The Essentials of O2O For Growth Stage Startups

By Richard McGirr Head of Sales and Marketing

Agenda:

1. What is O2O?

2. What are the requirements of a successful O2O strategy?

3. The realities of modern retail

4. Strategy # 1: Local SEO

5. Strategy # 2: Optimizing your packaging

6. Strategy # 3: CRM/Marketing Automation

What is O2O? The links between physical and digital commerce

Problems in Brick and Mortar Retail

1. Difficult Search

2. No personal curation

3. Expensive/Lower Margins

4. Limited/biased information available on

products

Problems in eCommerce

1. NO physical touch and feel of product

2. Delay between purchase and receipt of

goods

3. Product may not meet customer’s

expectations

The realities of modern retail Key Statistics from Deloitte Digital

1. Digital interactions are expected to influence 64 cents of every dollar spent in retail stores by

the end of 2015, or $2.2 trillion.

2. Nearly 8 in 10 consumers (76 percent) surveyed interact with brands or products before

arriving at the store

Huge portion of purchase decisions made before custom enters the store

3. Consumers who use digital while they shop in-store convert at a 20 percent higher rate

compared with those who do not use digital as part of the shopping process.

What does it take to run a successful O2O strategy?

1. Retail distribution in their target markets

2. Pull with retailers.

Successful implementation of strategies require cooperation with

retailers, this will cost retailers money!

Strategy # 1: Local SEO (This is a random search performed when I wrote this presentation)

Ask to be added to your retailers websites!

If you are not on their website, you are not in the customer’s consideration set when they enter the store!

Strategy # 2: Optimizing Your Packaging

1) Upsells: Add an offer to your packaging

2) Conversion: Testing/Instructional Video

3) List signup in exchange for offer

Free accessory with input of mobile number

Buy one get one free with social share

Contest Entry

Etc.

Strategy # 3: CRM/Marketing Automation

1 to 1 personalized offers

1. Consumables restock based on usage data or average life cycles

2. “Friends of people that like your Fanpage” Facebook Ad Campaigns

3. Driving online traffic into a store from your marketing list

4. Flash Sales/Special events

Sample Facebook Campaign

Product: Consumable Product (i.e. hair product)

Objective: Convert retail customers into higher-margin eCommerce customer

Implementation: Set tracking pixel on store locator page

Assume user is about to make a retail purchase

1. After 60 days (lifecycle of consumable) begin showing ads to re-order online for a discount

2. Customer buys from online store, cutting out margin loss from distributor and retailer

3. Use customer data to develop profile of them for further communications to encourage re-orders and brand evangelism

THANK YOU

How GreyLoud.com fits into your O2O strategy:

5+ Years experience in Database Marketing

Developed O2O strategy and largest chain of electronics repair shops in Los Angeles

Headquartered in Hong Kong, offices in USA and Europe