• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
The Retailer’s Video Playbook: Video Moves Shoppers To Buy
 

The Retailer’s Video Playbook: Video Moves Shoppers To Buy

on

  • 715 views

As many as 85% of retailers are employing e-Commerce video to increase customer engagement, time spent per page, conversion rates, average order value and retention. ...

As many as 85% of retailers are employing e-Commerce video to increase customer engagement, time spent per page, conversion rates, average order value and retention.
Video also is improving SEO rankings, as at least 66% of consumers now view e-Commerce videos regularly during the purchase cycle.

This E-book provides 10 steps to implementing a successful video marketing strategy.

Statistics

Views

Total Views
715
Views on SlideShare
715
Embed Views
0

Actions

Likes
0
Downloads
7
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

CC Attribution-NonCommercial LicenseCC Attribution-NonCommercial License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    The Retailer’s Video Playbook: Video Moves Shoppers To Buy The Retailer’s Video Playbook: Video Moves Shoppers To Buy Document Transcript

    • White Paper The Retailer’s Video Playbook: Video Moves Shoppers To Buy Sponsored by
    • Just as smartphones replaced traditional cell phones, e-Commerce videos are replacing static web photos and text as the next e-Retailing standard. In fact, 85% of merchants already are employing video to engage online customers, according to research from the e-tailing group. As consumer demand for e-Commerce video grows, the question for most retailers is not whether to incorporate videos, but how to achieve the best results from video throughout their enterprises from this continuously developing strategy. Consumers research exhaustively before buying products online and want swift access to facts and demonstrations that increase understanding and buying confidence. E-Commerce videos satisfy this need while increasing consumer engagement, time spent per page, conversion rates, average order values (AOVs), and retention. Video program results can be verified quickly. As videos are viewed, analytics of shopper behavior reveal devices used, length of engagement, points at which the viewer rewinds or re-watches, and when viewers add to cart and purchase. The color, motion, sound, and lure of e-Commerce videos give products life and definition and have a greater impact on key retail metrics than static images. Retailers launching or expanding their e-Commerce video programs can use the market data, case study results, and the 2 “Video drives engagement and education, which is very important given today’s information-hungry, hard-to-captivate online shopper.” -Craig Nankervis, First Analysis TWEET THIS 10-step implementation process provided in this white paper to substantiate, streamline, and optimize retail video strategies. “Video drives engagement and education, which is very important given today’s information-hungry, hard-to-captivate online shopper, who is constantly seeking differentiated, engaging ways to digest content,” stated Craig Nankervis, VP and CRM Analyst for First Analysis, a private growth equity research and investment firm. “Video is singular in its ability to deliver a fun and informative buying experience. This dynamic is generating increased demand for video across e-Commerce. We are seeing this strategy’s positive impact on SEO rankings and conversion rates, as well as implementations at various stages of the sales funnel, and its use in post-purchase scenarios, such as video newsletters and new customer on-boarding.” Video Statistics Summary
    • The demand for video is growing: as many as 66% of consumers now view e-Commerce videos regularly during the purchasing process, 90% watch videos at least once in a while, and 74% will view a video more than once when researching information-intensive products, such as computers, TVs, and power tools, reported Lauren Freedman, President of the e-tailing group. As consumers continue to embrace e-Commerce videos, Freedman says: “We will see a greater understanding of consumer behavior and subsequent merchant sophistication in terms of where and how to deploy e-Commerce videos and what types deliver from an ROI point of view.” This white paper will guide both pure-play e-Commerce and omnichannel retailers in their efforts to win more sales with e-Commerce video campaigns that move shoppers to buy — and assist them after the sale. 74% 66% will view a video more than once when researching informationintensive products of consumers now view e-Commerce videos regularly during the purchasing process 90% watch videos at least once in a while –the e-tailing group 3 “By the end of this year, there will be significantly more discussion around not just the benefits of deploying video, but the opportunity cost of not doing so.” -Lauren Freedman, the e-tailing group The 10 Steps to Implementing A Successful Video Marketing Strategy TWEET THIS 1. Understand What Video Means For Your Business Consumers have grown accustomed to viewing online videos (Netflix, YouTube, Amazon). In June 2013 alone, comScore reported that 183 million Americans watched more than 44 billion online content videos and the number of video ad views surpassed 20 billion. According to Cisco, global online video traffic will represent 55% of all consumer Internet traffic in 2016, and by 2017, “it would take an individual over 5 million years to watch the amount of video that will cross global IP networks each month.” Video has hit the mainstream. Consumers now expect and demand product videos across the online buying landscape, and retailers who want to stay relevant must respond, noted Freedman. “By the end of this year, there will be significantly more discussion around not just the benefits of deploying video, but the opportunity cost of not doing so.” In June 2013, 183 million Americans watched more than 44 billion online videos. –comScore
    • Retail businesses must start creating and delivering powerful e-Commerce video programs that engage and educate customers at key points in the purchase cycle. Advanced solution platforms can display and manage customized content while providing critical insights into the business results they achieve. More than half (51.9%) of marketers said video was the content strategy with the best ROI, according to eMarketer.com. “But don’t just jump in,” advised Craig Wax, CEO of Invodo. “Carefully consider your business objectives, audience, message, response goals, and more. Also determine whether production, content management, and other program elements should be handled in-house, or by experts experienced in getting the most from video programs.” Retailers Corroborate Video Marketing Success Leading national retailers espouse the benefits of a successful, measurable video marketing strategy: „„ The Step2 Company found that shoppers who viewed product videos were 174% more likely to purchase than viewers who did not. “Video lets us connect with [consumers] in an authentic way, whether they’re on our site, on a retailer’s site, or in a retail store,” said Tena Crock, Online Marketing Director for Step2. „„ At Samsonite, online video viewers are six times more likely to purchase than nonviewers. “The addition of product videos has helped improve the user experience,” said Alison Katz, Senior E-Commerce Manager at Samsonite, “and increased our sales conversion rate.” „„ As L’Occitane site visitors watch product videos, “they’re actually adding more to their carts,” reported Evan Silverberg, Manager of Digital Products for L’Occitane. In addition, they are “spending more time on product pages, and their ATV (average transaction value) tends to be a little higher.” Real-time analytics “allow us to understand the behaviors our online customers are taking when they land on a product page.” 4 „„ Communicating the Dickies brand message of no-nonsense quality, utility, and great consumer value — along with workwear features and attributes — “isn’t easy with just photography and twodimensional images,” stated Robert Dietrich, Digital Marketing Manager for Dickies. “Bringing these [aspects] to life to help consumers understand the value of our products and quality has been really important.” „„ For Brown Jordan, portraying the function and form of quality patio furniture is difficult with text and images alone. “We think we have the greatest brand in our industry [but needed] to do a better job of telling our story,” revealed Stephen F. Elton, Chief Brand Officer for the luxury outdoor furniture company. Brown Jordan embraced e-Commerce video to better convey the company and product line to consumers. “That’s really the end goal for us — to tell our story to as many people as possible.” „„ At Bizchair.com, 33% of online sales came from the 13% of site visitors who viewed product videos. In addition, video viewers purchased at almost three times the rate of nonviewers, and their AOV was 17.5% higher. After measuring the impact of video, BizChair obtained “the proof of ROI that we need,” stated Sean Belnick, CEO of BizChair.com.
    • 2. Build The Business Case For C-Level Buy-In To build buy-in, the company’s video evangelists must identify key stakeholders across the C-suite, do their homework, and be armed with information tailored to each function. This should include market data as well as the measurable results reported by leading (and competitive) retailers already boosting ROI with e-Commerce video. These benefits could include increased site traffic, customer engagement, time spent per page, SEO rankings, conversion rates, AOV, and much more — combined with reduced product return rates. Buy-in is more likely when C-level executives understand how video marketing can enhance the customer experience across channels and allow a better understanding of the features and benefits that drive shoppers to buy. Lenovo is doing just that: in addition to improving the customer experience, data from the brand’s e-Commerce video platform “provides a window into how E-Commerce video “clearly has value — to our customers who can acquire the information they seek to guide them to purchase.” -Rick Almeida Clarks America consumers make purchase decisions,” said Lewis Broadnax, Executive Director of Web Sales and Marketing for Lenovo. “This confirms the effectiveness of video as a sales tool.” E-Commerce video “clearly has value — both to our customers who can acquire the information they seek to guide them to purchase, and to Clarks for its significant return on investment,” stated Rick Almeida, Director of E-Commerce at Clarks America. In addition to improving the customer experience, data from the brand’s e-Commerce video platform “provides a window into how consumers make purchase decisions,” said Lewis Broadnax, Executive Director of Web Sales and Marketing for Lenovo. 5 TWEET THIS How Consumers Shop With Video
    • 3. Identify Video Program Components “Video production requires time, energy, oversight, and involvement.” The elements of a video program include choices of partners, technology platforms, and merchandising capabilities. First, consider whether your current e-Commerce platform is equipped and ready to handle video. Other questions to ask include: -Robert Dietrich, Dickies XX What are the destination channels, devices, and formats? XX How will content be hosted and streamed across the site? XX How will the video player be implemented? XX How can we analyze the results of the videos? XX How flexible is the content management system (CMS)? XX Will all product videos reside in a central location that can be managed remotely? An effective video program that drives results is professional, purposeful, and scalable. The strategy requires “a very specialized sort of experience,” stated TWEET THIS Robert Dietrich, Digital Marketing Manager for the Dickies brand. “Video production requires time, energy, oversight, and involvement.” That kind of bandwidth “is the perennial issue with any company,” said Dietrich, who chose a third-party e-Commerce video provider to supply that bandwidth. The selected vendor provided everything “from soup to nuts,” including “a clear plan of action in the way we produced, got everything arranged — through to postproduction — and finalized a product we’re all happy with.” Video Expands Consumer Confidence A recent study from the e-tailing group titled, How Consumers Shop With Video — And How To Sell To Them, surveyed more than 1,000 shoppers about e-Commerce video consumption. Findings revealed that among consumers who engage with online product videos: „„ 57% are more confident when watching a video in advance of making a purchase online, and therefore are less likely to return that product; „„ 52% are willing to stay on a site longer because product videos are available; 6 „„ 45% are more likely to return to a retailer who integrates video into the website experience; „„ 44% purchase more products on websites that provide educational videos; „„ 41% are more likely to share video (versus photos or written text) found on a product page; and „„ 40% purchase products on websites as a result of being influenced by videos.
    • 4. Pinpoint The Metrics To Measure Based on your business goals and video program needs, select measurable metrics that can validate that program objectives are being achieved. Most retailers focus on sales and conversions, but many other factors can be measured — including viewer attention span, engagement, customer satisfaction, interaction, and the exact point during the video a purchase is triggered. Everything to be measured must be properly tagged, and then run as a pilot to be sure the selected metrics are being quantified. The e-Commerce video platform under way at FootSmart will measure “time spent viewing the video as well as conversion and the feedback associated with that,” reported Lauren Schuman, Director of Online Merchandising and Content for the footwear company. “We also plan to “The overall results we seek include increased conversions, reduced product return rates, a better shopping experience, and greater productivity for the company.” -Lauren Schuman, FootSmart TWEET THIS do some A/B testing, such as video versus no video on a product detail page. The overall results we seek include increased conversions, reduced product return rates, a better shopping experience, and greater productivity for the company.” The e-Commerce video platform under way at FootSmart will measure “time spent viewing the video as well as conversion and the feedback associated with that,” reported Lauren Schuman, Director of Online Merchandising and Content. 7
    • 5. Define Video Type And Style Will the video program address a category or specific product? Will complex products require demonstrations? Is lifestyle the primary selling point? These and many other elements influence the type of video to pilot. Type then determines style: video tone, background, setting, audio, environment, location, talent, and other content creation features. All must parallel and complement video program business goals and brand positioning. “We invest time up front to really understand the retailer’s brand positioning and mission for the program, then produce a customized Style Guide that steers a consistent look and feel.” -Craig Wax, Invodo “At Invodo, we invest time up front to really understand the retailer’s brand positioning and mission for the program, then produce a customized Style Guide that steers a consistent look and feel,” said Wax. “Each Style Guide includes recommended best practices, based on the many e-Commerce videos we’ve created and implemented.” TWEET THIS 6. Select The Product(s) To Highlight Retailers new to e-Commerce video should begin by choosing key product categories, then selecting a handful of products within those categories to enliven with online video. A combination of complex, high-value, demonstrable, and high-margin products is best for initial video implementation. Select enough products within each segment to get quick, statistically valid results during a pilot. But even though the initial video launch might be small, be sure the program is capable of scaling up to maximize the investment: can videos for other products, and eventually the entire catalog, be integrated with the program technology? In time, can product subsets also be covered by video and included on product pages to increase cross-sell and upsell potential? Videos will be able to address new marketing opportunities in the future, so be sure your platform can scale up to accommodate additional videos and leverage the full power of e-Commerce video technologies. 8
    • 7. Establish A Budget For Video Creation And Marketing To create a budget for video, start with a basic business plan including ROI analysis. Determine the volume of video that can be driven incrementally within that budget, with a focus on specific goals. As pilots move to full implementation, the ROI realized may allow for additional spend. Some retailers seek to minimize the cost of video by producing their own product videos, which can be a successful route, especially when staff has time available. However, experts trained in retail-specific video strategies, content, platforms, and production help retailers avoid potential pitfalls and improve results. According to comScore, professionally produced video optimized for e-Commerce outperforms user-generated content (UGC) video by Professionally produced video outperforms user-generated content (UGC) by 30% -comScore TWEET THIS 30%, delivering a 24.7% lift, as compared with an 18.7% lift for the UGC video. In addition, some e-Commerce video partners can produce and deploy content within just a few business days. 9
    • 8. Format Video For Multiple Screens Return on Production (ROP) of e-Commerce videos can be achieved by reducing costs and creating efficiencies throughout the video production process. Videos delivered to a smartphone or in-store display have different technical specifications than those projected on a desktop monitor or widescreen Internetconnected television. Differences also exist among videos delivered via email, Facebook, and web sites. Video will attract a broader spectrum of viewers when it is formatted for multiple screens. During setup, address all formats, aspect ratios, and orientations while producing the main product page video, when little additional work is required to satisfy multiscreen needs. With that setup in place, you can run a single production session to create an e-Commerce video for all screens: web site, in-store, social, and mobile. TWEET THIS All videos must be encoded with targeted viewing destinations. Sophisticated video platforms will detect the user device — Android, iOS, tablet, laptop, or desktop — then automatically trigger the corresponding technical controls. This multiuse session reduces overall costs, thereby increasing the return on production (ROP). ROP can be achieved by reducing costs and creating efficiencies throughout the video production process. Video Augments Mobile Outreach When shopping via mobile, where video content is easier and more inviting to consume than tedious text, consumers are three times more likely to click and view product videos than desktop or laptop users, reported Forbes. Accordingly, e-Commerce video consumption can triple as mobile usage and access speeds expand. The mobile marketplace is expanding at an impressive rate. Smartphone shipments will grow worldwide to 1.16 billion in 2016, noted IDC, while tablet shipments are expected to reach 416 million in 2017, reported The NPD Group, up from 121 million in 2012. By 2015, as much as 66% of Internet traffic will come from mobile devices, according to PriceWaterhouseCoopers. In fact, by 2017, the number of mobile Internet device and application connections combined will exceed the world’s population, as mobile data traffic increases 13-fold over the next four years, Cisco indicated. Retailers can leverage and parallel this growth with e-Commerce video programs that target this burgeoning mobile user market. 10
    • 9. Test And Optimize The Video Program Confirm that the selected video platform enables experimental testing for true evaluation of video impact. Run an A/B test to measure sales impact or other results with or without a video, using voice-overs versus presenters, how-to versus features/ benefits, and other options. In addition to measuring for increased unit sales, a platform that allows cross-sell and upsell within the video also allows you to measure AOV increases. This shoppable video feature — which allows customers to browse and buy related products without ever leaving the video — is key to improving AOV. Where improved engagement is the goal, analyze how long consumers spent viewing and rewinding videos, what grabbed their interest, at what point they purchased, and where they backed out. Experimentation offers retailers valuable opportunities to modify and streamline video programs for improved ROI. Video testing at Golfsmith revealed SEO benefits as well as a 64% increase in conversion rates for products with video, which drove an additional $564,000 in annualized sales for the SKUs tested. Videos, then extended to other online golfing products, delivered “proven ROI by driving higher conversion rates while engaging and informing our customers,” said Jamey Maki, VP of North American E-Commerce for Golfsmith. “A 64% conversion rate increase across product categories speaks for itself.” In addition, the solution employed was the only one that delivered the “custom video content we needed, as well as the player, API, hosting and streaming.” Run an A/B test to measure sales impact or other results with or without a video, using voice-overs versus presenters, how-to versus features/benefits, and other options. TWEET THIS Allowing shoppers to rate and review online videos, as well as ask product questions, also helps retailers analyze and optimize programs for increased ROI. Encouraging consumers to rate, comment, and interact with product videos further increases engagement. This closed-loop, virtuous cycle of test, experiment, analyze, and enhance offers continual optimization. Video testing at Golfsmith revealed SEO benefits as well as a 64% increase in conversion rates for products with video, which drove an additional $564,000 in annualized sales for the SKUs tested. 11
    • 10. Make Video A Cross-Channel Endeavor When e-Commerce videos are leveraged across channels — including mobile, social, in-store and email — the strategy investment boosts ROI, further intensifying bottom-line results. In fact, cross-channel video strategies are “becoming the norm,” said Freedman. “Consumers want product video available on-demand on computers, tablets, smartphones, and Internet-connected televisions. They aren’t concerned with form factors, devices, or operating systems — as the ‘HTML5 versus Flash’ debate demonstrated — they just want to access product videos whenever and wherever they choose. Retailers must satisfy this demand by leveraging new platforms and tools that allow better and faster content delivery across channels, as well as the consistency needed for omnichannel consumers.” In-store QR codes featured on displays and product packaging allow smartphoneenabled shoppers to access e-Commerce brand videos instantly. Linking to mobile video is the most popular use for mobile action codes: according to mobile action code survey results reported by MediaPost, 40% of codes scanned took users to some kind of video content, including product demos. “Consumers want product video available on-demand on computers, tablets, smartphones and Internet-connected televisions.” -Lauren Freedman the e-tailing group TWEET THIS Step2 is among the retailers leveraging e-Commerce video investment through QR codes in stores that sell its products. The company deployed posters with QR codes throughout Toys “R” Us stores, providing real-time access via smartphone to videos showing Step2 products in action. “Gaining an advantage in this evolving world of multichannel selling requires retailers to become more service-oriented, putting information in consumers’ hands whenever and wherever they’re motivated to research and buy,” said Wax. “Compelling product videos made available across channels help serviceminded retailers to this information, and in turn, build loyalty and create stronger product differentiation.” Also Availab QR Codes Offer Real-Time Access To Product Videos Step2 deployed posters with QR codes throughout Toys “R” Us stores, providing real-time access via smartphone to videos showing Step2 products in action. Prepare & Share Kitchen Item # 736698 41 piece accessory set Accessories may vary. ™ Cooking Sounds Sparkling Decals 12 Item # 736693 See Team Member for Assistance
    • The 11th Step: Start Today At the aggressive rate e-Commerce video is growing, retailers must stay relevant with quality video marketing of their product catalogs. In fact, bringing products to life on product pages is “just the tip of the sword,” stated Wax. “E-Commerce video will be making its way through the entire customer journey, from browsing to aftersale support and beyond. Other industries also are integrating video. For example, in the service sector, video’s appeal and ability to engage and educate are reducing expensive call-center volume.” At First Analysis, Nankervis confirms the potential of e-Commerce video: “We are starting to see video being used in broader consumer contexts, including follow-up on upsell and cross-sell strategies. We think videos will become increasingly intelligent, such as allowing viewers to interact with video content by clicking ‘tell me more,’ as well as transact and communicate in real time with a brand.”  “E-Commerce video will be making its way through the entire customer journey, from browsing to after-sale support and beyond. Other industries also are integrating video.” -Craig Wax, Invodo TWEET THIS E-commerce video is “an exciting and rapidly changing market,” Freedman observed. “Ultimately the only sure thing is this: when we revisit this market in 2014, we’ll all be amazed by the progress made over the course of one short year.” 13
    • About Invodo 211 East Seventh Street Suite 1020 Austin, TX  78701 P: 512.279.4800 info@invodo.com Invodo educates and influences consumers by creating and delivering the world’s most powerful content. Invodo’s video programs combine strategy, production, and technology to drive shoppers to purchase. Invodo video content improves conversion rates, reduces returns, and increases consumer engagement. The Invodo video platform manages production workflow, delivers video SEO, and collects integrated analytics to drive ongoing optimization of video strategy. For more information, please visit www.invodo.com. About Retail TouchPoints 411 State Route 17 South Suite 410 Hasbrouck Heights, NJ 07604 P: 201.257.8528 F: 201.426.0181 info@retailtouchpoints.com Retail TouchPoints is an online publishing network for retail executives, with content focused on optimizing the customer experience across all channels. The Retail TouchPoints network is comprised of a weekly newsletter, insightful editorial blog, special reports, web seminars, exclusive benchmark research, and a content-rich web site featuring daily news updates and multimedia interviews at www.retailtouchpoints.com. The Retail TouchPoints team also interacts with social media communities via Facebook, Twitter, and LinkedIn. 14