4 Keys to Maximizing Online Channel Effectiveness Using Competitive Intelligence

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4 keys to maximizing online channel effectiveness using competitive intelligenceA look at group shopping and the value of competitive intelligence

February 2011

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Today’s presenters

• Damian Roskill, Managing Director, Marketing at Compete

• Jason Caine, Director, Retail practice at Compete

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Webinar logistics

• Today’s webinar will be recorded. You will be emailed a link.

• Please enter your questions in the Questions box. We will answer as many as possible at the end.

• If you have technical difficulties, try loggingback in or use a different browser

• The Twitter hashtag for today’s webinar is #oce

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• Help marketers increase online and offline marketing effectiveness based on online behaviors and survey responses from millions of consumers.

• Largest integrated online consumer behavior and survey panel in industry.

• Expertise in the automotive, consumer goods, financial services, media, mobile, online, retail, telecom and travel markets.

• Strategic partnerships within the WPP and Kantar family of companies that enable marketing optimization and more holistic view of consumers.

Compete connects the dots from online insights to marketing ROIAbout Compete

• Advertising and promotion effectiveness

• Shopper quality and brand consideration

• Website effectiveness

• Segmentation and targeting

• Search marketing performance

• Customer satisfaction and loyalty

• Competitive tracking and benchmarking

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Agenda

• Webinar (20 min)

• Introduction

• Overview of competitive intelligence and the sales funnel.

• Key #1: Measure awareness

• Key #2: Measure engagement

• Key #3: Measure conversion

• Key #4: Measure loyalty

• Q&A (10-15 min)

Case Study: Groupon and Livingsocial

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Online Channel Effectiveness™Key questions answered:

• What is my online market share in my category?

• How is my online channel performing versus the market and my closest rivals?

• Is my site best-in-class at driving shopping and online purchases?

• What impact are rival marketing tactics having on their online performance?

• What do my site visitors and customers do on other websites?

• What impact does my website have on in-store purchases and vice versa?

• Market-specific comparisons• Site traffic and engagement• Funnel-level measurement

• Rival conversion rates reporting• Summary insights and

implications

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The online marketing challenge:

You know how your website is doing.

But what do you know about your competitors?

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Competitive intelligence is a key process that can be used to inform instrumental decisions you make. The better you understand your competitors the clearer perspective you have on your industry and audience as a whole.

-- Joanna Lord — Director of Customer Acquisition & Engagement, SEOmoz

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The online path to purchase

Awareness Engagement Conversion Loyalty

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Key #1: Measure awareness vs. your rivals

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Do you currently measure the online awareness of your website or brand vs. your

rivals?

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Measuring awareness vs. rivals – Key metrics

• Share of voice vs. your rivals

• Market growth vs. your rivals

• Identify how marketing campaigns and new product launches impact market share – Daily traffic and referrals

• Identify demographic & behavioral segments that over/under perform versus rivals

• Identify gaps in your search marketing strategy versus rivals

• Measure your social media engagement versus rivals

Awareness

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Group Shopping: Using Online Channel Effectiveness to understand what it all means• How can the OCE tool help me understand quantify the market

beyond the headlines and hype?

• Two large industry players- LivingSocial - Groupon

• Time period: 2010

Scope

• Total visits• Referral sources• Market share• Average stay• Conversion rate• Repeat visits

Key Measures

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Group Shopping Overview• 1-2 major deals daily

• Deals by geography

• Minimum number people need to buy

• Deals vary by category

• Lots of imitation!

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Group shopping has experienced an 820%+ increase in unique visitors since January 2010!

• Group shopping is credible marketing source• Pay more attention to retail hyper-local trends

So What?

Groupon

LivingSocial

Unique Visitors2010

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan

.9M

10.2M

1.7M

14.7M

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Groupon shoppers are more likely to find the site directly.

Referral SourceDec 2010

• LivingSocial: More product awareness marketing• Groupon: Pump up marketing on social networking

So What?

livingsocial.com

groupon.com

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

53%

52%

7%

17%

9%

12%

10%

12%

22%

6%

Direct traffic Search / portals Email Social

Groupon

LivingSocial

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LivingSocial experienced a short-term market share increase from its recent Amazon national deal.

Daily ReachJan 10-24, 2011

• “You are only as good as your latest deal”• Perform category specific deal analysis

So What?

Groupon

LivingSocial

1/10 1/11 1/12 1/13 1/14 1/15 1/16 1/17 1/18 1/19 1/20 1/21 1/22 1/23 1/240

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1/19: LivingSocial National deal; 1.3M Amazon gift cards

sold

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Key #2: Measure engagement vs. your rivals

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What do you think are the most important metrics for measuring engagement on

website?

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Engagement

Measuring engagement vs. rivals – Key metrics

• Product-specific page views vs. rivals

• Penetration of consumer research tools, application/lead forms, store locator, and other purchase predictors across competitive set

• Measure engagement across similar retail categories including microsites, community sites, etc.

• On-site engagement vs. rivals (time and page views)

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Groupon offers shoppers multiple deals which is likely helping keep shoppers longer.

• Average stay in-line with expectations for such site structure• Relationship between conversion and average stay?

So What?

Groupon

LivingSocial

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec0:140:431:121:402:092:383:073:364:044:335:02

2:51 2:56

4:024:15

Average Stay2010

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Key #3: Measure conversion vs. your rivals

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What is the average conversion rate for your website?

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Conversion

Measuring conversion vs. rivals – Key metrics

• Shopping cart abandonment rates vs. rivals and “best practice”

• Cross-selling metrics

• Impact of online investments on off-line sales

• Conversion rate vs. rivals and “best practice”

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Groupon experienced a drop in conversion rates during Q4.

• Group shopping has gone mainstream; more “casual” shoppers• Evaluate barriers to conversion

So What?

Groupon

LivingSocial

Sept Oct Nov Dec0%

1%

2%

3%

4%

5%

6%

2.0%1.4%

2.0% 2.1%

5.0%5.5%

5.1%

4.4%

Conversion Rate2010

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Key #4: Measure consumer loyalty vs. your rivals

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What percentage of your customers are repeat customers?

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Loyalty

Measuring loyalty vs. rivals – Key metrics

• Percentage of repeat customers

• # competitor sites visited / session

• Promotional sensitivity

• Visits / person

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Shoppers are slightly more loyal to Groupon.

• Online is one platform; what about mobile activity?• Behavioral analysis needed to under root cause

So What?

Groupon

LivingSocial

Sept Oct Nov Dec0.00

0.50

1.00

1.50

2.00

2.50

1.58 1.501.63 1.61

2.28

1.96 2.04 2.05

Visits / PersonQ4 - 2010

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Let’s recap what we learned• Key #1: Measure awareness

• Key #2: Measure engagement

• Key #3: Measure conversion

• Key #4: Measure loyalty

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Thank you…

Jason CaineDirector , Retail617-933-5664

jcaine@compete.comwww.compete.com

Damian RoskillManaging Director, Marketing617-933-5670

droskill@compete.comwww.compete.com

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Questions?