For thirteen years, Resource Interactive has studied retailers online during their high-stakes holiday season. Why the holiday focus? We’ve noticed that certain competitive advantages become highly conspicuous during these days of intense consumerism—the holiday season can either make or break the year for retailers. In other words, it offers us the opportunity to survey a retailer’s biggest moment and best effort.
Of the 40 online retailers we surveyed using our OPEN framework, we’ve chosen to feature fifteen in the final report. We focused on the social media, mobile and web site innovation, uncovering quite a few bright spots in a season of innovation and inventiveness. See how retailers fared—from Amazon to Zappos and everywhere in between—and take a look at the most novel marketing moves of the holiday season, which will surely become the everyday fare of 2010. Are you ready?
3. HOLIDAY 2009 OVERVIEW
For thirteen years, Resource
holiday season. Why the holiday
13
Interactive has studied retailers
online during their high-stakes
focus? We’ve noticed that certain
competitive advantages—or a
effects of plans well laid, including
features and programs launched
just prior to the holidays and those
strategically (or sometimes unavoidably)
delayed to go live mid-season.
We’ve focused on the exploitation
to consumers’ holiday shopping
habits, spending thresholds, brand
preferences? How much would they
need old-fashioned signifiers of the
season for reassurance, and how
much would they crave novelty?
digital laggard’s disadvantage— of social media, the adoption of The Macy’s “Believe” campaign
become highly conspicuous during mobile and on web site innovation; was high-tech and multichannel
these days of intense consumerism. email is not covered in this report. in execution but quite nostalgic in
Holiday season retailers are look, feel and appeal.
stress-tested and their readiness A blizzard of another sort in the
for the consumer onslaught can northeast cost offline retailers an Of the fifteen retailers surveyed,
make or break the year, as sales estimated $2B in one weekend nine are from Internet Retailer’s
are disproportionately critical in but was a boon to ecommerce 2009 Hot 100 List, a ranking of the
November and December. merchants. Each week and weekend year’s most innovative retailers. The
brought dramatic developments and group as a whole achieved stellar
It is true that the oldest retailing how the season would net out was a OPEN assessments because they
practices—various forms of price giant unknown, particularly as it was proved to be overachievers. If this
reductions, for instance—overtake tied to what Resource Interactive were 10th grade, everyone would
the season like a whiteout. But has called the “recession-rewired” be in the front row and everyone
lately, and particularly this year, consumer mindset. Various indices would be wrecking the curve. They
there is a blizzard of innovation and have shown consumers measurably were trendsetters in many ways, and
inventiveness as well. The focus of recovering from the recession but helped create some critical mass for
the Holiday OPEN Watch is on the it was still a mystery whether or not the following:
latter more than the former. We’re they’d have the holiday spirit that
taking a snapshot of the state of frequently clicks “Add to Bag” and • Facebook Connect
the industry as a way to judge its makes the store cash register ring. implementations and branded
preparedness and to survey the What would the new frugality do Facebook apps
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HOLIDAY OPEN WATCH
4. • social networking invitations with • single or streamlined networking platforms. Even luxury
various incentives logins, though no OpenID showed some forward momentum
• sharing buttons anywhere and implementations due to well-managed inventories
everywhere, from wish lists to • a handful of barcode scanners but also to better integrated
checkout • a heaping of retailers on third- multichannel marketing.
• blog and virtual world launches party mobile apps such as
mid-season (though astoundingly NearbyNow. (In fact, whatever Then there were the sales results
poor web site/blog integration) the holiday or shopping need, and the consumer satisfaction
• mobile app debuts or new there was an app for that: even scores. A single-day online sales
releases of preexisting apps the Salvation Army has a simple, record was set on December 15:
• group gifting platforms musical one.) $913 million. And from November
• e-gift cards particularly appealing 1 to December 22, online spending
to the procrastinating public reached $22.5 billion, a 4 percent
(shoppers had completed an increase over 2008, which was
average of 47% of their holiday down 3 percent versus the year
gift buying as of Dec. 9, the prior, according to comScore Inc.
lowest level since ‘04, according Not surprisingly, then, consumer
to an NRF survey) satisfaction scores were way up as
• Black Friday and Cyber Monday well, according to Foresee Results. A
discounts announced against few of our retailers achieved scores
ticking clocks but also elongated in the high 70s and low 80s—Macy’s
for weeks, even months 12.9% improvement over 2008 made
• engrossing 1-click, video-inclusive it the biggest gainer, while Amazon
catalogs and Apple improved less but had
• branded iGoogle portals and less distance to travel to the top, with
RSS widgets scores of 87 and 82, respectively. 80
• real-time co-shopping platforms is considered the magic number of
and social shopping site customer service excellence.
sponsorships Brand-sponsored charity, imperiled
• competition-driven consumer- by the downturn, nevertheless But let’s look now at our own
generated content surged ahead with the help of social method of scoring.
2
5. On-demand, personal, engaging NRF’s 2009 Holiday Consumer view, purchase and share the tens of
and networked: Resource Intentions and Actions Survey’s thousands of outfits created by Wet
Interactive doesn’t think these prediction that gift card spending Seal customers on their iPhones,
digital experience attributes ever would be down, we deemed the shows what consumers can do for a
go out of style. But that’s not to say Personal experience less than ideal. brand given the tools and the right
they are unchanging; what was an We also assigned a lower score for sharing platform. Neiman Marcus,
optimized On-Demand experience the Personal experience due to low- part of our survey but not featured
two years ago—a web site Store functioning wish lists or the absence here, showed some real invention
Locator, perhaps—would have to of available experts for consultation, with its Style Radar, but the fact
be a GPS-powered mobile Store be it for fashion or electronics. Sears’ that a Chicago profile exists without
Locator today, and, ideally, one that Shop Your Way is among those real Chicago women’s input is a big
prompted location-aware special programs setting the Personal pace. missed Networked opportunity.
offers. For the OPEN Holiday Watch,
we’ve assessed fifteen retailers’ The Engaging experience must There were several other
ability to assign the right priority to feature video these days— performance indicators for On-
each of the four attributes, meet the instructional or merely inspirational, Demand, Personal, Engaging, and
needs of each, and refresh each with catwalk-like, employee-produced, Networked—too numerous, in
the most current and compelling consumer-produced for a fact, to describe here. For those
online tactics and technologies. competition, whatever works best of you interested in absorbing
for the retailer’s target market. all of the tactics and rationale for
As the 2009 holiday season turned Extra points were given if the each of these cornerstone digital
into the mobile tipping point for videos were socnet-enabled. A experiences, we might recommend
retailers and consumers, no mobile- blog without a content strategy for our book, The Open Brand: When
optimized site or mobile app meant inspiring consumer participation— Push Comes to Pull in a Web-Made
a lower On-Demand score. Retailers beyond reading posts—earned a World. The following four pages
can’t afford to send text alerts lower Engaging score. Finally, the are a handy cheat sheet, though,
and get back to business as usual: optimum Networked experience is highlighting the four experiential
web analytics firm Compete found earmarked by consumer creativity, types as interpreted by Best Buy,
that 37% of smartphone owners not the quasi-community of TopShop, Barneys and Burton
purchased merchandise via their brands camped out on the major Snowboards. Then we have the
phones in 2009. If there were no social networking sites so as to full OPEN assessments of fifteen
opportunity to customize virtual gift repurpose promotional messages. retailers, a much abbreviated
cards, which surged in the eleventh The September launch of iRunway version of our OPEN Scorecard
hour (Christmas Eve) and disproved by Wet Seal, which lets consumers service offering.
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HOLIDAY OPEN WATCH
6. Best Buy’s Idea Giftr taps the wisdom of
techie crowds. It’s an app that aggregates
gift ideas from real people—Blu-ray expert
Derek in San Francisco, for instance—that
make sense based on your Facebook
profile data. It also, of course, lets you
spread the word about your picks to
Facebook friends and family.
ON-DEMAND
efficiency, ease,
control, findability,
instantaneousness
Best Buy’s Pitch In Card was one
of an elite handful of group-gifting
ideas from online retailers. There
were just two drawbacks: only the
intended recipient could sign up for
the card, and there was no virtual
version of it. For a brand that knows
and sells digital, making consumers
shop with plastic seemed rather
retrograde.
Not everyone can make their way
through app downloads and mobile
data plans. Enter Best Buy Mobile’s
“Walk Out Working” program, which
sends folks out the store door with MEMORY LANE
the right custom mix of mobile Best Buy’s gift card last year
services and apps installed on their doubled as a mini speaker
new phone. By November, Best Buy for a digital music player
made sure that one of those apps (not included) such as the
would be Google Mobile, a hands- Apple iPod Touch or the
free way to search on the go: you Creative Zen. You don’t have
simply speak the search terms into to be a geek to know that
your smartphone and the results was one cool card.
come with locations nearest you. Puts
a whole new spin on “phoning it in.”
4
7. PERSONAL
acknowledgement,
dialogue,
customization,
privilege, popularity
Finally making it across the pond,
TopShop opened its NYC doors in
early April after a 7-month delay
due to the global recession. Their
web site was festooned for the
holidays, but we were looking for
some distinctively British retailing—
beyond that Kate Moss-inspired waif
style. And we found this: a Personal
experience awaiting consumers via
the Style Advisor suite of services.
Bridging clicks and mortar, it includes
use of private fitting rooms, in-
person styling and purchase advice,
birthday treats, and two gift cards a
year. For those young fans still not
feeling privileged enough, there is
the 10% student discount that we
thought only existed at campus
bookstores.
5
HOLIDAY OPEN WATCH
8. ENGAGING
participation,
belonging, immersion,
entertainment,
inspiration
Barneys’ Creative Director Simon
Doonan said “we pulled out all the
stops” this holiday season. And he
doesn’t just mean the “Saturday
Night Live” windows, which helped
the luxury retailer bid everyone a
“witty holiday.” Barneys brought
the same verve to their online
efforts, even debuting their new
blog, B-sides, mid-December, and
hosting a contest to design their
Twitter background for a $100 gift
card. Between store events galore
and special offers on Facebook,
the Cranky Elf on Barneys’ YouTube
videos and the irresistibly shareable
content of Barneys Babble, Barneys
might just be staging the luxury
sector’s comeback through a social
media pile-on.
6
9. NETWORKED
self-expression,
ego gratification,
portability, community,
meaningful change
He might not look like one of
Santa’s elves but Mr. Awesome
(so named by fans) was live on the
Burton Snowboards web site for a
very Networked holiday campaign.
Contests ran, fans exchanged tips
about the competition and the best
snowboarding gear, and winners
were announced via the live feed.
“Movie Monday” had fans calling in
every snowboard movie they could
recall, culminating in this art/graffiti
board. To win, fans throughout the
ten-day “Web Presents” had to visit
local stores selling Burton products,
interact on Facebook, and talk to Mr.
Awesome via a chat box.
Prizes included Burton products,
trips to ski resorts/competitions, and
a grand prize trip to the Olympic
Games. All in all, this Networked one-
trick pony was anything but, bringing
diehard Burton fans together for all
manner of holiday fun.
7
HOLIDAY OPEN WATCH
11. 15 BRANDS ASSESSED
Of the 40 online retailers we surveyed this year in APPAREL / ACCESSORIES
order to achieve some breadth of perspective, we’ve
American Eagle
chosen to feature fifteen. Nine of the fifteen retailers
are on Internet Retailer’s Hot 100 Online Merchants list Anthropologie
(indicated by the asterisk) due to their innovation. The *Charlotte Russe
remaining six are also keeping the industry on its holiday
Gap
(mistle)toes through the thorough application and
occasional refinement of best digital practices as well as *Net-a-Porter
the adoption of new and notable features in ecommerce *Zappos
sites, the mobile channel and social networking. That
said, as case studies, these fifteen assessments are COMPUTERS / ELECTRONICS
only as valuable as the object lessons they offer, so our
*Apple
selection was also based on the presence of learning
curves and areas for improvement we thought were
illustrative of challenges common to online retail now. DEPARTMENT STORE /
GENERAL MERCHANDISE
*Amazon
Macy’s
Nordstrom
JCPenney
*Sears
*Walmart
HEALTH / BEAUTY
*Sephora
HOUSEWARES / HOME
*Wisteria
* On Internet Retail’s Hot 100 Online Merchants
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HOLIDAY OPEN WATCH
12. Amazon product pages
DELIVER ON-DEMAND could stand an upgrade.
Aside from the main product
image changing by passing a
cursor along the thumbnails
(now including customer
images, a superb Networked
idea), there isn’t much to
make the experience a
single-page, dynamic, see/
learn/go affair on par with
other retailer product pages.
PayPhrase is a new way to verify a consumer’s account for The Amazon iPhone app enables
speedy purchasing. Consumers create a unique phrase (easier to consumers to visually search for related
remember than all those user IDs, according to studies) and tie it products by taking a picture of an item
to a 4-digit PIN. This is linked to their Amazon account, which is with the phone’s camera, which is then
pre-loaded with credit card and shipping address. uploaded to Amazon.com. Debuted
on the April release of their Blackberry
GET PERSONAL app, this feature, called Amazon
Remembers, helps consumers use their
phones to store items they want to buy
immediately or eventually.
Amazon’s legendary
recommendation engine lets
you get under the hood and
tweak what your past behavior
says you’d like next. This
feature and others must be
working: Amazon, Walmart and
Target captured 18.9 percent
more traffic among the top 500
retailers than last year during
the post-Thanksgiving period.
10
13. GREAT GOOD LACKING
BE ENGAGING
Stopwatch shopping…the seconds ticking away, the dwindling
supplies of killer deals. And what could be in that gold box? Ah,
the thrill of it all!
MEMORY LANE
Last year’s dynamic toy list was much more fun to
navigate than this year’s plain product shelf pages.
Did customers forget to shop as a result?
This year’s toy
list paired ratings
and reviews
with video, and
both are serious
conversion
tactics.
GET NETWORKED
Bucket lists, move over. Amazon provided us
with the bestselling, most-wished-for and favorite
gift products of ‘09, and introduced a Bestsellers
Archive in December as well.
You can glimpse the “real-time web” on
Amazon. While shopping, consumers
can confer with their social graph about
various products, thanks to a browser
No one does data
add-on called Glue. Currently, Glue can
like Amazon, with
be found on Amazon, but also IMDB,
these hourly updates
Last.fm, Wikipedia, Citysearch, Google on what ornaments
Finance, MTV, and many more. positively everyone’s
buying.
11
HOLIDAY OPEN WATCH
14. DELIVER ON-DEMAND
AE’s text alert program
has been hugely popular
since its November ‘08 After gathering consumer feedback on site features,
launch, so the September AE gave its checkout a makeover in time for the
‘09 launch of their mobile new year. Consumers can finally save payment and
site, with m-commerce, shipping info and enter codes at any time.
store locator and wish
lists for sending to
others had to be a hit
for the holidays. Deloitte
AE’s estimated 40% of 18-29
downloadable year olds would use their
and printable phones to shop during
coupons are the holidays. We’re
good-looking waiting for the mobile
enough to app and some brand-
remember to sponsored mobile social
bring to the networking because
store. Resource research tells
us millennials live a great
deal of their lives on their
mobile phones.
Quick Looks have been around since Gap debuted
GET PERSONAL them several years ago. AE’s version doesn’t improve
or advance the feature in ways millennials would
appreciate. How about a Send to Friend or Send to
Parents button?
Not only do AE fans RSVP as guests for events such as Friends
& Family and flagship parties—a common Facebook utility
rarely used by most fans—but once at the event, they can often
score customized apparel as well. These multichannel synergies
appeared to be working better for AE: same-store sales were
down 5% in October but up 7% in December, exceeding
analysts’ expectations.
American Eagle’s Wish List has high functionality, including
searchability and a feature allowing consumers to set priority
levels for each desired item.
12
15. GREAT GOOD LACKING
BE ENGAGING
To usher in the new year,
AE debuted the AE Closet,
a drag-and-drop outfit tool
that enables consumers to
increase or decrease a product’s
appearance so it scales with
You’ll never run out of model and celebrity videos other products and to bring the
and voices on the AE Scene blog, but there could image to the front or back—as in
be more content devoted to the participatory Powerpoint. The idea is to build
consumer, not just the spectating one. a closet of wished-for outfits,
and though it’s a little tricky at
first, the extra manipulability AE allowed visitors to view gifts in a catalog
should be very engaging for the or look book view because consumers
millennial market. increasingly want to act on inspiration at
the moment it strikes—thanks to branded
lifestyle imagery.
GET NETWORKED
AE’s holiday Look
Book prompted
networking
with the usual
Facebook and
Twitter buttons
but also an
Embed Code for
all those millennial
bloggers who
love showcasing
brand assets.
Blogger outreach done right:
fashion blogger Nana in
Wonderland was asked to style
three items from the ‘09 Holiday
Collection. Her expertise carries a
AE’s Student Union is as hyperlocal as you can different kind of credibility for the
get and its community-building tactics run the fun 15-25 year old AE target market.
gamut—from free airport shuttles to free tees on
clothes dryers. If the brand used these student
unions for crowdsourcing product and message
ideas, there’d be no stopping the shopping.
13
HOLIDAY OPEN WATCH
16. DELIVER ON-DEMAND
Anthropologie offers a
downloadable desktop widget
for daily inspiration. But no
podcasts, no mobile app, no
Buy Online—Pickup in Store,
and no mention of a mobile-
optimized site anywhere. Fans
A growing number of online retailers make their catalogs would love a bit more instant
clickable—taking consumers straight to the product page. Anthropologie’s consumers can gratification.
leap from their lush and lovely scenes to a page that has Facebook and Twitter share buttons
and alternate views for more contextual inspiration. The retailer’s products are also showing
up in Elle Dailies, trend-based emails with clickable images.
GET PERSONAL
Believe it or not, many online Overall, one of the least
merchants had no special way promotional retailers in our study,
to just wish consumers a great offering free shipping only on
holiday. Anthropologie’s “Let orders over $150, Anthropologie
It Snow” design was simple debuted a charming profile-
and sweet and though it based gift finder on Cyber Monday instead of deep discounts.
went to everyone, it felt like Submitting a ‘typed’ letter led to a personalized gift list whose
personal acknowledgment attributes could be changed if not perfect, and then printed or
of patronage. shared via Twitter or Facebook.
14
17. GREAT GOOD LACKING
BE ENGAGING
More moody merchandising that is seasonally and trend
appropriate—and easy to buy.
The Anthropologist.net is a truly inspired bit of branding about,
well, inspiration! Featuring cultural luminaries such as filmmaker
Jane Campion, clicking around the home page leads to an array
of artifacts that move the filmmaker—rehearsal photos, blog
entries—and the movie Bright Star’s trailer and web site. All of
which will, no doubt, keep Anthropologie’s fans engaged.
GET NETWORKED
MEMORY LANE
Talk about a fabulous tactic for elevating your style
Over 20,000 Kaboodle fans have also become authorities. Anthropologie’s Flickr tie-in let consumers
Anthropologie fans through the Kaboodle Brand Program. show What I Wore. We think this merchandising feature
should make a comeback.
The perennially hot denim category is, let’s face it, also
the one most prone to fit issues so a tough sell online.
Consumers want their blue jeans just so. Anthropologie
offers a rating and review from a Top 1000 Contributor—
and her description is nearly as good as a try-on.
15
HOLIDAY OPEN WATCH
18. DELIVER ON-DEMAND
Many of Apple’s products are inherently On-Demand and the
brand fully leverages this advantage with constant novelty. There
were some very rare limited time offers for fans this season, which
likely drove some of their impressive numbers: Hitwise, a website
research company, reported that traffic on the Apple iTunes store
was up 346% from the previous day in December. Total downloads
for the iPod Touch’s mobile software jumped 1,000% on December 25
from other December Fridays, according to a report from research
firm Flurry. It seems everyone wanted to play with their new i-devices.
Apple has to create an On-Demand experience
for hardware as well. They offered gift guides, free
next-day shipping—a real standout from most
shipping offers, extended store hours, Express
Bay pickup, and Reserve Online-Pickup in Store
right through December 24. Business Week’s
Customer Service ranking for Apple? #4.
Emailed receipts are better for our increasingly digital
record-keeping.
16
19. GREAT GOOD LACKING
GET PERSONAL
Outside the top 20 retailer list, The Apple Store site saw an
impressive 71% increase in visits on Cyber Monday 2009
versus 2008, reports Hitwise. iPod engraving along with a
personalized gift card—that’s the way millions wanted to
celebrate the holidays. They’ve been personalizing their
music for years now.
Configuring a custom Mac, designing books and calendars with iPhoto: all
Apple ways to personalize a consumer’s products, thereby staying intimately
connected to the brand.
Apple’s One to One program means
personalized service all year round.
17
HOLIDAY OPEN WATCH
20. BE ENGAGING
To promote its relatively new iTunes LP format (it displays
lyrics, liner notes, performance videos, photos, etc.),
Apple posted a 20-song Holiday Sampler. Free for one
week, Apple said it would “soundtrack your holiday.” Not
everyone was thrilled with the selection, which included
Barry Manilow singing “Jingle Bells. Everyone is truly a
”
critic in the Apple-Engaged universe.
The iTunes Facebook page asks terrific questions
about cultural items—music, movies, TV shows.
The better the questions, the bigger the feedback.
Note the number of responses.
iTunes has been releasing new celebrity
playlists since 2003, and they’re big hits,
keeping consumers coming back for more,
especially when alerted about new content
on the iTunes Facebook page.
18
21. GREAT GOOD LACKING
GET NETWORKED
For a brand known—at least until the App Store—
for proprietary closed platforms, this is a great sharing
feature and one we’ll see more of with the real-time web.
Apple’s On Campus Facebook tab brought the
brand home for students across the nation. With
campus rep profiles, featured student films, a
local event calendar and polls, there were plenty
of ways for fans to come together.
More than 3 billion apps
have been downloaded
from Apple’s App Store
by iPhone and iPod
touch users worldwide.
Making your way
through them could be
overwhelming were it
not for the Networked
experience of Customer
Ratings and Reviews
and an ever changing
lineup of Staff
Favorites on the
Store’s homepage.
Apple’s Networked consumer experience is the
gift that keeps on giving. Moderati’s release of
Xmas Romplr: Remix, just one of the many third-
party apps created for the holidays, let users
remix classic tracks including “Dance of the Sugar
Plum Fairy.” Songs could be saved or—better
yet—uploaded to Facebook or sent in the form of
e-cards to friends and family.
19
HOLIDAY OPEN WATCH
22. DELIVER ON-DEMAND
Millennials who love to create and share
outfits? Charlotte Russe needs an app
for that. In the meantime, CR fans joined
other mobile holiday shoppers on the
iPhone app from NearbyNow, which
pairs the gift guides of retailers such as
Macy’s, Bon-Ton, The Buckle and CR with
magazines such as Seventeen, Marie
Claire, and Cosmopolitan. Once a product
is chosen, NearbyNow finds the nearest
store or enables m-commerce. Mark
Dixon, VP of product management at
NearbyNow, says consumers are 17 times
more likely to buy from a nearby store
than buy online. Well, for now, anyway.
Charlotte Russe dropped its gift card right into its gift guide.
And why not? E-card recipients could have their gift “in hand”
instantly, unlike several other retailers, whose e-cards required
a 24–48 hour wait.
GET PERSONAL
Just a few questions to reveal what the consumer is most
interested in and Charlotte Russe emails can be that much
more personal from the start (and only get better with purchase
data). Why not take it one step further? Ask about color, most
important wardrobe needs, etc. Companies built on personal
style profiles such as Covet and Shopittome are proliferating, if
not for the individualized recommendations, then for the sheer
fun of self-discovery: am I more this or that?
A social networking strategy can
be both Networked and Personal
with the right consumer limelight
tactics. Charlotte Russe makes
heavy use of contests—a Fan of
the Week!—whose winners strut
their CR style on the CR Facebook
page through uploaded photos,
video and personal narrative.
Consumers also answer tweeted
trivia questions and collect prizes
on YouTube and the web site.
20
23. GREAT GOOD LACKING
Premium denim and knits brand People’s Liberation gets the full
BE ENGAGING Look Book treatment but also some irresistible sonic branding,
as a fashion video plays to “Classy Girls are Back” by the
Nervous Wreckords.
Shop by Occasion, Trend or Outfit: this is searchandizing that makes sense for the target audience, though the outfit tool lacks the
interactivity of some more recent entrants from competitors. Making up for this—and then some—is CR’s Shop Together, which sends
word via Facebook, Twitter, MySpace, email or IM instructions that you’re online and looking for a shopping pal.
GET NETWORKED
CR is one of the few retailers to use MySpace for what it
does best: blend celebrity, trends, friends and music.
Charlotte Russe grew 633,333% from 2007 to 2008,
according to Internet Retailer. And they’re still growing
through innovation and heavy social networking. On
December 17 this season, they launched their new
avatar-based social network/virtual world. Wow.
21
HOLIDAY OPEN WATCH
24. Gap leveraged its brand family
members—Banana Republic, Athleta,
Old Navy and Piperlime—with Quick Links
to “neighboring” brands also carrying
DELIVER ON-DEMAND the product being searched. Consumers
could also take advantage of sales and
It’s been a fairly good year for Gap, as the brand free shipping across all five brands.
celebrated its 40th birthday. Sales were up 17% in This is as close as retailers came to a
the 2nd quarter, though sister brand Old Navy was universal login, with the exception
the holiday winner. Gap’s retooled Gap Style Mixer of Amazon’s Payphrase. OpenID
mobile app likely contributed to sales and buzz, as implementations didn’t make
it now features m-commerce and community sharing retailers’ to-do lists this
with Facebook friends, and a geo-aware special holiday season.
discount for those who open the app near a Gap store.
Snow wiped out an estimated $2B of store sales on the
East coast the final weekend before Christmas so retailers
used their sites to
announce longer
store hours. But online
merchants also helped
themselves: comScore
reported that online
spending grew 13%
that final weekend
over last year.
GET PERSONAL
Gap shoppers could put a personal touch on their holiday
e-greetings, as the cheerleaders held up whatever name was typed
in—no matter how exotic—and delivered it one of three ways.
There’s room for improvement of the personal Gap experience—
with no customization options, no co-shopping, no interesting ways
to put your profile on record. But the Gap Jeans Challenge earlier
in the year is a great example of what to do more. Partnering with
social shopping site Polyvore, contestants were asked to style the
jeans and answer a juicy, very personal question.
22
25. GREAT GOOD LACKING
BE ENGAGING
After a two-year TV advertising hiatus, Gap was back in a their web site, emails and magazines. The Cheer Factory
big way and made the holiday ad’s theme as multichannel as remained on the site long after consumers were finished with
possible. There were bus tours and plaid-clad cheerleaders the holidays.
everywhere from NY, LA, Chicago and SF to YouTube, Facebook,
GET NETWORKED
Gap loves pop-up
stores almost as
much as Target and
the latest in the UK
featured arttwork by,
yes, newly famous
fashion bloggers.
Philanthropy is itself a great networking platform, and
Gap partners with Product Red and Feeding America.
All those cheery videos on Gap’s Facebook page garnered
hundreds of thumbs up but also provided plenty of time to dig
the boots, which both the NYT and the LA Times reported were
Barneys Co-Op private label. Mmmm. Don’t they sell shoes at
Piper Lime?
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26. Some retailers gave just as much thought
to the On-Demand consumer experience
after Christmas. JCPenney offered an
DELIVER ON-DEMAND After Christmas Sale Wake Up Call for
mobile phones. Consumers could use
the store locator and check mobile alerts
once they awakened and were headed
for the mall. The widget was likely a
big hit among millennials, for whom
December 26 is a very big gift card
redemption day.
The September release of
JCP’s iPhone app builds on
JCP’s 2-D code reader was a
their Know Before You Go
pilot program implemented in
initiative by making weekly
select Houston stores as a mobile
deals and shopping lists
coupon reader—no more clipping
portable.
and having to remember to bring
the print version. The coupons
were scanned by a cashier
at checkout and offered big
discounts.
JCPenney enables consumers to connect with others
at the moment of adding merchandise to their bag.
We think perhaps this new On-Demand scenario
might distract from the shopping task at hand.
GET PERSONAL
JCPenney club perquisites are immediately apparent
to those considering membership in JCP Rewards
or the Portrait Studio Club: a KitchenAid Mixer
sweepstakes or a sizeable discount. Personal
experiences are all about special privileges.
24
27. GREAT GOOD LACKING
BE ENGAGING
Consumers liked sending
delinquent gift givers to the
doghouse last year so much
that JCPenney brought it
back—with more features and
more fun. Facebook Connect
helped build the Case Gallery,
as did multiple choice reasons
for the sentence. The retailer’s
YouTube channel had already streamed
over 125,000 views by November 20.
The funny takeaway? Tools bad. Bling
good. Over at competitor Sears, various
engaging features taught consumers:
bling good. But tools good too.
GET NETWORKED
The Angel Giving Tree let customers adopt a child or senior in
need (it was possible to specify their location, age range, and
gender) then shop for them online at www.jcp.com/angel. The
Angel’s needed items were emailed to the gift giver along with
info about free FedEx Ground shipping and drop-off locations.
Finally, to draw more people to the charity, Facebook Connect
let folks share their “Angel adoption” with friends.
Not yet a bona fide trend but it should be:
JCPenney offered an instant coupon for A Facebook holiday consumer content platform lets
fanning them on Facebook. JCPenney fans upload photos and their modes—or
odes—to joy.
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HOLIDAY OPEN WATCH
28. DELIVER ON-DEMAND
How many ways can I shop, filter, find? Macy’s had gift
guides galore, a dynamic online catalog, and TV spots
right on their site: no need to head to YouTube where
brands can get a little lost in the crowd.
Macy’s multichannel focus is
stronger than most, a strategy
CEO Terry Lundgren says is
driving their growth. Home
page space was constantly
allocated to a printable in-
store savings “pass”— note
the nicer word for coupon.
MEMORY LANE
Macy’s iPhone mobile app has everything from GPS-enabled store
Did this barcode scanner idea ever get
locator to in-store savings passes and easy checkout using the
implemented? If not, there are mobile
consumer’s Macy’s profile. Macy’s is also one of the major retailers
barcode scanners aplenty from vendors these that can be found on the new Free Shipping iPhone app, which
days, including Red Laser and Snappr. helps consumers find coupon codes for price discounts as well as
shipping deals—so they can decide whether to buy online or off.
26
29. GREAT GOOD LACKING
GET PERSONAL
Many major retailers offer digital photo
services from their web sites but Macy’s
has applied that process to gift cards—
a great personalization idea. And if you’re
on the receiving end of one of these
cards, you can check the balance online.
A perennial gift idea—but one notoriously difficult to
get right—is fragrance. Macy’s offered a great online
survey over the holidays to heighten your chances of
choosing the right notes.
Macy’s high functionality wish list allows sorting, the ability to move items
among multiple lists, tracking needs/purchases, and sharing with friends
via email. Who knew wishing could be so organized?
For those who want some face time, Macy’s lets you
schedule individual appointments with style advisors
who will help determine your personal style profile—
and offer first dibs on your sizes and favorite brands.
Signing up can be done via email or 1-800 #.
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30. BE ENGAGING
Macy’s “Believe” campaign won over the nation and showed retailers what
“seamless” looks like when it comes to integrated multichannel campaigns. To
contribute to the charity Make-a-Wish Foundation partnership, children had to
mail a real letter in a real mailbox in a Macy’s store. Where’s the digital in that,
you ask? Santa’s stationary was downloadable.
Who knows how to tie a fashion trend to a charity?
Macy’s does. Their Fall 2009 Come+Together is about
mix and match fashion and Feeding America, their
national anti-hunger partner. Celebrity-studded TV
spots were embedded right into the catalog pages!
28
31. GREAT GOOD LACKING
GET NETWORKED
Twitter profile? Check. YouTube channel?
Check. Facebook presence? Check.
Reasons for people to join or follow
each? Check. Some of these networking
initiatives were launched just prior to the
holiday season and Macy’s wanted the
world to know about them. Hence, the
display ads—among other things—to
spread the word!
Here’s a great Facebook question to tie into Macy’s National Believe Day,
December 11, the Believe consumer stories on Macys.com, and the CBS
premiere of the new original animated special called Yes, Virginia.
Macy’s is motivating
consumers to write
reviews with a big
fat gift card drawing.
Good idea.
Project Runway designers vie for the prize:
having a Macy’s INC private label dress
made and sold.
Now that’s a serious drop-down social
networking menu. And right onto the one-
click Macy’s catalog.
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HOLIDAY OPEN WATCH
32. DELIVER ON-DEMAND
Net-a-Porter’s gift guide had
enough of the rare and unexpected The retailer’s mobile iPhone app
to work for those who already have was way ahead of the luxury pack,
everything, though not enough to offering almost everything the
rival Neiman Marcus’s. Still, who site does without overwhelming
else offered legendary footwear the small screen, and making sure
designer Christian Louboutin shoes consumers can shop new arrivals
for Barbie? (They sold out in one twice a week.
day, by the way.) This has to be one of the stronger confirmations that
wealth went stealth during the downturn and, for all
those affluent shoppers who’ve discovered digital, aims
to stay that way. Brown bag deliveries same day for
London and New York? Très on-demand.
The new full-featured
GET PERSONAL Wish List is only
visible to those
who sign in. You
can drag and drop,
print, email, name
so as to remember
the ensemble or
occasion you’re
planning for, and,
of course, buy your
inspirations.
Anyone could join the retailer’s knitting circle, as these
Twitpic-uploaded and Facebook-showcased event
photos testify.
30
33. GREAT GOOD LACKING
BE ENGAGING
Videos (some with music), most with product hot spotting on Net-a-
Porter’s destination site, are also being served on YouTube, including
the latest look at the iconic LBD—Little Black Dress.
The e-retailer’s content is a notch above
most other apparel retailers; it helps to
have a founder with a fashion journalism
background. Net-a-Porter pioneered the
ecommerce site that is just as much an
editorial one.
GET NETWORKED
The Facebook page repurposes all the retailer’s assets and
throws in a little blogger love to boot.
Feeling a part of the community of fashion
designers isn’t a stretch for Net-a-Porter fans, so
knowing what was on those designers’ holiday wish
lists was a nifty networking idea.
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HOLIDAY OPEN WATCH
34. Nordstrom e-gift card recipients got theirs within 4 hours
of approval.
DELIVER ON-DEMAND
There was light-hearted multicultural messaging from
Gap’s Cheer Factory. But Nordstrom took it one step
further, publishing shipping schedules for three of the
major ways to celebrate the holidays.
Exclusive music
compilations
from Nordstrom
can be sampled
on a media
player. As the
retailer put it, try
before you buy,
or just enjoy the
music while you
shop the rest of
their site.
GET PERSONAL
Nordstrom doesn’t have a mobile app yet
but did offer its Gift Guide through mobile
shopping concierge NearbyNow, which
directed consumers to the nearest store.
Nordstrom made the top ten on the NRF-sponsored Customer’s
Choice survey of the best retailer service, regardless of channel.
It’s no wonder. The retailer synonymous with personal attention
offers plenty of On-Demand features, such as an RSS feed, Buy
Online, Pick Up In Store, privacy settings on Wish Lists, and
style advice from real experts on staff. Here, the retailer profiles
a Manager of Personal Stylists, who explains the first step in
“updating your look” and determining your signature style.
32
35. GREAT GOOD LACKING
BE ENGAGING
Free site downloads
of gift tags,
ornaments and
seasonal decorative
paper birdhouses
in the Christmas
Nordstrom catalog
kept the whimsical
holiday theme
engaging—and
crafty types busy.
Nordstrom’s blog “the thread” is the place to go for
inspiration, with videotaped designer interviews and now The Fashion Mixer is an Engaging
the high-energy, millennial-focused BP.TV., as well. experience that starts with the
palette expertise of a Nordstrom
Fashion Director, once again putting
a real individual into the digital mix.
GET NETWORKED
Reviews are
encouraged—and
so is sharing a little
about the reviewer
herself. More self-
expression, more
happy Networked
The Networked experience at Nordstrom could use a little customers.
boost, with more opportunities for showcasing customer
creativity and sharing responses to meaningful questions
on the brand’s Facebook page, for starters. How about, “Are
you heading some place warm? Send us your vacation spot.”
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HOLIDAY OPEN WATCH
36. DELIVER ON-DEMAND
The Sears2go mobile site lets consumers browse,
purchase and schedule delivery or pickup for major home
appliances. A washing machine from a mobile phone?
No spin cycle in this customer journey. Sears Holdings
spokesman Tom Aiello reports that usage of the mobile
site and mobile app were up considerably during Black
Friday weekend.
The Blue Crew is the embodiment of Sears’ On-Demand experience.
They were working overtime this holiday, answering questions by
pointing shoppers to the appropriate service.
ShopYourWay tied together Web shopping, in-store Sears helps loyal consumers bypass the holiday shipping charge
shopping, mobile commerce and personal shoppers fluctuations with a year-round ShipVantage program.
available via phone, chat or email. Sears’ customers had a
360 degree On-Demand experience.
34
37. GREAT GOOD LACKING
GET PERSONAL
Sears’ Gift Finder, which included a Virtual
Gifts Sweepstakes, gave shoppers a
quiz to send to friends and family from a
microsite at Sears.com or Sears’ Facebook
page. Once the gifts were picked, people
sent virtual gifts through a Facebook
app, thereby entering both sender
and recipient into a drawing for one of
ten pairs of real prizes valued at over
$24,000. Quirky, fun questions made the
experience feel personal.
One login and one profile is a year-round
Personal advantage, enabling Sears
consumers to keep their purchase histories
and lists for Kmart, mygofer, and Craftsman
as well.
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HOLIDAY OPEN WATCH
38. BE ENGAGING
The clever Gift Faceoff let consumers select up to five
gift ideas to compare search results using custom Google
Trends integration. The top gift contestants also let you
know what Sears thought were hot gifts to give. Think
tools, electronics and bling.
Even Sears’ layaway plan
gets a video treatment—
here, Santa’s elves have just
discovered it.
Black Friday Doorbusters happened every Saturday and
Facebook fan deals popped up randomly—keeping
consumers coming back to Sears again and again.
Sears’ Always Good News offers
videos about hula hoopers in
Cambodia and anything else that is
occasionally useful but generally just
for lifting one’s spirits. Sears’ Twitter
followers are reminded where to get
their daily dose.
36
39. GREAT GOOD LACKING
GET NETWORKED
Sears really keeps the networking going with video on five different
YouTube channels, featuring how-to clips including cooking demos, Sears was one of several retailers that
some fun pool playing contests, and military well wishes. And, most stepped up their enticements to fan them
important for the Networked experience, consumers themselves. on Facebook. Here, a Blue Crew guy has
been replaced by very enthusiastic elves.
The retailer’s long-standing Heroes at
Home packs a big philanthropic wallop,
showing how many and exactly who are
being affected by people’s generosity.
The Give Together platform by Sears
was one of the best of a growing number
of group gifting options. Consumers
could track contributions to see how
close they were to their goal.
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HOLIDAY OPEN WATCH
40. DELIVER ON-DEMAND
How do you want your On-Demand daily Sephora
fix? The retailer offers a mobile phone widget (but
no app yet), a beauty portal on iGoogle, and an RSS/
Atom feed. Do they have the content to keep these
channels flowing with beauty expertise, events and
enthusiasms? You bet.
CashStar reported that online gift card
sales increased more than twelve-fold
(1129 percent) between Black Friday
(November 27) and Christmas Eve.
Sephora keeps consumer interest in
theirs with a dual-mirror compact, no
expiration date, plus the ability to check
balance and transaction history online.
Ecards and More Ways to Shop
made the destination site a
good place to be during the
holiday countdown and the
integrated emails didn’t let you
forget it. Sephora Favorites
and Top-Rated Products give
consumers both peer and
expert opinions as filters:
when one set of reviews isn’t
convincing or helpful, the other
almost always is.
38
41. GREAT GOOD LACKING
GET PERSONAL
Sephora University: How many other retailers wish their training
programs could create a “credentialed” staff and build brand equity?
Sephora’s beauty experts, however well-trained, are still a tad hard to
find on the site. They’re much easier to spot and take advantage of in-
store, as anyone knows who’s stared at the mascara just long enough
for a great on-the-spot consultation.
No social network buttons to share My Favorites with friends yet.
And a place for skin regimen reminders or notes would enhance this
personal brand experience beautifully.
Sephora = samples on steroids. You really know
this if you’re A Very Important Beauty Insider,
with points and holiday coupons to spend—while
A registry for events (requiring beauty gifts, of course) has an earning your right to, yes, even more samples.
inspiring dropdown menu—including “Dropped 2 Dress Sizes.”
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HOLIDAY OPEN WATCH
42. Expert how-to videos can be found on
BE ENGAGING Sephora’s blog, on their Facebook page,
and on YouTube.
At it since January 2004, Sephora’s
Beauty and the Blog is one of the
grande dames of social media, asking
its readers genuinely interesting
questions, debuting Sephora exclusives,
showcasing philanthropic partnerships,
wearing their Technorati ranking badge
proudly, featuring individual bloggers,
and showing link love to 35 other beauty
and style bloggers. So where’s the
mention on Sephora.com?
40
43. GREAT GOOD LACKING
GET NETWORKED
Sephora has 362,306 fans (and
counting) on its Facebook page
and one of the reasons is clearly
the story-based sweepstakes. Tell
a good enough one on Facebook
or Twitter or on the Sephora Claus
microsite this holiday? Win great
prizes and a little celebrity to boot.
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HOLIDAY OPEN WATCH
44. DELIVER ON-DEMAND
The new mobile application lets you take a
photo of your wall or available space and
Walmart determines how large of a television
Walmart, Walgreens and other digital photo developers start the you can accommodate, then suggests the best
process online while helping consumers express themselves with televisions to fit in that space. This unique
custom products that are also points of pride. “Look what I made feature is a great way to generate buzz about a
from the computer in the kitchen!” Walmart’s Photo Center has a nifty new mobile app. Judging from the Facebook
mobile component. comments about it, though, there might be
a need for a Blackberry or other smartphone
implementation.
Four ways to stay current with
Walmart’s deals.
MEMORY LANE
Last year’s simple holiday mobile alerts,
which launched December 1 ‘08,
remind us just how far the industry has
come in a single year.
Walmart helps consumers shop their local stores with everything from location
information to local ads and Site to Store shipping.
42
45. GREAT GOOD LACKING
GET PERSONAL
The retail giant’s Wish List functionality is fairly
basic except for one feature: access to Amazon-like
customer favorites. Not many such favorites were
listed yet so time will tell if this is a helpful way to
build a wish list or registry.
“Dear Walmart” letters, read by employees, and shared via video on
Walmart’s Facebook page, are deeply moving. It might not be about your
life experience but it feels personal just the same. Consumers can learn about Q&A participant, and
can rate their answers’ helpfulness at Walmart.com.
Resource research shows that knowing the reviewer
has something in common with you enhances the
value of this type of Networked experience.
At Walmart.com, shoppers rate answers on their helpfulness and can find
out more about those who post responses.
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HOLIDAY OPEN WATCH
46. BE ENGAGING
Cause marketing at Walmart is impressive
any time of the year, but during the holidays,
it provides ample reason to spend more time
with the retailer—and the people Walmart
helps. Sharing buttons—including the call
to action button “Volunteer Match”, video,
blog entries on Walmartgiving.com, and the
WalMart Gives Back badge all add up to an
exceptional Engaging experience.
Walmart’s YouTube channel has something
for everyone. This 4 star-rated video picked
up 3,500 views in no time.
Walmart and a handful of other retailers
kept the promotional party going all week
long. Consumers following Walmart on
Twitter for daily deals were already in place
to learn about Cyber Week specials.
44
47. GREAT GOOD LACKING
GET NETWORKED
For Walmart Gives
Back, there are 15 ways
to share. But when
it comes to socnet
buttons for Walmart
shopping, consumers
can’t yet share product
imagery or descriptions,
only reviews via
Facebook, Digg, and
Delicious.
Walmart helps consumers know what others
think through ratings and reviews and a friend
connector on the new mobile app.
This was one of the season’s most inventive
group gifting platforms. No stranger to
Facebook apps, Walmart put a lot of personality
into this Christmas List Workshop. People
need to know what friends and family desire,
so a platform that gathers that information
digitally is a natural Networked experience.
Walmart’s A Show of Support Facebook
application lets soldiers’ families and friends
go on record together with their love and
support—and a photograph.
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HOLIDAY OPEN WATCH