Journal of Retail Analytics
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1 Journal of Retail Analytics Bringing Research to Retail SM Volume VII, Issue I First Quarter 2011 SPECIAL REPORT: DIGITAL SIGNAGE IN EDUCATION PAGE Communication Effectiveness in Higher Education: Summary of 6 PRI Research Report Justin Greenfield, Research Associate, Platt Retail Institute Learning the Value of Digital Signage at Marshall University 8 Eric Himes, Director of Digital Media Services, Marshall University University of Bedfordshire Considers Digital Signage Integral 12 to Communication Strategy Hugh Coghill-Smith, Director, ONELAN Digital Signage ARTICLES US Office: P.O. Box 158 Hinsdale, IL USA contact@plattretailinstitute.org EU Office: Emma Gads Vej Silkeborg Denmark Phone: [45] briana@plattretailinstitute.org Retail Outlook: U.S. GDP Continues to Improve; 15 Consumer Spending Will Lag Steven Keith Platt, Director and Research Fellow, Platt Retail Institute Converged Retailing: Communication Channels and Tools Evolve 23 in the Age of Consumer-Driven Retail Rick Chavie, VP of Marketing for Retail and Hospitality, NCR Corporation Mall Call: What s Ahead for Mall Digital Signage Networks 30 From a presentation by Guy Taïeb, Founder and CEO, Futuramedia Engaging Point of Sale Approach Targets Citroën Customers 32 Morgan Angove, formerly with Dagobert,France Insights at the Speed of Shoppers' Lives 35 George Anderson, Retail Wire In-Store Advertising Competes for Consumer Attention 36 Maria Szczech, MA, The Chicago School of Professional Psychology Network in Italian Pharmacies Expands 40 From a presentation by Vincenzo Amato, Managing Director, Pubblipharma Performance-based Measurement Standards Will Drive Growth 41 in the Digital Out-of-Home Industry Brian W. Carnell, Marketing & Advertising Product Strategy Leader, Cisco The Underestimated Potential of Store Brands 45 Alan Klein, Global Insights Consultant, The Marketing Agency The Use of Screens in Urban Markets: Barcelona 51 Ignasi Lamarca, Owner & Director, Focus on Emotions Copyright PLATT RETAIL INSTITUTE LLC All rights reserved.
2 COLUMNS PAGE Retail Sector Performance 14 Marketing Insights 54 Brad Rukstales, President, CAC Group, Inc. North American Digital Signage Index Summary: 4th Quarter PRI Research Publications 58 PRI Research Sponsorships 59 PRI Resource Library 60 Industry Events Calendar 61 Contact PRI 62 Editor s Clarification: The Quarter edition of the Journal of Retail Analytics included an article by Roi Iglesias, formerly of Altabox, entitled "Digital Signage in Spanish Supermarkets. The article was intended to provide a broad overview of the use of digital signage in various supermarket chains in Spain. One of the photos that accompanied the story depicted a digital signage installation in a Continente supermarket, which was deployed by and is managed by Xarevision, a digital signage company based in Portugal. We regret any confusion this may have caused. 2
3 The Coming Wave of Convergence? by Brad Rukstales, President, CAC Group, Inc. very new technology comes with the promise of new capabilities, some of E which are immediately apparent, and some that afford possibilities not immediately recognized, but that develop later. For those of us in the customer marketing and analysis side of the world, new technologies breed new types of data for analysis, and new applications of the data itself. The amount and type of data now available is growing at a pace unforeseen in recent times. The current wave, not yet completed and in fact still evolving, will usher in a new era of insight and targeting that will be more specific and actionable than ever before. This is creating and will create ever more challenges for privacy and integration. Past waves of convergence have included the integration of online shopping behavior with offline purchasing to create an integrated view of customer transactions. The result of this integration was (or should have been) a higher level of relevance in communications and marketing by understanding more about the consumer. For instance, the multi-channel customer was found to be the highestvalue, most loyal, and most likely to be a brand advocate. Significant developments also occurred in the area of web traffic measurement, beginning with things like page views and click streams, but materializing into online behavioral segments for ad customization. A new ad industry matured based partially on this information. However, this data was largely compartmentalized away from customer transactional information, and there was not a natural convergence between the ad-centric advertisers and the customer-centric marketers. This is a missed opportunity that exists today. More on this later. At this time, there is a wide range of marketplace and technical developments that, from a consumer information perspective, continue to offer a new opportunity for better tracking and understanding. Of course, this should materialize into smarter marketing and advertising! When and where The most obvious new channel to emerge is mobile, with smart phones that lead to enhanced applications based on Internet access and GPS navigation. Forgetting about the real issue of consumer privacy for a moment, if I know where a customer is, I can make a lot of inferences: Where they live, down to an address (where is their smartphone at 2 a.m.?). Preferred locations/brands (Shell or Exxon?), fast food (Wendy s or Burger King?). Amount of driving they do. Which billboards they pass. What digital advertising they are exposed to. Foursquare is a great consumer-opt-in example. People who download Foursquare can check in at different locations, making their GPS signal available to the application. Foursquare then uses that information for marketing offers from participating companies. The footsteps of Facebook into this frontier are getting louder, which serves to validate the concept. Many applications of Location-Based Services (LBS) exist and will continue to 54
4 Wave of Convergence (cont d.) evolve into areas of travel, restaurants, entertainment, and retail. Some may involve tracking traffic in certain locations (intersections, venues) for counting purposes. In most cases, the consumer will at least have the ability to opt out of any tracking; they will need to provide explicit permission. The consumer has been shown in the past to be open to such permissions if the value exchange is clear and compelling. Behind the curtain There are other core data sources and techniques available to fill the gaps in terms of understanding specific customer relationships: Social media engagement can be identified at a consumer level. The number of connections, on which sites, and other information (which varies by site) are available to define and understand influencers. IP mapping is a process of utilizing the IP addresses from log files. Since most of our home modems are only rebooted occasionally, they really serve as static IP addresses (not dynamic). This means that the data from web browsing at an IP address level (attached to every click) will almost always point to the same individual. If the individual enters a name and address somewhere during the process, that can be linked to the IP address. Web browsing behavior can then be tracked back to that individual. The future as it could be Picture marketing the way it could be. What if the dream of convergence were realized? What would marketers be able to do? How would the bond between brand and consumer be enhanced? A top-of-mind list could include: Recognizing high-value customers easily at every touch point on their smartphone, on the web, via , and other direct communications channels. Delivering customized value propositions at every touch point. It s one thing to know who is valuable. It is quite another to have something different or unique to say. Real-time scoring applications exist to deliver important customer information to applications for customization. Recommendations, offers, and information can all be tailored based on specific customer attributes. Differentiating Web traffic analytically based on customer segments. A brand will know what its core segments do online, what its new customers do, and what prospects do. This allows for web site configuration and communication to be tailored to influence behaviors accordingly. Providing data to advertisers so they can know who they are reaching through various channels (mobile, outdoor, banner, etc.). Media can be priced on the quality of the traffic. This all comes from integrating data from all different sources: Offline transactions. Online transactions. Transactional trends (frequency, type, channel). Demographics and segmentation. Web browsing patterns and habits. Mobile browsing. 55
5 Wave of Convergence (cont d.) GPS-enabled tracking. Social networking sites. Of course, the consumer benefits, too. They may see fewer irrelevant offers from brands, since a higher degree of customization is possible. The value exchange means that they are exposed to products and offers that are a better fit for their lifestyle than what they are seeing today. This, in turn, should materialize into higher sales for marketers. Challenges There are several challenges, from privacy and technology to creativity. These challenges in some cases may turn out to be insurmountable. In other cases, they may be tall hills to climb, but are still possible to overcome. Privacy Consumer privacy is paramount in today s information-driven economy. The consumer s privacy must be completely protected at all times. In many cases, this means that the consumer must give permission to participate in a certain data collection ( opt-in ). In other cases, the consumer must be made aware of what could be done with their information, and they must have the opportunity to reject the use of their data ( opt-out ). Much of this is driven by federal or state legislation, or customer contracts. All marketers and service providers must be acutely aware of privacy legislation as it relates to their business. Technology The flow of bits and bytes to support applications is heavily reliant on sophisticated back-room technology, data contracts, and numerous matching algorithms. Delivery may need to be in real-time for the value to be extracted. All of the data must fit neatly together. Creativity Brad Rukstales is President and Founder of the Customer Asset Consulting Group. Those of you who have read previous columns know that I think marketers miss the boat marketing-wise much of the time by not customizing their communications, not even a bit, to different customer segments. The convergence of data increases the ability to customize channel, message, offer, and copy to align more closely to a customer s personal channel style, needs, and prior relationship with the marketer. The question is, do marketers know what to do next? What actions will be different? What will be tested? Where will the marketing creativity emerge to enable the new insights and capabilities to add value? The most creative marketers will continue to analyze and test new ideas, some evolutionary, some revolutionary, to increase the effectiveness and efficiency of their marketing. What s next? Will all of the technical promises happen? Will advertisers spend smarter? Will we know more about the consumer than ever thought possible? Well, the marketing world is littered with past prognosticators of convergence and integration, so it may well be a fool s errand to make any such predictions. However, one thing is clear: The path forward is more exciting than ever. The opportunities appear endless for marketers who are ready to forge a new way forward. New ways of analyzing old media and new media (especially areas like DOOH) are possible, and marketers have the ability to be smarter about their investments than ever before. 56
Journal of Retail Analytics
Journal of Retail Analytics Bringing Research to Retail SM Volume VII, Issue I First Quarter 2011 SPECIAL REPORT: DIGITAL PAGE Communication Effectiveness in Higher Education: Summary of 6 PRI Research
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