PROFILE

Dan Frechtling

SVP Product and Marketing, CMO, G2 Web Services

Dan oversees product and marketing for G2 Web Services, a payments technology and service provider operating in the Americas, Europe, Middle East, and Asia.

Previously, Dan ran global product management for hibu, a leading provider of digital services connecting local consumers and merchants in the US, UK, Spain and Latin America. Prior to that, he was Vice President Marketing and Vice President Client Solutions for DS-IQ, where he re-launched digital couponing products for SUPERVALU and developed and executed marketing strategies for digital media at Walmart.

Earlier, he was general manager of DVD games and youth electronics as Director of Worldwide Marketing for Mattel. At Stamps.com he helped launch the first server-based web postage technology.  At McKinsey & Company he led engagements for consumer and technology clients.

Dan earned his MBA with distinction from Harvard Business School and his BS in Journalism/Economics from Northwestern University. He speaks Mandarin Chinese.

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  • Posted on: 06/21/2017

    How did mobile become the ‘glue’ in the Sephora shopping experience?

    Sephora's "try before you buy" digital ethos includes in-store, online, and mobile. In-store devices like Color IQ scanners recommend "scientifically precise lip, foundation and concealer matches." Online it learned from YouTubers and hosts a Beauty Workshop of curated videos. The Digital Makeover Guide in the app is another tactic in the digital strategy.It's ironic that Sephora has found a way to deliver a higher touch experience, without associates, simply by leaving people alone to play. Other categories that thrive on how-to imagery -- fashion, furniture, home renovation, gardening, cooking, and the like -- can apply mobile and digital lessons from Sephora.
  • Posted on: 06/16/2017

    What happens now that Amazon is acquiring Whole Foods?

    This could go in many different directions over time. At first Whole Foods will remain standalone. But Amazon is certainly able to bring a technology, data and Prime focus.On the technology front, that means more e-commerce and omnichannel to help Whole Foods expand its geographic reach without physical capital investment. Expect more Whole Foods orders online. Some day drones from roofs? Maybe, when now you have 450 rooftops.With data, a blending of customer insight, especially around the upscale buyer, will help Whole Foods understand more habits in more categories about its own customers. This can promote both SKU expansion and rationalization.With Prime, the model is not just about delivery but the pricing package itself. "Subscribing to your grocer" will become a new option to augment other Prime benefits.
  • Posted on: 06/09/2017

    Is it time for stores to ditch the free Wi-Fi?

    Removing Wi-Fi for shoppers seems to be a losing proposition. In addition to the loss of customer emails that the article mentions, stores lose the opportunity for anonymous data from shoppers that help measure traffic and time in store. There’s also lost marketing effectiveness: Jo-Ann Fabric Facebook ads targeted to Wi-Fi users yield six times the number of store visits.The business case for in-store Wi-Fi is valid whether shoppers use it or not. Associates use Wi-Fi to look up inventory and product information—even shopper profiles—while helping shoppers on the floor. Devices such as kiosks, shelf screens and mobile point-of-sale (mPOS) use it.The benefits easily justify the low investment.
  • Posted on: 05/23/2017

    Can offline word-of-mouth be used to drive business results?

    Offline word of mouth is continuous, while online is discontinuous. In other words, silence during a face-to-face or phone conversation is awkward, while pausing before responding while texting or chatting is natural. As a result, offline word of mouth is spontaneous and even off-topic, while online WOM is premeditated and biased toward socially acceptable topics.The best way to get anyone talking is to stay top of mind. The best way to stay top of mind is to target your most loyal users, who already are thinking about you. Give them deals and incentives to recommend you to their friends. Give them seasonally-relevant tips to help them solve their problems and help their friends and family as well. This is far better than spending media to drive "stories" to get uninterested non-users to talk about you.
  • Posted on: 05/17/2017

    Did Starbucks turn its POS outage into a win?

    “If you want to be a millionaire, start with a billion dollars and launch a new airline,” says Richard Branson, who ultimately sold Virgin America to Alaska Airlines. As Alaska is another Seattle company like Starbucks, now’s the time if they can part with the money!
  • Posted on: 05/15/2017

    Will mobile wallets replace plastic loyalty cards?

    Are loyalty programs better served by mobile platforms than a plastic cards? The answer is yes if consumers track points and use coupons, such as in the case of high-frequency trips like getting coffee. But the answer is maybe in the case of low-frequency trips such as getting haircuts, where the utility is no greater than a punch card and the hassle of installing and fumbling for an app looms larger.But the question was about digital wallets, which are more than loyalty card holders. Digital wallets are payment mechanisms, like Paypal, Apple Pay and Masterpass. Consumers are highly unlikely to pay with merchant-specific digital wallets just to earn points, except for rare exceptions like Starbucks. This places the leverage in the hands of the digital wallet providers, who would be well-positioned to offer federated loyalty programs like Plenti.
  • Posted on: 04/24/2017

    Should Bloomingdale’s sales associates receive commissions for online sales?

    Some method of giving associates credit for online sales is in order. But the general approach of spreading commissions from online sales to store staff based on shopper geography creates a free rider problem that doesn’t compensate individual effort. A more personal model of attribution is needed.For online orders shipped home, attribution is technically simple but financially knotty. Here are three ways, by degree of difficulty:
    1. Associates facilitate orders of out-of-stock or non-inventoried items with tablets before the shopper leaves the store;
    2. Associates get credit for home orders via a code or a unique landing page for their clients and a CRM model that tags shoppers when they are online. Getting shoppers to use the code, though, usually requires a discount or access to curated items;
    3. Associates are assumed credit when a matching system detects online orders from shoppers match a database of previous in-store transactions.
    For BOPIS, tracking time spent with in-store pickups and compensating them seems only fair. Furthermore, it creates a relationship-building opportunity that can channel more online sales like the above.All of the above add cost. There’s associate commissions, shopper discounts and IT system costs. This triple margin hit can undercut what makes online orders so economically attractive to brick-and-mortar stores in the first place.
  • Posted on: 04/16/2017

    Have hacks damaged Amazon’s relationships with third-party sellers and customers?

    Amazon need only follow its own advice here: "as fraudsters get smarter so do we."Amazon can implement better protections, such as default two factor authentication when account passwords are changed, confirmation requests to sellers when credentials are updated, cancellation of accounts that are dormant for extended periods, and notifications to merchants when their usernames match breach lists on sites like "Have I been pwned?"Amazon's marketplace value proposition is safe. The above are all methods that other eCommerce retailers, banks, or social networks have implemented. So it's a matter of choice, not feasibility.
  • Posted on: 04/09/2017

    Can Amazon Cash open e-commerce up to millions of underbanked consumers?

    Amazon wants to be able to sell everything to everybody. Jeff Bezos has said he wants Prime to be so accessible and so appealing that not using it would be irresponsible. The “variety” strategy, which use to be confined to product selection, now extends to payments.AmazonCash opens ecommerce for lower income families. Those earning less than $25K use cash for 48% of their transactions, and those who earn $25-50K use it for 33% of transactions, according to PayNearMe. Others with a higher than average preference for cash include millennials and the elderly.The utility of Amazon cash is bigger in countries outside the US where cash is more commonplace. Cash use in Eastern Europe exceeds 70%. Ecommerce in India and Russia is commonly paid COD. So the opportunity is larger in developing countries.
  • Posted on: 03/27/2017

    Using a social app to prepare for a U.S. retail launch

    Of all the categories to research, apparel is most suitable for social media as it is a visual trade. Simply present snapshots and gather the "likes" and "dislikes" that users tag.But I agree with Ricardo that Facebook, Twitter and LinkedIn are superior channels to a purpose-built app like Wear.Facebook is the largest assemblage of socio-demographics, so you can see who is responding, and even target your questions. Twitter enables fast, short responses. LinkedIn has the largest grouping of business professionals. All three provide strong viral capacity as users share surveys with friends, followers and contacts.
  • Posted on: 03/08/2017

    Are retailers vulnerable to hacks from within?

    The largest loopholes that enable data breaches do indeed come from within. Willingly or unwillingly, employees create weaknesses. These come in two forms:1. Subversive. As described in the Columbia example above, today’s go-getter can become tomorrow’s ruthless ex-employee furthering a career at a competitor. Unmonitored logins create unlocked doors. Even if email and account access is terminated immediately with the employee, a cunning job seeker may have snatched portable trade secrets before tendering his/her resignation.2. Suckers. Employees have always ignored security protocols. More protocols beget more lapses that fraudsters exploit. Further, the fortress headquarters can’t be locked down as it once was. The twin movements of BYOD (bring-your-own-device) and telecommuting have made for a target-rich environment for cybercriminals with BEC (business email compromise) being a chief threat.What’s true in espionage is unfortunately also true in apparel. Expect more tools to make their way into private sector attacks -- the spoils are too large to ignore.
  • Posted on: 02/25/2017

    Six ways to prevent your e-mails from being flagged as graymail

    Tip #3 is really the meta-tip. A-B test your way to better outcomes by varying advice about subject lines, relevant communications, optimal times, and ideal frequency.In addition, consider your call-to-action. Is it a physical trip to the store or something more measurable, like viewing a coupon, visiting a product page, or reading a recipe tip?Finally, readability is as important as deliverability. Emails should be mobile-optimized not just for images, but for fonts as well--smartphone email apps can unintentionally shrink body copy to 6 point or smaller.
  • Posted on: 02/16/2017

    What will Walmart gain from its Moosejaw acquisition?

    Walmart needs a change in strategy to overtake e-commerce rivals. After an uncertain commitment online and several changes in personnel and approach, it now needs to act decisively to catch up.Moosejaw’s founders and investors needed to answer, “What’s it worth to be independent in a consolidating vertical?” The decision centered around whether to take the money or fight on alone. The deal was apparently too good to pass up.Moosejaw, like ShoeBuy, gives Walmart access to a wider assortment, higher end brands and a higher end customer base. Unlike ShoeBuy, which was rolled up under Jet.com, Moosejaw will retain some independence as a separate unit under Walmart.
  • Posted on: 02/10/2017

    Will a universal cart change online shopping?

    It’s a beautiful idea for the web visitor. It makes both adding items into your cart and checking out far easier. Expect online shoppers to ultimately purchase more, even after some additional abandonment as they wantonly add items they didn’t really need.But there are downsides to the common platform. It will be hard for shoppers to see terms and conditions, such as shipping and returns, during the checkout process. They may miss additional fees and recurring charges. Customer service costs will go up. A universal architecture also makes fraud easier, as bad actors will have an easier time cracking one cart than multitudes retailer-specific ones.Faster selection, faster check-out, faster fraud. On a superficial level, this is a killer idea -- if the implementation doesn't kill it off.
  • Posted on: 01/20/2017

    What factors weigh on tech purchase decisions?

    Unfortunately, the “user” experience varies greatly from the “buyer” experience when it comes to technology. This is especially true for small retailers and other SMBs. Vendors and owners alike fixate on the selling process, often leading to disappointment post-sale. A very common disappointment is getting locked into a solution before fully understanding it.How can a business owner avoid this? Choosing technologies -- and vendors -- that allow buyers to make changes post-sale helps to a great degree. This includes configurations (which modules are used), usage (the volume consumed, especially seasonal fluctuations) and service (“how-to” and other answers fast).By offering flexibility, vendors can close higher contract values because owners will pay a premium for the option to change later.

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