Servant of Chaos

How ClickFrenzy Became a ClickFizzer

It should have been a raging online success for Australian retailers – a pre-Christmas event bringing together hundreds of local stores to create an online marketplace unrivalled in Australia’s digital history.

The aptly named ClickFrenzy was designed to kick start the holiday purchasing season with an Australian flavour – with local retailers aiming for a greater slice of the estimated $16 billion spent each year online. It appeared to be a match made in virtual heaven – retailers with full warehouses and consumers waiting with wallets fattened off the back of low unemployment and stable economic growth. What could go wrong?

Like Any Failure, It’s Not About the Technology

When the ClickFrenzy servers went down minutes before the 7PM launch, Facebook and Twitter exploded with frustration. But the seeds of this failure go back years. 

For decades the retail sector has been under-investing in technology. Despite having international eCommerce startup superstar BigCommerce sitting on their doorsteps, most Australian retailers steadfastly resisted committing to the online purchasing experience. Some of the largest of retailers launched  poorly designed digital stores with clunky and outdated user experience, limited product lines and pricing models that were less than sharp. The excuses are many and varied, but at the heart I believe it’s a case of the The Innovator's Dilemma – retailers past success has created the obstacles preventing them from succeeding in the face of changing markets and technologies.

Retailers Were Blindsided by the Connected Consumer

Over the last couple of weeks I have been speaking a lot about the disruptive impact of technology. The Connected Consumer has transformed the landscape and outflanked most brands. They are discovering, debating and deciding what they will buy well ahead of the traditional marketing funnel.

Retailers may have seen this change taking place but have not undertaken the transformation in strategic thinking, execution and delivery that is required. They did not dig their well before needing the water. They did not follow the most basic of customer centric models (see below).

The Good News – Retail Now Has a Burning Platform

As I suggested recently, the under-investment in technology by the retail sector has been possible because there was no “burning platform”:

People still bought goods – especially appliances and larger items in stores, and “online” was considered risky, unreliable, and difficult to navigate when it came to returns, warranties and customer service.

Many retailers in the past have made many excuses for poor online execution, appalling digital strategy and non-existent or simplistic social media engagement. I am half expecting to see the same again.

But Australian retailers should wake up and smell the smoke. It’s time for a dramatic rethink from the ground up. It’s time to delve deep and understand the fundamental transformation that has taken place in consumer markets and to work with the disruption in a way that transforms the nature of retail. It’s time for digital marketing transformation.

The Shift from Mobile First to Mobile Only

Every year the mobile marketing industry boldly announces that THIS will be the “year of mobile”.

In 2005, Sony Ericsson, O2 and Samsung added new features and capabilities to their mobile handsets, delivering 2Mb cameras and GPS to blur the lines between the personal digital assistant and the cellular phone. It was the year that BlackBerry conquered the world and the Apple iPhone was still two years away from it’s game changing launch.

Mobile Device Saturation Outflanks Marketers

Over the last seven years much has changed. But perhaps the most astounding change is the near saturation levels of mobile phone usage – not just in the US, Australia or Europe, but globally. The World Bank reported in July 2012, that mobile phone access now reaches 75% of the planet’s population. And Google Trends reveals an unprecedented surge in mobile marketing interest.

And yet the question remains – how ready are enterprises for the demands of a mobile-ready world?

Marketers have been slow to adapt – first to the web and then to the mobile. Consumers (ie 75% of the global population), however, have not, embracing every new wave of mobile innovation with open palms. The World Bank report suggests that rather than petering out, the "mobile revolution is right at the start of its growth curve”.

Digital Disruption: Lessons from Asia Pacific’s Digital Trajectory

Asia Pacific is not just an economic juggernaut – it is also a petri dish showcasing the consumer behaviour and business impacts that are being wrought by the shift to digital. And while many enterprises have begun to respond with a “mobile first” strategy – designing customer experiences around the mobile device, our trend report on digital disruption suggests that this may not be enough. For many consumers, the future of digital may not involve a desktop computer at all. Mobile first may not be enough – it’s time to consider what it means to have a web experience that is mobile only.

For marketing leaders, there are five key lessons that can be drawn from Asia Pacific and applied to any market:

1. The Internet experience is mobile with a social heart.
2. Consumer adoption is disrupting patterns of media consumption and transforming the buyer’s journey.
3. Digital adoption will drive marketers’ thirst for mobile solutions.
4. Marketers will turn to marketing automation to scale execution.
5. The shift to digital requires a re-casting of the marketing funnel.

Download a copy of the report to learn how mobile and social adoption will change your market strategy.

News Analysis: Google Takes on Financial Services

In the UK, Google is set to launch a new financial services division with a new credit business the first product to market. As Adam Clark Estes reports, the initial offering will provide businesses with a small line of credit linked specifically to Google’s AdWords program.

A number of items within the announcement are worthy of attention:

• It’s a new product within a new division of Google
• The plan is to expand to countries beyond the UK in the “next few weeks”
• Credit cards will be issued with very competitive rates

Why This Is Important

• Financial services is a fresh field ready for disruption: Disruption in the financial services sector has been a long time coming. The sweeping tide of digital has washed through most sectors but has been held back from regulated sectors like financial services, healthcare and pharmaceuticals. Innovators are seeking a way into these lucrative markets
• Google understands speed to market: Many industries rollout new offerings over extended time frames. It can take years for innovations in one national market to reach another. Google’s intention clearly intends to move very quickly to cement a foothold
• The loan book is the thin edge of the wedge: As I suggested at a recent personal lending conference, disruptive competition is likely to come from outside the financial services industry. Cash Converters in the UK last year saw 154% growth in their personal loan book; in Australia they experienced a not insubstantial 28% growth. This is not about bit players – it’s about trends – and there is a wave of change coming. Google plan to be surfing this wave

The Bottom Line: Connected Consumers Shift to Where their Sense of Trust Takes Them

Despite advertising and branding blitzes over the previous 24 months, most financial services companies are viewed with suspicion by many of their customers. Long term lock-in has allowed FS companies to claw back GFC losses and to grow. This move by Google (and the accompanying announcement by Amazon) will capture the imagination of Connected Consumers – the tech savvy early adopters of a disaffected consumer world. Google has been building trust with Connected Consumers for years, turning every search result, every click and every app login into a brand experience. This may be the first step in what could truly be a transformative monetization strategy.

Your POV

Would you take a loan from Google for AdWords? What about cash? Where do you see this leading? Add your comments or send us an email.

Please let us know if you need help with your digital strategy efforts.  Here’s how we can assist:

• Assessing social business/digital marketing readiness
• Considering new digital community strategy
• Developing your social business/digital marketing  strategy
• Designing a data to decisions strategy
• Create a new vision of the future of work
• Deliver a new customer experience and engagement strategy
• Crafting a new matrix commerce strategy