This document discusses how local businesses can build an online to offline (O2O) funnel to drive more in-store sales. It outlines a 5-step O2O funnel that includes: 1) increasing local search market share, 2) optimizing local listings, 3) driving online conversions, 4) increasing offline in-store conversions, and 5) boosting in-store sales. Case studies are provided showing how the O2O funnel can be modeled and ROI calculated for retail, restaurant, and medical businesses. Optimization of the O2O funnel is presented as a way for local businesses to get more shoppers and increase local ROI.

1. Get more shoppers
Build Your Online 2 Offline Funnel
Driving Local ROI with O2O Conversions

2. The
Story
5.0 Million
Local businesses analyzed
312 Million
Reviews analyzed
1.8 Billion
Local listings analyzed monthly
Our Story

3. Local Search = Intent
93% of retail purchases
are still happening in-store
72% of mobile local
searches lead to an
in-store visit
4/5 consumers conduct
local searches
54% Looking for
of Operation
53% Getting
Directions
50% looking for
an address
45% looking for
product
availability
51% will make a
purchase within 24
hours
Build your
O2O
funnel
Build your O2O
funnel

4. Build Your Local O2O Funnel
Build your
O2O
funnel
Build your
O2O
funnel
Build your O2O
funnel
Local Search Market Share
Local Listings Presence
Online Conversions
Offline In-Store Conversions
In-Store Sales
T1
T2
T3
T4
T5
Local search
impressions
Pg 1 rank, accurate data,
positive ratings & reviews
Click-thru to: website,
driving directions, phone
calls, offers
Store visits
and calls
Coupon and offer
redemptions

5. Local O2O Funnel: Step 1
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
Build your
O2O
funnel
Build your O2O
funnel

6. Local O2O Funnel: Step 2
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
Build your
O2O
funnel
Build your O2O
funnel
3. Positive reviews
1. Page 1 SERP
2. Correct Data

7. Local O2O Funnel: Step 3
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
Build your
O2O
funnel
Build your O2O
funnel

8. Local O2O Funnel: Step 3
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
Build your
O2O
funnel
Build your O2O
funnel

9. Local O2O Funnel: Step 4
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
Build your
O2O
funnel
Build your O2O
funnel
Google Report May 2014 Google Report May 2013

10. Local O2O Funnel: Step 5
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
Build your
O2O
funnel
Build your O2O
funnel
Percentage of in-store
visitors who buy
Average order value

11. Get more shoppers
The Bottom Line
Calculating your O2O Funnel ROI

12. Remember the O2O Funnel
Build your
O2O
funnel
Build your O2O
funnel
Local Search Market Share
Local Listings Presence
Online Conversions
Offline In-Store Conversions
In-Store Sales
T1
T2
T3
T4
T5
Local search
impressions
Pg 1 rank, accurate data,
positive ratings & reviews
Click-thru to: website,
driving directions, phone
calls, offers
Store visits
and calls
Coupon and offer
redemptions

13. Total Addressable Market
Build your
O2O
funnel
Build your O2O
funnel
TOTAL LOCAL SEARCH OPPORTUNITY
Total brand searches (annual)
Keyword category searches (annual)
Total search opportunity
Online conversion (directions/calls) @ 1%
Online to in-store conversion rate @ 50%
In-store visit to purchase rate @ 51%*
Average order value @ $65
8.1 M
24 M
32.1 M
321 K
160.5 K
81.9 K
$5.3 M
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales

14. Current Market Share
Build your
O2O
funnel
Build your O2O
funnel
Total Search Opportunity (TSO): 32.1 M
LOCAL SEARCH MARKET SHARE
Current local visibility (58%) * TSO
Listing Accuracy (65%)
YOUR MARKET SHARE
-13,5 M
-4.7 M
13.9 M
CURRENT POTENTIAL SALES
Click thru rate (directions or call) @ 1%
Online to in-store conversion rate @ 50%
In-store visit to purchase rate @ 51%*
Average order value @ $65
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
139 K
69.5 K
35.4 K
$2.3 M

15. Market Share Opportunities
Build your
O2O
funnel
Build your O2O
funnel
Your Market Share: 13.9M searches
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
GROW LOCAL SEARCH MARKET SHARE BY 25%
Additional Market Share:
Increase listings coverage & fix listing errors
CURRENT POTENTIAL SALES
Click thru rate (directions or call) @ 1%
Online to in-store conversion rate @ 50%
In-store visit to purchase rate @ 51%*
Average order value @ $65
3.5 M
35 K
17.5K
8.9 K
$580.1 K

16. Listing Presence
Build your
O2O
funnel
Build your O2O
funnel
Tools:
• RioSEO
• SweetIQ
• Vendasta
• WhiteSpark
• Yext
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales

17. Measuring Performance
Build your
O2O
funnel
Build your O2O
funnel
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales

18. Measuring Performance
Build your
O2O
funnel
Build your O2O
funnel
17,567
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales

19. Modeling offline conversions
Build your
O2O
funnel
Build your O2O
funnel
Online Conversions
Offline in-
Store Visit
rate
In-Store
Sales
conversion
rate
Average
order value
Calls 11%
50% – 71% 10% - 90% Depends
Driving
directions
6%
Website clicks 2%
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales

20. Measuring O2O ROI
Build your
O2O
funnel
Build your O2O
funnel
T1: Local Search
Market Share
T2: Local Listing
Presence
T3: Online Conversions
T4: Offline In-Store
Conversions
T5: In-Store Sales
(Σ calls × in-store visit rate) + (Σ directions × in-store visit rate)
×
In-store conversion rate (purchases)
×
Average order value
=
Attributable in-store sales

21. Your O2O funnel: retail
Local Search Impressions
Local Listing Views
Online Conversions
Offline In-Store
Conversions (visits)
273K
10.7%
60%
25%
101.1 M
10.8 M
1.9 M
1.1 M
$13.6 M
17.6%
2.5%
AOR: $50

22. Your O2O funnel: restaurant
Local Search Impressions
Local Listing Views
Online Conversions
Offline In-Store
Conversions (visits)
215K
24.7%
70%
85%
13.1 M
3.2 M
362 K
253 K
$6.5 M
11.2%
6.7%
AOR: $30

23. Your O2O funnel: medical
Local Search Impressions
Local Listing Views
Online Conversions
Offline In-Store
Conversions (visits)
1.1K
30%
60%
20%
1.1 M
306K
9.4K
5.7K
$565.5 K
3.1%
0.3%
AOR:
$500

24. Get more shoppers
Michael Mire
Co-Founder & CRO
@MichaelMire1 | Michael@sweetiq.com