Full service eCommerce consultancy Est 2006, 42 staff focused on retail We do: strategy, platform implementation, digital marketing We deliver: traffic, engagement & conversions We work with over 25 retail brands.
Now I want to share some basic stats on the online consumer and channels we have derived from our clients.
We are lucky to have visibility across many clients – these stats are derived averages Higher carts is driven by free shipping although strong brands get this anyway (ie. FN). * Only 43% bought on first day – this is an opportunity to learn about the customer Brand aware traffic is the major traffic source when it comes to conversions – EDM, Social, Direct, branded search, etc. Unbranded traffic can be much more than 20% but as only 40% convert on first visit this traffic is quickly turned into branded traffic We mainly work with multi-channel retailers so this stat is skewed towards that type of retailer
Consumer is exposed to many channels – this is an opportunity for brand to have many touchpoints Should capitalise on all that are relevant BUT need to understand their strengths Channel ROI varies largely between retailer type and product you are selling Product Comparison, Paid Search and Clearance is particularly strong for known brands Generic product works well with organic search, aggregation Presentation focus on In-Store, Mobile, Social
Now I will go into some of the multi-channel implementations we have trialed in the past year
I want to high light the impact of web traffic to online and in-store sales. We have 2 examples – a low price high volume chair @ $135. Matt blatt sell hundreds of these every month Sales are consistent across both channel except when promoted via the web/email which created a larger spike in web sales.
Compare this to a $2000 item which only sells a handful. Time lag between research and sale First online purchase is probably a customer ordering after seeing the item in a showroom This kind of item makes up a good proportion of purchases that don’t happen in first day/visit Careful not to optimise just for online results
Email is still the killer app in terms of ROI at a tactical campaign level. Once challenge is how multi-channel retailers leverage they large store network. Some retailers have very successful loyalty programs but that can be difficult to execute in a high transaction environment. We came up with this idea of creating a POS display…. We got up to 550 acquisitions in busy stores over the first weekend. 550 x $0.10 = $5.5 cost – approx $0.30 per email - $8,580 value per year.
FB has been key to supre online from day one. We have built the Fan base to over 360k fans in the past 20 months. Referral traffic strong and sales are OK but nowhere near as strong as email so we needed to migrate. We wanted to use this opportunity to understand what impact social had on in-store so we create a competition that would give members $5 voucher that could be redeemed in-store OR online for subscribing to the supre newseletter. The had ot enter name, email and mobile phone number. We then sent an SMS to their phone with a unique code. Interesting 75% were redeemed in store even though the customer was in-front of their computer that very moment… One factor that skews this stat is that the Supre FB user is very young… younger than the online shopper.
Mobile is getting bigger by the day. We are seeing up to 10-20% of web traffic coming from mobile device. Every retailer should invest in a mobile optimised website. We have been doing lots of work in this area and are about to roll out a brand new platform. Mobile optimized websites are about transaction execution = making it easy for your customer to transact on their mobile device. Mobile apps are much more versitile in terms of engaging the user. One major thing here is that apps can have push notifications. You can send a targeted and personalised message directly to your consumers device. Combine this with the ability to GEO fence (geographically target) these messages and you implement strategies to drive certain behaviours (i.e. new store open, weak sales in Chats wood). Another interesting aspect is util based or gamefied apps. One good example I read about is the diapers.com baby change/ feeding tracking app.
While multi-channel is the topic for today I think it is important to capitalise on the extended reach of online. Physical store network has geographic limit GEO specific SEO/SEM (i.e. BSK)
The online DFO model – OzSale, BrandsExclusive make up the lions share of apparel traffic in Australia (look at hitwise stats) A nielsen study from Nov last year found that in Span equivalent online private club buying sites made up 77% of all online apparel transactions (conversions not dollars) Listing on these has been linked to higher traffic and conversions on brand sites
I want to recap on my key points You should aim to capitalise on your current channels for acquisition – use in store to build a database and drive users to the website You must understand attribution – this will help you optimise your sales funnel properly – avoid optimising just for web (understand linked in-store sales) Online absolutely drives offline (it doesn’t canibalise)
How to make this happen for your brand or customers. Abstractly speaking there are 3 key components You need to invest in CRM to truly understand your customers, their buying behaviour and channel mix To do this you need to integrated your systems. Your website needs to talk to your CRM platfrom inc membership/loyalty information and ideally speak with your POS or ERP system so that you can link instore activity with web activity Once you have done this you can implement personalisation and triggered communications – the open rates and conversion rates for tiggered/personalised campaigns far exceeds any form of mass messaging
Online Retail: Brand Engagement in a Multi-Channel Environment
Understanding the multi-channel sales funnel Justus Wilde
<ul><li>Full service eCommerce consultancy </li></ul><ul><li>Est 2006, 42 staff focused on retail </li></ul><ul><li>We do: strategy, platform implementation, digital marketing </li></ul><ul><li>We deliver: traffic, engagement & conversions </li></ul>Quick Intro
<ul><li>Top 3 sites in fashion with 17% share </li></ul><ul><li>Lead in terms of conversions </li></ul>Clearance channels Source: Hitwise & Nielsen
<ul><li>Leverage all channels for acquisition </li></ul><ul><li>Understand attribution / sales funnel </li></ul><ul><li>Don’t optimise for just one channel </li></ul><ul><li>Online drives offline!! </li></ul>Key takeaways
<ul><li>Invest in CRM </li></ul><ul><li> Understand WHO, WHAT, WHERE </li></ul><ul><li>Integrate systems </li></ul><ul><li>eCommerce Platform + CRM + ERP/POS </li></ul><ul><li>Target and personalise </li></ul><ul><li>Give customers what they want </li></ul>Making it happen