Posts Tagged ‘Omnichannel Retailing’

The Importance of a Millennial Marketing Mindset

Friday, May 2nd, 2014

Posted by Fred Lizza, Dydacomp CEO

Millennials control 21 percent of consumer discretionary purchasing power in the US or $1.3 trillion[1], making them an audience that deserves recognition and attention. A recent survey conducted jointly by Merchant Warehouse and Retail Pro International identified a serious knowledge gap that exists between retailers and their millennial shoppers.  Each generation has their own specific buying patterns and understanding their unique characteristics and purchasing behaviors creates business opportunities that give retailers a competitive advantage.

MillennnialsThe millennials, or Generation Y, often forgo traditional marketing and do much of their shopping via the Internet from a wide variety of mobile devices.  They are visual communicators who look for real life examples to show them the value of their investment and what their money buys them.  Brand names are big with this group.  So is having the latest technology. They are extremely connected and look to their contemporaries for approval.  This group is attracted to the experience, value, cost, quality and service they can expect from a brand, product or company. Social media is the preferred channel for reaching this market. Key influencers for this group are online-savvy peers, the Internet, eCommerce, Reality TV and digital music.

With attitudes and behaviors shaped by technology and dramatic economic volatility, they are more conservative and share many characteristics of people who came of age during the great depression.  Millennials are 2.5 times more likely than their predecessors to adopt new social, mobile and digital channels and they integrate technology into their customer experience.  This is an important demographic for multi-channel retailers.  Alexandra Frith, director of marketing at Retail Pro International comments, “The reality is that there just isn’t room for error; with so much competition – whether in-store or online – retailers can’t risk losing this important demographic.” Knowing how to better attract and engage this group should be an important part of your retail strategy.

According to the survey, millennials are information-seeking shoppers with 60 percent doing pre-purchase research through retailer websites. In addition, 53 percent stated that their shopping experiences are seamless across channels although they note that retailer sites often lack the extensive functionality they have come to expect. They are looking for what is known in today’s vernacular as an ‘omnichannel experience’ and retailers need to consider this to create a relationship with these shoppers.

In addition, millennials are the most multiculturally diverse group in the U.S. today.  Brands that incorporate multicultural themes are winning with millennials as are those that effectively use social media channels to create inclusive communities.  This enables millennials to connect with each other as well as develop stronger relationships with actual products and brands – a retailer’s goal.

Tapping in to generational nuances can help strengthen your marketing strategy.  Staying on top of and utilizing what is current and trending for the millennial demographic will enable you to better connect with this target audience to increase brand loyalty along with your bottom line. Your order management system contains a wealth of information about your customers and, with an eye on strategic marketing, you can use the data to create targeted, effective campaigns to entice your Generation Y customers with promotions uniquely suited to them.

For additional information on operational improvements through automating order management, read this eBook entitled “Drive Your Retail Sales Growth With Operational Efficiencies.”


[1] MillennialMarketing.com – March 21, 2014: The Optical Industry: 3 Tips to Consider When Marketing to Millennials

[2] MillennialMarketing.com – Millennials and Multicultural Marketing

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Posted in CEO, Customer Satisfaction, Customer Spotlight, Dydacomp News, Ecommerce, Email Marketing, Industry News, Multichannel Order Manager, Search Marketing, SiteLINK News, StoreFront.net, Webinar | No Comments »

Omnichannel Retailing – What is it? Why is it Important? And how do you apply it?

Friday, April 11th, 2014

Posted by: Megan Castillo,  Dydacomp Product Marketing ManagerPicture1

Everywhere you look these days you see the phrase ‘Omnichannel Retailing’ – trade shows, industry publications, news blasts, etc. –  but what does it mean and why is it important to online retailers? More importantly, how do you apply it?

Multi- vs. Omni- Channel – Same or Different?

There’s a lot of confusion as to whether or not Omnichannel is just a new hip way to say Multichannel, or if it’s actually different – the answer is … it’s different. Multichannel refers to the actual sales channels through which you are selling – storefront, online, mobile devices, etc.  In the past, these channels typically worked independently of each other, which seemed foolish if you ask me.  Our society is all about networking, so why wouldn’t a retailer ‘network’ between sales channels, after all it’s one brand.  In the past, there’s been an emphasis on making sure the look and feel of the brand is consistent across channels, but what about cross channel promotion?  This is one of the ways Omnichannel retailing comes into play.

Omnichannel retailing is the marketing term that came about as a result of multichannel retailing.  Omnichannel refers to the ‘experience’ the customer has when shopping in one or more of your sales channels, making sure it’s consistent and emphasizes the importance of cross channel promotion.  Obviously customers aren’t going to have the exact same experience shopping in your storefront versus on your website – you lose the ‘touch and feel’ aspect, no sales reps to help you find product, etc. – but there are a few keys things you can do that customers can expect to see across channels – consistent service, product availability and pricing.  At the end of the day, you’re one brand, so you want customers to have a positive interaction at all levels.

Why is Omnichannel Retailing Important?

Retail has always been about the customer experience, and Omnichannel doesn’t change this, it takes it to another level.  It’s now an end-to-end experience that begins whenever and wherever the customer orders, not necessarily beginning/ending in the same place.  A shopper’s journey is no longer a linear one, meaning he or she goes to one sales channel and decides on a purchase.  Today we see shoppers incorporating some, and sometimes even all, of the retailer’s channels into their decision process.  That’s why it’s so important to be consistent, whether in messaging, prices, etc.  If not, you risk tarnishing that customer’s experience and potentially losing them as a repeat customer.  That’s critical, because it costs 5 times more to get a new client than to keep an existing one and existing clients are much more profitable than new ones.

There have been a lot of reports and surveys done recently on the benefits of applying an Omnichannel retailing approach, and the number one benefit is always ‘stronger brand identity/recognition’.  This is key to your survival as a brand/retailer.  Other benefits attributed to applying an Omnichannel approach include revenue growth, expanding your customer base, higher customer satisfaction, and it can be a competitive differentiator, at least until the rest of the retail world catches up.

How do you apply an Omnichannel Retailing Strategy?

There are lots of ways to apply an Omnichannel retailing strategy.  Some of the easier ways include: making use of social media, integrating customer reviews (for online channels), offering cross channel services, and the easiest of all – providing consistent pricing across all channels!  I’m sure most of you use, or know others who use, Facebook, Twitter, Pinterest, etc.  Social media is an easy, free way to get in front of your customers.  Additionally, it can help you expand your reach!  Each time a customer ‘follows’, ‘likes’ or ‘retweets’ something you post, each and every one of their connections now sees it – essentially it’s like free marketing!

Customer reviews are great for boosting online sales, especially for those products are harder to sell due to the lack of ‘touch and feel’ aspect.  And I’m sure many of you have seen retailers offer the option to ‘buy online, pick up in store’, but what you may not have realized is that this is an Omnichannel retailing strategy.  In this example, two of your sales channels are working together, your website and storefront.  These are just a few quick examples.  We’ll talk more about applying an Omnichannel Retail Strategy in future posts.

Final Thoughts

An Omnichannel retailing strategy is a necessity for those of you working in multichannel sales environments, and it makes sense.  You’ve worked hard to build out each of these channels, now let’s start using them to our advantage!

For a more in depth look at Omnichannel retailing, along with additional examples on how to apply the strategy and then how to evaluate the success of your efforts, check out our webinar, Omnichannel Retailing – Finding Value in a Multichannel Sales Landscape .

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Posted in Ecommerce, Freestyle Commerce, Industry News, Multichannel Order Manager, Omnichannel | No Comments »

Back to Basics. Do You Know How People Find You Online?

Thursday, April 3rd, 2014

Posted by Laura Hills, VP of Marketing

If you operate a brick and mortar retail store, it is easy to ask customers how they found you.  And, you can see firsthand which products are selling and which may require further explanations to help the shopper understand either how to use the product or how it would fit them, if, for example, they’re looking at apparel.

Running an online retail business is a different story.  Do you know who is visiting your website?  Where are they coming from?  What do they like or dislike? Getting these answers is not so easy to do with customers who visit you online but the information is available to you.  The information can be found through online analytics.  Analytics are a valuable asset when it comes to your website and your online marketing efforts. The more informed you are about customer interactions with your eCommerce store and the products you sell online, the more effective your marketing efforts and your site will be to drive sales.

It’s so important to understand where your visitors are coming from and how they found you– whether they reached you directly, via a search engine, through social networks or other referring sites.  An analysis of website visitors helps you keep track of new and returning visitors.

Through tools like Google Analytics, you can capture and analyze how much time people are spending on your site and which pages on your site are attracting the most attention. Monitoring website analytics on a fairly frequent basis can make all the difference to growing your online business. We have found that there are two critical areas where even simple analytics can help to hone your web marketing strategy effectiveness.

The first centers around Internet search keywords.  Keywords drive traffic, messaging and sales. Analytics can help you determine which keywords are working and which keywords are not. Words or phrases that you thought described your product may not be what online visitors use to search for your product and find your site. You may have the right keyword, but the wrong content surrounding it.

You don’t have to manage hundreds of keywords. In fact, most PayPerClick (PPC) and SEO experts will agree that you should keep your primary keyword list under 25 or even under 15.  These are the words that shoppers would use to find the products you offer and/or to find you, in particular.  They can be common terms for the market(s) you serve coupled with your differentiators.  For example, in the fashion apparel market, popular keywords may include ‘women fashion shoes’, ‘fashion accessories’, ‘vintage handbags’ … to name a few.  You can actually search for ‘common retail search keywords’ and then check out those listed for your specific audience.

The second centers around your landing pages.  If you don’t have the time to analyze your site’s keyword performance in depth every day, we recommend, at a minimum, understanding your landing page content relative to your most important keywords. Understanding key website performance indicators like the ones listed below will help to maximize its overall effectiveness.

It is important to know how many people landed on a page that may have been designed to support a specific promotion, how many people exited the page quickly, where they came from, what keyword they searched to get there, how long they spent on a page?  You can also track results by seeing if they converted.

Your home page is often the top landing page and it typically can have the highest bounce rate if visitors don’t find what they’re looking for right away or if the messaging doesn’t match what they searched for in the first place. Test a few different designs and messages to find which ones offer the lowest bounce rate and drive the most conversions overall.

Secondary pages or internal landing pages are often the most valuable parts of your site. These pages often contain the specific information your customers are looking for. Designed properly, internal pages answer your customers’ questions and drive them to convert.

Break down the top landing pages and evaluate what makes them successful.  Analytics can tell you what keywords your site visitors used to get there to help you refine your content. Define the type of content on that page and the calls to action (CTAs) you are using.  See if this can this be replicated on other pages. This type of analysis gives you key information on how customers interact with your site and how you can provide them with a great experience by having the right design and content.

Many of our retail customers are finding the effective use of videos to support product descriptions.  A short video can not only showcase a product and drive sales, they can also cut down on the common ‘how to’ customer support calls.

Consider the following in analyzing your site:

  • What are the top landing pages?
  • Which pages have the highest bounce rate?
  • What pages do people spend the most time on?
  • Which pages lead to the most conversions?
  • Which campaigns led to the best sales performance?

Effective website analytics can help you to find out which of your marketing strategies and tactics are bringing the most customers to your site – whether it is a newsletter, social media posts, email promotions, club memberships or other marketing programs you are using.  The more informed you are relative to customer interactions with your site, the more effective (and more efficient) your marketing efforts will be.

Online marketing methods need to be supported by web analytics so that you know what is working, where your shoppers are coming from and what you can do to attract customers. If you don’t already have good analytics in place, make this the year that you add this function so that you can run your site more efficiently.

If you haven’t heard about omnichannel retailing, it’s the latest buzz around giving customers a 360 degree experience with your business.  If you’re interesting in learning more about omnichannel retailing and the latest trends in people finding you and experiencing your brand, check out this On Demand Webinar: Demystifying Omnichannel Retailing: Finding Value in a Multichannel Sales Landscape.

 

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Posted in Customer Satisfaction, Ecommerce, Freestyle Commerce, Industry News, Multichannel Order Manager, Omnichannel, Search Marketing, Webinar | No Comments »