Back to School Begins in June

So soon? Staples has had backpacks and other school supplies prominently displayed in the front of its stores for several weeks--even before school was over!

Other retailers are already promoting back-to-school items, as shown here on Zappos and Dick's today. Visit any website catering to teens and parents (Old Navy, Walmart) and you'll see some school-related items featured.

Rushing the season? Partly...this is a definite trend for all retailers as they try to get a jump on the competition. It's also a function of changing consumer behavior, with parents being price-conscious and interested in bargains, even two months early.

Target has been mounting special college programs for years, and has begun opening smaller stores very close to college campuses, making it convenient for students and parents to browse and buy. "Growth on college campuses and in urban markets is a priority for Target," says a Target VP.

Go into any housewares/home goods store (Bed Bath & Beyond for instance) and dorm room products are the big focus, with helpful checklists and ideas for parents and students. IKEA has its dorm website ready, with body copy that begins: "Ready or not, fall's on its way, and with it, a new school year."

Amazon Prime Day in July may very well be a key turning point in buying for back to school. Not surprisingly, Walmart is battling Amazon on this front for a major piece of the pie. States also recognize the trend toward earlier purchasing and are moving their tax-free weeks earlier to accommodate consumer buying preferences.

Students may roll their eyes when they go into a store and see school-related products. But retailers want to get on the parents' radar and make an impression as the store or website to visit for back-to-school items. So while some people are thinking pool accessories and pickle ball, others are thinking pencils and packs. For savvy marketers, the plan is to present a solid value proposition, polish brand image, and encourage buyers to go ahead and buy--early.

Amazon vs Legacy Retailers

Legacy retailing continues to look for ways to compete as Amazon innovates in online retailing. Walmart, the world's largest legacy retailer, is cutting corporate jobs to get leaner. It's also reorganizing its e-commerce leadership while it integrates its acquisition of grocery retailer Jet.com.

Above, two news releases from Jet.com's "press" section, showing the acquisition just weeks after Jet celebrated its first anniversary last year. In fact, Jet.com has itself acquired an e-commerce firm known for online shoe retailing in competition with Zappos.com (which is owned by Amazon, of course).

Meanwhile, Amazon is expanding--on a large scale. It recently announced plans to hire 100,000+ employees during the next 18 months. The book industry is coming full circle with Amazon's plans to open additional Amazon bookstores. Which means that the innovator that disrupted book retailing is now joining brick-and-mortar retailing, a very different industry all these years later now that consumer behavior has evolved.

Holiday Retailing 2013: The Year of the Pins

Pinterest is front and center for many retailers during this holiday shopping season, leveraging the power of social media to showcase products that are popular "pins."

Above, Target's Pinterest board (via New York Times), showing "Pins You Love" at top left, and other products by category (sweets, fashion, food, gifts, etc.). Target's CEO explains that Pinterest is "where the customer is" and therefore, “We ultimately concluded that if that’s the way the guest is going to live and shop, then we want to be a showroom. And we love showrooming — provided we can capture that sale.”

Zappos is one of a growing number of retailers partnering with Pinterest to showcase the most popular of their pins drawn from Pinterest every day. Nordstrom (which has more than 4.4 million Pinterest followers) is promoting products in its stores that are the most popular on its Pinterest board.

Happy pinning!

New Trends in Store Retailing

One new trend in store retailing has made worldwide headlines: Charging for services that are typically free for in-store browsers and buyers alike . . . like the ability to try on clothing before you buy. Vera Wang had tried a $500 appointment fee for brides-to-be who wanted to try on wedding gowns in its Shanghai store. Public backlash prompted the company to eliminate the fee, which was intended to prevent Wang's exclusive designs from being stolen and remade into cheap knockoff versions in China.

Good riddance to this trend. Charging to try things on will only send more shoppers to their computers or phones for online shopping, because e-stores like Zappos will pay the postage both ways--no questions asked--if you buy shoes, try them on, and decide to return them. Of course the cost of shipping is included in the price, and for many customers, the convenience is well worth the price.

This photo of Hointer, a clothing store in Seattle, illustrates a second new trend in retailing: Using technology to accommodate customer behavior and preferences. Rather than have customers deal with (sometimes overly attentive) salespeople, Hointer displays apparel with QR codes attached. Employees are available for questions or assistance, but the customer is in control here.
 

The customer downloads Hointer's app and scans the QR code of each item he or she wants to try on (right). By the time he gets to the fitting room, the pants are there. Ready to buy? There's an app for that. No pressure or hassle, shop at your own pace. "It’s not about fast shopping. It’s about an easier way to shop," explains Hointer's founder.

Bad News Travels Fast--So Be Good

News about bad customer experiences travels faster and farther on social media than ever before. A new American Express survey shows that people who use social media will tell 53 people about a bad customer service experience but tell only 42 people about good customer service.

The top four complaints about customer service: (1) rudeness, (2) being passed from department to department without resolving the issue, (3) having to wait too long for resolution, and (4) forcing consumers to repeatedly follow up to get a problem resolved.

This global survey revealed the increasing use of social media worldwide for customer service. In India, for instance, more than half of the respondents have tried social media to get attention for a service problem.

Take a cue from Zappos, which has a dedicated Twitter customer-service account, and more than 12,000 followers (and following). When problems crop up, as they do, Zappos uses every communication tool to inform and reassure customers. After Zappos was hacked and millions of customer names were exposed, the company first alerted employees to the problem and then publicly posted reports about what had happened and what the company was doing to fix things fast.

The bottom line for company bottom lines: Do your best on customer service and when problems arise, get them resolved as quickly and politely as possible.

Zappos Wows with Service

Although I'd heard about the legendary service at Zappos, I hadn't experienced it first-hand until last week.

During a purchase and later an exchange, I was impressed not only by the variety of choices on the site but also by the knowledge and friendliness of the Zappos employees I spoke with (yes, I used old-fashioned phone calls to discuss the shoes and the return procedure).

Also impressive: Zappos followed up with an e-mail to ask about my reaction to the phone rep I'd talked with.

Here's the survey in its entirety, sent by a Customer Loyalty Lead:

>>Do you remember your conversation with _____ from Zappos.com?
>>
>> a. Yes, it was awesome
>> b. Yes, but vaguely
>>
>> How would you rate the service you received? Please elaborate if possible.
>>
>> a. Fantastic - I wish I could speak with _____ every time I have to call Zappos
>> b. Standard - This is the service I receive whenever I contact a company's customer service
>>
>> Do you have any points of feedback regarding your call/conversation with ____ from Zappos.com? Please list details.

I responded with comments and specifics and got another note thanking me for participating in the survey. No wonder Zappos is known for its service--every detail counts.