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Jeffrey Grau, presents "Advantages of Multichannel Marketing

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  • This Webinar is brought to you by Citrix Online, makers of the GoToWebinar online event platform we’re using today. If you’re interested in hosting your own Webinars, please visit gotowebinar.com for a free trial of this software. In this session, your GoToWebinar attendee viewer is made of 2 parts, the viewer window where you’ll see the content presented, and the control panel where you can submit feedback during the presentation. We welcome you to submit questions and comments in the text question window on the right hand side of your screen.
  • A channel refers to an organizational unit in which A channel is not to be confused with a touchpoint which is a medium through which a retailer interacts with a customer. Examples include email, a Facebook fan page, a POS terminal
  • While the majority of retailers with an in-store pickup program require the customer to pay online, some have the option to reserve online and pay for the product in-store at pickup time. This appeals to customers who feel uncomfortable giving credit card information online or want to see an item before buying it. For retailers, this option makes it easier for customers to make additional purchases, since they pay for the reserved item and other purchases together. Finish Line, a seller of athletic apparel, offers the reserve option.
  • Retailers cite a number of benefits from offering buy online, pick up in-store. On a tactical level, it increases the opportunity for cross-sells and upsells. On a strategic level, it attracts new customers, leads to higher customer satisfaction and builds customer loyalty. Ace Hardware. 33% of customers purchased additional items when collecting online orders. (eMarketer interview, November 2009) Borders. 35% of customers purchased additional items when collecting online orders (Internet Retailer, January 2009)
  • Where it is promoted: homepage, product detail page, shopping cart, Confirmation: onsite thank you confirmation, order confirmation email, store pickup notification email Order notification: store location/contact information, store hours, pickup instructions, time allowed for pickup Store location: front register, designated pickup area, customer service desk, loading dock
  • While smartphones are the wave of the future, there are still compelling reasons why retailers prefer to install Web enabled devices in their stores.
  • Self-service kiosks, used by 21% of respondents, refer to brand showcases such as a Sherwin-Williams kiosk at a paint store.
  • With the iPad, a sales associate can carry with her all the product data, the customer data, and the recommendations available online. Because the device is so easily shareable, she can easily pull up recommendations and hand them to the customer. She can show the customer how the brown lounge chair he’s viewing in the store would look in the red color that’s available via special order and place that special order on the spot. Or she can play a demonstration video of the food processor that struck the customer’s interest and easily show customer reviews. The possibilities are endless. --Kevin Ertell, vp, of retail strategy for ForeSee Results, former e-business exec at Borders.com, from his blog, RetailShaken Not Stirred, April 13, 2010
  • average order values in catalog marketing tend to be higher than average order values in e-commerce, because you can show that customer how those three or four items all work together to create an outfit, and the customer then will be – can go on the telephone to talk to somebody about it, and as a result they’ll spend more. It’s a lot harder in e-commerce to make that whole story happen. Product groupings : You don’t go into a fashion catalog see a whole bunch of pages of blouses, and then a whole bunch of pages of skirts, even though that is what you do on the Web. In the catalog, you’ll have an outfit, and it’ll be wardrobing the jacket, the blouse, the skirt, the shoes, the necklace and everything sold on the same page. That’s a whole different approach. (McIntyre)
  • Website visitors who arrive from a catalog versus a search engine are more valuable customers in several respects. Mr. Hillstrom says catalog shoppers tend to be better qualified leads than the average customer and thus more likely to convert to buying. Catalog customers already know quite a bit about a retailer’s products by the time they arrive on its Website. The catalog, according to Mr. Clement, gives shoppers a sense of what a retailer’s merchandise is about and how it is organized. Catalog retailers find that the shoppers who arrive on their Website through organic search have much more difficulty navigating the site because they do not know what the key items are or how to find them. These shoppers frequently buy strange things, products that the brand may not even consider to be its key statement items.
  • “ Catalogs have survived in large part because there is a portion of the population that prefers to shop that way.” —Kevin Hillstrom, president, MineThatData, in an interview with eMarketer, February 2010
  • Customers respond to catalogs in a different way than they do online, says Aaron Magness, director for brand marketing and business development at Zappos. “We’re looking to find ways to interact with customers in a setting they’re comfortable with,” says Magness. “When you look at retailers like Williams-Sonoma or Victoria’s Secret, their catalogs drive a different type of interaction. There’s still a segment of people that look forward to flipping through a catalog.” To help maintain recent growth in online sales, Boston Green Goods, a retailer of healthy living and eco-friendly products across four e-commerce sites, is launching its second print catalog this month, Green and More, to support its e-commerce site GreenandMore.com. “Our catalogs drive traffic to our e-commerce sites,” founder and CEO Mercia Tapping says. (Internet Retailer, April 2010)
  • eMarketer_Webinar_Advantages_of_Multichannel_Marketing_20100520

    1. 1. Unica OnDemand Advantages of Multichannel Marketing The Webinar will begin at 1:00 PM EST You will be connected to audio using your computer’s microphone and speakers (VoIP). A headset is recommended. Or you may select Use Telephone after joining the Webinar. Dial-in phone: 516-453-0014 Access code: 212-322-664 Presented by: Jeffrey Grau eMarketer Senior Analyst Sponsored by:
    2. 2. Welcome Webinar Attendees Your GoToWebinar Attendee Viewer is made of 2 parts: 1. Viewer Window 2. Control Panel Type your question here
    3. 3. Jeffrey Grau Senior Analyst M A Y 2 0 1 0 The Advantages of Multichannel Marketing
    4. 4. It is all about “leveraging the strengths of each channel to create an overall customer experience that is greater than the sum of its parts. It’s 1+1=3.” — Kevin Ertell, VP, retail strategy, ForeSee Results, September 2009 What is multichannel marketing?
    5. 5. Topics we will cover <ul><li>Research online, buy in-store </li></ul><ul><li>Buy online, pick up in-store </li></ul><ul><li>Shop in-store, look up online </li></ul><ul><li>Shop the catalog, buy online </li></ul>
    6. 6. Research Online, Buy In-Store
    7. 7. The online channel excels as a source of product reviews, personalized recommendations and 24/7 shopping convenience. Multichannel marketing marries the best of e-commerce and stores Stores are a place to see and touch products, get answers from sales associates and satisfy immediate product needs.
    8. 8. Online research influences a significant amount of store sales
    9. 9. Consumers often research household products online
    10. 10. Sequential Interactive Smartphones change how consumers research online, buy in-store
    11. 11. How smartphones create an interactive in-store shopping experience <ul><li>See product ratings and reviews. </li></ul><ul><li>Receive real-time personalized offers and rewards. </li></ul><ul><li>Keep a wish list. </li></ul><ul><li>Share activities and products with friends on Facebook. </li></ul><ul><li>Check store inventory. </li></ul><ul><li>Compare competitors’ prices. </li></ul>
    12. 12. Retail beauty chain Sephora brings customer reviews to in-store shoppers <ul><li>The first retailer to create a mobile site for ratings and reviews in late 2009. </li></ul><ul><li>Has over 1 million reviews across almost single every product. </li></ul><ul><li>In-store shoppers retrieve reviews by typing in the product name or SKU number. </li></ul>“ The mobile site is driving sales in stores. It’s keeping some customers in stores longer by giving them this information at their fingertips.” — Julia Bornstein, senior VP, Sephora Direct, in Internet Retailer, November 2009
    13. 13. Gen Y leads other cohorts in using mobile phones while shopping in a store
    14. 14. Females are catching up to males in their mobile Internet usage
    15. 15. Buy Online, Pick Up In-Store
    16. 16. Buy online, pick up in-store Pick up in-store Ship to store
    17. 17. Nearly one-half of online shoppers say buy online, pick up in-store is important
    18. 18. <ul><li>Avoid shipping fees. </li></ul><ul><li>Satisfy an immediate need for a product. </li></ul><ul><li>See and touch a product in-store before purchase. </li></ul><ul><li>Avoid time shopping and checking out, since the item is already paid for. </li></ul><ul><li>Be confident that the product is available and waiting for them. </li></ul><ul><li>Eliminate concerns about letting a package sit on a doorstep while away. </li></ul>Benefits to consumers of buy online, pick up in-store
    19. 19. Retailers have the metrics to prove strong customer usage <ul><li>Ace Hardware. 73% of Web orders are shipped to stores and 80% of online revenue goes to ship-to-store (eMarketer interview, November 2009). </li></ul><ul><li>Borders. Every week, 25,000 to 30,000 customers use the option to reserve online and pay in-store (Internet Retailer, January 2009). </li></ul><ul><li>Wal-Mart. 40% of Web orders are shipped to a store (Internet Retailer, November 2009). </li></ul>
    20. 20. <ul><li>Systems. Knowing what inventory is in stock in all stores and sharing that information in real time with its Website operations. </li></ul><ul><li>Personnel. Deciding who should pull stock off the shelf and training employees to run the program. </li></ul><ul><li>Process. Ensuring there is enough store space to stage online orders waiting for pickup. </li></ul>Retailers face hurdles executing this service effectively
    21. 21. Retailers must consider many elements when planning the program <ul><li>Where on the retailer’s Website will the service be promoted? </li></ul><ul><li>What types of confirmation and notification messaging will be used? </li></ul><ul><li>What information will be given in the order notification message? </li></ul><ul><li>Where in the store will customers pick up their online orders? </li></ul>
    22. 22. Shop In-Store, Look Up Online
    23. 23. Shop in-store, look up online Web access In-store kiosk In-store POS terminal
    24. 24. <ul><li>Buy items online that are either out of stock or part of an expanded assortment of what is in stock (e.g., additional colors or sizes). </li></ul><ul><li>View detailed product information, customer ratings and reviews, and product videos. </li></ul><ul><li>Access wish lists and gift registries. </li></ul><ul><li>Check the status of loyalty points. </li></ul>Benefits to consumers of shop in-store, look up online
    25. 25. Most Web access terminals are used by store associates, not customers
    26. 26. Who should be the primary users of in-store Web devices? “ Our kiosks are ‘guided selling’ led by an outfitter, which is what we call our associates.” — Kari Blankenship, retail systems manager, Cabela’s “ I am not a big fan of in-store kiosks that consumers can use because it’s a lousy consumer experience.” — Fiona Dias, executive VP, partner strategy and marketing, GSI Commerce “ Our associates are trained to take the customer to the kiosk and help them look up a product.” — Pete Howard, senior VP, Staples Business Delivery
    27. 27. <ul><li>Sales associates need to be trained and incentivized to use kiosks to help customers. </li></ul><ul><li>Signage should be generously displayed to let customers know employees are ready to help them. </li></ul><ul><li>Retailers should use self-service kiosks to tout other store promotions and services. </li></ul><ul><li>Retailers should tie together their mobile commerce program with in-store shopping to create a good cross-channel customer experience. </li></ul>Key points: Shop in-store, look up online
    28. 28. Shop the Catalog, Buy Online
    29. 29. Shop the catalog, buy online or by phone Buy online Buy by phone Shop the catalog
    30. 30. Catalogs have advantages over other marketing tools <ul><li>Attractive displays and light weight make them enjoyable to browse. </li></ul><ul><li>They are hard to ignore because they arrive in the mail and must be dealt with. </li></ul><ul><li>By lying around the house, they serve as a constant reminder of a product of interest. </li></ul><ul><li>They create product awareness by exposing consumers to unfamiliar brands and products. </li></ul><ul><li>They emphasize product groupings which lead to higher order values. </li></ul>
    31. 31. Catalogs are driving e-commerce sales <ul><li>Shop the catalog, buy online is most popular with consumers ages 40 to 54. </li></ul><ul><li>Retailers encourage this shopping behavior because they can feature more merchandise and product information on their Website. </li></ul><ul><li>Website customers who arrive from a catalog are more valuable than those from a search engine because they buy at a higher rate and better understand the retailer’s value proposition. </li></ul>
    32. 32. Catalogs accommodate the needs of certain types of shoppers <ul><li>Shop the catalog, buy over the phone is most popular with consumers ages 55 and older and those living in rural areas. </li></ul><ul><li>Catalog shoppers who need hand-holding while buying high-priced items also prefer to order by phone. </li></ul><ul><li>The average value of a phone sales order is higher because skilled call center agents can stimulate upsell and cross-sell opportunities. </li></ul>
    33. 33. Cataloging: A tale of two retailers <ul><li>Shifting resources to its e-commerce business. </li></ul><ul><li>Replacing its semi-annual “big books” with specialized catalogs such as “Rooms Babies Love,” “Little Red Book” for women and “Matters of Style” for men. </li></ul><ul><li>Mailed 750,000 catalogs during 2009 holiday season to retain lapsed customers and attract new ones. </li></ul><ul><li>Recognized that customers respond to catalogs in a different way than they do online. </li></ul>
    34. 34. Key takeaways: The advantages of multichannel marketing <ul><li>Optimize your mobile commerce program for in-store shoppers. </li></ul><ul><li>It is not too early to think about how Apple’s iPad can be used by sales associates to assist customers. </li></ul><ul><li>In developing multichannel services take the time to understand your customers’ shopping behavior. </li></ul>
    35. 35. Thank you Jeffrey Grau Senior Analyst [email_address] (212) 763-6051
    36. 36. Commerce Optimization: Driving More Transactions
    37. 37. Inefficiency Means Lost Shoppers Lack of Product Detail Lack of Mobile Site Non-Relevant Products Non-scalable Site $ $ $ $ $ Inefficient Traffic Reasons for Shopper Drop Off Slow Website POWERING A BETTER INTERNET Making eCommerce More Efficient Sales/Orders $$ Attract More Shoppers Improve User Experience Securely Transact at Scale Commerce Optimization
    38. 38. eMarketer Retail Coverage Learn more about multichannel marketing with eMarketer Total Access. Visit: www.emarketer.com/products Call: 800-405-0844 Email: sales@emarketer.com <ul><li>Recent Reports: </li></ul><ul><li>Consumer Packaged Goods Take E-Commerce Path </li></ul><ul><li>How Retailers Handle Negative Buzz on Social Media Sites </li></ul><ul><li>US Retail E-Commerce Forecast: Room to Grow </li></ul><ul><li>The Role of Catalogs in a Multichannel Model </li></ul><ul><li>How Moms and Retailers Interact Online </li></ul><ul><li>Buy Online, Pick Up In-Store </li></ul><ul><li>Shop In-Store, Look Up Online </li></ul>All reports are available to Total Access clients.
    39. 39. Thank you for tuning in to the eMarketer Webinar: Advantages of Multichannel Marketing Presented by: Jeffrey Grau eMarketer Senior Analyst Questions & Answers Sponsored by: