Weather is the. New Black PART ONE: Weather Changes Everything

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1 Weather is the New Black PART ONE: Weather Changes Everything Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 1

2 Introduction Weather has profound influences on consumer purchase behavior. Various conditions and temperature ranges impact what we buy, when we buy, how much we buy, and why we buy. Using breakthrough technology, marketing teams can easily understand how weather has influenced purchase behavior on their site or in their bricks and mortar store. For example, a retailer can use Skymosity s Weather Analytics Suite to see AOV (Average Order Value) and Revenue fluctuation when it s colder than 20 degrees, or snowing, or 70 degrees in January, or their top 10 selling products when it is raining. Using this information, marketers can then take advantage of savvy technology to create a better user experience. On their website, a brand can serve different content based on the visitor s current weather condition; they can trigger advanced s based on current or forecasted weather; and more. Marketer Considerations What if marketers had a way to easily understand how any weather condition or temperature range influences their sales, and then could target customers across multiple channels based on local weather conditions? What if a website could present personalized content based on each visitor s weather condition. What if a retailer could automatically trigger targeted s based on local weather in 42,000 zip codes? What if Adwords could be optimized by automatically increasing and decreasing bids based on the weather? For Marketers, Weather is The New Black. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 2

3 The Power of Weather Weather has universal influence. Everyday, weather impacts the thoughts and behaviors of everyone across the globe, both consciously and subconsciously. Weather has influence on what individuals will wear, where they will go, what they will do, how they think about themselves, others, and the environment, and even what and when they purchase. Weather s influence on the human environment is something that has been studied for over two millennia, from Artistotle to the present, with radical improvement in predictability models taking the forefront throughout the last century. Weather data is constantly being gathered from the furthest reaches of the globe for weather monitoring, forecasting, and business purposes. Up until recently, weather s influence on business has been viewed in limited scope with insurance agencies and agricultural business utilizing large data sets, mostly to hedge against drastic fluctuations that could affect insurance payouts or poor crop yields. Skymosity has introduced a new model for utilizing big weather data, making it both digestible and actionable for marketers across industries to easily make sound marketing decisions, based off of the correlation of weather data tied together with historical transaction data. Weather Directly and Indirectly Influences Consumer Behavior It is widely known in the marketing community that a variety of key factors affect consumer behavior in the marketplace. The most widely discussed factors of influence are social, economic, cultural, personal, and physiological, underscoring that both internal and external factors play a crucial role in consumer behavior and the decision making process. Who a person is, who they associate with, how much spending power they have, what their needs are, as well as their cultural background are basics to understanding consumer behavior, but upon further evaluation, it becomes clear that weather plays a meaningful role, as well. Weather s Direct Influence on Product Purchase Decisions In different climate conditions and different temperature ranges, consumers are driven to purchase different items. Rain coats and snow tires intuitively Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 3

4 see spikes in purchase behavior near the beginning of the winter season, respectively, and board shorts and sun dresses see spikes near summer and springtime. Beyond these simple examples, though, customers are driven towards different product purchases from the same retailers, during different weather conditions throughout the entire year. In consideration that there are nearly 42,000 zip codes in the United States, each with varying weather conditions at any given time, it is important to note that weather is extremely localized and how consumers feel in accordance with the weather has a direct impact on what they will purchase. Weather s Influence on Purchase Psychology Weather conditions and temperature ranges also have an effect on consumer purchase psychology. In the most intuitive manner, in extremely colder weather conditions, people are more reluctant to leave their homes for their shopping endeavors which can impact B&M sales as well as online purchase behavior, whereas in extremely hot conditions, consumers show similar behavior, with impact points for weather related purchasing dipping and spiking at larger temperature fluctuations. Beyond that, consumers are more prone to purchase different items based on the immediate weather condition outside, in which there are intuitive spikes in umbrella purchasing when it s raining or spikes in suntan lotion when it s sunny. Weather affects the way that people consider their day and opportunities, driving divergent consumer behavior, based on divergent weather conditions. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 4

5 340BC: Aristotle wrote Meteorologica which included theories on how weather formed. A Brief History of Weather 1592: Galileo Galilei invented the thermometer to measure temperature. 1643: Evangelista Torricelli invented the barometer to measure atmospheric pressure. 1837: Samuel F.B. Morse invented the telegraph, allowing for tramission and retention of weather data. 1849: Joseph Henry of the Smithsonian Institute was plotting daily weather maps. 1870: National Weather Service was founded in the US. 1869: Cleveland Abbe started forecasting daily weather at the Cincinnati Observatory. 1922: Lewis Fry Richardson wrote Weather Prediction by Numerical Process which describes weather prediction in 64,000 calculations. 1904: Vilhelm Bjerknes comes up with idea for numerical forecasting. 1950: Jule Charney made a successful 24 hour weather forecast using a computer. 2000: Weather forecasting is used heavily for air traffic control, predicting crop yields, and anticipating hurricanes, tornados and other extremely adverse weather. 2013: Skymosity launches a breakthrough Weather Marketing Platform for ecommerce to translate big weather data into actionable wins for marketers. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 5

6 From Big Data to Actionable Data Big Data is more than a buzzword; it s something that can be very powerful, if and when it is digestible and actionable to create big wins for marketers. Big Data, by definition, is too complex to utilize, so many marketers want to utilize it, but must choose to ignore it due to its overwhelming nature. Big Data is everywhere, but few are able to fully monopolize on it s capabilities. By focusing on actionable data, meaning big data that can be translated into action, there emerges key opportunities for businesses, large and small. Once big data becomes actionable data, it becomes a resource that businesses can begin to utilize for maximum value. Once actionable data is being properly utilized, the need for additional research and guessing is eliminated so that teams can work on implementation, not interpretation. Going from big data to actionable data for businesses is best understood as going from individuals within a business collectively knowing their organization to collectively understanding their business. Weather is one of the oldest forms of big data on the planet. Around 340 B.C., Artistotle wrote Meteorologica 1, in which he made assumptions of the formation of weather conditions, based on independent research and personal data he collected. Many of the assertions that he made were proven inaccurate, but his assumptions were considered the authority on weather for nearly two millennia. Fast forward a few hundred more years to present day and weather conditions and temperature readings throughout the populated globe are collected and maintained every moment of every day, broken down into bite-sized nuggets of localized actionable data for individuals. Collectively, we know exactly how storms and clouds are created and can identify tornadoes and hurricanes more readily than ever before in known history. Big weather data has been used in some form of predictive analytics for nearly a hundred years, from war strategy, to air flight control, to anticipating crop yields. Although not infallible, the more near an upcoming weather condition is, the better we are able to anticipate it, and the better prepared we are to make decisions on forecasts. Thomas Bogdan, president of the University Corporation for Atmospheric Research stated, It s smart business to incorporate the latest weather and climate knowledge into financial decisions. 2 Weather data is prevalent, influences consumer behavior, and should be utilized, once transformed into actionable data. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 6

7 From Satisfice to Maximize: Maximizing Weather Marketing Opportunities Making a decision off of data that one can understand is something that all businesses and marketers must deal with on a daily basis. In an environment of information scarcity the same effect happens as in an environment of information abundance- little to nothing. Marketers have had to satisfice that they were making the wisest decision, based on gut instinct and limited or overly abundant data. In fact, satisficing in regards to big weather data has been the only way to feel good about it s utilization, especially in business, until now. Enter the age of weather marketing maximization. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 7

8 Leveraging Weather Marketing Technology Weather Diversity: Cross-seasonal merchandising has historically had its place in clearing inventory, rather than fulfilling customer needs. That mindset is finally changing. While winter months may be a prominent push for certain products, there are still many customers and prospects that live in counter-climate areas. For example, while it is 38 and raining in many areas in January, other cities enjoy 70+ degree weather with clear skies. This presents an opportunity for marketers to maximize their merchandising strategy and provide a very meaningful customer experience. Even in consistently-seasonal geographies, the perspective is quite different. Cold for some is 50 degrees, while 15 degrees is a warmer day for others in the winter. If marketers speak to this in smarter ways, they can then better target the -10 degree winter, the 20 degree, 35 degree and 65 degree winter, which all benefit from more targeted merchandising. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 8

9 Weather Analytics: With weather analytics, marketers can analyze historical transaction data to see how weather influences sales. It is important to gain a better understanding of AOV, Revenue and Product Trend variance during key weather conditions in order to make better marketing decisions. Understanding how weather influences consumer purchase behavior is a crucial insight that allows marketers to merchandise, advertise, and convert sales. At its most basic level, if marketers can identify their top selling products during various weather conditions, they can then better merchandise and advertise for higher conversion during those conditions. There s no need to satisfice, when a marketer has the actionable data to maximize. Triggers: Automated triggers help marketers to deliver the right content to the right person at the right time. By utilizing weather analytics data, marketers have powerful information to make informed decisions on how to best target. is a powerful channel, but many marketers treat it as Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 9

10 a one-to-many communication. Using weather-based trigger technology, marketers can create automated trigger campaigns that deploy specific content during certain conditions. By utilizing automated weather-based triggers, marketers can maximize the influence of weather on consumer purchase behavior, to improve the customer experience and increase revenue. Website Personalization: Website personalization allows for brands to adjust content based on each visitor s weather condition. Marketers have become smarter by testing extensively and presenting different content based on various visitor criteria. Weather is both a rudimentary and necessary element here, as utilizing weather s influence on consumer purchase behavior by better voicing key website real-estate allows marketers to create a much more targeted visitor experience. By analyzing historical weather trends with advanced analytics, marketers can then maximize the way that consumers interact with their website, by having optimal content display for each visitor s local weather. For apparel websites, for a simple example, a website could drive visitors in rainy conditions to the outerwear section of their site, winter jackets and cold-weather gear could display for visitors in sub 20 degree areas, and shorts and polo shirts for 75+ temperature ranges, honing in on purchase behavior in accordance with the weather to maximize conversion and AOV at all times. While these are rudimentary examples, leveraging weather data to understand specific product trends for every condition provides retailers with powerful opportunities to better serve every site visitor. Adwords Bid Adjustments: Consumer search behavior and buyer modality depends on many factors. Weather is one key element that most marketers do not yet leverage when developing Adwords bid strategy. However, weather influences when a consumer researches certain products and when they are driven to actually purchase. By using automated bid adjustments, marketers can easily increase and decrease campaign bids based on the user s local weather. For example, a search marketing manager may opt to decrease campaign bids by 50% during certain conditions and increase by 25% in others to maximize opportunity for conversion. Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 10

11 It remains crucial in the digital age for marketers to start thinking about how weather impacts sales in all channels, including important paid search efforts. Conclusion Weather is the best new way for marketers to have a 360 degree approach to their marketing efforts. Beyond simple site tracking and preferences monitoring, by seeing marketing through the lens of weather conditions and temperature ranges, businesses are able to speak better to consumers and their environment, further personalizing and catering the buying experience to consumer needs and wants. In turn, by leveraging big weather data and seamless weather-based marketing technology across multiple channels, businesses will be able to create a stronger customer experience, better handle seasonal merchandising challenges, and increase revenue. Weather is not just a trend. Weather is a breakthrough method for understanding business operations to maximize marketing and influence. Weather is in style and available now. Weather is the new black. Click here to sign up for early notification of the follow-up white paper: Weather is the New Black: Part II - Industry Specific Concepts Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 11

12 About Skymosity Skymosity is a breakthrough Weather Marketing SaaS platform that provides advanced analytics and real-time weather marketing based on any current or forecasted condition. Starting with its flagship and patent-pending trigger technology, EA Rainmaker, the Skymosity Weather Marketing Platform transforms big weather data into actionable wins for marketers. With bleeding-edge weather-focused technology, Skymosity continues to evolve their platform to help crush records for top brands around the world. Retailers interested in learning more about how they can leverage weather in their marketing programs can visit the Skymosity website at or CLICK TO WATCH THE DRAMATIC SKYMOSITY TRAILER About Aptitude Aptitude provides strategic services, full-service management, and ESP-Agnostic technology for top retailers. From triggers based on site activity to view-through conversion tracking for multidevice attribution, Aptitude s functionality enables marketers to have powerful interactions with their customers. Visit the Aptitude website at Copyright 2014 Skymosity Weather is the New Black Part One: Weather Changes Everything Page 12

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