Measured Marketing

MEASURED MARKETINGIn Today’s Hyper-CompetitiveE-tailing Space

Meet Fifth Gear

ORDER FULFILLMENT + CONTACT CENTER + ECOMMERCE TECHNOLOGY + MARKETING SERVICES infifthgear.com 800.227.4462

• Based in Indianapolis since 1983

• Employ 50 locally, over 500 company-wide

• Facilities in Missouri & Pennsylvania

• What we do:Outsourced Retail Business ServicesEcommerce Technology ServicesOnline Marketing Support

infifthgear.com

Online Retail is Multi-Channel


Go Ahead.Try to

Measure This!


Welcome to the World of Ecommerce

The B2C Analytics Challenge


• Abundance of data• Rapidly emerging channels• Unsure what to measure• Multiple management tools available• Difficult to set ROI goals

• Result:– The overwhelming nature of day-to-day

multi-channel operations gets in the way of appropriate marketing analysis.

Changes in Online Retail


• Site Technology– Advanced Search– Product Videos– Abandoned Shopping Carts– Consumer Reviews

Find Observe/Lurk Participate Engage Purchase/Link

• Social Commerce• Mobile Commerce– Smart Phones– Tablet Devices

Consumer Behavior in a Social World

The Social Commerce Revolution


2011 2012 2013 2014 201502468

10121416

$1billion$3billion

$5billion

$9billion

$14billion

US Social Commerce Sales2011-2015

Sales of physical goods through online social networks are predicted to grow by 93% per year in the US, reaching $14 billion by 2015.Source: Booz & Co.

At the time of the survey in 2010, 27% of shoppers were willing to buy through social media.

Measuring Social Conversion


• Shoppers who land on retail sites through Facebook or Twitter are less likely to make purchases. Their conversation rates average 1.2% and 0.5% respectively.

• Per average order, however, they spend more than those who come through Google.

• In fact, shoppers who originated from Twitter spend on average $121.33 – the highest average order value (AOV) of all.

Source: RichRelevance Study, MediaPost: “Shoppers Via Twitter Spend More, Online Behavior Impacts Retail” September 14, 2011.

Mobile Commerce


2010 2011 2012 2013 2014 2015 20160

5

10

15

20

25

30

35

$3billion$6billion

$10billion$14billion

$19billion

$25billion

$31billion

Mobile Commerce Sales2010-2016 Mobile commerce

sales will grow to $31 billion in 2016. M-commerce sales accounted for only 1% of ecommerce sales in 2010, but will increase to 7% in 2016.

Source: Forrester Research Inc. sales of merchandise excluding digital content such as ring tones and mobile games

Device-centric Retailing Smartphones & Tablets

Feeling the Pressure


Rapidy changing customer expectations

High customer adoption rates of mobile devices

Proliferation of new marketing channels

Increasing customer expectations for cross-channel experience

Demographic changes of consumers/buyers (generational, cultural)

0 0.1 0.2 0.3 0.4 0.5

47%

38%

28%

26%

21%

External Pressures Driving Mobile and Tablet Adoption

Source: Aberdeen Group, August 2011

How E-tailers Divvy Up the Marketing Budget


Paid search gets the largest allocation in the marketing budgets of 158 online retailers surveyed in early 2011 by the E-Tailing Group.

Search marketing, including paid ads and SEO, accounts for 41% of the marketing spend.

23% “DON’T KNOW.”

Source: The E-Tailing Group

Paid Search

Email

Search Engine Optimization

Affiliate Marketing

Comparison Shopping Engines

Retargeting/Behavioral Targeting

Social Marketing

Don't Know/Other

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35

30%

16%

11%

7%

5%

4%

4%

23%

Actionable Analytics


• Marketing Analytics– Site Stats– Search Rankings– Pay Per Click– Conversion Rate– Customer Segments– Targeted Offers– Abandonment

• Operational KPI’s– Average Order Value– Shipment Accuracy– Shipping Methods– Rate of Returns– CUSTOMER

SATISFACTION

Data-driven Decision Making


• Saves time and money• Helps allocate staff and budget• Gains a better understanding of competition• Allows for strategic planning• Align with corporate strategy• Reveals strengths and weaknesses

For retailers:– Pinpoint shopping trends– Improve merchandising– Optimize inventory assortment– Improve retail promotions– Gain visibility across the supply chain

It’s a Math Problem


Measured Marketing

Business

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