Ernan’s Insights on Marketing Best Practices

Monday, August 21, 2017

Moosejaw CMO Answers 4 Questions For Digital Innovators

Dan Pingree is the chief marketing officer of Moosejaw Mountaineering, where he oversees the outdoor retailer’s marketing initiatives, including search engine marketing, search engine optimization, email, photo, video, graphic design, content production and publishing, social media, brick and mortar marketing, catalogs, direct mail, A/B testing, and data analytics.
Moosejaw combines his love of e-commerce with a passion for the outdoors, and admits to owning doubles and triples of basically every piece of climbing equipment. He has held previous digital marketing and e-commerce leadership roles at Drugstore.com (Walgreen’s), Housevalues, and Microsoft and holds a Master’s degree in business administration from Harvard Business School. When not at work, he enjoys climbing, skiing, and trips with his family, the most recent of which was a trip to Cuba.
Pingree recently participated in our "4 Questions for Marketing Innovators" series. His topic is very timely: experiential marketing.
1. What is one marketing topic that is most important to you as an innovator?
In today’s retail environment where fierce competition abounds and continued retail bankruptcies dominate the business headlines, creating a notable, unique experience through various marketing activities has never been more important in defending against the assortment, convenience, and pricing pressures of Amazon. This is our focus every single day at Moosejaw.
We define “experiential marketing” as a series of marketing events or interactions that are unique and memorable to the customer and help him or her feel understood. This includes all touch points that a customer can have with Moosejaw, from initial introduction, site experience, emails, product recommendations, customer support, and even order packagin
One of the key attributes of surviving and thriving retailers over the next five to 10 years will be their ability to effectively and consistently deliver those unique and memorable interactions to customers.
2. Why is this so important?
Consolidation within retail is happening at a rapid rate. Amazon continues to put smaller pure plays out of business and is no doubt directly responsible for mall closures and big-box retailer downsizing. Amazon’s strength is within the transaction—that is, their assortment, aggressive pricing, and world-class logistics and delivery capabilities.
Retailers would do well not to attempt to “out-Amazon” Amazon but rather seek to build unique, notable experiences for their customers—experiences which help customers feel understood and valued at every touch point. Experiences that are consistent and unique, which other retailers—including Amazon—are not offering.
At Moosejaw, we sell outdoor clothing and gear, most of which is available at other retailers. Because of this, we have to constantly ask ourselves, “Why would somebody buy from Moosejaw?” The answer, of course, is because of the unique and notable experience Moosejaw offers its customers.
As we are successful with our experiential marketing efforts, I have no doubt that Moosejaw will be a strong, healthy retailer in the years to come, Amazon’s meteoric rise notwithstanding.
3. How can this improve the customer experience?
Experiential marketing enhances the customer experience because you’re creating interactions where you are demonstrating a clear understanding of who the customer is and what she wants. If it is known, based on your previous and current site browsing and past purchase history, that you like the Canada Goose brand, it doesn’t make any sense to show you promotions related to backpacks and climbing ropes. If you do, you may lose this customer forever because they feel misunderstood.
Every customer is an individual with unique tastes and preferences, and our marketing efforts must treat you as such. On the other hand, if the site experience involves changing the home page, search slots, navigation, and product detail pages by exposing the kinds of brands, categories, and offers that we know you like based on the data we’ve collected about you, we can create an experience that is welcoming, engaging, and worthy of your time.
Doing this well creates a differentiated experience versus every other retailer since nobody has truly cracked the code—yet. For all retailers big and small, there is a huge opportunity to win in this area. The slog is hard, long, and expensive, but ultimately those who figure it out will have a defensible position against the retail headwinds caused by Amazon.
4. How will this improve the effectiveness of marketing?
Dollars spent on experiential marketing simply perform better than generic marketing. We’ve seen it repeatedly in our results in areas such as time spent on site, add-to-cart rates, conversion rates, open rates, click-through rates, and many others.
The challenge is that the upfront investment costs in technology and people—not to mention the time required to test and learn which experiences are most meaningful—are huge barriers to most companies. But those who stay committed to experiential marketing will find the reward to be well worth the investment.
Bonus Question: What is your favorite activity outside of work?
One of my favorite activities is alpine mountaineering. I love being outside, on high mountains, in beautiful and remote locations. I’ve been working on climbing the highest mountains of the seven continents, of which I’ve managed to climb three so far. I hope to complete them all before too long, including Mount Everest.
For additional Marketing Innovator stories, click here.

Monday, August 7, 2017

Companies That Thrive During Tough Times Share These Traits

Article by Ernan Roman
Featured on CMO.com
In the same economy and same consumer market in which thousands of retailers and brands are struggling, others are thriving and growing. Why? What drives the outcome of "something went wrong" versus "things are going great"?
Their "secrets" become apparent by understanding who they are, who they serve, and how they connect with customers in a value-driven, sustainable way. It all starts at the very top.
"CEOs must create a culture where the key measure of success is the success of your customers," said Serge Saxonov, CEO of biotechnology company 10x Genomics. "To achieve that, the company must constantly seek unbiased, unadulterated, and blunt feedback from customers and prospects. That will keep the company from creating its own version of ‘marketplace reality.'"
Employees also factor into the equation. "CEOs must ensure that every employee cares passionately about the success of customers and make decisions based on ensuring that customers succeed," Saxonov told me. "This will drive the sustainable success and growth of the company."
Here's a look at three success traits traits driving success at a trio of top brands.
Success Factor #1: Meet A Clearly Defined Need
According to the Accenture study "Technology Trends 2017" (PDF), relationships are no longer about keeping customers happy as the company guides them toward a goal. Relationships will be about walking with people on a path they define.
In the very competitive fitness sector, Orangetheory Fitness has received the workout world's attention with 600 studios across the country and $450 million in revenue. To differentiate itself from competitors, Orangetheory Fitness aimed to satisfy the needs of high-tech, fitness-oriented consumers with a technology-driven solution that participants monitor to pinpoint the effectiveness of each workout.
"Technology enables the consumer to ... work out better. ... I think the lack of technology made it very hard for people to hit their fitness goals," said CEO David Long.
Findings from 16,000-plus hours of VoC research interviews conducted by our firm, ERDM, make it evident that success depends, in large measure, on understanding what it takes to earn the customer relationship. Consider these representative quotes from the research:
  • "It's not just what we buy from you; it is the total experience that determines whether we buy from you again ... or go to the many other choices in your category."
  • "If you want to keep me as a customer, I expect what you market to me to reflect my individual interests and preferences."
Success Factor #2: Abandon The Ego Of ‘That's How We Do It'
According to John Rand, senior vice president of retail insights for Kantar Retail, "As a response to the many obvious challenges to the traditional business ... seek to differentiate, adopt new practices, and reconsider the brand and shopper focus."
A few years ago, Lego's CEO Jørgen Vig Knudstorp told colleagues, "We are on a burning platform ... [and] likely won't survive." Recently, however, the company announced the highest revenues in its 85-year history. What made the difference? Perhaps Julia Goldin, Lego's chief marketing officer, has the answer: "Every year [we] recruit every child again and make the brand exciting for them."
Two key strategies that keep Lego ahead of the game are:
  • It cut its losses and outsourced ventures that were outside of its core expertise: According to Simon Cotterrell of analytics firm Interbrand, what has made Lego successful comes from knowing what it is good at. "That's a very brave thing to do, and it's where a lot of companies go wrong," he said. "They don't understand that sometimes it's better to let go than to hang on."
  • The company found new ways to listen to its customers: Anne Flemmert Jensen, senior director of Lego's Global Insights group, noted, "My team spends all our time travelling around the world, talking to kids and their families, and participating in their daily lives." The company also rolled out Lego Life, a social network for kids.
Success Factor #3: Don't Just Market--Understand And Communicate
Urban Outfitters has experienced an 146% increase in revenue and 75% gain in conversions through the use of new, personalized marketing opportunities and innovative use of tools, such as very targeted location data.
"Our goal is to provide better experiences for our audience in this competitive landscape," said Andrew Rauch, senior director of global digital marketing at Urban Outfitters. Additionally, Trish Donnelly, CEO of Urban Outfitters Group, commented on the brand's use of social to connect: "This channel has given us yet another relevant way to connect with our customers and engage in two-way conversations."
In summary, a combination of clarity of vision and focus, agility, and strategies that stress connections and relationships that evolve over time with customers is what separates companies that still thrive in a landscape of tough times versus those that don't. This final quote from the VoC research says it all: "The brands that earn my loyalty are those that make the effort to understand me and help me over time. The brands that sell and disappear haven't done anything to earn my loyalty and dollars."