Tuesday, August 04, 2015

Permission Marketing: Thoughts On How Social Media Leverage Their Potential On Advertizing

I wrote not so long ago an article about how people were blocking ads on social media, and why it was a threat to the ecosystem. Don't get me wrong, I still believe the same way. But I am a high consumer in Youtube videos, I use to listen to shows and/or music online. And since several months, I am spammed by massive number of commercials. It is nearly impossible to have over 5 minutes of content without a commercial popping out.

Another issue, is that most of the time, it is continually the very same commercial that pops out. It has been for weeks Engie, the new merger between GDF & Suez, but also commerciales about clothing soaps, among others.

I point out two issues:
  • The number of ads proposed, which doom the user experience
  • The fact the threshold effect is reach so fast, as it is the very same commerciales showing on...
Social media and online advertizing was supposed to be the age of customized and rich content, with retargeting technique, and accurate message at the right time. None of that.

In a race to be considered as a key social media company, a lot of global corporations are spending massive amount of money to flood the web with their commercials. They use the same techniques online than for a TV campaign. And that worries me. 

  1. Worries me as a user, because I can't enjoy a good experience
  2. Worries me as a marketer, because I believe we are far from the permission marketing and one to one marketing as it should be done with social media
  3. Worries me for the social media eco system companies like Twitter, Facebook or Youtube needs in order to keep growing and developping their amazing products.
I believe social media have a part of responsabilities, as they are the ones who permits announcers to publish commercials. They therefore should take a good care of their user experiences, because if not, maybe people will turn to other social media.

Monday, August 03, 2015

Movie Review: 12 Angry Men

I recently watched a movie I watched already as a teenager: 12 Angry Men with Henri Fonda. The pitch: a jury of 12 men needs to make a decision on the guiltiness of a young kid who supposely killed his father.

What is interesting in this movie is obviously the way Henri Fonda is able to convince one after anothher every one of the jury based on one simple paradigm: there is a certain doubt about the fact the kid has not killed his father. Henri Fonda is not speaking much to make his points, he actually rather have the others speaking in order to demonstrate they are wrong.

It also shows clearly how paradigm shape the way people make their judgement, far more than actual facts, no matter what they say.

A very interesting movie to watch and rewatch to analyze the whole script and how the debate evolves.

Friday, July 31, 2015

Which Color Shall You Use For Your Brand Logo?

I have previously posted about what the significations of colors were while choosing a template or a logo. Here is another representation of what logos transmit as values to people.

As you can clearly see, companies pick a color for a reason, and the color reinforce the idea and the concept of the company's positioning. Now, obviously, what is interesting is when a company change the color of its logo. It is actually pretty rare to see such a move. It shows clearly how important the color is.

I have seen several clothing brands that changed their brands several time in less than a decade. It obviously create confusion for customers. But as far as I remember, it has been a while I have not seen a company changing their core colors for another one.

Have you some examples? It will be interesting to analyse what happened in these cases.

Thursday, July 30, 2015

Category Management Series: Lean Retailing: When Less Is More

Another very interesting article about lean retailing. Indeed, in the FMCG world the past 2 decades have seen the number of skus and products skyrocketing, in an effort to better suit customers' needs. By segmenting the offer, suppliers tend to believe they would make a better work at fulfilling the needs of customers. Furthermore, the rise of Ecommerce has also helped this trend, as the square meters available to display the offer is not much of a problem.

But that brings two issues:
  • The number of stores and the square meters available for retailers is growing slower than the number of products, causing some issues on how to retail such a large product range.
  • The costs of good sold is exploding, as the complexity of the offer requires more information system, more people to deal with the display on shelves, more merchandising, and more inventory cost (with a higher probability of stock out).
  • As the book the paradox of choice point out, too much complexity while making the purchase decision is causing customers disatisfaction.

It shows well the problem. It exposes how retailers could adapt the Toyota Production System, aiming at a lean process production for cost efficiency purpose. 

"In general, the application of lean approach allows the company to reduce costs, increase efficiency, reduce execution time, reduce waste of all kinds, increase profitability and keep low inventories. It also contributes to customers' satisfaction, improving product quality and increase staff morale."

"According to research carried out in practice, quantitatively speaking, the effects of lean thinking in retail are: increased comparable sales by up to 10 percent, reduced labor costs by 10 to 20 percent, reduced inventory by 10 to 30 percent, and stockouts by 20 to 75 percent (Lean Retailing: Achieving Breakthroughs in-store profitability, McKinsey & Company). It significantly contributes to improved customer satisfaction. All this, in return, reflects the increased store profitability."

Tuesday, July 28, 2015

L'état du e commerce en France

Un graphique que j'ai récupéré via LinkedIn. Elle permet de voir le niveau de rentabilité et le niveau de chiffre d'affaires réalisés par la plupart des acteurs majeurs du E commerce en France. Il est intéressant car on peut voir qu'une grande partie des E commerçant en France ne sont à date pas rentable. Une situation qui va devenir difficile à garder car la croissance du marché commence sérieusement à ralentir. On le voit notamment via la vente de Grosbill par Auchan.

On voit également qu'en terme de vente, il y a 2 très gros acteurs qui se détachent: vente-privee.com et Cdiscount. Par ailleurs, la réussite de vente-privée reste remarquable, aussi bien en CA qu'en rentabilité.

Un autre point intéressant pour moi, c'est pour les acteurs de la grande distribution. Aujourd'hui, la présence en ligne et la part de marché sur le e commerce va devenir déterminante pour des groupes comme Carrefour et Auchan, il va être intéressant de voir les investissements qui seront mis par ces 2 groupes, par ailleurs internationaux (donc peut être plus impacté par Amazon que d'autres acteurs).

Egalement, Houra, le dernier des e commerçant pur sur l'alimentaire. Certainement qu'il y aura du chiffre d'affaires à aller chercher dans un future proche pour la filiale du groupe Louis Delhaize.

Maintenant, un grand absent: Amazon, américain, mais qui serait intéressant à analyser via ce spectre.

Monday, July 27, 2015

Costco outperforming pure players in the E commerce competition

Costco is really a fascinating company...

The Internet Retailer Top 500 E-commerce sites ranking has been released. The purpose of this ranking is to study which are the best performing e-merchant websites.

For this study, Dynatrace aggregates scores on four subcategories to create an overall score. Each retailer’s ranking in each subcategory is also reported in the index. Here are the four subcategories:

  • Mobile: tests pulling up the mobile page across mobile carriers, 
  • Last Mile: test running from real end-user machines running in homes and businesses across the U.S. 
  • Web: test hitting the home pages of each retailer from network nodes
  • Transactions: tests which search for a product, add it to a cart and checkout. 

 Each ranking is created by examining:
 1) Response Time: how fast to execute that transaction.
 2) Availability: how successful were we at executing the tests.
 3) Consistency: how much variability there was in the results.

What has made the headlines is the fact that Costco has been ranked n°11 of this website. Even though Costco has been pushing its online strategy, Costco is a hard core retailer focusing on operational executions to deliver sales growth. But what is interesting on this ranking is to notice how much operational execution is key to online success. Hence, Costco, by having an efficient e-commerce website, is able to maximize customer experience (even by proposing a minimal one), and therefore to out perform some other pure players, that we might have expected to be above Costco. Moreover, Costco out performs Apple!

Efficient operational execution remains key in retailing, no matter where.

Sunday, July 26, 2015

Amazon To Open Brick & Mortar Drive In Stores

I announced it earlier this year: 2015 will be the beginning of the real fight between brick & mortar companies and e-merchants. And this battle will be engaged by 2 tycoons of each sides, Amazon & Walmart. While Amazon announced better than expected profits & sales for the third quarter, French website Lefigaro reports Amazon recently bought in Sunnyvale some real estate to launch a drive in  concept.

It will allow people to pick up their deliveries in car. It looks kind of the concept of drive in that succeed so well in France. The good thing about the concept, it will allow Amazon to sell its whole wire range of products, including probably groceries.

Amazon is already testing a store in Purdue University, allowing students to pick up their orders.

Beyond the drone hype, I highly believe Amazon is testing a key concept that will probably allow him to get an edge on competition.