MAXIMIZE ROI BY                                UNLOCKING THE FULL VALUE                                OF UNDISCOVERED CON...
Maximize ROI by Unlocking the Full Value of Undiscovered           Content
A big number
The web outpaces stores20.0%15.0%10.0%                                                                                  To...
Customer acquisition through search               Interactive marketing spend                     Mobile                  ...
But most clicks go to few sites Natural search: five sites captured 20% of clicks on  natural search links in the fourth ...
Most paid search clicks, too Paid search: top 10 web sites attracted 16% of clicks  on paid search ads (Amazon was No. 1 ...
Paid search is expensive                   Monthly paid search spend                     (in millions of dollars)$5.00$4.0...
Maximize ROI by Unlocking the Full Value of Undiscovered Content
WHAT ARE YOU DOING NOW ISN’T WORKING Social hasn’t converted Mobile isn’t a “channel” Email is great… but you already knew...
NEW CUSTOMERS ARE HARD TO FIND     your data won’t get you customers you don’t already have.  You understand what your  cu...
USE THE GREAT CONTENT YOU ALREADY HAVE
THE NEW WAY, BIG DATA MARKETING APPS, WORKS                                             use the collective                ...
BLOOMREACH’S BIG DATA APPLICATIONS         driving business results with two big data applications   founded in 2008 by  G...
BLOOMREACH & MEIJER
ABOUT MEIJER• Privately-held, 75 years old• 200+ stores across 6 states• #298 in Internet Retailer Top 500• Thousands of p...
MEIJER’S CHALLENGE          Thousands of products are added                 every week to Meijer.com          expanding pr...
IMPROVED EXPERIENCE WITH BLOOMREACH                                        BloomSearch     New                            ...
INCREASE NON-BRANDED SEARCH                      Thousands of thematic pages have been created and Meijer.com             ...
MEIJER’S NON-BRANDED VISITS MAKE A JUMP              Since the beginning of the partnerships, non-branded visits          ...
BLOOMREACH INFLUENCED REVENUE          revenue    influenced by BloomReach has     increased an average of 70%+     month-...
THE ECONOMIC IMPACT
WHAT IS A TEI?WHAT: The Total Economic ImpactTM is a standard methodologydeveloped by Forrester Research Inc., enhancing a...
THE COMPOSITE ORGANIZATION – ESTABLISHED• Sells $3.5 B annually from a portfolio of 25,000 products (US only).• Derives 25...
THE COMPOSITE ORGANIZATION – EMERGING• Sells $250 million annually from a portfolio of 3,000 products (US only).• Derives ...
WHAT IS THE FORRESTER TOTAL ECONOMIC IMPACTOF BLOOMSEARCH?Forrester worked with BloomReach to analyze the total economic i...
COMPOSITE ANALYSIS     Through interviews and data aggregation, Forrester concluded the following                         ...
WHAT MATTERS MOST TO CUSTOMERS?                   Established Brands                                Emerging Brands       ...
BLOOMSEARCH BY THE NUMBERS        $3.24:1   Return on ad spend. Based on                  gross profit for established bra...
BLOOMSEARCH BY THE NUMBERS                Of time it takes annually to analyze and optimize         10%    BloomSearch onc...
A NEW WAY
YOU CANNOT WIN THE OLD/CURRENT WAY1,000 head terms              < 25% of pages                 90% search traffic         ...
DRIVE INCREMENTAL TRAFFIC AND REVENUE                                                                                     ...
WHAT DOES THIS MEAN FOR THE CONSUMER?    better experiences, more discovery
WHAT CAN THIS MEAN FOR YOU?           more revenuenatural search uplift       125%        100                             ...
THANK YOU. Dean Davison, ddavison@forrester.comJoelle Kaufman, joelle@bloomreach.com      Erik Small, erik.small@meijer.com
Upcoming SlideShare
Loading in …5
×

Maximize ROI by Unlocking the Full Value of Undiscovered Content

675 views

Published on

The webinar explored the need for retailers to reach new customers using natural search. Participants were Forrester Research's Dean Davison, Meijer.com's Erik Small and BloomReach's Joelle Kaufman.

Forrester TEI report referenced is available here - http://go.bloomreach.com/tei-report

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
675
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Welcome. My name is Don Davis. I’m the editor in chief of Internet Retailer magazine and I’ll be moderating today’s discussion.We’ll be talking about how retailers can acquire new online customers in a cost effective way through natural search—and how you can make a convincing case that this can be done to your top management.We’ll be hearing from: INSERT DETAILS HEREAfter their presentations we’ll take questions. You can ask questions at any time using the box provided. And you will all get an e-mail after today’s discussion explaining how you can get a copy of the presentation.So let’s begin, and what better place to begin than by sizing the opportunity in selling online today.
  • That’s the size of the online retail market worldwide in 2012, according to market research firm eMarketer. The global market is growing at better than 15% a year and will reach nearly $2 trillion by 2016, eMarketer says.Even in the U.S., the most mature of e-commerce markets, growth has been running consistently over 15% since the recession ended a few years ago.
  • This chart shows the growth in online retail sales in the U.S., the dark blue bar, versus total retail, the light blue. As we all know, the web is steadily taking sales from stores.I thought it was interesting that a couple of weeks ago Macy’s reported that its same-store sales grew 3.9% in the fourth quarter, but 85% of that growth was online. They count Macy’s.com and Bloomingdales.com in their same-store sales, and that’s where the growth is coming from.Overall,the web grew 15.8% in the fourth quarter of 2012, versus 4.0% for all of retail.For the full year, e-commerce growth was also 15.8%, while total retail grew 4.8%.So there’s big opportunity online, but you have to attract new customers to grow. And search marketing is the main way retailers do that.
  • This chart shows the breakdown of spending on online marketing channels by companies of all kinds, according to Forrester Research. Search takes well over half that spend, and retailers especially rely on search marketing for new customer acquisition.
  • But it’s not so easy, especially if you’re not a well-known brand. In the fourth quarter of last year, 20% of all clicks on natural search links went to just five sites—Amazon was the leading retailer, and fifth overall among all sites. 500 sites captured nearly half the clicks.
  • It wasn’t much different in terms of paid search clicks. Again, the big players dominate.
  • The difference is that to be a big player in paid search you have to be willing to spend a lot. This chart shows the monthly spending in millions of dollars by the five retailers that ranked highest in paid search traffic in a study by ROI Revolution.Amazon can afford to spend nearly $4 million dollars a month on paid search ads, but not many other retailers can. That’s what makes it so valuable for a retailer if it can show up high in natural search results on Google and Bing, and get those free clicks. How to do that better is what we’re going to be talking about today.
  • Our speakers will be: Joelle Kaufman, Head of Marketing for Bloomreach, a Big Data marketing platform-- Erik Small, Senior Manager Online advertising and eCommerce for the grocery chain Meijer-- as well as Dean Davison Principal Consultant for Forrester Consulting.Remember, you can ask questions at any time and we’ll take your questions after the presentations. And you’ll all receive an e-mail about how to access these presentations.With that, I’ll turn it over to…
  • Mobile is a personal bridge to the internet
  • I like this version
  • Maximize ROI by Unlocking the Full Value of Undiscovered Content

    1. 1. MAXIMIZE ROI BY UNLOCKING THE FULL VALUE OF UNDISCOVERED CONTENT Dean Davison, Principal Consultant, Forrester Consulting Joelle Kaufman, Head of Marketing, BloomReachErik Small, Senior Manager, Online Advertising & eCommerce, Meijer
    2. 2. Maximize ROI by Unlocking the Full Value of Undiscovered Content
    3. 3. A big number
    4. 4. The web outpaces stores20.0%15.0%10.0% Total retail 5.0% E-commerce 0.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 -5.0%-10.0% Source: U.S. Department of Commerce
    5. 5. Customer acquisition through search Interactive marketing spend Mobile Social 2% 5% E-mail 4% Search Display 59% 30% Source: Forrester Research
    6. 6. But most clicks go to few sites Natural search: five sites captured 20% of clicks on natural search links in the fourth quarter of 2012 (Amazon was the top retailer, fifth overall, at 1.4%). Natural search: top 500 sites capture nearly 50% of all clicks.Source: Experian Marketing Services
    7. 7. Most paid search clicks, too Paid search: top 10 web sites attracted 16% of clicks on paid search ads (Amazon was No. 1 at 4.2%). Paid search: top 500 captured 56%. Source: Experian Marketing Services
    8. 8. Paid search is expensive Monthly paid search spend (in millions of dollars)$5.00$4.00$3.00$2.00 $3.91 2.76$1.00 $1.70 0.86 0.78$0.00 Amazon Target Wal-Mart Sears LowesSource: ROI Revolution,Internet Retailer Search Marketing Guide
    9. 9. Maximize ROI by Unlocking the Full Value of Undiscovered Content
    10. 10. WHAT ARE YOU DOING NOW ISN’T WORKING Social hasn’t converted Mobile isn’t a “channel” Email is great… but you already knew them You need something else
    11. 11. NEW CUSTOMERS ARE HARD TO FIND your data won’t get you customers you don’t already have. You understand what your customers are doing… but what about everyone else?
    12. 12. USE THE GREAT CONTENT YOU ALREADY HAVE
    13. 13. THE NEW WAY, BIG DATA MARKETING APPS, WORKS use the collective intelligence of your Billions site and the web to: pages per day capture 60% new customers Billions interactions over 25% more natural search traffic per day 2x more conversion than paid searchThousands of hadoop jobs/day
    14. 14. BLOOMREACH’S BIG DATA APPLICATIONS driving business results with two big data applications founded in 2008 by Google, Yahoo!, and Facebook the world’s first big data engineers, backed by marketing application for natural Bain Capital search customer Ventures, Lightspeed acquisition Ventures, and NEA increasing advertising ROI using big data to deliver relevance in paid search
    15. 15. BLOOMREACH & MEIJER
    16. 16. ABOUT MEIJER• Privately-held, 75 years old• 200+ stores across 6 states• #298 in Internet Retailer Top 500• Thousands of products across dozens of categories• Online channel via Meijer.com optimized through direct, paid, affiliate, organic, email
    17. 17. MEIJER’S CHALLENGE Thousands of products are added every week to Meijer.com expanding product categories and sub-categories The new product pages are indexed and crawled by search engines, generating site traffic ? User experience is limited to internal search filtering, navigation, and our interpretation of search intent
    18. 18. IMPROVED EXPERIENCE WITH BLOOMREACH BloomSearch New big data large scale web Meijer marketing crawl – billions product application of pages per pages day machine learning and natural language processing demand prediction “Scratch Resistant “Red Home Framed Bedroom Accent Décor” Furniture”
    19. 19. INCREASE NON-BRANDED SEARCH Thousands of thematic pages have been created and Meijer.com has seen 92%+ increase in non-branded organic search traffic BloomReach thematic page“Rustic Wood Table”
    20. 20. MEIJER’S NON-BRANDED VISITS MAKE A JUMP Since the beginning of the partnerships, non-branded visits are up 60%+ year-over-year (Dec ‘11 to Dec ‘12)
    21. 21. BLOOMREACH INFLUENCED REVENUE revenue influenced by BloomReach has increased an average of 70%+ month-over- month since thepartnership began
    22. 22. THE ECONOMIC IMPACT
    23. 23. WHAT IS A TEI?WHAT: The Total Economic ImpactTM is a standard methodologydeveloped by Forrester Research Inc., enhancing a company’stechnology decision-making processWHY: To provide prospects and clients with a framework forevaluating the potential financial impact of BloomSearchHOW: Based on interviews with four BloomReachcustomers, Forrester constructed a TEI framework, a compositecompany, and modeled the associated ROI analysis thatillustrates the economic impact. The composite organizations fallinto two categories: established and emerging.
    24. 24. THE COMPOSITE ORGANIZATION – ESTABLISHED• Sells $3.5 B annually from a portfolio of 25,000 products (US only).• Derives 25% of sales from online in year 1; increases to 45% in the third year.• Converts 6% of direct marketing and 3% of traffic from paid search and SEO.• Runs remarketing campaigns that have a 5% conversion rate.• Views search as important and has a full-time individual assigned to manage search.
    25. 25. THE COMPOSITE ORGANIZATION – EMERGING• Sells $250 million annually from a portfolio of 3,000 products (US only).• Derives 40% of traffic from paid search, 40% from SEO, and 20% from affiliate sites.• Converts 3% of its traffic into sales and adds customers to a central customer list.• Views natural search an interesting experiment as a potential new channel.
    26. 26. WHAT IS THE FORRESTER TOTAL ECONOMIC IMPACTOF BLOOMSEARCH?Forrester worked with BloomReach to analyze the total economic impact thatBloomSearch has on a number of its customers, who shared these businesschallenges and objectives… Natural search is a vast unknown opportunity We need to We’re a large brand and looking for We’re an emerging grow TOP alternatives to SEO brand and want to line revenue and paid search grow in a cost- effective way
    27. 27. COMPOSITE ANALYSIS Through interviews and data aggregation, Forrester concluded the following financial impact BloomSearch had on customers… Established Brands Emerging Brands ROI ROI 196% 638% Payback Payback 2.5 days 1.2 months 3-year revenue impact 3-year revenue impact $464M $75M
    28. 28. WHAT MATTERS MOST TO CUSTOMERS? Established Brands Emerging Brands Benefits BenefitsTEI broke down 34% 31% 26% “multichannel “conversion rate “capturing misses fromthe specific marketing similar to 50% other channels” efficiency” “brand building at abenefits, costs, remarketing” fraction of cost”and metrics 35% 24%that mattered “capturing misses from “conversion rates better than SEM” other channels”to customers… Costs Costs 99% 93% pay for pay for performance performance fee fee 1% 7% startup startup
    29. 29. BLOOMSEARCH BY THE NUMBERS $3.24:1 Return on ad spend. Based on gross profit for established brands. Return on ad spend. Based on $5.85:1 gross profit for emerging brands. BloomSearch traffic from 60% noncustomers.
    30. 30. BLOOMSEARCH BY THE NUMBERS Of time it takes annually to analyze and optimize 10% BloomSearch once it is integrated. Of total costs to build an emerging brand by product 4% discounting. BloomSearch is 4% of traditional brand building costs. Conversion rate improvement. BloomSearch 100% conversionrate is 2x the paid search conversion rate.
    31. 31. A NEW WAY
    32. 32. YOU CANNOT WIN THE OLD/CURRENT WAY1,000 head terms < 25% of pages 90% search traffic > 40% of getting natural is branded products change search each month web and onsite analytics (to the tune of 5 TB everyday) natural language processing (12B phrases and growing) continuous machine learning (1000 Hadoop Jobs per day) Web Relevance Engine Relevant, rich Dynamic content New, targeted link graph (related category pages content)identify and optimize 60/40 split > 1 M long-tail 75% of pages incremental 60% net new get found customers variations non-branded
    33. 33. DRIVE INCREMENTAL TRAFFIC AND REVENUE thematic pages aggregate desired products reducing click related content to discovery and relevance add relevant content to drive traffic to undiscovered pages while flattening site new category (thematic) page filtering relevant products existing category or product page SHOP FOR CHIC BLACK DRESSES COLOR Red Blue Striped TYPE Lace A line Open back related searches related products street chic dress red shift dress dakota black dress open back short sleeveless with black polka dot black sheer dress sleeve dress cinched bodice belted dress with lace and sheer with sleeves > more > more > more
    34. 34. WHAT DOES THIS MEAN FOR THE CONSUMER? better experiences, more discovery
    35. 35. WHAT CAN THIS MEAN FOR YOU? more revenuenatural search uplift 125% 100 90% 75 equal or 50 higher conversion rates 25 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 months since bloomsearch launch
    36. 36. THANK YOU. Dean Davison, ddavison@forrester.comJoelle Kaufman, joelle@bloomreach.com Erik Small, erik.small@meijer.com

    ×