The Federal Trade Commission (FTC) made a number of changes to its regulations and guidelines in 2013.  Specifically, the FTC updated its “.com Disclosures” guide to provide advertisers with more specific instructions for complying with the FTC’s Guides Concerning the Use of Endorsements and Testimonials in various forms of new media. Moreover, the updated guide

Kroger has always been an innovator. It was the first store to combine meats and groceries under one roof, and the first grocery store to have its own bakery. Kroger pioneered the use of optical scanners in the checkout aisles and was one of the first grocery chains to open superstores, a move that has helped it weather competition from big box stores like Sam’s Club and Costco. That drive to innovate has helped make Kroger the nation’s largest grocery chain and the second largest retailer in the country after Walmart.

But, what has really driven Kroger’s recent success is its commitment to the customer experience, and particularly how well it has applied its customer loyalty program. Kroger launched its “Kroger Plus Card” program in 2003. In 2010, Kroger partnered with Shell gas stations allowing customers to redeem points earned on their Kroger Plus Cards for fuel. Well over two million customers use Kroger’s shopping app, which allows users to download coupons, sort coupons by relevance, sync coupons with their shopping lists, monitor their Kroger Plus reward points, and even refill prescriptions.

Last year, a study by Maritz Loyalty Marketing found that Kroger had the highest rated loyalty program in the grocery sector, with an overall satisfaction rate of eighty-three percent. In fact, ninety percent of register transactions are completed with a Kroger Plus card, and eighty-five percent of all United States households in markets where Kroger operates have a Kroger Plus card.

The Way I See It

  • As behemoths like Walmart and Amazon continue to gobble up market share – in everything from groceries to clothing to consumer electronics – I see more “traditional” retailers needing to double down on the customer experience in order to compete.
  • Successful competition is going to be increasingly dependent on maintaining an ongoing conversation with customers via the tools and channels they prefer, namely their mobile phones and social media.
  • Data – not just gathering it, but using it in novel and effective ways, and ways customers are comfortable with – may wind up being the biggest difference-maker for retailers.

The Way the Industry Sees It

I sat down with Natalie Ream, Vice President of Customer Communications & Marketing at Kroger to discuss customer service and customer loyalty programs as a way to differentiate.

What’s made your Kroger Plus program so successful? What have you been able to tap into about the way customers like to use these programs that your competitors haven’t?

Our Plus Card program is successful simply because of our ability to deliver real value, and to uphold the trust that our customers place in us as it relates to their shopper data.  Through our shopper card program we are able to capture and analyze shopping behavior, and then apply the insights we gather to create offers, discounts, and recommendations that are meaningful and relevant.  We are very careful to protect our shoppers’ data and their privacy.  Our customers have come to expect us to know them better, and they tell us that they look forward to hearing from us!

What’s the relationship between the Kroger shopping app and more traditional print coupons and circulars?  Will the app and social media eventually replace coupons delivered in the mail, by newspaper, or handed out at the checkout counter?

For more than ten years we have been perfecting our ability to deliver highly-relevant, personalized coupons for the products that our customers like and buy the most through our ‘Loyal Customer Mailings.’  We are now applying that expertise to the digital channel through our mobile app, which allows customers to sort digital coupons by relevance to them.  By applying real-time insight derived from their shopper profile, we can sort and deliver relevant offers based on what we know about a customer’s product preferences or lifestyle segment.  Because we have five generations of customers shopping with us – and because each generation and each customer is unique in terms of their preference for how we talk to them – our aim is to meet our customers and talk with them in the channel or channels that they prefer.

Continue Reading Kroger Gets Its Fuel from Customer Rewards

1896 was a big year – the first modern Olympic Games were held in Athens, Greece; the first x-ray was taken, and, of course, The ADVERTISING Club of New York was born. Located in the heart of Manhattan, The ADVERTISING Club is the industry’s premier venue for networking and creativity and professional development. As such, the club plays a vital role in cultivating advertising professionals of tomorrow and supporting the thought leaders of today.

While The ADVERTISING Club may be best known for the International Andy Awards, which recognize creativity and innovation in advertising around the world, it has garnered its most recent attention for its “I’mPART” initiative, which celebrates diversity within the advertising and marketing industry and works to recruit a wide variety of fresh young voices and talent to the business. That goal is embedded in last four letters of the name – Promote, Attract, Retain, and Train. I’mPART was recently featured in The New York Times, which celebrated I’mPART’s success in making the advertising industry more inclusive and more reflective of the diverse and increasingly global market it is trying to reach.

The Way I See It:

  • I see The ADVERTISING Club remaining an important pillar within the industry, and a symbiotic relationship forming between the older and younger generations. We will continue to see millennials mentoring the older generation on emerging technology and how to best implement it, and the older generation providing seasoned advice that only experience can provide.
  • I see The ADVERTISING Club playing a strong role in continuing change within the industry on the topic of diversity, not just from a race and ethnicity perspective, but a gender one as well.
  • I see The ADVERTISING Club paving the way for young people and creating a more inclusive industry.

The Way The Industry Sees It:

I sat down with Gina Grillo, President and Chief Executive Officer of The ADVERTISING Club of New York to discuss the impact the Club has on both the industry and the members.

The ADVERTISING Club (The AD Club) of New York has been engrained within the industry since 1896, and encompasses thousands of industry professionals. In terms of membership, have you seen members you’ve attracted at a young age stay active within the Club throughout the duration of their career? What’s the longevity trajectory like?

Our membership of four thousand strong includes many legacy members who joined The AD Club as young professionals and have grown up and progressed in their career with us over the years. While the industry focuses on recruiting new talent, we see retention as just as big of an issue and believe it is critical to nurture talent after they have entered the field. Part of our mission as an organization is to support members along their career journey – as they move up the ranks – keeping them active both within the industry and within The AD Club. We also have a Young Professionals group that is designed to help advertising, marketing, and media professionals ages thirty and under grow to become tomorrow’s leaders. It is truly inspiring to see this ambitious, philanthropic, and outgoing group of future industry leaders develop themselves as professionals and people.

It’s no secret that The ADVERTISING Club has a myriad of impressive initiatives. Are there any initiatives that the Club is especially proud of?

Advertising is about experimentation in communication. It is the business of inventing ideas to be discussed, debated, assessed, and adjusted daily. The AD Club exists to support this process through a number of initiatives around our core pillars – access, creativity, professional development, and diversity. We are proud of our efforts in all of these areas, but I am especially proud of our diversity initiative, i’mPART. It’s our belief that diversity of people, ideas, culture, and craft is a major driver of creativity and creates better work in our business. i’mPART is a fundraising effort that aims to raise awareness of the benefits of diversity and support the nation’s leading diversity programs.  i’mPART employs an acronym that represents the four pillars of the initiative – to Promote, Attract, Retain and Train diverse talent. It’s a movement to make diversity a priority and increase accountability for this issue through a ten-year-long benchmarking survey by PricewaterhouseCoopers (PwC), which will track the progress of diversity programs to ensure long-term success. We are committed to supporting diversity of thought and seek to inspire a diverse mindset in the advertising industry.

Continue Reading Creativity is Poppin’ in New York’s The ADVERTISING Club

There were significant changes in almost every aspect of the law relating to advertising, marketing and promotions in 2013, and Davis & Gilbert published a piece entitled, “2013 Lessons Learned and 2014 Practical Advice.” This piece explains and discuss what happened, and offer suggestions for advertisers and agencies to think about and address in 2014.

Continuing with predictions on what the rest of 2014 will hold, I turn to Jon Podany, Chief Marketing Officer for the Ladies Professional Golf Association (LPGA), to get his thoughts.

The Way The Industry Sees It

2014 Predictions within the Sports Industry and How They Have the Potential to Affect Marketing and Advertising, with LPGA’s

It sure didn’t take long for 2014 to shift into high gear.

Little more than two weeks into the New Year, we’re already knee deep in stories with big implications for marketers in the retail sector (charged anything at Target lately?), sports marketing (the ruling on Alex Rodriguez’s suspension for the 2014 season), and the

It seems youth marketing has always been a hot topic in the advertising world. As young people move from the “discovery” phase of their tween years to the “experimental phase” of young adulthood, they shift from being motivators of their parents’ buying habits to influential consumers in their own right. But today that demographic is extremely important. Not only are today’s young people the first true digital natives and harbingers of how digital media will influence how we all interact with brands, but also, as baby boomers age and their $400 billion in annual consumption slows, retail, food, and entertainment companies are counting on millennials to fill the gap.

One marketer that has been particularly successful in tapping the youth market is Erin Yogasundram, the twenty-one year old founder of Shop Jeen, an online boutique that sells everything from dollar packs of Ouija gum to $530 filigree sunglasses. Yogasundram launched Shop Jeen in March of 2012, while she was a junior at George Washington University (GWU). She started out with posting cell phone photos of new products to Instagram and filling orders out of her dorm room. The Instagram feed and the business were such an immediate hit that Yogasundram walked away from the remainder of her full-ride scholarship at GWU and moved to New York City, where Shop Jeen now has three offices, nine employees, and half a million Instagram followers.

The Way I See It

  • I see a retail industry increasingly focused on millennial and youth marketing. As baby boomers age, their $400 billion in annual consumer spending will fade. The world will turn to millennials to make up the difference.
  • I see a demographic increasingly inclined to shop at multi-brand retailers and to do their shopping online.  According to recent research by Piper Jaffray, roughly eighty percent of teens shop online. Piper Jaffray’s research also confirms millennials’ growing reliance on peer recommendations when making buying decisions.
  • I see a social media market in continued flux as young people gravitate toward new platforms; according to the latest semi-annual Pew survey on teens and social media. While Facebook still has the largest number of teen and millennial users and those users have their largest networks on Facebook, the percentage of teens citing it as their most important social network has fallen by half, from forty-two percent in the fall of 2012 to twenty-three percent in the fall of 2013. In that same period, the percentage of teens citing Instagram as their most important network doubled.

The Way the Industry Sees It

I sat down with Shop Jeen’s founder, Erin Yogasundram, to discuss her brand and how she uses social media to build a customer base.

Where did your initial vision for Shop Jeen come from? What niche or need did you want to fill?

I started the company, junior year, in my dorm room at The George Washington University. I had worked a few internships in the fashion industry in high school as well as during my winter and summer breaks in college.  I was working three part time jobs in retail, and one day I thought, I could do this myself.  I have always been an entrepreneur, and for example I sold autographs online when I was twelve and owned a shoelace selling business in high school. While working retail, I found that I had a keen eye for what would sell well.  I was always suggesting new brands for the stores to carry and had an invisible hand in the buying process.  I had about $2,000 saved from working retail and blew it all on a Celine bag (the bag was very rare, and had a wait list process at the time).  I have always been a workaholic and never a bookworm, so I quickly realized I could have used that money to start a new venture for myself.  I then sold the Celine bag for $3,000, yielding a $1,000 profit!  I decided to pool my money into wholesale purchase orders to fund my new venture.  Initially the site was to be a hub for the “best of Etsy.”  Etsy was gaining popularity, but it was very difficult to navigate and find the good stuff.  I used my keen eye, combined that with my researching skills, and I was able to find the cream of the crop on Etsy.  I negotiated wholesale terms with the sellers on there – most of which did not know what wholesale even meant when I approached them – and Shop Jeen was born.  I coded the original website from trial and error CSS writing.  I sold on campus at every event possible.  And I slowly started bringing on more well-known brands to gain traction and reputation in the industry.  Though we do carry some of the same brands as Bloomingdales, Urban Outfitters, Hot Topic, Bergdorf Goodman, Nasty Gal, Spencer’s Gifts, and ASOS, our curation is what makes us unique. So unique, in fact, that those retailers would not normally be mentioned in the same sentence.

What’s your curation process like? How do you decide what makes it on ShopJeen.com, and how have your decisions affected revenue?

Our Creative Director, Amelia Muqbel, and I work very closely to decide what products are sold, our marketing strategy, our social media voice, the look of our graphics, etc. Everything Shop Jeen stands for is a true representation of the two of us. Luckily, we somehow managed to find each other in this massive world. We share a very unique sense of style, thought-process, and outlook on the world, which is why we work so well together. I think our cohesive mindset comes across when you visit Shop Jeen.  We approach everything from a different angle than everyone else, and I’d say this has aided our success.  We quickly pull apart “competitors’” strategies and try to do the exact opposite.  It sounds crazy, but it’s been working! A lot of retailers are trying to mimic each other in order to come out on top, but if everyone is doing the same thing, how boring is that going to be for the consumer?

Continue Reading Youth Marketing: How the Founder & CEO of Shop Jeen Builds a Customer Base

In just a few short years, DVRs and video-on-demand have dramatically altered how television is watched. In 2006, fewer than two percent of households owned a DVR. Now, more than half do. The use of DVRs has changed along with market-growing penetration. Instead of just being time-shifters, many viewers are effectively becoming collectors, stockpiling so many shows on their DVRs that they don’t have time to watch them all. As a result, they’re also watching shows later, at a time when it’s convenient to them.

As The New York Times reported recently, this fall’s television season saw a surge of viewers watching shows four to seven days after the initial air-date. Broadcasters and cable networks typically base their ad prices on so-called C3 ratings or the amount of viewership over the course of three days of delayed viewing, and view those later impressions as effectively uncompensated.

The Way I See It

  • I see people spending A LOT of time in front of a screen. According to a recent survey from eMarketers, adults in the U.S. spend four hours and thirty-one minutes in front of a television and an additional five hours and sixteen minutes in front of a computer, tablet, or smartphone screen every day.
  • I see some doors opening while others close. While most viewers fast forward through at least some of the commercials on their DVRs and services like Dish’s AutoHop continue to proliferate, many networks are creating apps that allow viewers to easily access their favorite shows on their phones or using dynamic ad insertions to update ads embedded in shows viewers’ access through video-on-demand services.
  • I see a growing integration of TV and social media as viewers use tablets and smartphones to engage with friends or networks while watching TV.
  • I see the very meaning of “watching TV” changing as viewers increasingly access programs from a variety of devices. While televisions still dominate living room viewing, a recent survey by Motorola shows that most bedroom TV viewing now takes place on a tablet.

The Way the Industry Sees It

TargetCast has had great success as an agency helping its clients navigate these churning media waters.  I sat down with Audrey Siegel, TargetCast’s Agency President, to discuss how shifting viewing habits have changed how TV advertising is sold and used.

A lot of the discussion around changing viewing habits has been focused on viewers being able to skip or fast-forward through commercials, or view ads later, because of delayed viewing. Are there other, more subtle trends in viewer behavior that are getting overshadowed by these larger issues? If so, do they represent opportunities?

It is certainly true that increased consumer control over multiple aspects of their viewing behavior has forever changed the medium at its core.  The ability to time-shift viewing is really the tip of the iceberg.  We must now add to time-shifting the viewer’s ability to platform shift, to actually change the location of their viewing as well as the time in which they view a particular program.  In effect, dayparts are becoming intensely personal; “my primetime” supplants generic primetime.  The language around the nature of the viewing experience – at-home, lean-back, me time – must now recognize mobile as well as multiscreen viewing.  All of this viewing, ultimately, will be wrapped in the cloak of digitized delivery, of both ads and programming, and will open up television advertising opportunities for addressable messaging and dynamic creative versioning.  This ultimately will make our most mass medium most personal, promising greater viewer engagement and potentially greater brand engagement as a result.

How have changes in viewing habits altered our ability to track the effectiveness of the advertising that does get seen? What opportunities does that create?

Tracking the effectiveness of TV advertising has long been a promise unfulfilled.  We have settled for surrogates – such as program engagement, ad awareness, and commercial ratings – but in fact have not been able to directly connect television advertising with marketplace effectiveness in the most direct manner.  The increasing digitization of the video medium, as well as the multi-screen nature of program and ad delivery, brings us closer to the realization of effectiveness metrics.  In addition, as we build more complex multi-channel attribution tracking and modeling applications, we will better understand not only the effectiveness of one video channel, (television) but its impact on, and relationship with, other video elements (mobile, online) as well as other messaging channels (search, social).

Continue Reading Changing How We Watch Changes How We Sell