Issue No. 81: The Lure Module (Top Ten), 20M More, and Stop It Wal-Mart.

Last word: The Lure Module and Online Advertising

If you live in a metropolitan area, you are surrounded by PokéStops, places where gamers can add items like pokéballs and Pokémon eggs. This means that the apps’ users are stopping by establishments like bars, restaurants, and food trucks to gain access to in-game enhancements. In short, it’s been a boon for local business. It’s what Foursquare hoped to incentivize, what Groupon could have only dreamt of achieving. At bottom, you will find a simple economic model used by savvy business owners. Here is 2PML’s list of the top five technical platforms that will see an impact from Pokémon Go, this week:

    1. Foursquare will reflect increased foot traffic that will correspond with businesses that have used the lure module to increase in store activity. This is the case for businesses like Chipotle, Jeni’s Ice Creams, and Starbucks.
    2. Fitbit will see a spike in days where users walked over 10,000 steps.
    3. Apple Watch will detect an aggregate increase in average heart rate.
    4. Snapchat will see a spike in its “Add Nearby” function for adding friends.
    5. Uber / Lyft will see an uptick in travel to places where lures have been placed.

Here is how the lure modules are placed. While this seems extraordinarily abstract (and maybe nonsensical) to some, it is one of the first examples of an app increasing legitimate and primed online to offline demand generation. Brick and mortar businesses are seeing 30-40 new customers per hour at a cost of $1.17. There’s no greater advertising ROI on the market.

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Issue No. 52: 100 Conversion Tips and The Definitive Internet Trends Report

A LAST WORD: WHY SALESFORCE ACQUIRED DEMANDWARE

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With Salesforce’s acquisition of Boston’s Demandware, eCommerce investments may heat up, again. Demandware ($2.94B market cap) was purchased for 2.8B today. By comparison, Shopify was trading at a volume that placed their market cap at $2.52B. Shopify has ~300,000 merchants and Demandware has 349 merchants. In this instance, it’s not the quantity that counts. It’s the (revenue-generating) prowess of vendors. Salesforce’s services are not cheap.

According to Rare.io‘s Taylor Sicard, the average Shopify merchant sold $8,500 in 2015 while Demandware serves over 30 merchants that are generating $100M+ per year.

Demandware is the provider of e-commerce technology to 52 retailers in the Top 500 and 18 in the Second 500, according to Top500Guide.com. Demandware clients include L Brands, the parent company of Victoria’s Secret and No. 28 in the Internet Retailer Top 500, L.L. Bean (No. 34), Lands’ End (No. 44), Nike Inc. (No. 47) and Abercrombie & Fitch (No. 58). Salesforce is listed as the provider of customer relationship management (CRM) software for just one retailer in the Top 500, Coach Inc. (No. 163).** (via Internet Retailer)

With eCommerce emerging as a dominant force in American retail, it should not be surprising that there are shifts in the CRM space. This move by Salesforce gives them a new opportunity to attract dozens of new vendors to its CRM (from the Demandware platform), giving them a strategic advantage over competing CRM NetSuite, who has but two clients in the eCommerce top 500 and 19 in the top 1000.

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