Eight Online Retail Marketing Strategies For The Win

Standard

NRF forecasts that retail sales in 2016 will increase by 3.1 percent, from the average growth rate of 2.7 percent for the last ten years. Non-store sales in 2016 are likely to increase between 6 and 9 percent. US eCommerce Sales is likely to increase by 9-12 percent in 2016.

salesgrth
ecos

According to a report, web sales grew by 23 percent in the last quarter of 2015. Here are eight strategies retailers can implement to win the last quarter of 2016.

Eight Retail Marketing Strategies To Prepare For The Retail Challenge

 

Get ready for the Mobile Wallet Challenge

tech1

  • Digital wallet usage has increased at a massive rate – from 35 percent in the beginning of 2014, to 55 percent at the end of 2015.
  • 150 retailers generated an impressive 11 percent average conversion rate using Apple Wallet & Android Pay.
  • 82 percent of smartphone users utilize their mobile devices while in-store to make a purchase decision.

 

Drive in-store traffic and purchases with Mobile Wallets, as the adoption rate for mobile wallets is high.

 

Empower In-store representatives

Portablepos

  • Adopt a ‘portable mini’ POS system in-store . Having them at a brand’s physical location for easy product browsing and fast check-out enables marketers to capitalize on every purchase opportunity
  • Invest in training in-store representatives. The service provided by a brand’s retail staff is imperative for a positive in-store experience so retailers need to put an emphasis on training and educating their employees.

Empowering in-store reps can make for a positive shopping experience, creating repeat in-store visits. At the same time a poor in-store experience can create a negative word-of-mouth for your store.

 

dom

Messaging For Engagement and Direct Marketing

Customers prefer messaging and including the same in Omni-channel retail strategy can prove to be an effective engagement tactic.Messaging apps and Text messaging can prove to be an effective sales channel. Here are four ways retailers can use messaging for Omni-channel retail.

  • Sales process that allows users to text an order. A good example here is Domino’s Anyware.
  • Providing order and shipping updates.
  • Encourage sign-ups for offer with emails online and on mobile.
  • Updates for order online and Pick-up in store.

 

Create Subscription Based Offers

Subscription based services provide consumers a stress free shopping experience where they receive products that are designed specifically to cater to the consumers requirement. In addition to saving time and money, they the subscription services are preferred for ease of shipping and stress free experience.

BB

 

Easy Check-out options

Provide flexibility in payment options that allow users to checkout in the fastest manner possible. Provide multiple payment options allowing users for paying in the manner that best suits them.

 

Shipping For Competitive Advantage

Amazon Prime Now with ultra fast free shipping process has been preferred with fast adoption rates. Identifying segments and their shipping preference can help you arrive at the best possible offers for your valuable customers.

shipping

Integrate eCommerce with In-store Experience

Allowing customers to check the product in-store before hitting the purchase can help increase conversion and at the same time minimize returns. Pick-up in store with an order online, can minimize customer wait-times making for a better customer experience.

 

Map New opportunities

Identify any new opportunities that exist in your category that you may have not mapped and can now help your brand tap into newer segments or categories.

Source: Online Retail Strategy

Key Insights For Mobile Commerce and Shoppers

Standard

198096

Mobile has gained share as the primary device of research gaining over Desktop only research, with share of mobile research increased to 13 percent from 11 percent. For Mobile Buyers the share of research on Mobile only is as high as 52 percent, as shared by eMarketer.

205391

According to the research study based on 1.7 billion transactions and USD 720 Billion in sales shared by Criteo, App buyers convert faster than the Mobile browser shoppers.

mobile

Mobile Makes For 18 Percent Of Holiday Season Online Sales

Standard

comScore has reported an increase of 13 percent with total online sales for the holiday season, reaching USD 69.1 billion, compared to USD 61.3 billion spent online during 2014 holiday season. USD 56.4 billion was spent online on desktop computers, marking a 6-percent increase versus the corresponding days last year, while online sales from mobile devices increased to USD 12.6 billion, marking an increase of 59 percent. According to comScore report, the Online Sales were highest for the Week starting December 6, the sixth week of Holiday Season.

Holsales1

Cyber Monday was the leading Sales day, sixth year in a row, with more than USD 2.2 Billion spent on Desktop Computers alone.  Mobile commerce is estimated to have accounted for 18 percent of total digital commerce in November-December 2015, an increase from 13 percent in the previous season. Sales for the week of Thanksgiving, on average from Thanksgiving Day through Cyber Monday grew at 10 percent.

Holsales

Mobile and Desktop Share of Online Sales

Mobsales

 

According to comScore chairman emeritus Gian Fulgoni. “Fairly early on it became clear that desktop e-commerce would likely underperform our expectations while mobile commerce was  poised to over perform, but for the most part signs continued to point to hitting that 14-percent overall growth estimate. Where the season ultimately fell short was in the last two weeks of the year, and in particular the week before Christmas. We had anticipated heavy desktop spending through Free Shipping Day on December 18th that unfortunately did not materialize, and spending began to soften more than expected by the Wednesday of that week.”

The shortfall of projected Sales Growth for Free Shipping Day could be on account of launch of services like Click and Collect, as reported by The Washington Post, Forrester Research has found this year that some 42 percent of online shoppers have used click-and-collect. Retailers need to prepare themselves for challenges of Click and Collect services, by adequately staffing for key sales events and opening convenience stores or pick-up locations and increasing distribution points. According to Slice Intelligence, Click and carry has accounted for 6.7 percent of online sales for 12 retailers.

CACsales

Equally important is the role of services like Amazon Prime that offer convenience of shopping and faster and free shipping. To combat Amazon’s success with Amazon Prime, Walmart unveiled a shipping pilot called ShippingPass in May. According to  Millward Brown Digital, Amazon Prime Members  bring in big revenue, with 63 percent of Amazon Prime members converting on the site in the same shopping session, almost five times the conversion rate of non-Prime members.

According to a report, Amazon was seen as the retailer of choice early-on, with a majority of online shoppers -51 percent, planning to shop at Amazon: 

  • The pure-play e-retail giant captured 39.3 percent of e-commerce sales from Nov. 1 through Dec. 6, up from 37.9 percent year over year, according to data from e-mail receipts of 3.5 million shoppers Slice evaluated.
  • Meanwhile, sales on Amazon’s marketplace rose 19.5 percent in the second week of December, beating the e-commerce growth overall of 15 percent, according to ChannelAdvisor, which helps sellers on Amazon’s marketplace.

More than 3 million people joined Amazon Prime in the third week of December alone, 200 million items were shipped for free to Prime subscribers, and more than two times as many Amazon devices were sold than last year during 2015 holiday season, according to The Verge and Amazon’s Press Release.

comScore’s holiday season forecast had expected desktop e-commerce to grow 9 percent to USD 58.3 billion and mobile commerce to grow 47 percent to USD 11.7 billion. While desktop spending fell short by 3 percentage points and USD 1.9 billion, preliminary mobile estimates suggest it exceeded forecast by 12 percentage points and nearly USD 1 billion, making for the shortfall on desktop.

According to Marketing Land “Much has been made of online retail surging and traditional retail suffering. But that “either/or” analysis is simplistic. Among online-only players, it’s really only Amazon and a couple of others that saw significant sales growth. The rest of online shopping gains came largely from traditional retailers’ online divisions.

In other words, traditional retailers’ e-commerce operations (and Amazon) are cannibalizing in-store sales. Yet traditional retail brands and stores support e-commerce by giving consumers the confidence to buy online with the expectation that they can return items locally if they don’t work out.”

Though the Desktop Online Sales fell short of the estimate, the Mobile sales exceeded the Forecast by USD 1 billion, suggesting that the mobile shopping may be more popular for online purchases than expected. According to a report by Fierce Retail “Click-and-collect also proved popular with shoppers as nearly one-third opted for the service and a whopping 69 percent made additional purchases at the time of collection”.

Macy’s CEO Terry Lundgren said in a statement that the department store broke its own record by filling 17 million online orders during November and December. Amazon, by contrast, filled 23 million on Cyber Monday (Nov. 30) alone. The unique visitors to retail sites shows that Amazon has a lion’s share of Online retail site visits.

onlinevisitors

Although the retail online sales are on the rise, the store visits are still key to holiday shopping with 91 percent holiday shoppers visiting physical stores. According to Fierce Retail, “Online and mobile commerce may have experienced big spikes this holiday season, but 91 percent of shoppers still chose to visit physical stores.The vast majority of shoppers—198 million—visited a brick and mortar location between Nov. 1 and Dec. 25, according to the International Council of Shopping Centers (ICSC). The traffic is largely buoyed by retailers’ omnichannel efforts, including those to make stores more personal.”

Omnichannel retail efforts can be boosted for online customers by providing easy interface at a physical location and faster shipping options. Amazon recently announced Amazon@Penn, a new staffed package pickup point to be opened on the University of Pennsylvania campus. The first such facility at an Ivy League university, Amazon@Penn offers the Penn campus community a convenient location for members of the Penn Community to pick up and return their Amazon orders.

Eight Ways  To Win At Omnichannel Retail.

 

Paid Search Generates 16 percent Of Online Transactions For Cyber Monday

Standard

According to Adobe Digital Index, Thanksgiving Day through Cyber Monday drove a total of USD 11 billion in online sales, a 15 percent increase year-over-year (YoY) and 30 percent of all online sales in November (USD 39.5 billion). Brick-and-click retailers saw the strongest growth in sales YoY at 18 percent. The first 18 days in December are all expected to be USD 1 billion sales days*. The other findings from Adobe, Large retailers (average sales revenue of USD 25 million) saw 12 percent growth on Cyber Monday. Online sales for small retailers (average sales revenue of USD 100,000) increased by 6 percent YoY.

As reported by Marketing Land, Online sales topped USD 3 billion on Cyber Monday based on an Adobe report. The company says 200 million visits to 4,500 retail websites generated USD 3.07 billion, an increase of 16 percent from a year ago. That makes it the biggest day of online sales in US history, says Adobe.

The findings reported by Adobe, are similar to those reported by Custora, where the increase in e-commerce revenue was at 16.2 percent over Cyber Monday 2014, and orders (transactions) were up 14.7 percent.

Cyber Monday saw email marketing driving 22.1 percent of orders, free search 20.7 percent , and paid search 16.6 percent.

The other findings from IBM Watson trend hub are:

  • Smartphones share of traffic increased to 36.8 percent in 2015 from 28.5 percent in 2014.
  • Smartphones percentage of sales increased to 15.2 percent from 9.1 percent.
  • Apple devices contributed to 33 percent of traffic and 21 percent of sales.
  • Mobile devices contributed to 28 percent of online sales up 26 percent over 2014.

 

SalesTraffic OS Tabletssales CMonday

Key Takeaways
Cross-Device Optimization

Smartphones continue to increase as a source of Online Traffic, Online retail focusing on increasing online sales, can look at conversion rates for different devices to optimize campaigns for the first two weeks of December.

Maximize Sales with Best Performing Ad Creative

Optimize your search campaign for best performing ad creative in the first two weeks as the conversion rates decline after the first two weeks, to gain best rate of sales. To maximize sales volume, optimize your best sellers and best performing ad creative.
Desktopmob

Allocate Higher Budgets Initially For Campaign ROI

As Online sales volume sustains after Cyber Monday, and conversion rates plateau after the first fifteen days, Marketers allocating search budgets for the first few weeks of December are likely to gain a better ROI for search and remarketing campaigns.

Tabmob

Mobile App Promotion

Use Mobile App Promotion with seasonal deals to convert your shoppers into loyal customers with Mobile App promotion.

Store Locators

Store Location is one of the most searched with as high as 60 percent customers searching store location. Adding location site extensions to your search advertising can bring in better results.

Content Marketing

With 21 percent of online transactions starting from search results, optimizing for Search engines and creating seasonal content and social media posts can get your offers discovered and bring in better results from your campaigns.

 

*Adobe’s report is based on the analysis of aggregated and anonymous data of more than 125 million visits to 4,500 retail websites on Cyber Monday and uses its proven predictive model to forecast the remaining hours of the day. Adobe measures 80 percent of all online transactions from the top 100 U.S. retailers, more than any other technology company.