Measured Marketing In Today’s Hyper-Competitive E-tailing Space

1. MEASURED MARKETING
In Today’s Hyper-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
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3. Online Retail is Multi-Channel
Go Ahead.
Try to
Measure
This!
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4. Welcome to the World of Ecommerce
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5. The B2C Analytics Challenge
• 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.
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6. Changes in Online Retail
• 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
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7. The Social Commerce Revolution
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.
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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.
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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
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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
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11. How E-tailers Divvy Up
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
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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
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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
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14. It’s a Math Problem
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