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how to leverage multiple sales channels to reach retain cross channel shoppers

How to Leverage Multiple Sales Channels to Reach & Retain Cross-Channel Shoppers

Welcome!

May 13, 2008

before we start
Before we start
  • Submitting questions
    • Submit a question at any time by using the “ask a question” module on the lower right-hand side of your console
    • We’ll address these questions during the 10 minute Q&A section at the end of our presentation
  • Technical difficulties
    • Click on the help button
    • Use the “ask a question” interface
today s presentation
Today’s presentation
  • Highlights from the Krillion Consumer Survey
  • Current retailer and manufacturer strategies
  • Readiness recommendation checklist
slide4

Today’s presenters

Lauren Freedman

President

the e-tailing group

Joel Toledano

CEO

Krillion

about krillion
About Krillion

What we do:

Product-based local search

Driving online users toin-store sales

Who we work with:

Leading manufacturers, retailers, publishers, and search engines

5

about the e tailing group
About the e-tailing group
  • 14 years of e-commerce consulting
  • Author, “It’s Just Shopping”
  • 50+ years traditional retail and catalog experience
  • Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging
  • Proprietary research studies on:mystery shopping & merchandising; marketing and multi-channel customer mindset; In-Store Pickup and Gift Registry
  • E-commerce expert and frequent speaker at industry events, trade associations
purpose and methodology
Purpose and methodology

To better understand the mindset of consumers who research productsonline that lend themselves to purchase at a local store.

The study highlights the role of Internet information resources, the retailer channel, and web-to-store convenience options offered online—such as in-store pickup and inventory availability—in shaping consumer purchase decisions.

  • Survey completed February 2008
  • 1,000 consumers sampled
  • 50% male, 50% female
  • Spend at least $500 online annually
  • Purchase online at least 4x per year
web ready buyers are demanding
Web-ready buyers are demanding
  • “Web-Ready Buyers” are demanding, doing their shopping “homework” well in advance of their purchase
  • “Web-Ready Buyers” who are predisposed to research online are willing to spend at least several days or weeks researching products
  • They are first and foremost problem solvers who leverage the web’s efficiencies to quickly find the right answers to their shopping needs
these customers leverage all channels seeking complete information
These customers leverage all channels,seeking complete information
  • The role of the manufacturer online has been elevated: a visit to their site is often the first stop for savvy online information seekers
  • The store is an integral part of shoppers’ multi-channel buying experiences
  • Expectations are high for Web-Ready Buyers regarding:
    • the number of information sources they seek out
    • the features they expect to see on any given site
    • their propensity for using in-store pickup
the local proposition is clear
Saving time, convenience and saving money are consistently what matter most to consumers when using a local search engine to research products online

To the consumer, local is getting the right price for an in-stock product at a favored retailer

The ‘Local’ proposition is clear
prior to buying consumers are spending considerable time online in research mode
Prior to buying, consumers are spendingconsiderable time online in ‘research mode’

42 percent of shoppers spend more than half of their total shopping time researching online

Q3

slide12

Shoppers multi-source: 72% look to the manufacturer’s website when researching major branded products online, while 54% seek out favored retailers

Beyond this, shopper styles affect where consumers start their research

Q6

slide13
Consumers are first and foremost needs-driven,with many influences triggering their searchfor online product information

Word-of mouth continues to play an important rolesimilarly valued by consumers

  • Women are more traditional: favoring word-of-mouth, catalogs, magazines, newspapers
  • Men are more web-centric: embracing online promotions, banner ads and email

Q11

slide14

Depending upon the complexity of the product category, those surveyed invest several days or even months researching prior to making a purchase

Q8

top 3 essential online resources manufacturers retailers search engines
Top 3 essential online resources:manufacturers, retailers, search engines

Secondary sources include shopping comparison sites,consumer magazines online, portals/directories, and blogs

Q13

exposing products can be facilitated via a series of different channels and a variety of means
Exposing products can be facilitated via aseries of different channels and a variety of means
for online shoppers local means the right price for an in stock product at a favored retailer
For online shoppers, “local” means the right pricefor an in-stock product at a favored retailer

Q15

slide23
To help make purchasing decisions, consumers embrace peer-based content like product reviews (84%) and consumer surveys/studies (57%)

Product images (49%) and literature (48%) are expected sourcesof information that further support decision-making

  • Women trend higher on image and product reviews
  • Men care more about expert articles and videos

Q14

slide25

When selecting a local store to make a purchaseconsumers desire a comprehensive websiteincluding convenience-centric, store-related services

Q9

the store is an integral part of shopper behavior frequently involving multiple store visits
The store is an integral part of shopper behaviorfrequently involving multiple store visits

For information-intensive purchases, consumers are more apt to research online and then complete their purchase at a local store

Q7

slide29
55% have purchased a product online for in-store pick-up, increasing the role of web-to-store activity

Q4

buyers who pick up in store are motivated by shipping savings and convenience benefits
Buyers who pick up in-store are motivated byshipping savings and convenience benefits
  • Among women saving on shipping is even more of a motivator as it was selected by 63%
  • Note: Beyond saving shipping expenses, immediate needs and convenience will always play an important role in “local” shopping

*Other includes shipping not an option, out of stock online; taking advantage of a discount offered if picked up in-store

Q5

slide32
Product locators with inventory access will serve as theultimate foundation for future cross-channel conveniences
are you ready
Are you ready?
  • Comprehensive content must be in place
  • Category-centric tools should give customers the control they demand to swiftly satisfy and solve shopper needs
  • Manufacturers must extend their efforts through retail and search partners
  • Cross-channel conveniences should be clear to shoppers
  • Merchants must think about both time and cost savings when structuring multi-channel experiences

Q5

the e tailing group contact information
Lauren Freedman

President, the e-tailing group inc

773.975.7280

[email protected]

www.e-tailing.com

The e-tailing group contact information
what shoppers care about
What shoppers care about

Consumers think:“research online  buy offline”

Search on Google

Buy in a physical store

Who carries this product near me?

What does it cost?

Is it in stock right now?

36

search engines shopping engines and directories are not one stop shops
Search engines, shopping engines anddirectories, are not one-stop shops

Search engines don’tprovide everything consumers need:

product

location

price

in-store availability

37

in store pickup is already popular
In-store pickup is already popular

2007 online sales (est.):$1.1 billion

2007 online sales (est.):$1.5 billion

55% picked up in store

40% picked up in store

In-store pickup averages $60 more per customer ticket

In-store pickup averages $154 more per customer ticket

Source: National Retail Federation

38

and will become mainstream
And will become mainstream…

eMarketer predicts:

  • Multichannel retailers will roll out more “buy online, pick up in-store” services.
  • Forrester Research reports 79% of multichannel retailers ensure consistent pricing across their channels.
  • Internet Retailer finds 75% of retailers link their e-commerce systems to their fulfillment and order management system.
  • Online ads remain resilient.
  • Video surge slows.
  • Social-network advertising hits $1.6 billion.
  • Networking goes beyond MySpace and Facebook.
  • YouTube decides the election.
  • Beijing Olympics pumps up ad spending.
  • Buy online, pick up in-store becomes expected feature.
  • Movie downloading hits the mainstream.
  • Music marketers roll out new business models.
  • Dynamic ads heighten gaming revenue potential.

Source: eMarketer Inc

39

how krillion enables web to store sales
How Krillion enables web-to-store sales

Krillion has built a huge local shopping dataset of manufacturers, SKUs, store locations & in-stock product availability – more than 700 million data elements, and growing

Leads!

Ready-to-buy consumers

  • Yellow Pages
  • Product reviews
  • Shopping sites
  • Widget on manufacturer websites
  • Search engines

Local Retailers

Krillion Localization EngineTM

  • Metadata by category
  • Product categories

40

the home depot case study increased click performance
The Home Depot case study:increased click performance
  • Launched: February 2008
  • Objectives:
  • Increase click performance online with contextual marketing
  • Drive sales through all Home Depot offers on/offline

Results:

  • 4x conversions to “see it” locally button
  • 2x average CTR on all ad impressions served

41

panasonic case study sales uplift tighter linkage
Panasonic case study:sales uplift & tighter linkage
  • Launched: March 2008
  • Objectives:
  • Increase site capabilities to drive more sales to dealers
  • Offer real-time stock information

Results:

  • Thousands of new views/month and growing
  • Double-digit conversions to “see it” locally button
  • Increased conversion to sale from Panasonic.com to dealers

42

bridging the internet and the store
Bridging the Internet and the store

Mobile coupons will capitalize on theweb-to-store opportunity

Offers sent to consumers drivein-store purchasing

Micro-local targeting through location-aware technologies“

What’s next?

“Mobile phones are more likely to be used in a multichannel shopping process than to

generate m-commerce sales.”

–Gartner Group, Feb. 2008

43

three ways to work with us to grow your web influenced sales
Three ways to work with us to growyour web-influenced sales

Manufacturers: Krillion Product Locator drives revenue and directs in-store sales to dealers

Retailers: enhanced placements and integrated advertising to drive in-store sales

Publishers: Leverage Krillion’s product-based local search platform to increase audience engagement revenue opportunities

44

slide45
For more information about working with Krillion to power your product locator or support your local in-store sales efforts, contact us at [email protected]

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