2 posts categorized "Paco Underhill"

03/30/2010 Really, Connect Everything

We talk a lot about the importance of connecting social media to customer service or to other real people working at a company. But in reading a report out from Paco Underhill's Envirosell it's clear that connecting needs to pertain to more than just social media.

The latest report on holiday shopping in NYC in 2009 showed that 88% of people visiting a store also visited that store's Web site. 75% said going on line helped them shop at the store while 26% said that they'd visit the site to continue shopping after leaving the store!

IStock_000008576040XSmall From a customer perspective, it seems pretty clear that they view the offline store and the online store as pretty much the same thing. The former you have to travel to, meet people and feel the actual goods, the latter you can do from anywhere at anytime on your own. Other than that the difference is fairly minimal.

The scary part is that these two completely different company units usually run these two areas. The challenge for brands is to connect the two of these and to offer similar services at each. On the Web side, we've seen an increase in ways to connect with real people, via chat or click to call. On the retail side, the connections are harder to find (and no, I'm not going to talk about Nordstrom again).

One great way to connect the offline to online is to make sure those front line sales staff feed back the questions they get to the Web team and customer service. That way the site can anticipate those questions.

On the flip side, make sure your site deals with all of those post-purchase questions like returns (even if you didn't buy online) or figures out a way for the sales staff to provide continued value to shoppers through the site or email.

It's pretty clear from Envirosell's report that brands can ignore connecting the online and offline shopping experience at their own peril, since 44% of in store shoppers end up visiting a competitor's Web site.

Connect everything. It's worth breaking through the resistance.
12/01/2009 Are You a Responsible Marketer?

I read an article this weekend by Paco Underhill, author of "Why We Buy" and "Call of the Mall" in which he wrote about our (U.S.) changing retail culture. I'm a big fan of Paco's and I used to buy his "Why We Buy" book for all of my colleagues. I think it's one of the very best books aimed at understanding consumers.

In his article Underhill points out two somewhat distressing trends. The first is that our past culture of vehement consumer spending is over and that our addiction to retail is going through a painful withdrawal and treatment phase. That habit will not come back soon. The second is that the decline in spending combined with the bonanza of online information means that stores need fewer and fewer sales people. Why talk to someone when you can look up 3rd party reviews in an instant on your phone? Of course fewer jobs mean even less spending power, etc., etc.


All this got me thinking: What responsibilities do we marketers have in all of this? You'd think that with fewer goods sold, we'd have fewer marketers but the opposite seems to be true. There seems to be more marketers than ever right now, thanks to the digital revolution. Do more marketers actually make the system more efficient, rather than relying on fewer more expensive options?

The bigger question, though, is if people spend less, and there are fewer of them who even have money to spend, does that impact what we marketers do, which is in essence try to increase sales? One way to answer this is that the plethora of marketers now aims to make sales costs more efficient through targeted digital media. I don't know if that's completely true, but it could be.

Do we ever accept the fact that people will buy less and encourage them to do so? The only time I remember doing this was when I did work for the utility Green Mountain Power. We built some very good interactive tools to help people lower their electric bills. You'd think that would mean less money for the utility, but the reality was that if they could keep peak energy use down, they'd be more profitable, not less.

I'm sure not many of us are having this conversation with our clients, though. And if we did, what would we say? If we say, "You have to market to lower profits," our clients might simply show us the door.

Efficiency, especially around digital, is a great place to start. It will hurt the marketing big guys and help the marketing people taking risks.  But it doesn't answer the question of how what we do digitally may, in and of itself, be part of the job-loss problem.

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