In the following interview I discuss with Wayne Hurlbert, the preeminent business blogger (Blog Business World), that retailers need to embrace new strategies to reconnect with their customers. We discuss:
Strategies to win back customers who have left the malls, big box, and other retail outlets for their mobile devices.
How the behavior of mobile shoppers is different from both tethered online customers and from the traditional in store consumer.
Techniques for winning back those customers, reconnecting with them, and regaining their long term loyalty.
How to embrace mobile technology as a competitive advantage for your business, and place yourself in the forefront of the mobile shopping revolution.
1. Substitute “Mobile” for more inclusive term “CONNECTED SCREENS”
2. Geo-LOCATION crucial to social strategy
3. NFC continues to be far field
4. For RETAIL: space between bricks and clicks most valuable
5. For everyone: space CONNECTING screens most valuable
6. Mobile viruses push SECURITY agenda
7. More PRIVACY transgressions, More PRIVACY protection
8. ANDROID increase the lead in a 3 horse race
9. Operator CAPACITY drives new business models
10. Through-The-Middle (TTM) services counter OTT
Square’s business model is successful but needs accelerated growth in 2013. If Mr. Dorsey can shake the trees in the prepaid world, he can expand his business significantly.
Prepaid gift cards are a valuable strategy for Square for two key reasons:
One is growth – a digital gift card is viral and thus expands Square’s influence horizontally. And Square wants more users. Now a viral nudge will lead a friend to download a free Square Wallet from the Apple App Store or Google Play.
Secondly, is margin – Square plans to disrupt the incumbent gift card issuing fees with a low 2.75 percent charge. Given there is no high bank interchange on prepaid, Square can reap a healthy margin.
Key to adoption on the small screen will be the user experience – especially with a viral gift product. As Jack Dorsey says, “This is a product where the experience really matters.”
A Square user can search for nearby businesses, click to buy a gift card and enter the recipient’s email address. The recipient (benefactor) can download the Square Wallet app(Square’s preferred outcome) or save Square gift cards to Apple’s new Passbook app.
The success of the gift card strategy may be dependent on Square being able to sign up additional big name merchants such as Starbucks, which began accepting payments via Square Wallet this fall. But Square will have a hard time finding another commerce partner like Starbucks. As I like to say you can successfully sell an addictive substance – coffee – on every street corner in America.
It is harder for other retailers. With a close-loop gift card you need partners with scale.