p> <p><img src="https://assets.econsultancy.com/images/0007/4826/gwyneth.jpg" alt="paltrow" height="300">  <img src="https://assets.econsultancy.com/images/0007/4825/martin.jpg" alt="chris martin" height="250"></p> <h3>9. Think in products not projects</h3> <p>Projects are absolute and have an endpoint, which doesn't accurately reflect the nature of technology, which is always changing.</p> <p><a href="https://econsultancy.com/blog/67500-what-is-digital-product-management/">Product management</a> is more cost-effective in the long run and will drive more value for the business.</p> <h3>10. Don't forget SEO</h3> <p>This is most pertinent for a website migration, obviously, but warrants a mention.</p> <p>Benchmarking current success is important to ensure rankings are maintained after migration, from key terms to the <a href="https://econsultancy.com/blog/66462-unlock-the-power-of-long-tail-with-content-and-data/">long tail</a>.</p> tag:econsultancy.com,2008:BlogPost/67810 2016-05-09T11:36:14+01:00 2016-05-09T11:36:14+01:00 What is transformational agility & what are its benefits? Ben Davis <p>Off the back of roundtable discussions at our Digital Cream events, we write up trends reports detailing current obsessions within a particular discipline.</p> <p>Last week we published <a href="https://www.econsultancy.com/reports/people-and-process-agile-working-collaborative-tools-and-cloud-based-marketing-tech">People and Process: Agile working, collaborative tools, social enterprise and cloud-based marketing tech</a>, in association with censhare.</p> <p>A big title for a burgeoning issue in digital.</p> <p>Phil Arnold, censhare UK MD, sums up the mood of the discussions around this nebulous topic:</p> <blockquote> <p>Some [companies] are more advanced than others, having broken from functional silos to implement an integrated marketing approach and using processes and tools to improve their collaboration, agility and transparency.</p> <p>However many are still frustrated by a lack of digital ‘buy-in’ from senior management or a fear factor engendered by lack of skills or education.</p> </blockquote> <p>In short, the balance of people, process, tech and culture is a difficult one to strike.</p> <p>Here is some of what delegates had to say.</p> <h3>How are businesses defining agile?</h3> <h4><strong>A move to social business</strong></h4> <p>Social business is the engagement of the customer in product development and the company as a whole. This helps to drive change and customer satisfaction.</p> <h4><strong>Agile with a capital A (not waterfall)</strong></h4> <p>Agile in the project management sense differs from waterfall's very linear approach to the stages of software development (conception, initiation, analysis, design, construction, testing, deployment).</p> <p>Agile sees incremental development stages with testing and market response occurring throughout the process.</p> <p><img src="https://assets.econsultancy.com/images/0007/4734/wfall.jpeg" alt="waterfall" width="259" height="194"></p> <h4><strong>Using new communications technologies</strong></h4> <p>Increasing the use of social and digital technology to support the flow of information in and out of the business and also around the business.</p> <p>This could be using Slack to enable collaboration between teams, or <a href="https://econsultancy.com/blog/67553-what-will-facebook-messenger-ads-mean-for-marketers/">Facebook Messenger</a> to serve customers.</p> <p><img src="https://assets.econsultancy.com/images/0007/1493/Screen_Shot_2016-02-08_at_10.24.10.png" alt="slack" width="400"></p> <h4><strong>More bottom-up approaches to the business</strong></h4> <p>More input from staff who work closer to the customer via rapid, concise weekly meetings. As opposed to the HIPPO effect (highest paid person's opinion).</p> <h4><strong>Working with greater efficiency</strong></h4> <p>Working quicker and in a more efficient manner. This isn't magic, but has to be engendered by empowering staff and changing processes and personnel.</p> <h3>What are the benefits of transformational agility?</h3> <h4><strong>Competitive advantage</strong></h4> <p>To be at the forefront in order to stand out from the competition. This differentiation is often more than simply customer-facing factors.</p> <p>Companies often seek to recruit the most talented staff, by promoting progressive values and investment in digital.</p> <h4><strong>Rationalising of costs</strong></h4> <p>Digital transformation as a way to save money and to cut down on wastage. For example, moving a publication online.</p> <h4><strong>Making products hit the market sooner</strong></h4> <p>Measuring in weeks and not months.</p> <p><img src="https://assets.econsultancy.com/images/0007/4753/agility.jpg" alt="agility" width="400"> </p> <h4><strong>Business understanding</strong></h4> <p>Teams which were once siloed are increasingly working together.</p> <p>Weekly catch-ups bring staff together and give people a more comprehensive/top-level understanding of what the business is up to.</p> <h4><strong>Responsiveness</strong></h4> <p>Marketing and PR teams have the freedom to be more responsive and spontaneous.</p> <p>This is ideal for jumping on trends and industry news.</p> <h4><strong>Entrepreneurial behaviour</strong></h4> <p>Teams have a clearer idea of who is responsible for what.</p> <p>Developers have increased scope, which allows BAU to be more impactful on customer experience and product development.</p> <p><img src="https://assets.econsultancy.com/images/0007/4754/scope.jpeg" alt="scope" width="237" height="212"> </p> <h4><strong>Education = satisfaction</strong></h4> <p>Education about new channels and other areas of the business leads to higher job satisfaction.</p> <p>Newly gained skills improve efficiencies within the business but also expand individual job roles. Staff want progression.</p> <h4><strong>More satisfied customers</strong></h4> <p>With more channels open, and more time dedicated to hearing from customers, companies are delivering more.</p> <p>Customers are in turn more satisfied, more engaged and more likely to provide repeat business. </p> <p><em>For more on the people and processes of digital transformation, read the following:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67797-digital-transformation-five-key-tenets-of-a-digital-leader">Digital Transformation: Five key tenets of a digital leader</a></li> <li><a href="https://econsultancy.com/blog/67248-the-a-z-of-digital-transformation">The A-Z of Digital Transformation </a></li> <li><a href="https://econsultancy.com/blog/67183-an-inspiring-digital-transformation-case-study-travelex">An inspiring digital transformation case study: Travelex</a></li> </ul> tag:econsultancy.com,2008:BlogPost/67795 2016-05-08T23:00:00+01:00 2016-05-08T23:00:00+01:00 The best APAC digital marketing stats from April 2016 Ben Davis <h3>31% of WeChat users have made purchases via the platform</h3> <p>We start with a <a href="http://www.mckinsey.com/industries/retail/our-insights/how-savvy-social-shoppers-are-transforming-chinese-e-commerce">McKinsey survey</a> of Chinese ecommerce.</p> <p>One of the most interesting parts of the wide-ranging study was <a href="https://econsultancy.com/blog/67490-10-things-you-didn-t-know-about-wechat/">WeChat</a>. Of the WeChat users surveyed, 31% had initiated purchases on the platform - double the proportion of the previous year.</p> <p>Purchases were defined as either those in WeChat, through brand accounts, or in other apps, but beginning with a link from WeChat.</p> <p>The survey engaged more than 3,100 people across a range of income levels and household locations.</p> <p><img src="https://assets.econsultancy.com/images/0007/4509/Screen_Shot_2016-05-02_at_16.48.20.png" alt="wechat purchases mckinsey" width="615"></p> <h3>Chinese multiscreeners spend more than mobile-only users</h3> <p>The same McKinsey survey found that consumers who use two or three connected devices spend more online than mobile-only consumers. 17% to be precise.</p> <p>These multi-device users also shop in 29% more categories and interact 14% more with businesses through social networks.</p> <p><img src="https://assets.econsultancy.com/images/0007/4510/Screen_Shot_2016-05-02_at_16.46.50.png" alt="multidevice ecommerce" width="615"></p> <h3>Two thirds of APAC consumers find ad tracking to be 'creepy'</h3> <p>90% of APAC consumers would consider using <a href="https://econsultancy.com/blog/67130-seven-ways-publishers-are-addressing-ad-blocking">ad blocking</a> software.</p> <p>67% find ads using tracking technology to be "creepy", according to <a href="http://go.unruly.co/l/50182/2016-04-28/66l55p">Unruly's latest study</a>.</p> <p>3,200 people were surveyed globally about online video advertising. Other findings include:</p> <ul> <li>86% of Southeast Asian consumers say if an ad feels fake they lose trust in the brand.</li> <li>This figure was 77% amongst Australians.</li> <li>65% of Australians find pre-roll ads off-putting.</li> <li>Pre-roll deters only 45% of consumers in Southeast Asia.</li> </ul> <h3>64% of Chinese marketers want to work with integrated agencies</h3> <p>31%, though, would prefer to employ specialist agencies in each discipline.</p> <p>These are the findings of <a href="http://rthree.com/en/insight/detail/0dfJSzK.html">R3's Agency Scope study</a>, based on interviews with 400 senior marketers.</p> <p><img src="https://assets.econsultancy.com/images/0007/4512/market_trends_china_agencies.jpg" alt="china agencies" width="615"></p> <h3>Indian ecommerce to grow 700% by 2020</h3> <p>Gross merchandise value (GMV) of B2C ecommerce hit $16bn in 2015 and will rise to $102bn in 2020.</p> <p>In the slower-growing B2B market, GMV was $300bn in 2014, estimated to rise to $700bn by 2020.</p> <p>B2C growth is, fairly obviously, fuelled by an increase in online shoppers, up from 20m in 2013 to an estimated 140m in 2018.</p> <p><a href="http://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-tmt-e-commerce-in-india-noexp.pdf">The study</a> comes from the Confederation of Indian Industry (CII).</p> <p><img src="https://assets.econsultancy.com/images/0007/4515/Screen_Shot_2016-05-02_at_18.17.34.png" alt="indian ecommerce users" width="615"></p> <p><em>The figure above includes only B2C ecommerce, excluding online travel and classifieds. *estimated numbers</em> </p> <h3>77% of Australian marketers see email as their number one channel</h3> <p>An <a href="http://www.eiuperspectives.economist.com/sites/default/files/EIU_Thepathto2020_PDF.pdf">Economist and Marketo survey</a> of 500 marketers' ownership of customer experience revealed the following about Australia &amp; New Zealand.</p> <ul> <li>86% of marketers globally say they will own the end-to-end customer experience by 2020.</li> <li>In Australia, 77% of marketers see email as their number one channel. This was just 47% in Europe.</li> <li>Social media is the number one channel in New Zealand, ranking third in Australia.</li> <li>Only 13% of Australian &amp; NZ respondents were focused on bringing in new skills, versus 20% in the rest of the world.</li> </ul> <p>N.B. These findings were reported in <a href="http://www.digitalmarket.asia/2016/04/marketers-will-seize-the-customer-experience-by-2020-study/">Digital Market magazine</a>, but I couldn't find them in the survey itself (I presume Digital Market was briefed with additional data).</p> <h3>Digital to overtake traditional media consumption in China</h3> <p>Chinese consumers will spend more time on digital channels than traditional media in 2016, a first in the country.</p> <p><a href="http://www.emarketer.com/Article/Digital-Overtakes-Traditional-Media-China-TV-Consumption-Holds-Strong/1013881">eMarketer's data</a> predicts the average Chinese adult will spend 6hr 6mins a day consuming media, including an average of 3hrs 5mins on digital platforms.</p> <h3>31% of APAC marketers are currently using native advertising </h3> <ul> <li>69% of marketers and advertisers in APAC say they do not currently have a specific <a href="https://econsultancy.com/blog/67044-is-native-advertising-the-answer-to-ad-blocking">native advertising</a> strategy in place.</li> <li>According to the data, 31% of marketers are currently using native advertising as part of their marketing mix.</li> <li>39% recognise the opportunity and are working towards a strategy.</li> </ul> <p>This data comes from <a href="http://content.warc.com/read-native-advertising-trend-or-future">Warc's survey</a> of 300 advertising and marketing professionals across 16 APAC markets.</p> <p><img src="https://assets.econsultancy.com/images/0007/4517/Screen_Shot_2016-05-02_at_19.06.47.png" alt="native ad use in apac" width="615"></p> <h3>14 APAC markets will see online video revenue grow 300% in next five years</h3> <p>Revenue in these markets is expected to grow from $13bn in 2016 to $35bn in 2021.</p> <p>China's annual growth rate of 22% has a big impact on regional growth, accounting for 76% of all online video revenue in Asia Pacific by 2021.</p> <p>Japan, Australia, Korea and India will have an aggregate 17% share of APAC online video revenue.</p> <p>The <a href="http://www.media-partners-asia.com/pdf/research/Asia_Pacific_Online_Video_Distribution.pdf">Media Partners study</a> showed that online video will account for 22% of APAC adspend in 2020 ($22bn), up from 15% in 2015.</p> tag:econsultancy.com,2008:Report/4124 2016-05-03T11:44:00+01:00 2016-05-03T11:44:00+01:00 People and Process: Agile working, collaborative tools and cloud-based marketing tech <h2>Overview</h2> <p>Econsultancy's <strong>People and Processes Trends Briefing </strong>explores the increasing ways companies are organising their marketing and highlights the challenges faced by delegates attending Econsultancy's roundtable-based <a href="https://econsultancy.com/events/digital-cream-london">Digital Cream London 2016</a> event.</p> <p>The People and Processes roundtable was sponsored by <a href="https://www.censhare.com/en">censhare </a>and moderated by digital consultant Danielle Sheerin.</p> <h2>What you'll learn from this report</h2> <ul> <li>Understand how business see themselves along the process of digital transformation, and how working in agile ways is helping them transform.</li> <li>The differing definitions of 'agile' among businesses.</li> <li>The drivers towards, and benefits of, transformational agility.</li> <li>Barriers to transformation.</li> <li>Helpful tools and resources and case studies for teams working towards transformational agility.</li> </ul> <h2>Digital Cream</h2> <p>An exclusive invitation-only event, Digital Cream is an opportunity for senior client-side marketers to learn from each other about the latest best practice, what's working and what's not.</p> <p>Digital Cream takes place around the globe throughout the year - <a href="https://econsultancy.com/events">see our upcoming events</a>.</p> <h2>Digital Transformation</h2> <p>Want more information on <a href="https://econsultancy.com/training/digital-transformation">digital transformation</a>?</p> <p>Digital is changing faster and more profoundly than anyone could have predicted. Doing what you've always done is no longer an option.</p> <p>The specialist Digital Transformation practice within Econsultancy helps companies accelerate their journeys to digital excellence. We address the four vectors of change:</p> <ul> <li>Your <strong>strategy</strong> - where should you be going with digital?</li> <li>Your <strong>people</strong> - what teams, talent and skills do you need to get there?</li> <li>Your <strong>processes</strong>- how should you change the way you work?</li> <li>Your <strong>technologies</strong>- what platforms, software and data strategy will serve you best?</li> </ul> <p><strong>Talk to us about an initial, no-cost consultation. </strong>We'll discuss your toughest challenges, outline our methodology and come back with a proposal.</p> <p>Contact our Digital Transformation Team on transformation@econsultancy.com or call:</p> <ul> <li> <strong>EMEA:</strong>+44 (0)20 7269 1450</li> <li> <strong>Americas: </strong>+1 212 971 0630</li> <li> <strong>APAC: </strong>+65 6653 1911</li> </ul> <p><iframe src="https://www.youtube.com/embed/2q_lWLm5qtg?wmode=transparent" width="560" height="315"></iframe></p> tag:econsultancy.com,2008:BlogPost/67789 2016-04-28T10:08:17+01:00 2016-04-28T10:08:17+01:00 Five companies using branded top-level domains (TLDs) & why Ben Davis <h3>Background to new gTLDs</h3> <p>The background to new TLDs makes fairly heavy reading. Most of the problems have surrounded new generic TLDs (gTLDs), for example Amazon's application for '.book'.</p> <p>These new gTLDs were introduced in 2012 and 2013, and you can read all the heavy detail about the bid process on <a href="https://icannwiki.com/New_gTLD_Program">ICANN's Wiki</a> (ICANN is the Internet Corporation for Assigned Names and Numbers, a private not-for-profit).</p> <p>Incidentally, the most bids were put in by Google (101), Amazon (79) and Microsoft (11), but non-tech giants like L'Oreal were also in the mix.</p> <h4><strong>Brand protection</strong></h4> <p>Some of the controversy around new gTLDs has involved concern from brands that want to protect their name from appearing in the URL of new domains, particularly unflattering ones.</p> <p>Would brands feel pressured to buy 'brandname.word', to stop others from taking them?</p> <p>Believe it or not, one of these controversial new domains is .sucks, which is charging a premium for brands to snap up their own brand.sucks.</p> <p>You can read the full background on that interesting gTLD in <a href="http://marketingland.com/controversial-sucks-domain-almost-here-121505">a detailed Search Marketing Land article</a>.</p> <p>Or go to its website and view <a href="https://www.registry.sucks/">the most bizarre video on the internet</a> with Ralph Nader.</p> <p><img src="https://assets.econsultancy.com/images/0007/4403/Screen_Shot_2016-04-28_at_09.42.26.png" alt=".sucks" width="450"></p> <h4><strong>Is the fuss dying down?</strong></h4> <p>According to World Trademark Review it appears that, despite this controversy, brands have not changed their domain enforcement strategies.</p> <p><a href="http://www.worldtrademarkreview.com/Blog/detail.aspx?g=7259ed76-544c-49fa-b7d5-4ba0d075c51a">Its study</a> published in April 2016 showed that 60.5% of companies haven't changed policy in light of new gTLDs.</p> <p>The question is, does that mean brands are unprepared? That's a debate for another post.</p> <p>Let's look at some brand TLDs, a slightly different kettle of fish.</p> <h3>Brand TLDs </h3> <p>Brand TLDs seem more straightforward and represent <a href="https://icannwiki.com/Brand_TLD">34% of new TLDs</a> applied for. Companies can't snap up brand TLDs just to sell them on.</p> <p>There was initial uncertainty about search performance but Google has since confirmed that there's no reason to fear brand TLDs, though they don't offer inherent <a href="https://econsultancy.com/reports/search-engine-marketing-seo-digital-marketing-template-files">SEO</a> advantage.</p> <h4>1. BMW</h4> <p>BMW celebrated its centenary by looking forward to the next 100 years on this website at next100.bmw.</p> <p>Here, the advantage is pretty much solely one of brand image, but brand TLDs do allow companies to create lots of second-level domains for campaigns and products.</p> <p>To some extent, this makes marketing easier. Think finance.bmw, etc. - shorter and more memorable URLs.</p> <p>Consumers can often be confused by TLDs (do I need .com or .co.uk?), so this brand TLD may also offer assurance to the customer.</p> <p><a href="http://www.next100.bmw/en/index.html"><img src="https://assets.econsultancy.com/images/0007/4393/Screen_Shot_2016-04-28_at_08.26.06.png" alt="bmw next 100" width="615" height="320"></a> </p> <h4>2. Barclays</h4> <p>In May 2015, <a href="http://www.newsroom.barclays.com/r/3162/uk_banking_first__barclays_launches_unique_branded_domain">Barclays announced</a> TLDs of .barclays and .barclaycard.</p> <p>Online banking isn't carried on this new brand TLD, but it's easy to see how security could be one advantage of using .barclays.</p> <p><a href="https://www.home.barclays/"><img src="https://assets.econsultancy.com/images/0007/4395/Screen_Shot_2016-04-28_at_08.26.47.png" alt="barclays tld" width="615" height="288"></a> </p> <h4>3. Sky</h4> <p>Sky is a good example of a business creating shorter, memorable URLs by using a brand TLD.</p> <p>For example, q.sky currently redirects to <a href="http://www.sky.com/shop/tv/sky-q/overview/">http://www.sky.com/shop/tv/sky-q/overview/</a>.</p> <p>Whether this will just be for marketing purposes, like custom URLs, or will eventually be used as the main domain remains to be seen.</p> <p>Other companies are using brand TLD redirects, too. Bing redirects search.bing to bing.com.</p> <p><img src="https://assets.econsultancy.com/images/0007/4397/Screen_Shot_2016-04-28_at_08.29.58.png" alt=".sky" width="615" height="320"> </p> <h4>4. CERN</h4> <p>CERN is another example of a new TLD being used for branding purposes, but also presumably to offer simple flexibility when it comes to creating second-level domains in future.</p> <p><a href="http://home.cern/"><img src="https://assets.econsultancy.com/images/0007/4398/Screen_Shot_2016-04-28_at_08.31.09.png" alt=".cern" width="615" height="319"></a></p> <h4>5. Google</h4> <p>Our final example is a bit of a meta one.</p> <p>Google has registry.google, where it promotes access to new gTLDs that it has successfully applied for.</p> <p>Other registars can partner with Google here, to sell these domains.</p> <p>Look down the list and you can immediately see things of interest to many brands, whether or not they have their own brand TLD already.</p> <p><img src="https://assets.econsultancy.com/images/0007/4396/Screen_Shot_2016-04-28_at_08.31.26.png" alt=".google" width="615" height="320"> </p> <p>For more advantages of using a branded TLD, read: <a href="https://econsultancy.com/blog/66191-brand-tlds-five-potential-benefits/">Brand TLDs: five potential benefits</a>.</p> <p><em>Know more about TLDs than me? - why not leave a comment below.</em></p> tag:econsultancy.com,2008:BlogPost/67773 2016-04-22T11:30:00+01:00 2016-04-22T11:30:00+01:00 10 funky digital marketing stats from this week Ben Davis <h3>YouTube ROI is higher than TV in 77% of campaigns</h3> <p>This research was widely reported this week; Google's latest attempt to lure TV ad spend to <a href="https://econsultancy.com/blog/66784-five-tips-to-maximise-time-spent-with-online-video/">online video</a>.</p> <p>A meta-analysis of 56 case studies across eight countries showed that advertising on YouTube delivered a higher ROI than TV in 77% of cases.</p> <p>Looking in-depth at 17 of these case studies, 80% were recommended to more than double spend on YouTube ads.</p> <p>The research was carried out with a range of partners, the following carried out by Kantar Worldpanel using media mix modelling:</p> <ul> <li>Mars UK ran a Snickers campaign in summer 2015. Testing the mix of TV and online video activity in order to maximise in-store sales, the results showed that YouTube delivered more than double the ROI of TV for each pound spent.</li> <li>Danone’s French campaign for Danette desserts saw an ROI two to three times higher for YouTube than TV for every Euro spent. 7% of the sales were attributable to the online video activity.</li> </ul> <h3>Brits are 63% more likely to open an email with an emoji</h3> <p>Mailjet's research was conducted on a 15,000 strong sample of its database.</p> <ul> <li>In the US, the average increase in open rate from <a href="https://econsultancy.com/blog/66399-can-emojis-in-page-titles-increase-google-ctrs">emojis</a> drops to 43%.</li> <li>'Face with tears of joy' was the most successful emoji, generating an open rate of 41%.</li> <li>Average open rates fell by 11% among French recipients, showing that perhaps emoji are not the answer to every problem.</li> </ul> <p>At time of going to press, I don't have the raw data or methodology for this study, so although it's an interesting topic, you'll have to watch this space for a link.</p> <p><em><img src="https://assets.econsultancy.com/images/0007/4203/word.png" alt="word of the year" width="500"></em></p> <p><em>It would seem 'face with tears of joy', the Oxford English Dictionary word of the year, may also be an effective marketing weapon.</em></p> <h3>Cost of poor content</h3> <p><a href="http://www.shotfarm.com/product-information-report/">Shotfarm</a> has produced a report on product information, looking at how product content affects online sales.</p> <p>The survey of 1,500 consumers revealed the following:</p> <ul> <li>78% of consumers said product information is very important when making a purchase decision.</li> <li>42% of consumers have returned an online purchase in the past year due to poor product content.</li> <li>56% of consumers have abandoned their online shopping cart due to poor product descriptions or low-quality images.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4215/Screen_Shot_2016-04-22_at_08.37.54.png" alt="shotfarm product report" width="615"></p> <h3>33% of marketers admit company culture is a barrier to digital investment</h3> <p>Econsultancy's <a href="https://econsultancy.com/reports/marketing-budgets-2016/">Marketing Budgets Report 2016</a>, sponsored by Oracle, includes some fascinating data from the seventh year of the study.</p> <p>72% of the 500 marketing and agency respondents said they would be increasing digital marketing budgets in 2016. This was slightly down on last year (79%).</p> <p>Other findings include:</p> <ul> <li>16% are decreasing paid media spend, compared to 9% in 2015.</li> <li>33% of marketers admit company culture is a barrier to digital investment.</li> </ul> <p>The chart below shows how 2016's respondents seem to be less confident in a number of areas including working towards cohesive customer experiences, breaking down internal silos, achieving boardroom buy-in and innovating.</p> <p>On the brighter side, 54% are planning to recruit more people into their digital teams next year (compared to 51% last year).</p> <p><img src="https://assets.econsultancy.com/images/0007/3923/Screen_Shot_2016-04-13_at_17.43.14.png" alt="marketing spend plans" width="615"></p> <h3>Under 35s account for 55% of mobile searches</h3> <p><a href="http://www.slideshare.net/bingads/seizing-the-mobile-opportunity-uk-mobile-insights-2016">Data from Bing search trends</a> have revealed the following changes:</p> <ul> <li>The number of questions asked on smartphones is growing by over 20% year-on-year.</li> <li>Under 35s account for more than half of smartphone queries (55%).</li> <li>Over 50s continue to dominate searches on tablets (40%).</li> <li>Women currently make six in 10 searches on smartphones and tablets.</li> </ul> <p>The chart below shows which categories see more search share on mobile.</p> <p><img src="https://assets.econsultancy.com/images/0007/4213/Screen_Shot_2016-04-22_at_08.08.15.png" alt="bing insights" width="615"></p> <h3>86% higher spend on social advertising year-on-year in Q1 2016</h3> <p>Spend on social advertising jumped 86% year-on-year (YoY) in the first quarter of 2016, boosted by a 122% rise in mobile ad spend, according to the latest quarterly global <a href="http://www.kenshoo.co.uk/digital-marketing-snapshot/">data from Kenshoo</a>.</p> <p><a href="https://econsultancy.com/blog/67020-why-instagram-should-be-the-channel-of-choice-for-marketers/">Instagram ads</a> and Facebook Dynamic Product Ads helped push social spend in the first quarter higher than that of Q4 2015, atypical for the season.</p> <p>In paid search, much of the 13% YoY growth for the quarter came from a 77% increased spend on smartphone ads.</p> <p>98% higher spend on Product Listing Ads (PLAs), generated three times more clicks than a year ago. </p> <p><img src="https://assets.econsultancy.com/images/0007/4212/Screen_Shot_2016-04-22_at_07.54.44.png" alt="social spend" width="500"></p> <p><img src="https://assets.econsultancy.com/images/0007/4211/Screen_Shot_2016-04-22_at_07.55.16.png" alt="search spend" width="500"></p> <h3>eBay.co.uk Spring spending</h3> <p>eBay Advertising sent me some stats about purchases on eBay.co.uk in May 2015, when it seems home improvement is in order.</p> <ul> <li>8m purchases were made in the Home, Furniture and DIY category - three purchases every second.</li> <li>Shoppers made 26 searches per minute for “sofa” in May 2015.</li> <li>1.4m were made in the Garden and Patio category, when searches for “BBQ” peaked at over 300,000.</li> </ul> <h3>Smartphone sales growth 101% in UK, tablets just 6%</h3> <p>The <a href="https://www.uk.capgemini.com/news/uk-news/imrg-capgemini-e-retail-sales-index-online-retail-sales-growth-rate-doubles-in-first">IMRG Capgemini e-Retail Sales Index</a> looks at ecommerce in the UK. Its Q1 2016 results revealed the following:</p> <ul> <li>15% YoY growth for Q1, over double the growth in Q1 2015 (excluding travel).</li> <li>Smartphone sales growth (101% YoY) far outstripping that of tablets (6%).</li> <li>Average basket value (ABV) increased from £77 (Q1 2015) to £81 (Q1 2016).</li> <li>The Home and Garden sector saw its highest increase (26%) since February 2014. </li> </ul> <h3>Mobile responsible for majority of traffic to top 25 UK retail sites</h3> <p>The majority of visits to the top 25 UK online retailers in Q1 2016 came via mobile (2m) as opposed to desktop (1.6m). A pattern also seen in Q4 2015.</p> <p>Very.co.uk recorded the highest mobile share (72%), followed closely by New Look (70%) and Argos (69%).</p> <p>Ebuyer.com recorded the highest desktop share (62%) followed by Ocado.com (60%) and ASOS (52%).</p> <p>Traffic sources were as follows:</p> <ul> <li>Direct traffic was responsible for 1.6bn visits (a 42% share).</li> <li>The second highest source of visits came from organic search, 1.05bn visits (29%).</li> <li>Referrals from third party websites (top two being eBay and Hot UK Deals) accounted for 709m visits (19%).</li> <li>Paid search accounted for 134m visits (4%).</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4204/Screen_Shot_2016-04-21_at_21.51.48.png" alt="retail traffic q1 2016" width="615"></p> <h3>Ecommerce in Italy</h3> <p>Casaleggio Associati <a href="https://www.casaleggio.it/en/e-commerce/%20">presented</a> Italian ecommerce figures for the tenth year to the Milan Chamber of Commerce.</p> <p>2015 turnover is estimated at 28.8bn euros, putting growth at its highest since 2011.</p> <p><img src="https://assets.econsultancy.com/images/0007/4205/1-Ecommerce-turnover-Italy.jpg" alt="italian ecommerce" width="615"> </p> tag:econsultancy.com,2008:BlogPost/67769 2016-04-21T15:19:06+01:00 2016-04-21T15:19:06+01:00 The rise of Amazon's private labels shows the perils of not owning your data & customers Patricio Robles <p>As <a href="http://www.bloomberg.com/news/articles/2016-04-20/got-a-hot-seller-on-amazon-prepare-for-e-tailer-to-make-one-too">detailed by</a> Bloomberg's Spencer Soper, Amazon's private label brand, AmazonBasics, has grown to more 900 products.</p> <p>And its expansion appears to be driven by insights the mega-retailer has gleaned from its troves of sales data:</p> <blockquote> <p>At first, AmazonBasics - launched in 2009 - focused on batteries, recordable DVDs and such. Then for several years, the house brand 'slept quietly as it retained data about other sellers’ successes', according to the report.</p> <p>But in the past couple of years, AmazonBasics has stepped up the pace, rolling out a range of products that seem perfectly tailored to customer demand.</p> </blockquote> <p>Soper points to Rain Design, maker of a best-selling laptop stand, as an example of Amazon's strategy.</p> <p>Last year, AmazonBasics began selling a similar laptop stand, but at half the price, cutting into Rain Design's sales.</p> <p>Unfortunately for Rain Design, because Amazon's stand doesn't infringe on the company's patent, there isn't much it can do.</p> <p><img src="https://assets.econsultancy.com/images/0007/4156/laptopstand.png" alt="" width="861" height="493"></p> <p>According to Chad Rubin, who runs ecommerce firm Skubana, Amazon "know[s] what people want and they're going to mop it up."</p> <p>By Skubana's count, Amazon is increasingly doing just that, and added nearly 300 products to its AmazonBasics portfolio last year alone.</p> <p>Beyond AmazonBasics, the 800-pound gorilla of online retail has launched a number of private label apparel brands, including Lark &amp; Ro, Scout + Ro, Franklin &amp; Freeman and Franklin Tailored.</p> <p>These are now estimated to sell more tham 1,800 different products, putting Amazon directly in competition with former partners like Gap and Eddie Bauer.</p> <h3>Amazon's advantages</h3> <p>While sellers like Rain Design hope that customer loyalty will help them weather the competition from AmazonBasics, Amazon has a number of major advantages.</p> <p>The biggest: it owns the data.</p> <p>That gives Amazon the ability to identify the ripest opportunities, including those that others don't even know about, and attack them with a level of insight that competitors don't have access to.</p> <p>Amazon also owns the customers and customer experience, making it more difficult for sellers like Rain Design to build the kind of loyalty that might encourage customers to pay significantly more for a product.</p> <p>Finally, Amazon has the wherewithal to experiment and fail quickly. As Soper notes:</p> <blockquote> <p>Amazon's size gives it an advantage over so-called direct-to-consumer startups such as mattress seller Casper and eyewear merchant Warby Parker because Amazon can experiment with one product rather than having to build out an entire line. If an item flops, it's no big deal.</p> </blockquote> <h3>It's not just ecommerce</h3> <p>Of course, Amazon isn't the only company that's seeking to take advantage of ownership and control of data and customers.</p> <p>Publishers are increasingly being pushed to <a href="https://econsultancy.com/blog/67691-content-creators-it-s-time-to-abandon-yourself-to-facebook">abandon themselves to Facebook</a>, which is working to get more and more publishers to publish their content directly on Facebook using <a href="https://econsultancy.com/blog/67544-facebook-to-open-up-instant-articles-what-publishers-need-to-know">Instant Articles</a> and <a href="https://econsultancy.com/blog/67603-what-marketers-need-to-know-about-facebook-s-livestreaming-push">Facebook Live</a>. </p> <p>Other popular social platforms, <a href="https://econsultancy.com/blog/67686-is-pinterest-using-how-to-pins-to-exploit-third-party-content-for-seo-benefit">like Pinterest</a>, are also taking advantage of the willingness of third parties to publish content outside of the channels they own and control.</p> <p>Obviously there's no guarantee that platforms will eventually look to cut out these publishers – Snapchat's <a href="http://digiday.com/publishers/lessons-snapchats-retreat-editorial-content/">retreat from original content</a> reveals numerous challenges in doing this.</p> <p>But the rise of Amazon's private labels and the impact it is having on Amazon sellers like Rain Design serves as a powerful reminder to <em>all</em> companies: if you don't control your data and customers, you can't really control your future.</p>