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Measured Marketing
Fifth Gear is a company based in Indianapolis that provides outsourced retail business services, ecommerce technology services, and online marketing support. It has been in business since 1983 and employs over 500 people across facilities in Indiana, Missouri, and Pennsylvania. The document discusses the challenges of measuring marketing efforts across multiple online retail channels, emerging trends like social commerce and mobile commerce, and the importance of analytics for data-driven decision making.
Measured Marketing
- 1. MEASURED MARKETING In Today’sHyper-Competitive E-tailing Space
- 2. Meet Fifth Gear • Based in Indianapolis since 1983 • Employ 50 locally, over 500 company-wide • Facilities in Missouri & Pennsylvania • What we do: Outsourced Retail Business Services infifthgear.com Ecommerce Technology Services Online Marketing Support ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 3. Online Retail isMulti-Channel Go Ahead. Try to Measure This! ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 4. Welcome to theWorld of Ecommerce ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 5. The B2C AnalyticsChallenge • Abundance of data • Rapidly emerging channels • Unsure what to measure • Multiple management tools available • Difficult to set ROI goals • Result: – The overwhelming nature of day-to-day multi-channel operations gets in the way of appropriate marketing analysis. ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 6. Changes in OnlineRetail • Site Technology • Social Commerce – Advanced Search • Mobile Commerce – Product Videos – Smart Phones – Abandoned Shopping Carts – Tablet Devices – Consumer Reviews Consumer Behavior in a Social World Find Observe/Lurk Participate Engage Purchase/Link ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 7. The Social CommerceRevolution US Social Commerce Sales Sales of physical 2011-2015 $14 goods through online 15 billion social networks are $9 predicted to grow by 10 billion 93% per year in the $5 US, reaching $14 $3 billion billion by 2015. 5 $1 billion Source: Booz & Co. billion At the time of the survey in 0 2010, 27% of shoppers 2011 2012 2013 2014 2015 were willing to buy through social media. ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 8. Measuring Social Conversion • Shoppers who land on retail sites through Facebook or Twitter are less likely to make purchases. Their conversation rates average 1.2% and 0.5% respectively. • Per average order, however, they spend more than those who come through Google. • In fact, shoppers who originated from Twitter spend on average $121.33 – the highest average order value (AOV) of all. Source: RichRelevance Study, MediaPost: “Shoppers Via Twitter Spend More, Online Behavior Impacts Retail” September 14, 2011. ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 9. Mobile Commerce Device-centric Retailing Smartphones & Tablets Mobile Commerce Sales 2010-2016 Mobile commerce $31 35 billion sales will grow to $31 $25 billion in 2016. M- 30 billion 25 $19 commerce sales 20 $14 billion accounted for only 1% 15 $10 billion of ecommerce sales in $6 billion 2010, but will increase 10 $3 billion to 7% in 2016. 5 billion 0 Source: Forrester Research Inc. sales of merchandise excluding digital content such as ring tones and mobile games 2010 2011 2012 2013 2014 2015 2016 ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 10. Feeling the Pressure 0 0.1 0.2 0.3 0.4 0.5 External Pressures Driving Mobile and Tablet Adoption Rapidy changing customer expectations 47% High customer adoption rates of mobile 38% devices Proliferation of new marketing channels 28% Increasing customer expectations for 26% cross-channel experience Demographic changes of consumers/buyers 21% (generational, cultural) Source: Aberdeen Group, August 2011 ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 11. How E-tailers DivvyUp the Marketing Budget 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 Paid search gets the largest allocation in Paid Search 30% the marketing budgets of 158 online retailers Email 16% surveyed in early 2011 Search Engine Optimization 11% by the E-Tailing Group. Affiliate Marketing 7% Search Comparison Shopping Engines 5% marketing, including Retargeting/Behavioral… 4% paid ads and SEO, accounts for 41% Social Marketing 4% of the marketing Don't Know/Other 23% spend. 23% “DON’T KNOW.” Source: The E-Tailing Group ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 12. Actionable Analytics • Marketing Analytics • Operational KPI’s – Site Stats – Average Order Value – Search Rankings – Shipment Accuracy – Pay Per Click – Shipping Methods – Conversion Rate – Rate of Returns – Customer Segments – CUSTOMER – Targeted Offers SATISFACTION – Abandonment ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 13. Data-driven Decision Making • Saves time and money • Helps allocate staff and budget • Gains a better understanding of competition • Allows for strategic planning • Align with corporate strategy • Reveals strengths and weaknesses For retailers: – Pinpoint shopping trends – Improve merchandising – Optimize inventory assortment – Improve retail promotions – Gain visibility across the supply chain ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462
- 14. It’s a MathProblem ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462