Using Shazam to Engage Consumers

On a radio ad this morning, I heard something I have never heard before.  A retailer was promoting a sale of watches and didn't start trying to say as many numbers and words possible within their 30 seconds.

Instead, they gave the premise of the sale (30% discount on designer watches) and directed people to use Shazam to be linked to a page with the full details.

Shazam is normally used to find out the name of songs.  Hold your phone to the speaker and after a couple of seconds it will tell you the name of the song and artist, show the YouTube video and link out for you to buy it on iTunes.

But this usage is great innovation as marketers constantly struggle with two major issues;

1. Having too much to say
2. Getting consumers to go beyond the ad

This addresses both issues.  By using Shazam, they don't have to ramble on about the details of the offer.  The page they are linking to can do that.  The app can recognize the digital signature of the ad and direct people accordingly.

They can measure the success of the radio ad in directing consumers to their website (which hopefully includes a deal specific landing page)

Other mechanisms like QR codes and URL shorteners also do a great job of accomplishing this.  The starting point is different (poster or tweet), but the resulting engagement is the same.

There will be an issue with people getting their phone out, starting the app and tagging the ad which may result in some missed opportunities.  But they are still way farther ahead than rattling off all the deals and hoping people go to their store or website later.

Invest in your Customers, not Discounts

The amazing thing to me about Black Friday, is why it's called Black Friday.  This annual Thanksgiving shopping frenzy typically marks the first day of the year in which traditional retailers are in the black.

Think about that.  That means they run in the red, or a deficit position, for 11 of the 12 months of the year.  What an amazingly stressful position to be in.

Deep discounting with fantastically reduced prices on key items drive the crowds on Black Friday.  Retailers are willing to take the hit on some televisions and computers to drive sales on other regularly priced products leading up to Christmas.

Love the concept, but the race to the bottom and the hysteria of the crowd is a proposition of diminishing returns.

What if instead of writing off those loss leading products, retailers invested in their customers?  Mark downs will always play a role in competing with store traffic, but think of the potential power even a small portion of that money being directed into customer loyalty / incentive programs would have.

Here is what I would do with that money.

1. Mobilize the shopping experience.  Integrating your inventory into your online / mobile experience is a must have as the smart phone has become an integral part of people's lives.  Make it a part of the in-store shopping experience.  Near field communications (NFC) and Global Positioning Systems (GPS) let us know where customers are.  Provide incentives to customers to use an app that will allow for push notifications alerting them to new information (sales, complimentary products, other customers) to enhance their shopping experience based on their physical location.  Capture their behaviour to learn what works best (and worst) in improving the experience and driving future sales. 
2. Close the transactional loop.  What makes online retailers so good at providing product recommendations and customizing offers is that they have access to all of the customer behavioral and transactional data.  This could be easily replicated for the in-store experience.  Smart shopping carts and mobile could consider in-store location, time spent in an aisle, near a category, what products are placed in the cart, and what products are purchased.  Tie individual customers to those activities through membership cards (some grocers like Sobey's are incredible at this) to create a full behavioral profile.
3. Tailor offers.  This behavioral data is critical, and if you don't have it you are not going to be engaging your customers.  Use the data to understand the needs of your customers.  Segment them, design programs for them - and market to them as individuals - like Amazon does online.  Deliver offers through mobile, email and through direct mail for certain segments.

These programs require investments from different budgets and organizationally could provide problems.  The opportunity here though is two-fold.  You can create loyal customers who don't need discounts to drive them to your store and you may be able be in the black in month one, not eleven.

Adopting Mobile; Lessons from the Taxi Industry

On my way to an appointment recently I was taking a moment to look at a building and a taxi approached me.  On it's way it gave me that familiar, brief and subtle nudge - hoping that I was in fact looking for them, and in need of a ride - a honk.

Jerking me from my momentary trance, the honk made me look, but no I didn't need a ride and I looked away.

It got me thinking about how other people and industries try to get consumers to notice their brands or services.  By shouting out their message to create awareness and hoping that we need them or have any interest.

Like the rap of the tongs on the bbq grill by the hot dog vendor, or the shaking of the cup by the guy on the street looking for change these obtrusive signals are not to far off from traditional advertising.

Shout loud, shout often and hopefully people will come to you.

The taxi industry (barring the aforementioned driver) has adapted quickly however to the use of mobile and if they can, anyone can.

Independent mobile services like Hailo let users connect with a cloud based dispatch system, that through GPS allows drivers to see available fares and claim them for their own.

Not to be overly facetious, but what a novel concept and what a rewarding experience for the customer that every industry should heed as a lesson.

Using a  mobile app to hail a taxi lets the customer identify their need on their terms, through their device, when and where they want it.  Payment, thanks and future notices all go through the device.  As a set of basic principles these should be standard to marketers and embraced through mobile.

Think of how this can change grocery shopping.  The roles of the weekly flyer driving you to your retailer and brands promoting new products on TV have well-valued, long-standing traditions that continue to drive sales.

Mobile however let's retailers know when a customer is coming to the store, when they are at the store, where they are in the store and the length of time at a particular location.  The power of this information partnered with functionality like meal planning, making your grocery lists and the checkout experience have tremendous potential to deliver the same value (and sales) to grocers.

Advancements in analytics and customer segmentation have brought customization and personalization to direct channels like email and direct mail, but there is still room for more.  Focusing on the stated need by the consumer supported by behaviour allows for more meaningful and relevant engagement.  Not shouting.

Employee Tracking, Big Brother or No Big Deal?

I recently had a chance to visit a someone at another company and noticed something while waiting in the lobby.  For any employee to get in or out of the office they had to use their passcard.  Accompanied by this was a small screen beside the door that showed the name, title and picture of the person.

Initially, it freaked me out.  I stopped someone who came through and asked him what he thought about it.  He said it was great because he could find out where anyone was at any time.  I then asked him about the flip side of that coin (everyone can find you at any time) - he had to agree.

To develop customer segmentation and create meaningful campaigns I rely on activity data like this all the time.  Without knowing who viewed what page, clicked on what add, posted what tweet or opened what email I have very little ability to effectively market to people.

We have the option to hide some of our internet activity, unsubscribe from communications or make our tweets private - but do we not enjoy the customization and relevancy that is delivered to us because of it?

Consumer behaviour dictates the type of programs, offers and engagement opportunities we put into market - so why not apply the same thinking to employee behaviour?

Smarter decisions about office layout, team dynamics and interactivity can be made with something like this in place, and I think it's just the beginning.  Network monitoring could tell when my computer was overheating and in need of a replacement.  Using alerts and GPS to tell me when someone was back in their office rather than stalking or waiting would save a lot of time.

Screenshot from Gmail for an ad offering Wedding Photo services alongside an email for what else?

Every office has a passcard system and network monitoring, it would be naive to think that the information wasn't available.  Seeing it in use is definitely provocative and reminds me of the first time Gmail Ads were tailored to me based on the content of a particular email.  Troubling at first, but once I understood what it was for and how it was being used I welcomed it.