Today the point of exposure is much closer to the point of purchase.
But we don’t actually want a VR headset and our purchases delivered by drone. We want a mom and pop shop with their personalised CRM…
Deirdre McGlashan, Chief Digital Officer MediaCom at dpulse Zurich.
At the same time we want quick delivery and vast choice. Which local stores can’t cope with, of course.
In marketing we are still in the business of creating desire and showing products and services to potential customers. But the needs are actually still the same!
In 2016 only 8.7% of global sales were via e- or m-business. There is still huge potential but often times brands are disconnected and don’t seize the opportunity.
We should learn from China! On Singles Day $18 Billion were spent within a very short timespan. In contrast, Black Friday ‚only‘ generated $3 Billion. Obviously it’s an advantage to route all business through one single, integrated platform like WeChat. But in the West we can still pick up massively despite our heterogenous environment.
What is media today?
- Shoppable ads now come via Facebook, Google, Pinterest, Instagram, etc. Every piece of media should bcome transactionable these days.
- Social commerce is crucial. Not only are conversations taking place there, also purchases are more and more done here.
- Conversational commerce: Bots are within all major apps like WeChat, Facebook, etc. People are converting 5-10x higher when chatting to bots before! They are looking for more facts before purchasing.
- Trials: Barriers to purchase exist. Trials are a great way to overcome these barriers.
- Online to Offline O2O: In China the customer journey is much more accurately managed than elsewhere. Catwalks are immersive shopping experiences.
What is a shop in the age of Amazon Go?
Amazon chooses their products on display based on data from the website. Is it a shop? Is it media? Is it out of home?
Does a bike store need to sell high fashion? Does it need to transact? Or is it just a place for display and goods are delivered home?
But what is a transaction anyway? We are not emotional about a transaction. If anything we are joyful and happy about a new bike. A transaction today should be seamless, or as with Uber, a payment at the occasion (not the location). Payment should be an afterthought.
Logistics are paramount in efficient ebusiness. Besides Amazon’s centres, other suppliers combine existing infrastructure like telephone boxes and their cabling.
Loyalty: A 2.5% increase in loyalty results in a 30% revenue increase. Order & collect is already 10% of Starbuck’s revenue.
Loyalty cards allow for personalised, i.e. relevant advertising. Free shipping can make a huge difference, e.g. in China’s food delivery vertical.