STORES Magazine - May 2011 - (Page 103)

CONSIDER THIS / NRF NEWS Highlights from Innovate 2011 T Spiraling Campaigns he traditional Internet marketing paradigm is linear, Wet Seal CIO Jon Kubo told attendees of NRF’s Innovate 2011 conference: Eyeballs enter at one end and buyers exit out the other. Today, however, the model is spiral; potential customers pivot among social, in-store and online touchpoints, so “We design campaigns to take advantage of this spiraling.” He illustrated this point by describing Wet Jon Kubo Seal’s Model Search campaign, which was rolled out in three phases. The winners received a $500 Wet Seal gift card and an interview with the Ford modeling agency. The process began with the posting of “teaser” videos of the previous year’s winners to the Wet Seal Facebook page, followed by the launch of the contest “how-to” video on YouTube. Prospective models download and complete an application form that must be physically delivered — along with a photo — to a Wet Seal store. This netted approximately 100,000 store visits. In the second phase, Wet Seal sent Flip cameras to 100 semifinalists, who took and posted to YouTube videos of themselves modeling Wet Seal apparel. The field is then halved based on the number of YouTube views. In the final phase, videos of the finalists are posted on Facebook. To be eligible to vote for the winner, you have to be a Wet Seal fan and download an application that posts your vote on your news feed. “During the week of YouTube viewing we acquired 70,000 fans,” Kubo said. “During the voting phase on Facebook we acquired another 50,000.” Brian Beitler, CMO for David’s Bridal, agreed. “We sell wedding invitations along with the dresses and one of our highest ROI vehicles is print advertising.” Print “is the medium you love to hate,” said RadioShack CMO Lee Applbaum. “Paper costs keep going up, fuel costs keep going up, so CPM keeps going up. But if you drop a circular, traffic goes up.” J Print is not Dead ust how digital-centric is the immediate future of marketing? Less than you might think. “We’re a pure digital play,” said Anna Fieler, vice president of marketing for Tiny Prints, “so you’d think we would be totally focused on digital marketing. But our customers live in the real world, and we have to pay attention to it. And we’ve found that some of our highest ROI marketing” is in print. WWW.STORES.ORG panel of venture capitalists discussed the impact near field communication (NFC) will have on mobile commerce. Joshua Goldman of Norwest Venture Partners said NFC is “not just a payment option. If you come into the store with your phone, you can be identified and tied in with your whole history. This really begins to affect the power of how a retailer can relate to an in-store shopper.” Aileen Lee of Kleiner Perkins Caufield & Byers predicted that most high-end smartphones will be NFC-enabled within two years, “and the fact that you could just walk by a POS and swipe your phone will be exciting and fun for the consumer. I used to work in physical retail, and I’ve seen how many sales are lost because people see a line at the cash wrap and just walk. People are waiting to see how it’s going to work and what it’s going to cost, but whoever does it first and does it well is going to get a real brand boost from it.” Peter Fenton of Benchmark Capital said the real change “is that we’re beginning to see payment as a form of communication. He advised retailers to “rethink the payment mechanism — how you send an invoice and what’s inside it. Some of what’s going on, inserting deals like Groupon into bills from stores, cable companies and so on, opens up some pretty interesting terrain for innovation.” Goldman agreed. “It allows you to personalize the experience,” he said. “Amazon knows who you are from the moment you land on the site but, in most cases, a store doesn’t. Physical stores have been at a disadvantage, Peter Fenton and NFC can help overcome it.” STORES / MAY 2011 103 A Payment as Communication http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - May 2011

STORES Magazine - May 2011
Editor’s Page
President’s Page
Retail People
Supply Chain
Getting Closer to Customers
Workforce Management
Customer Satisfaction
Customer Rewards
Human Resources
2011 Software Sourcebook Guide
Website Security
Divisional Update
NRF News
Point of View
Retail Industry Calendar
End Cap

STORES Magazine - May 2011