performance retail handbook
introd
uction
Retailers around the globe keenly understand the intensity, fervor, insight, and data necessary to stay ahead of the competition. In the last decade, however, the retail landscape has evolved significantly. Unlimited shelf actions, revolutions in order and delivery infrastructure, “e”, “m”, and “f” commerce, have all propelled the channel into a turbulent state, with retailers struggling to keep pace with shifting expectations and product or service demands. Retail customers (Participants) have high expectations and demand unprecedented transparency as they actively seek out dynamic, personalized experiences. Fortunately, Performics has extensive experience in the retail space and we have an opportunity to capitalize on this to become the global premier retail performance agency. By analyzing historical campaign case studies and success, we have developed a consistent and repeatable framework for achieving marketing performance. Performance
For us, Performance Marketing is about discovery, empowerment, and connection. Participation
Driving performance in this new retail world means identifying, planning for, and optimizing against what motivates Participants to choose. It is about matching-and-pacing to their needs, increasing the relevancy and perception of personal “fit.” We believe the brands that truly inspire participation will, in turn, be rewarded with incremental performance conversions and loyalty. This handbook is intended to provide you with a foundation of ideas, tools, and methodologies to win in today’s complex marketplace by building a differentiated participant-based approach. At Performics, our goal is to be your trusted partner and to bring our expertise, ideas, and passion to help you exceed your business goals. Thank you,
Daina Middleton, Performics Global CEO
foreword
methodology
Performance Retail Moving at the speed of retail is a challenge for even the savviest of marketers. With such pronounced changes in customer behavior, shopping habits, technology, and commerce capability, it feels as though we are reinventing retail every season. We have put together this handbook to provide you with a framework to tackle today’s biggest retail challenges. With all its complexity it is critical to not become overwhelmed, and to remember that success for tomorrow is based off the decisions that we make today. As Performance Marketers, we have created four simple pillars to capture the fundamental elements of Retail Success and to form the “chapters� of this handbook.
Visibility Integrated Media Integrated, participant-centered marketing that moves at the speed of Retail, taking into account dynamic market forces.
Optimization Actionable Analytics Integrated business intelligence and customized dashboards that integrate your entire data set to make more informed, holistic decisions.
Relevancy Engaging Experiences Participant-optimized seamless experiences across multi-screens to drive shopping, buying and sharing.
Conversion Dynamic Merchandising Agility to maximize profitability and match pricing, marketing, and inventory tailored to evolving participant behaviors
2012: B2C eCommerce sales topped $1 trillion for the first time. Growth was at 21.1%, with expected 18.3% growth in 2013.1 This figure does not completely capture the impact of the Internet on retail. As numbers continue to climb year after year, both “showrooming” (in-store viewing with offline purchase) and ROPO (Research Online, Purchase Offline) trends continue to have significant business impacts that remain difficult to measure.2 Global markets are also in different phases of eCommerce growth. Therefore, marketing strategies for retailers will need to be tailored nation by nation, as the impact of different channels on business goals will differ. Within the US, online retail has enormous potential for growth, capturing only 8% of total retail sales, but growing faster compared to overall retail. In 2013, the National Retail Foundation expects sales to increase 3.4% (slowest growth since 2010), while online growth is expected at 14.8%. At the same time, digital buyer penetration at 73% is leading saturation levels. 3
With high online retail penetration in northern Europe (foremost UK and Germany), eCommerce is projected to still outpace physical retail with greater emphasis on multiple channels. The southern European markets are to have the fastest growth rates as they mature to adopt online shopping into the norm. 4
Digital buyer penetration in LATAM is one third of total Internet users, but Argentina and Brazil are pulling up quickly (with levels at 45.6% and 36% respectively) with the rising middle classes focusing on price savings. 5
This year marks a turning point where the Asia-Pacific region will surpass North America as world’s No. 1 market for B2C eCommerce sales at 33.4%, with North America at 31.5%. 6
1. “Ecommerce Sales Topped $1 Trillion for First Time in 2012” (eMarketer, Feb. 2013) 2. “Pre-Holiday 2012 Consumer Intentions” (Google/Ipsos OTX, Oct 2012) 3. ”Retail Tech Sector Bulletin” (Marcum Cronus, Feb.2013)
4. “Brazil Ecommerce: Sports, Travel and Cheap Retail Maintain the Market’s Momentum” (eMarketer, March 2013) 5. “European Online Retail Forecast, 2012 to 2017” (Forrester, March 2013) 6. “2013 Digital Trends in Latin America” (Digital Media Bloggers, June 2013)
GLOBAL SNAPSHOTS
retail realities
With the explosion of mobile devices and the ubiquitous usage of social networks, brand retail strategies have become increasingly focused on connecting to and inspiring participant behavior. Business success in retail is largely dependent on brands providing relevant, personalized experiences to help participants throughout their shopping journeys. Given this, we believe the following are some key market realities that brands should be mindful of when crafting their business and marketing strategies.
RISE OF P-COMMERCE • The funnel has been replaced with a non-linear, multi-touchpoint process • Increased consumption of media across channels • Need for visibility across a multitude of media • Experience directly personalized to participant
Mobile is the First Online Channel • Participants are accessing the Internet through a mobile device first • Get the most out of every pixel • Integrate strategies across devices
Collaborative Content is King • Participants driven to content creation and sharing through social media • Brands need to join in the conversation as publishers of sharable content to gain access to trusted networks
Data is the Marketing Currency • Data allows brands to navigate fragmented media channels, touchpoints and evolving participant behavior • Need for integrated analytics across your business, web analytics and cross-channel performance strategies
INTEGRAT
KEEPING THE STOREFRONT CONS
Ed MEDIA
SISTENT ACROSS ALL CHANNELS
the new customer journey a fractured digital retail journey
1
5
6
Sees a good sale on Facebook.
7
Checks nearest store hours.
4
Sees a fun spring outfit on Pinterest.
2
Clicks on a paid search ad for Loft.
3
Sees a print ad in InStyle.
Googles “spring dresses�.
Buys dress.
mapping your own participant journey Chances are your participant’s journey looks nothing like this. In fact, it’s likely that no one shopper finds Chances are your participant’s journey looks nothing like the above. In fact, it’s likely that no one shopper their way to the checkout counter the same way as his or her neighbor. Although each journey is unique, finds their way to the checkout counter the same way as her neighbor. Although each journey is unique, in in aggregate they offer insight into audience needs, behaviors and pain points. The trick is understandaggregate they offer insight into audience needs, behaviors and pain points. The trick is understanding what ing what and where to focus your attention. Here are three key areas to help you follow alongside your and where to focus your attention. Here are three key areas to help you follow alongside your participants’ participants’ fractured journeys.1 1 fractured journeys.
1
build a participant persona • •
Who is your target participant? Hone in on their background and needs.
DOCUMENT THE SURROUNDING CUSTOMER JOURNEY •
What is the thought process at each step and touchpoint?
3
2
FIND CRITICAL POINTS • •
Where are participants entering or exiting? Identify pain points as well as times of potential changes in shopping preferences.
1. “How To Map Your Customer Experience Ecosystem” (Forrester, Feb-May 2013)
Multi-channel, cross-screen, omnichannel. What is the difference and how is this convergence of channels significant for retailers and marketers? This expansion of channels maintains a participant-centric focus that more fully encompasses the participant’s digitally-integrated world. This participant-centric focus also places greater emphasis on demand forecasting, as brands will need to be proactive in their planning efforts. As price-focused online retailers (e.g. Amazon) continue their growth, maintaining a competitive edge will require retailers to provide an integrated experience that offers more value at all levels of the participant journey, not solely through pricing.
+
+
+
+
+
CROSS-SCREEN
multi-channel retailing
omnichannel retailing
The digital jump from device to to device (e.g. tablet to desktop to to mobile). Cross-screen Cross-screenbrowsing browsing is a norm, according to a is a norm, according to a study study done by jointly by and Google done jointly Google IS1 and ISPOS,1 which defined two POS, which defined two modes modes of multi-screening, of multi-screening, both both conconnected by search: sequential nected by search: sequential and and simultaneous. simultaneous.
The integration of retail operations that allow a shopper to carry out transactions across many connected channels, including brick-and-mortar stores, online stores, mobile stores, mobile app stores, telephone, email, television and catalog.
Omnichannel retailing can be viewed as the end goal of multi-channel retailing, centered around a completely fluid participant experience through every possible shopping channel.
multi-channel impact in action
Online Only Retailer
Multi-Channel Retailer
Ebay found that 21% of their customers shopped cross-screen, and that same 21% accounted for 45% of Ebay purchasers. 2
Walgreens found that the ratio of spend from in-store only customers to in-store and web to be 1:3.5; while the ratio from in-store only customers to shoppers using in-store, web and mobile channels was 1:6.3
Single screen
In-store
Cross screen
In-store + web In-store + web + mobile
1. Results included that 90% of our media interactions are screen based, spending 4.4 hours in front of screens each day. 2. “eBay’s CEO: Retailers Finally are Responding to the Commerce Revolution” (Internet Retailer, April 2013) 3. “The Walgreens Path to Omnichannel Success” (Shop.org, Feb 2013)
MULTI-CHANNEL IMPACT
feeds and affiliates
THE POWER OF THIRD PARTIES As these marketplaces continue their growth, the use of affiliates and feeds will help brands expand their product reach and connect with participants in real time. Product Listing Ads, Comparison Shopping Engines, marketplaces, and affiliates provide powerful retail support.
PRODUCT LISTING ADS
COMPARISON SHOPPING ENGINES
MARKETPLACES
What value do they offer the brand? Feeds help harness the massive reach of shopping engines, maximize visibility and influence participants otherwise removed from the brand. The customizable feeds lend the flexibility needed to lower costs, increase conversions, and maximize revenue online. Feeds make for easier data integration, deep reporting and product level insights.
How are they used/experienced by the participant? Product Feeds stock the virtual aisles of product listing ads, affiliate networks, comparison shopping engines, and marketplaces. Participants will arrive looking for the best value and price across brands.
What value do they offer the brand? An affiliate will likely be the one driving traffic to your products. With participants increasingly moving to vertical sites for discovery, shoppers are also using affiliate sites as evaluative tools, with 57% of online shoppers more likely to buy a product they’ve seen displayed on multiple websites, than one solely on retailer or brand sites.2
How are they used/experienced by the participant? Affiliates help retailers extend their reach across the SERP, connect with shoppers looking for promotional offers, deals and for specific items in real-time. More than three quarters of online buyers additionally research two to three non-retailer websites, with 65% also preferring sites featuring multiple retailers. 1
feeds What is a feed? A Product Feed is a data file of product information attached to attributes such as product assortment, product info, promo offers, and bids.
affiliates What is an affiliate? An Affiliate is a third party marketer that drives sales to the merchant. A plethora of affiliates exist in eCommerce and are typically compensated based on performance, such as per sale or lead. This creates direct accountability for the performance of the media.
1. “Product Feed Best Practices Guide Retail” (IAB Affiliate Marketing, Nov. 2011) 2. “Affiliate Marketing – The Direct and Indirect Value That Affiliates Deliver to Advertisers” (Forrester Research , June 2012)
engaging e
creating meaning alo
xperiences
ong the touchpoints
social implications
Questioned in its initially touted potential as a “direct sell” channel, social media has altered the relationship between participants and brands by facilitating open dynamic interactions and creating networks of feedback and opinion. Though it currently counts for only 2.4% of all total referral traffic to retail websites,1 a recent KPMG survey showed that 71% of retailers believed that social media was having a significant impact on their business.2 In fact, just over half of retail respondents to a Forrester survey said they will spend more on Facebook in the coming year, with 31% spending more on Pinterest, 25% on Twitter, 25% on YouTube and 23% on Instagram.3 For retailers, social media functions on three important levels.
crm & relationship building The social network space is ideal for transparency and to engage participants to demonstrate immediate attention to their needs. Social media also provides brands an opportunity to build and grow through direct participant interactions, as well as connecting participants to other branded assets in their paid, earned, and owned media eco-system.
peer influenced research Participants are moving beyond traditional search results to discover alternative (human) authority for crowd-sourced decision making. Today, participants are increasingly dependent on people-powered search results and answer platforms that feature context-rich human opinion, like Amazon, TripAdvisor, Yelp, Quora, Twitter and Facebook.
direct action sales Consider the context when placing sales-focused content on your social network page. On Facebook and Twitter, advertising is often considered an invasion. The visually-oriented nature of Pinterest encourages users to directly engage with retailers and their products. Shoppers who come to your site from Pinterest are 10% more likely to make a purchase compared to those who arrive from other social sites. More than 40% of shoppers have made purchases on social media sites and 76% even want brands to advertise through social media more 4 – signaling a desire for the personalized, participant-focused engagement promised through social media.
in action: store pins Nordstrom has incorporated Pinterest into in-store displays to engage its large fanbase of 4.5 million followers. The initiative is meant to touch upon both CRM and sales. According to a Nordstrom spokesperson, “We hope it adds to our engagement with the community and ultimately enables us to sell more as well.” 5
1. “Digital IQ Index: Specialty Retail,” (L2 Think Tank, June 2013) 2. ”2013 Retail Outlook Survey” (KPMG, June 2013) 3. “The State Of Retailing Online 2013: Marketing & Merchandising,”(Shop.org/Forrester Research, Inc. July, 2013) 4. “The Rise of ‘The Human Algorithm’: A New Approach to Search Marketing” (Performics, April, 2013) 5. Nordstrom Takes Pinterest Engagement To New Level, Turns Most Pinned Items Into In-Store Displays (Marketing Land July 2013)
mobile experiences
As online mobile usage continues its growth both globally and stateside, brands need to grow and develop their planning and mobile strategies alongside. Planning for a mobile strategy is more than just responsive design or having a mobile website; it requires brands to be broader in vision and plan for experiences. Mobile planning demands that brands think meaningfully about the ways in which their audiences use and benefit from mobile technologies in their lives. Part of this understanding comes from identifying your audience’s mobile needs and demands. Furthermore, mobile planning requires understanding how those needs and demands may be content- or context-driven and to strategize accordingly. Content-driven mobile planning is focused on ensuring that all relevant paid, earned, and owned content is accessible, designed, and usable via a mobile device.
Content Driven Key Elements: Mobile SERPs Gateways: Search Engines, PPC, Product Ads, Click to Call, Downloads, Site Links Networks: Affiliate, Display, In-Application
now mobile search Context Driven Key Elements: Mobile Data Feeds
Mobile Variables Highly Personal Device Fragmentation Location / Geo Aware Website & App Usability Social & Local Profiles Data / Media Rich
Devices: Smartphones, Tablets, Basic Phone
Gateways: Voice, QRC, Scanning, SMS, App Stores, Search Engines, Product Ads, PPC, Local Offers, OOH Networks: Affiliate, Display, Local Directories, Social Networks, Third Party Apps, UGC Devices: Cars, M2M, Any Screen
next mobile search
personalized digital strategies
Participants are not only demanding their interactions with branded content and digital properties to be optimized and designed for their devices and multi-channel surfing habits, they are raising their expectations for personalized digital experiences. They are searching for experiences that enhance their lives in big and small ways, such as saving time, helping them make the right choices, and getting where they’re going faster, gestures that demonstrate that the brand understands its audience and is committed to finding ways to optimize and improve their shopping experience. But digital experiences don’t just have to live online. In fact, it’s better that they cross over and bridge online and offline experiences for participants (40% of retailers expect to increase IT spend within the next year.)1 Whether it’s employees using iPhones to create “mobile” checkout lanes, or apps designed to help people visualize a new couch in their home, personalized digital experiences can create delightful touchpoints along a participant’s purchase path.
engage participant imagination Engage the participant by helping them imagine using your brand. Intel partnered with Adidas, HSN, and Macy’s to develop virtual interactive screens. Adidas launched its Virtual Footwear Walls in 2013. Macy’s Beauty Spot kiosk aimed to similarly provide an “endless aisle” enhanced personalized shopping experience. HSN installed a digital pizza-making game that gave the online retailer offline presence for the first time.2
enhance in-store experience Make the shopper more personalized and efficient. Neiman Marcus partnered with Signature to create NM Service, an app that syncs shoppers and sales staff. Shoppers can browse deals, request advanced pickup, and even leave messages for associates.3
ENABLE LOYAL CUSTOMERS Rethink the loyalty card by personalizing the experience through devices, digital tech. Safeway’s “Just For U” Clubcard program provides individualized offers in addition to their usual discounts, actually saving the retailer costs on promotions. 5.4 million households (45% of its sales base) signed up for the program within the first year. 4
1. ”2013 Retail Outlook Survey” (KPMG, June 2013) 2. “StoresTurn Shopping Into a Virtual Reality” (VR News, February 2012) 3. “In-Store App Smartly Syncs Shoppers And Sales Staff” (Mashable, July 2012) 4. “Just U Could End Print Ads Safeway Says” (Supermarketing News, Feb 2013) 5. Safeway Image Source: http://www.eastvalleytribune.com/money/article_4d1566bd-cea2-540d-88d1-617b3bda3496.html?mode=image-&photo=0
dynamic mer
stocking the store
rchandising
e shelf in real time
IT departments are being introduced to various new tech products and data integration capabilities, some of which have little to no history of success. Retailers have to weigh the costs and benefits of these offerings against their businesses, audiences, and technology needs. Typically these offerings fall into two groups: Converged Infrastructure (also known as Unified Stacks) or The Best of Breed Approach (also known as Mix and Match). Each approach comes with its own lists of pros and cons. Unified Stacks use a single vendor, providing more consistent, unified automation across platforms, but may sacrifice flexibility as users wait for maturation of stack integration. Conversely, a Best of Breed Approach offers greater leverage and dynamic performance, but not all architectures are easily stitched together and may require bigger budgets.
CONVERGED INFRASTRUCTURE
BEST OF BREED APPROACH
Pre-Configured Solutions1
mix and match1
Pros • Much faster, less risky • Adds efficiency by decreasing processing time • Integrated data flow and systems interoperability
Pros • Choose your dance partner • Provides maximum performance and competitive advantage
Cons • Minimal marketable product at launch Not all features immediately available • Less flexible; closed system Takes longer to integrate 3rd parties if/when possible
Cons • Not all architectures play nice • Requires specialized resources for multivendor systems integration
1. Image Source: Google
technology integration
big data management
“Big Data” is a new spin on an old concept—we’re producing more data than ever before, leaving companies to struggle with the technical and analytical realities of managing and acting on meaningful data. To help navigate this big data deluge, it’s key to understand what’s driving it and what trends demand response. Although the apparent unwieldiness of big data appears to disguise the payoffs to retailers, those who invest in developing analytical tools, infrastructure, IT, and processes will see the impact on the quality of their participant experiences and bottom lines.
what’s driving big data? An Unstructured World Unstructured data does not have a predefined data model and/or does not fit well into relational tables like text, sensor data, audio, video, click streams, and log files. Structured data comprises only 10% of big data, while unstructured data takes up 90%.1 A Connected World Digital worlds are converging beyond the screen thanks to increased connection points, networks, and lines of communication. A Scaling World In addition to the proliferation of sensors and their data, people are more capable of replicating and distributing data across various platforms and social media channels.
the four v’s of big data Variety The usability of data depends on establishing data sources, consistency, completeness and sorting through model accuracies.
Volume Increases in data require strong IT infrastructure and storage capabilities.
in-action store pins Velocity Real-time data, near-time, and batch and stream processing push the speed of information production and processing even further.
(1)(2)“The 4 Vs of Big Data,” IBM Big Data & Analytics Hub
Veracity Uncertainty of data is a common challenge today. One in three business leaders don’t trust the data they have to make decisions, causing the decision making process to be more complex.2
it’s a two-way street Shopper - Retailer Shoppers are still looking for local, offline retail experiences. Retailers now have more accessible options for meeting participants halfway with information on location, hours, inventory, and promotions. With increasing features in various search engines (Google, Yahoo! and Bing all include geo-targeting and inventory listings) local shopping is making it easier for retailers seeking to operate online and offline.
Retailer - Shopper As increasing numbers of shoppers are “showrooming” (resulting in lost revenue), the use of mobile also becomes an important strategy for bridging online and offline channels for participants. The showrooming trend itself points to instore value for shoppers in terms of product information, experience and service. With local targeting, retailers are able to add additional value for shoppers with promotions and remain competitive.
developing a local shopping plan discover
empower
connect
Can you be found? Google reported in 2011 that 20% of its searches were local. In 2012, it reported 50% of those local searches were on mobile.1 What content or queries do you want to serve when customers are on the go? This requires alignment with local pages, feeds, content and incorporation into your mobile site design.
Capitalize on the evolving cross screen shopping habits. Drive customers in-store to connect online influence with offline conversion. Push promotions for underperforming stores and encourage participation with online reviews from a loyal customer base.
Create a seamless experience. Participants will look for retailers via multiple devices. Retail local data needs distribution all the way down, from search engine platforms to data providers to directories. Once retailers have directed traffic in-store, does your mobile experience stop?
1. “Google: 50% of Mobile Search Is Local” (Screenwerk, October 2012)
local shopping with search
actionable
big data to b
e analytics
big insights
behavior and insight
Collecting participant behavioral data and generating meaningful insights is a crucial but difficult process for most companies, not just retailers. The act of aggregating participant data requires wrestling with technical issues (e.g. big data management, demand forecasting, tagging infrastructures) as well as analysis issues (e.g. what data to collect, how to do it, who analyzes it, efficacy of insights, etc.). At its simplest, it’s about understanding the universe of possibility, while simultaneously knowing what needs to be captured and assessed to drive your brand’s success. While businesses will disagree as to what constitutes the right mix of technical and analytical, there’s no question that the companies that begin tackling these issues faster will drive increases in their audiences’ participation, thus driving overall retail performance. 1
INFRASTRUCTURE
LEARNINGS
• What are they doing? • Why are they making the choices they’re making? • What are their needs? • Where are they acting? (geographic/channel) • Are we being transparent and ethical on how we’re collecting our data?
• Do we have an established measurement strategy? • Are we collecting the data we need to help us understand how we’re measuring against our goals? • Do we have the right infrastructure in place to collect the data we want and to access it?
• Have we established a learning agenda? • How are we archiving and sharing our learnings (internally and externally)? • How are learnings being applied? • Are they being applied?
in action: target
PARTICIPANTS
Andrew Pole, a statistician at Target, revealed the company’s usage of Guest ID tracking to The New York Times in February of 2012.2 Target’s approach was simple and honed in on a key time period and mentality where participants are liable to change shopping habits. Pregnancy. However, the story incited widespread criticism, providing a valuable lesson to retailers on the balance needed between using insights while maintaining good CRM and transparency.
Participants have also adjusted to the realities of online information. PwC found that 73% of survey respondents were willing to exchange personal information when given the right incentives in return.3 Still, for deeper level insights, participants have begun to expect returns for their input. Retailers need to demonstrate the benefits of behavioral insight to their participants as well and view the process as a give-and-take.
1. Use Behavioral Marketing To Up The Ante In The Age Of The Customer: A Winning Strategy And A Path To Higher Gains: A Forrester Consulting Thought Leadership Paper Commissioned By Silverpop (Forrester, May 2013) 2. The New York Times, “How Companies Learn Your Secrets” (February 2012) 3. “The Speed of Life: Consumer Intelligence Series: Consumer Privacy: What are Consumers Willing to Share?” (Pricewaterhouse Coopers,2012)
attribution
While attribution means different things to different people, outcomes and methods are beginning to converge as more marketers seek to deploy omnichannel strategies. Currently, many marketing managers deploy improved measurement and optimization within and across digital channels and are interested in methods that account for digital and traditional paid, owned, and earned media. For CMOs and Brand Managers, attribution is about constructing a singular view of the customer, online to offline. Under each definition, all marketing touchpoints are linked. While each person will approach the topic of attribution differently, attribution analysis can help your company make sense of the nonlinear ways participants are moving fluidly across various media touchpoints in their purchase processes.
cmo’s & brand managers • Connect online activity to offline sales • Econometric modeling, database analytics, and matched-market testing
performance marketers • Identify the impact that
technology managers • Integrate offline and online
digital media makes across
data to deliver engaging
all channels through
experiences based on mer-
cross-channel attribution
chandise optimizations and
• Make dynamic decisions around budget allocation and optimization
participant behaviors • Content management systems to deliver relevant con-
• Plot intersections between
tent that reflect participant
paid, owned, and earned
needs and business goals
channels • Exploit synergies by shifting budgets from channel-to-channel, in real-time, based on ROI
in action: Online-Offline Attribution for a Multi-Channel Retailer Challenge Measure the impact of paid search on in-store sales to influence budgeting and mix models Solution Database Analytics & Testing Matching transaction data from the client’s in-store credit card purchasers (who match the panel) to identify the offline lift from digital media channels including search, display and social.
Outcome Investment in digital channels increased significantly to drive offline sales. The multipliers helped drive a 176% YoY increase in investment for paid search during the holidays, which helped generate +98% YoY increase in offline sales influenced by digital media.
Imagine your shoppers walking through your doors, loading up a cart, waiting in line, only to then turn and walk out of the store. Though conversion rates vary by vertical, the average for retailers is 4–8%. Half of online participants drop off between cart and checkout.1 Just as a storefronts needs constant attention to layout and design, your online storefront will need to be optimized for your target participants to make more purchases online. Here are the three steps to conversion optimization.
1 2 3
Conversion Strategy and Planning: building SUCCESSFUL FOUNDATIONS Opportunity audit
Conversion path audit
Competitive review
Recommendation & prioritization
Optimization/ testing roadmap
Conversion IMPLEMENTATION: Testing for Success Also Reveals Shopper Behaviors
A
VS.
B
A/B and multivariate testing is a tactic for refining conversion theories and recommendations. These tools enable retailers to leverage landing pages more efficiently and/or lower funnel conversion processes (like shopping cart, registration forms, and quote tools).
Conversion ANALYSIS: Findings Lead to Greater Insights and ROI Benefits COPY
LAYOUT
IMAGES
TARGETING
Savings and value propositions
Cleanup and placement
Hero images and color
Customize based upon audience
The road to conversion optimization is not fast and often takes at least 6–12 months. Longer term testing is often necessary to address improvements to conversions, user engagement, and behavior.
1. “Ecommerce conversion rates” (Smart Insights, June 2013)
conversion optimization
for more information Lindsay Landsberg SVP, Business Development +1 312.739.0670 Lindsay.Landsberg@performics.com David Babst Vice President, Business Development +1 312.739.0762 David.Babst@performics.com
www.performics.com twitter.com/performics facebook.com/performics
2014