Battle of the Brands: Austin City Limits Music Festival 2016

This month, Austin City Limits (ACL) music festival took over the city of Austin for two entire weeks, bringing with it a great variety of talented artists, a runway-like display of festival fashion and most of all, a vast array of brands looking to gain further consumer buy-in by being present and accounted for during the festival.

Its not every day that Willie Nelson graces the stage just hours after Kendrick Lamar and Radiohead delivered their performances all on the Samsung stage, and it’s this last part, (the fact that it all happened on the Samsung stage) that highlights the branding competition at play during the festival.

From the seven sponsored stages donning such names as Honda, Cirrus Logic, Tito’s and Homeway among others, to the latest transportation, payment and dating apps, brands battled it out the past two weekends to leave lasting impressions on consumers.

Here are our top picks for the coolest brands on display this weekend:

  • RYDE and Venmo’s Pony up campaign – Who doesn’t like a free ride? Even more, if that free ride happens to come in the shape of a car that is wrapped in brown faux fur and has a Mohawk? RYDE, an Austin-based startup transportation service that uses branded electric carts to transport patrons around downtown Austin, teamed up with Venmo these past two weeks to shuttle ACL Festival attendees to and from the festival, in a pony-like car that read “Pony Up on Venmo.” This eye-catching whip was seen all across town and spread the message to consumers that Venmo and RYDE are the way to go.
  • Fasten’s and Bumble’s airplane banner displays – It’s a bird, it’s a plane! Ok, so maybe it was a plane circling the festival grounds, yet a great way for Bumble and Fasten to send the message out to consumers that their apps are out there to help schedule a ride home and perhaps meet that special person at ACL. If you’ve ever been to ACL, you know the big concerts get crowded really quick, so much so, that sometimes you have to turn your head to the sky to either find your friends’ flag or better yet find an advertisement that stands out above the rest.
  • ACL’s own Golden Porta Potty – An oldie but a goodie, ACL’s Golden Porta Potty has been making the rounds for two years now and is the topic of conversation before and during the festival. This is just what it sounds like, a Golden Porta Potty with air conditioning and a golden throne. Before the festival, this porta potty is placed around the Austin area for lucky consumers to stumble upon and find their “Golden” ticket to attend ACL. During the show, attendees are encouraged to look around the festival grounds to find the lucky porta potty wristbands for their chance to win access to the Golden Porta Potty for the rest of the festival.

ACL may be classified as a music festival but deep down the festival also provides the perfect stage for a battle of the brands, where one by one, brands play up their presence to get the consumer to pay attention to them.

Shop.org Retail’s Digital Summit: Seen and Heard From The Shop Floor

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Last week, the Ketner Group team arrived in Dallas at Shop.org Retail’s Digital Summit to talk shop with top ecommerce innovators, retailers and influencers about what lies ahead for the remainder of 2016 and the start of 2017.

As anyone in the business can tell you, the summit is viewed as the kick-start to the holiday season, the opening ceremony if you will, to the busiest, yet most profitable time of year for retailers. During the months following the summit, retailers will look to put all of their technology implementations into play and verify which of their implementations are tough enough to withstand the holiday grind.

Seen on the shop floor
Ketner Group’s clients were in full force at this year’s summit showcasing their latest offerings and news:

Convey showcased how their technology helps retailers transform the most frustrating part of a customer’s experience, delivery, into one that delights at every turn. Through predictive, adaptive and proactive data analysis, Convey helps retailers unify the carrier ecosystem, identify problems before they happen, and facilitate changes on-the-ground, in real time. Convey also discussed upcoming integrations to their platform as well as shipping and delivery trends that will impact the 2016 holiday season.

DynamicAction released its Retail Index – Fall 2016 which found that as retailers head into the critical holiday shopping season, they continue to rely too heavily on their promotional calendars, with an 85% increase globally in the percent of orders using a promotion YoY (Jan.-Sept. 2016 vs. 2015). Other key findings from the report indicated additional challenges for this holiday season, as retailers continue to struggle to acquire new customers and convert first-time buyers into repeat shoppers. On a more positive note, retailers are beginning to make changes to increase operational efficiencies and shore up profit margins. While product profits are basically flat YoY, they’re up 6% for the quarter, compared to 2015.

Edgecase showcased how the company is helping retailers and brands like Lancome, Sur La Table and Crate and Barrel improve their online product visibility.

Kibo, the complete omnichannel commerce platform, announced the acquisition of Baynote, a cloud-based personalization platform. With this acquisition, Kibo will continue to strengthen its commerce solutions with industry-leading personalization technology that quickly enables retailers and brands to provide individual buying experiences.

Mirakl highlighted how the Mirakl Marketplace Platform makes it easy for operators to onboard vast numbers of vendors in a single platform to drastically increase their product selection, competitive prices and a superior shopping experience.

Heard on the shop floor
While innovative technology applications were the center of attention on the expo floor, these shiny new applications also opened the door to deeper conversations of best practices to remember while integrating a new technology.

From personalization technology, intelligent fulfillment, data analytics and in-store technology, one thing remains true: the overall experience should be at the forefront of the implementation. For example, key lessons heard around the expo floor for deploying a technology solution included:

  • Taking a research-based, vertically integrated approach to implementing technology within your product and services strategy.
  • In terms of disruptive technology, remember the function is just as important as the form – the look and feel of that technology must flow seamlessly and solve a pain point.
  • Being open-minded to new technology. For example, technologies like virtual reality will allow retailers to reimagine the way they should work on their next project.
  • Understanding new ideas and methods through data analysis.
  • Remembering that technology is just an enabler to achieve a greater result. It takes a deep understanding of your brand and customer to make all touch points flow seamlessly.
  • Keeping in mind the importance of great people and culture within your organization.

The conclusion of Shop.org Retail’s Digital Summit signals the opening bell for the start of the 2016 holiday sales season for retailers. With several technology solutions ready to make retailers’ processes flow seamlessly, retailers will be ready to deliver the goods to their consumers.

Austinite, Longhorn, and new Ketner Group Intern, Sara Shaw

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Photo provided by Sara Shaw

This blog was provided by Ketner Group intern, Sara Shaw

 

My name is Sara Shaw and I am a senior Public Relations major in the Stan Richards School of Advertising and Public Relations at The University of Texas at Austin. I am also pursuing a minor in Spanish as well as a certificate in the Business Foundations Program. I grew up in Austin and, naturally, love it so much I decided to stay for school, which is easily the best decision I’ve ever made.

I am the youngest of three children, so I have had my fair share of older-sibling-bullying. Too many times did I fall for, “I’ve got a surprise,” and end up with a bar of soap in my mouth. Talk about a surprise. As an “adult” this has made me a great team player and very capable of laughing at myself.

I became interested in public relations in high school because of my love for stories. More specifically, the stories of people around me. What people were passionate about, what motivated them, why they loved what they did. I was good at creating relationships with people and getting them to tell their stories. I loved that PR combined the art of story-telling and business strategy. So with the click of the mouse I declared my major and haven’t looked back since.

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Photo provided by Sara Shaw

This past summer, I had the incredible opportunity of interning for Southwest Airlines in Dallas. I was the communications intern for their Network Operations Control Department. Imagine a command center at NASA, but these guys are dispatching nearly 4,000 flights a day. I was lucky enough to be on their communications team and learn more about the airline industry than I ever imagined.

When I’m not in the office or in the classroom, I love to explore my hometown and discover the next great taco place. I recently went to El Chilito on Manor Road, and highly recommend the Cherrywood breakfast taco.

As a senior in college, I often get the question, “What are you doing once you graduate?” I’ll tell you now that I have no idea. However, I am very excited to be with Ketner Group this semester and get hands-on experience in a more “traditional” PR setting. Everyone here has already taken Daniela and me in as part of the team and we are eager to keep learning from everyone!

 

 

 

A #RetailRoundUp Featuring KG Clients in the News

ketner-group-clients-in-the-newsAs public relations professionals and people who just generally love our jobs—seriously, working for Ketner Group is amazing!—we are always thrilled to help our clients secure valuable media coverage to share with their teams and their customers. The past couple of months, we’ve been excited to hear what our clients have to say about a bunch of hot news items including Amazon Prime Day, back-to-school, Macy’s closings and Walmart purchasing Jet.com.

Amazon’s Prime Day 2016

Amazon’s Prime Day 2016 was one for the books. The second annual global shopping event experienced an all time high in global merchandise sales. Amazon surpassed all expectations by more than 60% in worldwide sales and more than 50% in the U.S., as shared on CNBC. As the single biggest day in company history, Amazon offers its members a one-of-a-kind experience unlike any other. In Retail Dive, ThoughtWorks Retail states that Amazon truly hooks its customers on being a valuable “member” by offering a very a personalized experience.

What does this mean for marketplace sellers? Should they compete with the eCommerce leader or join the opportunity to increase sales? Our client 360pi noted in Retail TouchPoints that, “Amazon marketplace seller deals dominated last year’s Prime Day event,” and was estimated that twice as many small business were expected to participate in this year’s event. 360pi was also featured in Internet Retailer, Ecommerce-Journal and TWICE.

Dynamic Action also shared their thoughts in the WWD article, “Retailers Counterpunching Amazon Prime With Sales of Their Own.”

Walmart/Jet.com

If you haven’t heard already, Walmart is on track to accelerate online growth and expenditures by purchasing eCommerce retailer Jet.com Inc. for an estimated $3 billion. Wal-Mart Stores Inc. plan to maintain distinct brands and offerings, continuing to focus on the company’s Everyday Low Price strategy. Will this move give Walmart the competitive edge they need to compete with Amazon? Jenn Markey, VP Marketing at 360pi offers insights in RIS News as to what this means for the retail industry, stating that this acquisition will give Walmart “significant online data capacities and insights,” while moving away from retailers’ head-to-head pricing wars. The retail industry will continue to shift toward assortment and product differentiation strategies. 360pi also shared their thoughts on the subject in Apparel Magazine and MarketWatch.

ThoughtWorks Retail was quoted in The Washington Post on the subject, Dianne Inniss was skeptical that Jet and its promise of low prices could do much to help Walmart steal market share from Amazon: “Amazon has been moving away from price as a differentiator in favor of seamless convenience and deeper integration of its products and services into customers’ lives.” They also commented on the subject in Internet Retailer, Fierce Retail, Retail TouchPoints and Marketing Land.

Mirakl similarly mentioned Amazon in their thoughts on the purchase. In WWD, Adrien Nussenbaum, U.S. chief executive officer and cofounder said a WalMart deal to buy Jet.com would be “a clear endorsement of the marketplace model, where third-party sellers offer products on a retailer’s site. Amazon’s success with this model has put a ton of competitive pressure on Wal-Mart.” Our client Kibo Commerce also shared their thoughts on the story in Mobile Commerce Daily.

Macy’s Store Closings

It was announced at the beginning of August that Macy’s plans to close 100 of its underperforming department stores as an effort to greater connect with their customers. As a store with strong brand recognition and following they cannot continue to operate in its current form. In RIS News, ThoughtWorks Retail innovation strategist Dianne Inniss offers insights as to how Macy’s plans to move forward in their current model shift. “Macy’s can be no more in its current form. The brand can survive but the current model cannot…Macy’s need to fundamentally rethink how they manage their technical and business architectures in order to be more nimble, responsive, engaging and relevant to the needs of today’s and tomorrow’s customers.”

In the same article, Mirakl’s Adrien Nussenbaum agreed, “Macy’s is an iconic retailer with a long history of success, and one of many victims of Amazon. In the same week that Jeff Bezos pockets roughly $800 million personal dollars, Macy’s is forced to suffer a tremendous physical retail loss.”

Mirakl and ThoughtWorks were also quoted in Chain Store Age and ThoughtWorks’s opinions were shared in Internet Retailer.

Back-to-School

With summer ending, wallets are emptied from travels and consumers are looking for back-to-school savings more than ever. How do retailers compete for consumer dollars and break through the online retail impact? ThoughtWorks Retail offered solutions in The Baltimore Sun to get customers in the door and turn them into a loyal customer. “The key is to find opportunities to build trust, to build affinity and to create habits.”

In “Promotions, E-Commerce Seen Denting Back-to-School Sales,” in WWD, Dynamic Action also commented on the subject.

We look forward to watching how the current retail model evolves with the help of our awesome clients and their groundbreaking technologies. Stay tuned for more client news as the busy fall retail season continues.

New Intern on the Block: Daniela Ramirez

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Photo provided by Daniela Ramirez.

This blog was provided by our intern, Daniela Ramirez.

Hello everyone! I’m Daniela Ramirez and I’m one of the new Ketner Group interns, it’s nice to e-meet you! I am currently in my final year at The University of Texas at Austin studying public relations. It’s hard to believe that I am a senior (cue the nostalgia) and already in my last two semesters of undergrad. Looking back as a curious freshman, I wasn’t exactly sure what I wanted to do with public relations or the type of job I wanted to work in following graduation. Through previous internships and courses, I have been able to develop a trajectory and carve a more focused track. These experiences have led me to develop a more strategic outlook and make the most of my four years at the best school in the world (Hook ‘em!).

Having worked in a variety of communication and public relations roles in the beverage industry, music business working with niche, reggae-type artists and bands as well as non-profits, I have been able to widen my scope of knowledge and skills. I’m excited to work with the amazing team at Ketner Group and continue to develop my B2B communication skills, and not to mention, learn about some pretty cool retail technology! Having only been with the team for a short time, I already feel so welcomed and truly feel like a valuable asset.

Now, a little bit about myself. I’m from a small town near Fort Worth, Texas called Kennedale – maybe you’ve heard of it? That’s why I was so excited to move to Austin and really live in a place that I haven’t experienced before. I love everything about Austin and the energy that it offers; I don’t plan on leaving the city scene anytime soon (sorry, Mom!). I’m all about experiences and living in the moment. You can often find me seeking out the next place to try brunch, attending a concert in town or going to an improv comedy show. I love to meet new people and learn about their life. That’s what really intrigued me about studying public relations; it’s a discipline that’s all about sustaining relationships through authentic dialogue. It’s a field that’s conducive to learning and exploring new interests and allows you to build an arsenal of skills. I love diving into different industries and learning how they operate, hence the range of my internships. Overall, I’m an extrovert and love to surround myself with good company. I’m excited for the semester ahead and spending my time with Ketner Group. As a senior, I’m anxious as well as excited for what’s ahead, while ironically wanting time to slow down at the same time.

Looking forward, I hope to work in the agency world so I can continue to gain varied experience in one industry and widen my scope of knowledge. I can already see that interning at Ketner Group will make my public relations undergrad experience memorable and one-of-a-kind, and I am very excited for the wonderful opportunity!

Influencer Insights: Paula Rosenblum

A Ketner Q&A with Paula Rosenblum, Co-Founder and Managing Partner at RSR Research

As we enter the start of the holiday shopping season, what technology trend(s) do you see most impacting the field?

Cloud, obviously. But that’s not holiday season only…it’s a trend that’s moving around the industry. Oddly, it seems more vendor-driven than retailer-driven, but retailers do seem to be starting to embrace it. And price comparison shopping is only growing in power.

What are your go-to resources for staying up to date on retail and hospitality trends?

I subscribe to a ridiculous number of publications, both B2B and B2C. The Wall Street Journal reportage has improved, Bloomberg has Shelly Banjo, who is a great source of accurate reportage, Reuters has Phil Wahba, Smartbrief is a good content aggregator and I receive several of those. I also read Twice, Advertising Age (that’s a really good one, actually) and Forbes. My friend Walter Loeb is my best source for department store related information. He’s also my role model. He’s 91 and still going strong. I want to be like Walter when I grow up!

What would you most like for people to understand about Retail Systems Research?

We don’t do any competitive intelligence whatsoever. We are all about market intelligence and understanding broad trends currently happening in the retail industry today. We try not to look too far into the future, since there are too many things that once seemed impossible that suddenly become possible. We are the most pragmatic, objective and practical people we will find, and we’re a fascinating blend of talents.

What’s the best piece of personal or professional advice you’ve been given?

Be fulfilled, be happy, and be kind. Above all, strive to be fulfilled in yourself, not by things. And remember, it never costs a penny to be kind.

What do you do for fun?

I’m an amateur photographer, and love to go out shooting with a long lens. I also still love spending time down in St Croix where I can snorkel and visit with my friends, the fish! In a month or two, I’ll love driving around in my convertible in Miami as well. Right now, I’m hunkered indoors because it’s so bloody hot and muggy!


About Paula Rosenblum

Paula Rosenblum is co-founder and Managing Partner at RSR Research and is widely recognized as one of the industry’s top retail technology analysts. She was selected as one of the “Top 50 Retail Influencers” in 2014 and 2015. She also writes a weekly blog for Forbes. Previous to her 12 years as an analyst, she spent over 20 years as a retail technology executive and CIO at companies including Hit or Miss, Morse Shoe, Domain Home Fashions and others. Paula received her MBA in 1991 from Northeastern University, with a major in management of High Technology firms and was nominated to the Beta Gamma Sigma honor society. She’s active in a variety of organizations supporting human growth and development, and has been involved with the RetailROI charity since its earliest days.

Retail Season is Here and Shop.org is Around the Corner

Image via http://retailsdigitalsummit.nrf.com/

Retail season has arrived. From now until spring, our calendars are filled with the hottest events and busiest days in retail. We jumped into the fray last month with back to school campaigns and returned from Labor Day to kick things into high gear with Shop.org prep. This year, Shop.org is Sept. 26-28 in Dallas, only a three-hour drive up I-35, and our team is excited to check out the show along with a number of events taking place throughout the show. Here’s our roundup of can’t miss Shop.org happenings:

Retail Innovation Lounge Dallas
Ketner Group is thrilled to serve as a media sponsor for Retail Innovation Lounge Dallas, taking place Sept. 26-28 at The Dallas Entrepreneur Center, a short shuttle ride away from Shop.org. The event will bring together leading retail executives and retail technology innovators for three days of keynotes, panels and networking.

Ketner Group Clients at Shop.org
In addition, a number of Ketner Group clients will be attending and exhibiting at Shop.org. You’ll find Convey, DynamicAction, Edgecase, Kibo and Mirakl on the expo floor. For more information on their exact location, check out the Shop.org exhibitor list, here, and if you’re interested in meeting with one of our clients, let us know.

Can’t Miss Keynotes and Sessions
There are number of exciting keynotes and sessions planned for Shop.org. We’re especially looking forward to the keynotes, “JC Penney and Transforming the Customer Experience – An Insider’s Look” and “Digital Retail’s Fast Track: Virtually There With AR/VR” featuring speakers from Sephora and Google.

We’d love to see you in Dallas this month. Please reach out if you’re interested in grabbing coffee to catch up or talk about your company’s PR strategy.

What the Shift in Store Experiences Means for PR

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The Apartment by the Line in Los Angeles. Credit Courtesy of Apartment by the Line/Hanna Tveite

I was reading T Magazine the other day and fell head over heals for an article by Michael Rock, “When the Shop Looks a Lot Like Home.”

I’m a woman for whom space and tangible experiences are of the utmost importance. So after reading Rock’s article, that discusses the trend of stores offering an experience that simulates your actual life, I was ready to book a trip to New York.

If you’ve been reading about the trend for stores to offer experiences, you’ll be familiar with Rock’s examples. Want to buy a new shower? Try it out before you purchase at the Pirch showroom in SoHo. Want to cuddle up on a cozy couch while you lust over clothes with a Basquiat hanging out behind you? Go visit The Row’s Upper East Side townhouse.

The Pirch Showroom. Photo courtesy of Pirch
The Pirch Showroom. Photo courtesy of Pirch

Rock provides a deep dive into the history of this trend. Starting with the Sears catalogue and extending to the Internet as the ultimate big box store, we have at our fingertips everything and anything we may need. It is only a click away. So what then, is our need for stores? Rock answers, “What the shop can offer, however, are things difficult to achieve online: an intimate relationship with things, a haptic appreciation of materiality, a personal interaction with a sympathetic helper, an experience that contextualizes objects, a place to socialize with like-minded connoisseurs and, most importantly, a respite from the avalanche of too much stuff.”

He continues, to my jubilation, “A visit to the store may revert back to John Wanamaker’s original dream: shopping as a form of education and cultural edification. Maybe we learn best in the places that we feel most comfortable in: places that feel like our own living room, only nicer.”

So this got me thinking, if stores are evolving to feel like our own living rooms, does this mean anything for PR?

As a B2B technology provider for retailers, your strategy ultimately aligns with your clients’ strategies. If you’re not offering a solution to their problems and you’re not talking their language then you’re not gaining new clients and you’re not staying in business. The press has a similar model for business, if they can’t speak to the retail community’s experiences, their stories don’t resonate.

So what’s resonating?

To me, the trend of stores offering unique experiences aligns with the more general trend of authenticity. Everyone from marketers to your younger sister is talking about a desire to hear real stories, for honesty and uniqueness. We’re seeing this play out in fashion, as designers reflect street wear in recent collections, and in the trend for more personalization in products like Netflix.

To offer an authentic story for PR, consider first what makes your brand unique. What is different about you? What do you value? Ideally, your company has an accessible mission, vision and core values available for you to use as a starting point, but if they don’t, think about your own experience with your company. When crafting a campaign, make sure your language and your story align with these authentic qualities. So, if one of your company’s values is “innovation,” it makes sense to have a quote from your CEO in a press release incorporate the word “innovation.”

Next, think about how you can authentically engage with press who are reporting on ongoing stories. Recently, Ketner Group facilitated some replies for our clients in a RIS News story on Amazon’s “Project X.” The reason we were successful in having our clients’ opinions picked up is that each client uniquely responded to the story, in a way that was authentic to their experience and their brand.

As convenience continues to become a top priority for mass-market brands like Amazon or Wal-Mart, smaller retailers and the community in general will desire more authentic experiences to balance it out. By placing authenticity front and center to your PR campaign, you’ll be able to better appeal to prospective clients and the media.

Don’t Forget to Vote for Your Favorite SXSW Panels!

OK kids, this is a BIG week! It’s the last week to vote for your favorite SXSW 2017 panels. In case you missed the memo or just need a friendly reminder, this Friday, September 2 is the last day for public voting and commenting for the panels you’d like to see as part of the 2017 programming.

If you are having trouble deciding which panels to vote for, let your friends at Ketner Group help you out! This year, our clients at DynamicAction and Convey have thrown their hat in the ring to speak on some incredible retail and brand-focused panels. And because we love retail tech so much, we’ve also listed several additional panels from our friends at RetailMeNot, Bazaarvoice and eyeQ. Check out our recommendations below:

The Fight for Fit in Retail

In this session, four female thought leaders will discuss how the concept of “fit” has evolved from the early days of ready-to-wear clothing to custom clothes-on-demand. From clothing to cosmetics, we’ll explore how retailers need to keep up with changing styles, sizes and gender identities, the changing role of sales associates and how technology (magic mirrors, virtual reality, mobile apps, body imaging) is changing the way shoppers find the perfect fit – forever!

How to Protect Customers from Delivery Disaster

Rising customer expectations are forcing retailers to build complex carrier networks with disparate experiences and capabilities. How can retailers use data to unify the experience, reduce cart abandonment and boost post-purchase satisfaction? What is necessary to answer customers needs for real-time updates? In this panel, eCommerce leaders will discuss how they are overcoming modern delivery challenges to wow customers.

Understanding Privacy in the Land of Oversharing

In this world of consumer oversharing, the line between public and private content is blurry, leaving brands to navigate a murky gray area of what kinds of consumer-generated content can be repurposed for a brand’s needs. How do the boundaries of the law differ from the ethical guidelines set by industry groups, and what can brands do to protect themselves and the consumers they hold so dear?

Data is the New Black: The Consumer “It” Factor

Brands are living in the age of the consumer, but with smarter insights the age of the savvy marketer is bursting onto the scene. So, how can you harness the power of consumer behavior and data in a way that is discrete, empowering and not….creepy? To remain relevant in the cut-throat world of retail, brands must start to leverage consumer behavior data at scale, and optimize the information overload in new and interesting ways.

Privacy in an Era of Shopper-Aware Machines

Retailers and brands are adopting new technologies to better compete with e-commerce. From responsive signage, to beacons and sensors, store environments are becoming embedded with shopper-aware technologies in response to customers’ demands for easier, more fun, and more engaging shopping experiences. But if these devices are aware of – and responding to – shoppers, does that create new privacy concerns? In this survey of emerging technologies panelists will discuss the privacy implications for shoppers, brands and retailers.

Final 2017 programming will be announced the week of October 17. Click here to check out already announced key note and featured speakers!

It’s High Noon for Retail Loyalty

Clint_Eastwood_-_1960sThe old rules are broken. Look to the horizon as long as you want, there is no tough guy sheriff riding into town with his posse to restore law and order. Parking lots at major chain stores are turning into weed havens as they shutter their doors, from national department stores to niche retailers like Sports Authority. Others are searching for unique ways to increase their foot traffic and customer loyalty, putting car showrooms in clothing stores or bringing booze and bocce to a bookstore. Malls are asking startups to fill the same spaces they used to give away for free to the biggest retailers.

In old Western movies, law and order was always restored by the end because the hero sheriff had the support of the townspeople and was able to outsmart the bad guys. But guess what? This time around, the newcomers have the numbers, and they’re not going anywhere.

CPG Goes Rogue

Subscription services have been shaking up major industries for years now; from music and movies to clothing and video games, pay as you go has been lucrative for retailers and convenient and budget-friendly for consumers. Most of those services simply found a new way to get the same goods to consumers cheaper and more conveniently, and more importantly, a new way to fuel customer loyalty.

Let’s look at our friends at Dollar Shave Club: Razors make you look sharp. But who really cares what the name on the handle says? Four blades or seven, vibrating head or stationary, people just don’t want to worry about bleeding necks or shins, or worse, untimely stubble. Unorthodox advertising has played a part to be sure, but the simplicity of it all has helped Dollar Shave Club enlist 3.6 million subscribers who have sent their old name brand razors packing.

Loyalty to Dollar Shave Club razors is multi-tiered, but at its core it is founded on easier acquisition of new goods and the inconvenience of going back to the old way of buying razors if they opt out of the program. Loyalty is quite literally built into the program, combining the three key pillars of loyalty directly into it: affinity (via quirky ads and branding), trust (the razors are actually good) and habit (they just keep ‘em coming!).

Don’t Talk About It, Be About It

To sell a product, people have to know you sell it, and Dollar Shave Club is hitting the bullseye spots in this arena. Tried and true advertising is more “tried” than “true” today. For example, all of the fastest growing L’Oreal brands share one trait – they don’t advertise. They instead invest those dollars on modern capabilities like search optimization, distribution improvements and reinvestment in R&D. That’s one thing the old westerns always proved: you can talk the talk, but to come out the other side, you better be able to walk the walk. 

The New Six-Shooter for Brands: Data

We all know the power of data, but it has been critically elusive for CPG brands because channel partners control consumer interactions. Direct-to-consumer subscriptions reduce that barrier and make customer intelligence much more accessible. As a direct subscription service provider, Dollar Shave Club owns all parts of customer relationship in a way Big Razor never could, meaning they can optimize their strategy at a much lower cost by analyzing the data their members organically produce.

Getting Shoppers to Remain Loyal to Your Posse

Today, one third of shoppers are buying more private label products, and only 6.5 percent, a new low, hope to return to name brands some day. For CPG, this is momentous. Where emotional involvement with a brand is low, and there is no real product differentiation, customers have no problem getting out of Dodge when an easier, more convenient or cheaper option becomes available.

Loyalty is not a program. It’s not something you get it the mail. It’s earned, and earned again and again at every touch point and opportunity for a customer to find a better alternative. Don’t take it for granted or think that the reason shoppers relied on you before is why they’ll keep coming back. In the Wild West of retail, you can’t wait for the sheriff to arrive. You have to innovate.