Dash Hack – The Best Thing To Happen To The Amazon Dash

Der Amazon-Dash-Button mit Tide-Brand.
The Amazon-Dash-Button with Tide-Brand.

Recently one tech savvy dad hacked the Amazon Dash signal to input his kid’s poo patterns into a spread sheet – disturbing but cute. Personally, when I first read about the dash I thought it was a completely unnecessary toy made for the sole purpose of turning people into couch potatoes with a brand monopoly on every cupboard. I can’t have been the only one. But the recent interest in hacking the button puts a playful spin on this otherwise disturbing toy.

Here is user generated content delivered on a silver platter – will Amazon cash in on it?

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Why It’s Not About Saving Stationary Trade with Companies Like Amazon and Zalando

zalando-fashion-city
Screen: Zalando Recap & Business Outlook 2014

What makes Zalando so exciting? That they keep finding and inspiring investors without ever showing any profit? No. It is exciting to see how they have developed a feel for the internet which you rarely find outside of the usual US digital giants.

The Power of the Platform

Zalando has understood that in the future, having a platform will be decisive. Infrastructure, not traders will be a big topic. In the face of the digital changeover, who wants to lay all their eggs in one basket?

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(2 vote(s), average: 4.50 out of 5)
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E-Commerce: Young, Hip, Sustainable? Maybe

Grafik:Pablo
Graphic: Pablo

There has been another bout of back-patting in the e-commerce world about how sustainable we all are recently. The general consensus is that e-commerce is good for the environment for the following obvious reasons:

Less paper

So, paper… Has anyone seen the amount of paper which goes with ordering online a lot? Most places still send you a paper receipt, then there are the giant cardboard boxes filled with bubble wrap containing one tiny USB stick, not the mention paper catalogues and advertising materials which get checked in too. While some studies call this a >>footnote<< it is a factor which should not be ignored completely.

Resale platforms are the new recycling

Easy reselling is a wonder wonderful thing the internet has made easier to do. We used to call this op-shopping and it used to help the homeless.

Direct shipping means less transport pollution

The idea behind this is that delivery saves transportation on both ends: Shipping direct from the ware house reduces having to ship to a retailer first. Ordering online shops people driving around in their cars to shop. Statistics do support the claim that e-commerce results in about 30% lower energy consumption and CO2 emissions in 2011.

However, it has to be said, that the most important factor in this 30% figure is customer transport. Not only is this difficult to measure with any accuracy, but this study also assumed a US American shopping culture which involves driving to outlets in the suburbs in single cars. It does not take into account a central mall or shopping district reached by public transport scenario which is the norm in Germany for instance.

More recent research from the IEA 2014 shows that the energy demands of information and communication technology (ICT) account for around 8% percent of overall demand and that this will increase exponentially. While Europe’s energy needs will have increased by 15.5% in 2020, ICT energy use will increase by 84.3%. The devices we use to stay connected use power – all the time. Amazon’s new wind farm is a step in the right direction, but there is more to it than just power consumption. 98% of materials used in the production of ICT result in waste, reclying is costly and reuse is rare.

Better access to information helps customers make the ‘green choice’

Inspired by great design on the internet, I recently thought about adopting a plastic free lifestyle – starting by throwing out all my plastic kitchen stuff…which I could have used for the next 20 years…and buying pretty glass stuff instead. The logic was a little flawed. The internet does give us access to useful information, but it also makes us used to getting anything we want any time we want it. The choices we make are often less than logical because we are human.

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Photo: Robert

Dematerialisation: The Crux of the Matter

There are great things happening in e-commerce. Because it is still the industry of younger people who grew up with environmental education, sustainability is part of company culture. Perhaps the most important thing e-commerce has given us, is the power to make environmentally friendly purchasing decisions – whether that be buying second hand, organically or fair trade. But it is not the technology that is sustainable (or not), but it’s use. E-Commerce makes buying easier. It exists to sell more stuff and it does that very well! The problem is, that this is the driving force behind our sustainability problems.

» >>As prices fall, demand and consumption will rise. This is elementary economics. And with accelerating consumption of natural resources, our sustainability just spiral downward that much faster<< – Jih Chang Yang, Industrial Technology Research Institute «

If industry growth is larger than dematerialisation that industry is not environmentally friendly. If e-commerce dematerialisation cannot match its incredible growth sorry guys – it simply isn’t sustainable.

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E-Commerce Rumour Mill: Is Demandware Founder Stephan Schambach Sending Brick and Mortar Retail To The Cloud?

newstore
Screen: newstore.com

At NewStore.com there currently lurks a new (e-)commerce system provider in stealth mode which is attributed to Intershop/Demandware founder and serial investor Stephan Schambach.

According to bizjournals.com Newstore brings together numerous technologies, such as iBeacons and Apple pay, with the aim of becoming the leading mobile-centric e-commerce provider.

Even Jochen Fuchs from t3n has already detected the story, even though without mentioning that Stephan Schambach has his finger in the pie.

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(2 vote(s), average: 5.00 out of 5)
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New Study on FMCG Brand: Slow-Moving Giant Buying Up Niche Players

fmcg
Photo: Pixel Drip

Hard times for the FMCG branch: the average growth rate of the 50 strongest consumer goods producers in the world is in decline for the second consecutive year since 2014. Growth has shrunk from a subdued 2.9% in 2013 to just 1.7%, according to the figures in the 14th edition of the “Trends und Strategien im Konsumgütermarkt” study from OC&C Strategy Consultants.

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Customer loyalty – collected wisdom

future-store-closed
Photo: Thomas Lapperre

There’s a new article on customer loyalty in my feed almost daily and all look at different stages in the customer journey. So I thought I’d collect some of the top tips for you here in one place.

Exceed Expectations

When it comes to creating repeat customers and building brand loyalty this is a no brainer. So once you’ve covered the basics (fast shipping, friendly customer service), you can start looking at other possibilities for communicating excellence. Each touch point in the customer journey offers different opportunities. There are different ways to denote these touch points, but every online retailer probably shops online themselves and can identify with these:

Photo: Starbucks’ cup design campaign

The Browse
This is where customers clicking through your shop actually experience the look and feel of your company and brand. There is so much more to do here than just product images and info texts. There has been a lot of talk about video being essential. I remain unconvinced. But wherever you stand on video, and whatever your preferred look utilise user generated content. User reviews build trust, and use generated images and stories help brand building and a personal connection with your customer base. Of course, getting up close and personal with customers can be a great way to bond – but not too close or you might come across as creepy!

Filling the Cart
If you’ve done your job right during browse, this will be the euphoric phase of filling the shopping cart before seeing the final bill and possible cart break-off. Adding a surprise bonus if your customer starts emptying their cart can help push them towards checkout.

Purchase
This is where customers finally make the decision to fork out their cash. Make sure there is a guest option so new customers don’t have to make an account and incorporate one-click buying options for existing accounts.

Payment
Payment options can be a huge cause of late cart break-off. Make sure you offer a payment method which does not involve a card or paypal as well as the usual visa options.

Shipment
There are exciting developments in shipping happening and if you can afford to implement them, it can make all the difference. Amazon’s drones are still awhile away, but if you have a service provider who will do it, scheduled delivery can be a life saver for busy people. It’s no use getting your package within 2 business days if it arrives at your house midday on a work day and you have to sacrifice your lunch break in the next three days to queue for it at the post office because (surprise surprise) you weren’t home. Many companies in Japan now, for instance will let you call and reschedule delivery if you missed your parcel – even for the same evening.

The power of low expectations: It is better to say you can deliver in 2-3 business days and have the parcel arrive the next day, than offer one day shipping and fail to meet that promise. Even though same day delivery is being pushed more and more, 2-3 day delivery is still fine. Customers are more likely to remember that their parcel arrived early and always on time than that you offered fast shipping times. And if you couldn’t make good on your promise even just once, that will stick forever.

Receipt (Packaging and Freebies)
The customer finally gets their parcel and sees the products they ordered for the first time. Many shops to a great job of drawing customers in with gorgeous shop presentation, but forget this key moment when the customer actually experiences the products in analogue – so to say.

There are many disappointing things in life, but one of the worst in online shopping has to be ordering what looks like classic boutique clothing online, imagining yourself in the look and atmosphere presented in the shop, and getting a bunch of plastic bags instead. Stationary stores can be divided into the paper or plastic approach: those who chuck your items in a plastic bag vs. those who lovingly pack them in tissue paper and place them in a paper carrier bag with ribbon handles. The offline presentation of your products makes a huge difference in online trade. Sometimes nice packaging can result in social sharing (the best kind of free advertising), like this DYI project

studiousoctopus.com MichaelaEveryone loves a freebie. Even the smallest surprise goody has a huge impact. Keep it small. I still remember the added touches and surprise lolly pops in my first order from a certain special up market shop for women. Steer clear of a ‘hidden’ agenda. There is a place for vouchers, but most of those 5 Euro voucher *only valid with orders of 60 Euros or more end up in the trash and feel more like a cheap flyer than a real gift. Small, but personal is better.

On-Going Contact

Mail: No one likes spam. Decrease the frequency of mailings and provide high quality content instead. A birthday mail is nice, a real birthday card in the mail is better if you can afford it.

Loyalty programmes: The latest report from the 2015 Colloquy census shows that loyalty programme membership has increased by 26% since 2013 with Americans holding an average of 29 loyalty programme memberships per household. However, customers will only be active in a fraction of these.

» “Think of the U.S. loyalty market in terms of a crowded party where half of the party-goers are standing in the corner without mingling” – Jeff Berry, COLLOQUY research director «

The key to a good loyalty programme is to keep it simple and make benefit direct. Spending brackets, point use-by-dates, and a difficult redemption processes all get in the way of actually bonding with the customer. The basic model – single stage sigh-up, show your card, get points, get a gift voucher or cash back once a points threshold is reached and repeat – is still the best way. Anything more complex than that and few have the time or energy for it. Online card activation is a killer for instance.

Returns
This is always a tricky one. Returns cost money – make them difficult to deter serial returners or make them easy and no fuss to improve repeat custom? It is a balancing act every shop has to work on themselves. A B testing can help. Personally, I prefer an easy return. Zalando’s resealable box and pre-filled returns form is a great best practice example

Customer service
Most customer service communication happens once something has gone wrong, making it the last chance to regain customer trust and loyalty before losing them for good. The price of poor customer service is high compared to getting it right. Being able to just write an email and get a personal, real response is the best form of customer service for busy people dealing with problems. Video technical support is great if it fits your shop profile, but not every branch really needs it.

In Summary

Whatever measure you decide to put your budget into, keep it pretty, consistent, personal, simple, and give a little more than advertised.
Finally, the customer is not a different species – fickle, elusive and highly prized. If you have an online shop, chances are you shop online yourself. Buy something from your own shop, sit behind your customer’s keyboard and see what the view is like from there.

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New Initiatives: What Are Women Doinging in E-Commerce?

Women in E-Commerce
Screen: Women in E-Commerce

There is no question about it, the e-commerce scene still lies in the hands of men. It was long considered a technical trade, which was more about system landscapes, interfaces, and maintenance than the question, how to awake the impulse to buy.

This situation has long since changed. In the past years, traders, system providers, and agencies have started to look at how to create a shopping experience under the banner of key words like: emotionalisation, and female commerce. The female view point as a further development of previous e-commerce concepts has fought its way through to a permanent position on the e-commerce agenda.

This is why I though that the “Women in E-Commerce” group I recently found has been long overdue. But a closer look raised some questions. Jochen Krisch has already noted that it is surprisingly the traders association which is pressing forward. While this could be taken as a critique of the organisation itself, the aims of the “WIE” are not clear.

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Storytelling: How Sanifair and AirBnB Fail at Emotionalisation

Sanifair Video
Screen: Sanifair advert

Storytelling and emotionalisation are core topics in digital brand management and we don’t just deal with them intensively here in our blog. The choice of colour, the right content and should shop systems include emotionalisation as a standard feature, are all questions we pose together with our clients. This isn’t always easy, because apart from excitement and (hopefully) a shopping mood, there is also a whole palette of other emotions you don’t want to awake.

For instance, the cringe factor or fremdscham. This is exactly what happened this week with the emotionally charged toilet video from Sanifair and the Tweets about the new AirBnB campaign, which point out the stalker element.

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Klarna’s Happy: Press Enthusiastically dubs SOFORT Transfer “Unconscionable”

Sofort ÜberweisungWelcome to the low point of summer 2015!

They say there is no such thing as bad publicity. But what happens when leading media starts to spread only half of a court ruling in their headlines? The idea is to get clicks, suspense and all that. But this isn’t ok, especially when the attribute “unconscionable” is used and the idea snowballs into the rest of the internet press.

This is currently what is happening with the message “Court Ruling Dubs SOFORT Transfers Unconscionable”, in numerous variations. Background: travel portal start.de offered credit card with a 12.90 Euro charge as the only payment method apart from SOFORT transfers. The district court Frankfurt am Main deemed this to be unconscionable.

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