Microsoft Store – Retail Tips on Online vs. Offline

Microsoft Retail Store
Microsoft realized it needed a store presence to properly present its brand to the world

About a year ago I reported about seeing the Microsoft store for the first time. You can read about it here.  The stores are meant to be Microsoft’s interpretation of the Apple store experience.  The stores also give Microsoft a opportunity to better manage its image in a hyper competitive environment, by providing a specific place to showcase its software and products from its partners.

Well now Microsoft has just under 10 retail stores up, the latest being opened in Houston and Atlanta.   Stores are now near Phoenix, Chicago, Denver, LA, and Seattle. Rumors persist about a New York store (2012 Update; Two stores will open in the New York area, but not near the flagship store yet – see this post for details) ; Personally I am still amazed at how Costco came to Harlem  (and not amazed by the problems of building a megastore in real estate challenged New York – see Crain’s article here ) , so looking for a Microsoft store would be amazing.  (Apple, not to be outdone, has opened a store in Grand Central Station, its fourth in Manhattan). New York moves quickly, so time will tell.

Some posts have criticized Microsoft for not having the same number of stores as Apple.  But is that really necessary? It’s worth a case study, but so far Microsoft needs to provide distinguishing experiences that galvanizes its loyal customers first.  That focus can help create the right buzz, essential against daily posts on Apple and Google.

Many small businesses run into the similar choice of how to run online and offline.  How fast show we be growing? What do we offer online?  A few following points put in context being online vs. offline.

1. There’s been some criticism that Microsoft is expanding too slowly.  In comparison Apple did not place stores everywhere, either. I spent nearly three years in Alabama, and no official Apple retail store existed in the state ( Apple certified retailers in Alabama existed, however). You had to drive to either Atlanta or Nashville to see one.  Apple eventually came to Huntsville and Birmingham.  But my point is that the need to scale is relative to a business model, and a slow role out is not a bad one if the stores are being managed well to satisfy customers.

2. Despite the fact that people do research companies online, what is most essential is what connects to the business model. Amazon proved that its model of retailing online was scalable. Apple uses its stores to create an experience for new and old buyers alike.

In short there are different ways to retail. It’s up to you to determine what channel fits your business model.  A business model is not a list of products or services.  A business model is planned by the way the service or product is delivered to the customer.

3. Do not think of offline and online as strictly being separate activities. What you can do is figure out what syncs well between the experience online versus in store, and execute these syncs with social media where applicable.  Facebook can be a source of updates. Combined with Meet Up, Facebook can be used to gather people for special events, be it a fund raiser for a non-profit or a panel on an industry subject at your location.  Twitter can be used to share updates around a particular hashtag — for hashtag inspirations, see the post on using Twitter at a trade show at

There’s debate about having a Facebook page to retail a product or service – in short, whether people will purchase on Facebook rather than a site.  IMHO I don’t believe that it will replace a website, and you should not eliminate a website entirely.  Think of Facebook as a channel on which you need to understand if you customer is willing to purchase.  Do they spend so much time there that a website is not? What would drive people from Facebook — as popular as it is, there are still things that can happen that can reduce a business’ chance of success.   And what about search engine optimization advantages from having your own website? Gone if there’s no website.

5. Notice that when I stated the locations, I said Microsoft is near Chicago, Phoenix, LA, and Seattle.  Even a cash-flush company like Microsoft selected locations that had visibility but did not jump into lavished locations.  For a small business, there’s a great takeaway: No one said you have to be downtown for the first store.  If you choose to be downtown, just make sure the location advantage is clear and can be quickly applied to the bottom line.

How iPad + Hyundai Equus = Analytics opportunity for revolutionizing customer service at auto dealers

Apple’s iPad may be revolutionizing customer service for auto dealers


The iPad has received much hype since Apple’s announcement.  But the news that really caught my attention was Hyundai’s offering an iPad in the glove box of every new Equus.  The Equus is the brand’s most expensive vehicle, a premium sedan aiming to be a BMW 7 series alternative.  The iPad will serve as a service manual instead of the standard brochure.

Now this may sound like a slight come down for Apple — why have a $500 computer serve as a book — but there is a marketing advantage for Hyundai and Apple, along with an analytics opportunity as well.

Hyundai is in an interesting position. It has been strengthening its brand as of late to gain more upscale customers, but unlike Toyota, Nissan, and Honda, they can not create a whole new network and sales division by scratch (ie Lexus, Infiniti, and Acura). Adding an iPad creates a special and timely interest about the Equus.

For Apple, the inclusion addresses the criticisms for what an iPad can be besides an extra computer device.  Although much has been said about the ebook reader capability (and even more said about e-book pricing — more later in a separate post), there are not  many innovative examples to show the capability of an iPad or Slate device.  Replacing the service manual changes that.  The iPad revitalizes a long ignored feature in an automobile and renews the usability in an interesting way, similar to how Starbucks revitalized how consumers perceive coffee.

The iPad also becomes an analytics conduit for information.  According to USA Today’s article on Hyundai and Apple, the iPad will provide service information:

“The iPad will also schedule service appointments, for which owners won’t even have to drive to the dealer. To give the brand a more upscale feel, (Hyundai CEO John) Krafcik is creating a system in which a service attendant will pick up the car from the owner and leave them a loaner. Hyundai also is offering home test drives for potential buyers.”

This means increased customer service capability and more information on its target customers, premium buyers.  Toyota, Nissan, and Honda had the natural progression of customer lifestyle — buyers wanting more premium vehicles as they progress professionally — but these brands did not have the feedback potential Hyundai will have from customer communication to the dealer via the iPad (Maybe Toyota could learn a trick or two for the Lexus LF-A — see the Zimana blog post on it.)

Can an iPad be better in a Hyundai? With a little analytics, like Obama, yes it can!

Takeaways for small businesses:

  • Match your branding accordingly with whomever you partner with — Apple is not a luxury brand, but features and its stores incorporate features of a premium brand (and it is positioning iPad to be superior to netbooks).  This is a fit for Hyundai, which is not an Acura but will limit production on Equus, establishing some premium level above the vehicle on the second rung, Genesis.
  • Technology can serve as a gateway to offline engagement of customers.  Using the iPad will allow Hyundai to use all the techniques and tools to encourage a positive engagement at the dealership. Auto owners have had a negative impression of dealership experience, and all automakers struggle to ensure that any repair is a positive experience that will lead to repeat sales.
  • Analytics can aid your brands effort to strengthen its image by providing a means to gather customer feedback and infer how to improve customer service or product offering.



More than iPad (and maybe blogs) — A digital way of viewing magazine articles

Popular Science considers digitizing the magazine
Explaining how a digital magazine could work

[tweetmeme source=zimanablog]

With so much discussion about the iPad and the impact on e-books (see the New York Times article regarding the potential price premium of an e-book because of the iPad), there has not been much discussion on digital magazines. Until now.

Gregg Hano, Group Publisher of Bonnier Technology Group, spoke at a recent gathering sponsored by Digital Flash NYC (which sponsors some great business panels with solid Q&A — see the Digital Flash NYC site here for more on the group and their event schedule!) . Hano presented an explanatory video of the digital version of Popular Science magazine, currently researched with Bonnier design partner BERG, and spoke about the challenges and opportunity potential. Hano graciously listened to many questions from the audience, with excellent queries ranging from analytics to owner’s rights to the purchased content. Highlighted queries include:

    A digital magazine creates the potential for publishers to control content, though like book publishers, magazine publishers fret about how this can be done.
    There is potential for selling individual articles as well as selling e-reader subscriptions as a premium (at least initially).
    Advertisers can create ads rich in content that can true engage readers.
    There can be a distinct market for readers of a print magazine.

For web analytics, this along with iPad are further example of content consumption away from a given tagged website. The new challenge for blogs, e-magazines, newspapers, and other content providers is to capture the path that leads to traditional web metrics such as increased time on site and conversion.

You can view the Bonnier/BERG video on the development of a digital magazine here.

Update: Bonnier has released a Popular Science app for the iPad. You can read about the new application, and how Bonnier developed the app in 60 days at the Apple site.

Bookmark and Share

Start your car? There’s now an app for that!


Place this in the “Yeah, I can see this coming from somebody SOMEwhere” department: Viper, an auto security system company, has introduced a new iPhone application designed to start your car. Priced at $299 if you own a Viper alarm or $499 if you need an alarm and app, the SmartStart will also unlock the trunk and lock/unlock the doors. Granted there is a Zipcar app, plus there are now vehicles like Nissan Altima, Lexus IS, and Ford Taurus that will start when a keyfob is in the vehicle. However, the SmartStart is natural extention of the idea to aftermarket, and one of the first major aftermarket offerings. Certainly not the last.

You can read about SmartStart and see the associated videos here at the Autoblog post

Bookmark and Share