Multichannel marketing: conversion attribution

Multichannel marketing is about spreading the marketing budget out more than one channel. That’s no real insight, I know. But do you now which of these channels generate the highest conversion rates? 

Because you can only spend your marketing budget once, you need to gather information on the success of each channel. You can use analytics software for your online channels and organize customer panels or polls to collect all this information from your offline channels.

Once you have all this data, it’s easy to jump to conclusions on what channel generated the highest conversion rates. It might seem fair to forget about the channels showing the lowest performance. However, this is not always the best thing to do. What about conversion attribution? 

For example, a person receiving an email newsletter might not click the link to your webshop but search for your product online and decide to click on your Adwords ad. In your data the newsletter did not convert, the Adwords ad did. But without the newsletter, the conversion would not have been there at all. So, don’t say goodbye to your newsletter yet.

Google made things easier some time ago by adding some great tools for multichannel analytics to their Analytics software. Check out the new Analytics features in this YouTube video

Poor online/offline integration costs fashion retailers millions of pounds

According to research by Head London, poor digital/offline integration has cost fashion retailers a combined total of over £31m over the past 3 years.

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Head started by rating fashion retailers on the Integrated Customer Experience Scale (ICES), taking into account in-store, website, mobile, catalogue, telephone, iTV, and social media experiences during all stages of the shopping process. It then combined this score with the retailers’ financial performance. The result is a clear correlation between a strong integrated customer experience and sales growth.

In particular, fashion retailers are missing out on simple merchandising opportunities (showing clothes as outfits on online channels), and are perceived to be less focused on their integrated customer experience (compared to many other sectors, such as grocery retailers). They also face the threat of department stores who are more likely to deliver better integrated experiences.

Download the full white paper (PDF, headlondon.com)

 


There is, of course, no single, magical “multichannel silver bullet” but there are some key questions that you can ask a checklist, if you will the answers to which will put you on the right track for developing a sound multichannel marketing strategy…
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Lessons from the exhibition hall

eTail West, recently held in Palm Springs CA, had the highest retailer attendance in it’s 10 year history, and a optimistic outlook on the future.

Four full days of key notes, retailer presentations and panel discussions saw strong insights and experiences presented across key themes such as multichannel, search, email, mobile, social, analytics, customer acquisition and retention etc.

 One insight I gained from the conference about the state of the US retail industry when it comes to multichannel retailing was not from what was said, but from the change in who was exhibiting…and how that had changed over previous years.

 In previous years the show was dominated by vendors of core solutions. This year search and rich media vendors were thin on the ground; analytics vendors were absent completely. Was it they were falling on tough times? No, it was that in a conference focusing on the future, the new sale opportunities for core vendors changes.

 An exhibition hall is like match-making dance for singles. Where buyer meets seller and start a relationship. In the case of multichannel retailing in the US Retailers are all now customers of these core solutions; they are already in a relationship. So the vendors who made up the exhibition hall this year were new and emerging solutions, tackling future changes in technology and customer behaviour.

 The message from this was clear, the basics had been done…and the focus was on newer channels (mobile and social), better returns in existing channels through measurement and analysis (attribution, customer life time value), better targeting (remarketing, customer segmentation) and personalization. These were reflected the key themes and talks of the conference also; with an overwhelming, and I believe well justified, emphasis on mobile.

Paul Marshall 

DIY retailer Wickes is to carve up its stores and sublet nearly a third of its floorspace as growing online sales reduce the need for large stores.

Wickes wants to ditch 1.4 million sq ft of space from the 5 million sq ft it has presently. The retailer will be downsizing more than 100 out of its 200 stores, but is also looking to expand with the smaller format.

Meech said Wickes believes that in 10 years’ time DIY retailers will have a portfolio of smaller stores with a strong multichannel offer. Multichannel has been a key growth area for Wickes. Last year online sales rocketed 70%.

Meech said Wickes wanted a “store size that works best for the customer and is convenient to shop”. He argued that the 100,000 sq ft sheds operated by rivals such as B&Q and Homebase are less easy to shop.

eCommerce trends for 2011

In its latest report, Forrester has outlined a number of eCommerce trends for 2011. Most notably, the technology and market research company believes that social commerceholds little promise, at least in the short term.

Forrester recommends that companies

  • Ensure that they are set up for multichannel excellence because the shift of sales from physical retail to web channels will continue
  • Ensure that the quality assurance process, especially for tablet devices, is solid. Forrester believes that tablet devices will capture tradional PC web traffic, freeing shoppers from their desktops
  • Focus their mobile phone efforts on multichannel and location-based strategies. It predicts that tablet owners are likely to use them for surfing, whereas mobile and smartphone owners are more likely to target specific content, such as store locations and hours
  • Consider the value of marketplaces. It notes that Amazon’s marketplace captures orders without holding stock or paying for shipping costs – orders are fulfilled by other merchants
  • Invest more in ‘conversion marketing’ tactics, or specific actions to drive sales while shoppers are on their websites. Examples include offers that only apply during a single session
  • Measure social network activity but not expect much in terms of sales. It says that the likelihood that social networks will lead to digital sales this year is limited.
Watch on infiniteappetite.co

ALTIZ by Kanding Ray

Fahr rein, wir laden ein: So begrüßt Media Markt seine Kunden ab kommendem Dienstag in der neuen Multichannel-Filiale in Ingolstadt. Media Markt nutzt dafür viele verschiedene Kanäle: Kunden können unter anderem online-bestellte Produkte an einem Drive-In-Schalter abholen und sich an kleinen Online-Terminals und einer großen, interaktiven Touch-Videowand über vorhandene Waren informieren. 

House of Fraser’s first click-and-collect store, in  Aberdeen’s Union Square, had opened today.

The store does not stock merchandise but instead features iPads, computers and interactive screens where customers can order products which are then delivered the following day to either the customer’s home or to the store for collection.  

Customers will have direct access to more than 1,000 brands stocked on House of Fraser’s website.

The retailer will open a second store at Liverpool One shopping centre before Christmas. The retailer said “further stores are planned”.

House of Fraser said the store’s coffee bar and comfortable seating will encourage “a relaxed shopping environment”. 

Fitting rooms will also be provided so customers can try on items before taking them home. 

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