Online
FANATICS CEO ON HOW TO WIN BIG IN E-COMMERCE
The three-point shot at the buzzer. An epic come-from-behind victory. The goal that no one saw coming.
Sports fans live for these kinds of memorable moments, but the most incredible victories are often the most difficult to predict. The same is true for retailers trying to understand what customers want.
In a members-only keynote at the Shop.org Digital Summit in Philadelphia, Fanatics CEO Doug Mack explained how the sports merchandise retailer meets the needs of fans whose favorite teams and players can change overnight.
For most players, their moment in the spotlight isn’t permanent. Mack said that in the last five years, there have been just two NFL players who have remained in the company’s top 10 list of highest-selling players: the Patriots’ Tom Brady and Green Bay’s Aaron Rodgers. For lesser-known players, a single incredible catch or game-winning shot can generate tremendous fan interest in real time.
Who was this year’s unexpected rising star? The San Francisco 49ers’ Jarryd Hayne, an Australian-born rugby player who tried out for the NFL team this year and made the cut. Australian and American fans were excited to say the least. “Overnight he became the number one selling jersey in the portfolio,” Mack said. “So these things can come out of nowhere that are almost unpredictable.”
STAY AGILE
So, how does this billion-dollar startup prepare and plan for these unforeseen spikes in customer demand? Agility is key. “Agility in e-commerce, hard wired through the supply chain, is a critical thing to have. And that’s data- and technology-powered,” Mack told the audience.
To stay ahead of the next big hit, the Fanatics team collects and analyzes multiple data sources to identify up-and-coming athletes.
When it finds a promising player like Hayne, the company doesn’t hesitate to act and test its hypothesis. According to Mack, the production process is pretty quick. “Part of our production chain is technology-based where domestically we can produce a certain amount of — or finish a certain amount of — merchandising onshore for quick-production t-shirts, jerseys, embroidered hats and the like,” Mack said, which helps the company conduct a test to see if the merchandise is popular enough to invest in additional production.
The next step: Letting fans know quickly about the new merchandise for their favorite player. “We use great technology and CRM and Internet marketing and SEO and other areas to basically get the word out to the audience that there is great Hayne merchandise,” Mack said. In addition to customer interactions and site analytics, Fanatics also uses geolocation and social marketing to put relevant products in front of fans.
KNOW YOUR FAN
Exciting things happen in sports every day. For Fanatics, the trick is connecting the right fan in the right moment with the right merchandise. It’s a tall task, but data is critical in understanding what fans want.
KNOW YOUR FAN
Exciting things happen in sports every day. For Fanatics, the trick is connecting the right fan in the right moment with the right merchandise. It’s a tall task, but data is critical in understanding what fans want.
“To begin to use that data to profile and build understanding of what given fans are interested in is a huge opportunity,” Mack said. “And I know that is a pretty well-known discipline in digital retail. But getting that structure right and those categories right and the data collection right is super important.”
How does Fanatics begin to really understand its customers and their needs? They collect insights on customers from a range of sources. “This can be via social feeds that we’re getting in terms of what people’s interests are,” he said. “Knowing where somebody lives, that’s a really big cue for our business.” Other times, it’s as simple as asking customers about their favorite players. Once you know your fans, you can identify the products they want.
REWARD INNOVATION
Companies looking to grow and better serve their customers shouldn’t be afraid to try new things. During the Q&A session, Forrester Research’s Sucharita Mulpuru asked about creating an innovative culture within an organization. Companies should encourage employees to experiment, Mack said. “One of our core values as a company is innovative products and customer experiences. So, it’s on the wall in every office that innovation is valued.” Some companies punish employees who take risks and don’t succeed, but Mack cautions against that. “You need to celebrate innovation. Reward innovation.” Large or small, innovation is a critical way retailers can stay a step ahead of their competitors.
No comments:
Post a Comment