Target “Misses” It’s Online Projections. And We Care…why?


Saw this story on RetailWire titled “Does Target have a problem online?” (click here).

The gist is that analysts are worried about Target because they exceeded the national average of 15% online growth. But their online growth at 20% was less than the 30% that had been projected. (Same thing happened at WalMart.)

And we care…exactly why?

The theory of “omnichannel” is that the consumer doesn’t care about our silos. So why should we be reporting and analyzing numbers based on those same silos?
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Kickstarter Mythology Needs Some Retail Reality


Kickstarter mythology has outgrown reality.

(But let me be very clear. I’m NOT talking about Kickstarter art, music, and movie projects. It was designed for these and they seem to be running pretty well overall.)

I’m talking about Kickstarter campaigns that raise money by Directly Selling new Products that have never been built – and taking orders for lots of them. In the computer business we used to call this selling vaporware and investing in businesses dedicated to vaporware led to the dotcom crash. Segway and Google Glass were both massive vaporware disasters.

Now, by selling vaporware with Kickstarter, we’re seeing amazing train wrecks among the most highly successful money raising campaigns. These train wrecks are all made possible by the mythologies that drive Kickstarter and other crowd funding sites. (Incidentally, a comment below points out this is a far more dramatic version of the direct mail practice of “dry testing”. There is already FTC guidance on dry testing.)

The Mythology of Kickstarter for Inventors. Inventor mythology starts with a belief that it’s enough to come up with a good idea and some money to build it. And Kickstarter appears to “unshackle” inventors so this can happen.
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The Absurdity of Brand Disconnected from Product

Last week I ran into research that presents a strange example of disconnected brand thinking. I found it in a study claiming to tell us what brand attributes are most important to the fabled Millennials. (Link here.)

Problem is the research draws broad brand preference conclusions that are entirely disconnected from product – there’s no product anywhere to be found. And that means the reported findings are entirely meaningless since consumers can’t tell us about brand in the abstract.
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A Peek Inside Retail at JoAnn’s

My wife passed me a blog post from The Bitchy Stitcher summarizing an in-depth discussion The Stitcher had with a JoAnn’s store manager. (Link here.) What a great blog nickname…”The Bitchy Stitcher”…

I strongly recommend reading this (lengthy) post. The post, along with the excellent comment stream at the bottom, gives us an unusually interesting and varied peek inside daily operations at a mass market retail store.
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Consumers Buy Products, Not Brands: How This Should Change Your Advertising

“Whenever you can, make the product itself the hero of your advertising.”
– David Ogilvy, Ogilvy on Advertising

We live in a grand age of “brand advertising” – where most ad agencies believe that their role is to directly build brand with advertising. Except they’re wrong.

There are far more advertising options for building a brand than so-called “brand advertising”. Quite often, these options end up building stronger brand, faster and at less cost. Sadly, most agencies never tell their clients about these other options – perhaps because they’ve never thought that deeply about them. (It’s a bit ironic, since one fundamental of creative is that a linear approach to subtle things is often the least effective. So creative teams shouldn’t be surprised that the fastest way to build brand isn’t to directly try to build that brand.) Read more of this post

Is Disruption the Most Important Model for Innovation?

The theory of “Disruptive Innovation” is an idea that has come to dominate business. Why? Business pundits and consultants would tell us it points the way to the strongest business success. iStock_000017829020Medium

Except I think there’s a different truth. The thing the disruption theory does most reliably is give you a great way to sell your business to funding sources, to the press (who LOVE a great disruption story), or to that narrow niche of customers who passionately hate the “old ways” and don’t care if the new way is really any better. The theory of disruption is even being used to sell changes designed for wholesale destruction of our public school system in the US (with an odd leap of faith hoping that whatever replaces it will be better). (More on schools here.)

Using theory to promote an idea isn’t necessarily a bad thing. But truth is important for businesses to succeed. Is there really a strong connection between disruption and long term success? That’s far more tenuous. At least that had been my growing sense of the theory.

And now I see that battle has been joined on exactly this issue. Writer and Harvard American History professor Jill Lepore fired the first shot with an excellent article in The New Yorker (“What the Theory of ‘Distruptive Innovation’ Gets Wrong”).
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The Brick & Mortar Advantage

We founded Atomic on the premise that DRTV drives sales through all channels – what has now become known as “Omnichannel”. After all, customers will buy through the channel that is most comfortable and convenient for them – quite often at a physical store.
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Yet since 1997 we’ve been pestered by waves of enthusiasm for the idea that digital commerce will destroy brick and mortar. But that didn’t happen in 1997. Or 1998. Or 2001. Or 2007. And it isn’t happening today – despite the next wave of e-commerce mania in the press.

So we were pleased to read a recent blog post by Steven Dennis (former Senior Vice President of Strategy, Business Development and Marketing for the Neiman Marcus Group) on the important strengths brick and mortar can leverage. While many believe the virtual world will overtake retail stores, Dennis observes “…assuming that physical retail is going away any time soon is just plain wrong,” After all:

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