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Maximize ROI by Unlocking the Full Value of Undiscovered Content
This document discusses the importance of leveraging undiscovered content to maximize ROI in online marketing, highlighting statistics on customer acquisition through various channels and the dominance of a few sites in search traffic. It details the partnership between Bloomreach and Meijer, demonstrating significant increases in organic search traffic and revenue through the use of big data applications. The analysis shows the considerable economic impact of Bloomreach's solutions, especially for established and emerging brands, emphasizing the need for innovative strategies in digital marketing.
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Maximize ROI by Unlocking the Full Value of Undiscovered Content
- 1. MAXIMIZE ROI BY UNLOCKING THE FULL VALUE OF UNDISCOVERED CONTENT Dean Davison, Principal Consultant, Forrester Consulting Joelle Kaufman, Head of Marketing, BloomReach Erik Small, Senior Manager, Online Advertising & eCommerce, Meijer
- 2. Maximize ROI byUnlocking the Full Value of Undiscovered Content
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- 4. The web outpacesstores 20.0% 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. Customer acquisition throughsearch Interactive marketing spend Mobile Social 2% 5% E-mail 4% Search Display 59% 30% Source: Forrester Research
- 6. But most clicksgo 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. Most paid searchclicks, 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. Paid search isexpensive 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 Lowe's Source: ROI Revolution, Internet Retailer Search Marketing Guide
- 9. Maximize ROI byUnlocking the Full Value of Undiscovered Content
- 10. WHAT ARE YOUDOING 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. NEW CUSTOMERS AREHARD 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. USE THE GREATCONTENT YOU ALREADY HAVE
- 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 search Thousands of hadoop jobs/day
- 14. BLOOMREACH’S BIG DATAAPPLICATIONS 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
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- 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. 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. IMPROVED EXPERIENCE WITHBLOOMREACH 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. 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. MEIJER’S NON-BRANDED VISITSMAKE A JUMP Since the beginning of the partnerships, non-branded visits are up 60%+ year-over-year (Dec ‘11 to Dec ‘12)
- 21. BLOOMREACH INFLUENCED REVENUE revenue influenced by BloomReach has increased an average of 70%+ month-over- month since the partnership began
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- 23. WHAT IS ATEI? WHAT: The Total Economic ImpactTM is a standard methodology developed by Forrester Research Inc., enhancing a company’s technology decision-making process WHY: To provide prospects and clients with a framework for evaluating the potential financial impact of BloomSearch HOW: Based on interviews with four BloomReach customers, Forrester constructed a TEI framework, a composite company, and modeled the associated ROI analysis that illustrates the economic impact. The composite organizations fall into two categories: established and emerging.
- 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. 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. WHAT IS THEFORRESTER TOTAL ECONOMIC IMPACT OF BLOOMSEARCH? Forrester worked with BloomReach to analyze the total economic impact that BloomSearch has on a number of its customers, who shared these business challenges 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. 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. WHAT MATTERS MOSTTO CUSTOMERS? Established Brands Emerging Brands Benefits Benefits TEI broke down 34% 31% 26% “multichannel “conversion rate “capturing misses from the specific marketing similar to 50% other channels” efficiency” “brand building at a benefits, 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. BLOOMSEARCH BY THENUMBERS $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. BLOOMSEARCH BY THENUMBERS 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.
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- 32. YOU CANNOT WINTHE OLD/CURRENT WAY 1,000 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. DRIVE INCREMENTAL TRAFFICAND 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. WHAT DOES THISMEAN FOR THE CONSUMER? better experiences, more discovery
- 35. WHAT CAN THISMEAN FOR YOU? more revenue natural 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. THANK YOU. DeanDavison, ddavison@forrester.com Joelle Kaufman, joelle@bloomreach.com Erik Small, erik.small@meijer.com
Editor's Notes
- #3 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.
- #4 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.
- #5 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.
- #6 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.
- #7 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.
- #8 It wasn’t much different in terms of paid search clicks. Again, the big players dominate.
- #9 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.
- #10 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…
- #11 Mobile is a personal bridge to the internet
- #33 I like this version