Q&A: Sears Presses Case for Alternative Marketing Strategy

Sears Holding has turned to alternative media as a key part of its marketing strategy over the past two years, developing a range of promotions and communications vehicles that reach consumers through the web, cell phones and social networks. Most recently, it launched Good News Now, at GNN.com, an Internet-based vehicle featuring feel-good stories and linked to the Sears.com web site. The company continues to build on other recently developed initiatives including Shop Your Way, which offers consumers choice in the method of purchasing they might prefer for different occasions, and Sears2Go, which incorporates mobile phone-based shopping. Not everyone has applauded the initiatives Sears has launched lately, our Bnet colleague Ian Ritter being one skeptic, but Tom Aiello, divisional vice president of public relations for Sears Holding, maintains that the company is developing a strategy — part of a new marketing effort being rolled out under the theme: Life. Well spent. — that will build on the strengths of the Sears and Kmart core operations, helping them reach customers more effectively.

Bnet: Some folks are skeptical that the partnership between Sears and AOL that resulted in the Good News Now network online will amount to much, but where do you see GNN in terms of Sears evolving programs to reach customers in new ways?

Aiello: Sears is making a big investment in technology. We have seen several positive indicators, including a reversal on negative trends in home appliances and increased sales for three quarters in a tough economy. We have seen bright spots we can build on in our dot com business. Our dot com business is very strong, powered by innovation; this is the catalyst for our online business growth. We have received top consumer awards lately, named by e-tailing group, inc. as the top web site in their e-commerce gauge survey. This is a strong indication that Sears is definitely doing the right things and turning toward success. We launched the mysears.com network that allows us to tap into the phenomenon of social networks and have conversations direct with our customers. We hear their feedback, and we work to meet their ever-changing needs. We engage with our customers, and we are committed to staying relevant and meeting their needs.

Bnet: Why did you go with AOL, which has its share of critics, in the latest incarnation of GNN rather than Yahoo, your original partner in the holiday period test?

Aiello: We took a fresh look at it this year, and we looked at AOL as pioneer in online news. They bring a very loyal audience and are a popular online news source. That drove our decision on the partnership.

Bnet: The idea of creating vehicles that focus on positive stories primarily has been tried in mainstream media but hasn’t had long-term success. Why did you decide to launch Good News Now as a promotional vehicle?

Aiello: We were looking for non-traditional vehicles and elements to bring our brand to life. For example, we developed an innovative purpose marketing program called Heroes at Home, where 100 percent of money raised goes to help military families. We are not just talking. We are taking action.

Many customers have changed their spending habits in light of the recession. They are no longer trying to keep up with the family next door. They define happiness by the quality of their family life. That is where Sears has credibility and can make a difference. As we continue to emerge from the recession, Life. Well spent. and GNN will still be relevant to customers. Anything in the digital space, our social media portals, Sears.com, has that capability to generate good news. We are creating authentic conversations with our customers. It is required in the digital space and social media. We have stories that are not picked up by the more traditional media. These are really heartfelt stories that people want to read — everyday.

Bnet: It seems as if many of these initiatives originated as tactical ventures or responses to particular circumstances but now are evolving into a strategy. Is that the case and how is that strategy evolving?

Aiello: An example would be Shop Your Way, where we leveraged technical innovation on a more tactical level in store and online. We saw the opportunity of fusing the online and in store experience by creating the bridge Shop Your Way. So customers can get anything they want, on their time, when they want. If they go to a Sears store, and what they wanted is not in stock, then they will not waste a shopping trip. They can go to the Shop Your Way kiosk and make a selection, access that product on line and place their order.  Since we did not have it at the store, we will ship it for free. If they shop at home and want to order it online but are concerned that money or timing is tight, they can save shipping costs and drive to their favorite Sears store where within five minutes after they arrive, they are loading the item in their car. It becomes a differentiator for Sears.

We have a mobile friendly web site-Sears2go, Sears.com, our stores and our services. We have the largest retail service force in the country. If you put these together, then we are creating value in our customers’ lives every day. You have now developed the long-term strategy.

From a program we started already, like ordering an item on line then picking it up in the store, that was a tactical initiative. We layered it with online and mobile devices applications, and it became the strategic driver to Shop Your Way. It is based on the success we are having. And we are looking at ways to evolve these programs, again based on the feedback of our customers.