SURVIVING MARKETING MANIA WITH A SOLID 2012 PLAN

Transcription

1 SURVIVING MARKETING MANIA WITH A SOLID 2012 PLAN

2 Today s Agenda Engaged Marketing Research 3 Key Topics o Overall digital spend o Mobile and social o Data Bronto Presentation 2

3 Food for Thought Questions: 25 merchant interviews Where are merchants placing their 2012 marketing bets? What tactics are ripe for testing and delivering strong results? Are mobile investments forthcoming and can you compete effectively in this growing channel? Will social s greatest role center only on branding and engagement? Are retailers ready for SMS and have they been capturing phone numbers for future marketing endeavors? Are retailers more concerned with data overload or the inability to effectively manipulate? 3

4 We surveyed 110 merchants in 3Q11 Balanced mix of company annual sales $1-5 million $6-20 million $21-50 million $ million $ million $ million $501 million or greater Q11-Q12 In which of the following ranges do your company s annual sales fall? 9% 11% 11% 13% 11% 21% 24% For 46% of those surveyed, online sales account for more than ½ their overall business What percent of your overall business do online sales represent? 3-10% 11-20% 21-40% 41-50% 51-70% More than 70% 6% 11% 12% 10% 25% 36% 4

5 Merchants are moderately prepared to deploy engaging messages in a timely fashion Thinking about your company's ability to deploy engaging messages in a timely fashion, on a scale of 1-10 how prepared are you to meet the evolving challenges where 10 is fully prepared and 1 is not at all prepared? 10 - fully prepared 2% 9 8 6% 19% Most rolled a score of % 6 25% 5 17% 4 6% 3 2 4% 4% 1 - not at all prepared 2% Q6 5

6 Merchants believe they need to be everywhere given pace of change but this requires resources and suggests evolving organizational structures Before we spend marketing money, we need someone to own it; we ll then test small amounts of money in varying places 6

7 #1 Overall Digital Spend Increases With Most Individual Marketing Elements Commensurate

8 Merchants plan to invest 1/3 rd of their holiday/2012 online/cross-channel marketing budgets in paid search Retargeting and social strategies make inroads Percentage-wise, how will you likely allocate your holiday and 2012 online/cross-channel marketing budget? (Total should equal 100% and each box must contain a number even if it is 0%) Paid search 30% (house/ prospecting) 18% SEO/ Natural search Affiliate marketing Retargeting/Behavioral targeting Social strategies (blogs, social networks) Comparison-shopping engines and marketplaces 11% 9% 8% 8% 7% Q2 SMS/Mobile Other (catalog, PR, loyalty program, production) 4% 5% 8

9 As a % of marketing budget, merchants plan to tweak SEO, social, , & behavioral marketing the most Given the changing dynamics of today s marketing programs, please assess how you plan to tweak each of these available tactics as a percent of your overall marketing budget in the coming year. (Top-2 Significant/Slight Increase) SEO/Natural Search 42% 41% 83% Social strategies (blogs, social networks) 32% 47% 79% 20% 51% 71% Retargeting/Behavioral marketing 25% 44% 69% Paid search 22% 35% 57% SMS/Mobile 23% 34% 57% Q1 Affiliate marketing Comparison-shopping engines and marketplaces 16% 11% 27% 29% 43% 40% Significant increase Slight increase 9

10 Strong interest in retargeting as it s attributable We are seeing a 5% clickthrough on retargeting and remarketing versus straight advertising at 2% 10

11 Cross-channel efforts change dynamics Have had MS barcode tags in catalog for 2 years; Educating customers about these tools where they can scan reviews and access videos and seeing lots of usage 11

12 Local assumes a greater role Finesse what we're doing regarding local search; Google allows us to get close to retailers and stores where we are constantly changing algorithms with feeds of daily inventory 12

13 1 in 3 merchants foresee that search engine optimization and mobile initiatives will generate significant revenue increases In the coming year what changes do you foresee for the revenue that each of these tactics will generate via your ecommerce/cross-channel initiatives? (Top-1 Significant Increase) Search engine optimization Mobile (mcommerce, ipads, mobile applications) 31% 30% Paid search 22% 22% Social media Affiliate programs 14% 13% Catalog/Direct mail 8% Q3 13

14 #2 Mobile And Social Dominate Merchant Thinking While SMS Sees Limited Traction

15 While Facebook and Twitter are in place, merchants are looking to expand their mobile and social capabilities over the next 12 months Which mobile and/or social capabilities does your company employ or plan to employ? Facebook fan page and/or shopping 87% 8% 95% Twitter publishing (monitor, respond to and post tweets) 82% 8% 90% Mcommerce site 29% 42% 71% Bar codes or QR codes at retail, via catalog or in traditional advertising 38% 31% 69% Mobile application 19% 27% 46% Collecting SMS opt-in from customers in all channels 14% 29% 43% Texting to send out marketing messages 7% 29% 46% Q7 Texting to send out transactional support messages (confirmations, order status, etc.) 6% 26% 32% Employ Today Plan to employ in the next 12 months 15

16 Mobile dominates discussion but currently a work in progress EVALUATION MODE Come up with mobile plan that makes sense as more traffic is coming from mobile devices; last year (app)s were trendy now mcommerce; wait until technology is consolidated more and invest smartly INVESTING/ENHANCING Our customers are taking advantage of mobile doing research similar to how they use the site (QR codes, price checking, reviews, checking on inventory in the stores) 16

17 Traffic growth and conversion among customers Addressing the design of our s to ensure that they work well on a mobile device with many customers viewing on smartphones 17

18 Apps take center stage Moving into new channels; mobile/mcommerce; apps will be beneficial for brand; also exploring how to leverage mobile to connect customers to our stores 18

19 Social is at a crossroads for many retailers EARLY DAYS OF SOCIAL Customers don't have a game plan; we don't know what they expect or will reach to do. If they like you, will fan you; customers accept new communication and it s part of their diligence (social, ratings, talk to friends) BRANDING Participating every way possible to be relevant to what customers are doing 19

20 Facebook is a 24x7 brand play Facebook is our biggest face to the brand; opportunity to engage with people & inexpensive to post a message 20

21 Everyone has a megaphone so listening and learning is important Allocating $ into brand advertising that includes social media; customer can and will figure out a way to talk about you; exploring where and why they talk about us and participate in conversations; worth it to engage but hard to measure. 21

22 Embrace active customers Customers are completely engaged; not shopping but good place for conversations; it's like a focus group everyday; very successful; spend 1 hour on FB and 1 hour on Twitter at virtually no cost 22

23 Testing to gauge consumer interest important in early stages Don't have a goal I'm meeting; way to be seen as an experiment where sales will come; want to build relationships; targeting influencers not just 1-time shopper 23

24 To date just 21% of merchants are collecting phone numbers for future marketing text alerts For those collecting mobile numbers, the list size is typically less than 10% of house file What percent of your house list has opted in to receive SMS/text alerts for marketing purposes today? 79% 15% 3% 3% Q8 None 1-10% 11-20% >20% 24

25 Merchants are beginning to capture phone numbers to grow their files primarily during call center and online transactions despite limited SMS usage Regarding the tactics you are employing to grow your SMS file, please share how important each of these phone number capturing tactics have been in building your house file. (Top-2 Critical/Very Important) Capturing phone numbers during call center transaction 13% 15% 28% Capturing phone numbers during online transaction 10% 16% 26% Capturing phone numbers during retail transaction 3% 12% 15% Executing marketing campaigns with SMS opt-in objectives 5% 9% 14% Executing traditional marketing or advertising with SMS opt-in objectives 1% 9% 10% Critical Very important Q10 25

26 SMS capture starts online Asking for softly in preference center (i.e. If we do this in future would you be interested is our approach today? 26

27 Connecting channels via SMS sparks interest Testing SMS this year tying into store traffic; incentivizing those in store; opt into or sign up from SMS; coupons via SMS & check in at 4square 27

28 #3 Data Will Determine Success

29 There is room for improvement when it comes to accessing the right data to successfully market to customers and prospects When thinking about your ability to access the right data to successfully market to customers and prospects, please indicate your level of agreement on the following aspects. Existing data allows us to effectively segment our customers 10% 39% 49% Current data is delivered in a digestible format 6% 37% 43% Our data is very accessible for both associates and senior management 9% 30% 39% We currently receive a 360-degree view of our customer s engagement with us 4% 24% 28% Strongly Agree Somewhat Agree Q4 29

30 Preparedness begins with data, analytics and people If you could do one thing to elevate your current marketing strategy what would it be and why? (open ended question) consumer behavior insights/crm/data reporting, analytics SEO, search - paid, local resources: staffing resources: funding segmentation, targeting cross-channel integration, strategy social other, unknown mobile platform optimization catalogs, print pr, branding promotional - free shipping 6% 6% 6% 5% 4% 4% 3% 2% 1% 8% 8% 10% 11% 13% 13% Q5 30

31 The availability and immediacy of data drives need for real-time decision-making Working on attribution and beefing up analytics; what works/what doesn't Trying to build perfect machine that can crunch large amounts of data 31

32 Merchants aspire to a 360-degree view of their customers but have work to get there Need to see all engagements (social + web browsing, ratings/reviews; in-store seminars) in order to make the right marketing decision as this is a leading indicator of purchase intent 32

33 Merchants rethink customer influence Understanding customers as 99/100 brands measure value of customer circle around ltv of customer while we are now layering on social influence on top of purchase 33

34 Better attribution is essential to drive market strategy Need to move beyond assumptions to determine how we allocate $ to channels where sales activity is taking place as not always directly attributable 34

35 Loyalty programs have more meaning than ever before Investing in loyalty program; tested end of month in select marketsour customers deserve it Loyalty program (1.5 million people) allows us to close the loop; the level of information is very powerful from most people 35

36 Q/A Lauren Freedman