The future for marketers: shopper and digital marketing converge
Frankly, I’m tired of talking and reading about social media marketing and its ROI, or lack thereof. After spending a year and a half in the IMC graduate program at Medill and working with various clients on sponsored projects, I think the key to becoming a successful marketer lies in understanding digital marketing and shopper marketing and how to successfully merge these two strategies in a world that lives online. But companies are still struggling with how to balance online and offline sales and deliver consistent experiences to consumers through multi-channel strategies.
So let’s talk shopper marketing and digital marketing for a bit.
Target: Target recently took its online business in-house. Prior to the site’s relaunch, Target.com had been powered for 10 years by Amazon, and in 2010, Target reported 10 percent growth online and 2 percent growth offline. Part of its strategy to take control of its e-commerce platform is to focus on differentiation and delivering a better guest experience for its customers online.
What’s interesting about this? As more people purchase online and reduce trips to the store, there’s more pressure on CPG companies and retailers to provide a flawless online experience and figure out how to upsell customers. I can’t even tell you how many times I have walked into a Target store looking for a few specific items but walked out with a basket full of unplanned purchases. Target, along with stores like Whole Foods and IKEA, do an outstanding job of providing a unique experience for shoppers in the store. Now, the challenge will be to replicate that experience online.
Walgreens: In August Chicago was the first market to be offered Walgreens’ WebPickUp service. This online ordering program gives consumers the option to purchase items through its website and then pick them up in-store. Walgreens reported that in the last two years its online traffic has increased by 50 percent.
A few weeks ago I decided to give it a try after I was sent a direct mail piece with a coupon for $20 off my order online, but I can’t say it was a great experience. It took me longer to find the products I needed online than it would have taken me in the store. It will be interesting to see how consumers respond and if this service is something people will value.
Amazon: Amazon is to e-commerce as Google is to search as P&G is to shopper marketing. Amazon leads the pack in e-commerce with a 47 percent e-tailer household penetration. It’s proof that consumers are willing to forgo the shopping trip for convenience and the often lower prices that can be found online. In 2010 Amazon had 40 percent growth online with sales at $4.1 billion, and it continues to expand its offerings by acquiring e-commerce sites, including Diapers.com, Soap.com, BeautyBar.com, Wag.com, and YoYo.com.
Best Buy: Recently Best Buy announced plans to decrease the footprint of its stores and focus more on its online business. In a way, it really doesn’t have a choice. Consumers have shown that while they might prefer to walk into a Best Buy store and interact with its products, they’re also walking out the door and then getting online to actually make their purchases. This practice, also known as “freeriding,” puts retailers like Best Buy in a sticky situation since consumers are researching and buying electronics online more so than any other category to date.
My prediction: The convergence of shopper and digital marketing will play a major role in the development of effective marketing campaigns to consumers. Marketers will be challenged to create a consistent online and offline experience for their brands while social media marketing will play a more tactical role and be part of a larger overall strategy to connect with consumers online.
Do you agree? Disagree? Let us know in the comments!
Category: Consumer Insights, Interactive Marketing, Social Media
Interesting post, Katie! Brands certainly have their work cut out for them in creating consistent experiences both on and offline. I liked your example about how when you go to Target, you rarely walk out with only what you need. The way sites are set up now, I find it easier to stick to my list in an online setting, since I’m confined to product categories or search functionality and I don’t have the ability to wander through aisles. If brands like Target can capture the action of exploration or perusing online, then I’d predict they would see customers like me increase my items per sale by more than I’d like to admit!
Great post, Katie! It will definitely be interesting to see how various retailers merge digital and in store shopping.