Different shoppers, different prices

What was a dream for offline retailers is actually common practice for online ones - to adjust price for each customer. How to do it? Cookies trace each computer's online navigation history - keeping a record of the sites you visited, the words you searched, where have you clicked, what's the computer you are clicking from, where is it located... If consumers don't want this to be known (apart from computer and location, that's unavoidable), they should actually clean their cookies once in a while (a very simple process) - but if they don't do it, then, this information is then used by online stores to actually taylor made their offering to consumers. Retailers may then personalize price, offerings, promotion, communication,... It is an incredible and powerful feature - a marketeer dreamland!

If you want to know some real examples, just follow http://blogs.smartmoney.com/advice/2012/06/26/how-online-retailers-personalize-prices/

Mobile payments

I already hinted at it here and there - I firmly believe mobile payments (the ability to make offline purchases through your cellphone) will strongly lift-off during this decade. I don't think it will be dominant (I think large chunks of population will refrain to use it for some time, because of security concerns, price of using it - especially from business side - or difficulties in adapting to the technology.) but I think it will capture an important chunk of the payment business. And it will do so based primarily on convenience, and then, maybe, on cost (if apps are able to compete with cards on fees levered to businesses). Still, I don't believe that the main drivers will be the individual apps that now thrive (like Starbucks'), but the integrated solutions that will allow multiple usage across multiple businesses and will integrate online purchases with the on the go offline's (solutions like Square, depicted in the video in link below, and PayPal's - and that might be why I just bought some eBay shares...). For some businesses, this represents an opportunity (if they want to be cool and technologically trendy) and a threat (if they don't adapt fast enough and don't bet in the winning solutions). Because, this will also be a battle of industry standards (like VHS vs Beta, or Visa vs Mastercard) - nobody believes there will be room for more than 1 or 2 global integrated mobile payment systems...

http://www.latimes.com/business/la-fi-digital-wallet-20120624,0,7698751.story

Clustering social media usage

Aimia, a firm that works on the loyalty management area, recently published a clusterization of American social media users that might be quite useful. They worked by identifying 2 axis (on trust = participation on social media; and control = exposure) and then clustering consumers to it, highlighting 6 big groups of consumers.

Personally, I must say I am not totally convinced by this study - primarily because I think there is limited differentiation between the 2 axis (is trust that different to control that generates a different dimension of behaviour? I don't think so), and that is very visible on the differences between the 6 groups as charted in the summary you may find in the article (they are primarily based on volume of consumption and not substancial differences around different patterns). I would prefer differences based on time of usage (during the time), duration of interactions, number of media used, brand engagement frequencey. Still, I think it is a good clusterization effort, and it might be worth giving it a look.

http://socialmediatoday.com/node/564409

Brand Name

The name of our brand or company is key - it serves the double effect of communicating the purpose, market and product of the company, but also of inspiring potential consumers. It is not only key - it is titanic! As so, if you are working at the early stages of a start-up, maybe it is useful to think on how to brainstorm its name - have a look at the article in http://www.entrepreneur.com/article/223694

Look out for social commerce

What if we combine social media and e-commerce? The result is what Mark Zuckerber said would be the next big thing around digital - it seems he might be right. Just think on the power of word-of-mouth for buying services and products. If companies can leverage recommendations of friends they trust and know seek similar products with easy and accessible shopping, it's potential might be huge.

If you want to know some of the ideas going around, please, have a look at http://mashable.com/2012/06/04/startups-social-commerce/

Global brands becoming more important

A financial times article about the 100 biggest brands highlights the importance of having a strong, well-known brand - size, awareness, quality perception, clear and aligned values seem to be protecting the biggest brands against recession in turbulent times. And this is carving a gap between big, global brands and smaller, country or regional ones. You can read the main conclusions in IE maketing blog in http://marketing.blogs.ie.edu/archives/2012/06/global-brands-still-make-the-difference-during-a-downturn.php?utm_source=feedburner


- enviado de dispositivo móvel.

A thing you should remember on price

If you keep adding value to a product, through a great product that is spot on a consumer need, incredibly attractive packaging, strong sensorials, technology that provides over-reassurance to consumers, alignment to brand values, then, price becomes more and more inelastic, as people are willing to pay more for it. Naturally, there will always be clusters of consumers who will focus on price, but you have to understand if those are the ones you want to target. Systematically adding value to a product is at the core of business sustainability and growth. Look at Apple. Look at BMW. Look at Gillette.