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Blue Turtle Creative is a marketing, consulting and event management firm located in Auburn, Alabama.
Now we bring you
Path to Purchase: Navigating the Changing Consumer Landscape
Visit Twitter @blueturtlebeth
FIRST
Follow along via your smart device
SECOND
To Get the Most from this Presentation
How to follow Blue Turtle Creative - Twitter @blueturtlebeth - LinkedIn - Facebook/BlueTurtleCreative
Play your best today!
THIRD Engage
Path to Purchase: What does it all mean?
The journey a consumer takes to purchase a product, service or brand.
Old Path to Purchase:
Research Visit Store Purchase
New Landscape to Purchase:
"Gone are the days of retailers only worrying about keeping up with their competitors. Today, the key to winning at retail is keeping up with your customers," said Rodney Mason, GVP of Marketing at Blackhawk Engagement Solutions, an international incentives and engagement company.
What is the
Prevalent Internet
?
Smart Phones
Laptops
Desktops
Tablets 71%
66% 50%
41%
Peak Time 4 pm 9 pm
37% shop at work
58% shop at home while watching TV
Shopping List
Showrooming
Resource: Blackhawk Engagement Solutions Where Its At Report
Free Webinar Tomorrow August 26 from 11 am 12 pm
BLAH
BLAH
BLAH BLAH
B BLAH
BLAH
How Do You Break Through
The Noise?
Deliver the Right Message At the Right Point in the Consumers
Journey
Web TV
Mobile
F&F
Radio
Resources
Measure What Matters Most Report by Google
Where Its At: A Connected Shoppers Study by Blackhawk
Thank you!
I would love to sit down with you and help drive your business to the top!
Introduction 3
Methodology 4
State of Mind 6
Connected Shopping 7
Emerging Shopping 8
Mobile Price Match 10
BOPIS 12
Social Media 13
Loyalty Programs 14
Digital Promotion Delivery 15
Competitive Pricing 16
The Verticals 17
Appliances 18
AutomotiveProducts 18
Clothing 19
Electronics 19
Entertainment 20
Furniture 21
Groceries&ConsumerProducts 21
HomeImprovement&Hardware 22
OfficeSupplies 22
PetProducts 23
SportingGoods 23
SubscriptionServices 24
Toys 24
CONTENTS BES | WHERE ITS AT | 1
TABLE OF CONTENTS
INTRODUCTION BES | WHERE ITS AT | 3
CONNECTING AT THE CROSSROADS
Your customers are always on the move. They are looking for quicker, easier and more targeted deals that respond to their shopping styles. Theyre harnessing connected technologies to simplify and optimize their shopping paths. With all this activity, how can you make sure your path crosses theirs?
By charting where your customers are now and where theyre going the ways they pre-shop discover and filter, the devices they use and their influence along the multiple paths to purchase, and the many ways those paths can be disrupted youll uncover dynamic messaging streams, product offerings and promotional offers. Youll get closer to your customers by making their shopping easier, on their own terms.
Thats why we commissioned this national study of 2,608 respondents to uncover their engagement and shopping behaviors across 13 leading retail categories. Through all of these variables, we have insights for mapping clear paths to effectively go to market.
Gone are the days when your main worry was keeping up with your competitors. Today, as this study clearly shows, the key to winning at retail is keeping up with your customers. By anticipating where theyll land as they explore new shopping territories, you can position your business directly in front of your underserved customers and ahead of your competition.
Through this research and other insights generated by working with you, were able to build a grounded understanding of the market. From there, we can deliver the right strategies and incentives that grow topline and baseline sales, while improving your margins and long-term fiscal health.
If youre a retailer and want to be more effective in the market, partnering with us will bring you deeper, more specific insights from our studies. We also conduct custom research to help you identify your unique challenges and opportunities. By comparing them to the national benchmark data provided in this study, we can help you identify key strategies for growing your business.
Please reach out with your questions and comments, and let us know if youd like to receive more information about our services.
Now, lets go find your customers.
Good shopping,
Rodney Mason GVP, Marketing Blackhawk Engagement Solutions [email protected]
2 | WHERE ITS AT | BES INTRODUCTION
Blackhawk Engagement Solutions conducted this national study in April 2015 to identify how and where consumers are using connected technologies to discover, filter and shop. The results reflect the responses of 2,608 adults, representing the general US population.
ETHNICITY
1% American Indian or Alaskan Native
5% Asian or Pacific Islander
11%Black or African American
18%Hispanic or Latino
65%White or Caucasian
HOUSEHOLD INCOME
19%
DONTTELLANYONE,BUTASUBSTANTIALAMOUNTOFSHOPPINGTAKESPLACEATWORK.
HOWDOYOULEARNABOUTPRODUCTS,SPECIALSALESANDSHOPPINGNEWS?
47% TV
36% Friends and family/Retail websites/Social media (tie)
31% Amazon
27% Google
26% Ads on the web
13% Radio
6% Other
The smartphone is the most prevalent internet-connected device, with the laptop not far behind. That means youre never further away from your customers than they are from their devices, at home or at work.
SHOPPING ANYWHERE AND EVERYWHERE
Despite major reductions in fuel costs, often a prominent line item in household expenditures, there is still significant sensitivity to price and spending. Its a safe assumption that if fuel prices were higher, the majority of customers would be hypersensitive to price and spending. Right now, theyre just cautious.
19% sometimes
WHATHASTHEGREATESTEFFECTONYOURPURCHASINGBEHAVIOR?
PRICE SENSITIVITY SHOPPING POWER
711 a.m. 9 p.m.2 a.m.11 a.m.4 p.m. 49 p.m.
14%
48%
28%
10%
CONNECTED SHOPPING BES | WHERE ITS AT | 76 | WHERE ITS AT | BES STATE OF MIND
SHOPPING ANYWHERE AND EVERYWHERE
PROCEEDING WITH CAUTION, NOT CONFIDENCE
71% Smartphone
66% Laptop
50% Desktop computer
43% Tablet
WHICHDEVICESDOYOUOWNANDUSEDAILY?
Eveninghoursarethepeakonlineshoppingperiod,butworkhoursstillaccountforasizeableportion.
62%regularlyseek
outandsignupfordigitally
deliveredspecial
promotions.
ShopathomewhilewatchingTV.58%admit to shopping at work.37%
18% often(27% often, 31% sometimes)
TVWATCHINGANDINTERNETSHOPPINGARECLOSELYCONNECTED.
1 PRICE
$
2 QUALITY 3 BRAND 4 STORE 5 AVAILABILITY
47%More
sensitive to price
than last year
57%Shopping
power has not
improved since last
year
29%Shopping power has decreased vs. last year
49%Same sensitivity to price as last year
34%have mobile wallet apps.
20%would stop carrying a
traditional wallet entirely if mobile payments
and IDs were accepted everywhere.
54%of shoppers would likely
use a mobile wallet over a traditional wallet
if it were accepted everywhere.
Mobile has changed how customers compare prices and shop online and in-store. For example, Google recently instituted a new ranking algorithm that demotes websites that arent mobile friendly. Already the most prominent connected device, the smartphone is on its way to becoming the primary tool for shopping.
A telling sign of the times: The traditional wallet is diminishing in use as customers rely more on plastic, recurring and mobile payments.
SMARTPHONES: THE GPS FOR SHOPPING
WALLETS MAKE WAY FOR MOBILE
63%would consider
receiving offers on their smartphones based on where
they are in-store.
59%would consider allowing
retailers to know where they are in-store in exchange for exclusive values and savings.
40%use smartphone cameras
to demo, share and compare products they
find in-store.
2OUTOF5CARRYLESSTHAN$20INATRADITIONALWALLET.
39%
As noted, shoppers are cautious, and price is the leading factor in purchase decisions. Customers are buying competitor products on their smartphones while standing in your store. With these as givens, its imperative that you have sound price-match strategies.
Our extensive research has found that $5 in savings on a $50 product can tip the scales in favor of an online competitor. The majority of consumers will buy at a physical store that matches online prices with price-match rebates.
Retailers can be competitive in the market while preserving margins through post-purchase incentives that offer the right rewards and drive more transactions.
Surprisingly, retailers that issue their own gift cards for price matching have lower take rates, because consumers dont value those offers as much as cash. Using a validated post-purchase redemption process offers additional economic benefits.
Despite the ready adoption of online purchases and growing payment app use, shoppers still strongly prefer plastic rewards over eCodes.
If offered a post-purchase
incentive, which reward would
you prefer?
67%$25 prepaid debit
card accepted almost everywhere
10 | WHERE ITS AT | BES MOBILE PRICE MATCH MOBILE PRICE MATCH BES | WHERE ITS AT | 11
Responses may not total 100% due to rounding.
2outof3peoplewouldchooseaprepaidcard,evenifthegiftcardofferedanadditional$5.66% $25 prepaid debit card accepted almost everywhere34% $30 gift card for store where you made purchase
ALTHOUGHPLASTICREWARDSSTILLDOMINATE,VIRTUALREWARDSSHOWGREATERACCEPTANCEATLOWERDENOMINATIONS.
PERCENTAGETHATWOULDACCEPTANECODEIFITWERETHEONLYOPTION:
80% $25 eCode for $100 purchase
71% $50 for $200 purchase
65% $100 for $400 purchase
62% $300 for $1,200 purchase
PEOPLE PREFER PLASTIC PREPAID
26%$25 Amazon
gift card
6%Gift card for store where you made
purchase
2%$25 Google Play
or iTunes gift card
Forthefollowingrewards,wouldyoupreferaplasticprepaidcardoradigitalprepaideCode?
REWARD PLASTIC DIGITAL
$25 67% 33%
$50 69% 31%
$100 74% 26%
$300 74% 26%
With social media saturating the world, its surprising how underutilized it is for real-time price promotions, especially because its the main reason consumers follow brands online.
CONSUMERS ARE FOLLOWING THE SOCIAL MEDIA PATH
Buy Online, Pickup In Store (BOPIS) has perks for both retailers and shoppers. It reduces shipping costs and gets customers in-store where they can purchase more. Plus, it provides faster access to merchandise for greater customer convenience.
FASTER THAN FAST
Amazon is also testing same-day and one-hour delivery in select markets for its Prime customers.
12 | WHERE ITS AT | BES BOPIS SOCIAL MEDIA BES | WHERE ITS AT | 13
86%would consider buying online and picking up in store to save $10 on a $50 item.
78%would consider buying online and picking up in store to receive an item 3
days earlier.
45%have purchased online
and picked up in store in the last 6 months.
WHYDOYOUFOLLOWBRANDSONSOCIALMEDIA?
53% Values and savings
28% News and trends
17% Promotions and sweepstakes
2% Other
66%would consider
using Amazon Dash.
32%would pay $8 to have an item delivered to their home the same day they purchased it.
of those who follow brands regularly use social media special promotions.68%
15% Daily
20% Weekly
33% Monthly
32% A few times a year
89% of those who follow brands on social media want special offers from those brands.
42% have used special promotions they find on social media.
40% follow brands on social media.
24
$10 3 DAYSEARLIER
AMAZONDASHISANEWSERVICETHATLETSSHOPPERSPURCHASEGROCERYANDCLEANINGPRODUCTSWITHTHEPUSHOFABUTTONLOCATEDWHERETHEPRODUCTSARESTOREDATHOME.
EMAILSTILLDOMINATESINDIGITALPROMOTIONDELIVERY,BUTSOCIALISGAININGTRACTION.
Despite industry investment and broad shopper use, loyalty programs are simply not perceived as providing much value or savings. Grocery stores are the only retail vertical where loyalty rewards are equally dispersed. Outside of grocery, only the very best customers typically receive significant value.
For this reason, only a small percentage of consumers value loyalty programs as a differentiator.
MAPPING THE LIMITS OF LOYALTY
WHILEIN-STORE,HAVEYOUEVEREXPERIENCEDAPROBLEMTRYINGTOREDEEMANOFFERRECEIVEDONYOURSMARTPHONE?IFSO,HOWWASTHEOFFERDELIVERED?
WHICHDEVICEDOYOUUSEMOSTOFTENTORECEIVEANDREDEEMEMAILANDSOCIALPROMOTIONS?
80%
80% Email
8% Other
7% Text
5% Phone app
14 | WHERE ITS AT | BES LOYALTY PROGRAMS DIGITAL PROMOTION DELIVERY BES | WHERE ITS AT | 15
SOCIAL GAINING ON EMAIL
WHICHTYPESOFPROMOTIONALOFFERSDOYOUUSE?
73% Email
42% Social media
37% Text
36% Shopping apps
CONNECTINGIN-STOREANDONLINEPROMOTIONSISIMPERFECT.SMARTERPOINTOFSALETECHNOLOGIESAREENTERINGTHEMARKET,BUTUNTILTHEYPROVE
THEMSELVES,DIFFICULTIESWITHMOBILEOFFERSWILLBECOMMON.
OFCUSTOMERSRECEIVELOYALTYOFFERSVIAEMAIL.
Only 15% believe loyalty programs provide the most savings.
73% belong to loyalty programs.
62% of those who belong are happy with their loyalty program.
88% of shoppers who receive email promotions use the offers.
44% often44% sometimes
70% of shoppers who receive socialmedia promotions use the offers.
28% often42% sometimes
37% Problem with text!35%Problem with email!27%Problem with app!
62% COMPUTER 27% PHONE 10% TABLET 1% OTHER
88% of shoppers who receive text promotions use the offers.
44% often44% sometimes
87% of shoppers who receive app promotions use the offers.
42% often45% sometimes
ALL ROADS LEAD TO SALESRebates and validated rewards offer shoppers greater value for redeeming post-purchase, give deal-seekers best in-market prices and preserve margins. Shoppers are using technology to seek out rebates, and to quickly redeem them through digital experiences.
68%said rebates are an
attractive offer in-store.
65%said rebates are an attractive offer when shopping online.
57%said they want to
redeem rebates via smartphone.
16 | WHERE ITS AT | BES COMPETITIVE PRICING VERTICALS BES | WHERE ITS AT | 17
Now, lets look at 13 retail verticals and the incentives-to-purchase price elasticity by category.
Rebates and other post-purchase validated rewards offer lower in-market prices than instant discounts, thanks to reduced redemption rates.15% Loyalty
WHEREDOSHOPPERSFINDTHEGREATESTVALUE?It may be a high-tech digital world, but nothing beats a good old-fashioned sale.
51% Sales
26% Coupons
8% Other
ELECTRONICSAUTOMOTIVE PRODUCTS
CLOTHINGAPPLIANCES
18 | WHERE ITS AT | BES VERTICALS VERTICALS BES | WHERE ITS AT | 19
Top 3 sources for comparing prices
62% Retail websites
52% In-store displays
39% Google
37% Amazon
33% Print ads
27% TV/Radio (tie)
27% Value shopper sites (tie)
10% Social media
9% Mobile apps
6% Billboards
Youre buying a washer and dryer for $800. Which reward would you prefer?
58% $150 REBATE42% $100instantdiscount
Top 3 sources for comparing prices
64% Retail websites
53% In-store displays
41% Amazon
36% Google
30% Print ads
25% Value shopper sites
22% TV/Radio
14% Social media
11% Mobile apps
4% Billboards
Youre buying $200 worth of clothes. Which reward would you prefer?
58% $50 REBATE42% $35instantdiscount
Top 3 sources for comparing prices
59% Retail websites
47% In-store displays
43% Google
41% Amazon
29% Print ads
28% TV/Radio
25% Value shopper sites
14% Social media
10% Mobile apps
5% Billboards
Youre buying 4 tires for $500. Which reward would you prefer?
60% $125 REBATE40% $85instantdiscount
Top 3 sources for comparing prices
61% Retail websites
49% In-store displays
46% Amazon
40% Google
29% Print ads
27% Value shopper sites
25% TV/Radio
11% Social media
8% Mobile apps
5% Billboards
Youre buying a $600 smart TV. Which reward would you prefer?
66% $100 REBATE34% $65instantdiscount
48% USE THEIR SMARTPHONES TO COMPARE PRICES.
50% USE THEIR SMARTPHONES TO COMPARE PRICES.
47% USE THEIR SMARTPHONES TO COMPARE PRICES.
53% USE THEIR SMARTPHONES TO COMPARE PRICES.
20 | WHERE ITS AT | BES VERTICALS VERTICALS BES | WHERE ITS AT | 21
GROCERIES & CONSUMER PRODUCTS
FURNITUREENTERTAINMENT
Top 3 sources for comparing prices
53% Amazon
51% Retail websites
43% Google (tie)
43% In-store displays (tie)
28% TV/Radio
26% Print ads
22% Value shopper sites
15% Social media
13% Mobile apps
7% Billboards
Youre buying a $30 DVD/Blu-ray/download. Which reward would you prefer?
61% $12 REBATE39% $5instantdiscount
Youre buying a $100 iTunes or Google Play gift card. Which reward would you prefer?
66% $20 REBATE34% $10instantdiscount
Top 3 sources for comparing prices
61% Retail websites
58% In-store displays
37% Google
36% Print ads
31% Amazon
28% Value shopper sites
25% TV/Radio
9% Social media
8% Mobile apps
6% Billboards
Youre buying a $500 set of table and chairs. Which reward would you prefer?
64% $110 REBATE36% $75instantdiscount
Top 3 sources for comparing prices
67% In-store displays
54% Print ads
47% Retail websites
32% Value shopper sites
26% TV/Radio
25% Google
19% Amazon
15% Mobile apps
10% Social media
6% Billboards
Youre buying 10 grocery items. Which reward would you prefer?
59% $15 REBATE41% $7.50instantdiscount
Youre buying a $55 video game. Which reward would you prefer?
65% $15 REBATE35% $7.50instantdiscount
50% USE THEIR SMARTPHONES TO COMPARE PRICES.
43% USE THEIR SMARTPHONES TO COMPARE PRICES.
48% USE THEIR SMARTPHONES TO COMPARE PRICES.
22 | WHERE ITS AT | BES VERTICALS VERTICALS BES | WHERE ITS AT | 23
OFFICE SUPPLIES SPORTING GOODS
PET PRODUCTSHOME IMPROVEMENT & HARDWARE
Top 3 sources for comparing prices
58% Retail websites
54% In-store displays
40% Amazon
37% Google
36% Print ads
26% Value shopper sites
25% TV/Radio
10% Mobile apps
9% Social media
7% Billboards
Youre buying $100 worth of home improvement items. Which reward would you prefer?
62% $20 REBATE38% $14instantdiscount
Youre buying $60 worth of tools. Which reward would you prefer?
64% $15 rebate36% $8instantdiscount
Top 3 sources for comparing prices
57% Retail websites
55% In-store displays
44% Amazon
37% Print ads
33% Google
25% Value shopper sites
23% TV/Radio
10% Mobile apps (tie)
10% Social media (tie)
7% Billboards
Youre buying $50 worth of office supplies. Which reward would you prefer?
62% $20 REBATE38% $12instantdiscount
Top 3 sources for comparing prices
55% In-store displays (tie)
55% Retail websites (tie)
44% Amazon
35% Google
34% Print ads
25% TV/Radio
24% Value shopper sites
12% Social media
9% Mobile apps
7% Billboards
Youre buying $90 worth of sporting goods. Which reward would you prefer?
64% $25 REBATE36% $15instantdiscount
Top 3 sources for comparing prices
60% In-store displays
53% Retail websites
38% Print ads
36% Amazon
33% Google
27% TV/Radio
25% Value shopper sites
11% Mobile apps
10% Social media
7% Billboards
Youre buying $40 worth of pet products. Which reward would you prefer?
60% $10 REBATE40% $5instantdiscount
45% USE THEIR SMARTPHONES TO COMPARE PRICES.
43% USE THEIR SMARTPHONES TO COMPARE PRICES.
41% USE THEIR SMARTPHONES TO COMPARE PRICES.
41% USE THEIR SMARTPHONES TO COMPARE PRICES.
SUBSCRIPTION SERVICES
TOYS
24 | WHERE ITS AT | BES VERTICALS
Top 3 sources for comparing prices
52% Retail websites
45% Google
39% Print ads
34% Amazon
31% TV/Radio
30% Value shopper sites
29% In-store displays
19% Social media
13% Mobile apps
8% Billboards
Youre buying a one-year home subscription service (e.g., security alarm, lawn care, pest control, etc.). Which reward would you prefer?
62% $110 REBATE38% $80billcredit
Top 3 sources for comparing prices
53% Retail websites
51% Amazon (tie)
51% In-store displays (tie)
37% Google
32% Print ads
25% TV/Radio
23% Value shopper sites
11% Social media (tie)
11% Mobile apps (tie)
7% Billboards
Youre buying $40 worth of toys. Which reward would you prefer?
61% $15 REBATE39% $8instantdiscount
41% USE THEIR SMARTPHONES TO COMPARE PRICES.
46% USE THEIR SMARTPHONES TO COMPARE PRICES.
Blackhawk Engagement Solutions is a leading global provider of customized incentive and engagement solutions for consumer promotions, employee rewards and recognition, and indirect sales channel management programs. Blackhawk Engagement Solutions is a strategic partner with many of the worlds leading brands and a thought leader that provides game-changing engagement solutions. Through innovative products, services and technology, Blackhawk Engagement Solutions inspires actions that impact results.
Blackhawk Engagement Solutions, headquartered in Lewisville, Texas, is a division of Blackhawk Network.
bhengagement.com
Rodney Mason GVP, Marketing [email protected] 972.538.7336
2015 Blackhawk Engagement Solutions, Inc. All rights reserved.
MEASURE WHAT
MATTERS MOST
A marketers guide to improving outcomes by focusing on your best customers and
the critical moments in their journey
t 2thinkwithgoogle.com
IntroductionIts no secret that it takes many marketing touchpoints to connect with a customer, find
a quality lead or make a sale. But how do you know the right message to deliver at each
point in that journey? How do you ensure that your investments are working and that
youre not wasting money and resourcesor worse, alienating your customers?
Todays customer journey includes many touchpoints each one is an opportunity
Better measurement is the answer. Its the key to understanding and making the most of these interconnected touchpoints, but its not always top of mind when building
marketing campaigns. Lay your measurement foundation firstbefore you dive into the creative workand you can achieve more with marketing. In this brief guide well look at four crucial tenets of measurement-focused marketing:
choosing the right metrics, focusing on your best customers, valuing the whole journey
and proving impact. Collectively, these points show how better measurement can
improve campaign effectiveness, help you get the credit you deserve for your programs
and, most importantly, ensure a better return on investment for all of your marketing.
Align metrics with real business objectives
Put customers before transactions
Improve performance by giving credit where its due
Show the incremental effect of your investments
Focus on the Right Metrics
1 32 4Value Your Best Customers
Attribute Value Across the Journey
Prove Marketing Impact
t 3thinkwithgoogle.com
Focus on the right metrics
The best marketers set themselves up for success by identifying clear metrics they
want to effect before launching a campaign. Yet how do you define the right metrics?
Many marketers focus first on high-level campaign objectives such as creating brand
awareness, generating leads or driving in-store sales. But when it comes to evaluating the
success of their campaigns, they resort to measuring lower-tier, proxy key performance
indicators (KPIs). Lets look at the KPIs for a hypothetical auto manufacturer:
For each of these marketing objectives, familiar metrics exist. Yet many of these
familiar metrics were designed at a time when it was hard, if not impossible, to measure all touchpoints. Today, with advances in analytics, its possible to better align your metrics with your core business goals. If your companys biggest goal is to increase profits, then your marketing metrics should show how your
campaign contributed to profits.
For example, if your marketing goal is to generate online leads, it may seem natural to focus on lowering the previous quarters cost per acquisition (CPA). But what if by lowering your CPA, you also lower the quality or volume of leads and thereby
1
Some Typical KPIs and How Theyre Measured
Marketing Objective
Marketing Channels
KPIs (Key Performance Indicators)
Measurement Tools
Create brand awareness
TV Video Social Display/Rich media
GRPs Brand lift Video/Rich media engagement
TV viewership Consumer panels Web analytics Brand surveys
Generate online leads
Paid and organic search Display Online referrals Website content
Number of leads CPA ROAS
Conversion tracking Web analytics CRM
Drive customers to store
Mobile web and apps Email Print Radio
In-store visits Number of purchases Purchase value
Mobile app analytics CRM Transaction data
t 4thinkwithgoogle.com
reduce revenues and add other costs? Perhaps in this case you should create a new
metric: Cost per high-quality acquisition.
Another common pitfall is using metrics without context. Suppose your colleague has
just launched a new video, and she sends around a proud email touting 20,000 views.
How do you know whether 20,000 is a good number of views? One way to answer this
question is by looking at benchmarks for similar videos launched by your company or
other comparable companies. You can also look back at the creative brief. If you launched
the video to create awareness among new potential customers, but the majority of
these views came from your existing customers, then the video missed the mark. Your
colleagues metrics should reveal information about how many new customers view (and engage with) the video rather than the number of views alone.
Well-designed metrics often cross departments within an organization. Over time, one customer may see and be influenced by many different marketing programs from the same company. So if your #1 overall objective is profit, then your return on
investment should be measured based on the sum of all marketing inputs, not just the direct-response campaign a customer saw right before making a purchase.
Breaking down organizational silos can be a painful and highly political process, but its
worth the trouble for organizations that stick with it. Peoples salaries and bonuses may
be tied to legacy metrics, so if you want to switch to new (more strategic!) KPIs, you may
need to also consider new incentive structures for your sales and marketing teams.
Its vital to find a champion, ideally a senior-level manager, who can help make teams
Online Leads
Entire Customer Journey
Increase in Profits
Brand Awareness
In-Store Sales
Break down team silos to reflect the true customer journey
t 5thinkwithgoogle.com
jointly accountable. Simple strategies include making sure that different marketing groups
sit near each other at work, or creating monthly cross-team meetings to share goals and
metrics. Some companies also create internal good for the business reporting tools
that dont impact the official financials but allow separate teams to view shared marketing
impact. Even better, restructure the organization so that your brand team, your digital
team and your store team all report to the same personoften the CMO. That person
should be responsible for providing a unified view of marketing achievements, tying these
back to the broader business goals.
And keep in mind that excellent KPIs are useful only if you have reliable data to keep track
of your results. Make sure you have the right analytics and measurement tools for both online and offline channels, to collect clean and accurate data that will let your entire
team glean insights about your performance. Strive to bring your data and reporting
together to deliver one single source of truth for your entire organizationthe more
youre able to share data and metrics, the better youll be able to respond to the needs of todays customer.
Key performance indicators (KPIs) that measure the success of a single touchpoint fail to inform eBusiness executives of the impact of consumer engagement across multiple touchpoints. Additionally, department, team and individual goals aligned to a single touchpoint ultimately fail to drive cross-touchpoint thinking and behavior in employees. This siloed approach hinders the shift to a digital business.Martin Gill, VP, principal analyst in Forrester report1
Have I selected relevant metrics and benchmarks to measure marketing success?
Do my marketing metrics align with business goals such as revenues and profits?
How can we break down silos and make teams jointly accountable?
Do I have the right measurement tools on hand?
ESSENTIAL QUESTIONS FOCUS ON THE RIGHT METRICS
1 Forrester Research, Inc., Define New Metrics For Digital Business Success, March 26, 2014.
t 6thinkwithgoogle.com
Value your best customers
While you consider what to measure, youll also want to think about who you should be measuring.
Its understandable to want to increase store and website visits with coupons or
promotions, but what if those customers end up costing you more money than they
bring in and then never return? When the incentives are geared solely around short-
term sales and CPA, its tempting to buy cheap placements and keywords for ads and
promotions. However, doing so can lead to short-lived customers and success.
The shift from conversion to customer-centric marketing means a change in thinking. And it begins with getting to know the customer.
Neil Hoyne, When It Comes to Attribution, Customers Count Read the article >>
Instead of measuring transactions alone, model the lifetime value (LTV) you derive from
your customers. For example, you may discover that 20% of your customers are driving
80% of your profits. By focusing on getting to know those best customers (the whales)as well as how you acquired them and how you can find and retain more
like themyou can cut costs and increase revenues.
Quick Tips for Customer-Centric Measurement
Really know your customers
Distinguish the whales from the wasted energy
Find and retain more whales
Deepen your understanding of your customer base:
Who are they?
Where did they come from?
How long do they stay with you?
How much have they spent over time?
How much have they cost?
Centralize your analytics to attain this holistic view of customers.
Use your CRM system and website analytics to segment your customer base.
Look for segments of customers who completed high-value purchase.
Identify segments of customers who purchased repeatedly (look for multiple and high-value sales).
Find segments that perform desired behaviors on your website.
Determine which segments are not performing well.
Identify which (combination of) marketing channels and keywords helped you acquire your best customers; then double down on those.
Use marketing tools to find more potential customers who closely resemble your best existing customers.
Use technologies like personalization and remarketing to strengthen relationships and drive long-term value.
Reduce waste by decreasing marketing spend on customer segments that are not performing well.
Read more tips on developing strong customer relationships through tailored experiences in the Secrets of the Math Minds >>
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AccuWeather is using better customer data so we can start to market on an individual basis rather than focusing on a traditional market segment like we do now. Its really exciting to build experiencesreally personalized weather solutionsfor our users rather than for general segments of users.Steve Mummey, director browser products, AccuWeather.com
As you get to know your customers better, remember that the customer journey is continually evolving. People are spending more time online, especially on mobile, but advertising spend hasnt kept up. Now consider that the 25-year-old consumers of tomorrow are the 15-year-olds of today, and more than 75% of todays teens already
shop online.2 (And you know how much those teens use mobile.) Channel use is changing fast, and measurement is the best way to see where your customers are headed.
ESSENTIAL QUESTIONS
How much do I really know about my customers? Have I defined customer clearly?
How do I acquire more customers who resemble my best existing customers?
Do my advertising investments align with my strategy to reach and win the whales?
VALUE YOUR BEST CUSTOMERS
2 June 2014 BI Intelligence e-commerce demographics report / Piper Jaffray Spring 2014 Taking Stock With Teens.
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Attribute value across the journey
How do you know whats working in your marketing and whats not? Start by identifying
the role of each touchpoint along the customers journey. (If youre not sure how different
channels influence the purchase decision, our Customer Journey to Online Purchase tool can show you industry benchmarks.)
Once you have a handle on what the customer journey looks like, marketing attribution
can help you to optimize your digital campaigns. Marketing attribution, broadly speaking,
means dividing up the value of an online sale (or conversion) and distributing fractions of that value across the different touchpoints that led to the sale, from a display ad seen
last month to a search ad clicked this morning.
To get the most out of attribution, be sure to pair it with flexible marketing tools (and
incorporate offline channels via marketing mix modeling). That way, you can adjust your
investments and messaging to better connect with your customers.
Distribute credit to multiple touchpoints along the path to purchase
Dont forget that you also need to appropriately value each touchpoint within a single
channel. For example, if youre using online display ads, interest-based targeting is more
of an upper-funnel activity than remarketing; and for paid search ads, generic keywords
help you engage with more new customers than do brand keywords (which tend to
convert more existing customers).
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Email Organic Search
Display Social
? ? ? ? $100
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Attribution can be done with spreadsheets, rules-based modeling software or even
sophisticated data-driven algorithms. Whatever attribution method you choose for your
business, make sure you continue to adapt and measure results so you can see what
really works for your business. Thats the way to get the most out of your measurements
and your marketing.
Get to know the conversion path for your business. Ask yourself the following
questions:
Whats the time frame for a typical conversion? Hours? Days? Weeks?
Which channels influence your customers? Are you measuring them all?
Do you understand the role that each channel plays in moving your customers to make purchase decisions?
Qualify the seriousness of your attribution problem: Start by contrasting your
standard model (often a last-click model) with other models (such as data-driven
attribution). Note the deviation. If there is little deviation, the problem is probably not serious. If theres a lot of deviation, you may have a larger attribution challenge (and opportunity).
Dont let organizational silos stand in your way: Make sure your attribution work
spans all of the marketing channels your customers are likely to encounter.
Consider offline channels and pathways and their interactions with your online
media. Dont think of attribution as digital only.
Take advantage of cross-channel efficiencies. For example, use display creatives to drive customers to low-cost keywords.
Cross-device attribution can be a technological challenge, but dont let that stop
you. Use a mobile multiplier or other estimation techniques to account for the
role that mobile plays. (You can use our Full Value of Mobile Calculator for this.)
Find more tips in the Definitive Guide to Data-Driven Attribution >>
Six Tips for Better Attribution
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Keep in mind that attribution by its very nature is backward-looking. If you havent
historically used a certain channel (say, a new social network), then attribution cant tell
you how well that channel is going to work in your new campaign. It can, however, provide
directional guidance (by examining the past performance of other social networks youve
used, for example). And it can help you optimize as you go. At its best, attribution helps
you to understand how different marketing channels are influencing your customers so
that you can adapt not just your investments but also your messaging strategy.
Attribution modeling changes everything. Were spending our money more efficiently than we were before. We know what were getting for it.Joe Meier, vice president business development, Baby Supermall
ESSENTIAL QUESTIONS
Am I measuring and valuing all of my customer touchpoints, both within channels and across channels?
What does the full customer journey to conversion look like for my business?
Am I applying attribution results to improve my investment decisions as well as my customer messaging?
ATTRIBUTE VALUE ACROSS CHANNELS
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CarPhone Warehouse uses geo-experimentation to prove how mobile influences in-store sales. See how >>
Prove marketing impact
The right metrics, the best customers, the full purchase journeyeach of these is crucial
to smart measurement. Yet perhaps more important than any of these is proving marketing impact. What you really want to understand is what happened only because of a given marketing spend change (and would not have happened without it). Beyond
helping you invest more wisely, proof of incremental effectiveness can also help change
perceptions among senior executives, taking marketing from a cost center to a revenue driver.
To show incremental impact, youll need to switch from correlative measurement to
causal measurement. Correlation can be useful, but it wont convince your CFO that the
marketing department is fattening the bottom line. Take Joe, a hypothetical SEM manager.
After applying attribution tools, Joe sees that his remarketing campaign is a key driver of
conversions. But is it really remarketing at work, or is Joe simply showing ads to a subset
of customers who would have converted anyway?
To show causation, you have to experiment. Well-designed experiments are controlled
and statistically robust, with a clear test group that sees the content youre investigating
and a control group that doesnt. One way of achieving this is through randomized
geographic testing: for instance, turning display ads on in some regions and off in others.
(See Measuring Ad Effectiveness Using Geo Experiments for more details.)
A big advantage of this type of experimentation is that it can evaluate marketing impact
across all devices. It also can solve one of the attribution challenges we described above:
estimating the potential performance of a new and untried marketing channel.
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Geographic testing, of course, isnt the only available experimentation tool. Experimentation
can also be used to optimize ad campaigns or website content. Whatever type of testing
youre doing, it should be ongoing and iterative. Test one thing at a time, based on a very
specific question and hypothesis, and add the findings into your strategy. Then move on to the next test.
To get a feel for the types of hypotheses you should be testing, keep up to date on industry trends and consumer studies, such as new holiday shopping behavior, the impact of digital on in-store sales or how brand marketing is changing thanks to mobile video and search ads. Use what you learn to validate your own investment plans.
Positive Testing Cycle
Observe current behavior and
metrics
Test different programs
Implement change
repeat!
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Using controlled incrementality measurement provides a competitive edge for HomeAway. Not only do we know what works and what doesnt, but we can also apply the measurement knowledge over and over, comfortably extending our business footprint using more and more channels.Will Lin, vice president global online marketing, HomeAway
Am I relying on correlations, or can I base my decisions on measured causal impact?
Do I know the incremental value of each of my media investments?
How can I incorporate experimentation to prove the value of my marketing, including new channels?
ESSENTIAL QUESTIONS PROVE MARKETING IMPACT
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Dont wait until after youve run your campaign to think about measurement. Establish your
measurement-focused marketing strategy before you spend that first dollar. Heres a recap of how to do it:
Focus on your true business objectives Make sure your KPIs are in line with the real problems that youre trying to solve. Dont let
organizational silos stop you from measuring what matters most.
Measure customers, not just transactions Measure long-term customer value instead of pure revenue, and look at which channels
bring you your best customers. Youll develop stronger, more profitable relationships and
avoid wasting money and effort on customers who cost more than theyre worth.
Attribute value across the whole customer journey Understand what your customer journey looks like, and think holistically about your
marketing. Attribute credit to various marketing touchpoints to uncover insights and
opportunities that will help you invest more wisely.
Prove the incremental impact of your marketing spend Identify vital channels and new opportunitiesthen experiment to prove the value
of your efforts (and stop whats not working). Make experimentation a regular part of
marketing cycles: keep testing and keep improving.
Checklist: Measure what matters most
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