Don't base digital shopper activity on ecoupons.. yet

Research just published shows the growth of electronic coupon usage slowing. Does this mean the predicted dominance of ecoupons has stumbled before it's learnt to run?

In a recent report on this subject the use of money off coupons has now grown in usage to cover 90% of all consumers.  However digital coupons have only grown in use by 9% over the same period. 

It therefore seems that paper-based redemption methods are more popular than ever, but that ecouponing hasn't got the mass adoption it should have.

Why is this? 

Here's a couple of possible reasons:

1. Retailers don't support them
The major supermarkets have so far failed to embrace digital vouchers. Even my Tesco Clubcard app on my mobile phone, which uses a simple bar code shown on the screen, only works on a limited number of their scanning tills (and none of their smaller local stores near me, which seem to be the type growing in number right now). Yet I walk in with a handful of paper - based ones (from newspapers, magazines and even self-printed at home via sites such a supersavvyme.co.uk) and they all bleep through with no problem.

2. Brands are slow to use them
Perhaps as a result of the point above, even the major FMCG brands (typically the early adopters of these sorts of things) have not taken up the opportunity to use electronic coupons in any sizeable numbers.

 

Perhaps when both the retailers and brands collectively get their act together on ecouponing, then there will suddenly be lots of  uses, linked in with tracking and other eCRM initiatives for the ideal digital shopper marketing campaign.

What role does your Chief Digital Officer have?

At the beginning of this 2012 I pulled together a post on the emerging role of the Chief Digital Officer (CDO).

Over the last few months I've been considering this role more and now think that this is a job that will become more commonplace in the future. And it would seem that I'm not alone in thinking this, with executive recruitment company Russell Reynolds now stating that

The spike in demand for Chief Digital Officers has been felt globally. In Europe, the number of search requests for this role has risen by almost a third in the last 24 months

So what should the Chief Digital Officer should be responsible for in a major organisation?

Here's my suggestions:

• Having a seat on the board that champions the implementation / growth / adoption of digital technologies & practices, whilst contributing to the overall business strategy
• Online best-practice guidance and mentoring for all executive level staff
• Owning the company's digital strategy (including the digital roadmap of future features and functionality)
• Managing the implementation and management of online services (where there's no dedicated business owner)
• Ensuring the Digital Strategy aligns with overall IT, operational and product / commercial roadmaps
• Overseeing the overall digital user experience (e.g. every online touch point)

The Chief Digital Officer should also have the following experience:

- Experience of working within a blue chip organisation on a global scale (e.g. FMCG, Manufacturing, Online, Retail, etc.)

- Knowledge of Digital Marketing (from search engine marketing through to complex attribution)
- eCommerce best practice (conversion optimisation, merchandising, pricing and fulfillment) 

- A sound grounding in technical architectural and operational standards
- A history of large project / programme delivery

Embracing digital isn’t always easy – but it can be worth it!

Stop thinking of digital as an addition to your organisation and make it part of your day-to-day work, culture and business drivers.

Amazingly I still hear prospects and contacts saying how they are “adopting digital” or “embracing social media” within their company, when in fact what they really mean is…

“We’re going to continue to do what we’ve always done, but mention the occasional online buzzword when it suits us or when we think the boss is looking”

Does this sound familiar?

OK.... yes some do go part of the way and try to bolt-on digital ways of working to their standard practices. For example you see this when a company pilots something like an enterprise collaboration tool as a replacement for their Intranet, when they only have internal network access for their staff (or take on a Social Media marketing person, but then block access to the sites need because of ‘firewall’ policies).

However the truly evolved organisation is one that does actually take digital to the core of what it does and use it in the most relevant and productive way. This is typified when an organisation automatically writes normal press releases that are optimised for the keywords they are targeting as part of their SEO efforts. Or when it considers the mix of products it sells across different channels before it buys or manufacturers them (rather than selling the same stuff on its website as it sells in its stores).

This adoption doesn’t just result in a more connected company that can hopefully take advantage of more opportunities and learn to discard the negative ones quicker… but somewhere that hires & retains the most innovative & forward-thinking staff… plus one that can hopefully react to market pressures quicker.

The evolution of digital, gently does it.

How customers & consumers interact with a brand has certainly changed in the last few years thanks to online communication technologies. There are now blogs, web forums and user-generated content (UGC) websites for every possible niche service or product out there and at every emotional point between brand fanatic and disgruntled ex-customer (and beyond).
The Internet (and in particular social media) has given everyone with an online connection the ability to find those with similar feelings or experiences – no matter how specific – and to come together to discuss, refine, support, encourage, complain or plot.

So while it seems quite strange – at least to those of us who use, and work in and around, online social space – that some organisations still choose not to venture into this area, we must also remember that we are (including our clients) all at different points along a digital adoption path, with many still relatively new to understanding it, let alone harnessing the power of, this new communication phenomenon.

Adoption rates for technology

The evolution of media on the Internet is following the path of traditional media, only at a much faster pace. In fact it is possible to chart the progress of most technology over the recent decades . This graph is available from:
http://graphics8.nytimes.com/images/2008/02/10/opinion/10chart.large.gif

It shows:
Radio @ 50% adoption by 1930
Colour TV @ 50% adoption by 1970

However I feel the uptake rates of these technologies is more important:
Radio - 50% in 10 years
Colour TV - 50% in 10 years

What's even more impressive is the the uptake of the Internet to 50% in just 6 or 7 years (and the VCR in even less). I now can't help wondering what's likely to have a faster uptake rate in the future. Will it be a new device (less likely) or will it just be a device-agnostic service (more likely)?

Note:

It also reminds me that I need to re-read the 'Waves of Power' book written by David Moschella back in 1997, where he predicted the growth of the network economy and gave future growth rates for information-based sevices.

http://www.amazon.com/Waves-Power-Technology-Leadership-1964-2010/dp/0814403794

Critical of standards

I've recently posted about the new BSI guidelines / PAS (Publically Available Standard) 124 for company website standards, which provides a procedural framework for implementing and managing a company website.

Although the framework within PAS124 sets out to provide various business benefits, such as:

• reduce the risk of doing something wrong
• maximise investment
• improve speed-to-market
• provide a suggested governance structure

......this new standard hasn't necessarily met with universal approval:
http://www.internetretailing.net/news/comment-bsi-standard-for-the-web

However, I do feel that Marcus from Internet Retailing may have missed the point about the purpose of this standard, he may have a point about it being charged for. Surely this can only hinder its adoption?