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Showing posts with label behavior. Show all posts
Showing posts with label behavior. Show all posts

Tuesday, April 22, 2025

What Megan Farina and Andrew Adam Newman Get Wrong About Consumer Behavior

by Ariella Brown





There's a certain irony in that the very article that foretold doom about Target as punishment for its dropping DEI is the one that alerted me to the Kate Spade items available there that appear to have nearly all sold out in just a couple of weeks. Once again, theory is vanquished by reality and the bottom line as measured in sales and revenue.

This kind of article is what feeds into the negative impression so many people have about journalists like Andrew Adam Newman who cherry-pick things to fit their narrative frame rather than allowing the story to emerge from data. Instead of reaching out to the general public to more accurately predict what impact this particular collaboration between a famous designer and popular retailer will be, they shoehorn it into their own predetermined story that Target has dug its own grave by dropping DEI programs.

Newman has been using his platform at Retail Brew to harm on his anticipated demis of Target. One can only guess that he had some bad experience with the retailer and is now having his revenge in digital print.

What prompted me to write this blog was Newman's recent screed, Could the Kate Spade collab reverse the Target DEI doldrums? with the subtitle "Kate Spade remains pro-DEI, but is taking its lumps online for partnering with Target." Most of the article is made up of video snippets and quotes drawn from TikToks  posted by women like Megan Farina (Honestly, never heard of her before reading this article) who said: 

“Friendly reminder that we are still 100% boycotting Target ...You get rid of DEI, you think we’re gonna come back for Kate Spade?...No, but remember, stand strong. You don’t need the bag.”

Dear Megan, Andrew, and the rest of you who virtue-signal by dumping on Target: 

Of course, you don't need the bag. No one needs the bag. No one needs the earrings or the cutesy home decor and party accessories  either.  

I understand that, which is one reason why I'm not buying any of that Kate Spade stuff (particularly not the designer trash bags). While you may wish to find comfort in that, Megan, I have to assure you that  it's not because I'm boycotting the store from which I except to get my shipment of Cheerios and Good & Gather peanut butter soon.

 The thing is that even if I wanted to buy the Kate Spade skirt, which I was seriously considering due to its reasonable price point and positive reviews, I can't. That's because it  -- like quite a number of the Kate Space items offered for sales just this month -- is  completely sold out. 

That is what tells me your little boycott is a big failure, Megan. I know you are in denial about this, so allow me to clue you in Megan:  

The overwhelming majority of people who shop at stores like Target care more about value than "values" that marketers, writers of agenda-driven reports,  and self-styled influencers have claimed matters to consumers in advising brands how to position themselves. In other words, if they feel they're getting a bargain by purchasing an affordable bit of Kate Spade stuff, they'll grab it. The proof is in the sold-out status. 

The proof of what is working and what isn't for a retailer is not something an influencer can determine by projecting what people should care about. It's found in the choices real  people make with their wallets and what ends up in their real and virtual shopping carts. 

One thing that bears a mention here is that quite a large number of people are now avoiding shopping at Target for a completely different reason than the one that Newman advances in his repeated articles. They don't like shopping in a store for things that are in locked cases and having to find someone who can open the case for them so that they can put the item in their real shopping carts. 

A number of people have declared they're done shopping in stores that have locked up items. It's really not the fault of the stores, though. Shoplifting rates have skyrocketed, and stores have their hands tied when it comes to apprehending the culprits. that is really due to the political sway of certain states and cities that blame the police and store managers more than the criminals.  Consequently, retailers now  either elect to close stores altogether in such locations, or they lock up the items most often stolen. The latter seems to serve communities better than the former. 

Here's one more layer of irony for you, Megan and Andrew. What will likely hurt Target far more than your boycott ever could is the tariff on imports that Trump seeks to impose. 

Again it's because people want to treat themselves by buying stuff with low prices. American-made goods have generally been more expensive than things made cheaply abroad. While supporting domestic products is always good in terms of national well-being, that abstract value is not what really motivates most purchases any more than the idea of supporting a brand that pays lip service to the "values" du jour does. 

P.S. added on April 28. I see that Retail Brew is still pushing its spin on Target suffering losses due to dropping DEI, posting this on April 25: Exclusive: Percentage who’d recommend Target dropped 11 points after it caved on DEI. Sounds dramatic, no? 

But when you see the actual numbers which offer absolutely no context about the demographic polled or even how many people answered the question, you'd find the analysis a lot less credible, never mind impressive.  The only link to the data that Retail Brew offers is to a Google doc that I copied below.









I strongly suspect that those number represent the total number of answers, which indicates to me that at most 100 people were polled, hardly a fitting sample size for a retailer with hundreds of millions of customers across the United States. 

What's even more ironic here is that Retail Brew is desperately trying to claim that Caliber's data proves it is correct that moving away from DEI hurts a business reputation and its profitability. In fact, that is contrary to the findings that Caliber published this year in its report Do Changes to DEI Policies Affect Corporate Reputation in the US?

 It includes the graph below, which shows that the impact of shifts in DEI policies do not necessarily hurt brands and sometimes may even have a positive impact on as far as consumer perception goes in the US. 



Focusing on the US impact, Caliber finds: 

Takeaways

  • Trump’s position on DEI has not significantly converted opposition but has strengthened 
  • pre-existing views.
  • A significant portion of Americans (37%) became more supportive of DEI following 
  • Trump’s policy changes, while only 12% moved in the opposite direction. 
  • Q3. Impact on Consumer Behavior

    We asked whether a company’s decision to reduce its DEI initiatives impacted 

    • Americans demonstrate the strongest response, with 35% more likely to buy from such companies—compared with 26% of British respondents and 20% of Germans. 
    • The polarization from earlier questions extends to consumer behavior, as 24% of Americans would reduce purchases from these companies.  

So, yes, some people declared they would buy less from such brands, but the math of 35% saying they'd buy more vs. 24% saying they'd reduce makes it clear that there is net benefit of 11% to the businesses who drop DEI -- quite the opposite of what Retail Brew is trying to insinuate about Target.


Related

The aftermath of the February 28th retail boycott


Everybody lies with visualizations

Friday, April 16, 2021

Today's targeted marketing is powered by data and automation

 Marketing is always more effective when it is more targeted. As a result of integrating data and algorithms, marketers are able to now deliver a personalized customer experience at scale. 



There are various ways to target specific customers, and approaches range from lumping customers into very broadly defined categories to getting a lot more fine-tuned about the segments and responsive to individual customer behavior .In collaboration with Google, Deloitte put out a Digital transformation through data: a guide for retailers to drive value with data that took a closer look at these gradations. 


It ranked them as follows:


  • Limited segmentation: All users are analyzed in broad segments. 

  • Basic segmentation: Uses standard characteristics (e.g., gender, geography) for segmentation.

  • Detailed segmentation: Segments are based on personal and behavior

  • Dynamic segmentation: The UX / UI can respond to a customer’s in-session behavior as he or she exhibits different segment characteristics.



Achieving the detailed level depends on much more data than the static kind that is used for basic segmentation, and advancing to the dynamic level requires a level of automation that will enable recommendations and responses to go out in real-time. 


 The coming AI revolution in retail and consumer products invoked the women’s clothing store,  Avenue Stores LLC as an example of dynamic segmentation. It explained that  it brings together “data across multiple touchpoints, including in-store activities and market trend analysis, to learn and reason about what customers want and when they want it.” On that basis it can reach out to customers with communication tailored to their situation in real-time, which makes it possible to capture their attention while in “‘shopping mode.” 


Marketing for loyalty



Being in touch with your customers to let them know you’re there for them without pressuring them to buy can pay off in winning their loyalty and business later. In this case, your automated messaging doesn’t have to respond to segment your audience, as you would be working off a general form of communication.



When you don’t have history


But what if you do need to sell your products now? Marketing recommendations can work even on the more basic level, not just for new customers for whom you have no history to flesh out a profile but for the type of marketing communication that depends on general trends. For example, a very broad segment of all people in the United States can work for promotions tied to events shared by all due to the calendar, whether it’s Mother’s Day, Memorial Day, July 4th, etc. 


You don’t need to know much about your customer other than that they’ll know what these days are because they are on their calendars due to living in the United States for the trending algorithm to work well. That makes using this approach ideal for customers for whom you don’t have first-party data.


It doesn’t matter so much what they are normally interested in or what they’ve bought before when you’re sending out a marketing message about buying their mother something before May 10. However, if you do have information about the customer, say you know they’ve ordered flowers for their mother last year, then you can combine the trending recommendation with what you know about their behavior.




Read more in

Advanced Segmentation and Automation Are Changing the Marketing Game

Tuesday, July 28, 2015

Retailers get into predictive analytics

Here on All Analytics, we’re generally sold on the value of predictive analytics. The question is: Are retailers, particularly those managed by people who believe in their gut intuition, sold on it? Even they are starting to appreciate what analytics can do for their business.

Dean Abbott
Dean Abbott
According to Dean Abbott, co-founder and chief data scientist at SmarterHQ and author ofApplied Predictive Analytics: Principles and Techniques for the Professional Data Analyst, it is ushering a cultural change for retail.
I recently chatted with Abbott about what the application of predictive analytics means to the retail space. Read more in 

Predictive Analytics: Data and Retail Expertise

Thursday, November 20, 2014

Data for doctors: should there be limits on it?

This summer, Carolinas HealthCare System made the news rounds as a warning of the new levels of data mining available to healthcare companies. In Hospitals Are Mining Patients' Credit Card Data to Predict Who Will Get Sick, we get a very Big Brother type of picture of the invasiveness of such data mining with an illustrative picture showing a doctor saying, “Don’t lie to me, Susan, I know about the 2 a.m. Papa John’s deliveries.”

 It makes for dramatic copy, but it’s still in the realm of fiction rather than fact, as I found our when  I contacted Carolinas HealthCare and got a response from Jason Schneider, Director, Clinical PR. He explained that the article “focused on how providers could use data for in the future and didn't include details what data we are currently using and how we are using it.”

The data they are currently using does not follow an individual’s consumer trail but looks at things like socio-economic circles, neighborhood limitations, and cultural affiliation that could shape one’s access to healthcare. One example of that was identifying why patients in one particular area were not coming in for regular doctor’s visits. It turned out that it didn’t have reliable public transportation to a doctor's office. After identifying the geographic problem, Carolinas HealthCare set up a doctor in the neighborhood itself.


As the person quoted in each of the articles on Carolinas use of data is Dr.  Michael Dulin, chief clinical officer for analytics and outcomes research at Carolinas, I contacted him and spoke with him on the phone. He explained that Carolinas has a decade of experience in using data to improve healthcare by identifying individuals within contexts that could pose obstacles to care.

Read more in 

More Info in the Name of Better Healthcare