• Dia Creative
  • Posts
  • eCommerce Companies Win, Holiday Marketing, and Zara's Business Model

eCommerce Companies Win, Holiday Marketing, and Zara's Business Model

December 12 - Edition #25

Author

Dia Creative
December 12, 2024

December 12, 2024 - Edition #39

This week you'll learn:

  • đź—ł A Win For Ecommerce Companies

  • đź—Ł SMS Marketing During The Holidays

  • 🧳 Zara’s Customer-Driven Business Model

  • ⚡️ Quick Hits: Google’s AI Shopping Search, Black Friday Ecommerce Sales, Youtube Updates, Jaguar’s Rebrand, and The Word Of 2024.

A Win for eCommerce Companies

A federal judge in Pennsylvania has dismissed wiretapping and surveillance claims against eCommerce companies AddShoppers, Nutrisystem, and Vivint. The decision in Ingrao v. AddShoppers found that the plaintiffs' personal information was not used improperly for targeted advertising purposes.

The Allegations

The plaintiffs alleged that the companies compiled users' personal information to send targeted ads which violated privacy laws. However, the court determined that the information was not actually disclosed in a manner that would support that.

This ruling shows an important example of how courts view the collection and use of consumer data by eCommerce companies for ads.

Key takeaways include:

  • Simply collecting user data for internal ad targeting may not constitute illegal disclosure under certain privacy laws

  • Plaintiffs must demonstrate actual improper disclosure of personal information to outside parties to support surveillance and wiretapping claims

  • eCommerce companies still need robust privacy policies and practices, but have some flexibility in using collected data for their own marketing

As online privacy remains a hot-button issue, eCommerce brands must strike a balance between using user data for effective advertising and respecting consumer privacy rights. Clear policies and secure data handling practices are essential.

Increasing Holiday Sales Through SMS Marketing

Image Source: Skipio

Text messaging is still a hidden treasure for businesses waiting to be used. Let's explore how to use SMS marketing effectively during this vital holiday season.

Strategic Segmentation

Start by creating targeted segments for your SMS campaigns:

  • Holiday preference groups (Christmas, Hanukkah, Kwanzaa)

  • Previous purchase behavior

  • Geographic location for shipping deadlines

  • Engagement level with past messages

This personalization prevents list fatigue and keeps unsubscribe rates low while maintaining high engagement.

Creative Campaign Ideas

Make promotional messages more effective:

  • 12 Days of Deals: Share a new offer every day.

  • Gift Guides: Send ideas based on recipient types like Mom or Dad.

  • Last-Minute Gifts: Focus on gift cards and digital options.

  • Post-Holiday Spending: Suggest items for leftover holiday cash.

Building Authentic Connections

Mix promotions with messages that build connections:

  • Share heartfelt holiday wishes to show appreciation.

  • Highlight your charitable efforts to connect with shared values.

  • Give recipients the choice to opt out of holiday messages.

  • Add personal notes or team photos for a more human touch.

Timing Your Messages

Boost results with smart timing:

  • Send morning texts for urgent, time-sensitive offers.

  • Use weekends to target shoppers ready to browse and buy.

  • Remind customers about shipping deadlines to avoid last-minute stress.

  • Share final promotions on New Year’s Eve to capture last-minute sales.

Effective holiday SMS campaigns balance timely sales with building trust for lasting customer loyalty.

Inside Zara’s Customer-First Strategy

Image Source: Zara

Zara turned customer behavior into a global success story, growing from a single Spanish store to a worldwide fashion leader with smart, organic strategies.

The Speed-to-Market Secret

At the heart of Zara's success is their revolutionary 21-day design-to-store process, powered by a customer feedback system.

Their strategy revolves around three key elements:

  • Customer Co-Creation: Rather than traditional trend forecasting, Zara uses real-time customer feedback and purchase data to influence design decisions. They analyze millions of daily customer interactions across their digital platforms to identify emerging trends.

  • Tech-Enabled Inventory: Using RFID technology and integrated stock management, Zara maintains precise control over their inventory, enabling same-day delivery in many markets and reducing waste. This system operates in 25 markets, connecting online demand with local store stock.

  • Zero-Ad Growth: Unlike competitors who spend heavily on advertising, Zara invests in prime retail locations and digital experience. This organic approach has led to over 10 million daily website visitors and a 41% increase in e-commerce revenue in a single year.

Digital-First Evolution

Founder Amancio Ortega built the brand on a simple principle: "The customer has always driven the business model." This vision evolved into a digital strategy that blends data analytics with fashion intuition.

Their online presence isn't just a sales channel – it's a continuous feedback loop that informs product development and inventory decisions. The result? A 95% increase in online sales and the ability to reach customers in 41 countries without traditional marketing spend.

By letting customer behavior guide their strategy rather than fashion industry conventions, Zara has created a self-sustaining growth engine that continues to set new standards for retail success.

⚡️ Quick Hits

What we’re working on right now

Have you listened to our Podcast yet? Pioneering Perspectives: A Dia Creative Podcast 🎙️

Ready to break new ground in marketing? In this podcast, we crack the code of marketing within regulated industries. Join real industry leaders as they navigate the unique challenges and share their groundbreaking strategies for success in the marketing field. Our goal is to inspire and equip you to conquer the frontiers of marketing in a complex landscape. Click here to listen to the episode of Pioneering Perspectives with Brian Maurer.

Brian Maurer, co-founder at Bristle, brings extensive experience in driving genomic technology adoption and applications within new and emerging markets. With a background in leading commercial efforts at companies like Illumina, he played a key role in advancing genomics. Brian’s tenure at Twist Bioscience involved managing the growth of their genomic sequencing business in Northern California. His passion lies in leveraging innovative healthcare technology to enhance patient outcomes.

Were you forwarded this email? Click here to sign up