Email & Retail Case Studies - MarketingSherpa · 13 More data on this topic available from:: ©207M...

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Email & Retail Case StudiesCPG & Retail: In Search of the FoodEmporium Email

Or The Window of Opportunity inEmail Marketing

Anna MurrayPresident, e*mediaMonday, March 5, 2007


2© 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Anna Murray

Author, “The CPG eMarketingGuidebook,” MarketingSherpa.

President, e*media division,tmg-e*media, inc.

RetailWire Brain Trust

Blog: ContentIsQueen.net

Interactive Maven, CPGconsultant

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Food Emporium Email– Thatdoesn’t exist…



So We Asked Some People

Why are retailers (brick & mortar)in the dark when it comes toemail?

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And They Said

84% Agree that some opportunityis being missed.

Over half of those said theopportunity is “mammoth.”



The Cheering Section

Email ads have the potential to emergeas one of retailing's most effectivemarketing tools.

Neiman Marcus customers who shop viaall three retail channels, for example--catalogs, online and stores--spend sixtimes as much as customers who shop injust one.

The disconnect is obvious! Would it notbe feasible to be told by a retailer "10days 'till the ripe bananas are in."

If Office Depot and Southwest Airlinescan inform me of special deals via email,certainly grocers can do the same.

Imagine how a food retailer would standout if it took even a few steps in this area.

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Reasons: Lack of Money, Time,Organizational Structure

Unless a specific profit center can bedeveloped and measured then thehurdles of implementation are muchhigher.

Managing an electronic marketingcampaign, along with a traditional printcampaign and in-store campaigns areusually too much for most grocers.

Most chains haven't begun to get localwith their marketing or execution.

Many retailers do not have these skillsresident in their own organizations or thetime to devote to developing emailcampaigns.



Reasons: Lack of Money, Time,Organizational Structure

Most chains haven't begun to get localwith their marketing or execution. Makeslittle sense to send out a national orregional email promotion for an item thatis likely to be out-of-stock or not ondisplay in 30% of stores. Emailmessaging would only call closerattention to the implementation failuresthat continue to plague the industry.

Many retailers do not have these skillsresident in their own organizations or thetime to devote to developing emailcampaigns. They [don’t realize they] canrealize higher margin sales throughemail efforts.

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Snarky

Supermarkets probably haven'tfigured out a way to make theirsuppliers pay for this.

They are grocers and are waitingfor someone else to do it for themor come up with a program thatcharges suppliers a fee toparticipate in this advertising.



Constructive

The important thing about any emailcampaign is it has to help create"community" with the people receiving it.

Business Intelligence software is key tohelp retailers select customers based ontheir purchasing and email behavior.

Too often, supermarket emails are justlike the store flyer.

To do that, food retailers must stand forsomething more than "a place to buybrands of food."

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You’re Nuts

There may be a few lonely peopleout there that like this sort of thing,but I think most consumers willfind it to be annoying.

Sorry, Anna, but I am not a big fanof targeted email.



One Pretty Angry Guy

Well-known writer onsupermarketsegment.

Manhattan doesn’tcount.

They’re doing it.They’re all doing it.

Just go look.

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Okay…



Looking…

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Still Looking…



Promising…

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Very promising…



Other Sign-Ups: Home Depot

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Lowes



J.C. Penney

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While We Wait, More Comments

Pre-shopping is critical. 63%percent of consumers searched fora product or store informationonline before visiting a store.

Retailers have to carve out a spotfor themselves. Example:BigFeet.com.

Average consumer has taken 1shopping trip out of their month.

Executive level at retailers arewhite males, who don’t do theshopping.

MarkHunter,

The SalesHunter &NARMSRadio



While We Wait, More Useful Info

Stores need to position selves asexperts. That’s where the marginis.

85% of buying decisions made bywomen. Women buildrelationships.

We’ve created a whole categorybased on convenience not price,and the supermarkets did it byputting the milk in the back.

Rick Segel,Speakerand author

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While We Wait…CPGs

Some have been at email for 10years now.

Large databases, both at corporateand brand level.

After years of practice, somepatterns emerging.



In talks with brands…

Any contact point is a help.

We reach out when it makes senseto reach out.

The metrics we have say it works.

Can’t connect it to sales.

What’s the objective!!! Can’t domonthly emails just to do them.

Content is very expensive.

Timing is important.

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Some brands inspire morepassion…

Examples–

Ready Crust

Slim Fast

Senseo Coffee

Dove

M&Ms

L’ancome



Still Questions & Misgivings

Basically we created more junk mail buthow much have moved the needle interms of brand messaging?

Database confusion. So many DB

Brand, corporate

Different standards

How do we organize?

Group brand approach? Brand-by-brand?

We don’t think retailers get the traffic.

The postage is killing us.

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Today CPGs



Continued Smart

The program I useto read myemail…

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Missteps



Solution: After sign-up

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Be Careful with Global Strategy



The Big Disconnect

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Meanwhile, back at the ranch

Waiting for Lowes, Albertson’s,Home Depot, Safeway, J.C.Penney….



All email

CPGs

Online/offline retailer

Interaction was online.

Online pureplay

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Food Emporium Email Found!



Detailed Sign-Up

Kiosks In Store; began in Austin,rolled out across the country.

Asks lifestyle & food preferences.

Distributed “publishing” model.

Content team at corporate

Every store has email guru.

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Whole Foods Sign Up



The Whole Foods Strategy

Not just an ad. High valueinformation.

Highly targeted to what theindividual said they wanted to hearabout.

The email gets people to the store.

Subscribers say they love them.

“Lowest SPAM complaint of anycustomer I’ve ever heard of.”

Does not include manufacturers.

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Late Breaking News: Harris Teeter

Medium-sized retailer in the SE.

Targeted per individual.

Takes all circular information andchops it up.

Then delivers a weekly email basedon the individual’s shoppinghistory.

Connected and measured withFrequent Shopper data.

Retailer “very pleased.”



Harris Teeter

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Credit/Thank You

Anna Murray

President, e*media division

[email protected]

tmg-e*media, inc.

317 Madison Ave

New York, NY 10017

212-645-2900, x753

917-363-4016

Email & Retail Case Studies - MarketingSherpa · 13 More data on this topic available from:: ©207M...

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