The customer is always right, at least that’s
what they say.
If you believe in that, then stores must acknowledge the reality that shoppers really, really like their smartphones. They carry and shop with them wherever they go—to the bathroom, to competitor stores, everywhere. What’s a retailer to do?
You have three options: Do nothing, resist change, or embrace it.
Macy’s Inc, the world’s largest fashion retailer, chose the latter. Since Mar. 2010, their stock is up 240%. How did they do it?
Their success is due in part to fusing their “multi-channel” approach into a singularly focused
omni-channel one.
“We used to have two separate, siloed budgets,” explains Serena Potter, group vice president of digital media strategy at Macy’s.
“Now we really only have one marketing budget. We look at what’s the best way to spend that; whether it’s digital or offline, and focus on how they work together to deliver the most sales and the best customer experience.”
In other words, Macy’s Inc and others like them no longer compete with their online or offline selves. They don’t fear showrooming, get anxious when a smartphone shopper consults her phone in the aisle, or fret when a consumer jumps from one channel to another mid-sale. They view these realities as new opportunities; new moments to interact with consumers and increase loyalty.
There’s upside in doing so. Smartphone or omni-channel shoppers have
30% higher lifetime value than single-channel shoppers, according to a recent study from market researcher IDC.
1 How can retailers understand and convert these higher value shoppers?
The answer: Omni-measurement. In order to realize success, retailers must increase their understanding of omni-shopper behavior. Omni-measurement not only does this, but it enables mouth-watering marketing programs, including predictive campaigns, site-to-store funnelling (and vice versa), enhanced purchase frequency, and automated messaging and product recommendations.
Leading retailers such as Macy’s, Office Depot, PetSmart, Sprint and others are increasingly turning to Google measurement tools such as
Adometry,
DoubleClick, and AdWords
Store Visits, and
Store Transactions for a complete view of consumer behavior across all paths, channels, and beyond just clicks.
For example, Sprint discovered that paid search ads drove five in-store sales for each online sale.
2 Knowing that, the company increased their focus and deepened their understanding of the role smartphones play in the purchasing journey. With AdWords Store Visits enabled, Sprint achieved a 31% higher visit rate
3 from mobile search ad clicks versus desktop search ad clicks. This knowledge was instrumental in helping the carrier create a more seamless online to in-store experience recently.
“Over the last several years, we’ve really thought about how that experience when a consumer gets into the store can continue to build on that bridge we’ve made in digital,” says Evan Conway, Sprint’s vice president of digital.
“We’ve looked at the transactions and conversations that our sales associates were already having with the consumer and then we tried to build the tools, technology, and content to make the in-store experience better.”
PetSmart, too, was better able
to omni-measure foot traffic using
Store Visits reporting in AdWords. For them, the data revealed that 10–18% of all search ad clicks resulted in an in-store visit within 30 days.
4
"As a national retailer building a sophisticated local marketing strategy, PetSmart has seen tremendous value in Store Visits data. This data has helped solve an incomplete puzzle,” says Phil Bowman, PetSmart's executive vice president.
“Historically, we’ve relied on numerous approximations to tell us how our search ads were driving store visits, but this data has validated our estimates. It helps us understand the full picture of where our customers are going after clicking a search ad."
When they’re not helping retailers understand how online ads impact in-store behavior, Google tools help merchandisers promote nearby inventory online, another crucial demand of omni-shoppers. In other words, retailers can now “think local” in ways that have never been done before.
For instance, Office Depot achieved a
3X return on digital marketing spend after switching to
Local Inventory Ads.
5 "Now, we are able to reach customers when they search for a product," says Christine Buscarino, vice president of ecommerce marketing for Office Depot, Inc.
“Local inventory ads provide us with a unique opportunity to offer products that customers are searching for and assure them there is inventory in a nearby store."
Of course, these are just a few examples of leading retailers embracing the omni-channel movement to meet the expectations of today’s consumer. And they’re doing it with the help of Google ad formats and measurement tools.
Learn more about how leading retailers are connecting with today’s connected consumer
here.
Posted by Emily Eberhard Pereira, Head of Shopping Solutions Marketing.. November 2014
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