Our industry is ever-changing. Get insights and perspective from our experts as we share our knowledge and experience on how to successfully navigate the marketing landscape.
As consumers continue to buy online, retailers are under more and more pressure to refine their sites to convert to sales. However, the average conversion rate for most e-comm sites is still hovering around the 3-4% mark globally. While there are a myriad of reasons of why someone would leave your site before buying, one of the main causes is usually attributed to not delivering the product information they were seeking. This can be solved through optimizing your product pages with more in-depth information, such as images, videos, and consumer reviews. Given that updating an e-comm site to add this content usually requires integration between the UX, creative, development and marketing departments, it can take a while to get changes made. Enter Flixmedia, a UK-based company who is the leader in product page optimization*. Flixmedia has made it easy for retailers to quickly add in enhanced product information to their site pages. Using existing assets, they are able to seamlessly incorporate product imagery and videos into the product page. They also use innovative technology in their dynamic hotspots, giving consumers an opportunity to interact with the product. Why are we so obsessed with Flixmedia? Because they produce results. Adding interactive hotspots has resulted in increasing conversion rates by 28%. Adding imagery and videos to product pages has grown Add to Cart rates by an average of 23%. Don’t spend all that time and money driving traffic to a site that doesn’t convert. Optimize your product pages to give consumers the information they are looking for and leave that 3-4% in the dust. *Full disclosure: Flixmedia is owned by our same parent company, Advantage Solutions
The number of marketing technology tools is rising at a staggering rate, having nearly doubled YOY in 2016. On average, 51% of organizations use 21 or more digital marketing solutions. While having the ability to access all this new information provides unprecedented insight, it frequently results in an overload of data siloed in disparate systems. Marketers are buried under a landslide of fragmented campaign metrics, products, customers, purchases, and more. And there’s seemingly no end in sight; Gartner reports that 50-65% of marketing executives plan to spend more on marketing technology in the coming year. To make meaningful use of all this data, metrics need to be reviewed cohesively. Without a full holistic view, it’s impossible to get a complete understanding of the real story. Only analyze existing customer behavior and you may miss out on opportunities to attract new audiences. Only review site traffic from media placements, and you lack an understanding of why your customers are loyal to your brand, or how to create more of them. The problem is that most marketing teams don’t operate with systems that talk to each other. They end up trying to manually analyze disparate data points to uncover insights, a practice that is neither scalable nor responsive in real-time. This data fragmentation is costing marketers real dollars as they lose the ability to effectively optimize campaigns and fold learnings into future plans. An example of how some marketing departments utilize data today: The solution begins with creating a connected data ecosystem. The concept is simple—collect all data points into a centralized system able to analyze them en masse and surface actionable insights in real-time. Using those insights, marketers can then start to roll out personalized content, translate strategies across all channels, and efficiently improve customers’ experiences. While the initial creation of the connected data ecosystem can be time-consuming, it pays off. One example: Annuitas Group reports that businesses that use marketing automation to nurture prospects report a 451% increase in qualified leads. Based on our experience with building ecosystems for clients, we have created a four-step process that we follow: Discovery: we assess all the various systems that are collecting data around your organization. We also identify areas where the data returned may be less than perfect in quality–a very common occurrence. During this period we also outline the shared objectives and definitions of success across all the stakeholders. Solution design: using our learnings from the Discovery period, we design a customized solution that aligns to your business objectives. We build a roadmap using multiple analytic approaches across our four service categories: Performance analytics, marketing sciences, research, and business intelligence. Analyze: This is where the magic happens. Now that we’ve designed your ideal system, we begin to collect the data and review the outputs using our team of data analysts, statisticians, and social scientists to uncover those insights that will truly give your business the competitive edge. Insights: This is when our team works with marketers and other members of your organization to communicate our findings and share recommended actions to meet your KPIs. Once the initial foundation is built, this process can be repeated multiple times over the course of the year, ensuring your teams are always up to date on the latest findings and fully able to use fresh data to inform future plans. The creation of a connected data ecosystem takes some effort but pays off almost immediately by making teams run more efficiently with a full understanding of the current state of their business and what levers they have to achieve their goals.
In a recent article with Glossy, FarFetch CMO John Veichmanis discussed the challenges and opportunities in marketing luxury brands to affluent audiences. They have invested a tremendous amount in data scientists and technology to get their message in front of the right people. Unfortunately, many brands aren't as lucky as FarFetch to have access to those resources, but still want to target affluent audiences. Reaching higher income earners requires more planning and a more creative approach than when targeting other audiences. Not only do the habits of the ultra-high-net-worth (UHNW) differ a bit from the rest of ours, but there is tremendous competition for their attention. Reaching the UHNW requires a little ingenuity, a robust audience profile, and some great tools to get in front of them with messages that convert. One of our luxury beauty brands reached out to us to help with targeting audiences who hadn’t yet tried their product. Although they enjoy tremendous name recognition, the whole culture in the beauty industry is centered around “try before you buy.” To attract the attention of potential customers, we wanted to break out of the typical media buy targeted at women who were between the ages of 30-55 in UHNW households. To ensure that we were targeting the exact audiences that actually would be interested in purchasing their product, we took a more innovative approach to their media strategy. First, we reviewed the client’s data on customers who had purchased previously and their audience personas, comprised of profiles ranging from the married middle age woman to young college students who are supported by their parents. We were able to pair that data with Google Analytics and other profiling tools to start to create a database of attributes of what our ideal audience would look like. To give our media the most impact, we also geo-fenced high-end retailers and paired the anonymous mobile IDs with the persona attributes to start building a list of those who would be the most interested in learning more about the client’s products. Using personalized messaging that aligned to our personas, we were able to tailor the ad messages to align to their interests and needs. In addition to our programmatic media buy, we also included branded and non-branded search keywords that matched how our personas were looking for solutions to their beauty needs, not just specific products. The results have produced increased online sales for the client. Through our innovative approach, the client was able to maximize the efficiency of their media buy, targeting their ads only to people who would have the most interest in hearing from them.
I recently read a stat from CMO.com that said 56% of consumers feel more loyal to brands who “get me” and show a deep understanding of their priorities and preferences. It reminded me of a conversation I had at an event with a woman who walked up to me and said, “Can I ask you a private question? Just what in the heck is a DMP?” Those two things highlight the disparity between the need for data-driven, personalized marketing and just how tough it is to figure out how to do it. The woman at the event who asked me that question is not alone – I get asked some form of it all the time and from really experienced, savvy marketers. They know that they need to care about data’s impact in their campaigns and they usually have some great ideas for how to personalize content so it’s meaningful for their customers. However, they are absolutely lost when it comes to understanding how to capture, analyze, and actually use the data. A data management platform (or, DMP) is extremely helpful for that, but it can feel overwhelming to figure out how to build and maintain one. With the number of MarTech tools growing exponentially every year, most marketers don’t even know where to start. Add to that the significant investment in money and time as well as a potentially foggy ROI and it can be easy to slip into analysis paralysis. Since I get asked so frequently, I thought it would be helpful to start with the basics on what the heck a DMP is and what kind of campaign results can be garnered using one. To start, a DMP is basically just a big database that stores a bunch of different data points on your current and potential customers. It can be populated using 1st, 2nd, and 3rd party data which is then combined to identify patterns in the way your target audiences shop, spend their free time, consume media, and move about the world. Using a DMP, marketers have the ability to get deep insights into their customers, such as what other retailers they visit and how frequently they are viewing their website versus going into stores. When paired with media trafficking systems, like a demand-side platform (DSP), a DMP is able to use those insights to inform personalized media campaigns and deliver messages to consumers at just the right time and on the right device. They are pretty amazing things. Of course, that amazingness can come at a hefty cost. There are plenty of vendors out there who will set up your own DMP using their infrastructure and your data; the average estimated cost to get started is around $250,000, not a small investment by any means. Maintaining and optimizing the data over time is an additional cost. Some companies do invest in building their own DMP, but with the necessary staff, servers, and security precautions, you can quickly surpass the cost to outsource. Before you feel you have been priced out of the game, I have good news. There are several companies, of which AMP Agency is one, who have gone through the hassle of setting up and populating their own DMP, allowing clients to use them for their campaigns for a fraction of the cost. AMP’s DMP is called Advantage Media MomentAware,™ and has been created by partnering with some of the largest data providers. Also through our partnerships with the largest retailers and consumer packaged goods (CPG) companies in the world and our own 2nd party (proprietary data), we are giving our clients access to informed insights . We made this investment and continue to build on this proprietary data investment because we recognized that our media products wouldn’t be cutting edge without it; in fact, the market is evolving so quickly that pretty soon media products that don’t leverage insights from a DMP will be deemed obsolete. So, I’ve told you what DMPs are and how to get access to them, but how does using one impact results? Positively, of course. Here are a few examples of ways that a DMP could be used to build and optimize campaigns: Audience identification – one of our clients in the pet insurance space had low brand awareness and came to us to help with targeting prospective customers. They had small budgets and large conversion goals, usually a deadly combo when needing to get results quickly. We built our target audience by identifying the physical locations of dog parks, veterinarians, and pet stores across the nation; using anonymized data, we were able to identify patterns in frequent visitors to all three locations. We then built out a profile on their media consumption and determined the time of day to best deliver messaging for maximum conversion. The campaign improved their click through rate by nearly 250%, reduced cost by 83%, and increased lead efficiency by 19% Target specific stores – with MomentAware, you are able to use location-based targeting to deliver media to specific store locations. Have a store that has an abundance of inventory of one item? Run a campaign in the local area to drive in-store traffic. This also can be used to exclude locations that don’t have the item in-stock, particularly during promotions. Save your valuable media dollars to only spend where shoppers can take direct action v. running a blanket campaign. Connect online actions to in-store visitors – In a recent Salesforce consumer study, 52% of Millennial shoppers said they strongly/somewhat agree that it would help them if a physical store knew about the online research they had done prior to getting to the location (e.g. wishlists, abandoned cart, etc) so they could receive better service. Using MomentAware makes that possible – it associates mobile device IDs and cookies (computer) to understand site activity and when that device is in store. Imagine that the shopper gets a relevant ad or offer with a store locator when they are browsing prior to going to the brick and mortar location. Better, more relevant experience, both online and offline. With MomentAware, it’s easy. These examples are just the tip of the iceberg when it comes to using data in creative ways to deliver personalized experiences. Using a DMP is integral to activating on data quickly and easily. Are you using a DMP? Let us know your experience in the comments.