Day 1 of ShopTalk My Notes

My Top Takeaways

  1. Follow the IPA Principle (Immediate, Personalized, Authentic) to focus on Millennials
  2. You have to hire a Chief Customer Officer, if you want to be a serious retailer online If you are servicing the 18–34 demographic, you need to hire folks that are at least 26, so you get real users of your product
  3. It is not about the check-out process (the term is now old), it’s about the check-in process. You never want your customers to check-out, they are part of the conversation, experience, and purchase
  4. It is critical that to focus on the Product Experience
  5. Focusing on the mission first, gives you a cycle for free influencers, hiring, and customers becoming your best advocates
  6. Facebook treated mobile, not as a channel, but a brand new user behavior
  7. Google highlight: we no longer ‘go online’, we live online.
  8. Create customer community programs, so that your fans, have a way to help out, because most companies have fans that do, you just need to direct them
  9. User generated content is now: User Generated Experiences

Videos To Watch

  1. I recorded Target’s new ad unit that they made for Facebook, its a video carousel unit
  2. https://drive.google.com/file/d/0B6QyscCxcJhmZU9IUG5UU3pGMmc/view?usp=sharing
  3. JET CEO, recorded a personalized video for all their customers, check out the video here:
  4. https://drive.google.com/file/d/0B6QyscCxcJhmbllPb0VZSm5UMTQ/view?usp=sharing

Dollar Shave Club Session

  1. Only 1.5% ot online retail spend is currently done on Amazon. There is tons of opportunity for disruption as more retailers go online.
  2. It’s important to map the omni-channel experience to the 4 P’s (Product, Place, Price, Promotion)
  3. Dollar Shave Club invested a lot of money on MEL (http://newsletter.wearemel.com/) it currently has 3.1 million members and has become part of their customers daily life
  4. Most important thing Dollar Shave Club is currently doing: Focus on the Experience, not the product alone
  5. The average customer for Dollar Shave Club signs up for 3.2 years
  6. Being a mission driven company is critical for success, specifically in Hiring. People stay because they feel they are part of something bigger
  7. Their goal: “We are your best friend in the bathroom”
  8. 44% of their current customer base are buying 1-way charlie
  9. They have two distribution centers: Torrence, California and Ohio
  10. They use DHL and USPS
  11. Raised 160m
  12. Many of the same investors in Netflix, have invested in Dollar Shave Club, no pressure to become profitable yet
  13. 240 million revenue across 180 employees
  14. Their biggest challenge is Hiring
  15. It is important that you are always interviewing/recruiting, it is the hardest part of Dollar Shave Club currently

Enjoy Session

  1. It’s easier and more cost effective to send trained people to a customers house, then pay for owning a b&m store
  2. 20% of Apple Store employees left to work at uber, which means most people prefer the on-demand lifestyle
  3. Enjoy is a great place to work, most employees set their own schedule and within 4 hours can deliver a product to a customer
  4. The shift that has happened for Enjoy to focus on personal commerce
  5. Only works for higher priced items
  6. Create magic through experiences
  7. Since acquiring customers is very expensive, enjoy partners with manufactures and uses a customers first use, to convert to a lifelong customer.
  8. You have to prove profitability as a startup
  9. Using venture to fund marketing is the most expensive use of proceeds, customers generating new sales is the best kind of marketing
  10. Best mistake you ever made: Becoming CEO of JC Penny

Highlights

  1. The best way to take on Amazon is by focusing on the experience. Amazon doesn’t have a way of doing that correctly
  2. Hiring a Chief Customer Office is critical to any company focused on selling anything online.
  3. Old retailers are too channel centric, it is critical to become customer centric
  4. The beauty of digital, is that it levels the playing field, everyone sees the same store online, but the experience is different
  5. Mission based business give you free marketing
  6. 80/20 rule. Constantly evaluate the bottom 20% of marketing spend to new opportunities
  7. Once you turn on a social channel, make sure you have the staffing to support it, running a poor channel can hurt customer sentiment
  8. There is a company that creates hand written notes, use the service quarterly to send to your customers
  9. -find ways to connect to consumer more directly
  10. Cotopaxi unused factory material into bags
  11. User generated content is now user generated experiences
  12. Focus on fostering a community on social.
  13. Think about what a community program means, if you have customers that want to get more involved; how do you create a framework for that?
  14. Bring your brand offline and create a framework for customer advocacy
  15. Check in is the new check out, check out is disappearing
  16. Focusing on checkout was last centuries problem
  17. Average mobile checkout is 120 taps
  18. Retail is becoming democratized thru the sharing economy

Marketing

  1. Retailers need to do more content marketing and reduce the layers of bureaucracy to publish content.
  2. EverLane is focused on snapchat, and it’s making a huge impact on sales
  3. Create events on snapchat, that create a sense of community. i.e.: Transparency Tuesday’s
  4. millennials are optimistic and believe that anything is possible,

PopSugar

  1. Follows the IPA principle, (IPA is hugely successful with millennial because it’s cheap and gets you buzzed faster)
  2. Millennials want: Immediate better faster than yesterday
  3. Personalized, content and merchandise
  4. Authentic, hardest thing to do, 15k influencer network across blogs and Instagram
  5. The millennial 18–34 wide age range is huge and there are tons of life stages in that bracket. From don’t know what you’re doing to having kids/family
  6. Don’t use the word millennials, use the age group instead, there are more gen z than other groups currently
  7. We live in a visual economy
  8. They create 4–6 minute episode and build community and engagement
  9. They have a dedicated team on brands and videos
  10. If you’re customer is 22, then you have to hire 26 year olds
  11. Videos are more long lasting, can you easily get ugc video content over images
  12. Currently has 1billipn minutes/month
  13. 95% of watched videos is not on pop sugar platform, being watched on other platforms: YouTube, Facebook, Snapchat
  14. There is currently an explosion in vertically integrated brands
  15. Millennials care most about: experiences
  16. China has largest commerce experience in the world and its all chat based
  17. When you see something on social, first thing a millennial does is go on Amazon
  18. Make a product you can’t live without
  19. Identify buckets by life stages, not by naming of age
  20. It’s not about product is about experiences
  21. Pinterest is 80/20 female skewed
  22. females like the story and experience, men want the direct call to action

Facebook

  1. Mobile is a new behavior not a channel
  2. 18–34 age group is the largest generational working group
  3. Discovery
  4. Personalization
  5. Return on investment
  6. We need to reinvent product experiences, visual story telling

Google

  1. We no longer go online, we live online
  2. Moments and micro moments are how we navigate our digital life
  3. Shopping ads launch on image search
  4. Enables store pick up
  5. You can reserve online now
  6. There is a buy button, which manages inventory

Jet

  1. 11m products currently on the service
  2. Shop smarter, by creating baskets of distribution centers that are closest to you
  3. Basket centric approach
  4. At checkout, jet optimizes the price, supply chain, and distribution
  5. 1 m gross march sales currently
  6. 3m buyers, 400k new users a month
  7. 1 trillion dollars online that will be accessible
  8. Jet will be profitable by 2020
  9. 150 personalized videos, to customers
  10. Customer care center in Salt Lake City.
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