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  • feedwordpress 11:39:41 on 2018/10/24 Permalink
    Tags: , commerce, , , , , , , , Random, But Interesting, retail, walmart   

    This Is How Walmart Beats Amazon 

    A scenario from the future

    (cross posted from NewCo Shift)

    In my last post I imagined a world in which large data-driven platforms like Amazon, Google, Spotify, and Uber are compelled to share machine-readable copies of data to their users. There are literally scores, if not hundreds of wrinkles to iron out around how such a system would work, and in a future post I hope to dig into some of those questions. But for now, come with me on a journey into the future, where the wrinkles have been ironed out, and a new marketplace of personally-driven information is flourishing. We’ll return to one of the primary examples I sketched out in the aforementioned post: A battle for the allegiance – and pocketbook – of one online shopper, in this case, my wife Michelle.

    ***

    It’s a crisp winter mid morning in Manhattan when the doorbell rings. Michelle looks up from her laptop, wondering who it might be. She’s not expecting any deliveries from Amazon, usually the source of such interruptions. She glances at her phone, and the Ring app (an Amazon service, naturally) shows a well dressed, smiling young woman at the door. She’s holding what looks like an elegantly wrapped gift in her hands. Now that’s unusual! Michelle checks the date – no anniversaries, no birthdays, no special occasions – so what gives?

    Michelle opens the door and is greeted by a woman who introduces herself as Sheila. She tells Michelle she’s been sent over by Walmart. Walmart? Michelle’s never set foot in a Walmart store, and has a less than charitable view of the company overall. Why on earth would Walmart be sending her a special delivery gift box?

    Sheila is used to exactly this kind of response – she’s been trained to expect it, and to manage the conversation that ensues. Sheila is a college-educated Walmart management associate, and delivering these gift boxes is a mandatory part of her company training. In fact, Sheila’s future career trajectory is based, in part, on her success at converting Michelle into becoming a Walmart customer, and she’s learned from her colleagues back at corporate that the best way to succeed is to be direct and open while engaging with a top-level prospect.

    “Michelle, I know this seems a bit strange, but Walmart has identified you as a premier ecommerce customer – I’m guessing you probably have at least three or four packages a week delivered here?”

    “More like three or four a day,” Michelle answers, warming to Sheila’s implied status as a premium customer.

    “Yes, it’s amazing how it’s become a daily habit,” Sheila answers. “And as you probably know, Walmart has an online service, but truth be told, we never seem to get the business of folks like you. I’m here to see if we might change that.”

    Michelle becomes suspicious. It doesn’t make sense to her – sending over a manager bearing gifts? Such tactics don’t scale – and feel like an intrusion to boot.

    Sensing this, Sheila continues. “Look, I’m not here to sell you anything. I’ve got this special gift for you from Doug McMillon, the CEO of Walmart. You’ve been selected to be part of a new program we’re testing – we call it Walton’s Circle. It’s named after Sam Walton, our founder, who was pretty fond of the personal touch. In any case, the gift is yours to keep. There’s some pretty cool stuff in there, I have to say, including La Mer skin cream and some Neuhaus chocolate that’s to die for.”

    Michelle smiles. Strange how the world’s biggest retailer, a place she’s never shopped, seems to know her brand preferences for skin care and chocolate. Despite herself, she relaxes a bit.

    “Also inside,” Sheila continues, “is an invitation. It’s entirely up to you if you want to accept it, but let me explain?”

    “Sure,” Michelle answers.

    “Great. Have you heard of the Token Act?”

    Michelle frowns. She read about this new piece of legislation, something to do with personal data and the right to exchange it for value across the internet. In the run up to its passage, her husband wouldn’t shut up about how revolutionary it was going to be, but so far nothing important in her life had changed.

    “Yes, I’ve heard of it,” Michelle answers, “but it all seems pretty abstract.”

    “Yeah, I hear that all the time,” Sheila responds. “But that’s where our invitation comes in. Inside the box is an envelope with a code and a website. I imagine you use Amazon…” Sheila glances toward an empty brown box in the hallway with Amazon’s universal smiling logo. Michelle laughs. “Of course you do! I was a huge Amazon customer for years. And that’s what our invitation is about – it’s an invitation to see what might happen if you became a Walmart customer instead. If you go to our site and enter your code, a program will automatically download your Amazon purchase history and run it through Walmart’s historical inventory. Within seconds, you’ll be given a report detailing what you would have saved had you purchased exactly the same products, at the same time, from us instead of Jeff Bezos.”

    “Huh,” Michelle responds. “Sounds cool but…that’s my information on Amazon, no? I don’t want you to have that, do I?”

    “Of course not,” Sheila says knowingly. “All of your information is protected by LiveRamp Identity, and is never stored or even processed on our servers. You maintain complete control over the process, and can revoke it at any time.”

    Michelle had heard of LiveRamp Identity, it was a third-party guarantor of information safety she’d used for a recent mortgage application.  She also came across it when co-signing for a car loan for her college-aged daughter.

    “When you put that code into our site, a token is generated that gives us permission to compare our data to yours, and a report is generated,” Sheila explained. “The report is yours to keep and do with what you want. In fact, the report becomes a token in and of itself, and you can submit that token to third party services like TokenTrust, which will audit our work and tell you if our results can be trusted.”

    TokenTrust was another service Michelle had heard of, her husband had raved about it as one of the fastest growing new entrants in the tech industry. The company had recently been featured on 60 Minutes – it played a significant role in a story about Google’s search results, if she recalled correctly. Docusign had purchased the company for several billion just last year. In any case, Michelle’s suspicions were defused – may as well check this out. I mean, why would Walmart risk its reputation stealing her Amazon data? It was worth at least seeing that report.

    Sheila sensed the opening. “The reports are pretty amazing,” she says. “I’ve had clients who’ve discovered they could have saved thousands of dollars a year. And here’s the best part: If, after reviewing and validating the report, you switch to Walmart, we’ll credit your account with those savings – in essence, we’ll retroactively deliver you the savings you would have had all along.”

    “Wow. That almost sounds too good to be true!” Michelle says. “But… OK, thanks. I’ll check it out. Thanks for coming by.”

    “Absolutely,” Sheila responds. “And here’s my card – that’s my cell, and my email. Let me know if you have any questions.”

    ***

    Michelle heads back inside and places the gift box on the table next to her laptop. Before opening the box, she wants to be sure this thing is for real. She Googles “Walmart Walton Circle Savings Token”  – and the first link is to a Business Insider article: “These Lucky Few Amazon Customers Are Paid Thousands to Switch – By Walmart.” So Sheila wasn’t lying – this program is for real!

    Michelle tugs on the satin ribbon surrounding her gift box and raises its sturdy lid. Nestled on straw inside are two jars of La Mer, several samples of Neuhaus chocolates, two of her favorite bath salts, and various high end household items. The inside lid of the box proclaims “Welcome to Walton’s Circle!” in elegant script. At the center of the box is an creamy envelope engraved with her name. Michelle opens it, and just as Sheila mentioned, a URL and code is included, along with simple instructions.

    What the hell, may as well see what comes of it. Turning to her laptop, Michelle heads to Walmart.com – for the first time in her life – and enters her code. Almost instantaneously a dialog pops up, informing her that her report is ready. Would she like to review it?

    Why not?! Michelle clicks “Yes” and up comes a side-by-side comparison of her entire Amazon purchase history. She notices that during the early years – roughly until 2006 –  there’s not much on the Walmart side of the report. But after that the match rates start to climb, and for the past five or so years, the report shows that 98 percent of the stuff she’s bought at Amazon was also available on Walmart.com. Each purchase has a link, and she tries out one – a chaise lounge she purchased in 2014 (gotta love Prime shipping!). Turns out Walmart didn’t have that exact match, but the report shows several similar alternatives, any of which would have worked. Cool.

    Michelle’s eye is drawn to the bottom of the report, to a large sum in red that shows the difference in price between her Amazon purchases and their Walmart doppelgangers.

    $2,700.

    Holy….cow. Michelle can’t believe it. Is this for real? Anticipating the question, Walmart’s report software pops up a dialog. “Would you like to validate your token’s report using TokenTrust? We’ll pay all fees.” Michelle clicks yes, and a TokenTrust site appears. The site shows a “working” icon for several seconds, then returns a simple message: “TokenTrust has reviewed Walmarts claims and your Amazon token, and validates the accuracy of this report.”

    Michelle is sold. Next to the $2700 figure at the bottom of her report is one line of text, and a “Go” link. “Would you like to become a founding member of the Walton Circle? We’ll take care of all your transition needs, and Sheila, who’ve you already met, will be named as your personal shopping concierge.”

    Michelle hovers momentarily over “Go.” What the hell, she thinks. I can always switch back. And with one click, Michelle does something she never thought she would: She becomes a Walmart customer.

    Satisfied, she turns her eyes back to her work. Several new emails have collected in her inbox. One is from Doug McMillon, welcoming her to Walton’s Circle. As she hovers over it, mail refreshes, and a new message piles on top of McMillon’s.

    Holy shit. Did Jeff Bezos really just email me?! 

    ***

    Is such a scenario even possible? Well, that question remains unexplored, at least for now. As I wrote in my last post, I’m not certain Amazon’s terms of service would allow for such an information exchange, though it’s currently possible to download exactly the information Walmart would need to stand up such a service. (I’ve done it, it takes a bit of poking around, but it’s very cool to see.) The real question is this: Would Walmart spend the thousands of dollars required to make this kind of customer acquisition possible?

    I don’t see why not. A high end e-commerce customer spends more than ten thousand dollars a year online. Over a lifetime, this customer is worth thousands of dollars in profit for a well-run commerce site like Walmart. The most difficult and expensive problem for any brand is switching costs – it’s at the core of the most sophisticated marketing efforts in the world – Ford spends hundreds of millions each year trying to  convince customers to switch from GM, Verizon spends equal amounts in an effort to pull customers from AT&T. Over the past five years, Walmart has watched Amazon run away with its customers online, even as it has spent billions building a competitive commerce offering. What Walmart needs are “point to” customers – the kind of people who not only become profitable lifelong buyers, but who will tell hundreds of friends, family members and colleagues about their gift box experience.

    But to get there, Walmart needs that Amazon token. Wouldn’t it be cool if such a thing actually existed?

     
  • feedwordpress 17:01:29 on 2018/09/09 Permalink
    Tags: Instagram, Random, But Interesting, Snapchat, , ,   

    Social Media Too Shall Pass 

    At dinner last night with my wife and our 14 year-old daughter, I noticed a circular table of four teenage girls eating alone. They were about the same age as my daughter, who wasn’t exactly thrilled to be stuck with her parents as company on her first weekend of the school year. As we ate, I paid attention to the group’s dynamics, imagining them to be a possible reflection of what my daughter would be doing once she started going out alone with friends in New York City.

    The most striking characteristic of the group was how they used their phones. The default position for each of them – their resting state, if you will – was to hold  their device at chin level while gazing into the blue grip of its screen. They looked away only to point out something happening on that screen – at no time during an hour or so of observation did any of them put their phones down to simply talk to one another.

    I pointed this out to my daughter – I’m used to seeing kids on their phones, but this was a bit over the top. “Is that normal?” I asked her. “For sure,” she replied, looking over her shoulder at the clutch of zombified girls. “But,” I protested, “at some point they’ll put them down and just be human beings enjoying each other’s company, right?”

    “Not really,” my daughter replied casually. “They’re Snapping,” she stated matter of factly, deducing the fact from the social and physical interactions particular to that app. “They’re adding their dinner to their stories.”

    I ventured into old-person-yelling-from-the-porch territory. “But…they’re not going to do that the entire dinner, are they?”

    “No,” she replied, “soon they’ll be taking photos of each other for Instagram.”

    Within five minutes, that’s exactly what the girls were doing.

    “Surely this can’t be a lasting behavior,” I rejoined. “Twenty years from now, we’re all going to look back at this era and realize what a bunch of idiots we were, right?”

    My daughter looked at me, considered my statement, and without any apparent irony, agreed.

     
  • feedwordpress 03:38:40 on 2016/01/13 Permalink
    Tags: back linking, , , , , Random, But Interesting,   

    Mobile Gets a Back Button 

    The post Mobile Gets a Back Button appeared first on John Battelle's Search Blog.

    Screen Shot 2016-01-12 at 6.32.45 PMI just opened an email on my phone. It was from a fellow I don’t know, inviting me to an event I’d never heard of. Intrigued, I clicked on the fellow’s LinkedIn, which was part of his email signature.

    That link opened the LinkedIn app on my phone. In the fellow’s LI feed was another link, this one to a tweet he had mentioned in his feed. The tweet happened to be from a person I know, so I clicked on it, and the Twitter app opened on my phone. I read the tweet, then pressed the back button and….

    Wait, the WHAT? The back button? But…back buttons only exist in a Browser, on the PC Web, right?

    Yes, that used to be true, but finally, after years of chicletized, silo’d apps that refuse to talk to one another, finally, the chocolate is meeting the peanut butter. The mobile operating sysem — well, Android anyway — is finally acting like a big-ass web browser, only better — with sensors, location data, and other contextual awareness.

    It doesn’t happen a lot, but thanks to deep linking and the inevitable need of commerce to connect and convert, it’s happening more and more, and it represents the future of mobile. The chocolaty goodness of the linked web is merging with the peanut-buttery awesomeness of mobile devices.

    It’s about time.

    The post Mobile Gets a Back Button appeared first on John Battelle's Search Blog.

     
  • feedwordpress 01:01:33 on 2016/01/11 Permalink
    Tags: , Random, But Interesting, streaming   

    The Streaming Conundrum: Forgetting What I Heard 

    The post The Streaming Conundrum: Forgetting What I Heard appeared first on John Battelle's Search Blog.

    Screen Shot 2016-01-10 at 4.56.22 PMOnce upon a time, I’d read the yearly lists of “best albums” from folks like Rick Webb or Marc Ruxin, and immediately head over to the iTunes store for a music-buying binge. Afterwards, I’d listen happily to my new music for days on end, forging new connections between the bands my pals had suggested and my own life experiences. It usually took three to four full album plays to appreciate the new band and set its meanings inside my head, but once there, I could call those bands up in context and apply them to the right mood or circumstance. Over years of this, I built a web of musical taste that’s pretty intricate, if difficult to outwardly describe.

    About two years ago, I started paying for Spotify. Because I’d paid for “all you can eat” music, I never had to pay for a particular band’s work. Ever since, my musical experience has become…far less satisfying.

    Last night, for example, I had a small gathering at my house, and I wanted to curate a playlist for the evening. My house is set up with a Sonos system, which is connected to my iTunes library, as well as Spotify and various other apps. Before I stopped buying music on iTunes (or ripping CDs into iTunes), it was super easy to set a Sonos playlist: I’d just review my iTunes library on Sonos and toss the tunes into a queue to be played. I’d usually chose recent music to play — curating a playlist is a chance to demonstrate your musical taste, after all, and that changes over time.

    But now that I use Spotify, I realized something rather distressing: I can’t remember the names of most of the bands I’ve listened to over the past couple of years. That made creating a new playlist near impossible — my guests had to endure a musical set that would have felt fresh had the year been 2013.

    I know Spotify has robust playlist creation tools, and I know I’m supposed to adapt to them, and learn how to create value on the Spotify platform. But the ugly truth is I lean on Spotify’s “Discover” feature, and its attendant algorithms, to suggest all manner of new music for me. I listen to it, but I’ve lost the recall signal which allows me to create a good playlist.

    For me the most important signal of value is an exchange — I pay the band for their music, the band gives me rights to own and play that music. Streaming has abolished that signal, and I’m feeling rather lost as a result.

    Perhaps I’ll go back to simply buying music on iTunes, but that feels like going backwards. Streaming is here to stay. However, I’m guessing plenty of folks have run into this issue, and might have a suggestion for how best to address it. So LazyWeb, I ask you: How do you ingest music and give it meaning in a streaming world?

    The post The Streaming Conundrum: Forgetting What I Heard appeared first on John Battelle's Search Blog.

     
  • feedwordpress 01:38:55 on 2016/01/07 Permalink
    Tags: , Random, But Interesting, Web Design   

    Dear Microsoft. I Want To Use Office 365. But… 

    The post Dear Microsoft. I Want To Use Office 365. But… appeared first on John Battelle's Search Blog.

    Here’s what I encountered when I, as a first time ever user, was directed to a document that lived in Office 365 World:
    Screen Shot 2016-01-06 at 12.08.38 PM

    Holy crap, Microsoft! I just wanted to read the document a colleague at another (much larger, older, and traditional) company had sent me.

    When this happens with Google, well, most of us have a Google account, so the link would redirect to this:

     Screen Shot 2016-01-06 at 12.12.47 PM

    Pretty easy, and even if you don’t have a Google account, you see this:

     create google

    Better, but still not great.

    So I wondered what it’s like at, say, DropBox.

    Screen Shot 2016-01-06 at 12.10.05 PM

    Ah, yes. That’s the ticket.

    Microsoft, you have a lot to learn about living on the web.

    The post Dear Microsoft. I Want To Use Office 365. But… appeared first on John Battelle's Search Blog.

     
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