Retailers, don't be scared of digital

By By Wenlei Ma | 14 September 2011
 
VML partner and director of innovation strategy, Mike Lundgren.

EXCLUSIVE: Australians retailers should embrace the digital world to lure back shoppers from online competitors, according to VML partner Mike Lundgren.

Lundgren told AdNews the Australian market is ripe for digital, with Australia leading the US in broadband connections and on par for smartphone take-up.

He has three key suggestions for Australian retailers, the first of which is to be visible. Lundgren said retailers should reach out to consumers with location-based services, as shoppers who are already out are more likely to spend with and open to interacting with a brand.

Secondly, retailers need to be more value-added and less self-referential. Lundgren said retailers need to wary of constantly barraging consumers with disruptive marketing. Rather, they should earn their way into a consumer's pocket with value-added solutions and frictionless experiences such as apps that serve as a shopping list or price-comparison modules.

Additionally, brands need to be persistent, innovative and think holistically.

"Winning brands today use active listening to gather insights, identify influencers and communicate with customers," Lundgren said.

"It's about listening first to social media and then talking. The talking bit is targeted at the people that infuence how your brand is perceived online."

Lundgren is also an advocate of a "killer app", one which incorporates mobile, social and local. He lists South West Airlines and Delta Airlines as US examples of brands doing well in the app space.

Lundgren, who is partner and director of innovation strategy of WPP global digital agency VML, is in Australia this week hosting a series of breakfast seminars for shopping centre giant Westfield.

Australian retailers have seen declining sales, in part due to competition from online overseas sites.

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