Just 15 years ago, retailers relied on physical stores to engage customers, show merchandise and build brand loyalty. Marketing was a combination of newspaper ads, catalogs and print mailers, supported by the strengths of phone and in-store customer service. Enhancing the interaction between customer and store clerk was an important part of completing a sale. Now, online retailers face global competition for the attention of customers. E-commerce employs multiple digital marketing channels – websites, email, social media, mobile apps – to do what physical stores have long strived for, which is to enhance the relationship between customer and retailer in order to drive greater online sales. With the ultimate goal of increasing sales, online retailers face ongoing marketing challenges including: • How do we attract quality prospects and customers? • How do we improve customer loyalty and return visits? • How do we increase the aver age size of orders? • How do we improve the customer experience? • How do we maximize our marketing investment with 1 :1 targeting
No one does this better than retail. The retail vertical has embraced the abundance of data that the web provides more than any other vertical. Think about Amazons recommendation Engine, or search comparison sites. These are aggressive data hungry based companies looking to “Squeeze value from every bit and byte of data” Up-sell, Re-sell Re-target
This could easily be a 20 minute on it’s own. Retail marketers are expected to deliver fast results, increase conversions with smaller budgets, and defend their online marketing investments with solid data. Many turn to testing elements to achieve better results While a headline may draw visitors to a website, what happens after they get there is now a very sophisticated arena: A/B testing Multivariate tests Bayesian Learning Methods Dynamic HTML blending. These last two really signify just how far retail has come and the emphasize placed data, statistics and machine learning used to understand and aid the customers experience. The list of clever methods is endless, all based on the fact that this increases a websites performance in delivery.
What does all this optimization lead to? Well monetization, bigger gains and company growth comes off the back of this. Things like adwords, are now common place as other revenue option to the online arena - making more money from available real estate on the site. I.E other avenues not even related to their products are available to increase revenues. – cheers Google. Again Amazon has sponsored links in there site.
BUT… Despite all this sophisticated technology, retail has a chance of becoming almost too data focused on getting the sale or conversion and risk loosing one of the fundamentals of marketing – namely “ Who is your audience” Traditional marketing suggests that for any given product or brand: 1 Define your audience 2. Segment 3. Target 4. Position Not a linear process – not how people use the internet Audiences evolve. Wont talk on this as Tim Lumb from Microsoft is talking specifically about this area, but it’s important to beware of the changing state of the web.
If we think about a purchase from a users perspective, why are they buying the product? Lets think about a camera: Yes, the site can drive me to a more expensive camera sell me the extras and maybe even do such a good job that I want to use their site again. They’ve used the relevant data well and pushed and squeezed me to a higher value product. ..but what was the reason for the purchase?
Tribal fusion is a behavioral network, based on contextualizing webpages of individuals and categorizing these behaviours We are then able to target and optimize to users with those behaviours. What we can also do is flip this idea on its head, and understand the audience that visit specific webpages, by the users that visit them and the behaviours they have associated with them. Each web page has key words associated with it about it’s content
In the summer time ,family holiday, keeping kids entertained. DVD’s blu-rays LCD Games consoles Star Wars!! Cars Bikes Luggage New clothes And travel.
Best time of year for retail – People live for Q4 Sales increase, site traffic is up, lets get these people to the end and get the money and retarget and up-sell and cross sell and more more more.
Xmas Audience Fundamentally different audience to the rest of the year. December’s data is indicative of a ‘transactional user’, purchasing gifts for the family Not the audience we thought to see! High lift out of the ordinary topics include: Research of popular holidays to Florida & Portugal – very family orientated destinations! Home wear, wedding supplies, Beauty shopping and manicures. Topics indicating a real female ‘mother figure’ audience
Optimizisng the journey is good if you know who the person is
IAB Retail Conference Deck
Michael Pearmain ¦ UK Insights Manager Understanding how customers engage with retail brands online.
<ul><li>Data is powerful </li></ul><ul><ul><li>Helps retail get the most money from the wallet. </li></ul></ul><ul><li>Understand the audience </li></ul><ul><ul><li>The customer isn’t always who you think. </li></ul></ul><ul><li>Is digital retail 2.0 really marketing 1.0 </li></ul><ul><ul><li>A return to segment, target, position. </li></ul></ul>Summary
Michael Pearmain UK Insights Manager E: firstname.lastname@example.org Thank you