Black Friday Is Dead…Long Live Black Friday

Posted by Megan McManaman

Tue, Dec 22, 2015

retail2.pngIf you noticed the annual coverage of Black Friday shoppers seemed somewhat muted this year, you weren’t imagining things. While Cyber Monday sales were the highest since its debut in 2005, Black Friday sales were at their lowest since 2011. We all know how many elves flew (or didn’t) off the shelves, but to learn more about consumer holiday shopping behaviors, we partnered with Research Now for a quick survey of smartphone owners, ages 18 and up. 

Does 2015 mark the end of Black Friday—retail’s highest and holiest holiday? One retailer, REI, even opted out of this year’s Black Friday altogether, though their website did allow shoppers to make purchases online. The 87% of respondents who reported shopping on Black Friday might suggest that its imminent death is exaggerated. But the 81% of those Black Friday shoppers who did at least some of their shopping online suggest the explosion of ecommerce may have circumscribed the usual Black Friday frenzy.   

And then we have mobile—2015 marked the introduction of app-only deals from retail giants Amazon, Walmart, and Target. Of respondents who did shop from their smartphone or tablet, on either Black Friday or Cyber Monday, a full 27% purchased through an app. Still, a Cyber Monday dominated by in-app sales may be a few years away—61% of the Black Friday and Cyber Monday online shoppers used a PC to make their purchases. 

Need further evidence that online shopping and mobile technology are disrupting the traditional holiday shopper customer journey? “Just” 67% of Black Friday deal-seekers said they actually braved a brick and mortar store—this on a day once defined by the in-store experience. Is nothing sacred? 

Megan is CMB’s Senior Product Marketing Manager. She can’t stand Christmas music and was once visited by 3 ghosts. 

Topics: Technology, Mobile, Retail, Customer Journey

Star Wars Marketing: Full Light Speed Ahead

Posted by Julia Powell

Thu, Dec 10, 2015

Star_Wars_The_Force_Awakens-1.jpgUnless you have been living in exile on the swampy planet Dagobah, you may have noticed that December 18th marks the release of Star Wars: The Force Awakens. There are reminders in every corner of the consumer landscape from Chewbacca Spiced Latte Coffeemate peering out of the dairy freezer to Limited Edition Star Wars lipsticks from Covergirl (including silver and gold but not Chewbacca). Star Wars-licensed clothing abounds from discount retailer Primark to The Gap and more. There are Star Wars shoes available ranging from Crocs (complete with Yoda-sound emitting add-ons) to customizable Superstar 80s from Adidas.

Of course, there are toys, too, featuring characters from the previous films and The Force Awakens. These were launched in grand fashion with “Force Friday,” which took place on September 4th 2015 (falling conveniently ahead of the back-to-school and holiday shopping seasons). There have been three months of merchandise build up, with more character items set to be released after the full plot of the film is revealed. While witnessing the amazing treasure trove of merchandise and brand tie-ins, I couldn’t help but wonder, how did LucasFilm’s promotion of the first film compare to Disney’s current efforts with The Force Awakens?

A long time ago (38 years) in a galaxy far, far away, the first Star Wars installment opened on May 25th in just 32 theatres. Initially marketed only to a small science fiction fanbase, momentum grew as the film received positive reviews and word of mouth spread. By August 1977, the movie was on over 1,000 screens. The film itself appealed to children and adults, and it featured ground-breaking 4 channel Dolby sound, adding to the overall cinematic impact (and audiences’ desire to repeatedly return to the theater). It dominated the box office in 1977, grossing over $461 million dollars domestically (over $300 million ahead of another sci-fi classic: Close Encounters of the Third Kind). To put this in perspective: that’s over 1.85 billion when adjusted for ticket price inflation.

 By Christmas 1977, Kenner Products, which held the original licensing rights to Star Wars action figures, was underprepared to meet the production demand the surprise sensation. What was a toy retailer to do when faced with the inability to deliver the characters every kid (and some adults) wanted? Easy: sell empty boxes. Ahead of the holiday shopping season, Kenner cleverly sold “Early Bird Certificate Packages,” including a certificate for action figures (available in February 1978), a diorama stand, and a Star Wars fan club membership card. Waiting to redeem those certificates must have been agony.

When Star Wars was first released, there was nothing else quite like it, and there was no way to anticipate the film’s success nor the audience’s desire for merchandise. With The Force Awakens, Disney knows its audience and has guaranteed there are enough items available to drive interest ahead of the film. There’s also enough stock on the shelves as families head to the theaters (in sharp contrast to Disney’s 2014 Frozen toy shortages). On top of the items available ahead of the release, there are several characters yet to be revealed, including Andy Serkais’ Supreme Leader Snoke, which means that there’s even more to come.

Have you ever waited in line for a pre or post-release movie toy? Will you be headed out to see The Force Awakens sporting any character socks?

An Associate Researcher and owner of a now vintage, non-mint condition Ewok village Julia Powell is. 

Topics: Marketing Strategy, Media & Entertainment Research, Retail

Brands Enter the Fight Against Holiday Shopping Creep

Posted by Becky Schaefer

Mon, Nov 23, 2015

While Black Friday marks the unofficial start of the holiday season for U.S. retailers, visions of sugar plums dance in retailers’ heads (and on their shelves) well before Halloween. The so-called “Black Friday Creep” in which sales and decorations start on or before Thanksgiving, has gotten a lot of press. Remember this Kmart ad from SEPTEMBER?!

The backlash was inevitable—too many news stories about workers forced to forgo their Thanksgiving dinners and deal-seekers trampled over new flat-screen TVs. In reaction, several high profile retailers are taking a stand against staying open on Thanksgiving. Nordstrom’s gotten great press for continuing its tradition of closing all 118 locations in the U.S. on Thanksgiving Day and reopening on Black Friday. Fun fact: this is not the only “creep” that Nordstrom avoids—it also avoids the “Christmas creep,” a trend in which retailers start decorating for Christmas before Thanksgiving even happens. Nordstrom believes in “celebrating one holiday at a time,” and does not decorate for Christmas until Black Friday.

Here’s my favorite example of a company combatting the creep—equipment company REI recently announced that it will not only close on Thanksgiving, but also remain closed on Black Friday. The brand has taken this unusual move and used it as a branding opportunity as part of a new campaign called “Opt Outside” (#optoutside). REI encourages both employees (who will be paid for the day) and customers to skip the mall and spend Black Friday enjoying the outdoors instead of shopping. Over 800,000 people have already committed to Opt Outside this Black Friday, and you can choose to join directly on REI’s website. It’s a brilliant idea, and it works because it’s consistent with REI’s brand promise and its customers’ values.

What are your Black Friday plans? Are you planning on spending your Black Friday racking up holiday deals? Or are you going to Opt Outside with REI? Let us know in the comments!

Rebecca is part of the field services team at CMB, and she is excited to celebrate her favorite time of year with her family and friends.  

Topics: Advertising, Marketing Strategy, Brand Health & Positioning, Retail

When Only a #Selfie Stands Between You and Those New Shoes

Posted by Stephanie Kimball

Thu, Aug 13, 2015

mobile, shopping, mobile walletThe next time you opt to skip the lines at the mall and do some online shopping from your couch, you may still have to show your face. . .sort of. MasterCard is experimenting with a new program that will require you to hold up your phone and snap a selfie to confirm a purchase.  MasterCard will be piloting the new app with 500 customers who will pay for items simply by looking at their phones and blinking once to take a selfie. The blink is another feature that ensures security by preventing someone from simply showing the app a picture of your face in an attempt to make a purchase.

As we all know, passwords are easily forgotten or even stolen. So, MasterCard is capitalizing on technology like biometrics and fingerprints to help their customers be more secure and efficient. While security remains a top barrier to mobile wallet usage, concern about security is diminishing among non-users. In addition to snapping a selfie, the MasterCard app also gives users the option to use a fingerprint scan. Worried that your fingerprints and glamour shots will be spread across the web? MasterCard doesn't actually get a picture of your face or finger. All fingerprint scans create a code that stays on your phone, and the facial scan maps out your face, converts it to 0s and 1s, and securely transmits it to MasterCard.

According to our recent Consumer Pulse Report, The Mobile Wallet – Today and Tomorrow, 2015 marks the year when mobile payments will take off. Familiarity and usage have doubled since 2013—15% have used a mobile wallet in the past 6 months and an additional 22% are likely to adopt in the coming 6 months. Familiarity and comfort with online payments has translated into high awareness and satisfaction for a number of providers, and MasterCard wants a slice of that pie. Among mobile wallet users, over a quarter would switch merchants based on mobile payment capabilities.

mobile wallet, wearables

Clearly the mobile wallet revolution is well underway, but the winning providers are far from decided, and MasterCard is taking huge leaps to see how far they can take the technology available. If MasterCard can successfully test and rollout these new features and deliver a product that their customers are comfortable using, they can capture some of the mobile wallet share from other brands like Apple Pay and PayPal.

So what’s next? Ajay Bhalla, President of Enterprise Safety and Security at MasterCard, is also experimenting with voice recognition, so you would only need to speak to approve a purchase. And don’t forget about wearables! While still in the early stages of adoption, wearables have the potential to drive mobile wallet use—particularly at the point of sale—which is why MasterCard is working with a Canadian firm, Nymi, to develop technology that will approve transactions by recognizing your heartbeat.

Since technology is constantly adapting and evolving, the options for mobile payments are limitless. We've heard the drumbeat of the mobile wallet revolution for years, but will 2015 be the turning point? All signs point to yes.

Want to learn more about our recent Consumer Pulse Report, The Mobile Wallet – Today and Tomorrow? Watch our webinar!

Watch Here!

Stephanie is CMB’s Senior Marketing Manager. She owns a selfie stick and isn’t afraid to use it. Follow her on Twitter: @SKBalls

Topics: Technology, Financial Services Research, Mobile, Consumer Pulse, Retail

A Lesson in Loyalty: Will J. Crew Get a Clue?

Posted by Hilary O'Haire

Wed, Aug 05, 2015

loyalty, branding, retailIf you follow news in the fashion world, you may have read about recent setbacks at preppy retailer J. Crew. Following another disappointing quarter of earnings, the company announced corporate lay-offs and changes at the helm of their women’s clothing design strategy. Although J.Crew has been quick to take action, its poor performance goes beyond declining sales and disappointed customers. Even customers most loyal to the brand are shouting their frustrations in the social media streets (see: “Dear J.Crew, What Happened to Us? We Used to Be So Close”).How could the direction of a company—known for its devout customer base—take such a dramatic turn? Although off-the-mark designing is partially to blame, many are frustrated with the poor construction and quality of the clothing. As a loyal customer, I have relied on J.Crew for items that are basic closet staples and distinctly on trend. Like others, however, I have been disenchanted by their new lines—my $40 t-shirt is stretched out after one wear and a hole has appeared near the seams. This is not the outcome one would expect when paying that much for a basic t-shirt. Sarah Halzack summed up the issue well in her Washington Post article on the topic—“J.Crew is learning the hard way that in an era when e-commerce has presented women with ever-greater shopping choices, customer loyalty is hard to win and incredibly easy to lose.”

That’s a point J. Crew and other retailers need to take seriously. It’s certainly true for me. Receiving poorly crafted items from a higher price brand such as J.Crew creates a sharp disconnect. After experiencing this, I’m more likely to purchase from one of many cheaper brands (e.g., H&M or ASOS). Most shoppers that I know feel the same way. In facing this challenge, J.Crew needs to re-examine its core strengths. What positive attributes drove customers to advocate the brand in the first place? Is it quality (as in my experience) or is it design? Is it something else? Although the world of fashion is very forward-thinking (fashion-forward!), the case of J.Crew is a good reminder for brands to consistently monitor and deliver on the core aspects that first led to success.  

Hilary O’Haire is a Project Manager on the FIH/RT team. Having worked for J.Crew back in college, she is particularly hopeful the brand will make a comeback!  

Topics: Brand Health & Positioning, Customer Experience & Loyalty, Retail