It’s Hard For Retailers To Embrace New Mobile Marketing Technology


I’ve been engaged in a conversation in a mobile marketing group LinkedIn discussion where people involved in solutions such as mobile coupons are complaining that retailers are intellectually lazy and not looking to embrace new technology.

I argued that most retailers focus on BAU (Business As Usual), working in their business employing strategies and technologies they have used for years, which they understand and can deal with. They do not spend anywhere near enough time working on their business, including strategies to embrace new technologies.

sold outMany retailers have been hurt by one-day deal companies, where they gave up 50% and more in GP in the hope that if they gave great service, they would win new loyal customers. Of course we now know that didn’t work and the only ones that made big money out of it were one-day deal companies. They didn’t have to invest in inventory or carry any risk to speak of.

I’ve presented at a number of conferences on the topic of mobile and location based marketing. What I found really sad was that of all the delegates, the number of retailers at these events could generally be counted on the fingers of one hand.

I’ve been looking at how I could help retailers, particularly in New Zealand and Australia with solutions available today in a cost effective way. I think I have come up with a solution, but its going to take me a fair amount of time and money to deliver.

I will start in the area of Travel and Tourism, largely because they are more focussed on customers who are actively looking for services and new experiences and the industry is used to investing to win new business. Their market is also tough and the traditional business services continue to largely support those who own the systems, ie reservation engines, directories, commissions to tour operators, rather than retailers themselves. These businesses are easier for me to access and easier to quantify direct ROI. Also the individual transactions often have a higher dollar value, so if I can demonstrably increase their cashflow and profit and share in the gain, I can recover my costs more quickly.

I was thinking about how hard it is to get retailers out of the shop to talk to them and from years of calling on owner operator retailers in the past, trying to talk to them in their own environment with customers in store, that’s all but impossible.

So I’m thinking retail readers, if there are any here, and would welcome your feedback on the best way to get in front of you and your peers. The problem is that most of them will never read this. The majority do not attend retail conferences, they don’t even participate in their own main-street organisations. They don’t even do something as simple as co-promote their neighbours. I remember years ago hearing Mark Blumsky (past retailer and Wellington Mayor) talk at the New Zealand Retailers Association conference about how he collaborated with his neighbours by giving away free coffee coupons at the next door cafe to people who bought shoes from him and the cafe gave discount coupons for shoes to their patrons. Leading retailers (because they were at the conference) all talked about it during the lunch and coffee breaks, but I don’t know if a single one of them ever emulated the exercise.

We have amazing free services such as Foursquare and people have probably used one of these apps to check into your store. They may even be your Foursquare Mayor, but you probably don’t even know what Foursquare is.

You need to embrace mobile technology and I want to help. But you’re probably not reading this, so you will have to wait until I have helped some other people first. If you are reading this, leave a comment, connect with me and others who want to see Australasian retailers thrive and grow in this exciting new world. Learn at your own pace, but please step outside of BAU and do something. One little step a day is 365 steps a year and that’s quite a lot.

Consumption 2.0 and Mobile Society


I’ve just read an article by Hugo Garcia of Futures Lab in Portugal in the latest issue of The Futurist. He was outlining how younger people today are more mobile, more focussed on consuming goods, services and experiences, rather than being attached to things and places. One area that he was strong on was the fact that people are now so mobile and keen to explore the world and their environments.

Location becomes far more important because you are continuing moving around as opposed to tied to a fixed location in the world. He said that one example is the trend towards not owning a home, perhaps ever. I always hear talk about how hard it is to get into property, I don’t think it has ever been easy. When we bought our first home (to give ourselves and our children some long term security) we bought in a cheap neighbourhood and at one stage were paying in excess on 20% interest. For a couple of years in the beginning, we went without pretty much anything, just to pay the interest. Today many don’t want to restrict their lifestyle, making it a choice, their choice is to live for today.

The ‘office’ is for many people today, especially knowledge workers, not somewhere we need to be a lot of the time and the cost of maintaining an office, commuting, car parking (you could almost rent a room for the cost of my Auckland City car park). We go to the office when we need to, for meetings, teamwork etc, but otherwise I can be much more productive from my home office.

White BikesHugo talks about shared mobility. This is not a new concept, but certainly one that is coming back with a vengeance. Back in the 1960’s the Provos introduced white bikes that anyone could use. The idea was that you grabbed a bike, rode it to where you wanted to go and left it there for the next person to use. Their concept, same as today was to reduce pollution and traffic congestion and promote community engagement. They were certainly engaged as very quickly the bikes were stolen and repainted, but the idea was very good.

Today carpooling continues to grow, Zipcars, recently purchased by Avis, which is currently being debated as to whether it was an anticompetitive manoeuvre, is an example of car sharing, which in principle makes a lot of sense. People share ownership in boats, holiday homes and other items and many people are travelling around the world using the services of portals like Airbnb. There are loads of companies sprouting up like Whipcar, which lets you rent out your own vehicle when you don’t need it.

Globalisation is also an area that is changing rapidly. I remember reading history books about the great depression and how people moved from town to town looking for work. Mobility today is something far more international and international borders are being crossed continually by people in search of work, whether it is because they can’t find it at home, want a better life, or simply enjoy the itinerant lifestyle. Over a million Kiwis are working and living overseas, while British and other nationalities are moving to New Zealand to work on projects such as the reconstruction of  Christchurch.

Hugo points out there are pro’s and cons. “Unfortunately, some areas may become abandoned because they lack competitive advantages. The war for talent between countries will increase, but regions that offer good living conditions may gain an advantage.

I note again that knowledge workers, one of the biggest industry segments today can often work from anywhere and travel when required. I know many journalists and developers that live in small towns for the lifestyle, but can still perform on a global stage.

This mobile society opens up huge scope for innovation and disruption, particularly with location based services, applications for mobile use, which can support the new mobile lifestyle. Kiwi developers can and are developing applications used globally, despite those that say you can’t be successful unless you are in Silicon Valley, things are changing. The money may be there, but they don’t have a monopoly of good ideas.

If anyone knows about a mobile lifestyle its Kiwis, anywhere is a long way from New Zealand. We know how to travel, we absorb and learn and we love new technology. Where we need help is harnessing our smarts, to help our innovators and entrepreneurs to learn how to scale and think big. That’s a tough ask and I don’t think our Government is doing anywhere near enough to ensure that smart people are able to grow from small concepts to large global enterprises.

I was just asking myself how I suddenly got on my soap box, but then I’m not sure I ever get off it:)

Nestle is tracking you down with Commandoes


Nestle in the UK has come up with a very cool imho marketing campaign. They are putting GPS chips in the wrapping of 6 food bars such as Kit Kats and when they are opened / activated, within 24 hours they vow to track down the chips, send in the commandos to find, and possibly scare the hell out of the people who bought them and give them 10,000 pounds.

This is a very cool use of location based technology that will fire up marketing people and those into location based marketing like me big time. CNET says that this campaign will appeal to men and perhaps they are not usually the target market for chocolate. In this case I suspect sales will go through the roof and while this campaign hasn’t yet gone seriously viral, I’m sure it will. It is also likely to be winning awards as TV cameras from around the world follow the commandos to the lucky people receiving the prizes.

Just as well they are using TVC’s and billboards with NFC and QR Codes to promote this campaign or people will be thinking that a new war has broken out.

Location based marketing is going to play a major role in our lives going forward and those who are in early will reap rewards by standing out from the crowd. This certainly puts a new spin on guerrilla marketing.

So how could you use location based services to grow your unfair share of the market? For more ideas, check out my other blogs at The Future Diaries and SoLoMo Consulting.


My 3 Essentials for the US Road Trip


My Thrifty Rental

I’m going to go into more detail continuing from my previous US road trip blogs, but I want to start with the 3 items that were critical to the trip. Actually it should be 4 because the first thing is you can’t do a road trip without a vehicle. I booked an SUV with Thrifty Car Rentals, online. I have to admit some trepidation with this because they were less than half of the price I had been quoted by a number of New Zealand travel agents. I needn’t have worried. These guys were super professional from start to finish and I highly recommend you use them. Even with a queue we were done with the paperwork in about 15 minutes. We were then told to take our pick from a variety of Fords and Jeeps. We chose the Ford Explorer in the picture because it had tinted windows to hide prying eyes from the fact that we had all our luggage on board much of the time.

So back to my list:

  1. Car Navigation. I downloaded USA maps on to my TomTom GO LIVE 820 before we left. For a long trip the cost of renting car nav is probably more than buying one. I didn’t realise I could have also downloaded live services, which would have been awesome and solved some of the problems I had along the way, but nevertheless, our trip would not have been possible without TomTom. One lesson I learned in setting it up was that the file was way too big to go on the device, but when I put a SD Card in the slot it installed so easily I was worried that I had done something wrong. I hadn’t, it just worked. Grateful thanks to TomTom. It guided me to all the places I needed to go (I changed the voice to American, Kiwi and Australian didn’t really cut it with names like Lake Ponchtrain)
  2. My iPhone. I will go into detail in upcoming blogs about all the apps I used on my iPhone and why, largely because there were no single apps that could tell me what I needed to know about attractions, accomodation, food etc. This is great for the development community, but if I was’t a geek, we would have missed out on so much and probably have been dissapointed with our ability to meet our bucket list expectations. Not only the apps, but also the ability to stay in contact with family at home, using a combination of voice and data apps including Facetime, Skype and Voxer.
  3. A USA SIM Card. We spent about 2 hours in New Orleans getting a local SIM Card. Thanks are required to the team at Keep N Touch on Canal Street who were awesome. Our first trek into town was to Riverwalk Mall, thinking it should be easy to get a SIM card but the two mobile shops there could help us, but they only sold mobiles and accessories. Someone in the mall told us to go up Canal and there would a store there which could help us and they were right. The whole team from the store at Keep N Touch rallied around us for a $50 prepay card from H2O for my iPhone. First they had to take a micro SIM out of one of their phones to see if my phone was locked, then set up an account for me, then help me get it working. $50 got me unlimited calls throughout the USA, unlimited text messaging throughout the USA and 2GB of data! It worked pretty much flawlessly everywhere we went, while my wife’s Vodafone mobile had coverage less than half of the time.

I’m going to write a lot more about mobile and location based apps in upcoming blogs, but basically these were the essential elements without which we would not have enjoyed our trip half as much and you would do well to do the same as we did. The other item I will mention is that we have a service on our Orcon telephone and Internet account (I haven’t had a good run with them, but this one feature was great) giving us free calls to the USA for up to an hour at a time including US mobiles. Once we had the SIM set up, our children were able to call us on mobile, within the constraints of the time zones and we used it a lot.