DRTL 2090 EXAM 2 REVIEW
It's Good for Search Engines
Customers comprise their user-base, while the retailers provide a revenue stream. • Search engines can provide relevant results and offer a highly targeted, revenue-driving advertising channel
Advertisers on Facebook
Facebook Adds A Million Advertisers in 7 Months -P&G To Scale Back Targeted Facebook Ads
Characteristics of O.P.E.N. branding
in a web-made world, "open for business" doesn't mean what it once did. in fact, it now means "never closed." but in updating the sign that adorned storefronts for generations—to make it truly a sign of the times, it would have to read o.P.e.n....
Struggling Retailers
Abercrombie & Fitch American Apparel BCBG bebe Footlocker Gymboree J. Crew Macy's Payless
Quality Score
A value that takes into account click-through rate, relevance, landing page quality, etc.
Content
(News, chat rooms) • Use content to position your site as the category and channel expert • Integrate items for sale within your site content areas. "Context" • Make content web-friendly with easy-to-read layouts • Incorporate content in easy-to-find locations on the site • As a customer-service benefit, provide links to content areas throughout the site • Incorporate customer-centric tools such as "Ask the Expert" or "Personal Shopper" to aid in ultimate consumer satisfaction
TOP LEVEL DOMAIN
(TLD) A domain at the top level in the hierarchical domain name system of the Internet. .com = commerce, .org = organization, .edu = education.
SPAM
(also known as UCE) unsolicited commercial e-mail or bulk mail is electronic junk mail and can include solicitations, advertisements or email chain letters.
MySpace
- 2003 • Currently 50 million US users (Up from 25 million in 2012) • Acquired by NewsCorp in 2005 for $580 million • Passed 100 million users in 2006 • Was leading social networking site until Facebook surpassed them in online traffic in 2008 • Facebook was O.P.E.N. (apps) while MySpace was closed • Rapid decline since 2008. Tried to refocus on music, movies, celebrities and TV • In 2011, was sold to Justin Timberlake for $35 million • Re-launched June 2013 • February 12, 2016: Acquired by Time Inc. for undisclosed amount (seen as ad revenue source)
- 2004 - 1.6 Billion active monthly users - 1.1 Billion access Facebook daily - 81% are outside US and Canada, ½ of US population has an account - 300 million photos uploaded per day - Began as a student only website for university and high school students - Became the most used social network in January 2009, passing MySpace - Reaches over 1 trillion page views a month - 8 billion video clips are viewed per day - IPO was in early 2011 - Acquired Instagram, WhatsApp, and Oculus VR (operate separately) - Developed Facebook Messenger internally - Second largest ad platform after Google
YouTube
- 2005 - Acquired by Google in October 2006 for $1.6 billion. - 2007 YouTube apps for smartphones were added, including Apple products - 2008, began releasing full-length films and television shows for MGM, CBS and others - Dominant video provider in the US. - 70% of the content comes from outside the US. - Localized in 25 countries and in 43 languages - 3rd most visited website behind Google and Facebook - 300 hours of video uploaded per minute or 432 thousand hours per day. - 100 million visitors per week take a social action (link, share, comment) - $3.6 Billion in ad revenue in 2013 - +50%
- 2006 - A real-time news service with ability to influence world events -'Micro-blogging' site - Took off in 2007 at SXSW Festival in Austin - Usage peaked during 2010 FIFA World Cup - Currently 650 million registered users. 320 monthly actives. - Nearly 60 million "tweets" posted each day - Between 6-9 thousands "tweets" per second - 140 character limit, shorthand notation, and URL shorteners make Twitter ideal for mobile phones - Nearly 45% of users Tweet via their mobile devices
- 2010 - An online photo-sharing, video-sharing and social networking service - Integrates with other Social Platforms such as Facebook and Twitter - Currently 400 million monthly users, surpassing Twitter - 1.6 billion photos shared, 55 million per day. - Acquired by Facebook in April 2012 for one billion dollars (13 employees). - January 2013: Updated Terms of Service, granting itself right to sell user photos to third parties without notification or compensation... retracted after public criticism - Began selling advertising in 2015 including video ads - Approx. $600 million ad revenue in 2015 and estimated $1.5 billion in 2016 (eMarketer)
- 2010 - Virtual bulletin board to pin content to your personal pages - Websites can add a "Pin It" button to their content - Etsy, the marketplace for handcrafted goods, is one of the most popular retailers on Pinterest. 1 of 5 purchases made are on Etsy - Currently nearly 80 million global users, 60% US - Over 80% female - 27% of female internet users have visited Pinterest - Drives 20% of social referrals to commerce sites. More than Twitter, YouTube. Google Plus - Average order value (over $160) of buyers nearly doubles Facebook referral traffic - 62% of purchases are for apparel and accessories - Home Furnishings is the most browsed category (45%
Snapchat
- 2011 - Launched as video and photo messaging service with time limit for viewing/ deletion - Over 700 million videos and photos shared per day. - Very young user base, primarily teens to 20's -January 2015 began paid advertising "Discover" feature.
First Wave (1995-2002)
- Amazon.com -Emergence of eCommerce - Product Catalogs - Alternative Revenue Models -Content and Community - Bubble Burst / Shakeout/ Resurgence - Cross-Channel (Connecting the Channels)
Fastest Growing Retail Product Categories Greatest Share of Mobile Spending
- Consumers are much more likely to make a purchase on a phone or tablet in categories with relatively inexpensive or lower consideration products -Much of mobile behavior is passive -Browsing requires limited attention -Curiosity -Boredom - Movie ticket - inexpensive, low risk - 36% of mobile spending -Computer - expensive, customization, product specs - 8% of mobile spending
Continuity - Benefits
- Convenience - automatically arrives -Customer selects delivery repetition criteria -eMail reminders of pending deliveries -Regular recurring income from repeat customers -Customer retention for retailer
CRM - Customer Benefits
- Improved satisfaction with retailer which likely translates into repeat purchases and positive word-of-mouth -Personalized offers or merchandise selections -Reduction of customer service frustrations or even costs due to ability to serve through self-service such as online order delivery status
Continuity • How old is the concept?
-1926 - Book of the month club -1955 - Columbia House Mail-Order Music
Benefits of CRM--Customer Relationship Management
-Business practices, strategies and technologies companies use to manage and analyze customer interactions and data through the customer lifecycle, with the goal of improving business by retaining customers and driving sales growth. - Current and potential new customer data is analyzed including history with the company or other transactions - Data sources include the company website, telephone, email, live chat, social media and marketing responses
Loyalty tenders ( loyalty tracking)
-Loyalty Card -Rewards Card commonly cash back where a percentage spent is paid back to cardholder in some form -Points Card points are accumulated based on a calculation of dollars spent number of specified qualifying transactions -Club Card often associated with hospitality such as hotels or restaurants, implying exclusive access -Loyalty App
2016 World's Largest Internet Companies - Year Launched
1. Amazon 1994 2. Alphabet (Google) 1998 3. JD.com 1998 4. Facebook 2004 5. Tencent 1998 6. Alibaba. 1999 7. Priceline Group 1997 8. Baidu 2000 9. eBay 1995 10. Netflix 1997
Review the multi-channel laggards: 2016 Top US Companies on World's Largest Retailers List
1. Wal-Mart 2. Costco 3. The Kroger Company 9. Home Depot 10. Walgreens Boots 11. Target 12. Amazon 14. CVS Caremark 18. Lowe's 25. Best Buy 30. Safeway 31. Sears Holdings 32. Publix 33. TJX 35. Macy's 38. Rite Aid 46. H.E. Butt Grocery 48. Apple Retail
2003: devoted to business connections • Over 400 million users world-wide, 50% US, over 200 countries • IPO in January 2011 • Used primarily for job searches, employee searches and business opportunities • 71% of college grads in US have secured work through LinkedIn • Launched a mobile version 2008 • Current limited profit potential due to its focus
The questionable value of Facebook fans
70% of fans do not want ads from businesses the "Like" - There are categories of Facebook fans; • Brand enthusiasts: product evangelists, love your brand • Love everyone: like your brand, but like every other brand as well (need to differentiate) • Average user: they like your brand, but don't give it much thought (majority of your sales) much thought (majority of your sales) • Sweepstakes fan: likes because of giveaways or coupons (doesn't really care about the brand) • The Issues fan: they like you due to a cause - Analytics don't support importance of Fan count • No correlation between fans and purchases - 2014 Gallop poll • 62% of consumers report social media had no influence on buying decision • 30% some influence • Consumers tune-out brand related content on social media pages • Social media should be used to engage rather than sell consumers
PERMISSION MARKETING
A marketing strategy implemented to sell goods and services to potential customers who have specifically agreed in advance to receive the marketing messages.
Meta Description Tags
A page's description meta tag gives Google and other search engines a summary of what the page is about Best Practices: - Accurately Summarize the Page's Content - Unique Descriptions for all pages on your site - Use highly searched keywords - Brands, Categories, Free Shipping
SOCIAL COMMERCE
A subset of electronic commerce that involves social media, online media that supports social interaction, and user contributions to assist online buying and selling of products and services.
AFFILIATE MARKETING
A type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing methods Consumer click thru and companies pay for ads in blogs, Ex. Blog
SHARING ECONOMY
An economic model in which individuals are able to borrow or rent assets owned by someone else. Uber, Airbnb
Third Wave (2009 - 2017)
Digital Platforms Connect Consumers in All Channels -Multi-Channel: Consumer expectation of seamless experiences across all touch points -Never-ending flow of disruptive retail business models "Extreme Retail" - This is technology fueled -International Commerce
email marketing
Directly marketing a commercial message to a group of people using email. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust or brand awareness.
The Third Wave: Extreme Retailing 2009 - 2017
Disruptive Models - are having an impact: - Online Fashion Subscription: Shoedazzle, Birchbox - Mass Custom Made: Indochino - Replenishment: Dollar Shave Club - Affordable Style: Warby Parker - Shared Economy Fashion: Rent the Runway, Bag Borrow or Steal - Personal Styling: Stitch Fix, Trunk Club - Content + Community + Commerce: Houzz
Search Engine PPC
For PPC in search engines, advertisers bid on keyword phrases relevant to their target market.
Friendster - The second Wave of Online Communities 2002-2009
Friendster- 2002 The first social network • Peaked in the US in 2008, 40th most visited website • Rapid decline since 2009 due to Facebook • Remained active in Asia & in the Middle East • In US, it was converted into a social gaming site in May, 2011 • Discontinued in June 2015
PPC (Pay Per Click)
Internet advertising model used to direct traffic to websites, in which advertisers pay the publisher when the ad is clicked.
p...is fOr is fOr pErsOnaL.
Just as it was before the web proved itself a serious channel for brand-building and sales, the online landscape remains the province of the people, not companies. People online leave behind traces of their unique personalities, preferences and behaviors, both through passive clicking and surfing, and active partici- pation and sharing. these vast realms of identifiable, unique individuals negate the old idea of target markets broadly bucketed by age, gender, income or education level. that's why, to be open, a brand must get personal— not with one market of many but with many markets of one—building relationships through constant consumer dialogue and effective cross-channel profile management that bring the brand closer to each consumer's real-time needs, wants and expectations.
product email campaigns
Major Considerations: • What is the main message? • What is the product feature? • Is there an offer? • Where will the customer land? • What is the shopping experience? • Is there an expiration on the offer? • What other channels is the offer supported in?
Understand content & community
Mantra of the mid to late 1990's
social commerce
Noun: A subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services.
social media commerce
Noun: Web sites and other online means of communication that are used by large groups of people to share information and to develop social and professional contacts: Many businesses are utilizing social media to generate sales.
Display Advertising PPC
PPC "display" advertisements, also known as "banner" ads, are shown on web sites with related content. These sites commonly charge a fixed price per click rather than using a bidding system
Extreme Retailing - Characteristics
Primarily driven by changing customer behavior (the mobile/social consumer) - The Connected Consumer = The Agile Consumer • The secondary drivers: - New business models - Technology • Investments (what are the VC's investing in?) - Horizon 3-5 years
A) Know the parts and layout of a SERP
Search Engine Results Page -search query box -results information; contains some meta, quantities can be wildly accurate -sponsored shopping results -PPC purchased text ads -horizontal navigation -organic, natural, from primary web indexes, ranked by relevance
SEO
Search Engine Optimization - the process of affecting web visibility of a website or a web page in a search engine's 'natural or non-paid(organic) search
Loyalty programs
Structured marketing plan and strategy designed for retailers to encourage customers to continue to shop or use the services of the business -Incentivizes customers by awarding free merchandise, rewards, coupons, special sales and advance opportunities on products or experiences -Customer allows personal information and activity data to be maintained by the retailer - Generally a less expensive marketing vehicle than new customer acquisition
Second Wave (2002 - 2009)
The Social Web - O.P.E.N. -Broadband Access -Mobility - Personalization / CRM - Multi-Channel - Cross-Channel (Optimizing each channel)
CPC (Cost-Per-Click) Bid
The highest amount an advertiser is willing to spend on their ad
Google AdWords
The most popular PPC platform. • Operates on a pay-per-click model, users bid on keywords and pay for each click on their advertisements. • Every time a search is done, Google digs into the pool of bidding advertisers and chooses a set of winners to appear in the ad space on its search results page. • The "winners" are chosen based the quality and relevance of their keywords and ad text or words the bid advertiser is willing to spend
OPT-IN EMAIL
The practice of sending email messages to people who request information on a particular topic or about a specific product. Laws state the opt-out practice should be one click and clear to the customer.
ACQUISITION COST
Total amount of money a site spends, on average, to draw one visitor to the site. Advertising costs typically weigh heavily in this calculation. All the costs associated with convincing a customer to buy your product.
n...is fOr nETWOrKEd.
a single consumer has exponential brand potential when she goes online. she has a lifetime value, as she always has, but she also has viral value as she engages with her various online communities, as both the message and the medium. open brands become part of social networks by marketing to the niche of communal consumers who interact with other like-minded consumers online. though niche marketing is hardly new, the network effect of online word-of-mouth marketing is. so the more the brand works the network, the more the network works for the brand.
E...is fOr Engaging.
brands once competed for consumers' mindshare by pushing out mass market messaging they thought would appeal to their audience. now, that audience has taken the stage, and brands must share the spotlight with creative consumers whose long tail of personal narrative, niche expertise, and mixed media productions can make a standard tV spot look static and self-absorbed. marketers must develop content that is immersive, participatory and relevant in order to earn a place in the social web and consumer conversations. interactivity is key to deepening consumers' emotional connection with a brand, so open brands must provide meaningful and engrossing experiences that foster consumer relationships online—and off.
Continuity
company sales program where customer agrees to receive merchandise or services automatically at regular intervals (often monthly) without advance notice, until cancelled • Amazon calls it 'Recurring Delivery'
title page
tells both users and search engines what the topic of a particular page is.
type of automated emails
welcome emails confirmation emails cart abandonment emails recommendation emails
O...is fOr On-dEMand.
whatever today's consumers are seeking, they want it—and often get it—"right now." in a world where instant gratification is a way of life, on-demand is consumerism taken to its logical extreme. overwhelmed by choice online and off, time-starved consumers demand accessibility, immediacy and findability. of course, being an on-demand brand isn't easy: the logistics, infrastructure and resources needed are infinitely complex and costly, from just-in-time inventory systems to in-store pickup services to rapid information delivery to mobile commerce. but brands can no longer opt out of being on-demand if they want to capture the hearts and wallets of today's quicksilver consumers.
types of email marketing
• Coupons • Promotions • Brand Features • New Products • Sales • Special Offers • Brand Recognition • Category Features
It's Good for Customers
• Customers click on paid search ads more often than any other form of digital advertising. • Customers don't mind being advertised to, provided that the products and services advertised actually fit the searcher's needs. • Ads provide highly relevant searches to the customer.
-Community
• Features that promoted viral sharing among shoppers to make them feel a part of the site experience. • Individuals with common interest met online • Attempts were made to localize services - Hosting events - Refer A Friend - Testimonials - Bulletin Boards, Clubs, Chat • Generate revenue as a communication facilitator • Example: - QVC - the 'chat' is still popular today - iVillage- still exists today - GeoCities- acquired by Yahoo! In 1999 ($5B), closed 2009
Extreme Retailing - Next Investments
• Innovation no longer has to be defined by technology, but simply be enabled by it • VC's are looking for business models that: - Solve problems. This is a combination of: • Social shopping • Entertainment • Group dynamics - Seek to monetize social media masses: • Facebook and Twitter critical mass • Now Pinterest and Instagram • Etsy as a successful Pinterest example • WOM power users (eg. Trip Advisor)
It's Good for Retailers
• Retailers can put their message in front of an audience who is actively and specifically seeking out their product. • Retailers can measure the quality of traffic that results from search engine clicks.
Know the role of Venture Capitalists in extreme retailing
• VC's are looking for solutions that use Big Data for answers: - Big Data by itself not meaningful. Must be actionable - Example - Monetate: personalization, email optimization, testing - enables real time usage of big data for websites, email, advertising • VC's also looking at: - mobile applications for in-store (defend against Amazon) - Merchandising tools using technology (example Certona) - Curation and Discovery (example BirchBox)