ChoiceStream

Consumer willingness to receive marketing information from retailers has reached a five-year high, according to the findings of a new study tracking consumer attitudes towards marketing. Of the 1,367 panel members (whose demographics reflect those of the UK), 95% say they “are happy to receive” information about the supermarkets and stores they frequent, up from 57% in 2005. Yet, in spite of the rising popularity of digital marketing, 51% of consumers rate direct mail as their preferred means of being contacted by retailers, pushing email into second place, favored by 38% of consumers. Commenting of the findings of the report, Robert Keitch, chief of Membership & Brand for the DMA, said: “Consumers today are highly media literate and understand marketing better than ever before.”Read the full article at TalkingRetail

Retailers know the first purchase by a new customer is important, but more important is when that customer comes back for a second and third purchase. This story from ClickZ notes that "replenishment" email messages are vitally important and can "help you bring back that customer with relevant messages that relate to the purchase." The article offers some tips to make these "replenishment" emails even more effective including advising retail marketers to: (1) Warm up both prospects and new customers gradually; (2) Match replenishment e-mails to the product cycle; (3) Use customer profiles to tailor a more personalized effort and (4) Use collected data to refine email messaging. The final thought is that it takes time to get "replenishment" emails right but if done correctly, the can "deepen your relationship with your customers and bring them back for that all-important repeat purchase."Read the full article at ClickZ

Retailers can look forward to a better 2010 than last year, but still face a number of obstacles, including the prospect of higher federal taxes on their goods and their own ability to contribute the economic recovery by creating jobs. That’s the word from retailers attending the annual National Retail Federation Big Show in NYC this week. Mark Zandi, chief economist of Moody’s believes overall retail will grow 3% to 4% this year. Zandi and others said retailers are focusing the money they do spend on programs that clearly demonstrate a concrete return. Strategies include tracking potential customers as they surf the Internet to create customized messages for them on retailers’ own online sites. “We’re looking at how we can be more targeted in how we talk to our customers,” said Barbara Hagen, senior marketing director for brand strategy and communications at Best Buy. “It’s a way of increasing loyalty and retention.“Read the full article at The Wall Street Journal

According to this bylined piece from MediaPost, “There is something missing from contextual advertising ... context!” The article mentions the basis for contextual advertising is a desire to make advertisements in some ways relevant to the content being reviewed by the Web surfer. However, the author proposes that contextual advertising may not be reaching the intended target because “for every world in the English language, there are approximately 2.4 alternative meanings. Added to that are the countless company names, product brands, domain names, people’s names; the average soon increases to nearly four alternative meanings.” In failing to take this into account, there are obviously glaring anomalies. Add to that ad delivery blighted by poor execution and you could have a less than effective contextual ad campaign. The author argues semantic advertising is the way to go as technology examines the Web pages for themes and simultaneously matches the theme with the most relevance to the core subject of the ad -- linking the two together. Read the full article at MediaPost

Retailers in the U.S. are convinced that customer relationship management is one of the most important aspects of their business. That’s why many retail analysts believe the most critical CRM components for retail success in 2010 inclue management of customer data and support of multichannel sales and marketing. Mike Gatti of the Retail Advertising Marketing Association (RAMA) notes retailers who successfully utilize CRM programs, "understand who their best customers are, they have also helped them focus their spending. [They] can pinpoint [their] sales programs better and be more effective in areas like targeted direct marketing." Another observer, Janet Murphy of Ogden Associates put her observations for CRM success for retail in 2010 thusly: "While retailers will be watching IT expenditures with particular care in the coming months, they will continue to invest in processes and technology related most closely to their most fundamental business strategies."Read the full article at CRM Buyer

The NY Times featured an interview with Tony Hsieh, the chief executive of ChoiceStream client Zappos.com. The interview focuses on Hsieh, “for us, at Zappos, we really view culture as our No. 1 priority. We decided that if we get the culture right, most of the stuff, like building a brand around delivering the very best customer service, will just take care of itself.” Hsieh also notes that, “One of our values is, “Create fun and a little weirdness.” He goes on to note, “Probably the most important thing I did was try to encourage employees to come up with their own ideas for building the culture.” To read the rest of Hsieh’s thoughts on creating a corporate culture that works, click the link above.Read the full article

One of the trends in online advertising last year was undoubtedly the use of data. From leading agencies, ad networks and publishers to the FTC, everyone wanted to have their say regarding data, who owns it and how it will be used. Some of the predictions for 2010 for data include: (1) The recession will end, but post-recession won’t be like it was pre-recession and every campaign (even branding campaigns) will have a performance metric and every campaign will eventually use some type of advanced targeting data; (2) Ad agencies will increase their use of data and; (3) Behavioral Optimization will become more prevalent thanks to the use of advanced algorithms and machine learning technology to add an additional layer of optimization to behavioral targeting. Read the full article at MediaPost

With 15% to 30% of all visits to U.S. websites originating from abroad, Internet use growing exponentially in developing markets and expat communities fast becoming important niche audiences, astute advertisers and publishers have an opportunity to exploit this unleashed global potential, both from the buy-side and the sell-side. The key to bringing all this together to create a more lucrative business environment for those companies and a more relevant, rewarding experience for those consumers going online is “localization.” To succeed, localization requires an in-depth understanding of that goes beyond language and linguistic nuances including cultural differences, local regulations, currencies and payment methods… and these are only the tip of a very large iceberg that involves myriad subtle distinctions and unfamiliar parameters that can make or break an international advertising campaign. The greatest challenge for advertisers is that almost everything they have learned about their home markets is, for the most part, irrelevant in other regions of the world.Read the full article

A number of retailers raised earnings forecasts this week after reporting healthy December sales gains, the fourth month in a row of year-over-year sales increases. Total holiday-season sales grew 1.8%, overcoming a tepid start in November with a late surge before Christmas according to one report. The results has left many retail executives optimistic that they weathered the worst of the decline in consumer spending and are now better prepared to profit in months to come. “There is more stability and more visibility,” Macy’s Chief Executive Terry Lundgren said in an interview. “Last year, it was like we were all falling off a cliff, grabbing for vines to catch on to something, because we couldn’t really see what was happening.” Retail economists now predict solid growth for 2010. The improvement was seen broadly. From department stores to teen retailers to discount mass merchants, three-fourths of major store chains reporting December sales exceeded low analysts’ expectations.Read the full article at The Wall Street Journal

Online retailers are back in the game, with holiday sales coming in just short of 2007 levels as e-commerce sales for the November and December period rose 4% to $29.1 billion after a down year in 2008. The online world had several advantages this season. Major winter storms before Christmas encouraged some shoppers to turn to online outlets while bargain hunters increasingly turned to online outlets. With a promising holiday season on the record, retailers are optimistic about the category in 2010. Based on a survey of 50 online retailers, Credit Suisse estimates e-commerce will grow 10% in 2010 compared to 1% in 2009. Electronics and computers will drive much of that growth according to Credit Suisse.Read the full article at AdAge