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Marketing Acquisition You have the products, you have the store, now you just need the customers. Setting up shop is half the battle – generating traffic and converting window shoppers to buyers comes next. In the past, foot traffic and word-of-mouth were essential to retail success. That still holds true. But today, foot traffic often comes in the form of online search, and word-of-mouth comes in the form of social media.

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Page 1: Marketing Acquisition Ð - FitForCommerce · Marketing Acquisition Ð You have the products, you have the store, now you just need the customers. Setting up shop is half the battle

Marketing Acquisition–

You have the products, you have the store, now you just need the customers. Setting up shop is half the battle – generating traffic and converting window shoppers to buyers comes next. In the past, foot traffic and word-of-mouth were essential to retail success. That still holds true. But today, foot traffic often comes in the form of online search, and word-of-mouth comes in the form of social media.

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Marketing Acquisition | 46 © 2019

BURNING QUESTIONS

• How do I drive more qualified traffic to my site?

• What tools should I use for acquiring more customers?

• What data should I capture to support my marketing initiatives?

In today’s retail world, shoppers move interchangeably between channels and it is therefore imperative that marketing strategies are executed, and integrated, across both digital and offline touchpoints. Based on the goals of the organization there are numerous moving parts – for many, it can be daunting to determine the right approach, prioritize efforts, and select the right tools to support the acquisition strategy.

TOOLS AND TRICKS OF THE TRADE

Optimizing strategies for acquiring and retaining customers should always be top of mind. There is no business without customers, and acquisition needs to be a focal point of any marketing strategy.

Customer acquisition tactics – also known as paid digital marketing channels – includes Paid Search (SEM), Display Media Advertising (web and mobile), Affiliate Marketing, Comparison Shopping Engines (CSE), Marketplaces and paid advertising on social media channels. While Search Engine Optimization (SEO) is also considered a customer acquisition channel, it is not a ‘paid channel’. Each of these tactics require a unique set of skills to master and tools to help support the efforts to optimize results. Some organizations may have the internal capacity to manage everything in-house. But each

OUR TAKE: Give them what they want

The goal of a successful marketing acquisition strategy is to anticipate customer needs – where and when

they search – to make sure they find you and the products you sell, and at the same time, to deliver relevant

and, whenever possible, personalized experiences that encourage coveted click-throughs.

MARKETING ACQUISITION CHANNELS, TOOLS AND SERVICES

1. Search Engine Marketing

2. SEO

3. Display Media (Prospecting and /Retargeting)

4. Social Media Advertising

5. Affiliate Marketing

6. Comparison Shopping Engines (CSEs)

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Marketing Acquisition | 47 © 2019

of these channels requires thorough knowledge and ongoing optimization; and most organizations can benefit from tapping into a range of services offered by specialized digital marketing agencies to help build campaigns and audience segments and optimize results. Furthermore, these agencies can optimize campaigns based on results seen across their client base.

Search Engine Optimization (SEO)

Many consumers start the shopping process on a search engine (most often Google) – to research product options, get information about brands, find reviews, or to locate a store – and SEO is, therefore, often considered one of the most important components of the marketing acquisition strategy. For any business, SEO is an effective and inexpensive way to get in front of potential new customers and a strong SEO program is crucially important.

Ecommerce sites are designed to be transactional and have historically not been very SEO-friendly, lacking the content required to achieve good search rankings and challenged by factors such as rapidly changing product detail pages and similar product keywords and page titles as competitors.29 Fortunately, today, many digital commerce platforms are developed with SEO in mind and include a technical architecture that enables search engines to pull website content, merchandise and page information.

OUR TAKE: Quality matters

While shopper traffic is great, it doesn’t matter much unless it is centered on finding the right people at the

right time in their shopping journey (those who will actually buy your products). It is critical to know your

prospective customers and target your acquisition strategies to that audience based on the goals of the

organization as well as expected ROAS.

DID YOU KNOW?

SEO topped marketing budget allocation for

marketers in 201827 and 93 percent believe SEO it

is extremely or very important for sales that their

company website ranks high in search results.28

Topmost Challenges for SEO ProfessionalsSource: SEO Strategies, Techniques & Trends: 2019 Survey

Providing ROI

Single Page Ranking for Multiple Keywords

Frequent SERP Changes

Google Penalty Recovery

0 20 40 60 80 100

83.3%

66.7%

33.3%

16.7%

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Marketing Acquisition | 48 © 2019

Relying on the digital commerce platform exclusively to optimize search results is not enough. Managing SEO requires a highly specialized skillset, and many marketers agree that it can be challenging to do internally. They report that their SEO strategies are missing key tactics such as automation of daily changes, creation of new and unique content, incorporation of big data and the use of artificial intelligence. Furthermore, many struggle with proving the ROI of SEO. For most organizations, it can pay off to partner with a marketing agency that specializes in SEO to ensure the best rankings and exposure possible.

Content and Context Matter

The face of SEO is changing rapidly, mainly due to the incorporation of artificial intelligence (AI) into search algorithms. Google’s search engine previously located and ranked sites based on keywords and inbound link counts. It now also weighs expertise, authority, and trustworthiness of content as well as website performs as Google negatively impacts a retailer’s SEO indexing if the mobile or desktop experience is slow.31 Instead of focusing on keywords, search engine algorithms such as Google’s RankBrain algorithm attempt to “understand” content. Most organizations have realized the power of good content in commerce, product and lifestyle/editorial content, as a key differentiator and are also leveraging content as a way to improve SEO.

SEEN IN THE FIELD

Home Depot deploys a strong search

engine marketing strategy combining both

SEO and paid search tactics. The above

refrigerator example shows Home Depot as

number one in organic search and an SEM

(paid search) PLA campaign.

DID YOU KNOW?

51 percent of U.S. and UK shoppers began

the journey to their latest purchase with an

online search.30

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Marketing Acquisition | 49 © 2019

As Google, and other search engine, algorithms become more sophisticated, SEO strategies must become more sophisticated, too. It is almost impossible to stay up-to-date on SEO best practices without a dedicated SEO resource or the help of an external partner. Organizations should consider leveraging next-generation SEO tools powered by AI and machine learning to improve access to relevant data and to automate processes for optimizing search engine results.

Paid Search

When done right, paid search can be one of the strongest ways to drive new traffic. But it can also be extremely challenging. Organizations must constantly manage the bidding of brand and product terms to ensure competitive ranking, stay within budget, and manage the return on ad spend (ROAS). At the same time, it is critical to optimize the strategy for both desktop and mobile. Other factors, such as localization and relevant site links to optimized landing pages should be utilized to ensure the post-click experience is relevant to the user’s search criteria.

OUR TAKE: You need to think about Voice

To stay ahead, you must stay on top of new trends that impact SEO such as the increasing popularity of

voice search. According to Google, 55 percent of teens and 40 percent of adults use voice search daily.

Voice search requires a whole new keyword research approach: Voice searchers use normal, conversational

sentences instead of the traditional query lingo.33

DID YOU KNOW?

96 percent of marketers believe that their SEO

strategy could benefit from AI.32

OUR TAKE: You cannot do it all – at least, not alone

Paid search is constantly evolving. The deployment and management of a successful search engine

marketing strategy requires highly-skilled expertise and is extremely time consuming. In today’s competitive

marketplace, it is almost impossible to manage successfully in-house. Don’t be afraid to go outside for help

for bid management and account support services.

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Marketing Acquisition | 50 © 2019

Optimizing the Paid Search Strategy

A good paid search strategy involves selecting high-performing keywords that drive relevant traffic. The right keywords can make all the difference, determining how well advertisements rank on Google and other search engines.

Purchasing text keywords is not enough. It is just as important to optimize paid search strategies to make sure that the investment pays off well. This includes making sure that website landing pages are optimized and relevant to search terms, constantly managing bids, testing creative, customizing ads for mobile, etc. The daily management of the search program is a critical aspect of a successful search engine marketing strategy, as keyword and budget allocation will likely change from month to month and season to season.

Comparison Shopping and Product Listings

Like paid search advertising, comparison shopping engines (CSEs) and product listing ads (PLAs) use a pay-per-click model and include sites like Google Shopping, Amazon and Bing Ads. Products are grouped according to keyword searches, which means similar products from different sellers may be listed on the same page, allowing for users to visually compare products and prices. When a user clicks on a product, she is sent to the retailer’s product detail page (PDP) to complete the purchase.

Local Inventory Ads (LIA’s)

Local inventory ads are a key driver for delivering an omnichannel experience by letting local shoppers know that a retailer has the items they’re looking for in stock, the moment they search on Google.

Local inventory ads showcase a retailer’s products and store information to nearby shoppers searching on Google. When shoppers click on an LIA, they are taken to a Google-hosted website landing page called the local storefront. Shoppers use the local storefront to view in-store inventory, get store hours, find directions, and more.

SEEN IN THE FIELD

Bed Bath & Beyond displays in-store messaging

in their PLA campaigns to capture shoppers

when they are searching for specific products

to drive traffic to a local store.

DID YOU KNOW?

In Q1 2017, PLAs accounted for more than half of

retail search ad clicks and spending on Google

Shopping rose by 32 percent year over year in

Q1, compared to 12 percent for text ads.34

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Marketing Acquisition | 51 © 2019

Display Advertising/Retargeting

The main purpose of display advertising is to deliver general brand messages and product promotions to key audiences on third-party sites and social media. Visual in nature, display ads can take many different forms and contain items such as text, images, video, and audio. They present a great way to appeal to new customers and encourage them to visit a seller’s site.

There are two main ways to buy digital display advertising space and reach customers: Direct Buys and Programmatic Buys. Direct buys, similar to print advertising, allow a marketer to buy advertising space directly from a publisher or website, but can be extremely expensive and make the assumption that customers will be on a particular site at the time when ads are live. Programmatic advertising, used by most marketers, helps to automate the decision-making process by targeting specific audiences and demographics, regardless of what website they are visiting.

Programmatic advertising allows marketers to truly target and serve ads to those users who are most like their target audience. Therefore, it is not surprising that programmatic advertising is, by far, the most popular form of display advertising today. The advent of Real-Time Bidding (RTB) in recent years, enables publishers and advertisers to offer serve the right ads to the right audience in real time.

Retargeting, or remarketing, serve targeted ads to customers who have visited a website and viewed a specific item, but left the site without purchasing that item. This is the most common form of programmatic display advertising. Retargeting is generally less expensive than prospecting campaigns and the results are often better because the products featured have already been viewed by shoppers.

Behavioral targeting is another type of programmatic advertising that is gaining traction with retailers. Behavioral targeting leverages data about a user’s browsing behavior, including page visits and search. This data is then used to serve ads to users that fit the same behavioral and demographic attributes.

The display advertising technology space can be a bit confusing, with many different platforms and service providers fighting for retailers’ share of wallet. Here’s a quick overview of the different types of platforms:

DID YOU KNOW?

The total US digital ad spend is forecasted to

reach nearly $130 billion in 2019, of which $65

billion will be spent on display ads.35

OUR TAKE: Let’s get personal

Shoppers react best to personalized messages. Leverage data and retargeting to make sure your messaging

and promotions are relevant to the individual shopper.

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• Ad exchanges are online marketplaces that help publishers make their inventory programmatically available to buyers (typically, ad networks or demand-side platforms) or sellers.

• Ad networks aggregate unsold ads from publishers to sell to advertisers, including from ad exchanges. While advertisers used to have to buy impressions upfront, some ad networks now offer programmatic capabilities.

• Demand-side platforms (or DSPs) are central places for marketers to buy, serve, and track inventory across ad networks and ad exchanges. DSPs typically offer more customization options, and many DSPs can integrate first-party or third-party data to inform audience segments and bidding rules.

Organizations can benefit from partnering with a digital advertising expert to help ensure that they achieve their campaign goals and get the highest return on their advertising investment. Best-in-class digital agencies use sophisticated methodologies and data to best target the desired audience segment via the right media channels and vehicles.

Mobile Marketing

For many consumers, mobile has replaced the desktop as their go-to device. In 2015, mobile search surpassed desktop search for the first time in the US, making the smartphone the connected digital device of choice. Retailers should fully embrace a mobile first strategy as a core pillar for customer acquisition and retention, both online and in-store.

Mobile search trumps desktop search by over 50 percent, making it a powerful vehicle to drive site (and store) traffic. When it comes to mobile shopping, most statistics show that mobile-optimized sites have a higher direct conversion rate compared to consumer apps that are more effective in deepening engagement and loyalty. The most successful strategies take a multi-pronged approach to mobile, where

The Daunting Display Advertising Landscape

DID YOU KNOW?

Mobile ad spending will reach ~ 73 percent of

total digital ad spending in the US in 2023.36

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Marketing Acquisition | 53 © 2019

mobile search and the mobile site are primarily used for acquisition and the mobile app is an engagement and retention tool.

Paid search through desktop and mobile is remarkably similar. The only difference from a bidding perspective is that while campaigns for desktop and mobile are the same, there is a mobile modifier that allows retailers to bid up or down relative to desktop results. This generally holds true for display ads across desktop and mobile.

Mobile ads are on track to represent more than 73 percent of US total media ad spending in 2023. The retail industry has spent more than any other industry on mobile ads – a trend that is expected to continue.

Social Media

In 2023, it is expected that 76 percent of the population in the United States will be using social networks.37 Facebook alone has over 2.3 billion active users worldwide.38 That represents billions of users who share their lives via social networks every day, including their opinions about brands and products.

There’s no doubt, social media can be a valuable customer acquisition channel. But many retailers struggle with determining the social strategy that will give them the most bang for their buck. Some organizations use social media solely to push products and brand content to consumers, while others pull user-generated content, such as customer photos of products on social, onto their sites to create more engaging user experiences. The right social strategy depends on the business, the products sold, and more importantly, the target audience.

OUR TAKE: Mobile is not an exotic creature

Mobile is the most powerful of the critical elements behind the overall strategy for meeting shopper

expectations for more value, greater convenience, and a better customer experience across all channels.

Some retailers treat mobile as its own channel, but it should be viewed as a device and part of the overall

digital mix. Mobile is critically important, but not exotic.

$90.34$35.41

Digital Ad Spending, by DeviceUS, 2018-2022 · Source: eMarketer, March 2018

2018

2019

2020

2021

2022

$74.97

$105.25$36.99

$118.93$37.50

$131.41$39.07

$32.33

Mobile Desktop/Laptop

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Beyond advertising on social media networks, organizations should build a valuable and relevant presence on the social media sites their target customers use. Organizations can build value by using social media to deliver relevant content and product promotions and by using the channel to foster relationships through open dialog with shoppers.

Social media is the de facto “word-of-mouth” channel today, and perhaps one of the most powerful ways to acquire new customers. The act of customers or influencers sharing their brand/company experiences with their social media networks and followers can organically grow an organization’s audience. What shoppers’ share about a brand or product has tremendous value to organizations, by learning about customers, expanding reach, and using customer data – reviews, ratings and user photos and videos – to influence other shoppers.

Most retailers leverage different social media automation platforms to help manage their social media efforts, including marketing automation tools to push relevant content to different networks and social

SEEN IN THE FIELD

Fashion apparel brand Zara uses social

media to connect with loyal customers on its

branded pages as well as connect with new

customers through advertisements on social

networks. Zara customers are also highly

active and engaged on social media sharing

their outfits and tagging the retailer.

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Marketing Acquisition | 55 © 2019

media analytics to help inform what customers are talking about, how they share content, and to help optimize social media programs.

Affiliate Marketing

When carefully planned and managed, affiliate marketing is a cost-effective and efficient way to broaden reach and drive new customer acquisition.

Before launching an affiliate marketing strategy, it is important to assess internal team capabilities and bandwidth. Managing many affiliates and complexities of handling payments, pricing tiers, and reporting can be a lot of work, and may, in some instances, require a dedicated affiliate manager and/or a team to manage this business channel.

In most cases, it will make sense to leverage an affiliate network rather than attempting to build your own. The network helps to manage the relationships and information between affiliate publisher sites and retailers (a.k.a., advertisers). Retailers give the network access to product feeds and key company information, like promotional calendars, new product arrivals, and marketing offers. The publishers get paid a percentage of sales, when a customer clicks an item on their website from a retailer and then completes the purchase, most commonly on the retailer’s website.

The management of payments is a tremendous benefit of working with a network, rather than a retailer sending hundreds or thousands of checks from the retailer to the publisher. The retailer is responsible for paying both a commission on their items sold as well as a fee to the network for their services. Most commonly, the network fee is a percentage of sales. In addition, some retailers pay publishers a bounty, or cost per acquisition (CPA), to drive lead generation (e.g., pay a $1 bounty per email acquired).

HEARD IN THE FIELD

“Social is a huge source for customer acquisition. I think it is here to stay but there is still a lot of learning on how to leverage it best.” Julie Bornstein, COO, Stitch Fix

OUR TAKE: Do your homework

Research and plan your affiliate marketing strategy carefully. Talk to your customers and learn about their

online habits to determine what sites to add to your network. There are niche publishers out there who likely

have your current audience’s eyeballs already.

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Marketing Acquisition | 56 © 2019

OUR TAKE: The 80/20 rule almost always applies

Most affiliates may never send you a sale. Your top affiliates will grow with you and should be nurtured. Finding

new affiliates with potential and discovering which to cultivate and which to forget comes with experience.

SPOTLIGHT ON DATA

Build it and they will come… that never happens. Retailers must invest in marketing acquisition programs to build and grow their businesses. This starts with a deep understanding of audience segments including demographic and behavioral data as well as the performance and ROI of different acquisition tactics.

There are numerous benefits to leveraging and utilizing data throughout marketing acquisition programs. This includes personalized and data-driven campaigns. The practical application of data utilization includes retargeting campaigns, dynamic ads on social platforms such as Facebook and Instagram and dynamic search ads on Google.

However, there can be obstacles to wrangling the data sources and then utilizing the right data for executing personalized campaigns. Retailers need to have the right team or vendor partners in place and leverage centralized technology to store transactional data, online order data, website clickstream data, customer data and preferences, social signals and more.

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THIS REPORT IS BROUGHT TO YOU BY–

OUR MEDIA SPONSOR–

ChannelAdvisor has been on the front lines of e-commerce since 2001, helping retailers and brands connect with customers, optimize operations and grow sales channels. We’ve grown from a small company in a young industry to an industry leader at the forefront of a global revolution — with thousands of clients and billions of dollars in transactional revenue flowing through our platform every year. For more information, visit channeladvisor.com

Adweek is the leading source of news and insight serving the brand marketing ecosystem. First published in 1979, Adweek’s award-winning coverage reaches an engaged audience of more than 6 million professionals across platforms including print, digital, events, podcasts, newsletters, social media and mobile apps. As a touchstone of the advertising and marketing community, Adweek is an unparalleled resource for leaders across multiple industries who rely on its content to help them do their job better.

Adweek is part of the Beringer Capital portfolio that also includes BrandShop, a leading full-service partner that works with major consumer brands to employ digital commerce to increase sales, gain valuable consumer insight and create the type of end-to-end experiences that build loyalty and keep brands ahead of the competition. Learn more at adweek.com and brandshop.com

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FitForCommerce is a leading boutique consultancy that helps hundreds of online and multichannel brands and retailers make informed digital, ecommerce and omnichannel retail investment decisions. Leveraging years of experience, state-of-the-art tools, strategic diligence and tactical planning, FitForCommerce helps brands and retailers define strategies for growth, improve the customer experience, plan and hire the right organization, and find "best fit" technology solutions. | www.fitforcommerce.com

Foundation Merchandising Planning/Sourcing Content User Experience

MarketingAcquisition

MarketingRetention

SellingMarketplacesOrder Management

Analytics/ReportingFulfillmentCustomer ServiceIn-StorePayments

DOORSTEP

IDEA